On 18 August 2023, GAZ-SYSTEM and ORLEN signed an agreement for the provision of regasification services at the FSRU Terminal in the Gulf of Gdańsk, which will constitute an important element of the gas import infrastructure for Poland and the entire CEE region.
The FSRU Terminal project assumes the construction of a Floating Storage Regasification Unit (FSRU) located in the Gdańsk area, designed to perform regasification process of 6.1 bcm of gaseous fuel per year. The regasification agreement was signed in the aftermath of the Open Season procedure in which ORLEN submitted an order covering 100% of the Regasification Services offered by GAZ-SYSTEM.
The signing ceremony was attended by Anna Łukaszewska-Trzeciakowska, Secretary of State and Government Plenipotentiary for Strategic Energy Infrastructure. The Minister emphasised the strategic importance of the project implemented by GAZ-SYSTEM and the pivotal role of LNG supplies, especially after the termination of natural gas import from Russia:
- Last year, as a result of the political impact of the war in Ukraine, the directions of natural gas supplies to the European Union have been completely reorganised. We can see over 60% increase in LNG supplies from the global market. Poland, as a beneficiary of this trend, seeks to become a gas hub for Central and Eastern Europe, said Minister Anna Łukaszewska-Trzeciakowska.
The FSRU terminal in Gdańsk contributes to the process of the country's energy and economic transition towards less carbon-intensive energy sources. The FSRU Terminal project, market-confirmed by Orlen Group, constitutes another element of the country's energy security scheme based on sound economic rationale. Following the recently completed interconnections with Denmark, Lithuania and Slovakia and the expansion of the LNG Terminal in Świnoujście, this project will increase the diversification of natural gas supplies to Poland and the Intermarium region, said Marcin Chludziński, President of GAZ-SYSTEM Management Board.
At present, GAZ-SYSTEM sees unprecedented increase in market demand for liquefied natural gas supplies; in response to this growing interest, the Company is already undertaking measures to expand regasification capacity of the FSRU Terminal:
- Given the growing interest across the entire CEE region in diversification of gas supply sources based on LNG, we are currently conducting an Open Season procedure for the second FSRU Terminal. Assuming its positive outcome, we could launch the second FSRU which would allow us to increase the regasification capacity of the facility by additional 4.5 bcm of gaseous fuel per year, said Andrzej Kensbok - Vice-President of GAZ-SYSTEM Management Board.
For ORLEN company, liquefied natural gas constitutes one of the pillars of diversification strategy and the development of long-term commercial potential:
- The fuel and energy security of Poland has always been and continues to be our priority. The need for enhanced security constituted one of the arguments for building a strong multiutility group. Owing to the merger with LOTOS, PGNiG and Energa, we have the potential to engage in further projects that contribute to the energy independence of the country and the region. One of such projects is the planned floating LNG terminal in the Gulf of Gdańsk, the entire regasification capacity of which has just been booked by ORLEN. Including President Lech Kaczyński's LNG Terminal in Świnoujście already in operation, it will enable the company to receive all the LNG to be supplied under long-term contracts we have signed. At present, this volume accounts for almost 14 bcm per year. Such quantity of gaseous fuel supplemented by imports from Norway and our own domestic production, will allow us not only to fully satisfy the needs of Polish customers, but also to offer gas to neighbouring markets. Consequently, ORLEN will be a guarantor of fuel and energy security not only internally, but also in other countries in the region, explains Daniel Obajtek, President of the Management Board of ORLEN.
Currently, the FSRU Terminal in Gdańsk is at an advanced design stage. In July, GAZ-SYSTEM completed the process of obtaining administrative decisions for all three onshore gas pipeline projects implemented as part of the FSRU project: Kolnik - Gdańsk, Gardeja - Kolnik and Gustorzyn - Gardeja, of a total length of approx. 250 km and a diameter of 1,000 mm. It is expected that the construction of these connections will commence in 2024. As part of the offshore part of the FSRU project, the pending works include the design of a mooring berth for the FSRU floating terminal together with the offshore section of the gas pipeline, which will run on the sea bed in the Gulf of Gdańsk.
Tuesday 22 August 2023
Cheniere and BASF Sign Long-Term LNG Sale and Purchase Agreement
Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE American: LNG) announced today that Cheniere’s subsidiary, Cheniere Marketing, LLC (“Cheniere Marketing”), has entered into a long-term liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”) with BASF (“BASF”).
Under the SPA, BASF has agreed to purchase up to approximately 0.8 million tonnes per annum (“mtpa”) of LNG from Cheniere Marketing on a free-on-board (“FOB”) basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will commence in mid-2026 and, subject to a positive Final Investment Decision with respect to the first train (“Train Seven”) of the Sabine Pass Liquefaction Expansion Project (“SPL Expansion Project”) in Louisiana, will increase to approximately 0.8 mtpa upon the start of commercial operations of Train Seven. The term of the SPA extends through 2043.
“We are pleased to enter into this long-term relationship with BASF, a global leader in the chemical industry,” said Anatol Feygin, Cheniere’s Executive Vice President and Chief Commercial Officer. “This SPA demonstrates the critical role US natural gas plays in providing long-term secure, sustainable and affordable energy for Europe. With this agreement, we are supporting the objectives of one of Europe’s key industrial end-use consumers to ensure stability of its supply chain.”
“By establishing our own dedicated LNG supply chain with Cheniere, we are diversifying our energy and raw materials portfolio at a time of critical changes in the European gas market, which is marked by increased demand and volatile prices for LNG,” said Dr. Dirk Elvermann, BASF’s Chief Financial Officer. “While we are reducing our dependence on fossil fuels to reach our goal of net zero CO2 emissions by 2050, this agreement will ensure reliable supply of natural gas at competitive terms.”
The SPL Expansion Project is being developed for up to approximately 20 mtpa of total LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, L.P. (NYSE American: CQP) entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission under the National Environmental Policy Act.
Under the SPA, BASF has agreed to purchase up to approximately 0.8 million tonnes per annum (“mtpa”) of LNG from Cheniere Marketing on a free-on-board (“FOB”) basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will commence in mid-2026 and, subject to a positive Final Investment Decision with respect to the first train (“Train Seven”) of the Sabine Pass Liquefaction Expansion Project (“SPL Expansion Project”) in Louisiana, will increase to approximately 0.8 mtpa upon the start of commercial operations of Train Seven. The term of the SPA extends through 2043.
“We are pleased to enter into this long-term relationship with BASF, a global leader in the chemical industry,” said Anatol Feygin, Cheniere’s Executive Vice President and Chief Commercial Officer. “This SPA demonstrates the critical role US natural gas plays in providing long-term secure, sustainable and affordable energy for Europe. With this agreement, we are supporting the objectives of one of Europe’s key industrial end-use consumers to ensure stability of its supply chain.”
“By establishing our own dedicated LNG supply chain with Cheniere, we are diversifying our energy and raw materials portfolio at a time of critical changes in the European gas market, which is marked by increased demand and volatile prices for LNG,” said Dr. Dirk Elvermann, BASF’s Chief Financial Officer. “While we are reducing our dependence on fossil fuels to reach our goal of net zero CO2 emissions by 2050, this agreement will ensure reliable supply of natural gas at competitive terms.”
The SPL Expansion Project is being developed for up to approximately 20 mtpa of total LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, L.P. (NYSE American: CQP) entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission under the National Environmental Policy Act.
Monday 7 August 2023
Air Products’ LNG Liquefaction Technology and Equipment Selected for NextDecade’s Rio Grande LNG Project
Air Products (NYSE: APD), the world’s leader in liquefied natural gas (LNG) technology and equipment, today announced it has signed agreements with Bechtel Energy Inc. to supply its proprietary LNG process technology and equipment to NextDecade’s Rio Grande LNG Phase 1 Project in the Port of Brownsville, Texas. The project will include three natural gas liquefaction trains employing Air Products’ liquefaction equipment with a production capability of approximately 17.6 million tonnes per annum (MTPA) of LNG.
Air Products’ coil-wound heat exchangers (CWHEs) and AP-C3MR™ LNG Process technology have been selected for their proven reliability for large-scale LNG production. The CWHEs will be manufactured at Air Products’ world-class LNG equipment manufacturing facility in Port Manatee, Florida.
“We are pleased to be selected to provide our LNG technology and equipment for the Rio Grande LNG project with its focus on sustainability. Air Products’ LNG processes and equipment provide for low emissions and carbon intensity with the AP-C3MR LNG Process being the industry standard and used to produce more LNG than any other process in the world. Additionally, this project enables us to further support the growing North American LNG market,” said Dr. Samir J. Serhan, Air Products’ Chief Operating Officer.
“We’re proud to partner with Air Products, who like Bechtel bring a proven track record of excellence to the Rio Grande LNG project,” said Paul Marsden, President of Bechtel Energy. “Using Air Products’ state-of-the-art liquefaction technology, we look forward to delivering an exactingly engineered, world-class plant that will enable NextDecade to produce lower carbon-intensive LNG, contributing to energy security and supporting the energy transition.”
Air Products’ LNG equipment manufacturing facility opened in January 2014 and completed a 60% expansion in October 2019 to meet the needs of the ever-growing LNG industry. In October 2018, a new LNG equipment test facility (ETF) was dedicated, which enables Air Products to continually improve the reliability and yield produced from its LNG equipment, and to design new equipment.
Air Products’ proprietary LNG process technology and equipment, vital to helping meet the world’s increasing energy needs and desire for clean energy, processes and cryogenically liquefies valuable natural gas for consumer and industrial use. For over 50 years Air Products has manufactured LNG heat exchangers, which currently operate in over 100 LNG trains in 20 countries around the world.
Typically, an LNG heat exchanger can be as large as over 15 feet (5 meters) in diameter and 180 feet (55 meters) long. A finished unit can weigh as much as 500 tons.
Air Products’ LNG process technology and equipment is the heart of an LNG production plant. The technology, in place at some of the most remote locations around the world, takes natural gas and unlocks its value by liquefying it and making it possible to ship it economically. Typically, the LNG is eventually re-gasified for energy uses.
The majority of total worldwide LNG is produced with Air Products’ technology. In support of the LNG industry, Air Products provides process technology and key equipment for the natural gas liquefaction process for large export plants, small and mid-sized LNG plants, floating LNG plants and LNG peak shavers. Upstream, Air Products provides both nitrogen and natural gas dehydration membrane systems for offshore platforms. Downstream, Air Products provides membrane nitrogen generators for LNG carriers and land-based membrane and cryogenic nitrogen systems for LNG import terminals and baseload LNG plants.
Air Products’ coil-wound heat exchangers (CWHEs) and AP-C3MR™ LNG Process technology have been selected for their proven reliability for large-scale LNG production. The CWHEs will be manufactured at Air Products’ world-class LNG equipment manufacturing facility in Port Manatee, Florida.
“We are pleased to be selected to provide our LNG technology and equipment for the Rio Grande LNG project with its focus on sustainability. Air Products’ LNG processes and equipment provide for low emissions and carbon intensity with the AP-C3MR LNG Process being the industry standard and used to produce more LNG than any other process in the world. Additionally, this project enables us to further support the growing North American LNG market,” said Dr. Samir J. Serhan, Air Products’ Chief Operating Officer.
“We’re proud to partner with Air Products, who like Bechtel bring a proven track record of excellence to the Rio Grande LNG project,” said Paul Marsden, President of Bechtel Energy. “Using Air Products’ state-of-the-art liquefaction technology, we look forward to delivering an exactingly engineered, world-class plant that will enable NextDecade to produce lower carbon-intensive LNG, contributing to energy security and supporting the energy transition.”
Air Products’ LNG equipment manufacturing facility opened in January 2014 and completed a 60% expansion in October 2019 to meet the needs of the ever-growing LNG industry. In October 2018, a new LNG equipment test facility (ETF) was dedicated, which enables Air Products to continually improve the reliability and yield produced from its LNG equipment, and to design new equipment.
Air Products’ proprietary LNG process technology and equipment, vital to helping meet the world’s increasing energy needs and desire for clean energy, processes and cryogenically liquefies valuable natural gas for consumer and industrial use. For over 50 years Air Products has manufactured LNG heat exchangers, which currently operate in over 100 LNG trains in 20 countries around the world.
Typically, an LNG heat exchanger can be as large as over 15 feet (5 meters) in diameter and 180 feet (55 meters) long. A finished unit can weigh as much as 500 tons.
Air Products’ LNG process technology and equipment is the heart of an LNG production plant. The technology, in place at some of the most remote locations around the world, takes natural gas and unlocks its value by liquefying it and making it possible to ship it economically. Typically, the LNG is eventually re-gasified for energy uses.
The majority of total worldwide LNG is produced with Air Products’ technology. In support of the LNG industry, Air Products provides process technology and key equipment for the natural gas liquefaction process for large export plants, small and mid-sized LNG plants, floating LNG plants and LNG peak shavers. Upstream, Air Products provides both nitrogen and natural gas dehydration membrane systems for offshore platforms. Downstream, Air Products provides membrane nitrogen generators for LNG carriers and land-based membrane and cryogenic nitrogen systems for LNG import terminals and baseload LNG plants.
Woodside To Sell 10% Scarborough Interest to LNG Japan
Woodside has established a strategic relationship with LNG Japan which involves three elements: equity in the Scarborough Joint Venture, potential LNG offtake and collaboration on opportunities in new energy.
Woodside has entered into a sale and purchase agreement with LJ Scarborough Pty Ltd (LNG Japan) for the sale of a 10% non-operating participating interest in the Scarborough Joint Venture (the Transaction).
The purchase price is US$500 million, subject to adjustments. LNG Japan will reimburse Woodside for its share of expenditure for the Scarborough project from the Transaction effective date of 1 January 2022. On completion of the Transaction, expected in the first quarter of 2024, the estimated total consideration comprising the purchase price, reimbursed expenditure and escalation is approximately US$880 million.
Completion of the Transaction is subject to conditions precedent including Foreign Investment Review Board approval, National Offshore Petroleum Titles Administrator approvals and Western Australian Government approvals.
As part of the broader strategic relationship, Woodside and LNG Japan Corporation have entered into a non-binding heads of agreement for the sale and purchase of 12 LNG cargoes per year (approximately 0.9 million tonnes per annum) for 10 years commencing in 2026.
Woodside has also entered into non-binding agreements to collaborate with Sumitomo Corporation and Sojitz Corporation on global opportunities in new energy which could include ammonia, hydrogen, carbon capture and storage (CCS) and carbon management technology.
Following completion, Woodside will hold a 90% interest in the Scarborough Joint Venture and remain as operator. Scarborough gas will be processed at the Pluto LNG facility, where Woodside is currently constructing Pluto Train 2. Woodside is also operator of the Pluto Train 2 Joint Venture and holds a 51% participating interest.
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