Today, Venture Global LNG and CNOOC Gas & Power Group Co., Ltd., a wholly owned subsidiary of China National Offshore Oil Corporation (CNOOC), announced the execution of a 20-year Sales and Purchase Agreement (SPA). This marks the first LNG supply agreement signed by a US exporter with CNOOC, China’s largest importer of LNG. Under the deal, Venture Global will supply 2 million tonnes per annum (MTPA) of LNG on a free on board (FOB) basis from its Plaquemines LNG export facility, in Plaquemines Parish, Louisiana. In addition, CNOOC Gas & Power will purchase 1.5 million tonnes (MT) of LNG from Venture Global’s Calcasieu Pass LNG facility for a shorter duration.
“Venture Global is pleased to announce the expansion of our footprint in Asia through two new deals to supply the Chinese market with clean, low-cost US LNG,” said Mike Sabel, Chief Executive Officer of Venture Global LNG. “China is critical to global climate efforts, and LNG supplied by Venture Global will serve as an important addition to their low carbon energy mix for decades. This new long-term partnership with CNOOC builds on our company’s continued momentum in a very active 2021.”
“As China’s largest LNG importer, CNOOC is committed deeply not only to the mission of securing China’s gas supply, but also to the climate goals of building a carbon-neutral China by 2060,” said Shi Chenggang, Chairman of CNOOC Gas & Power. “We are pleased to announce our long-term LNG cooperation with Venture Global. By signing the SPAs with Venture Global, CNOOC will be able to further improve its ability to meet China’s increasing gas demand, whilst provide solid support for China’s energy transition pathway to build a more “beautiful China”.
Tuesday 21 December 2021
PETRONAS Awards FEED Contracts for Sabah's Nearshore LNG Project
PETRONAS has awarded two Front End Engineering Design (FEED) contracts to a JGC Corporation-Samsung Heavy Industries consortium and to SAIPEM Spa as part of an international dual FEED design competition for a nearshore liquefied natural gas (LNG) project in Sabah.
The project, with a minimum capacity of 2.0 million tonnes per annum (MTPA) is a first of its kind in Malaysia.
The FEED design competition is expected to take place over the course of 10 months with the Final Investment Decision (FID) planned for end of 2022.
Subject to FID, the winning FEED contractor will be rolled over to the Engineering, Procurement, Construction and Commissioning (EPCC) phase. The nearshore LNG plant is planned to be Ready for Start Up (RFSU) by end of 2026.
The design and construction of the nearshore plant is expected to be simpler and upon completion, has the potential for improved production uptime as it will be located within a protected bay area as compared to an offshore floating LNG facility in the open seas.
PETRONAS Executive Vice President and Chief Executive Officer of Gas and New Energy Adnan Zainal Abidin said, “PETRONAS continues to provide greater access to cleaner energy sources such as natural gas. The development of Sabah’s first nearshore LNG plant reflects our technological expertise where we continue to innovate modern solutions to monetise gas resources in an optimised and environmental-friendly manner.”
Upon completion, the nearshore LNG plant will increase PETRONAS’ LNG production from floating LNG facilities from 2.7 MTPA to 4.7 MTPA. Currently, PETRONAS operates two floating LNG facilities, the PFLNG SATU and PFLNG DUA, at the Kebabangan and Rotan offshore gas fields respectively.
The project, with a minimum capacity of 2.0 million tonnes per annum (MTPA) is a first of its kind in Malaysia.
The FEED design competition is expected to take place over the course of 10 months with the Final Investment Decision (FID) planned for end of 2022.
Subject to FID, the winning FEED contractor will be rolled over to the Engineering, Procurement, Construction and Commissioning (EPCC) phase. The nearshore LNG plant is planned to be Ready for Start Up (RFSU) by end of 2026.
The design and construction of the nearshore plant is expected to be simpler and upon completion, has the potential for improved production uptime as it will be located within a protected bay area as compared to an offshore floating LNG facility in the open seas.
PETRONAS Executive Vice President and Chief Executive Officer of Gas and New Energy Adnan Zainal Abidin said, “PETRONAS continues to provide greater access to cleaner energy sources such as natural gas. The development of Sabah’s first nearshore LNG plant reflects our technological expertise where we continue to innovate modern solutions to monetise gas resources in an optimised and environmental-friendly manner.”
Upon completion, the nearshore LNG plant will increase PETRONAS’ LNG production from floating LNG facilities from 2.7 MTPA to 4.7 MTPA. Currently, PETRONAS operates two floating LNG facilities, the PFLNG SATU and PFLNG DUA, at the Kebabangan and Rotan offshore gas fields respectively.
Tank Roofs raised on all four 220,000 cubic meters storage tanks of the Longkou LNG project
On December 15, 2021, the national natural gas infrastructure interconnection and the key project of the Bohai Rim production, supply, storage and marketing system-the first phase of the first phase of the Longkou Nanshan LNG Receiving Station Project (hereinafter referred to as Longkou LNG) of the State Pipeline Network Group 22 The top of the 10,000 cubic meter storage tank was successfully raised. Since the topping of the 4 storage tanks of the Tianjin LNG receiving station on November 15th, the National Pipeline Network Group has successfully completed the topping of 8 220,000 cubic meters of LNG storage tanks within one month.
The Longkou LNG project is located in Longkou Port District, Yantai City, Shandong Province. The annual construction scale of the first phase of the project is 5 million tons of LNG. It is planned to be completed and put into operation in 2023. By then, Longkou LNG's single-day natural gas transmission capacity will reach 40 million cubic meters, which will be able to provide continuous and stable clean energy for Shandong Province and even the Bohai Rim region, effectively enhance the capacity of regional peak shaving, emergency storage and winter supply, which is important for promoting my country's energy Structural adjustment, promotion of regional economic development, and achieving carbon peak and carbon neutrality are of great significance.
The gas-lifting operation of the storage tank completed this time is one of the most difficult, most complex and risky procedures in the construction of large-scale LNG storage tanks. The principle is to deliver low-pressure air to the sealed space in the tank to overcome the tank roof structure. The self-weight and the friction with the tank wall are raised to the design height at a uniform speed, and are connected with the compression ring to form a complete dome structure.
The 220,000 cubic meter storage tank of Longkou LNG Phase I project has a single bearing platform with a diameter of 93.4 meters and a tank height of 60.4 meters. The space inside the tank can stack two Boeing 747 passenger planes; the dome structure weighs about 850 tons, which is more than domestic The weight of the dome of the same type of storage tank is reduced by about 300 tons, realizing the optimal design; the dome span is 88 meters, and the lifting height is 44.5 meters. The successful completion of the gas jacking operation of the storage tank marked the transition of the project construction from the civil construction stage to the installation stage, laying a solid foundation for the smooth commissioning of the project.
The Longkou LNG project is located in Longkou Port District, Yantai City, Shandong Province. The annual construction scale of the first phase of the project is 5 million tons of LNG. It is planned to be completed and put into operation in 2023. By then, Longkou LNG's single-day natural gas transmission capacity will reach 40 million cubic meters, which will be able to provide continuous and stable clean energy for Shandong Province and even the Bohai Rim region, effectively enhance the capacity of regional peak shaving, emergency storage and winter supply, which is important for promoting my country's energy Structural adjustment, promotion of regional economic development, and achieving carbon peak and carbon neutrality are of great significance.
The gas-lifting operation of the storage tank completed this time is one of the most difficult, most complex and risky procedures in the construction of large-scale LNG storage tanks. The principle is to deliver low-pressure air to the sealed space in the tank to overcome the tank roof structure. The self-weight and the friction with the tank wall are raised to the design height at a uniform speed, and are connected with the compression ring to form a complete dome structure.
The 220,000 cubic meter storage tank of Longkou LNG Phase I project has a single bearing platform with a diameter of 93.4 meters and a tank height of 60.4 meters. The space inside the tank can stack two Boeing 747 passenger planes; the dome structure weighs about 850 tons, which is more than domestic The weight of the dome of the same type of storage tank is reduced by about 300 tons, realizing the optimal design; the dome span is 88 meters, and the lifting height is 44.5 meters. The successful completion of the gas jacking operation of the storage tank marked the transition of the project construction from the civil construction stage to the installation stage, laying a solid foundation for the smooth commissioning of the project.
Monday 20 December 2021
Venture Global and Louisiana Governor John Bel Edwards Announce Proposed CP2 LNG Export Facility
Today, Venture Global LNG and Louisiana Governor John Bel Edwards announced the company will invest more than $10 billion to develop a fourth LNG export facility in the State of Louisiana. The new project, CP2 LNG (“CP2”) will be located in Cameron Parish, adjacent to Venture Global’s first facility, Calcasieu Pass. This announcement brings Venture Global’s total planned capital investment in the State of Louisiana to more than $20 billion. CP2 will result in thousands of good paying jobs and an estimated $2 billion in new local revenue during the life of the project. The direct new jobs created by the project will have average annual salaries of $120,000 plus benefits.
“Venture Global is proud to continue our expansion in Louisiana with the launch of our next project, CP2 LNG. CP2 will be located in Cameron Parish, adjacent to our existing Calcasieu Pass terminal. These two projects, combined with our Plaquemines LNG facility now under construction, represent more than $20 billion of investment in the State of Louisiana and will create thousands of jobs—including both permanent and construction jobs,” said Venture Global CEO Mike Sabel. “With two major LNG export projects currently under active construction, Venture Global is on a mission to produce the cleanest, low-cost LNG in North America. We are proud to partner with Louisiana in these efforts and in developing Carbon Capture and Sequestration (CCS) for our facilities. Under the leadership of Governor John Bel Edwards, Louisiana is enhancing its status as an international hub for innovation to tackle the energy and climate challenges of our time.”
“Venture Global has invested significantly in Louisiana’s economy, and I am proud to celebrate this exciting new project with them,” said Louisiana Governor John Bel Edwards. “The CP2 facility in Cameron will create more than 1,000 new permanent jobs and thousands of construction jobs in the area, which will have a significant impact on our economy. And it is incorporating clean energy technology that reduces the amount of CO2 released into the atmosphere, which is significant for our environment. As Louisiana pursues a goal of net-zero emissions by 2050, projects that feature carbon capture and sequestration allow our state to sustain industry without sacrificing our long-term carbon-reduction goals.”
Today, Venture Global also announced that it has submitted a formal application requesting authorization from the Federal Energy Regulatory Commission (FERC) to site, construct and operate the CP2 LNG facility and the CP express pipeline. CP2 LNG will build, own and operate a liquified natural gas (LNG) terminal with a nameplate liquification capacity of 20 million metric tonnes per annum (MTPA) of LNG. The CP Express pipeline will provide natural gas to the CP2 LNG facility.
“Venture Global is proud to continue our expansion in Louisiana with the launch of our next project, CP2 LNG. CP2 will be located in Cameron Parish, adjacent to our existing Calcasieu Pass terminal. These two projects, combined with our Plaquemines LNG facility now under construction, represent more than $20 billion of investment in the State of Louisiana and will create thousands of jobs—including both permanent and construction jobs,” said Venture Global CEO Mike Sabel. “With two major LNG export projects currently under active construction, Venture Global is on a mission to produce the cleanest, low-cost LNG in North America. We are proud to partner with Louisiana in these efforts and in developing Carbon Capture and Sequestration (CCS) for our facilities. Under the leadership of Governor John Bel Edwards, Louisiana is enhancing its status as an international hub for innovation to tackle the energy and climate challenges of our time.”
“Venture Global has invested significantly in Louisiana’s economy, and I am proud to celebrate this exciting new project with them,” said Louisiana Governor John Bel Edwards. “The CP2 facility in Cameron will create more than 1,000 new permanent jobs and thousands of construction jobs in the area, which will have a significant impact on our economy. And it is incorporating clean energy technology that reduces the amount of CO2 released into the atmosphere, which is significant for our environment. As Louisiana pursues a goal of net-zero emissions by 2050, projects that feature carbon capture and sequestration allow our state to sustain industry without sacrificing our long-term carbon-reduction goals.”
Today, Venture Global also announced that it has submitted a formal application requesting authorization from the Federal Energy Regulatory Commission (FERC) to site, construct and operate the CP2 LNG facility and the CP express pipeline. CP2 LNG will build, own and operate a liquified natural gas (LNG) terminal with a nameplate liquification capacity of 20 million metric tonnes per annum (MTPA) of LNG. The CP Express pipeline will provide natural gas to the CP2 LNG facility.
Thursday 16 December 2021
MOL and Vopak reach agreement to jointly own and operate the FSRU for the new LNG terminal in Hong Kong
Mitsui O.S.K. Lines, Ltd. (MOL) and Royal Vopak (Vopak) announce an agreement has been
reached, whereby Vopak will acquire 49.99% of the shares in the vessel owning company of
MOL FSRU Challenger, whose name will be changed to Bauhinia Spirit. This new joint venture
company between MOL and Vopak in Hong Kong will own the world’s largest floating storage
and regasification unit (FSRU) and have a long-term contract with Hong Kong LNG Terminal
Limited.1 The FSRU has a storage and regasification capacity of 263,000 cbm and 800 mmscfd,
respectively. Under the contract, the joint venture will provide the FSRU as well as jetty
operations & maintenance and port services.
The offshore jetty platform for the mooring of the FSRU and LNG carriers are owned by Hong
Kong LNG Terminal Limited. The terminal is currently under construction and is expected to be
operational around mid 2022. The terminal will be located offshore about 25 km southwest of
Hong Kong Island. The terminal will provide natural gas feedstock to the customer’s dedicated
power plants. It is being developed to support the Hong Kong Special Administrative Region
(HKSAR) government’s target to improve air quality and environmental conditions by increasing
the percentage of power generation by natural gas.
Both MOL and Vopak are excited to contribute to the success of Hong Kong's first ever LNG
import terminal based on the companies’ complementary strengths, combining their experiences
related to the LNG industry including FSRU, and offshore jetty platform operations &
maintenance respectively. Being the global market leaders in their respective fields, MOL is
involved in over 100 LNG carrier and FSRU projects with Vopak having a portfolio of 4 LNG
terminals in operation and more than 300 jetties across its global terminal network.
“An ideal complementary relationship works by combining Vopak's many years of experience as
a terminal operator for oils, chemicals and liquefied gas with MOL's know-how of LNG carrier
and FSRU operation. MOL looks forward to further working with Vopak on this promising proand feels confident that with our joint forces, we will be able to establish a safe and reliable
operation structure for the Hong Kong FSRU project.” said Takeshi Hashimoto, President &
CEO of MOL.
Eelco Hoekstra, Chairman of the Executive Board & CEO of Royal Vopak, said “We very much
look forward to further strengthening our partnership with MOL and to actively contribute
together to the energy transition policy of the government in Hong Kong. This cooperation gives
Vopak an excellent entry in the growing LNG market in Hong Kong and fits our ambition to
diversify our service offering in LNG by investing in FSRUs.”
This agreement follows MOL’s earlier announcement whereby MOL has entered into a long-
term contract with the customer and an agreement with Vopak for jetty support. The transaction
is subject to customary conditions, including closing, refinancing and obtaining (regulatory)
approvals, with the expected completion after the commissioning of the terminal around mid
2022.
Based on these joint initiatives, MOL and Vopak also aim to explore further downstream
opportunities for bunkering of LNG as a cleaner marine fuel in Hong Kong, where is one of the
major bunkering port of fuel oils for marine transportation. MOL has a plan to operate
approximately 90 LNG-fueled vessels by 2030, which is a part of MOL Group Environmental
Vision 2.1, aiming for Net Zero GHG emission by 2050.
- Length : 345.00 m
- Beam : 55.00 m
- LNG storage capacity : 263,000 m3
- Regas discharging capacity : 800 mmscfd
- Delivery : 2017
Wednesday 15 December 2021
Scarborough And Pluto Train 2 Developments Approved
Final investment decisions have been made to approve the Scarborough and Pluto Train 2 developments, including new domestic gas facilities and modifications to Pluto Train 1.
The US$12.0 billion (100%, $6.9 billion Woodside share) LNG development is expected to deliver significant cash flow and enduring value to shareholders. Scarborough gas processed through Pluto Train 2 will be one of the lowest carbon intensity sources of LNG delivered to customers in north Asia, with first LNG cargo targeted for 2026.
With the sell-down of 49% of Pluto Train 2 announced on 15 November 2021, the expected investment
metrics for the integrated development are:
• An internal rate of return (IRR) of above 13.5%
• An all-in cost of supply for LNG delivered to north Asia of approximately $5.8/MMBtu
• A payback period of 6 years.1
Woodside’s overall corporate 2P Total Reserves has increased by approximately 158% to 2,342.0 MMboe. Woodside CEO Meg O’Neill said approving the development of the world-class Scarborough gas resource is a landmark achievement for Woodside.
“Today’s decisions set Woodside on a transformative path. Scarborough will be a significant contributor to Woodside’s cash flows, the funding of future developments and new energy products, and shareholder returns. “This capital efficient development leverages Woodside’s existing infrastructure and our proven expertise in project execution. The contracting model, development concept and execution strategy have been designed to reduce cost risk and protect shareholder value.
“The Scarborough reservoir contains only around 0.1% carbon dioxide, and Scarborough gas processed
through the efficient and expanded Pluto LNG facility supports the decarbonisation goals of our customers in Asia.
“The final investment decision is underpinned by quality customer support with approximately 60% of
Scarborough capacity contracted, including domestic gas for the proposed Perdaman urea project.
“Developing Scarborough delivers value for Woodside shareholders and significant long-term benefits locally and nationally, including thousands of jobs, taxation revenue and the supply of gas to export and domestic markets for decades to come,” she said.
Sembcorp Marine to Support Bechtel in the Construction of Gas Processing Train for Pluto Train 2 Project
Sembcorp Marine Ltd, through its wholly-owned subsidiary, Sembcorp Marine Offshore Platforms Pte. Ltd. (“SMOP”), has entered into a contract with Bechtel Overseas Corporation (“Bechtel”) for module assembly of the second LNG train to be constructed at the Pluto LNG Project (“Pluto Train 2”).
Bechtel and SMOP will form an integrated management team to manage the module assembly programme for Pluto Train 2, scheduled to be completed in 2024.
Pluto LNG is a single onshore LNG processing train located on the Burrup Peninsula near Karratha in the north-west of Western Australia and currently processes gas from the Pluto and Xena offshore fields. Woodside has operated Pluto LNG safely and reliably since its start-up in 2012. The construction of Pluto Train 2 will expand Pluto’s existing processing capacity by around five million tonnes per annum and allow for the processing of third-party gas resources.
Sembcorp Marine Head of Offshore Platforms Mr Samuel Wong said, “Sembcorp Marine is pleased to collaborate once again with Bechtel on an Australian LNG project. The Group looks forward to executing the project safely and efficiently and we thank Bechtel for their continued trust in our capabilities.”
Previous collaborations between Sembcorp Marine and Bechtel include Australia Pacific LNG project and the Wheatstone LNG project.
The aforementioned contract is not expected to have any material impact on the net tangible assets and earnings per share of the Group for the year ending 31 December 2021.
Bechtel and SMOP will form an integrated management team to manage the module assembly programme for Pluto Train 2, scheduled to be completed in 2024.
Pluto LNG is a single onshore LNG processing train located on the Burrup Peninsula near Karratha in the north-west of Western Australia and currently processes gas from the Pluto and Xena offshore fields. Woodside has operated Pluto LNG safely and reliably since its start-up in 2012. The construction of Pluto Train 2 will expand Pluto’s existing processing capacity by around five million tonnes per annum and allow for the processing of third-party gas resources.
Sembcorp Marine Head of Offshore Platforms Mr Samuel Wong said, “Sembcorp Marine is pleased to collaborate once again with Bechtel on an Australian LNG project. The Group looks forward to executing the project safely and efficiently and we thank Bechtel for their continued trust in our capabilities.”
Previous collaborations between Sembcorp Marine and Bechtel include Australia Pacific LNG project and the Wheatstone LNG project.
The aforementioned contract is not expected to have any material impact on the net tangible assets and earnings per share of the Group for the year ending 31 December 2021.
Wednesday 24 November 2021
Cheniere Partners Announces Achievement of First LNG at Sabine Pass Train 6
Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American: CQP) announced today that liquefied natural gas (LNG) was produced for the first time at Train 6 of the company’s Sabine Pass Liquefaction facility. The commissioning process continues, and Cheniere Partners expects Substantial Completion of Train 6 to be achieved in the first quarter of 2022, approximately 1 year ahead of the guaranteed completion date. Upon Substantial Completion, Bechtel Energy Inc. (“Bechtel”) will transfer the completed train to Cheniere Partners, and Sabine Pass’ total production capacity will be approximately 30 million tonnes per annum of LNG.
“This milestone is yet another impressive achievement by the Bechtel and Cheniere teams who continue to safely commission and bring our LNG trains online ahead of schedule and within project budgets,” said Jack Fusco, Chairman, President and CEO of Cheniere Partners. “With global economic activity increasing and the winter season approaching in key LNG markets around the world, providing additional supplies of reliable LNG can help companies, countries and communities around the world during this high-demand period.”
“These LNG projects are powering the energy transition and enabling access to cleaner energy around the world,” said Brendan Bechtel, Chairman and CEO of Bechtel. “Cheniere Partners continues to be at the forefront in the LNG industry and we are honored to play a role in improving access to this energy source for communities that need it.”
Full notice to proceed on Sabine Pass Train 6 was issued to Bechtel by Cheniere Partners in June 2019. Since then, the peak workforce building Train 6 was 1,800 workers who have completed approximately 5,000,000 craft professional hours, installed 12,250 tons of steel, poured 48,500 yards of concrete, and laid 2,500,000 feet of cable.
“This milestone is yet another impressive achievement by the Bechtel and Cheniere teams who continue to safely commission and bring our LNG trains online ahead of schedule and within project budgets,” said Jack Fusco, Chairman, President and CEO of Cheniere Partners. “With global economic activity increasing and the winter season approaching in key LNG markets around the world, providing additional supplies of reliable LNG can help companies, countries and communities around the world during this high-demand period.”
“These LNG projects are powering the energy transition and enabling access to cleaner energy around the world,” said Brendan Bechtel, Chairman and CEO of Bechtel. “Cheniere Partners continues to be at the forefront in the LNG industry and we are honored to play a role in improving access to this energy source for communities that need it.”
Full notice to proceed on Sabine Pass Train 6 was issued to Bechtel by Cheniere Partners in June 2019. Since then, the peak workforce building Train 6 was 1,800 workers who have completed approximately 5,000,000 craft professional hours, installed 12,250 tons of steel, poured 48,500 yards of concrete, and laid 2,500,000 feet of cable.
Woodfibre LNG awards EPFC contract to McDermott
Woodfibre LNG has signed an Engineering, Procurement, Fabrication, and Construction (EPFC) contract with McDermott International. The EPFC contract is an important step in advancing detailed engineering and construction scheduling work in advance of Woodfibre LNG issuing a notice to proceed.
Responsibly produced natural gas is a necessary part of making a successful global transition from heavy-emitting fuels to renewables. By harnessing the low-carbon gas resources of British Columbia's Montney region to replace coal-fired energy sources in Asia, Woodfibre LNG will reduce global emissions by 3.5 million tonnes CO2e per annum, equivalent to removing 5 percent of B.C.'s annual emissions from the atmosphere each year. McDermott and Woodfibre's collaboration on front-end engineering and facility design, relative to typical LNG facilities, is expected to result in a reduction of approximately 86 percent of the carbon dioxide emissions per tonne of LNG produced.
Woodfibre LNG will be the cleanest liquefied natural gas export facility on earth, achieved through the adoption of a low-emission philosophy across every element of engineering and design. The facility will use hydroelectricity for the main liquefaction process, and includes state of the art technology that enables liquefaction machinery to restart without flaring, a recycling system for "boil-off" gas, and additional transformers, switchgear and transmission lines. Altogether, this results in the most groundbreaking technical achievement in the world of LNG, and sets a new standard for efficient plant design. This next-generation LNG production is in high demand. Woodfibre LNG has two offtake agreements signed with BP, meaning over 70 percent of Woodfibre's annual throughput has already been sold.
McDermott's industry-leading NetZero Modular LNG strategy has been fully utilized during the development of this advanced onshore gas processing and liquefaction facility with floating storage near Squamish, British Columbia, Canada. The strategy provides multiple pathways through design, execution and construction to reduce operational and project emissions.
"Our contract with McDermott is a positive step forward for this substantial piece of clean energy infrastructure," said Christine Kennedy, president of Woodfibre LNG. "Together, we will be building the lowest-emission, most sustainable and innovative LNG export facility in the world. A particular point of pride for us is that the Squamish Nation serves as a full environmental regulator for this project. Serving as a unique example of economic Reconciliation, this is the first arrangement of its type for an LNG facility."
McDermott will manage onshore construction, leveraging Canadian-based contractors and commitments included in Woodfibre LNG's Impact Benefit Agreements with the Sḵwx̱wú7mesh Úxwumixw (Squamish Nation). It is estimated that 650 people will be working on the Woodfibre LNG site at peak construction. The EPFC contract commits McDermott to Woodfibre LNG's hiring priority for qualified Squamish Nation members and local workers first, followed by British Columbians and then Canadians. The joint priority is to create a safe, inclusive and respectful workplace that brings benefits to the project's Indigenous partners and community.
"This is another example of how we are applying our unique integrated capabilities to solve challenges and create successes for our customers," said Samik Mukherjee, Executive Vice President and Chief Operating Officer of McDermott. "This award is a tremendous opportunity to further demonstrate how our LNG and modularization expertise enables a new generation of sustainable energy solutions."
In addition to the EPFC work, McDermott will also be responsible for commissioning and start-up services. Pre-installation work for the project is planned for early 2022 and will gradually ramp up to September 2023, when major construction is targeted to begin. Major works will continue through to substantial completion, expected in Q3 2027.
Monday 15 November 2021
PGNiG will purchase more natural gas from Venture Global LNG
PGNiG (Polish Oil and Gas Company) signed amendments to agreements with American companies Venture Global Calcasieu Pass, LLC and Venture Global Plaquemines, LLC to purchase another 2 million tonnes per annum (MTPA) of liquefied natural gas for 20 years. As a result, the volume of LNG contracted from Venture Global LNG by PGNiG will increase up to 5,5 MTPA, which equals approximately 7.4 bcm following regasification.
“The contracts signed today are another important step on the way to full energy security of our country. The American gas which will be supplied by a reliable and predictable partner, together with the fuel that will flow to Poland via the Baltic Pipe gas pipeline from Norway, will allow us to become independent from supplies from the eastern direction. Diversifying the sources of gas imports and the possibility of choice, as well as the freedom to trade in the purchased fuel, increases Poland's energy independence,” commented Jacek Sasin, Deputy Prime Minister and Minister of State Assets.
“The import of LNG allows PGNiG to diversify sources and routes of supply of natural gas. This way we can provide Polish customers with energy security – constant and uninterrupted gas deliveries. This is particularly important considering that natural gas will be a bridge fuel in the process of energy transition of the Polish economy. At the same time, access to American LNG gives us opportunity to develop trade of this fuel on the global market – for this purpose we will charter LNG carriers to transport liquefied natural gas. In this respect, we value cooperation with Venture Global LNG, as it brings us the possibility of achieving our strategic goals,” commented Paweł Majewski, the President of the PGNiG Management Board.
“Venture Global is proud to expand our existing partnership with PGNiG to provide a clean and reliable supply of American LNG to Poland. Since 2018, our two companies have significantly increased our cooperation, nearly tripling the volume of LNG Venture Global will export to PGNiG. Poland will lower its carbon footprint and diversify its energy mix by incorporating more American natural gas into its portfolio. Pivoting towards cleaner natural gas from the United States will not only increase Poland’s energy security but also decrease its carbon emissions, and Venture Global looks forward to supporting our partner PGNiG in these efforts for years to come,” commented Mike Sabel, Chief Executive Officer of Venture Global LNG.
The amendments relate to agreements signed by PGNiG and Venture Global LNG companies in 2018. They determine the increase in the sales volume of liquefied natural gas. In case of the sales and purchase agreement with Venture Global Calcasieu Pass, LLC the amendment provides for an increase in the volume of LNG purchased by PGNiG by 0.5 MTPA to 1.5 MTPA. While the amendment to the agreement with Venture Global Plaquemines, LLC increases the volume of supplies of LNG by 1.5 MTPA to 4.0 MTPA. Thanks to the amendments the total volume of liquefied natural gas that PGNiG will purchase from both Venture Global LNG companies for the period of 20 years will increase to a total of 5.5 MTPA, i.e. to approx. 7.4 bcm after regasification.
The amended agreements are contracts based on the free-on-board (FOB) formula, which means that the purchaser, i.e. PGNiG, is responsible for the loading and transportation of the purchased gas. LNG will be collected from two liquefaction facilities on the Gulf of Mexico – Calcasieu Pass and Plaquemines. The first supplies from Venture Global LNG are planned for the beginning of 2023.
“The contracts signed today are another important step on the way to full energy security of our country. The American gas which will be supplied by a reliable and predictable partner, together with the fuel that will flow to Poland via the Baltic Pipe gas pipeline from Norway, will allow us to become independent from supplies from the eastern direction. Diversifying the sources of gas imports and the possibility of choice, as well as the freedom to trade in the purchased fuel, increases Poland's energy independence,” commented Jacek Sasin, Deputy Prime Minister and Minister of State Assets.
“The import of LNG allows PGNiG to diversify sources and routes of supply of natural gas. This way we can provide Polish customers with energy security – constant and uninterrupted gas deliveries. This is particularly important considering that natural gas will be a bridge fuel in the process of energy transition of the Polish economy. At the same time, access to American LNG gives us opportunity to develop trade of this fuel on the global market – for this purpose we will charter LNG carriers to transport liquefied natural gas. In this respect, we value cooperation with Venture Global LNG, as it brings us the possibility of achieving our strategic goals,” commented Paweł Majewski, the President of the PGNiG Management Board.
“Venture Global is proud to expand our existing partnership with PGNiG to provide a clean and reliable supply of American LNG to Poland. Since 2018, our two companies have significantly increased our cooperation, nearly tripling the volume of LNG Venture Global will export to PGNiG. Poland will lower its carbon footprint and diversify its energy mix by incorporating more American natural gas into its portfolio. Pivoting towards cleaner natural gas from the United States will not only increase Poland’s energy security but also decrease its carbon emissions, and Venture Global looks forward to supporting our partner PGNiG in these efforts for years to come,” commented Mike Sabel, Chief Executive Officer of Venture Global LNG.
The amendments relate to agreements signed by PGNiG and Venture Global LNG companies in 2018. They determine the increase in the sales volume of liquefied natural gas. In case of the sales and purchase agreement with Venture Global Calcasieu Pass, LLC the amendment provides for an increase in the volume of LNG purchased by PGNiG by 0.5 MTPA to 1.5 MTPA. While the amendment to the agreement with Venture Global Plaquemines, LLC increases the volume of supplies of LNG by 1.5 MTPA to 4.0 MTPA. Thanks to the amendments the total volume of liquefied natural gas that PGNiG will purchase from both Venture Global LNG companies for the period of 20 years will increase to a total of 5.5 MTPA, i.e. to approx. 7.4 bcm after regasification.
The amended agreements are contracts based on the free-on-board (FOB) formula, which means that the purchaser, i.e. PGNiG, is responsible for the loading and transportation of the purchased gas. LNG will be collected from two liquefaction facilities on the Gulf of Mexico – Calcasieu Pass and Plaquemines. The first supplies from Venture Global LNG are planned for the beginning of 2023.
Wednesday 23 June 2021
Commission approves €166.7 million Greek public support for construction of LNG terminal in Alexandroupolis
The European Commission has approved, under EU State aid rules, a €166.7 million Greek support measure for the construction of a new liquid natural gas (“LNG”) terminal in Alexandroupolis, Greece. The project will contribute to the security and diversification of energy supplies in Greece and, more generally, in the region of South East Europe, without unduly distorting competition.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: "The new LNG terminal in Alexandroupolis will improve gas supply and infrastructure not only in Greece, but in the whole South Eastern European region. This will contribute to achievement of the EU's goals in terms of security and diversification of energy supply. The Greek support measure limits the aid to what is necessary to make the project happen and sufficient safeguards will be in place to ensure that potential competition distortions are minimised."
Greece notified the Commission of its plans to support the construction of a new LNG terminal in Alexandroupolis, consisting a Floating Storage Regasification Unit (“FSRU”) for the reception, storage and regasification of LNG (complemented by permanent offshore installations, such as mooring system and risers), as well as a system of a sub-sea and an onshore gas transmission pipeline which will connect the FSRU to the National Natural Gas System of Greece (“NNGS”).
Given its strategic importance for the diversification of natural gas supplies into the South-Eastern European region, the LNG terminal in Alexandroupolis has been included in the lists of European Project of Common Interest in the energy sector, based on the EU TEN-E (“Trans-European Network for Energy”) rules since 2013.
The terminal is expected to improve security of supply not only for Greece, but also for Bulgaria and for the wider South Eastern European region, as it will constitute a new potential energy source to feed into the interconnector between Greece and Bulgaria (“IGB”). The Commission approved public support for the IGB project, which is currently under construction, under EU State aid rules in November 2018.
The Greek Authorities have confirmed that the LNG Terminal would be apt to use for hydrogen, and that the project would contribute to a cleaner energy mix through increased use of gas instead of coal.
The project will be financed by the Greek State using European Structural and Investment Funds (“ESIF”), notably funds directly controlled and managed by Greece under the 2014-2020 Partnership Agreement for the Development. The support will take the form of a direct grant amounting to €166.7 million. The beneficiary of the aid is Gastrade SA, a company in which the Greek gas incumbent (DEPA) and the Bulgarian gas Transmission System Operator (Bulgartransgaz EAD) hold a participation. Gastrade will be the promoter and operator of the new terminal.
The Commission assessed the measure under EU State aid rules, in particular under the 2014 Guidelines on State Aid for Environmental Protection and Energy.
The Commission found that the aid is appropriate and necessary, as the project would not be carried out without the public support. In this context, the Commission took into account the inclusion of the project in the list of Projects of Common Interest in the energy sector.
Furthermore, in order to ensure that there is no overcompensation, the project promoter will be obliged to give back to the State part of the revenues generated from the terminal, should they go beyond a set capped level over the project lifetime. In addition, the National Energy Regulator has put in place certain safeguards to prevent an increase in the market position of the largest gas operators involved in the project, such as a limitation of the share of LNG that can be booked in the terminal by such players.
This will ensure that the aid is proportionate and limited to the minimum necessary for triggering the investment and that potential distortions of competition and trade are minimised.
On this basis, the Commission concluded that the measure is in line with EU State aid rules, as it will further security and diversification of energy supply, notably in the South-Eastern European region, without unduly distorting competition.
Background
The Floating Storage Regasification Unit (“FSRU”) of the new terminal will be stationed approximately 17.6 km from the town of Alexandroupolis in Northern Greece, at an offshore distance of approximately 10 km from the nearest shore. The FSRU will have an overall delivery capacity 5.5 billion cubic meters/bcm per year. The subsea and onshore sections of the gas transmission pipeline, of 24 km and 4 km respectively, will transmit the gas from the floating unit to the Greek natural gas network. The connection point of the pipeline will be the Kipi‐Komotini branch of the National Natural Gas System of Greece (“NNGS”), at a new entry point from which the natural gas from the floating unit will be transmitted to the NNGS.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: "The new LNG terminal in Alexandroupolis will improve gas supply and infrastructure not only in Greece, but in the whole South Eastern European region. This will contribute to achievement of the EU's goals in terms of security and diversification of energy supply. The Greek support measure limits the aid to what is necessary to make the project happen and sufficient safeguards will be in place to ensure that potential competition distortions are minimised."
Greece notified the Commission of its plans to support the construction of a new LNG terminal in Alexandroupolis, consisting a Floating Storage Regasification Unit (“FSRU”) for the reception, storage and regasification of LNG (complemented by permanent offshore installations, such as mooring system and risers), as well as a system of a sub-sea and an onshore gas transmission pipeline which will connect the FSRU to the National Natural Gas System of Greece (“NNGS”).
Given its strategic importance for the diversification of natural gas supplies into the South-Eastern European region, the LNG terminal in Alexandroupolis has been included in the lists of European Project of Common Interest in the energy sector, based on the EU TEN-E (“Trans-European Network for Energy”) rules since 2013.
The terminal is expected to improve security of supply not only for Greece, but also for Bulgaria and for the wider South Eastern European region, as it will constitute a new potential energy source to feed into the interconnector between Greece and Bulgaria (“IGB”). The Commission approved public support for the IGB project, which is currently under construction, under EU State aid rules in November 2018.
The Greek Authorities have confirmed that the LNG Terminal would be apt to use for hydrogen, and that the project would contribute to a cleaner energy mix through increased use of gas instead of coal.
The project will be financed by the Greek State using European Structural and Investment Funds (“ESIF”), notably funds directly controlled and managed by Greece under the 2014-2020 Partnership Agreement for the Development. The support will take the form of a direct grant amounting to €166.7 million. The beneficiary of the aid is Gastrade SA, a company in which the Greek gas incumbent (DEPA) and the Bulgarian gas Transmission System Operator (Bulgartransgaz EAD) hold a participation. Gastrade will be the promoter and operator of the new terminal.
The Commission assessed the measure under EU State aid rules, in particular under the 2014 Guidelines on State Aid for Environmental Protection and Energy.
The Commission found that the aid is appropriate and necessary, as the project would not be carried out without the public support. In this context, the Commission took into account the inclusion of the project in the list of Projects of Common Interest in the energy sector.
Furthermore, in order to ensure that there is no overcompensation, the project promoter will be obliged to give back to the State part of the revenues generated from the terminal, should they go beyond a set capped level over the project lifetime. In addition, the National Energy Regulator has put in place certain safeguards to prevent an increase in the market position of the largest gas operators involved in the project, such as a limitation of the share of LNG that can be booked in the terminal by such players.
This will ensure that the aid is proportionate and limited to the minimum necessary for triggering the investment and that potential distortions of competition and trade are minimised.
On this basis, the Commission concluded that the measure is in line with EU State aid rules, as it will further security and diversification of energy supply, notably in the South-Eastern European region, without unduly distorting competition.
Background
The Floating Storage Regasification Unit (“FSRU”) of the new terminal will be stationed approximately 17.6 km from the town of Alexandroupolis in Northern Greece, at an offshore distance of approximately 10 km from the nearest shore. The FSRU will have an overall delivery capacity 5.5 billion cubic meters/bcm per year. The subsea and onshore sections of the gas transmission pipeline, of 24 km and 4 km respectively, will transmit the gas from the floating unit to the Greek natural gas network. The connection point of the pipeline will be the Kipi‐Komotini branch of the National Natural Gas System of Greece (“NNGS”), at a new entry point from which the natural gas from the floating unit will be transmitted to the NNGS.
Signing of Advanced Reservation of Capacity Agreement (ARCA) between DESFA and Dioriga Gas
DESFA and Dioriga Gas signed on Wednesday June 16th 2021 the Advanced Reservation of Capacity Agreement (ARCA) for the construction of the connections between the planned floating storage and regasification unit of Dioriga Gas, which is set to be developed by the subsidiary of Motor Oil in the Gulf of Agioi Theodoroi, in Corinth and the National Natural Gas Transmission System (NNGTS) owned and operated by DESFA. The agreement was signed by the CEO of DESFA, Maria Rita Galli and the CEO of Dioriga Gas, Ioannis Kioufis.
This is an important step in the development of the Dioriga Gas FSRU, as with the signing of the agreement, DESFA begins the preparation of studies for the construction of a Metering and Regulating Station with a capacity of 490,000 Nm3 / h (11.76 mn. Nm3/day), which is going to connect the Dioriga Gas FSRU with the NNGTS, a project that is included in the three-year period of the Ten-Year Development Plan of DESFA 2021-2030.
Upon completion and in conjunction with DESFA's existing infrastructure, the FSRU of Dioriga Gas will be an additional gateway for natural gas to serve emerging national and regional gas markets, enhancing security of supply and diversification of energy supply sources, as well as competition at both national and regional level, with significant benefits for consumers.
In addition, in synergy with DESFA’s Small Scale LNG infrastructures (LNG Truck Loading Station & New Small Scale LNG Jetty), which are being constructed in the Revithoussa LNG Terminal, the planned LNG barge reloading and truck loading facilities of the Dioriga Gas FRSU will facilitate further penetration of natural gas in the maritime sector, as well as in areas far from the natural gas network.
On the occasion of the signing, Maria Rita Galli, CEO of DESFA, noted: "We are glad for today's signing as a further step has been achieved for a new gas import infrastructure project that will further enhance the role of Greece as Southeast Europe’s international energy hub. DESFA ensures open access to the National Natural Gas System, steadily fostering the development of competition in the Greek energy market, with significant benefits for the country, the Greek economy and the final consumer."
The CEO of Dioriga Gas, Ioannis Kioufis, stated: “We would like to thank DESFA for the cooperation so far. Today’s signing is very important as it signals the beginning of an important project from which the Greek consumers will benefit. Motor Oil as an energy group is committed in realizing works of strategic importance for the country’s energy transition. In this respect, DESFA’s long experience in handling and operating natural gas infrastructures is important for the successful completion of this emblematic project. We are looking forward in realizing together the next steps of the project.”
Friday 4 June 2021
Tellurian and Vitol sign 10-year LNG agreement for 3 mtpa
Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced today it has finalized a liquefied natural gas (LNG) sales and purchase agreement (SPA) with Vitol Inc. (Vitol). The SPA is for three million tonnes per annum (mtpa) on a free on board (FOB) basis at Driftwood LNG for a ten-year period, indexed to a combination of two indices: the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF), each netted back for transportation charges. At today’s prices, the agreement is valued at approximately $12 billion in revenue over ten years.
President and CEO Octávio Simões said, “Tellurian continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want. Vitol expressed interest in the development of Driftwood early on, and it is fulfilling to finalize this agreement with the world’s largest independent trader of energy. As the world electrifies and our population grows, the demand for reliable, low-cost energy will continue to increase. LNG provides a stable source of fuel at an attractive price, and Tellurian’s integrated model is positioned perfectly to offer volumes on JKM, TTF or blended price basis.”
Executive Vice President LNG Marketing & Trading Tarek Souki added, “Tellurian has made exceptional progress on our intended first phase capacity sales by securing this second SPA with another respected global energy trading business. The two recent agreements represent an aggregate of $24 billion in estimated revenue; we will continue to be deliberate and selective in choosing our additional customers.”
Pablo Galante Escobar, Global Head of LNG and European Gas & Power at Vitol said: “Vitol is excited to conclude this agreement with Tellurian. Our long-term commitment and investment grade rating will help Tellurian as they continue their path to financial close.”
Ben Marshall, CEO of Vitol Inc. added: “Vitol’s business continues to grow and evolve in the Americas and around the world. This agreement will make Vitol one of North America’s largest exporters of natural gas, providing our customers with cost effective and cleaner fuel solutions.”
Tellurian and Gunvor sign 10-year LNG agreement for 3 mtpa
Tellurian Inc. (Tellurian) (NASDAQ: TELL) and Gunvor Singapore Pte Ltd (Gunvor) announced today a liquefied natural gas (LNG) sales and purchase agreement (SPA) for three million tonnes per annum (mtpa) for a ten year period, indexed to a combination of two indices; the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF), netted back for transportation charges. The LNG would be delivered free on board (FOB) from Tellurian’s Driftwood LNG, a 27.6 mtpa liquefaction facility proposed near Lake Charles, Louisiana in the United States Gulf Coast.
President and CEO Octávio Simões said, “Tellurian intends to market up to 10 mtpa of LNG in our first phase on a JKM, TTF or blended price basis, as our integrated model provides the flexibility to offer this valuable product. We welcome Gunvor, the largest independent global trader of LNG volumes, to Driftwood and look forward to providing a cleaner fuel to meet growing global energy needs and enable energy access.”
Executive Vice President LNG Marketing & Trading Tarek Souki added, “Our business model creates significant value for Tellurian; at today’s LNG prices, this agreement represents the equivalent of approximately $12 billion in revenue over the 10-year term of the agreement.”
Thursday 15 April 2021
McDermott's CB&I Storage Solutions Awarded LNG Storage Contract for Philippines' First LNG Import Terminal
McDermott International, Ltd today announced that its CB&I Storage Solutions business has been awarded a contract by Atlantic Gulf and Pacific Company of Manila Inc. (AG&P) for the engineering, procurement and construction of a liquefied natural gas (LNG) storage tank for AG&P's Philippines LNG import and regasification terminal, currently under construction in Batangas, Philippines.
"We are confident we made the right choice to work in close cooperation with CB&I Storage Solutions on this technically advanced and challenging project," said Roeland Uytdewilligen, Project Director of AG&P.
CB&I Storage Solutions will provide the first of two 60,000 cubic meter full containment steel LNG tanks along with geotechnical investigation, soil improvement, foundation and topside platform structure, pre-commissioning, purging and commissioning activities.
"We are proud to support AG&P in the delivery of the Philippines' first LNG import terminal. The design of this first-of-a-kind full containment steel LNG tank highlights our innovation and technology leadership in the LNG storage industry and positions CB&I Storage Solutions to serve the growing small-scale LNG market in Asia and other regions with similar demands," said Cesar Canals, Senior Vice President of CB&I Storage Solutions. "We have an extensive history of executing world-class projects in the Philippines and are confident in our ability to deliver this tank safely, on time and within budget."
Mechanical completion is slated for the third quarter of 2023 with purging and commissioning activities to follow.
"We are confident we made the right choice to work in close cooperation with CB&I Storage Solutions on this technically advanced and challenging project," said Roeland Uytdewilligen, Project Director of AG&P.
CB&I Storage Solutions will provide the first of two 60,000 cubic meter full containment steel LNG tanks along with geotechnical investigation, soil improvement, foundation and topside platform structure, pre-commissioning, purging and commissioning activities.
"We are proud to support AG&P in the delivery of the Philippines' first LNG import terminal. The design of this first-of-a-kind full containment steel LNG tank highlights our innovation and technology leadership in the LNG storage industry and positions CB&I Storage Solutions to serve the growing small-scale LNG market in Asia and other regions with similar demands," said Cesar Canals, Senior Vice President of CB&I Storage Solutions. "We have an extensive history of executing world-class projects in the Philippines and are confident in our ability to deliver this tank safely, on time and within budget."
Mechanical completion is slated for the third quarter of 2023 with purging and commissioning activities to follow.
Friday 5 March 2021
Qatar Petroleum awards North Field Expansion project contract for LNG storage and loading facilities
Qatar Petroleum announces the award of a major engineering, procurement, and construction (EPC) contract to Samsung C&T Corporation for the expansion of the LNG storage and loading facilities located within Ras Laffan Industrial City as part of the North Field East (NFE) Project.
The EPC contract was signed today by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, and Mr. Oh Se-chul, the President and CEO of Samsung C&T, during a special ceremony at Qatar Petroleum Headquarters and in the attendance of senior officials from Qatar Petroleum and Qatargas.
The contract, valued at more than 2 billion dollars (including options), was awarded on a lump sum basis and is the second major onshore EPC contract award for the NFE project. On the 8th of February 2021, QP awarded the EPC contract for the construction of four LNG mega-trains with associated facilities to Chiyoda Technip Joint Venture. The award of this contract for the expansion of the LNG storage and loading facilities represents yet another important milestone on the road to substantially increase the State of Qatar’s LNG production capacity.
Both contracts represent the culmination of front-end engineering and design work that began in early 2018. When completed, the NFE Project will increase the State of Qatar’s LNG production capacity from 77 million to 110 tons per annum (MTPA). The second phase of the planned LNG expansion, the North Field South (NFS) Project, will further increase Qatar’s LNG production capacity from 110 MTPA to 126 MTPA by 2027.
Commenting on this occasion, His Excellency Mr. Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, The President and CEO of Qatar Petroleum, said: “The award of this contract marks another concrete step towards the further development of our natural gas resources, and enhancing our position as the world’s largest, most reliable LNG producer.”
His Excellency Minister Al-Kaabi added: “This contract provides for the expansion of existing infrastructure required to ensure the safe loading and on-time delivery of our LNG cargoes to our international customers across the globe. Its scope includes three LNG tanks and three LNG loading berths for NFE, and options for two LNG tanks and one LNG berth for NFS project, and all associated pipes, lines and loading lines.”
His Excellency concluded his remarks by saying: “We look forward to working with Samsung to deliver this important component of the North Field Expansion project in a safe, timely, and efficient manner. I am delighted that the detailed engineering activities under the contract will take place in Qatar, thus leveraging the growing technical capabilities for the development of major projects in the country.”
As per Qatar Petroleum’s established practice, special attention is paid to support the highest environmental standards by employing a high-efficiency design, and applying best available industry technologies to reduce gas and effluents emissions. This contract, in particular, includes the expansion of systems that target the elimination of flaring during the loading of LNG ships. In addition, recovery of ‘jetty boil-off gas’ will help reduce greenhouse gas emissions (GHG).
https://qp.com.qa/en/MediaCentre/Pages/ViewNews.aspx?NType=News
Damietta restarts LNG production, first cargo lifted
The first LNG cargo from the Damietta liquefaction plant in Egypt was successfully produced and lifted. This is the first LNG cargo produced by the terminal after it was shut down in 2012.
Such event represents an important milestone in the process to complete the agreement reached on December 1st 2020 aimed at settling all pending disputes between the parties and at restarting the operations at the plant.
At this stage the agreement has already received all the authorizations of the competent authorities and its final closing is expected in the first half of March.
The agreement comes at an important moment, when also thanks to the fast time to market of Eni's natural gas discoveries, especially the ones in the Zohr and Nooros fields, Egypt has regained its full capacity to meet domestic gas demand and can allocate surplus production for export through its LNG plants.
https://www.eni.com/en-IT/media/press-release/2021/02/damietta-restarts-lng-production-first-cargo-lifted.html
Such event represents an important milestone in the process to complete the agreement reached on December 1st 2020 aimed at settling all pending disputes between the parties and at restarting the operations at the plant.
At this stage the agreement has already received all the authorizations of the competent authorities and its final closing is expected in the first half of March.
The agreement comes at an important moment, when also thanks to the fast time to market of Eni's natural gas discoveries, especially the ones in the Zohr and Nooros fields, Egypt has regained its full capacity to meet domestic gas demand and can allocate surplus production for export through its LNG plants.
https://www.eni.com/en-IT/media/press-release/2021/02/damietta-restarts-lng-production-first-cargo-lifted.html
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