Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday it has been awarded an order by Bechtel to supply two Main Refrigerant Compressors (MRCs) for Sempra Infrastructure’s Port Arthur LNG Phase 1 project in Jefferson County, Texas, following the positive Final Investment Decision (FID) announced March 20.
Through the Port Arthur LNG Phase 1 project, Sempra Infrastructure aims to deliver critical new export infrastructure in the U.S., which will help meet continuing growth in demand for liquefied natural gas (LNG). In total, Baker Hughes will supply four Frame 7 turbines paired with eight centrifugal compressors across two LNG trains – for a nameplate capacity of approximately 13 MTPA – as well as two electric motor driven compressors for the plant’s boosting services.
“We are delighted to be working with Bechtel and Sempra Infrastructure to supply critical equipment for this innovative LNG project,” said Baker Hughes Chairman and CEO Lorenzo Simonelli. “Baker Hughes has been committed to LNG for over 30 years, and today’s announcement builds on our track record of delivering high-availability and reliable LNG technology, with low total cost of operations, further enabling increased exports of LNG from the U.S. Gulf Coast to meet global energy needs.”
Baker Hughes’ proven gas technology solution chosen for Port Arthur LNG Phase 1 provides Sempra Infrastructure with the highest production levels for the plant’s design, as well as operational flexibility, high availability, and lower emission footprint. The Frame 7 turbine is well-proven for its energy efficiency, availability, reliability and maintainability.
Packaging of the turbine/compressor train, a unique Baker Hughes offering, as well as manufacturing of the compressors and testing of the trains, will take place at Baker Hughes’ facilities in Italy. The expected commercial operation dates for Port Arthur LNG Phase 1 Train 1 and Train 2 are 2027 and 2028, respectively.
Tuesday 28 March 2023
Mexico Pacific and Shell sign third long-term LNG sales and purchase agreement
Shell Eastern Trading (Pte) Ltd (Shell) and a subsidiary of Mexico Pacific Limited (Mexico Pacific) announced today they have signed an additional sales and purchase agreement for Shell to offtake approximately 1.1 million tonnes per year (MTPA) of liquefied natural gas (LNG) from the third train of Mexico Pacific’s anchor LNG export facility, Saguaro Energia, located in Puerto Libertad, Sonora, Mexico.
Under the sales and purchase agreement, Shell will purchase LNG on a free on-board basis over a term of 20 years. When fully operational, the first phase of the facility will have three trains and a combined capacity of 14.1 MTPA.
“We are delighted Shell has chosen to grow with us, building upon their initial 2.6 MTPA commitment from train 1 and train 2, to also underpin more than 20% of Train 3 capacity,” said Ivan Van der Walt, Chief Executive Officer of Mexico Pacific. “Our project will provide Asia with low-cost Permian gas, avoiding the Panama Canal to ensure a shorter shipping distance to Asia, to achieve lower transportation emissions and landed pricing vs. the US Gulf Coast. As we work to deliver a final investment decision (FID) on the first two trains, we are also closing out contracting across the significant commercial momentum in place for Train 3 to ensure that a subsequent Train 3 FID can follow as quickly as possible.”
Steve Hill, Executive Vice President of Energy Marketing at Shell, said: “LNG is an increasingly important pillar of global energy security. Investment in liquefaction projects is needed to avoid a supply-demand gap that is expected to emerge in the late 2020s. We are pleased to be working with Mexico Pacific to provide more LNG to the global market.”
Chuck Davidson, Mexico Pacific Chairman and Partner at Quantum Energy Partners, said: “Mexico Pacific is uniquely facilitating the connection of low-cost Permian Basin gas with the lower carbon fuel needs of Asia to deliver de-risked and affordable new LNG supply, resulting in additional energy security for the region. “We are pleased to have the ongoing support of Shell, one of the largest market participants, to underpin investment in critically needed new supply.”
About Mexico Pacific
Mexico Pacific’s anchor project, the Saguaro Energia LNG Facility, consists of 3 trains in the first phase with a capacity of 14.1 MTPA. West Coast North American LNG export facility located in Puerto Libertad, Sonora, Mexico. The Saguaro Energia LNG Facility achieves significant cost and logistical advantages, including the lowest landed price of North American LNG into Asia, leveraging low-cost natural gas sourced from the nearby Permian Basin, and a significantly shorter shipping route that avoids Panama Canal transit for Asian markets. More information can be found at http://www.mexicopacific.com.
Under the sales and purchase agreement, Shell will purchase LNG on a free on-board basis over a term of 20 years. When fully operational, the first phase of the facility will have three trains and a combined capacity of 14.1 MTPA.
“We are delighted Shell has chosen to grow with us, building upon their initial 2.6 MTPA commitment from train 1 and train 2, to also underpin more than 20% of Train 3 capacity,” said Ivan Van der Walt, Chief Executive Officer of Mexico Pacific. “Our project will provide Asia with low-cost Permian gas, avoiding the Panama Canal to ensure a shorter shipping distance to Asia, to achieve lower transportation emissions and landed pricing vs. the US Gulf Coast. As we work to deliver a final investment decision (FID) on the first two trains, we are also closing out contracting across the significant commercial momentum in place for Train 3 to ensure that a subsequent Train 3 FID can follow as quickly as possible.”
Steve Hill, Executive Vice President of Energy Marketing at Shell, said: “LNG is an increasingly important pillar of global energy security. Investment in liquefaction projects is needed to avoid a supply-demand gap that is expected to emerge in the late 2020s. We are pleased to be working with Mexico Pacific to provide more LNG to the global market.”
Chuck Davidson, Mexico Pacific Chairman and Partner at Quantum Energy Partners, said: “Mexico Pacific is uniquely facilitating the connection of low-cost Permian Basin gas with the lower carbon fuel needs of Asia to deliver de-risked and affordable new LNG supply, resulting in additional energy security for the region. “We are pleased to have the ongoing support of Shell, one of the largest market participants, to underpin investment in critically needed new supply.”
About Mexico Pacific
Mexico Pacific’s anchor project, the Saguaro Energia LNG Facility, consists of 3 trains in the first phase with a capacity of 14.1 MTPA. West Coast North American LNG export facility located in Puerto Libertad, Sonora, Mexico. The Saguaro Energia LNG Facility achieves significant cost and logistical advantages, including the lowest landed price of North American LNG into Asia, leveraging low-cost natural gas sourced from the nearby Permian Basin, and a significantly shorter shipping route that avoids Panama Canal transit for Asian markets. More information can be found at http://www.mexicopacific.com.
Tuesday 21 March 2023
Sempra Launches Port Arthur LNG Project
Sempra (NYSE: SRE) (BMV: SRE) today announced that its 70%-owned subsidiary, Sempra Infrastructure Partners, LP (Sempra Infrastructure), reached a positive final investment decision (FID) for the development, construction and operation of the Port Arthur LNG Phase 1 project in Jefferson County, Texas.
Sempra Infrastructure closed its joint venture with an affiliate of ConocoPhillips (NYSE: COP), as well as announced an agreement to sell an indirect, non-controlling interest in the project to an infrastructure fund managed by KKR. Additionally, Sempra Infrastructure announced the closing of the project's $6.8 billion non-recourse debt financing and the issuance of the final notice to proceed under the project's engineering, procurement and construction agreement.
"At Sempra, we believe bold, forward-looking 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. "With strong customers, top-tier equity sponsors in ConocoPhillips and KKR and a world class contractor in Bechtel, this project has the potential to become one of America's most significant energy infrastructure investments over time, while creating jobs and spurring continued economic growth across Texas and the Gulf Coast region."
"Sempra's selection of Port Arthur as the location for a new natural gas liquefication and export terminal is a strategic decision that will cement Texas' position as the energy capital of the world," said Texas Gov. Greg Abbott. "With a highly skilled workforce and business-friendly climate, and as a national leader in LNG exports, Texas is the prime location to expand LNG operations to unleash the United States' full economic potential in such a critical industry. Expanding LNG is imperative to American energy security, and the State of Texas looks forward to working alongside Sempra to advance this mission and bring more jobs and greater opportunities to hardworking Texans."
The Port Arthur LNG Phase 1 project is fully permitted and is designed to include two natural gas liquefaction trains, two liquefied natural gas (LNG) storage tanks and associated facilities with a nameplate capacity of approximately 13 million tonnes per annum (Mtpa). Total capital expenditures for the Port Arthur Phase 1 project are estimated at $13 billion.
The long-term contractable capacity of approximately 10.5 Mtpa is fully subscribed under binding long-term agreements with strong counterparties —ConocoPhillips, RWE Supply and Trading, PKN ORLEN S.A., INEOS and ENGIE S.A., all of which became effective upon reaching FID. Sempra Infrastructure is also actively marketing and developing the competitively positioned Port Arthur LNG Phase 2 project, which is expected to have similar offtake capacity to Phase 1.
World-Class Partnerships
Sempra and ConocoPhillips closed their joint venture whereby an affiliate of ConocoPhillips has acquired a 30% non-controlling interest in the project, is purchasing 5 Mtpa of LNG offtake from the project under a 20-year sale and purchase agreement and is managing the project's overall natural gas supply requirements. ConocoPhillips will also have certain rights to participate in future expansion projects in both equity and offtake.
"Our strategic LNG partnership with Sempra will help supply growing global demand for natural gas, a lower greenhouse gas emissions-intensity fuel expected to play a critical role in the energy transition and global energy mix going forward," said Ryan Lance, ConocoPhillips chairman and chief executive officer. "ConocoPhillips has more than 60 years of experience with LNG, and we look forward to continuing to build our LNG portfolio and expanding our role in delivering a lower-carbon future that strengthens U.S. and global energy security."
Sempra Infrastructure announced an agreement whereby KKR will acquire a 25% to 49% indirect, non-controlling interest in the Port Arthur LNG Phase 1 project. Pursuant to the agreement with KKR, Sempra Infrastructure will retain certain economic and other rights with respect to the interest being transferred while granting KKR certain minority interest protections. KKR is making the investment primarily through its Global Infrastructure Investors IV fund.
"We are pleased to invest in this critical energy infrastructure project and extend our strategic partnership with Sempra and their world-class team," said James Cunningham, Partner at KKR. "Phase 1 will create new jobs, support American economic growth and deliver reliable and cleaner energy during the global energy transition. Consistent with KKR Infrastructure's strategy of seeking stable and predictable returns for investors, our investment in Phase 1 is backed by robust cash flows through long-term contracts with high-quality counterparties."
Sempra Infrastructure is targeting 20% to 30% of indirect ownership interest in the project, subject to the closing of the KKR sale. For illustrative purposes, if Sempra Infrastructure's indirect ownership interest is at the midpoint of the referenced range, or 25%, Sempra Infrastructure would expect its share of average adjusted EBITDA after full commercial operations to be approximately $410 million annually and its equity commitment to be approximately $1.55 billion. Sempra's share of the above estimates would be equal to 70% of these amounts. The foregoing estimates exclude other potentially significant economic benefits associated with, among other items, the development of future phases and further optimization of the project.
Sempra Infrastructure has contracted with global engineering, construction and project management firm Bechtel Energy Inc. and has issued a final notice to proceed for the project. The expected commercial operation dates for Train 1 and Train 2 are 2027 and 2028, respectively.
"We're proud to partner with Sempra to deliver a world-class LNG facility. Building from mature, scalable energy technologies helps safeguard our energy supplies and promote the transition to lower-carbon energy," said Brendan Bechtel, Chairman and CEO of Bechtel. "Bechtel has a record of delivering LNG infrastructure on the U.S. Gulf Coast and bringing quality jobs and training opportunities to local communities. The 5,000 construction jobs this project creates will provide outstanding opportunities for craft professionals — growing a skilled workforce that will benefit the region for years to come."
Local Benefits
Sempra Infrastructure believes that building strong relationships and supporting the communities where its employees live and work is fundamental to how it does business. Moreover, the company focuses its community development initiatives on local priorities including education and leadership development, environmental stewardship and safety.
Since 2015, Port Arthur LNG has invested more than $40 million to support Jefferson County communities, including working with local vendors to procure materials and services for the relocation of a 3.5-mile portion of Highway 87 and on grants to more than 60 local non-profits, schools and business development groups.
The Phase 1 project is another significant opportunity to expand Sempra Infrastructure's economic impact. The project is expected to create an estimated 5,000 highly skilled jobs during construction and boost the economies in Port Arthur and Jefferson County.
"Sempra has long been an economic driver for Jefferson County here in Southeast Texas, and this new Port Arthur LNG facility will continue that trend by bringing thousands of jobs, new markets for natural gas and more energy security for our nation," Speaker of the Texas House of Representatives Dade Phelan said. "Texas House District 21 is proud of this latest development that showcases our great state's leadership in economic development, job creation and energy production."
The successful completion of the KKR sale is subject to regulatory approvals and other customary closing conditions, and the completion of construction of Port Arthur LNG Phase 1 is subject to a number of risks and uncertainties. Additional details about these transactions can be found in the current report on Form 8-K Sempra filed with the U.S. Securities and Exchange Commission on March 20, 2023, as well as in the informational slides on the Investors section of Sempra's website at sempra.com/investors.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial measure (GAAP is generally accepted accounting principles).
Citi advised Sempra on various aspects of the transaction and J.P. Morgan Securities LLC acted as advisor on the project financing.
Sempra Infrastructure closed its joint venture with an affiliate of ConocoPhillips (NYSE: COP), as well as announced an agreement to sell an indirect, non-controlling interest in the project to an infrastructure fund managed by KKR. Additionally, Sempra Infrastructure announced the closing of the project's $6.8 billion non-recourse debt financing and the issuance of the final notice to proceed under the project's engineering, procurement and construction agreement.
"At Sempra, we believe bold, forward-looking 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. "With strong customers, top-tier equity sponsors in ConocoPhillips and KKR and a world class contractor in Bechtel, this project has the potential to become one of America's most significant energy infrastructure investments over time, while creating jobs and spurring continued economic growth across Texas and the Gulf Coast region."
"Sempra's selection of Port Arthur as the location for a new natural gas liquefication and export terminal is a strategic decision that will cement Texas' position as the energy capital of the world," said Texas Gov. Greg Abbott. "With a highly skilled workforce and business-friendly climate, and as a national leader in LNG exports, Texas is the prime location to expand LNG operations to unleash the United States' full economic potential in such a critical industry. Expanding LNG is imperative to American energy security, and the State of Texas looks forward to working alongside Sempra to advance this mission and bring more jobs and greater opportunities to hardworking Texans."
The Port Arthur LNG Phase 1 project is fully permitted and is designed to include two natural gas liquefaction trains, two liquefied natural gas (LNG) storage tanks and associated facilities with a nameplate capacity of approximately 13 million tonnes per annum (Mtpa). Total capital expenditures for the Port Arthur Phase 1 project are estimated at $13 billion.
The long-term contractable capacity of approximately 10.5 Mtpa is fully subscribed under binding long-term agreements with strong counterparties —ConocoPhillips, RWE Supply and Trading, PKN ORLEN S.A., INEOS and ENGIE S.A., all of which became effective upon reaching FID. Sempra Infrastructure is also actively marketing and developing the competitively positioned Port Arthur LNG Phase 2 project, which is expected to have similar offtake capacity to Phase 1.
World-Class Partnerships
Sempra and ConocoPhillips closed their joint venture whereby an affiliate of ConocoPhillips has acquired a 30% non-controlling interest in the project, is purchasing 5 Mtpa of LNG offtake from the project under a 20-year sale and purchase agreement and is managing the project's overall natural gas supply requirements. ConocoPhillips will also have certain rights to participate in future expansion projects in both equity and offtake.
"Our strategic LNG partnership with Sempra will help supply growing global demand for natural gas, a lower greenhouse gas emissions-intensity fuel expected to play a critical role in the energy transition and global energy mix going forward," said Ryan Lance, ConocoPhillips chairman and chief executive officer. "ConocoPhillips has more than 60 years of experience with LNG, and we look forward to continuing to build our LNG portfolio and expanding our role in delivering a lower-carbon future that strengthens U.S. and global energy security."
Sempra Infrastructure announced an agreement whereby KKR will acquire a 25% to 49% indirect, non-controlling interest in the Port Arthur LNG Phase 1 project. Pursuant to the agreement with KKR, Sempra Infrastructure will retain certain economic and other rights with respect to the interest being transferred while granting KKR certain minority interest protections. KKR is making the investment primarily through its Global Infrastructure Investors IV fund.
"We are pleased to invest in this critical energy infrastructure project and extend our strategic partnership with Sempra and their world-class team," said James Cunningham, Partner at KKR. "Phase 1 will create new jobs, support American economic growth and deliver reliable and cleaner energy during the global energy transition. Consistent with KKR Infrastructure's strategy of seeking stable and predictable returns for investors, our investment in Phase 1 is backed by robust cash flows through long-term contracts with high-quality counterparties."
Sempra Infrastructure is targeting 20% to 30% of indirect ownership interest in the project, subject to the closing of the KKR sale. For illustrative purposes, if Sempra Infrastructure's indirect ownership interest is at the midpoint of the referenced range, or 25%, Sempra Infrastructure would expect its share of average adjusted EBITDA after full commercial operations to be approximately $410 million annually and its equity commitment to be approximately $1.55 billion. Sempra's share of the above estimates would be equal to 70% of these amounts. The foregoing estimates exclude other potentially significant economic benefits associated with, among other items, the development of future phases and further optimization of the project.
Sempra Infrastructure has contracted with global engineering, construction and project management firm Bechtel Energy Inc. and has issued a final notice to proceed for the project. The expected commercial operation dates for Train 1 and Train 2 are 2027 and 2028, respectively.
"We're proud to partner with Sempra to deliver a world-class LNG facility. Building from mature, scalable energy technologies helps safeguard our energy supplies and promote the transition to lower-carbon energy," said Brendan Bechtel, Chairman and CEO of Bechtel. "Bechtel has a record of delivering LNG infrastructure on the U.S. Gulf Coast and bringing quality jobs and training opportunities to local communities. The 5,000 construction jobs this project creates will provide outstanding opportunities for craft professionals — growing a skilled workforce that will benefit the region for years to come."
Local Benefits
Sempra Infrastructure believes that building strong relationships and supporting the communities where its employees live and work is fundamental to how it does business. Moreover, the company focuses its community development initiatives on local priorities including education and leadership development, environmental stewardship and safety.
Since 2015, Port Arthur LNG has invested more than $40 million to support Jefferson County communities, including working with local vendors to procure materials and services for the relocation of a 3.5-mile portion of Highway 87 and on grants to more than 60 local non-profits, schools and business development groups.
The Phase 1 project is another significant opportunity to expand Sempra Infrastructure's economic impact. The project is expected to create an estimated 5,000 highly skilled jobs during construction and boost the economies in Port Arthur and Jefferson County.
"Sempra has long been an economic driver for Jefferson County here in Southeast Texas, and this new Port Arthur LNG facility will continue that trend by bringing thousands of jobs, new markets for natural gas and more energy security for our nation," Speaker of the Texas House of Representatives Dade Phelan said. "Texas House District 21 is proud of this latest development that showcases our great state's leadership in economic development, job creation and energy production."
The successful completion of the KKR sale is subject to regulatory approvals and other customary closing conditions, and the completion of construction of Port Arthur LNG Phase 1 is subject to a number of risks and uncertainties. Additional details about these transactions can be found in the current report on Form 8-K Sempra filed with the U.S. Securities and Exchange Commission on March 20, 2023, as well as in the informational slides on the Investors section of Sempra's website at sempra.com/investors.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial measure (GAAP is generally accepted accounting principles).
Citi advised Sempra on various aspects of the transaction and J.P. Morgan Securities LLC acted as advisor on the project financing.
Saturday 18 March 2023
Cedar LNG Receives B.C. Environmental Approval and Signs Memorandum of Understanding with ARC Resources Ltd.
The Haisla Nation and Pembina Pipeline Corporation ("Pembina") (TSX: PPL; NYSE: PBA), partners in the development of the proposed Cedar LNG Project ("Cedar LNG" or the "Project"), are pleased to announce that Cedar LNG today has received its Environmental Assessment Certificate ("EAC") from the B.C. Environmental Assessment Office, and has signed a Memorandum of Understanding ("MOU") with ARC Resources Ltd. ("ARC") for a long-term liquefaction services agreement.
Cedar LNG is a proposed floating liquified natural gas ("LNG") facility located on Haisla Nation-owned land in Kitimat, B.C. with the capacity to export three million tonnes per year of LNG. It is strategically positioned to leverage Canada's abundant and sustainable natural gas supply and deliver a lower-carbon energy option to global markets.
"The receipt of our EAC is the culmination of more than a decade of work by the Haisla Nation and marks a significant milestone for the Cedar LNG project and the Haisla Nation's journey towards economic self-determination," said Crystal Smith, Chief Councillor for Haisla Nation. "With Cedar LNG, we are setting a new standard of responsible and sustainable energy development. Together with our partner, Pembina, we are committed to advancing an LNG project that protects the environment, respects Haisla Nation values, and meets the highest standards of social and environmental responsibility."
"Cedar LNG will benefit Pembina and its customers, the Haisla Nation, and all of Canada, while meaningfully contributing to the transition to a lower-carbon economy," said Scott Burrows, Pembina's President and Chief Executive Officer. "Pembina is proud of its long history of safe and reliable operations, and we look forward to contributing our expertise as we work together to bring Canadian LNG to the world."
Cedar LNG made several innovative design decisions to minimize the Project's environmental footprint and ensure it is one of the lowest-emitting LNG facilities in the world. One of the most important decisions was to power the facility with renewable electricity from BC Hydro. In addition, the choice of site location allows the Project to leverage existing LNG infrastructure, including the Coastal GasLink pipeline, with which Cedar LNG has a long-term transportation agreement, a deep-water port, roads, and other infrastructure.
Cedar LNG also received its first permit from the BC Energy Regulator for the approximately 8.5 kilometre pipeline that will connect the Project into the Coastal GasLink pipeline.
Critical to Cedar LNG's success to date has been the strong support of neighbouring Nations. Years of collaboration and constructive engagement with these Nations have helped to ensure the Project will be designed, constructed, and operated responsibly, while providing benefits through construction jobs and contracting, training opportunities, long-term employment, and other measures that will contribute to economic prosperity in the region.
Commercial Update
Cedar LNG has entered into an MOU for a 20-year liquefaction services agreement with ARC Resources. The parties are working towards finalizing a definitive agreement for 1.5 million tonnes of LNG per year, equivalent to approximately 200 million standard cubic feet per day of natural gas, or approximately half of Cedar LNG's production.
"We are pleased to partner with Cedar LNG on this important infrastructure project for Canada. Through responsible development, innovation, and collaboration, we can advance the export of more Canadian energy to global markets," said Terry Anderson, President and Chief Executive Officer, ARC Resources. "This agreement is an important step forward in delivering our low-cost, low-emission natural gas to key demand markets, and increasing ARC's exposure to LNG-linked natural gas prices."
"We are pleased to have ARC Resources as Cedar LNG's first customer. ARC's asset quality, leading ESG performance and financial strength, are important attributes in an LNG partner and will help drive our project forward," said Doug Arnell, Cedar LNG Chief Executive Officer. "In the coming months, we will be focused on advancing work across four critical streams – engineering, regulatory, commercial discussions, and financing so that we are well positioned to deliver a project the Haisla Nation, Pembina, British Columbia, and the rest of Canada will be proud to showcase."
Cedar LNG continues to progress commercial discussions with other potential customers, all of which are investment grade counterparties, for long-term volume commitments.
A final investment decision for the Project is anticipated in the third quarter of 2023.
Cedar LNG is a proposed floating liquified natural gas ("LNG") facility located on Haisla Nation-owned land in Kitimat, B.C. with the capacity to export three million tonnes per year of LNG. It is strategically positioned to leverage Canada's abundant and sustainable natural gas supply and deliver a lower-carbon energy option to global markets.
"The receipt of our EAC is the culmination of more than a decade of work by the Haisla Nation and marks a significant milestone for the Cedar LNG project and the Haisla Nation's journey towards economic self-determination," said Crystal Smith, Chief Councillor for Haisla Nation. "With Cedar LNG, we are setting a new standard of responsible and sustainable energy development. Together with our partner, Pembina, we are committed to advancing an LNG project that protects the environment, respects Haisla Nation values, and meets the highest standards of social and environmental responsibility."
"Cedar LNG will benefit Pembina and its customers, the Haisla Nation, and all of Canada, while meaningfully contributing to the transition to a lower-carbon economy," said Scott Burrows, Pembina's President and Chief Executive Officer. "Pembina is proud of its long history of safe and reliable operations, and we look forward to contributing our expertise as we work together to bring Canadian LNG to the world."
Cedar LNG made several innovative design decisions to minimize the Project's environmental footprint and ensure it is one of the lowest-emitting LNG facilities in the world. One of the most important decisions was to power the facility with renewable electricity from BC Hydro. In addition, the choice of site location allows the Project to leverage existing LNG infrastructure, including the Coastal GasLink pipeline, with which Cedar LNG has a long-term transportation agreement, a deep-water port, roads, and other infrastructure.
Cedar LNG also received its first permit from the BC Energy Regulator for the approximately 8.5 kilometre pipeline that will connect the Project into the Coastal GasLink pipeline.
Critical to Cedar LNG's success to date has been the strong support of neighbouring Nations. Years of collaboration and constructive engagement with these Nations have helped to ensure the Project will be designed, constructed, and operated responsibly, while providing benefits through construction jobs and contracting, training opportunities, long-term employment, and other measures that will contribute to economic prosperity in the region.
Commercial Update
Cedar LNG has entered into an MOU for a 20-year liquefaction services agreement with ARC Resources. The parties are working towards finalizing a definitive agreement for 1.5 million tonnes of LNG per year, equivalent to approximately 200 million standard cubic feet per day of natural gas, or approximately half of Cedar LNG's production.
"We are pleased to partner with Cedar LNG on this important infrastructure project for Canada. Through responsible development, innovation, and collaboration, we can advance the export of more Canadian energy to global markets," said Terry Anderson, President and Chief Executive Officer, ARC Resources. "This agreement is an important step forward in delivering our low-cost, low-emission natural gas to key demand markets, and increasing ARC's exposure to LNG-linked natural gas prices."
"We are pleased to have ARC Resources as Cedar LNG's first customer. ARC's asset quality, leading ESG performance and financial strength, are important attributes in an LNG partner and will help drive our project forward," said Doug Arnell, Cedar LNG Chief Executive Officer. "In the coming months, we will be focused on advancing work across four critical streams – engineering, regulatory, commercial discussions, and financing so that we are well positioned to deliver a project the Haisla Nation, Pembina, British Columbia, and the rest of Canada will be proud to showcase."
Cedar LNG continues to progress commercial discussions with other potential customers, all of which are investment grade counterparties, for long-term volume commitments.
A final investment decision for the Project is anticipated in the third quarter of 2023.
Wednesday 15 March 2023
Venture Global Announces Final Investment Decision And Financial Close For Phase Two Of Plaquemines LNG
Today Venture Global LNG is announcing a final investment decision (FID) and successful closing of the $7.8 billion project financing for the second phase of the Plaquemines LNG facility. Together, phase one and phase two represent approximately $21 billion of investment, the largest project financing ever done. The proceeds of the debt and equity financing fully fund the balance of construction and commissioning of the second phase of the 20MTPA nameplate capacity project. Today, the company also issued a full notice to proceed to KZJV to continue construction on phase two of Plaquemines LNG.
“Venture Global is proud to announce a positive Final Investment Decision (FID) for phase two of Plaquemines LNG, less than 10 months after sanctioning phase one,” said Mike Sabel, CEO of Venture Global LNG. “Our company’s continued ability to commercialize, obtain financing and build our projects in an extremely competitive market is a testament to our team’s proven track record of discipline and execution. I would like to thank our customers, lenders, advisors, construction partners and local partners in Louisiana for their continued support. Our team will continue to deliver on our mission to bring more clean, low-cost US LNG to the global market in the coming years to support the world’s rapidly growing demand for energy.”
Plaquemines LNG has received all necessary permits, including FERC authorization and non-FTA export authorization from the U.S. Department of Energy. Plaquemines LNG phase two customers include ExxonMobil, Chevron, EnBW, New Fortress Energy, China Gas, PETRONAS and Excelerate Energy. Marketing is actively underway for the company’s third facility, CP2 LNG, and SPAs have been signed by CP2 LNG with Exxon Mobil, Chevron, EnBW, INPEX, China Gas and New Fortress Energy.
The lender group for the construction financing includes the world’s leading banks. The lenders who provided funding at closing are: BBVA, Banco Santander, Bank of America, Bank of China, Caixa Bank, Deutsche Bank, Goldman Sachs, ICBC Standard, ING, J.P. Morgan Chase, LBBW, Mizuho, MUFG, Natixis, Royal Bank of Canada, Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia, Wells Fargo Bank, National Bank of Canada, KfW Ipex-Bank, Helaba, DZ Bank and Regions Bank.
ING, Santander, Mizuho, Scotia, and SMBC served as Lead Banks to Venture Global for the transaction. Latham & Watkins LLP served as counsel to Venture Global and Skadden, Arps, Slate, Meagher & Flom LLP served as counsel to the lenders.
“Venture Global is proud to announce a positive Final Investment Decision (FID) for phase two of Plaquemines LNG, less than 10 months after sanctioning phase one,” said Mike Sabel, CEO of Venture Global LNG. “Our company’s continued ability to commercialize, obtain financing and build our projects in an extremely competitive market is a testament to our team’s proven track record of discipline and execution. I would like to thank our customers, lenders, advisors, construction partners and local partners in Louisiana for their continued support. Our team will continue to deliver on our mission to bring more clean, low-cost US LNG to the global market in the coming years to support the world’s rapidly growing demand for energy.”
Plaquemines LNG has received all necessary permits, including FERC authorization and non-FTA export authorization from the U.S. Department of Energy. Plaquemines LNG phase two customers include ExxonMobil, Chevron, EnBW, New Fortress Energy, China Gas, PETRONAS and Excelerate Energy. Marketing is actively underway for the company’s third facility, CP2 LNG, and SPAs have been signed by CP2 LNG with Exxon Mobil, Chevron, EnBW, INPEX, China Gas and New Fortress Energy.
The lender group for the construction financing includes the world’s leading banks. The lenders who provided funding at closing are: BBVA, Banco Santander, Bank of America, Bank of China, Caixa Bank, Deutsche Bank, Goldman Sachs, ICBC Standard, ING, J.P. Morgan Chase, LBBW, Mizuho, MUFG, Natixis, Royal Bank of Canada, Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia, Wells Fargo Bank, National Bank of Canada, KfW Ipex-Bank, Helaba, DZ Bank and Regions Bank.
ING, Santander, Mizuho, Scotia, and SMBC served as Lead Banks to Venture Global for the transaction. Latham & Watkins LLP served as counsel to Venture Global and Skadden, Arps, Slate, Meagher & Flom LLP served as counsel to the lenders.
Monday 6 March 2023
Chesapeake Energy Corporation And Gunvor Sign Long-Term LNG Supply Agreement Indexed To Japan Korea Marker
Chesapeake Energy Corporation (NASDAQ: CHK) and Gunvor Group Ltd today announced that Gunvor Singapore Pte Ltd ("Gunvor") has entered into a Heads of Agreement ("HOA") with Chesapeake Energy Marketing L.L.C. ("Chesapeake") a subsidiary of Chesapeake Energy Corporation.
Under the HOA, Chesapeake will supply up to 2 million tonnes of LNG per annum to Gunvor with the purchase price indexed to Japan Korea Marker ("JKM") for a period of 15 years. Following the execution of the HOA, Chesapeake and Gunvor will jointly select the most optimal liquefaction facility in the United States to liquify the gas produced by Chesapeake and deliver the LNG to Gunvor on a Free-on-Board ("FOB") basis with a targeted start date in 2027.
Nick Dell'Osso, Chesapeake President and Chief Executive Officer, said "This agreement reflects the powerful combination of the premium rock, returns, and runway of our competitively positioned Haynesville natural gas assets combined with the strength of our balance sheet and financial position to securely supply global LNG markets. We are pleased to partner with Gunvor, a leading global commodity and energy logistics company with a deep LNG track record, to deliver independently certified reliable, affordable, lower carbon energy to markets in need. Today marks an important initial step on our path to being LNG ready and we look forward to entering into additional agreements while export capacity continues to come online."
Kalpesh Patel, Co-Head of LNG Trading and a member of the Executive Committee of Gunvor, said, "We are excited to establish this partnership with Chesapeake which will further enhance our global LNG portfolio. We believe our trading expertise together with our robust shipping fleet will not only contribute to the competitive shipping costs, but also ensure reliable offtake operations for Chesapeake and the liquefaction facility which we will jointly select. We very much look forward to the long-term relationship with Chesapeake."
Under the HOA, Chesapeake will supply up to 2 million tonnes of LNG per annum to Gunvor with the purchase price indexed to Japan Korea Marker ("JKM") for a period of 15 years. Following the execution of the HOA, Chesapeake and Gunvor will jointly select the most optimal liquefaction facility in the United States to liquify the gas produced by Chesapeake and deliver the LNG to Gunvor on a Free-on-Board ("FOB") basis with a targeted start date in 2027.
Nick Dell'Osso, Chesapeake President and Chief Executive Officer, said "This agreement reflects the powerful combination of the premium rock, returns, and runway of our competitively positioned Haynesville natural gas assets combined with the strength of our balance sheet and financial position to securely supply global LNG markets. We are pleased to partner with Gunvor, a leading global commodity and energy logistics company with a deep LNG track record, to deliver independently certified reliable, affordable, lower carbon energy to markets in need. Today marks an important initial step on our path to being LNG ready and we look forward to entering into additional agreements while export capacity continues to come online."
Kalpesh Patel, Co-Head of LNG Trading and a member of the Executive Committee of Gunvor, said, "We are excited to establish this partnership with Chesapeake which will further enhance our global LNG portfolio. We believe our trading expertise together with our robust shipping fleet will not only contribute to the competitive shipping costs, but also ensure reliable offtake operations for Chesapeake and the liquefaction facility which we will jointly select. We very much look forward to the long-term relationship with Chesapeake."
Sunday 5 March 2023
Excelerate Energy and Venture Global Announce Sales and Purchase Agreement
Excelerate Energy, Inc. (the “Company” or “Excelerate”) (NYSE: EE) and Venture Global LNG announced today the execution of a 20-year LNG Sales and Purchase Agreement (SPA). Under the SPA, Excelerate will purchase 0.7 million tonnes per annum (MTPA) of liquefied natural gas (LNG) on a free on board (FOB) basis from the Plaquemines LNG facility in Plaquemines Parish, Louisiana.
“We are proud to enter this new strategic partnership with Venture Global, which supports our efforts to enhance energy security and accelerate the energy transition by delivering natural gas to our customers worldwide,” said Steven Kobos, President and Chief Executive Officer of Excelerate. “This agreement is an important milestone for Excelerate as we continue to execute our growth strategy. Building a diversified LNG supply portfolio with strong partners like Venture Global will allow us to offer more flexible and cost-effective products to existing and new customers in downstream markets.”
“Venture Global is thrilled to launch this new collaboration with Excelerate, a leader in the FSRU industry, as their inaugural long-term LNG supplier,” said Mike Sabel, Chief Executive Officer of Venture Global. “Their foresight and transformational work to bring much needed energy infrastructure to markets around the globe has enabled countries from Europe, the global south, and the developing world to fuel switch from coal to natural gas while lifting millions out of energy poverty. We look forward to many years ahead of working together as strategic partners to fuel these diverse markets worldwide.”
bp and partners progress concept for Greater Tortue Ahmeyim (GTA) Phase 2 to next phase of evaluation
bp and partners today confirmed the development concept for the second phase of the bp-operated Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project that they will take forward to the next stage of evaluation.
The partnership – composed of bp, PETROSEN, Société Mauritanienne des Hydrocarbures (SMH) and Kosmos Energy – will evaluate a gravity-based structure (GBS) as the basis for the GTA Phase 2 expansion project (GTA2) with total capacity of between 2.5-3.0 million tonnes per annum.
GBS LNG developments have a static connection to the seabed with the structure providing LNG storage and a foundation for liquefication facilities.
The concept design will also include new wells and subsea equipment, integrating with and expanding on existing GTA infrastructure. The partnership will consider powering LNG liquefication using electricity to help drive operational emissions lower. bp and its partners are now working with contractors to progress the concept towards the pre-FEED stage.
Gordon Birrell, bp’s executive vice president for operations and production, said: “We aim to build on our strong collaboration with our partners, and the Governments of Mauritania and Senegal, to further develop a long-term, successful energy hub in West Africa. GTA continues to underpin our strategy to develop the most resilient hydrocarbons to help provide energy security today.”
GTA is located 120km offshore in water depth of 2850m, one of the deepest subsea developments in Africa. Phase 1 – currently under development - will export gas to an FPSO approximately 40km offshore where the gas will be processed and liquids separated, before exporting gas onward to floating LNG facilities 10km offshore. It is expected to produce around 2.3 million tonnes of LNG per year when operations commence.
In July 2021, the GTA project was granted the status of ‘National Project of Strategic Importance’ by the Presidents of Mauritania and Senegal. This recognition demonstrates the commitment of the host governments and the significance of the project to both countries.
bp and the two Governments already have a long-standing and wide-ranging cooperation encompassing the GTA project and other potential energy developments. In October 2022, bp announced the signature of an exploration and production sharing contract for the BirAllah gas resource in Mauritania. In addition, bp continues to work with partners on the development of a major gas-to-power project in Senegal, Yakaar Teranga.
Most recently, bp signed a memorandum of understanding (MoU) with the Government of Mauritania to deliver a programme exploring the potential for large-scale production of green hydrogen in the country.
The partnership – composed of bp, PETROSEN, Société Mauritanienne des Hydrocarbures (SMH) and Kosmos Energy – will evaluate a gravity-based structure (GBS) as the basis for the GTA Phase 2 expansion project (GTA2) with total capacity of between 2.5-3.0 million tonnes per annum.
GBS LNG developments have a static connection to the seabed with the structure providing LNG storage and a foundation for liquefication facilities.
The concept design will also include new wells and subsea equipment, integrating with and expanding on existing GTA infrastructure. The partnership will consider powering LNG liquefication using electricity to help drive operational emissions lower. bp and its partners are now working with contractors to progress the concept towards the pre-FEED stage.
Gordon Birrell, bp’s executive vice president for operations and production, said: “We aim to build on our strong collaboration with our partners, and the Governments of Mauritania and Senegal, to further develop a long-term, successful energy hub in West Africa. GTA continues to underpin our strategy to develop the most resilient hydrocarbons to help provide energy security today.”
GTA is located 120km offshore in water depth of 2850m, one of the deepest subsea developments in Africa. Phase 1 – currently under development - will export gas to an FPSO approximately 40km offshore where the gas will be processed and liquids separated, before exporting gas onward to floating LNG facilities 10km offshore. It is expected to produce around 2.3 million tonnes of LNG per year when operations commence.
In July 2021, the GTA project was granted the status of ‘National Project of Strategic Importance’ by the Presidents of Mauritania and Senegal. This recognition demonstrates the commitment of the host governments and the significance of the project to both countries.
bp and the two Governments already have a long-standing and wide-ranging cooperation encompassing the GTA project and other potential energy developments. In October 2022, bp announced the signature of an exploration and production sharing contract for the BirAllah gas resource in Mauritania. In addition, bp continues to work with partners on the development of a major gas-to-power project in Senegal, Yakaar Teranga.
Most recently, bp signed a memorandum of understanding (MoU) with the Government of Mauritania to deliver a programme exploring the potential for large-scale production of green hydrogen in the country.
Enagás has acquired the Reganosa network of natural gas pipelines, which will enter into the shareholding of El Musel Regasification Plant with 25%
Enagás and Reganosa have signed an agreement by which Enagás has acquired a network of 130 km of natural gas pipelines from Reganosa for 54 million euros. In return Reganosa has purchased a 25% stake in the El Musel Regasification plant in Gijon for 95 million euros.
According to the agreement terms, Enagás acquires the whole of the transmission network which up to now was owned by Reganosa and consists of 130 km of gas pipelines of 80 bar. This network is included in the Backbone network and is key to guarantee the security of supply as well as the proper functioning of the Iberian gas market. It connects to the LNG terminal of Mugardos and the Tui - Llanera gas pipeline in Guitiriz and Abegondo. It has three measuring stations, three regulation and measurement stations and thirteen valve positions. The transmission network brings natural gas directly to the combined cycle power plants of As Pontes (800 MW) and Sabón (400 MW), to the refinery of A Coruña (120.000 barrels/day) and the towns of As Pontes and Cerceda.
In addition, Reganosa has given Enagás its position as promoter of the hydrogen pipeline between Guitiriz (Lugo) and Zamora, candidate for Project of Common Interest (PCI). Enagás, for its part, undertakes to promote the development of this transmission infrastructure and its connection to the interconnection with Portugal, ensuring the full integration of renewable hydrogen production in the area with the future hydrogen corridors in the Iberian Peninsula, with the aim of it becoming operational by 2030. Enagás will promote and give continuity to the processing of this infrastructure as PCI and will have the support of Reganosa to expedite its approval. The agreement favours the creation of a large energy hub in the north-west of the peninsula which will reinforce Spain’s role as the hub for renewable hydrogen in Europe.
For its part Reganosa enters the shareholding with a 25% of the El Musel Terminal in Gijon, which until now was solely the property of Enagás and which has a storage capacity of 300,000m3 of LNG, shared between two tanks of 150,000 m3 each. It also has mooring and unloading installations designed for the largest methane vessels in the world, the QMAX of up to 266,000 m3.
The El Musel terminal, as contemplated in the Government’s Plan for More Energy Security, is ready to be put into operation for logistical use soon, once the current administrative procedures are completed. Once in operation, it can provide up to 8 billion cubic meters (bcm)/year of liquefied natural gas (LNG) to strengthen Europe’s energy security of supply.
This agreement reinforces both companies, allowing to take advantage of their synergies and work together on new possibilities for collaboration to strengthen security of supply and progress with the decarbonisation objectives of Spain and Europe.
The CEO of Enagás, Arturo Gonzalo, highlighted that “this is a historical agreement that reinforces the strategy of both companies and strengthens the Spanish Gas System. The agreement will also contribute to reinforce the terminal’s potential of the El Musel and promotes our investment plan in Galicia”. “There are many synergies between the two companies and this operation makes us better prepared to face the challenges we have ahead of us such as continuing to guarantee the energy supply in Spain and Europe and contribute to decarbonisation. In this line, this alliance is also a boost to Spain’s role as a hub for renewable hydrogen in Europe". Arturo Gonzalo added that “together, Reganosa and Enagás, will continue to explore new possibilities for collaboration”.
“The public-private collaboration and the cooperation between companies are in the origin of Reganosa, are part of its DNA. This is one more example, a historical one”, stated the general director of Reganosa, Emilio Bruquetas. “We are proud to be able to contribute, together with Enagás, to the development of the north-west of the peninsula, to the strengthening of the Spanish energy system, to increasing security of supply and to achieving the objectives of decarbonisation of the economy".
Finally, Bruquetas added: “The north-east of Spain has exceptional conditions for the production of green hydrogen and biogas. This alliance strengthens the future, lays the foundations for all the key infrastructures in the development of renewable gases to be built and operate at the service of the system".
The transaction is subject to approvals and suspensive conditions of such operations.
According to the agreement terms, Enagás acquires the whole of the transmission network which up to now was owned by Reganosa and consists of 130 km of gas pipelines of 80 bar. This network is included in the Backbone network and is key to guarantee the security of supply as well as the proper functioning of the Iberian gas market. It connects to the LNG terminal of Mugardos and the Tui - Llanera gas pipeline in Guitiriz and Abegondo. It has three measuring stations, three regulation and measurement stations and thirteen valve positions. The transmission network brings natural gas directly to the combined cycle power plants of As Pontes (800 MW) and Sabón (400 MW), to the refinery of A Coruña (120.000 barrels/day) and the towns of As Pontes and Cerceda.
In addition, Reganosa has given Enagás its position as promoter of the hydrogen pipeline between Guitiriz (Lugo) and Zamora, candidate for Project of Common Interest (PCI). Enagás, for its part, undertakes to promote the development of this transmission infrastructure and its connection to the interconnection with Portugal, ensuring the full integration of renewable hydrogen production in the area with the future hydrogen corridors in the Iberian Peninsula, with the aim of it becoming operational by 2030. Enagás will promote and give continuity to the processing of this infrastructure as PCI and will have the support of Reganosa to expedite its approval. The agreement favours the creation of a large energy hub in the north-west of the peninsula which will reinforce Spain’s role as the hub for renewable hydrogen in Europe.
For its part Reganosa enters the shareholding with a 25% of the El Musel Terminal in Gijon, which until now was solely the property of Enagás and which has a storage capacity of 300,000m3 of LNG, shared between two tanks of 150,000 m3 each. It also has mooring and unloading installations designed for the largest methane vessels in the world, the QMAX of up to 266,000 m3.
The El Musel terminal, as contemplated in the Government’s Plan for More Energy Security, is ready to be put into operation for logistical use soon, once the current administrative procedures are completed. Once in operation, it can provide up to 8 billion cubic meters (bcm)/year of liquefied natural gas (LNG) to strengthen Europe’s energy security of supply.
This agreement reinforces both companies, allowing to take advantage of their synergies and work together on new possibilities for collaboration to strengthen security of supply and progress with the decarbonisation objectives of Spain and Europe.
The CEO of Enagás, Arturo Gonzalo, highlighted that “this is a historical agreement that reinforces the strategy of both companies and strengthens the Spanish Gas System. The agreement will also contribute to reinforce the terminal’s potential of the El Musel and promotes our investment plan in Galicia”. “There are many synergies between the two companies and this operation makes us better prepared to face the challenges we have ahead of us such as continuing to guarantee the energy supply in Spain and Europe and contribute to decarbonisation. In this line, this alliance is also a boost to Spain’s role as a hub for renewable hydrogen in Europe". Arturo Gonzalo added that “together, Reganosa and Enagás, will continue to explore new possibilities for collaboration”.
“The public-private collaboration and the cooperation between companies are in the origin of Reganosa, are part of its DNA. This is one more example, a historical one”, stated the general director of Reganosa, Emilio Bruquetas. “We are proud to be able to contribute, together with Enagás, to the development of the north-west of the peninsula, to the strengthening of the Spanish energy system, to increasing security of supply and to achieving the objectives of decarbonisation of the economy".
Finally, Bruquetas added: “The north-east of Spain has exceptional conditions for the production of green hydrogen and biogas. This alliance strengthens the future, lays the foundations for all the key infrastructures in the development of renewable gases to be built and operate at the service of the system".
The transaction is subject to approvals and suspensive conditions of such operations.
Saturday 4 March 2023
Freeport LNG Receives Regulatory Approval for Commercial Operations of its Liquefaction Facility
Freeport LNG Development, L.P. (Freeport LNG) today announced that it has received regulatory approval to commence commercial operations of the company’s natural gas liquefaction and export facility. Today’s authorization provides for the immediate full return to service of one liquefaction train, that has already restarted, and the incremental restart and full return to service of a second train. The
restart and return to service of Freeport LNG’s third liquefaction train will require subsequent regulatory approval once certain operational conditions are met. A conservative ramp-up profile to establish three-train production of approximately 2.0 billion cubic feet per day is anticipated to occur over the next several weeks as stable operation of each incremental train is established and maintained. Operations are initially utilizing two of Freeport LNG’s three LNG storage tanks and one of its two LNG berths. The second LNG berth and third LNG storage tank are expected to return to service in May. First LNG production and ship loading from the facility began on February 11.
“Returning to liquefaction operations is a significant achievement for Freeport LNG,” said Michael Smith, Freeport LNG Founder, Chairman and CEO. “Over the past eight months, we have implemented enhancements to our processes, procedures and training to ensure safe and reliable operations, and significantly increased staffing levels with extensive LNG and petrochemical operating experience to reduce overtime, enhance operational excellence, and improve quality assurance and business performance. Eight months of diligence, discipline and dedicated efforts by our teams, working collaboratively alongside the regulatory agencies and local officials, have positioned us to resume LNG production and commence ramp-up to the safe establishment of commercial operations of our liquefaction facility.”
restart and return to service of Freeport LNG’s third liquefaction train will require subsequent regulatory approval once certain operational conditions are met. A conservative ramp-up profile to establish three-train production of approximately 2.0 billion cubic feet per day is anticipated to occur over the next several weeks as stable operation of each incremental train is established and maintained. Operations are initially utilizing two of Freeport LNG’s three LNG storage tanks and one of its two LNG berths. The second LNG berth and third LNG storage tank are expected to return to service in May. First LNG production and ship loading from the facility began on February 11.
“Returning to liquefaction operations is a significant achievement for Freeport LNG,” said Michael Smith, Freeport LNG Founder, Chairman and CEO. “Over the past eight months, we have implemented enhancements to our processes, procedures and training to ensure safe and reliable operations, and significantly increased staffing levels with extensive LNG and petrochemical operating experience to reduce overtime, enhance operational excellence, and improve quality assurance and business performance. Eight months of diligence, discipline and dedicated efforts by our teams, working collaboratively alongside the regulatory agencies and local officials, have positioned us to resume LNG production and commence ramp-up to the safe establishment of commercial operations of our liquefaction facility.”
Cheniere Initiates Permitting Process for Significant Expansion of LNG Export Capacity at Sabine Pass
Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American: CQP), a subsidiary of Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG), announced today that certain of its subsidiaries have initiated the pre-filing review process under the National Environmental Policy Act with the Federal Energy Regulatory Commission (“FERC”) for the proposed Sabine Pass Stage 5 Expansion Project (the “SPL Expansion Project”) adjacent to the existing Sabine Pass Liquefaction Project (the “SPL Project”). The SPL Expansion Project is being designed for total production capacity of approximately 20 million tonnes per annum (“mtpa”) of liquefied natural gas (“LNG”).
The SPL Expansion Project is being designed to include up to three large-scale liquefaction trains, each with a production capacity of approximately 6.5 mtpa of LNG, a boil-off-gas (“BOG”) re-liquefaction unit with an approximate production capacity of 0.75 mtpa of LNG, and two 220,000m3 LNG storage tanks. The SPL Expansion Project is being designed with accommodations for waste heat recovery as well as carbon capture from acid gas removal units.
The SPL Expansion Project is expected to benefit from the significant existing infrastructure at the SPL Project and contemplates various enhancements to its current capabilities, including optimized ship loading at the existing marine facilities. Feed gas related to the SPL Expansion Project is expected to be transported via a combination of new and existing pipelines currently supplying the SPL Project.
Cheniere Partners has engaged Bechtel Energy, Inc. to complete a Front-End Engineering and Design (FEED) study of the SPL Expansion Project.
“As the first and largest LNG export facility in the Lower 48, Sabine Pass has pioneered an industry critical to supplying reliable, flexible, and cleaner burning natural gas to markets and customers around the world, and we look forward to significantly growing those capabilities through the SPL Expansion Project,” said Jack Fusco, Chairman, President and CEO of Cheniere Partners. “The SPL Expansion Project is being designed to leverage the infrastructure platform we’ve built at Sabine Pass to deliver economically advantaged incremental LNG capacity in a safe and environmentally responsible manner. We are committed to developing the SPL Expansion Project utilizing the same rigorous and financially disciplined approach to project development and capital investment that’s become synonymous with the Cheniere brand.”
The development of the SPL Expansion Project, and any necessary supporting infrastructure, is subject to receipt of all required regulatory approvals and permits, and sufficient commercial and financing arrangements before a final investment decision (“FID”) can be reached.
The SPL Expansion Project is being designed to include up to three large-scale liquefaction trains, each with a production capacity of approximately 6.5 mtpa of LNG, a boil-off-gas (“BOG”) re-liquefaction unit with an approximate production capacity of 0.75 mtpa of LNG, and two 220,000m3 LNG storage tanks. The SPL Expansion Project is being designed with accommodations for waste heat recovery as well as carbon capture from acid gas removal units.
The SPL Expansion Project is expected to benefit from the significant existing infrastructure at the SPL Project and contemplates various enhancements to its current capabilities, including optimized ship loading at the existing marine facilities. Feed gas related to the SPL Expansion Project is expected to be transported via a combination of new and existing pipelines currently supplying the SPL Project.
Cheniere Partners has engaged Bechtel Energy, Inc. to complete a Front-End Engineering and Design (FEED) study of the SPL Expansion Project.
“As the first and largest LNG export facility in the Lower 48, Sabine Pass has pioneered an industry critical to supplying reliable, flexible, and cleaner burning natural gas to markets and customers around the world, and we look forward to significantly growing those capabilities through the SPL Expansion Project,” said Jack Fusco, Chairman, President and CEO of Cheniere Partners. “The SPL Expansion Project is being designed to leverage the infrastructure platform we’ve built at Sabine Pass to deliver economically advantaged incremental LNG capacity in a safe and environmentally responsible manner. We are committed to developing the SPL Expansion Project utilizing the same rigorous and financially disciplined approach to project development and capital investment that’s become synonymous with the Cheniere brand.”
The development of the SPL Expansion Project, and any necessary supporting infrastructure, is subject to receipt of all required regulatory approvals and permits, and sufficient commercial and financing arrangements before a final investment decision (“FID”) can be reached.
Subscribe to:
Posts (Atom)