Eni have signed a 0.8 billion cubic meters (bcm) LNG sales and purchase agreement with Merakes LNG Sellers, starting from January 2024 for 3 years, in addition to the contract with Jangkrik LNG Sellers for 1.4 billion cubic meters per year, in place since 2017.
Thanks to these new volumes, Eni can ensure greater flexibility and further diversification of its LNG supplies, while strengthening its presence in growing markets such as South Asia and the Far East.
This contract - together with the long-term contract recently signed with the Marine XII JV in Congo for LNG volumes of approximately 4.5 bcm, and the contract with QatarEnergy LNG NFE (5) for up to 1.5 bcm of LNG from the North Field East project - contributes to the buildup of Eni's LNG portfolio by leveraging strong relationships with the countries of operation. Eni’s integrated approach – that builds on the upstream developments to the LNG marketing – is in line with the company’s energy transition strategy, which aims to progressively increase the share of gas in overall upstream production to 60% by 2030, while also increasing the contribution of equity LNG. Eni aims to more than double its contracted LNG volumes to over 18 million tonnes per year (MTPA) by 2026, leveraging integration between upstream and gas marketing activities.
Eni has been operating in Indonesia since 2001 across exploration, development, and production. The recent announcement of the Geng North discovery, along with the acquisition of Chevron’s assets and the envisaged fast-tracking of Indonesia Deepwater Development (IDD), significantly reinforce Eni presence in Indonesia's Kutei basin, close to the existing Bontang LNG facilities, and confirm the strong relationship with a country that continues to play a strategic role in Eni’s LNG portfolio.
Thursday 26 October 2023
Monday 23 October 2023
Qatarenergy, Shell Sign 27-Year LNG Supply Agreements for up to 3.5 Mtpa to The Netherlands
Affiliates of QatarEnergy and Shell signed two long-term LNG sale and purchase agreements (SPAs) for the supply of up to 3.5 million tons per annum (MTPA) of LNG from Qatar to the Netherlands.
Pursuant to the SPAs, the LNG will be delivered to Gate LNG terminal located in the port of Rotterdam starting in 2026 for a term of 27 years.
The LNG volumes will be sourced from the two joint ventures between QatarEnergy and Shell that hold interests in Qatar’s North Field East (NFE) and North field South (NFS) expansion projects.
Commenting on this occasion, His Excellency Minister Al-Kaabi said: “We are delighted to sign these two long-term LNG sale and purchase agreements with Shell that will further enhance our decades-long relationship and strategic partnership in Qatar and around the world. There is no doubt that the contracted LNG volumes underscore the vital role natural gas plays in the energy transition and in supporting energy security of customers across the globe.”
His Excellency Minister Al-Kaabi added: “These agreements reaffirm Qatar’s commitment to help meeting Europe’s energy demands and bolstering its energy security with a source known for its superior economic and environmental qualities. We look forward to work closely with our partner, Shell, in delivering on this shared endeavor.”
Shell’s partnership in the North Field LNG Expansion Projects is made up of a 6.25% share in the 32 MTPA NFE project and a 9.375% share in the 16 MTPA NFS project.
Pursuant to the SPAs, the LNG will be delivered to Gate LNG terminal located in the port of Rotterdam starting in 2026 for a term of 27 years.
The LNG volumes will be sourced from the two joint ventures between QatarEnergy and Shell that hold interests in Qatar’s North Field East (NFE) and North field South (NFS) expansion projects.
The SPAs were signed by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and Mr. Wael Sawan, the CEO of Shell, at a special event held in Doha in the presence of senior executives from both companies.
Commenting on this occasion, His Excellency Minister Al-Kaabi said: “We are delighted to sign these two long-term LNG sale and purchase agreements with Shell that will further enhance our decades-long relationship and strategic partnership in Qatar and around the world. There is no doubt that the contracted LNG volumes underscore the vital role natural gas plays in the energy transition and in supporting energy security of customers across the globe.”
His Excellency Minister Al-Kaabi added: “These agreements reaffirm Qatar’s commitment to help meeting Europe’s energy demands and bolstering its energy security with a source known for its superior economic and environmental qualities. We look forward to work closely with our partner, Shell, in delivering on this shared endeavor.”
Shell’s partnership in the North Field LNG Expansion Projects is made up of a 6.25% share in the 32 MTPA NFE project and a 9.375% share in the 16 MTPA NFS project.
Eni signs long term LNG agreement for deliveries from North Field East expansion project in Qatar
Eni has signed a long-term contract with QatarEnergy LNG NFE (5), the JV between Eni and QatarEnergy for the development of the North Field East (NFE) project in Qatar, for the delivery of up to 1.5 billion cubic meters per annum (bcma) of LNG. The available volumes will be delivered at the receiving terminal “FSRU Italia”, currently located in Piombino, Italy, with expected deliveries starting from 2026 with a duration of 27 years.
The LNG volumes produced by the NFE project will increase Qatar’s LNG production by 45 bcm in addition to the current 108 bcm. The LNG supply contract will contribute to Italy's security of supply through the diversification of its supply sources. Eni is already importing in Europe 2.9 bcma from Qatar since 2007 under a long term supply agreement.
This agreement strengthens the partnership between Eni and QatarEnergy, and it is a further step in the development of Eni’s integrated global LNG portfolio.
The participation in the NFE project and the LNG contract are in line with Eni's transition strategy, which aims to progressively increase the role of gas in Eni's upstream production, reaching 60% by 2030, and increasing the contribution of equity LNG, leveraging integration between upstream and gas marketing activities.
The LNG volumes produced by the NFE project will increase Qatar’s LNG production by 45 bcm in addition to the current 108 bcm. The LNG supply contract will contribute to Italy's security of supply through the diversification of its supply sources. Eni is already importing in Europe 2.9 bcma from Qatar since 2007 under a long term supply agreement.
This agreement strengthens the partnership between Eni and QatarEnergy, and it is a further step in the development of Eni’s integrated global LNG portfolio.
The participation in the NFE project and the LNG contract are in line with Eni's transition strategy, which aims to progressively increase the role of gas in Eni's upstream production, reaching 60% by 2030, and increasing the contribution of equity LNG, leveraging integration between upstream and gas marketing activities.
Sunday 22 October 2023
Eni celebrates sail away of the Tango FLNG and Excalibur FSU vessels to Congo
In the presence of Bruno Jean Richard Itoua, Minister of Hydrocarbons of the Republic of the Congo, Maixent Raoul Ominga, Managing Director of SNPC, and Guido Brusco, Eni’s Chief Operating Officer Natural Resources, today Eni celebrated the sail away of the Tango Floating Liquefied Natural Gas (FLNG) and Excalibur Floating Storage Unit (FSU) vessels from Dubai to Congo’s offshore. The milestone aligns with the timeline of the Congo LNG project, whose first phase will startup in December 2023.
Tango FLNG, which has a liquefaction capacity of approximately 1 billion cubic meters per annum of gas (BCMA), will be moored 3 kilometers offshore along with the Excalibur FSU vessel upon their arrival in Congo.
The Congo LNG project leverages Marine XII gas resources and existing production facilities in a new, phased approach that will allow to reach approximately 4.5 BCMA of gas liquefaction capacity at plateau, as well as zero routine gas flaring. A second FLNG vessel with a capacity of approximately 3.5 BCMA of gas is under construction and will begin production in 2025.
The project will help the Republic of the Congo meet its energy needs while seizing the opportunity to exploit surplus gas through LNG production, allowing the Country to join the group of global exporters of Liquefied Natural Gas in record time. According to the agreements recently signed, all LNG produced will be marketed by Eni.
Eni has been operating in Congo for over 50 years and is the only company active in the development of the country’s gas resources. Eni currently supplies gas to Congo Electric Power Station (CEC), which accounts for 70% of the country's power production capacity. Eni is strongly committed to promoting the energy transition in the country. Among other initiatives, the Oyo Center of Excellence for Renewable Energy and Energy Efficiency was recently handed over to the Ministry of Higher Education, Scientific Research and Technological Innovation, which will manage it together with UNIDO (United Nations Industrial Development Organization). Furthermore, the company is developing agri-feedstock production projects that do not compete with the food supply chain, and whose produce will help feed Eni’s biorefineries.
Tango FLNG, which has a liquefaction capacity of approximately 1 billion cubic meters per annum of gas (BCMA), will be moored 3 kilometers offshore along with the Excalibur FSU vessel upon their arrival in Congo.
The Congo LNG project leverages Marine XII gas resources and existing production facilities in a new, phased approach that will allow to reach approximately 4.5 BCMA of gas liquefaction capacity at plateau, as well as zero routine gas flaring. A second FLNG vessel with a capacity of approximately 3.5 BCMA of gas is under construction and will begin production in 2025.
The project will help the Republic of the Congo meet its energy needs while seizing the opportunity to exploit surplus gas through LNG production, allowing the Country to join the group of global exporters of Liquefied Natural Gas in record time. According to the agreements recently signed, all LNG produced will be marketed by Eni.
Eni has been operating in Congo for over 50 years and is the only company active in the development of the country’s gas resources. Eni currently supplies gas to Congo Electric Power Station (CEC), which accounts for 70% of the country's power production capacity. Eni is strongly committed to promoting the energy transition in the country. Among other initiatives, the Oyo Center of Excellence for Renewable Energy and Energy Efficiency was recently handed over to the Ministry of Higher Education, Scientific Research and Technological Innovation, which will manage it together with UNIDO (United Nations Industrial Development Organization). Furthermore, the company is developing agri-feedstock production projects that do not compete with the food supply chain, and whose produce will help feed Eni’s biorefineries.
Thursday 19 October 2023
bp ships first cargo from Indonesia’s expanded Tangguh LNG facility
bp, on behalf of the Tangguh production sharing contract partners, today announced that the first cargo of liquefied natural gas (LNG) produced by the new third liquefaction train at the Tangguh LNG facility, in Papua Barat, Indonesia, has safely been loaded and sailed, to be delivered to Indonesia’s state-owned power generator PT PLN (Persero). This marks the start of full commercial operation of the expanded Tangguh LNG facility.
The start-up of Tangguh Train 3 will add 3.8 million tonnes per annum (mtpa) of LNG production capacity to the existing two-train facility, bringing total plant capacity to 11.4mtpa. The first cargo of LNG produced by the new train sailed from Tangguh on 18 October to be delivered to PLN’s regasification facility in Arun, Nanggroe Aceh Darussalam province, Indonesia.
Dwi Soetjipto, chairman of SKK Migas, Indonesia’s oil and gas regulatory agency, said: “With its expanded production capacity, the Tangguh facility will play a vital role in helping to meet Indonesia’s growing energy demand, total gas production at Tangguh is expected to account for over a third of national gas production.
“Tangguh is the largest LNG producer in Indonesia and the production from Tangguh's three-train operation will significantly contribute to the national gas production target of 12 bscf/d by 2030.”
In addition to the new train, the Tangguh expansion project included construction of two offshore platforms, 13 new production wells, an LNG loading facility, and supporting infrastructure. At its peak, more than 13,500 workers were involved in the project’s development at the remote site, with a total of more than 155 million workhours spent to complete the project.
Anja-Isabel Dotzenrath, bp’s EVP, gas and low carbon energy said: “The safe and successful start-up of Train 3 marks a new phase for Tangguh and is a proud day for bp and our Tangguh partners. I would like to thank the Government of Indonesia for our strong partnership and their continued support that has made this possible.“
“Tangguh is important both to bp and to Indonesia. It is expected to account for more than a third of the country’s gas production and make a significant contribution to meeting the country’s growing needs for reliable and affordable energy. For bp, building our gas and LNG business is central to our strategy as we transform to an integrated energy company, investing in today’s hydrocarbon energy system as well as growing new lower carbon businesses.”
The Tangguh expansion is the third major project start-up for bp globally in 2023, following start of production from the Mad Dog II project in the US Gulf of Mexico and from the MJ field off the east coast of India.
Since beginning operations in 2009, Tangguh has worked to create positive social and economic impacts through comprehensive community development programmes. Train 3 will further enhance this, with a portion of the gas committed for electrification in Papua Barat, and the project aims to continue to increase the proportion of Papuans in Tangguh’s workforce from 73% today to meet its commitment of 85% by 2029.
Notes to editors
The start-up of Tangguh Train 3 will add 3.8 million tonnes per annum (mtpa) of LNG production capacity to the existing two-train facility, bringing total plant capacity to 11.4mtpa. The first cargo of LNG produced by the new train sailed from Tangguh on 18 October to be delivered to PLN’s regasification facility in Arun, Nanggroe Aceh Darussalam province, Indonesia.
Dwi Soetjipto, chairman of SKK Migas, Indonesia’s oil and gas regulatory agency, said: “With its expanded production capacity, the Tangguh facility will play a vital role in helping to meet Indonesia’s growing energy demand, total gas production at Tangguh is expected to account for over a third of national gas production.
“Tangguh is the largest LNG producer in Indonesia and the production from Tangguh's three-train operation will significantly contribute to the national gas production target of 12 bscf/d by 2030.”
In addition to the new train, the Tangguh expansion project included construction of two offshore platforms, 13 new production wells, an LNG loading facility, and supporting infrastructure. At its peak, more than 13,500 workers were involved in the project’s development at the remote site, with a total of more than 155 million workhours spent to complete the project.
Anja-Isabel Dotzenrath, bp’s EVP, gas and low carbon energy said: “The safe and successful start-up of Train 3 marks a new phase for Tangguh and is a proud day for bp and our Tangguh partners. I would like to thank the Government of Indonesia for our strong partnership and their continued support that has made this possible.“
“Tangguh is important both to bp and to Indonesia. It is expected to account for more than a third of the country’s gas production and make a significant contribution to meeting the country’s growing needs for reliable and affordable energy. For bp, building our gas and LNG business is central to our strategy as we transform to an integrated energy company, investing in today’s hydrocarbon energy system as well as growing new lower carbon businesses.”
The Tangguh expansion is the third major project start-up for bp globally in 2023, following start of production from the Mad Dog II project in the US Gulf of Mexico and from the MJ field off the east coast of India.
Since beginning operations in 2009, Tangguh has worked to create positive social and economic impacts through comprehensive community development programmes. Train 3 will further enhance this, with a portion of the gas committed for electrification in Papua Barat, and the project aims to continue to increase the proportion of Papuans in Tangguh’s workforce from 73% today to meet its commitment of 85% by 2029.
Notes to editors
- Tangguh LNG is located in Teluk Bintuni Regency in the Papua Barat Province of Indonesia. It has been operation since 2009 and now consists of offshore gas production facilities supplying three 3.8mtpa liquefaction trains.
- Tangguh is operated by BP Berau Ltd on behalf of the other production sharing contract partners as contractor to SKK Migas. BP Berau Ltd and affiliates in Indonesia hold a 40.22% interest in the project. Other production sharing contract partners are: MI Berau B.V. (16.30%), CNOOC Muturi Limited (13.90%), Nippon Oil Exploration (Berau), Limited (12.23%), KG Berau Petroleum Ltd and KG Wiriagar Petroleum Ltd (10.00%), and Indonesia Natural Gas Resources Muturi Inc. (7.35%).
- The Tangguh expansion project involved 17,500 tonnes of structural steel (more than the weight of two Eiffel Towers) and used 70,000 cubic metres of concrete (equivalent to the volume of 28 Olympic-sized swimming pools).
- bp is one of the largest foreign investors in Indonesia. In addition to its interest in Tangguh LNG, bp has exploration interests off Aceh and East Java, a fuel retail partnership and its lubricants brand Castrol is active in the country.
- With Train 3 completed and operational, the Tangguh partners are making progress towards next planned phase of development at Tangguh – the UCC project that includes the adoption of carbon capture utilization and storage (CCUS) technology to help reduce CO2 emissions.
Friday 13 October 2023
Baker Hughes Announces Milestone Electric-LNG Award for ADNOC Ruwais LNG Export Terminal
Baker Hughes (NASDAQ: BKR), an energy technology company, announced Wednesday it has received a letter of award by ADNOC Gas, for and on behalf of ADNOC, to provide two electric liquefaction systems (e-LNG) for the Ruwais LNG project in the United Arab Emirates. The award is expected to be booked in the fourth quarter of 2023 and was announced at this year’s ADIPEC, one of the largest energy industry events in the world.
The LNG trains will be driven by Baker Hughes’ 75 megawatt BRUSH electric motor technology and feature the company’s state-of-the-art compressor technology, making Ruwais LNG one of the first all-electric LNG projects in the Middle East. The overall production capacity of the trains is expected to be 9.6 million tons per annum.
Through the Ruwais LNG growth project, ADNOC intends to more than double its LNG production capacity to meet increased global demand for natural gas. The Ruwais plant, which is designed with electric-powered processing facilities, will run on clean power, making it one of the lowest carbon intensity LNG facilities in the world.
“This award represents an important milestone for Baker Hughes in the LNG market and demonstrates the strength of our portfolio, which we strategically expanded through the BRUSH Power Generation acquisition in 2022,” said Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes. “Over the next decade, electrification will play a critical role in the energy transition, enabling further reduction of the carbon emissions footprint of natural gas. We are incredibly honored that ADNOC Gas, for and on behalf of ADNOC, has chosen Baker Hughes as a trusted partner to support their vision to increase LNG production while further decarbonizing their operations.”
The award continues the positive demand momentum in 2023 for Baker Hughes’ gas technology equipment portfolio after securing several major LNG orders throughout the year. Baker Hughes acquired the Power Generation division of BRUSH group in 2022 to enhance its industrial electric machinery portfolio and support the company’s strategic commitment to provide lower carbon solutions. Since then, the company has secured several orders, including a contract from Wison in the first quarter of 2023 to supply four e-LNG compressor trains for an onshore LNG plant in sub-Saharan Africa.
The LNG trains will be driven by Baker Hughes’ 75 megawatt BRUSH electric motor technology and feature the company’s state-of-the-art compressor technology, making Ruwais LNG one of the first all-electric LNG projects in the Middle East. The overall production capacity of the trains is expected to be 9.6 million tons per annum.
Through the Ruwais LNG growth project, ADNOC intends to more than double its LNG production capacity to meet increased global demand for natural gas. The Ruwais plant, which is designed with electric-powered processing facilities, will run on clean power, making it one of the lowest carbon intensity LNG facilities in the world.
“This award represents an important milestone for Baker Hughes in the LNG market and demonstrates the strength of our portfolio, which we strategically expanded through the BRUSH Power Generation acquisition in 2022,” said Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes. “Over the next decade, electrification will play a critical role in the energy transition, enabling further reduction of the carbon emissions footprint of natural gas. We are incredibly honored that ADNOC Gas, for and on behalf of ADNOC, has chosen Baker Hughes as a trusted partner to support their vision to increase LNG production while further decarbonizing their operations.”
The award continues the positive demand momentum in 2023 for Baker Hughes’ gas technology equipment portfolio after securing several major LNG orders throughout the year. Baker Hughes acquired the Power Generation division of BRUSH group in 2022 to enhance its industrial electric machinery portfolio and support the company’s strategic commitment to provide lower carbon solutions. Since then, the company has secured several orders, including a contract from Wison in the first quarter of 2023 to supply four e-LNG compressor trains for an onshore LNG plant in sub-Saharan Africa.
Monday 2 October 2023
Baker Hughes Announces Major Gas Technology Equipment Order for Venture Global LNG
Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday that it has been awarded a major contract, to be booked in the third quarter of 2023, to provide a modularized liquefied natural gas (LNG) system and power island. The contract was awarded under a master equipment supply agreement between Venture Global LNG and Baker Hughes for more than 100 million tons per annum (MTPA) of production capacity, which was expanded from 70 MTPA and recently announced during Gastech in Singapore.
The award builds on previous ones from Venture Global to Baker Hughes to provide comprehensive LNG technology solutions for the Calcasieu Pass and Plaquemines LNG projects in Louisiana.
“We are excited to add another milestone in our successful collaboration with Baker Hughes as a strategic LNG technology supplier, building on the expansion of our agreement,” said Mike Sabel, CEO of Venture Global. “To enable a successful transition to more secure and sustainable economies, it is critical that we continue to further our mission of delivering low-cost LNG at a larger scale. We are grateful for our continued partnership with Baker Hughes, a world leader in energy technology, and look forward to building on our successful collaboration in our upcoming projects.”
“We have been a trusted partner in natural gas operations for more than 30 years and have been able to bring that depth of experience into the recent LNG market upturn. This further expansion of our collaboration with Venture Global reaffirms that Baker Hughes technologies are advancing the efficient use of natural gas, and we are honored to continue to support their projects,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “The continuing demand for LNG emphasises the pivotal role that natural gas will play in the energy transition, helping to secure supply and to reach net-zero emissions.”
The award builds on previous ones from Venture Global to Baker Hughes to provide comprehensive LNG technology solutions for the Calcasieu Pass and Plaquemines LNG projects in Louisiana.
“We are excited to add another milestone in our successful collaboration with Baker Hughes as a strategic LNG technology supplier, building on the expansion of our agreement,” said Mike Sabel, CEO of Venture Global. “To enable a successful transition to more secure and sustainable economies, it is critical that we continue to further our mission of delivering low-cost LNG at a larger scale. We are grateful for our continued partnership with Baker Hughes, a world leader in energy technology, and look forward to building on our successful collaboration in our upcoming projects.”
“We have been a trusted partner in natural gas operations for more than 30 years and have been able to bring that depth of experience into the recent LNG market upturn. This further expansion of our collaboration with Venture Global reaffirms that Baker Hughes technologies are advancing the efficient use of natural gas, and we are honored to continue to support their projects,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “The continuing demand for LNG emphasises the pivotal role that natural gas will play in the energy transition, helping to secure supply and to reach net-zero emissions.”
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