Gastrade adopts the Final Investment Decision for the Alexandroupolis Independent Natural Gas System (INGS)

The Final Investment Decision (FID) for the construction of the Independent Natural Gas System (INGS) of Alexandroupolis was taken yesterday by the shareholders of Gastrade SA. The FID is the last and most important milestone, before entering the project’s construction phase.

The General Assembly unanimously approved that all requirements for the materialization of the project have been secured, and the project is on track in line with its schedule.

The construction and operation of the Alexandroupolis Liquefied Natural Gas (LNG) Terminal will contribute to the energy security, liquidity and diversification of the country and the entire Southeastern Europe region, strengthening the strategic role of Greece and offering alternative sources and routes for the supply of natural gas in the area.

The Floating Storage and Regasification Unit (FSRU), with a capacity of 153,500 sq.m. of LNG, will be connected to the National Natural Gas Transmission System of Greece with a 28 km long pipeline, through which the gasified LNG will be transmitted to the markets of Greece, Bulgaria and the wider region, from Romania, Serbia and North Macedonia, as all the way to Moldova and Ukraine.

The Terminal is expected to operate by the end of 2023, with the contracted regasification capacity already reaching up to 50% of it’s technical capacity of 5.5 billion sq.m. per year. It is noted that Alexandroupolis INGS is included and financed by the Operational Program of the NSRF "Competitiveness, Entrepreneurship and Innovation 2014-2020" (EPAnEK), with an amount of public spending of 166.7 million Euros.

The Founding Shareholder and Chairperson of the Board of Directors of Gastrade, Ms. Elmina Copelouzou, stated: “The Final Investment Decision opens a new, important chapter in the energy security of the country and Southeastern Europe. We are particularly happy that Gastrade has undertaken a critical project that is a priority for the European Union. Alexandroupolis INGS will be adding to the security of the energy supply, diversifying the energy routes and contributing to the development of competition to the benefit of the final consumers”. While Mr. Konstantinos Sifnaios, Vice President and Managing Director of Gastrade, emphasized "A strategic project for the region is now reaching the stage of implementation. We are really proud of this achievement and confident that Gastrade's human resources coupled, with the know-how and support of its shareholders, will make the vision for a new, innovative energy entry gate in our country, a reality”.

The representative of Gaslog Cyprus Investments Ltd, Mr. Paolo Enoizi, stated that “GasLog invested and supported the work from the very beginning and we are especially delighted that we reached today’s outcome. This work matters greatly to us since GasLog not only participates in the shareholders’ composition of Gastrade, but also, following the successful completion of the relevant competitive procedure, GasLog will be undertaking the conversion of one of our fleet vessels to FSRU, which will subsequently be transferred to Gastrade at the end of 2023. Furthermore, GasLog will be undertaking the operation and maintenance FSRU, ensuring via its expertise the supply of high level of services to the users of the Station. This pluralistic role of our company to this work provides us with a special motive for its success, and we are looking forward to secure a new, contemporary and adequately functioning entrance portal of LNG for Greece and the SE Europe”.

The Chairman of DEPA Commercial S.A, Mr. Ioannis Papadopoulos and the CEO, Mr. Konstantinos Xifaras, made the following joint statement: “The current energy crisis highlights the strategic importance of the investment and the materialization of Alexandroupolis INGS , not just for Greece, but for the wider Europe in general. A new entry gate of energy supply is being created, which will be upgrading dramatically our country’s place in the SE energy map”.

The CEO of Bulgartransgaz EAD, Mr. Vladimir Malinov, also mentioned the importance of the decision, noting that…"The unanimous final investment decision-making by all shareholders is a key moment in proceeding with the actual construction of the liquefied natural gas terminal in Alexandroupolis, Greece." This is what the Executive Director of the Bulgarian gas transmission operator Bulgartransgaz EAD, Mr. Vladimir Malinov said during the General meeting of Shareholders held in Athens. "The participation of the Bulgarian state through Bulgartransgaz EAD, as a shareholder in the project, will contribute to strengthening natural gas market in the region of Southeast Europe. Access to alternative natural gas supplies, also from the United States, Egypt, Qatar and others, to Bulgaria and the neighbouring countries will ensure competitive prices in natural gas market. The growing liquidity through access to liquefied natural gas will accelerate the process of decarbonization in Bulgaria," added Mr. Malinov.

The CEO of DESFA S.A, Mrs. Maria Rita Galli, stated to the shareholders: “Today’s Final Investment Decision for the Alexandroupolis FSRU marks the beginning of an emblematic project that will play a key role in strengthening Greece's energy security and will further establish the country's leading position in regional energy developments. With the implementation of this strategically important project, and its interconnection via DESFA’s NNGTS to the existing and new export routes to Bulgaria and North Macedonia, Greece will further emerge as and energy hub for the area, enhancing gas exports to the markets of Southeastern and Central Europe, increasing diversification of supply sources and substantially contributing to the energy transition of Greece and the wider region. Committed to the development of a critical energy infrastructure, DESFA will contribute with a top-notch know-how and the long experience gained from the operation of the Revithoussa LNG terminal to the optimal design and excellent implementation of the Alexandroupolis FSRU.".

The First phase of the Market Test for Dioriga Gas was successfully completed

The first phase – non-binding – of the Market Test for the reservation of regasification capacity and other LNG products, developed by Motor Oil Group, in Agios Theodoros, was completed with great success, on January 14, 2022.

15 Greek & International companies submitted the expression of interest. The quantities of Liquefied Natural Gas (LNG) that were committed during the non binding phase for all the products offered and for the first five years of operation of FSRU, were more than double the estimates of the Group, proving the importance of this investment.

Dioriga Gas FSRU is a strategic project, of national and international interest, acting as a new import facility delivering natural gas to end consumers in Greece and regional area.

The process of the first – non-binding – phase of the Market Test was carried out under the supervision of the Energy Regulatory Authority (RAE).

The project is moving towards to the next – binding – Market Test phase following any necessary regulatory approval.

NOVATEK and ENN Natural Gas Sign Sales and Purchase Agreement on Long-Term LNG Supply

NOVATEK (“NOVATEK” and/or the “Company”) announced today that its wholly owned subsidiary, NOVATEK Gas & Power Asia Pte. Ltd., and ENN LNG (Singapore) Pte. Ltd., a subsidiary of ENN Natural Gas Co., Ltd. (“ENN Natural Gas”) signed a long-term LNG sale and purchase agreement (“SPA”) for the LNG produced from the Arctic LNG 2 project.

The SPA stipulates the supply of approximately 0.6 million tons of LNG per annum from the Arctic LNG 2 project for a term of 11 years. The LNG will be delivered on a DES basis to ENN’s Zhoushan LNG Receiving Terminal in China.

“We have reached another milestone in successful marketing of NOVATEK’s share of LNG to be produced by our Arctic LNG 2 project,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “This is another LNG SPA for delivery to the Chinese market, which is in line with our LNG strategy to expand sales to the Asia-Pacific region with its growing demand for clean-burning natural gas.

Note:

Arctic LNG 2 envisages constructing three LNG liquefaction trains of 6.6 million tons per annum each for the total LNG capacity of 19.8 million tons, as well as cumulative gas condensate production capacity of 1.6 million tons per annum. The Project will utilize an innovative construction concept of gravity-based structure (GBS) platforms to reduce overall capital cost and minimize the Project’s environmental footprint in the Arctic zone of Russia. As of 31 December 2020, the Utrenneye field’s 2P reserves under PRMS totaled 1,434 billion cubic meters of natural gas and 90 million tons of liquids.

The Project’s participants include: NOVATEK (60%), TotalEnergies (10%), CNPC (10%), CNOOC (10%) and Japan Arctic LNG, a consortium of Mitsui & Co, Ltd. and JOGMEC (10%).

NOVATEK and Zhejiang Energy Sign Sales and Purchase Agreement on Long-Term LNG Supply

PAO NOVATEK (“NOVATEK” and/or the “Company”) announced today that its wholly owned subsidiary, NOVATEK Gas & Power Asia Pte. Ltd., and Zhejiang Energy Gas Group Co., Ltd, a subsidiary of the Zhejiang Provincial Energy Group (“Zhejiang Energy”) signed a long-term LNG sale and purchase agreement (“SPA”) for the LNG produced from the Arctic LNG 2 project.

The SPA follows on from the Heads of Agreement signed by parties on 2 June 2021 during the Saint-Petersburg International Economic Forum, and stipulates the supply of up to one (1) million tons of LNG per annum from the Arctic LNG 2 project for a term of 15 years. The LNG will be delivered on a DES basis to Zhejiang Energy’s LNG terminals in China.

Note:

Arctic LNG 2 envisages constructing three LNG liquefaction trains of 6.6 million tons per annum each for the total LNG capacity of 19.8 million tons, as well as cumulative gas condensate production capacity of 1.6 million tons per annum. The Project will utilize an innovative construction concept of gravity-based structure (GBS) platforms to reduce overall capital cost and minimize the Project’s environmental footprint in the Arctic zone of Russia. As of 31 December 2020, the Utrenneye field’s 2P reserves under PRMS totaled 1,434 billion cubic meters of natural gas and 90 million tons of liquids.

The Project’s participants include: NOVATEK (60%), TotalEnergies (10%), CNPC (10%), CNOOC (10%) and Japan Arctic LNG, a consortium of Mitsui & Co, Ltd. and JOGMEC (10%).

Pavilion Energy Inks Deal to Supply Small-Scale LNG to Hangjiaxin

Pavilion Energy Trading & Supply Pte. Ltd.1(“Pavilion Energy”) and Zhejiang Hangjiaxin Clean Energy Co., Ltd.2 (“Hangjiaxin”) have signed a term deal for the supply of small-scale LNG from Singapore. Under the agreement, up to 0.5 million tonnes per year (mtpa) of LNG will be delivered to Hangjiaxin from 2023.

LNG from Pavilion Energy’s portfolio of natural gas and LNG will be delivered to the 1 mtpa Jiaxing LNG Terminal in Zhejiang, China. The Jiaxing LNG Terminal will be operated by Hangjiaxin, a joint venture between city gas distributors Jiaxing Gas, the largest pipeline natural gas operator in Jiaxing, and Hangzhou Gas, the largest natural gas distributor in Zhejiang province.

“Pavilion Energy is very pleased to strengthen our partnership with Hangjiaxin with the supply of LNG from our portfolio of diverse global sources. We look forward to working closely with each other on the successful implementation of this deal,” said Mr Alan Heng, Interim Group CEO of Pavilion Energy, “Supplying small-scale LNG reinforces our commitment to enhance Singapore’s position as a regional LNG hub and support growing demand for small-scale LNG in Asia.”

Mr Sun Lianqing, CEO of Hangjiaxin Clean Energy said, “Hangjiaxin is pleased to enter this sale and purchase agreement with Pavilion Energy. The execution of this agreement will provide Hangjiaxin’s own terminal, the Jiaxing LNG Terminal, with stable LNG resources, offer Hangjiaxin’s end-users with more clean energy options in the long run, and contribute to Hangjiaxin’s dedication to the reduction of carbon dioxide emissions and achievement of carbon neutrality. We look forward to closer collaborations between the two parties, a smooth performance of the agreement, and multi-dimensional in-depth cooperation in the near future.”

LNG import terminal granted development approval

The South Australian Government has approved the construction of a $250m LNG import terminal to be built in the Outer Harbor of Port Adelaide.

The terminal will become the only LNG import facility in South Australia and the first in the world to be powered by renewable energy.

Venice Energy’s Managing Director, Kym Winter-Dewhirst welcomed the announcement and said the terminal will contribute to South Australia’s transition to a more renewable energy landscape.

“Venice is an integrated energy company and one that aims to bring a range of projects to fruition that enable the growing renewables sector in South Australia – this terminal marks our first project and we are thrilled to receive the green light to proceed,” Mr Winter-Dewhirst said.

“Through this terminal, we will open the state to the international gas market and diversify local gas supplies, especially during peak periods,” he said.

This will prevent forecast domestic gas shortages from impacting both South Australia and Victoria in the coming years and will place downward pressure on gas prices for local customers.

Construction is expected begin mid-next year and will take 12-14 months to complete and commission following financial close.

The first shipment of LNG into the terminal and connection to the South Australian gas network is anticipated around late 2023 to early 2024.

The granting of development approvals opens the way for the company to undertake a feasibility study into making the 680km Seagas pipeline from Victoria to South Australia bi-directional enabling the terminal to supply gas to two states.

Around 350 jobs will be created during construction with a further 50 full time positions once
the terminal is operating.

Venice Energy’s contractors will seek to engage as many local suppliers as possible to stimulate the local economy, with suppliers asked to keep up to date though the company’s website.

Venice Energy would like to thank the community and stakeholders who took the time to participate in its recent community information sessions and looks forward to working within the community to realise the benefits that the terminal will bring.

Hoegh LNG signs FSRU charter for Sao Paulo terminal

Höegh LNG Holdings Ltd. ("Höegh LNG") is pleased to announce that it has completed and signed all documentation for a 10-year FSRU charter with Terminal de Regaseificação de GNL de São Paulo S.A. (“TSRP”). This concludes the agreements for the binding Heads-of-Agreement listed as a subsequent event in the interim results for the quarter ended 30 September 2021.

TSRP is a subsidiary of Compass Gás & Energia, a Cosan Group company, that through its distribution company, Comgás, is Brazil’s largest gas distributor. The Höegh Gannet is assigned to the charter and operations are expected to start in late 2022 or early 2023.