Thursday 21 July 2022

Snam Purchases 5 Billion Cubic Metre Floating LNG Regasification Terminal From Golar LNG For US$ 350 Million

Snam and Golar LNG Limited ("Golar") have signed an agreement for the Snam Group to acquire 100% of the share capital of Golar LNG NB 13 Corporation, whose sole asset is a floating storage and regasification unit (FSRU), named "Golar Tundra", for US$350 million (about €330 million). The transaction was approved by the Snam Board of Directors on May 30th.

The Golar Tundra can operate both as an LNG carrier and as an FSRU. The vessel, built in 2015, has a storage capacity of around 170,000 cubic metres of LNG and a continuous regasification capacity of 5 billion cubic meters per year. In order to maximise its regasification capacity, the vessel will be located in central-northern Italy, close to the areas with greatest gas consumption. The Golar Tundra is expected to start operations as an FSRU during the spring of 2023, subject to completion of authorisation, regulatory processes and the construction of the necessary infrastructure connecting the terminal to the existing gas transport network.

Snam CEO Stefano Venier commented: "With the purchase of the Golar Tundra, Snam is taking a decisive step to enhance the security and diversification of Italy’s energy supplies, in line with its mission. The role of the new FSRU for the benefit of our country will be essential: alone it will contribute to about 6.5% of domestic needs thus bringing the country’s regasification capacity to over 25% of the demand. Snam completed the transaction quickly and effectively in a highly competitive market due to the scarcity of supply and is continuing its efforts to acquire a second FSRU of a similar size, for which exclusive negotiations are currently under way and expected to be finalised by end of June".

Golar CEO Karl Fredrik Staubo commented: "We are pleased to have reached an agreement for Golar Tundra with Europe’s largest natural gas infrastructure owner. Today’s announced sale marks the second transaction between Golar and Snam for two independent FSRU projects in Italy in a short period of time. We are pleased to work with Snam for the successful start-up of the LNG terminals, and to contribute to Europe’s drive towards energy security. With the sale of Golar Tundra, Golar reinforce its focus on FLNG, enabling efficient production of proven gas reserves allowing customers to further diversify gas supply."

As part of the transaction, which followed a due diligence assessment of the acquired company and the FSRU itself, Golar will lease Golar Tundra from Snam as an LNG carrier for a limited period of time after closing, and assist Snam in the preparatory work for the installation of the vessel in the selected port. The completion of the transaction occurred simultaneously with the signing of the contracts and will be financed by Snam out of its own resources. In the coming months Snam will begin activities to contract LNG regasification capacity, which will gradually become available from start-up of Golar Tundra as an FSRU expected during the spring of 2023.

Cheniere and PetroChina Sign Long-Term LNG Sale and Purchase Agreement

Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE American: LNG) announced today that its wholly-owned subsidiary, Cheniere Marketing, LLC (“Cheniere Marketing”), has entered into a long-term liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”) with a subsidiary of PetroChina Company Limited (“PetroChina”).

Under the SPA, PetroChina subsidiary PetroChina International Company Limited (“PCI”) has agreed to purchase up to approximately 1.8 million tonnes per annum (“mtpa”) of LNG from Cheniere Marketing on a free-on-board basis. Deliveries under the SPA will begin in 2026, reach the full 1.8 mtpa in 2028, and continue through 2050. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee. Half of the total volume, or approximately 0.9 mtpa, is subject to Cheniere making a positive final investment decision to construct additional liquefaction capacity at the Corpus Christi LNG Terminal beyond the seven-train Corpus Christi Stage 3 Project.

“We are pleased to build upon our existing and successful long-term relationship with PetroChina and sign our first LNG contract that crosses over into the second half of this century,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “PetroChina is a leading energy company in one of the largest and fastest growing markets for LNG. This SPA increases Cheniere’s long-term sales to PetroChina to approximately 3 mtpa, and we are proud to support China’s progress toward a lower-carbon future with our reliable, cleaner burning LNG.”

Commenting on the agreement, Mr. Tian Jinghui, Executive Chairman of PCI stated “Natural gas continues to play a vital role in enabling energy transition in China. We are pleased to further expand our cooperation with Cheniere in delivering LNG, one of the cleanest fuel choices to our millions of customers for many years to come.”

Monday 18 July 2022

Bechtel starts construction on Taiwan’s largest LNG storage tanks

Today, Bechtel, CPC Corporation, and MRY broke ground on the project to design and build LNG tanks for the CPC Taichung Phase III LNG import terminal in Taichung, Taiwan.

o meet increasing demand for natural gas and to enhance the stability of natural gas supplies in Taiwan, CPC is expanding its facility to include two full containment tanks and associated regasification facilities.

Bechtel will execute engineering, procurement, and construction of two 180,000 m3 full containment LNG tanks, Taiwan’s largest storage tanks ever built.

CPC is leading the way for Taiwan in meeting the country’s clean energy aspirations by rapidly expanding the country’s LNG import terminals to support the move from coal to natural gas as their primary transitional source of energy for the near future.

“Today marks another important step toward meeting the increasing demand for natural gas. Together with CPC Corporation and MRY, we are delivering cleaner, greener, and safer energy to Taiwan, supporting both their energy growth and security” said Paul Marsden, president of Bechtel Energy. “To power the needs of the world, we need LNG and storage capability which is what we are doing here on this site today, by celebrating the start of construction on the largest storage tanks ever to be built in Taiwan”.

American Institute in Taiwan Director Sandra Oudkirk expressed her support for Bechtel’s partnership with CPC on the new LNG storage facility in Taichung. Oudkirk underscored the importance of the U.S.-Taiwan economic relationship and a commitment to reliable and clean energy that supports economic development and protects the environment.

As the need for LNG continues to grow, Bechtel stands ready to support governments and communities around the world in pursuit of carbon reduction.

ConocoPhillips and Sempra Infrastructure Sign Heads of Agreement for Large-Scale LNG Projects and Carbon Capture Activities

ConocoPhillips (NYSE: COP) today announced a potentially significant expansion of its global liquefied natural gas (LNG) business through investment in a new large-scale LNG facility under development by Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), in Jefferson County, Texas. ConocoPhillips has entered into a Heads of Agreement (HOA) with Sempra to acquire a 30% direct equity holding in Port Arthur Liquefaction Holdings, LLC and an LNG offtake equivalent to approximately 5 million tonnes per annum (Mtpa) from the Port Arthur LNG project.

The first phase of the project is fully permitted and 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. As one of the top five natural gas marketers in North America, ConocoPhillips will bring extensive commercial expertise and resources to benefit the project. Under the terms of the HOA, ConocoPhillips will supply the gas for its 5 Mtpa offtake and may provide additional gas supply services to the Port Arthur LNG facility. In addition, ConocoPhillips will have the option to acquire certain LNG offtake and equity ownership from future contemplated LNG trains at the Port Arthur LNG site, where a similarly sized Phase 2 project is also under development.

“ConocoPhillips has been a driving force in the LNG industry since we helped open the Atlantic LNG market beginning in the 1950s, and then the Asia-Pacific market by delivering the first LNG cargo to Tokyo Bay in 1969,” said Ryan Lance, chairman and chief executive officer. “The decision to enter into this agreement with Sempra provides us with a ground-floor opportunity to participate in premier LNG developments, reinforcing our commitment to helping solve the world’s energy supply needs as we transition to a lower-carbon future. Sempra brings a long history of successful LNG project development, and we look forward to working together to provide reliable LNG to support the energy transition and strengthen U.S. and global energy security.”

“At Sempra, we believe bold new partnerships will be central to solving the world’s energy security and decarbonization challenges,” said Jeffrey W. Martin, chairman and chief executive officer of Sempra. “That is why we are excited to announce this proposed partnership with ConocoPhillips, a leading global energy producer that also shares our vision of responsibly developing and delivering cleaner energy resources.”

The companies will also evaluate development of low-carbon projects, including a carbon capture and storage (CCS) project for the Port Arthur LNG facility, and Sempra Infrastructure would have the opportunity to participate in carbon capture and sequestration projects developed by ConocoPhillips in Texas or Louisiana in connection with the Port Arthur LNG project. Additionally, the HOA provides an opportunity for ConocoPhillips to acquire offtake and equity participation in Sempra’s development of the Energia Costa Azul LNG Phase 2 Project to be located north of Ensenada, Baja California, Mexico. This future expansion of the existing Energia Costa Azul project is ideally located to supply Asia-Pacific markets.

The referenced HOA is a preliminary, non-binding arrangement, with development of the Port Arthur LNG project subject to concluding definitive agreements and resolving a number of risks and uncertainties, including, among others, signing engineering and construction contracts, obtaining financing and reaching a final investment decision between the parties.

“This HOA aligns with our Triple Mandate, the objectives of which are to reliably and responsibly deliver production to meet energy transition pathway demand, deliver competitive returns on and of capital to our shareholders, and achieve our Paris-aligned targets and 2050 net-zero operational emissions ambition,” added Lance. “We are now positioned among the largest natural gas producers in the U.S. through our recent acquisitions of Concho and Shell’s Permian assets and are interested in expanding our LNG presence. Equity ownership in the Port Arthur LNG project would allow ConocoPhillips to participate in future expansions and lower-carbon activities in line with our own strategic initiatives.”

The use of natural gas in place of coal and refined products represents an opportunity for significant reductions in greenhouse gas emissions across the globe. ConocoPhillips will leverage existing strengths in natural gas marketing and trading and emissions reduction projects in support of the Port Arthur LNG project as well as its growing global LNG portfolio. That portfolio includes the recent announcements of the company increasing its equity share in Australia Pacific LNG to 47.5% and selection as a partner in the North Field East Project in Qatar, further bolstering ConocoPhillips’ presence in the country. The company also licenses its liquefaction Optimized Cascade Process® in 27 trains around the world and has become one of the largest natural gas producers and marketers in North America.

Friday 8 July 2022

Snam Purchases New Floating Regasification Unit From BW LNG To Contribute To Italy's Energy Security And Diversification

Snam and BW LNG have signed an agreement for the acquisition by Snam Group of 100% of the share capital of FSRU I Limited, which upon closing will own the floating storage and regasification unit (FSRU) "BW Singapore" as its sole asset.

BW Singapore, built in 2015, has a maximum storage capacity of about 170,000 cubic metres of LNG (liquefied natural gas) and a nominal continuous regasification capacity of about 5 billion cubic metres per year. The unit has been deployed from the outset as an FSRU but can also operate as a carrier for the transport of LNG.

The FSRU, which is currently bound by a charter agreement with a third party until November 2023, is expected to be installed in the upper Adriatic Sea, close to the coast of Ravenna. Operations are scheduled to commence in the third quarter of 2024, following the completion of the authorisation and regulatory process as well as the finalisation of the works required for mooring and connection to the gas transport network.

Snam CEO Stefano Venier commented: "With this operation, we are providing Italy with its second new floating regasification unit thus making a decisive contribution to the country’s energy security and diversification. The two FSRUs acquired in the last month by Snam will contribute 13% of the national gas demand alone, bringing regasification capacity to over 30% of demand, as soon as we will get the permits to positioning them and get them connected to the national transmission network. The vessel’s position in the upper Adriatic Sea will allow the new unit to intercept potential new LNG flows from North Africa and the Eastern Mediterranean. Securing these two new units was not easy, in a market characterized by a shortage of supply and international competition that was growing strongly with each passing week. The swift completion of these two acquisitions provides with the authorization process and the starting of operations with precious time, which is essential to tackle with the current energy crisis."

BW LNG CEO Yngvil Åsheim commented: “We are pleased to work with Snam to help Italy and Europe diversify its gas infrastructure and contribute to energy security when BW Singapore’s current contract expires in November 2023. At BW LNG we are committed to our strategy to provide floating LNG infrastructure that supports the journey to a low carbon society. A cornerstone of this strategy is our FSRU segment, where we will continue to explore growth opportunities. We also have four LNG carriers on order for delivery in 2025."

The acquisition will be financed by Snam from its own resources for an amount of approximately 400 million US dollars, which will be paid in two tranches. The FSRU will be made available to Snam at the closing date of the deal, which is expected by the end of 2023.

In the coming months, Snam will also begin activities to contract LNG regasification capacity which will gradually become available from the start-up of BW Singapore in Italy.

Tuesday 5 July 2022

Construction of Wilhelmshaven LNG terminal can start quickly

The construction work for Germany's first LNG terminal and for the onshore and seaward port infrastructure can begin now that the - State Trade Supervisory Authority Oldenburg has given its approval for an early start. The official start of construction of the FSRU-based LNG terninal is July 4, 2022. Up to 7.5 billion cubic meters of natural gas per year are to be handled via this terminal as quickly as possible. This is about 8.5 percent of Germany's current gas demand per year. The German Federal Ministry for Economic Affairs and Climate Protection and Uniper are aiming for commissioning in winter 2022/2023.

"We are very pleased that things are now visibly getting underway," says Lower Saxony's Minister for the Environment, Energy, Building and Climate Protection Olaf Lies. "We need a replacement for Russian gas as quickly as possible, and we in the north are prepared to take responsibility for this. Every cubic meter we save will help us get through the next winter, and every cubic meter we import to Germany via alternative routes in the future will help us free ourselves more quickly from Russia's grip. Here in Wilhelmshaven, we are currently demonstrating what the new German speed means: we are planning, approving and building at eight times the normal speed. With such complex projects, this is only possible if everyone pulls in the same direction. Our thanks must therefore go in particular to the employees of the approval authorities. They have been working under high pressure day and night for many weeks on this important building block for more independence and freedom of our energy supply."

Klaus-Dieter Maubach, CEO Uniper: "The rapid approval for the early start of construction shows the importance of the LNG terminal in Wilhelmshaven for the country's security of supply. This cannot be taken for granted - above all, it shows what is possible when society, industry and politics pull together. We are proud to be able to make a significant contribution to Germany's independence in natural gas supplies at our site in Wilhelmshaven, hopefully before the end of the winter 2022/2023. In the medium and long term, our Green Wilhelmshaven hydrogen project will set the course for an even more climate-friendly energy supply."

Uniper had submitted the application for the required permit and for admission of an early start under the German Federal Immission Control Act (BImSchG) to the Oldenburg State Trade Inspectorate at the beginning of June.

The permit for an early start construction works in accordance with §8a BImSchG relates to all parts of the land- and seaward infrastructure as well as an approximately 30 km long high-pressure gas pipeline between the FSRU and the transfer point into the natural gas pipeline network of Open Grid Europe (OGE). The BImSchG application, the essential parts of which have already been submitted to the approval authority, is to be completed by the beginning of September 2022.


Background:

The first landing terminal for LNG in Germany will be built in Wilhelmshaven at the Voslapper Groden transhipment facility. Uniper will build and operate the terminal at the request of the Federal Republic of Germany. Uniper's goal is independence from individual energy sources and a sustainable energy future.

In a second project step, a permanent and expanded port solution for the FSRU is to be realized in parallel to the existing UVG. Here, it is planned to create additional unloading and handling facilities for green gases, e.g. ammonia, in order to be able to utilize the full potential of this new infrastructure project in Wilhelmshaven ("Green Wilhelmshaven").

The Wilhelmshaven site offers ideal conditions from both a maritime and logistical perspective. LNG tankers of all sizes will be able to call at the facility regardless of the tides and in line with the highest international safety standards. All that is required for the connection to the existing natural gas pipeline network is a gas pipeline around 30 kilometers long, the realization of which has already been started by OGE.

Technip Energies Awarded a Substantial Contract for TotalEnergies and OQ’s Marsa LNG Project in Oman

Technip Energies (PARIS: TE), has been awarded a substantial contract by TotalEnergies and OQ for the Marsa LNG bunkering project located i...