Wood will perform owner’s engineering services for the Cameron LNG expansion project, a liquefied natural gas (LNG) production and export facility located in Louisiana, U.S.
The contract, awarded by Cameron LNG, will cover activities relating to the development of a fourth LNG train, with a planned production capacity of approximately 6.75 million metric tons per annum (Mtpa), and improved production from the first three trains which currently deliver 12 Mtpa of LNG export capacity.
John Day, Senior Vice President of Conventional Energy, Americas, at Wood, said: “LNG has come into sharp focus as countries look to ensure energy security, particularly with the disruption to European energy supplies. The U.S. is positioned to become the largest LNG producer in the world and projects such as this one will enable the rapid and much-needed increase in the supply of cleaner natural gas.
“We are proud to continue our involvement with such a strategic project in terms of increasing the supply of cleaner, reliable, and more affordable energy to the world. Our knowledge of the facility, combined with our wealth of gas monetization expertise and experience in delivering world-class LNG projects, will enable us to successfully execute the scope entrusted to us.”
Located about 25 kilometers north of the Gulf of Mexico, the Cameron LNG facility was initially envisaged as a regasification terminal before evolving into a natural gas liquefaction export facility.
Thursday 30 June 2022
Thursday 23 June 2022
TotalEnergies the First Company Selected to Partner with QatarEnergy on the Giant North Field East LNG Project
Following the request for proposals in relation to partner selection for the North Field East (NFE) liquified natural gas project, TotalEnergies has been awarded a 25% interest in a new joint venture (JV), alongside national company QatarEnergy (75%). The new JV will hold a 25% interest in the 32 million tons per annum (Mtpa) NFE project, equivalent to one 8 Mtpa LNG train.
The World's Largest LNG Project
The NFE, launched by QatarEnergy in summer 2019, is currently under construction. It is intended to increase Qatar's total LNG export capacity from 77 Mtpa to around 110 Mtpa by 2027, thanks to the construction of four 8 Mtpa trains. The upstream part of the project will develop the southeastern area of the field with 8 platforms, 80 wells and gas pipelines to the onshore plant.
A Low-Carbon LNG Project
Paying special attention to environmental and climate challenges, the project will apply the highest standards to reduce emissions. The native CO2 from natural gas production will be captured and sequestrated in a saline aquifer. In addition, the facilities will be connected to the country's electrical grid, which will supply a growing portion of renewable electricity – in line with Qatar’s climate ambitions – thanks to the giant Al Kharsaah solar power plant, which is scheduled to come on stream in 2022, and in which TotalEnergies is a partner.
At the award ceremony, Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, said: "This is another historic day for TotalEnergies in Qatar, where we have been present for more than 80 years. Qatar has huge natural gas resources that it intends to develop further to increase the production of the least expensive, the most environmentally respectful and the best located LNG. TotalEnergies was present at the beginning of its LNG industry in Qatar some 30 years ago through its interest in Qatargas 1, and then Qatargas 2 in 2005. We are very proud that Qatar has chosen again TotalEnergies, this time as the first partner for its new major phase of LNG expansion. It is a clear testimony of the profound trust that the teams have developed together, and it will extend our strategic partnership with Qatar and QatarEnergy for more than 25 years. It is good news for the fight against Climate Change as gas and LNG are key to support the energy transition, and notably the shift from coal to gas in many countries. With its low costs and low greenhouse gas emissions – thanks to carbon capture and storage – the North Field expansion will be an exemplary and major contribution to our low-carbon LNG growth strategy. This new partnership will indeed enable us to reinforce our global LNG portfolio and, together with Qatar, it will support our ability to contribute to Europe energy security."
In his remarks during the ceremony, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: “This is a historic landmark for Qatar’s energy industry and for the world’s largest LNG development. The North Field East project is an iconic achievement that will not only ensure the optimal utilization of Qatar’s natural resources but will also provide the world with the cleaner and more reliable energy it needs. Today, QatarEnergy is standing at the threshold of a new era with a stronger commitment to energy transition and to the safe, reliable, and trustworthy access to cleaner energy. We will continue to power lives in every corner of the world for a better tomorrow for all. This is our commitment. We look forward to working closely with TotalEnergies, who are a long-term strategic partner that we have always trusted to support the efficient and safe delivery of our projects. I would like to thank all the team members in QatarEnergy and TotalEnergies for the excellent collaboration and for all their hard work that has led to this important moment. I also would like to express thanks and appreciation to the project’s team and to the Qatargas organization for continuing to deliver the NFE project, and with an outstanding safety record. We are forever grateful to the wise leadership of His Highness the Amir Sheikh Tamim bin Hamad Al Thani and for His unlimited support of Qatar’s energy sector.”
The World's Largest LNG Project
The NFE, launched by QatarEnergy in summer 2019, is currently under construction. It is intended to increase Qatar's total LNG export capacity from 77 Mtpa to around 110 Mtpa by 2027, thanks to the construction of four 8 Mtpa trains. The upstream part of the project will develop the southeastern area of the field with 8 platforms, 80 wells and gas pipelines to the onshore plant.
A Low-Carbon LNG Project
Paying special attention to environmental and climate challenges, the project will apply the highest standards to reduce emissions. The native CO2 from natural gas production will be captured and sequestrated in a saline aquifer. In addition, the facilities will be connected to the country's electrical grid, which will supply a growing portion of renewable electricity – in line with Qatar’s climate ambitions – thanks to the giant Al Kharsaah solar power plant, which is scheduled to come on stream in 2022, and in which TotalEnergies is a partner.
At the award ceremony, Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, said: "This is another historic day for TotalEnergies in Qatar, where we have been present for more than 80 years. Qatar has huge natural gas resources that it intends to develop further to increase the production of the least expensive, the most environmentally respectful and the best located LNG. TotalEnergies was present at the beginning of its LNG industry in Qatar some 30 years ago through its interest in Qatargas 1, and then Qatargas 2 in 2005. We are very proud that Qatar has chosen again TotalEnergies, this time as the first partner for its new major phase of LNG expansion. It is a clear testimony of the profound trust that the teams have developed together, and it will extend our strategic partnership with Qatar and QatarEnergy for more than 25 years. It is good news for the fight against Climate Change as gas and LNG are key to support the energy transition, and notably the shift from coal to gas in many countries. With its low costs and low greenhouse gas emissions – thanks to carbon capture and storage – the North Field expansion will be an exemplary and major contribution to our low-carbon LNG growth strategy. This new partnership will indeed enable us to reinforce our global LNG portfolio and, together with Qatar, it will support our ability to contribute to Europe energy security."
In his remarks during the ceremony, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: “This is a historic landmark for Qatar’s energy industry and for the world’s largest LNG development. The North Field East project is an iconic achievement that will not only ensure the optimal utilization of Qatar’s natural resources but will also provide the world with the cleaner and more reliable energy it needs. Today, QatarEnergy is standing at the threshold of a new era with a stronger commitment to energy transition and to the safe, reliable, and trustworthy access to cleaner energy. We will continue to power lives in every corner of the world for a better tomorrow for all. This is our commitment. We look forward to working closely with TotalEnergies, who are a long-term strategic partner that we have always trusted to support the efficient and safe delivery of our projects. I would like to thank all the team members in QatarEnergy and TotalEnergies for the excellent collaboration and for all their hard work that has led to this important moment. I also would like to express thanks and appreciation to the project’s team and to the Qatargas organization for continuing to deliver the NFE project, and with an outstanding safety record. We are forever grateful to the wise leadership of His Highness the Amir Sheikh Tamim bin Hamad Al Thani and for His unlimited support of Qatar’s energy sector.”
ExxonMobil and QatarEnergy to expand LNG production with North Field East agreement
ExxonMobil and QatarEnergy today announced they have signed an agreement to further develop Qatar’s North Field East project, which will expand Qatar’s annual LNG capacity from 77 million tons to 110 million tons by 2026. The deal was announced at QatarEnergy’s headquarters in Doha.
LNG provides cleaner energy than coal and can be transported to global marketsProduction to increase from 77 million tons to 110 million tons per year
“We are collaborating with QatarEnergy on North Field East to accelerate the production of secure, affordable and cleaner energy our world needs,” said Darren Woods, chairman and chief executive officer for ExxonMobil. “ExxonMobil has a long history of working in Qatar, responsibly producing energy, and we look forward to continuing our relationship for the benefit of all of our stakeholders.”
“Today, we are signing a partnership agreement with ExxonMobil, our strategic and long-term partner, with whom we have enjoyed successful and fruitful relations in Qatar and across the globe. This is primarily due to the mutual trust and confidence between both parties, and to the State of Qatar’s safe and stable investment climate,” said His Excellency Mr. Saad Sherida Al-Kaabi, president and chief executive officer of QatarEnergy. “We look forward to working closely with ExxonMobil to implement this world-scale project, and to live up to our commitment to power lives with cleaner energy in every corner of the world for a better tomorrow for all.”
With North Field East, ExxonMobil’s participation in Qatar LNG volumes is expected to increase total capacity from 52 to 60 million tons per year. Under the terms of the agreement, QatarEnergy and ExxonMobil will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest with ExxonMobil holding the remaining 25% interest. The JV will own 25% of the entire North Field East project, including four LNG trains with a combined nameplate capacity of 32 million tons per year.
The expansion of North Field East and increased LNG export capacity is one of Qatar’s key energy objectives. QatarEnergy is the operator and commenced the North Field East project in 2019. First LNG from North Field East is expected in 2026.
ExxonMobil has had a presence in Qatar since 1955 and long supported the development of the country’s LNG industry and energy sector.
Terms of the agreement are confidential.
Eni enters the world’s largest LNG project in Qatar
The Minister of State for Energy Affairs, President and CEO of QatarEnergy, Saad Sherida Al-Kaabi, and Eni CEO, Claudio Descalzi, signed the partnership agreement for the creation of the new Joint Venture company during an official ceremony today. QatarEnergy will hold a 75% interest while Eni the remaining 25% interest. The JV will hold 12,5% interest in the entire NFE project, including the 4 mega LNG trains with a combined capacity of 32 MTPA.
The NFE project will expand Qatar’s LNG export capacity from the current 77 million tons per annum (MTPA) to 110 MTPA. A $28.75 billion investment, NFE is expected to start production before the end of 2025 and will deploy state of the art technologies to minimize overall carbon footprint, including carbon capture and sequestration.
The agreement marks the completion of a competitive process started in 2019 and has a duration of 27 years. It is a strategic move for Eni, which expands Eni’s presence in the Middle East and gains access to a world leading LNG producer, detaining among the largest natural gas reserves in the world. It is also a significant milestone in the Company’s diversification strategy, adding a cleaner and reliable energy source to its portfolio.
In his remarks during the ceremony, Eni CEO Descalzi said: “We are honored and delighted for having been selected as partner in the North Field East expansion project. As a newcomer joining this world leading LNG project, we feel the privilege and the responsibility of being a strategic partner of choice for the State of Qatar. This agreement is a significant milestone for Eni and fits our objective to diversify into cleaner and more reliable energy sources in line with our decarbonization strategy. Eni looks forward to working with QatarEnergy on this project to positively contribute to increasing worldwide gas security of supply.”
The NFE project will expand Qatar’s LNG export capacity from the current 77 million tons per annum (MTPA) to 110 MTPA. A $28.75 billion investment, NFE is expected to start production before the end of 2025 and will deploy state of the art technologies to minimize overall carbon footprint, including carbon capture and sequestration.
The agreement marks the completion of a competitive process started in 2019 and has a duration of 27 years. It is a strategic move for Eni, which expands Eni’s presence in the Middle East and gains access to a world leading LNG producer, detaining among the largest natural gas reserves in the world. It is also a significant milestone in the Company’s diversification strategy, adding a cleaner and reliable energy source to its portfolio.
In his remarks during the ceremony, Eni CEO Descalzi said: “We are honored and delighted for having been selected as partner in the North Field East expansion project. As a newcomer joining this world leading LNG project, we feel the privilege and the responsibility of being a strategic partner of choice for the State of Qatar. This agreement is a significant milestone for Eni and fits our objective to diversify into cleaner and more reliable energy sources in line with our decarbonization strategy. Eni looks forward to working with QatarEnergy on this project to positively contribute to increasing worldwide gas security of supply.”
Wednesday 22 June 2022
Venture Global and EnBW announce LNG sales and purchase agreements
Today, Venture Global LNG and EnBW announced the execution of two long-term Sales and Purchase Agreements (SPAs) for 1.5 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from Venture Global’s Plaquemines and CP2 facilities, starting 2026. According to the agreement, EnBW will purchase 0.75 MTPA from Plaquemines LNG and 0.75 MTPA from CP2 LNG for 20 years. EnBW becomes the next European customer of Venture Global, who already announced agreements with PGNiG, BP, Shell, Repsol, Edison and GALP.
“Venture Global is thrilled to welcome EnBW as a long-term customer for both our Plaquemines and CP2 LNG facilities,” said Mike Sabel, CEO of Venture Global LNG. “This is the first direct binding offtake agreement for long-term US LNG signed by a German company, an important step that manifests Germany’s strategy to diversify its energy mix. Our company is honored to become a major provider of LNG to Germany, providing security of supply on a competitive, long-term basis.”
“EnBW looks forward to a long-term LNG partnership with Venture Global”, says Georg Stamatelopoulos, Chief Operating Officer Generation & Trading at EnBW. “We have expanded our LNG activities step by step in the recent years. Liquefied natural gas plays a key role in the diversification of our fuels for electricity and heat generation: It opens up the possibility of new sources to secure Germany's gas supply in the current energy transition phase and builds a bridge to a green energy supply.”
“Venture Global is thrilled to welcome EnBW as a long-term customer for both our Plaquemines and CP2 LNG facilities,” said Mike Sabel, CEO of Venture Global LNG. “This is the first direct binding offtake agreement for long-term US LNG signed by a German company, an important step that manifests Germany’s strategy to diversify its energy mix. Our company is honored to become a major provider of LNG to Germany, providing security of supply on a competitive, long-term basis.”
“EnBW looks forward to a long-term LNG partnership with Venture Global”, says Georg Stamatelopoulos, Chief Operating Officer Generation & Trading at EnBW. “We have expanded our LNG activities step by step in the recent years. Liquefied natural gas plays a key role in the diversification of our fuels for electricity and heat generation: It opens up the possibility of new sources to secure Germany's gas supply in the current energy transition phase and builds a bridge to a green energy supply.”
Sempra Infrastructure and INEOS Energy Trading Sign Heads of Agreement for LNG Supply
Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), and INEOS Energy Trading Ltd., a subsidiary of INEOS, a global chemical products manufacturer, today announced they have entered into a heads of agreement (HOA) for the long-term supply of liquefied natural gas (LNG) from Sempra Infrastructure's Gulf Coast LNG portfolio of projects under development in North America.
The HOA provides the framework for the negotiation and finalization of a definitive 20-year LNG sale and purchase agreement for approximately 1.4 million tonnes per annum (Mtpa) of LNG delivered free-on-board from the proposed Port Arthur LNG project or Cameron LNG Phase 2 project.
"INEOS is one of Europe's largest end-users of natural gas and we look forward to building a long-term relationship with a company that shares our vision of increasing the world's energy security while simultaneously advancing lower-carbon energy sources," said Justin Bird, CEO of Sempra Infrastructure. "This HOA demonstrates our ongoing momentum in advancing our next generation of LNG export facilities with an eye toward supplying U.S. natural gas to some of the world's leading energy and manufacturing companies."
"We are delighted to begin a strategic relationship with Sempra Infrastructure bringing significant expertise in construction and operation of LNG facilities. This agreement is an important part of our strategy as we build a network of liquefaction, shipping and regasification capacity to deliver affordable, cleaner and reliable energy to our businesses and customers globally," said David Bucknall, CEO of INEOS Energy.
Sempra Infrastructure is working to expand its Gulf Coast LNG asset base through the simultaneous development of the Port Arthur LNG project in Jefferson County, Texas, and the proposed expansion of the Cameron LNG facility in Hackberry, Louisiana. INEOS joins the company's growing portfolio of global energy and manufacturing companies that have recently executed HOAs for potential long-term offtake from these projects.
In addition to the 1.4 Mtpa HOA with INEOS Energy Trading, last month Sempra Infrastructure announced an HOA with the Polish Oil & Gas Company (PGNiG) for 2 Mtpa from Cameron LNG Phase 2 and 1 Mtpa from Port Arthur LNG, with an option for PGNiG to reallocate the Cameron LNG Phase 2 volumes to Port Arthur LNG. Sempra Infrastructure also recently announced an HOA with RWE Supply and Trading for 2.25 Mtpa from the Port Arthur LNG project.
The Port Arthur LNG Phase 1 project has received all major permits and is anticipated to include up to two natural gas liquefaction trains capable of producing, under optimal conditions, approximately 13.5 Mtpa of LNG. In addition, the proposed Cameron LNG Phase 2 project, expected to include a single LNG train with a maximum production capacity of 6.75 Mtpa of LNG, continues to reach a number of important commercial and permitting milestones, including the launch of a competitive Front-End Engineering Design (FEED) process.
The referenced HOAs are preliminary non-binding arrangements, and the development of the Port Arthur LNG and Cameron LNG Phase 2 projects remain subject to a number of risks and uncertainties, including reaching definitive agreements, securing all necessary permits, signing engineering and construction contracts, obtaining financing and incentives, and reaching a final investment decision.
The HOA provides the framework for the negotiation and finalization of a definitive 20-year LNG sale and purchase agreement for approximately 1.4 million tonnes per annum (Mtpa) of LNG delivered free-on-board from the proposed Port Arthur LNG project or Cameron LNG Phase 2 project.
"INEOS is one of Europe's largest end-users of natural gas and we look forward to building a long-term relationship with a company that shares our vision of increasing the world's energy security while simultaneously advancing lower-carbon energy sources," said Justin Bird, CEO of Sempra Infrastructure. "This HOA demonstrates our ongoing momentum in advancing our next generation of LNG export facilities with an eye toward supplying U.S. natural gas to some of the world's leading energy and manufacturing companies."
"We are delighted to begin a strategic relationship with Sempra Infrastructure bringing significant expertise in construction and operation of LNG facilities. This agreement is an important part of our strategy as we build a network of liquefaction, shipping and regasification capacity to deliver affordable, cleaner and reliable energy to our businesses and customers globally," said David Bucknall, CEO of INEOS Energy.
Sempra Infrastructure is working to expand its Gulf Coast LNG asset base through the simultaneous development of the Port Arthur LNG project in Jefferson County, Texas, and the proposed expansion of the Cameron LNG facility in Hackberry, Louisiana. INEOS joins the company's growing portfolio of global energy and manufacturing companies that have recently executed HOAs for potential long-term offtake from these projects.
In addition to the 1.4 Mtpa HOA with INEOS Energy Trading, last month Sempra Infrastructure announced an HOA with the Polish Oil & Gas Company (PGNiG) for 2 Mtpa from Cameron LNG Phase 2 and 1 Mtpa from Port Arthur LNG, with an option for PGNiG to reallocate the Cameron LNG Phase 2 volumes to Port Arthur LNG. Sempra Infrastructure also recently announced an HOA with RWE Supply and Trading for 2.25 Mtpa from the Port Arthur LNG project.
The Port Arthur LNG Phase 1 project has received all major permits and is anticipated to include up to two natural gas liquefaction trains capable of producing, under optimal conditions, approximately 13.5 Mtpa of LNG. In addition, the proposed Cameron LNG Phase 2 project, expected to include a single LNG train with a maximum production capacity of 6.75 Mtpa of LNG, continues to reach a number of important commercial and permitting milestones, including the launch of a competitive Front-End Engineering Design (FEED) process.
The referenced HOAs are preliminary non-binding arrangements, and the development of the Port Arthur LNG and Cameron LNG Phase 2 projects remain subject to a number of risks and uncertainties, including reaching definitive agreements, securing all necessary permits, signing engineering and construction contracts, obtaining financing and incentives, and reaching a final investment decision.
Cheniere Announces Positive Final Investment Decision on the Corpus Christi Stage 3 Liquefaction Project
Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE American: LNG) announced today that its Board of Directors has made a positive Financial Investment Decision (“FID”) with respect to the 10+ million tonnes per annum of LNG Corpus Christi Stage 3 Liquefaction Project (“CCL Stage 3”) and has issued full notice to proceed to Bechtel Energy Inc. (“Bechtel”) to continue construction on CCL Stage 3, which began earlier this year under limited notice to proceed.
“Reaching FID on Corpus Christi Stage 3 represents an important milestone for Cheniere as we move forward on this significant growth project, which will strengthen our market-leading LNG infrastructure platform, provide much-needed volumes to the global LNG market by the end of 2025, and create long-term value for our stakeholders,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “I would like to recognize the Cheniere team, our financial partners, our EPC partner Bechtel and our long-term customers for their demonstrated teamwork, commitment and execution, all of which were critical elements in the successful commercialization and financing of CCL Stage 3. CCL Stage 3 is supported by a truly global portfolio of long-term customers and reflects the call for investment in natural gas infrastructure around the world to support environmental priorities and long-term energy security.”
On June 15, 2022, Cheniere’s wholly-owned subsidiary, Cheniere Corpus Christi Holdings, LLC (“CCH”) closed on an amended and restated approximately $4 billion Senior Secured Term Loan due 2029 (“CCH 2029 Term Loan”), as well as an amended, extended and upsized $1.5 billion Working Capital Facility due 2027. In conjunction with the financing, Cheniere contributed its wholly-owned equity interests in Corpus Christi Liquefaction Stage III, LLC (“CCL Stage III, LLC”) to CCH, and merged CCL Stage III, LLC into Corpus Christi Liquefaction, LLC (“CCL”), a subsidiary of CCH, with CCL continuing as the surviving company. Borrowings under the CCH 2029 Term Loan are being used to fund approximately half of the total expected cost to develop, construct, and place into service CCL Stage 3, the associated pipeline expansion and other infrastructure at or near the project, and for related business purposes. The remaining costs are expected to be funded from Cheniere.
“Reaching FID on Corpus Christi Stage 3 represents an important milestone for Cheniere as we move forward on this significant growth project, which will strengthen our market-leading LNG infrastructure platform, provide much-needed volumes to the global LNG market by the end of 2025, and create long-term value for our stakeholders,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “I would like to recognize the Cheniere team, our financial partners, our EPC partner Bechtel and our long-term customers for their demonstrated teamwork, commitment and execution, all of which were critical elements in the successful commercialization and financing of CCL Stage 3. CCL Stage 3 is supported by a truly global portfolio of long-term customers and reflects the call for investment in natural gas infrastructure around the world to support environmental priorities and long-term energy security.”
On June 15, 2022, Cheniere’s wholly-owned subsidiary, Cheniere Corpus Christi Holdings, LLC (“CCH”) closed on an amended and restated approximately $4 billion Senior Secured Term Loan due 2029 (“CCH 2029 Term Loan”), as well as an amended, extended and upsized $1.5 billion Working Capital Facility due 2027. In conjunction with the financing, Cheniere contributed its wholly-owned equity interests in Corpus Christi Liquefaction Stage III, LLC (“CCL Stage III, LLC”) to CCH, and merged CCL Stage III, LLC into Corpus Christi Liquefaction, LLC (“CCL”), a subsidiary of CCH, with CCL continuing as the surviving company. Borrowings under the CCH 2029 Term Loan are being used to fund approximately half of the total expected cost to develop, construct, and place into service CCL Stage 3, the associated pipeline expansion and other infrastructure at or near the project, and for related business purposes. The remaining costs are expected to be funded from Cheniere.
Tuesday 21 June 2022
Coral South Introduces Hydrocarbons to FLNG Offshore Mozambique
Eni, as Upstream Delegated Operator of Area 4 on behalf of its partners ExxonMobil, CNPC, GALP, KOGAS and ENH, announces that the Coral South Project has safely achieved the introduction of hydrocarbons to the Coral Sul Floating Liquefied Natural Gas (FLNG) plant from the Coral South reservoir offshore Mozambique.
Following the introduction of gas in the plant, Coral Sul FLNG will now be ready to achieve its first LNG cargo in the second half of 2022, adding Mozambique to the LNG-producing countries.
Hydrocarbons introduction comes after the safe and timely conclusion of the offshore commissioning activities. The FLNG arrived at the final operating site offshore Mozambique in early January 2022; mooring and connection to six underwater production wells were finalized in March and May 2022, respectively.
The Coral South project achieved Final Investment Decision in 2017; FLNG fabrication and construction activities started in September 2018 (Hull first steel cut), and were completed in 38 months as planned, despite the Covid-19 pandemic, with a FLNG Sail Away, from South Korea to Mozambique, on November 2021. While performing the construction activities in Korea, several significant activities were undertaken in Mozambique, with support from the Mozambican authorities, including the ultra-deep waters (2,000m wd) Drilling and Completion and Offshore Installation campaign that involved the highest technological and operational skills.
Coral-Sul FLNG has been implemented with an energy optimization approach, integrated in the design via a systematic analysis of energy efficiency improvements. These include among others, zero flaring during normal operations, use of thermal efficient aero-derivative gas turbines for refrigerant compressors and generation, use of Dry Low NOx technology to reduce NOx emission and waste heat recovery systems for the process.
About Coral Sul FLNG
The Coral Sul FLNG is 432 meters long and 66 meters wide, weights around 220,000 tons and has the capacity to accommodate up to 350 people in its eight-story Living Quarter module. The facility is located at a water-depth of around 2,000 meters and is kept in position by means of 20 mooring lines that totally weight 9,000 tons.
Coral Sul FLNG has a gas liquefaction capacity of 3.4 million tons per year (MTPA) and will put in production 450 billion cubic meters of gas from the giant Coral reservoir, located in the offshore Rovuma Basin. Coral-Sul FLNG is the first floating LNG facility ever deployed in the deep waters of the African continent.
Following the introduction of gas in the plant, Coral Sul FLNG will now be ready to achieve its first LNG cargo in the second half of 2022, adding Mozambique to the LNG-producing countries.
Hydrocarbons introduction comes after the safe and timely conclusion of the offshore commissioning activities. The FLNG arrived at the final operating site offshore Mozambique in early January 2022; mooring and connection to six underwater production wells were finalized in March and May 2022, respectively.
The Coral South project achieved Final Investment Decision in 2017; FLNG fabrication and construction activities started in September 2018 (Hull first steel cut), and were completed in 38 months as planned, despite the Covid-19 pandemic, with a FLNG Sail Away, from South Korea to Mozambique, on November 2021. While performing the construction activities in Korea, several significant activities were undertaken in Mozambique, with support from the Mozambican authorities, including the ultra-deep waters (2,000m wd) Drilling and Completion and Offshore Installation campaign that involved the highest technological and operational skills.
Coral-Sul FLNG has been implemented with an energy optimization approach, integrated in the design via a systematic analysis of energy efficiency improvements. These include among others, zero flaring during normal operations, use of thermal efficient aero-derivative gas turbines for refrigerant compressors and generation, use of Dry Low NOx technology to reduce NOx emission and waste heat recovery systems for the process.
About Coral Sul FLNG
The Coral Sul FLNG is 432 meters long and 66 meters wide, weights around 220,000 tons and has the capacity to accommodate up to 350 people in its eight-story Living Quarter module. The facility is located at a water-depth of around 2,000 meters and is kept in position by means of 20 mooring lines that totally weight 9,000 tons.
Coral Sul FLNG has a gas liquefaction capacity of 3.4 million tons per year (MTPA) and will put in production 450 billion cubic meters of gas from the giant Coral reservoir, located in the offshore Rovuma Basin. Coral-Sul FLNG is the first floating LNG facility ever deployed in the deep waters of the African continent.
Sempra Infrastructure and RWE Sign Heads of Agreement for U.S. LNG Supply
Sempra Infrastructure , a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), today announced it has entered into a heads of agreement (HOA) with RWE Supply & Trading, a subsidiary of RWE (RWE: AG), for the purchase of approximately 2.25 million tonnes per annum (Mtpa) of liquefied natural gas (LNG). The LNG is to be supplied on a long-term, free-on-board basis from the Port Arthur LNG Phase 1 project under development in Jefferson County, Texas.
"Sempra Infrastructure's LNG projects are uniquely positioned to help provide U.S. LNG to support the energy security of America's allies in Europe, while also accelerating the transition to a lower carbon future. We are excited about the opportunity to work with one of Germany's top power producers to achieve these dual goals," said Justin Bird, CEO of Sempra Infrastructure. "We see opportunities to work together with RWE across the energy transition, including LNG, hydrogen and renewables. With today's agreement, we make significant progress toward the development of our Port Arthur LNG project and remain committed to lowering greenhouse gas (GHG) emissions across the LNG value chain through the use of new technologies and the improvement of key processes."
Andree Stracke, CEO of RWE Supply & Trading said, "As RWE, we are very pleased to join forces with Sempra Infrastructure. Our partnership can contribute largely to securing significant LNG volumes for the RWE portfolio on a long-term basis while building the basis for supplying low carbon gas in the future."
The HOA contemplates the negotiation and finalization of a definitive 15-year LNG sale and purchase agreement for 2.25 Mtpa to be delivered from the Port Arthur LNG project. Additionally, Sempra Infrastructure and RWE have agreed to work toward a broad framework for the reduction, mitigation, and reporting of GHG emissions associated with deliveries of LNG from the Port Arthur LNG project, including addressing the use of responsibly sourced natural gas as part of the project's feed gas supply and renewable energy as part of the project power mix.
Phase 1 of the Port Arthur LNG project is fully permitted and is expected to include two liquefaction trains and LNG storage tanks, as well as associated facilities capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG.
The referenced HOAs are preliminary, non-binding arrangements, and the development of the Port Arthur LNG project remains subject to a number of risks and uncertainties, including, among others, reaching definitive agreements, maintaining all necessary permits, finalizing engineering and construction arrangements, obtaining financing and incentives, and reaching a final investment decision.
Advancing Lower Carbon LNG with Global Partners
Sempra Infrastructure is one of the top renewable energy producers in Mexico and is currently exceeding its goal of operating its existing LNG infrastructure at a GHG emissions intensity that is 20% below its 2020 baseline, having achieved a 28% reduction in 2021. In addition to continuing to reduce emissions through operational excellence, Sempra Infrastructure is actively developing lower emissions technologies for existing and future infrastructure assets.
Sempra Infrastructure has entered into a memorandum of understanding with Entergy Louisiana, a subsidiary of Entergy Corporation (NYSE: ETR), to develop options to accelerate the deployment of cost-effective renewable energy to power its infrastructure located in vicinity of the Gulf Coast. Additionally, Sempra Infrastructure is developing Hackberry Carbon Sequestration, a proposed carbon sequestration facility located in Southwest Louisiana expected to have the potential to sequester up to 2 Mtpa of carbon dioxide from LNG and other industrial facilities in the region and is developing opportunities to co-locate low-carbon hydrogen production at or near existing Sempra Infrastructure facilities.
In addition to lowering emissions at its own facilities, Sempra Infrastructure is working with other companies to reduce GHG emissions across the U.S. natural gas value chain, consistent with Sempra's aim to have net-zero GHG emissions by 2050. Sempra is a founding member of Veritas, a GTI Energy Differentiated Gas Measurement and Verification Initiative, supporting Sempra Infrastructure and other customers' desires for responsibly sourced natural gas that is produced and transported using proven technologies that minimize GHG emissions. Sempra Infrastructure is also a sponsor of The Collaboratory to Advance Methane Science, a research collaboration to advance technological solutions to enable methane emission reductions.
"Sempra Infrastructure's LNG projects are uniquely positioned to help provide U.S. LNG to support the energy security of America's allies in Europe, while also accelerating the transition to a lower carbon future. We are excited about the opportunity to work with one of Germany's top power producers to achieve these dual goals," said Justin Bird, CEO of Sempra Infrastructure. "We see opportunities to work together with RWE across the energy transition, including LNG, hydrogen and renewables. With today's agreement, we make significant progress toward the development of our Port Arthur LNG project and remain committed to lowering greenhouse gas (GHG) emissions across the LNG value chain through the use of new technologies and the improvement of key processes."
Andree Stracke, CEO of RWE Supply & Trading said, "As RWE, we are very pleased to join forces with Sempra Infrastructure. Our partnership can contribute largely to securing significant LNG volumes for the RWE portfolio on a long-term basis while building the basis for supplying low carbon gas in the future."
The HOA contemplates the negotiation and finalization of a definitive 15-year LNG sale and purchase agreement for 2.25 Mtpa to be delivered from the Port Arthur LNG project. Additionally, Sempra Infrastructure and RWE have agreed to work toward a broad framework for the reduction, mitigation, and reporting of GHG emissions associated with deliveries of LNG from the Port Arthur LNG project, including addressing the use of responsibly sourced natural gas as part of the project's feed gas supply and renewable energy as part of the project power mix.
Phase 1 of the Port Arthur LNG project is fully permitted and is expected to include two liquefaction trains and LNG storage tanks, as well as associated facilities capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG.
The referenced HOAs are preliminary, non-binding arrangements, and the development of the Port Arthur LNG project remains subject to a number of risks and uncertainties, including, among others, reaching definitive agreements, maintaining all necessary permits, finalizing engineering and construction arrangements, obtaining financing and incentives, and reaching a final investment decision.
Advancing Lower Carbon LNG with Global Partners
Sempra Infrastructure is one of the top renewable energy producers in Mexico and is currently exceeding its goal of operating its existing LNG infrastructure at a GHG emissions intensity that is 20% below its 2020 baseline, having achieved a 28% reduction in 2021. In addition to continuing to reduce emissions through operational excellence, Sempra Infrastructure is actively developing lower emissions technologies for existing and future infrastructure assets.
Sempra Infrastructure has entered into a memorandum of understanding with Entergy Louisiana, a subsidiary of Entergy Corporation (NYSE: ETR), to develop options to accelerate the deployment of cost-effective renewable energy to power its infrastructure located in vicinity of the Gulf Coast. Additionally, Sempra Infrastructure is developing Hackberry Carbon Sequestration, a proposed carbon sequestration facility located in Southwest Louisiana expected to have the potential to sequester up to 2 Mtpa of carbon dioxide from LNG and other industrial facilities in the region and is developing opportunities to co-locate low-carbon hydrogen production at or near existing Sempra Infrastructure facilities.
In addition to lowering emissions at its own facilities, Sempra Infrastructure is working with other companies to reduce GHG emissions across the U.S. natural gas value chain, consistent with Sempra's aim to have net-zero GHG emissions by 2050. Sempra is a founding member of Veritas, a GTI Energy Differentiated Gas Measurement and Verification Initiative, supporting Sempra Infrastructure and other customers' desires for responsibly sourced natural gas that is produced and transported using proven technologies that minimize GHG emissions. Sempra Infrastructure is also a sponsor of The Collaboratory to Advance Methane Science, a research collaboration to advance technological solutions to enable methane emission reductions.
Monday 20 June 2022
Finland’s first floating LNG terminal to be placed in Fortum’s Inkoo port
Gasgrid Finland and Fortum have signed a Letter of Intent on placing Finland’s first floating LNG terminal vessel Exemplar at Fortum’s Inkoo port. Located on the Southern Coast of Finland, Inkoo provides an optimal deep-water port at close proximity to the pipelines distributing the gas mainly to industrial end-users in the Baltic region. This development enables independence from Russian pipeline gas.
Gasgrid Finland is leasing the floating LNG terminal vessel from Excelerate Energy Inc. for a duration of ten years and aims to have the terminal available already next winter. The vessel’s capacity is sufficient for the gas needs of both Finland and Estonia. Russian gas supplies through the Imatra entry point have been stopped in May.
“I would like to thank Fortum, Gasgrid and their partners for taking quick action. It is important for our economy that the floating LNG terminal ensures the gas supply of our industry. The next step is to stay on schedule and get the port ready,” says Mika Lintilä, Minister for Economic Affairs of Finland.
”The vessel project is absolutely essential for the security of supply of natural gas in the Baltic region – and therefore extremely urgent. I’m pleased that the decision on the location of the terminal was made in such fast schedule. As the need for the terminal covers the entire Baltic Sea region, Inkoo provides an excellent location for the vessel,” says Olli Sipilä, CEO of Gasgrid Finland.
”At Fortum, we are very pleased to support energy security, industry as well as our national economy during these challenging times. Our Inkoo port is located on the site of our decommissioned coal power plant and provides nearly ready-to-use infrastructure and an optimal location for the country’s first floating LNG terminal. In the future, our plan is to further develop industrial activity on the site, so that it can contribute to the decarbonisation of society,” says Fortum’s CEO Markus Rauramo.
Fortum’s Inkoo port is accessible by a suitable sea lane, has a ready-to-use pier, is in close proximity of the Balticconnector pipeline between Finland and Estonia – and is available at short notice. Furthermore, Inkoo has undergone the necessary environmental impact assessments already in 2014 – 2015.
In addition to Inkoo, Gasgrid Finland and the Estonian electricity and gas transmission system operator Elering continue to develop a potential site in Estonia, as originally planned. The aim of this is to mitigate potential project risks and increase the probability that one of the sites is ready as early as possible for the next winter.
The floating LNG terminal vessel Exemplar The floating storage and regasification unit (FSRU) Exemplar is 291 meters long and 43 meters wide. It has a volume of approximately 151,000 cubic meters, corresponding to approximately 68,000 tonnes of LNG, liquefied natural gas, when fully loaded. This means approximately 1,050 GWh of energy content.
FSRU Exemplar’s evaporation capacity is 140 GWh/day and even more than 40 TWh per year.
FSRU Exemplar’s evaporation capacity exceeds Finland’s annual natural gas demand, which has historically been approximately 25 TWh per year.
The significant capacity FSRU Exemplar serves the gas market in the entire Baltic Sea region via the Balticconnector interconnector pipeline.
Fortum deep-water port and industrial area in Inkoo The Port of Inkoo is located at Fortum Joddböle industrial area about 60 kilometers west of Helsinki.
Fortum owns the port that is operated by Inkoo Shipping Oy. The port handles dry bulk materials such as solid fuel used in power plants.
It is a deep-water port, which means it can accommodate the floating LNG terminal vessel “Exemplar”.
The port is well situated about 1.5 km from the Balticconnector natural gas pipeline that unites the Finnish and Baltic countries’ gas markets. Fortum operated the largest coal-fired plant in the Nordic countries at the Joddböle site until its permanent closure in 2016. The plant was dismantled in 2020 and over 90% of the materials were recycled.
The site’s location next to the deep-water port and high-voltage transmission network, makes it an ideal location for power-intensive, clean industries. Fortum is exploring various options for future uses of the site.
Gasgrid Finland is leasing the floating LNG terminal vessel from Excelerate Energy Inc. for a duration of ten years and aims to have the terminal available already next winter. The vessel’s capacity is sufficient for the gas needs of both Finland and Estonia. Russian gas supplies through the Imatra entry point have been stopped in May.
“I would like to thank Fortum, Gasgrid and their partners for taking quick action. It is important for our economy that the floating LNG terminal ensures the gas supply of our industry. The next step is to stay on schedule and get the port ready,” says Mika Lintilä, Minister for Economic Affairs of Finland.
”The vessel project is absolutely essential for the security of supply of natural gas in the Baltic region – and therefore extremely urgent. I’m pleased that the decision on the location of the terminal was made in such fast schedule. As the need for the terminal covers the entire Baltic Sea region, Inkoo provides an excellent location for the vessel,” says Olli Sipilä, CEO of Gasgrid Finland.
”At Fortum, we are very pleased to support energy security, industry as well as our national economy during these challenging times. Our Inkoo port is located on the site of our decommissioned coal power plant and provides nearly ready-to-use infrastructure and an optimal location for the country’s first floating LNG terminal. In the future, our plan is to further develop industrial activity on the site, so that it can contribute to the decarbonisation of society,” says Fortum’s CEO Markus Rauramo.
Fortum’s Inkoo port is accessible by a suitable sea lane, has a ready-to-use pier, is in close proximity of the Balticconnector pipeline between Finland and Estonia – and is available at short notice. Furthermore, Inkoo has undergone the necessary environmental impact assessments already in 2014 – 2015.
In addition to Inkoo, Gasgrid Finland and the Estonian electricity and gas transmission system operator Elering continue to develop a potential site in Estonia, as originally planned. The aim of this is to mitigate potential project risks and increase the probability that one of the sites is ready as early as possible for the next winter.
The floating LNG terminal vessel Exemplar The floating storage and regasification unit (FSRU) Exemplar is 291 meters long and 43 meters wide. It has a volume of approximately 151,000 cubic meters, corresponding to approximately 68,000 tonnes of LNG, liquefied natural gas, when fully loaded. This means approximately 1,050 GWh of energy content.
FSRU Exemplar’s evaporation capacity is 140 GWh/day and even more than 40 TWh per year.
FSRU Exemplar’s evaporation capacity exceeds Finland’s annual natural gas demand, which has historically been approximately 25 TWh per year.
The significant capacity FSRU Exemplar serves the gas market in the entire Baltic Sea region via the Balticconnector interconnector pipeline.
Fortum deep-water port and industrial area in Inkoo The Port of Inkoo is located at Fortum Joddböle industrial area about 60 kilometers west of Helsinki.
Fortum owns the port that is operated by Inkoo Shipping Oy. The port handles dry bulk materials such as solid fuel used in power plants.
It is a deep-water port, which means it can accommodate the floating LNG terminal vessel “Exemplar”.
The port is well situated about 1.5 km from the Balticconnector natural gas pipeline that unites the Finnish and Baltic countries’ gas markets. Fortum operated the largest coal-fired plant in the Nordic countries at the Joddböle site until its permanent closure in 2016. The plant was dismantled in 2020 and over 90% of the materials were recycled.
The site’s location next to the deep-water port and high-voltage transmission network, makes it an ideal location for power-intensive, clean industries. Fortum is exploring various options for future uses of the site.
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