EnBW stepping up activities in the field of liquefied natural gas and starting partnership with Hanseatic Energy Hub in Stade

EnBW is sending a further signal in its consistent efforts to diversify its procurement portfolio. As one of the major German energy companies with more than 5.5 million customers, the company plans to significantly increase the share of liquefied natural gas (LNG) in its portfolio. To this end, EnBW has now signed a corresponding memorandum of understanding (MoU) with Hanseatic Energy Hub. In a first step, EnBW intends to purchase at least three billion cubic meters of natural gas per annum (bcma) via the LNG terminal in Stade and is also holding talks on further forms of cooperation.

The LNG terminal in Stade is set to become a central hub for the import of liquefied natural gas to Germany. The Hanseatic Energy Hub will be ready to use from 2026 with a planned regasification capacity of around 12 billion cubic meters per annum (bcma). Up to 10 percent of Germany's gas requirements can be covered by this import infrastructure. The project will be realized in an existing industrial park and has been devised from the outset as a concept with future flexibility. Besides LNG, for instance, the terminal is also designed for low-carbon energy sources such as bio-LNG and synthetic methane in a first phase. With the growing global supply of climate-neutral energy sources, in a second step the hub is also set to be used to import hydrogen-based fuels, such as ammonia.

“We have expanded our LNG activities step by step in recent years. That's because liquefied natural gas plays a key role in the diversification of our fuels for energy generation: It opens up the possibility of new sources to secure Germany's gas supply in the transitional period of the new energy concept and builds a bridge to a green energy supply,” explains Georg Stamatelopoulos, Board Member for Sustainable Generation Infrastructure at EnBW. “That is why we specifically chose Stade as our import terminal. Technically, commercially and in terms of approval processes, the project is at a high stage of maturity. The zero-emissions concept and the short connection distance to the German gas transmission grid are also particularly relevant from our perspective.” As a zero-emissions terminal, the Stade LNG terminal does not release any carbon dioxide during operation because the heat required for the regasification of the liquefied natural gas is available as process waste heat from the nearby industrial and chemical park.

HEH plans to submit the approval documentation for the LNG terminal and port before Easter 2022. Until 8 April 2022, due to the changed market situation, interested parties will also have the opportunity to express their interest in long-term capacity bookings.

“With the LNG terminal in Stade, we are ready to play a major part in diversifying Germany's energy supply,” explains Johann Killinger, Managing Partner of the Hanseatic Energy Hub. “In EnBW, we not only have a strong anchor client from the start, but also another experienced partner who really understands both the global and local energy markets.”

About HEH

The Hanseatic Energy Hub (HEH) is a terminal for liquefied gases at the industrial site in Stade, Germany. The independent hub diversifies German industry's long-term import needs for affordable energy. In a first development phase, a zero-emission terminal is to be commissioned at end of 2026 at the earliest, with infrastructure also approved for bio-LNG and SNG. The planned regasification capacity is 12 billion m³/a and a feed-in capacity of 21.7 GW. With the development of new carbon-neutral energy sources, the hub will also facilitate the import of hydrogen-based energy carriers. HEH shareholders are the Buss Group from Hamburg, the gas infrastructure operator Fluxys and Partners Group.

Energy Transfer and ENN Sign 20-Year LNG Sale and Purchase Agreements for Lake Charles LNG

Energy Transfer LP , ENN Natural Gas  and ENN Energy Holdings Limited (ENN Energy 2688.HK) today announced that ENN NG and ENN Energy have entered into LNG Sale and Purchase Agreements with Energy Transfer LNG Export, LLC (ET LNG), a subsidiary of Energy Transfer LP, related to its Lake Charles LNG project. 

Under the two SPAs, ET LNG is expected to supply 1.8 million tonnes of LNG to ENN NG, and 0.9 million tonnes of LNG to ENN Energy, per annum on a free-on-board (FOB) basis. The purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge. Both SPAs are for a term of 20 years, and first deliveries are expected to commence as early as 2026. The SPAs will become fully effective upon the satisfaction of the conditions precedent by ET LNG, including reaching FID.

“The signing of these long-term SPAs will further enrich ENN’s LNG resources, expand resource supply channels, and improve ENN’s natural gas supply capacity to meet the rapidly growing natural gas demand in the domestic market,” said Zheng Hongtao, President of ENN NG and Vice Chairman of the Board of Directors of ENN Energy Holdings. “It also provides our customers with better resources and services, ensures natural gas supply nationwide, and contributes to the low-carbon transformation of energy structure.”

“We are very pleased to have ENN as a customer. The execution of these two SPAs represents a significant event in moving the Lake Charles LNG project towards FID. We are experiencing strong demand for long-term offtake contracts for Lake Charles LNG and we are optimistic that we will be in a position to take a positive FID by year end,” said Tom Mason, President of ET LNG. “The Lake Charles LNG project is expected to be financed primarily through infrastructure funds and strategic partners, with Lake Charles LNG retaining an equity stake and operatorship of the liquefaction facility.”

Energy Transfer is one of the largest and most diversified midstream energy companies in North America, with a strategic footprint in all of the major U.S. production basins. The core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. The company owns and operates approximately 120,000 miles of pipelines and associated energy infrastructure across 41 states transporting approximately 30% of the United States’ oil and natural gas.

Lake Charles LNG will be constructed on the existing brownfield regasification facility and will capitalize on four existing LNG storage tanks, two deep water berths and other LNG infrastructure. Lake Charles LNG will also benefit from its direct connection to Energy Transfer’s existing Trunkline pipeline system that in turn provides connections to multiple intrastate and interstate pipelines. These pipelines allow access to multiple natural gas producing basins, including the Haynesville, the Permian and the Marcellus Shale.

ENN NG has an annual LNG distribution capacity of over 10 bcm and runs the first large-scale private LNG terminal in China -- Zhoushan LNG Terminal. Its business layout covers the entire natural gas value chain, including distribution, trading, storage and transportation, and production and engineering.

Relying on industry best practices, ENN NG has built an intelligent operation platform for the natural gas industry – GreatGas.cn, which accelerates the aggregation of demand, resources, reserves, and delivery ecology of the natural gas industry. It also innovates and develops digital intelligence services, and promotes the digital intelligence upgrade of the natural gas industry. In 2021, ENN NG’s total natural gas sales volume was 37.2 bcm, accounting for approximately 10% of China’s total natural gas consumption.

Tellurian’s Driftwood LNG Begins Construction

 

Tellurian Inc. (Tellurian) (NYSE American: TELL) announced today that it has issued a limited notice to proceed to Bechtel Energy Inc. (Bechtel) under its executed Engineering, Procurement and Construction (EPC) contract to begin construction of phase one of the Driftwood LNG terminal, a liquefied natural gas (LNG) export facility near Lake Charles, Louisiana. 

President and CEO Octávio Simões said, “Energy security is a leading concern in many countries today and the United States must do our part to supply LNG to the global market as quickly as possible. Beginning construction now allows Tellurian to deliver upon our robust schedule for first LNG in 2026 while we complete the project financing. We are well advanced in Driftwood LNG’s detailed engineering and major equipment orders, and we have completed all the owners’ projects required for us to turn the site over to Bechtel.”

Craig Albert, Chief Operating Officer of Bechtel, said, “We are very proud and honored to continue our long partnership with Tellurian on the Driftwood LNG project. It is as apparent as ever that the world needs this reliable source of energy from the USA. And we are excited to now shift our focus to the field to begin construction.”

“We are pleased to continue our longstanding partnership with Tellurian as we deliver cleaner and more affordable energy for communities around the world. We are honored to help bring their vision to a reality by commencing the major field work on a project of this magnitude,” added Paul Marsden, President of Bechtel Energy.

Bechtel’s first activities include demolition, civil site preparation and construction of critical foundations, and Baker Hughes will progress manufacturing two of the natural gas turbines required for phase one of the project.

Driftwood LNG is an approximately 27.6 mtpa liquefaction export facility. Phase one will include two LNG plants with an export capacity of up to 11 million tonnes per annum (mtpa). Driftwood has received all the major permits required for construction and operation, has progressed detailed engineering to approximately 30% complete, and has finalized the purchase and lease of approximately 1,200 acres of real estate ensuring an ideal construction site with ample laydown and deepwater access for shipping.

Cheniere Signs EPC Contract with Bechtel for the Corpus Christi Stage III Project and Issues Limited Notice to Proceed to Commence Construction

Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE American: LNG) announced today that its subsidiary, Cheniere Corpus Christi Liquefaction Stage III, LLC (“CCL Stage III”), has entered into a lump sum, turnkey, engineering, procurement and construction (“EPC”) contract with Bechtel for the Corpus Christi Stage III Project. In addition, CCL Stage III has released Bechtel to commence early engineering, procurement and other site work at the Corpus Christi Stage III Project under a limited notice to proceed (“LNTP”).

The Corpus Christi Stage III Project is a fully permitted project consisting of up to seven midscale trains, each with an expected liquefaction capacity of approximately 1.49 million tonnes per annum (“mtpa”) with a total production capacity of more than 10 mtpa. The project is commercially underpinned by long-term agreements with creditworthy counterparties.

“We are pleased to once again partner with Bechtel on the Corpus Christi Stage III Project, and we look forward to building upon the unmatched track record for execution excellence the Cheniere and Bechtel relationship has established while successfully building our LNG platform. The signing of this EPC contract and the issuance of LNTP mark important steps towards a Final Investment Decision on the project, which we expect to occur this summer. We are excited to have the project underway and are focused on the remaining steps required in order to reach FID,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “The Corpus Christi Stage III Project commences as global LNG market fundamentals highlight the criticality of natural gas in the global energy mix. We look forward to providing our customers with reliable and flexible LNG from the Corpus Christi Stage III Project starting in 2025.”

“Cheniere’s award of the EPC contract for the third phase of the LNG development at the Corpus Christi complex is another important step in our long-term partnership to deliver affordable cleaner energy to the world,” said Brendan Bechtel, Chairman and CEO of Bechtel. “The industry leading results we have helped Cheniere achieve over the last nine years are a testament to the power of a ‘One Team’ approach built upon shared goals and trust.”

Black & Veatch Awarded Front End Engineering and Design for Proposed Floating Liquified Natural Gas Project in British Columbia

With its abundant natural gas supply, Canada’s British Columbia is seeing increased investment in liquified natural gas (LNG) infrastructure as the world accelerates low- and zero-carbon energy resources. In advancing this effort, Black & Veatch performed the pre-FEED study and now proceeds with full FEED to deliver the proposed Cedar LNG Project that will produce low‑carbon, cost-effective LNG for the global market.

The planned floating LNG facility in Kitimat is being developed by the Haisla Nation in partnership with Pembina Pipeline Corporation (Pembina), making it the first Indigenous‑majority‑owned LNG export facility in Canada.

Black & Veatch – a global leader in the design, construction and delivery of innovative floating LNG production solutions – has teamed up with its strategic partner Samsung Heavy Industries (SHI) to deliver an integrated solution for the floating LNG process unit. Black & Veatch is responsible for the topside process plant, which includes its patented PRICO® liquefaction technology. SHI is responsible for the hull and LNG containment system, along with integration of topsides while also fabricating topsides modules designed by Black & Veatch.

“In moving to the FEED phase with Black & Veatch and SHI, we are making important progress towards achieving our goal of delivering a world-class, low-carbon project in partnership with the Haisla Nation,” said Scott Burrows, Pembina’s Interim President and Chief Executive Officer (CEO). “Black & Veatch will provide an innovative design philosophy, reinforcing our commitment to ensuring the Cedar LNG Project benefits from the most advanced technology that minimizes our environmental footprint, while delivering significant, long-term benefits for the Haisla Nation and the region.”

The facility will be interconnected to the existing BC Hydro transmission system, making it one of the world’s lowest carbon-intense LNG facilities. Once operational, the project will result in approximately three million tons of liquefaction capacity per year.

“Playing a role in developing this critical floating LNG project for Pembina and the Haisla Nation is a natural fit for Black & Veatch,” said Mario Azar, president of Black & Veatch’s Energy and Process Industries global market sector. “The collaboration with Samsung builds on our years of experience in leveraging floating LNG innovation to help nations and industries around the world diversify their energy portfolio.”

FEED activities are underway and will continue through this year. Subject to regulatory and environmental approvals, the project expects to be completed during the second half of 2027. 

Venture global LNG and JERA announce departure of inaugural commissioning cargo from Calcasieu Pass

Venture Global LNG and JERA Global Markets Pte. Ltd., a trading subsidiary of JERA Co., Inc., announced the successful loading and departure of the first cargo of liquefied natural gas (LNG) produced at the Calcasieu Pass LNG export facility in Cameron, LA. The LNG was loaded on the Yiannis, chartered by JERA Global Markets. Calcasieu Pass now holds the global record for the fastest large-scale greenfield LNG facility to ever be built, moving from FID to LNG production in just 29 months. It is also one of the first greenfield LNG export projects to ever be constructed in the United States.

“Venture Global is honored to partner with JERA, one of the world’s largest buyers of LNG, on the inaugural commissioning cargo from Calcasieu Pass,” said Venture Global CEO Mike Sabel. “This historic and proud moment for our company represents the culmination of many years of relentless efforts by our team to innovate, design, construct and now deliver low-cost, clean LNG to our customers. Venture Global has successfully pioneered a new way of developing LNG projects that will result in the supply of low-cost, abundant, and affordable energy to people around the world, while also driving fuel switching from coal to natural gas. We want to thank our customers, financing partners, and state, local and federal stakeholders whose invaluable support helped get us to this moment.”

“We are delighted to receive the first cargo from the Calcasieu Pass LNG project, which has great significance for easing the supply-demand balance of LNG amid the tight global market situation,” said JERA Global Markets CEO Kazunori Kasai. “Based on a supply agreement with Venture Global Calcasieu Pass, LLC., JERA Global Markets is pleased to support Venture Global and receive LNG cargos from this innovative project, which provides the industry with an exciting new model for LNG liquefaction.”

About Venture Global LNG

Venture Global is a long-term, low-cost provider of U.S. LNG sourced from resource rich North American natural gas basins. Venture Global’s first facility, Calcasieu Pass, commenced producing LNG in January 2022. The company is also constructing or developing an additional 60 MTPA of production capacity in Louisiana to provide clean, affordable energy to the world. The company is developing Carbon Capture and Sequestration (CCS) projects at each of its LNG facilities.

About JERA Global Markets

JERA Global Markets (JERAGM) is a leading utility-backed energy trader specialising in LNG, Coal and Freight with a platform to trade across all key markets (North America, Europe, Middle East, Africa and Asia). JERAGM is a joint venture between majority shareholder JERA Co., Inc. (JERA) and EDF Trading.

JERA is one of the world’s largest buyers of LNG and supplier of 30% of the electricity in Japan. Looking toward 2025, JERA focuses primarily on energy solutions in two areas: large-scale renewable energy centered on offshore wind power generation and LNG value chains. To further drive existing initiatives and clarify its long-term vision, JERA established its “JERA Zero CO2 Emissions 2050” objective in October 2020 based on the development of renewable energy and zero-emission thermal power generation using ammonia and hydrogen. Further information may be found at www.jera.co.jp/english/