Tellurian and Vitol sign 10-year LNG agreement for 3 mtpa

 Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced today it has finalized a liquefied natural gas (LNG) sales and purchase agreement (SPA) with Vitol Inc. (Vitol). The SPA is for three million tonnes per annum (mtpa) on a free on board (FOB) basis at Driftwood LNG for a ten-year period, indexed to a combination of two indices: the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF), each netted back for transportation charges. At today’s prices, the agreement is valued at approximately $12 billion in revenue over ten years.

    President and CEO Octávio Simões said, “Tellurian continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want. Vitol expressed interest in the development of Driftwood early on, and it is fulfilling to finalize this agreement with the world’s largest independent trader of energy. As the world electrifies and our population grows, the demand for reliable, low-cost energy will continue to increase. LNG provides a stable source of fuel at an attractive price, and Tellurian’s integrated model is positioned perfectly to offer volumes on JKM, TTF or blended price basis.” 

    Executive Vice President LNG Marketing & Trading Tarek Souki added, “Tellurian has made exceptional progress on our intended first phase capacity sales by securing this second SPA with another respected global energy trading business. The two recent agreements represent an aggregate of $24 billion in estimated revenue; we will continue to be deliberate and selective in choosing our additional customers.” 

    Pablo Galante Escobar, Global Head of LNG and European Gas & Power at Vitol said: “Vitol is excited to conclude this agreement with Tellurian. Our long-term commitment and investment grade rating will help Tellurian as they continue their path to financial close.” 

    Ben Marshall, CEO of Vitol Inc. added: “Vitol’s business continues to grow and evolve in the Americas and around the world. This agreement will make Vitol one of North America’s largest exporters of natural gas, providing our customers with cost effective and cleaner fuel solutions.”

Tellurian and Gunvor sign 10-year LNG agreement for 3 mtpa

 Tellurian Inc. (Tellurian) (NASDAQ: TELL) and Gunvor Singapore Pte Ltd (Gunvor) announced today a liquefied natural gas (LNG) sales and purchase agreement (SPA) for three million tonnes per annum (mtpa) for a ten year period, indexed to a combination of two indices; the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF), netted back for transportation charges. The LNG would be delivered free on board (FOB) from Tellurian’s Driftwood LNG, a 27.6 mtpa liquefaction facility proposed near Lake Charles, Louisiana in the United States Gulf Coast.

    President and CEO ­­Octávio Simões said, “Tellurian intends to market up to 10 mtpa of LNG in our first phase on a JKM, TTF or blended price basis, as our integrated model provides the flexibility to offer this valuable product. We welcome Gunvor, the largest independent global trader of LNG volumes, to Driftwood and look forward to providing a cleaner fuel to meet growing global energy needs and enable energy access.”

    Executive Vice President LNG Marketing & Trading Tarek Souki added, “Our business model creates significant value for Tellurian; at today’s LNG prices, this agreement represents the equivalent of approximately $12 billion in revenue over the 10-year term of the agreement.” 

McDermott's CB&I Storage Solutions Awarded LNG Storage Contract for Philippines' First LNG Import Terminal

McDermott International, Ltd today announced that its CB&I Storage Solutions business has been awarded a contract by Atlantic Gulf and Pacific Company of Manila Inc. (AG&P) for the engineering, procurement and construction of a liquefied natural gas (LNG) storage tank for AG&P's Philippines LNG import and regasification terminal, currently under construction in Batangas, Philippines.
"We are confident we made the right choice to work in close cooperation with CB&I Storage Solutions on this technically advanced and challenging project," said Roeland Uytdewilligen, Project Director of AG&P.

CB&I Storage Solutions will provide the first of two 60,000 cubic meter full containment steel LNG tanks along with geotechnical investigation, soil improvement, foundation and topside platform structure, pre-commissioning, purging and commissioning activities.

"We are proud to support AG&P in the delivery of the Philippines' first LNG import terminal. The design of this first-of-a-kind full containment steel LNG tank highlights our innovation and technology leadership in the LNG storage industry and positions CB&I Storage Solutions to serve the growing small-scale LNG market in Asia and other regions with similar demands," said Cesar Canals, Senior Vice President of CB&I Storage Solutions. "We have an extensive history of executing world-class projects in the Philippines and are confident in our ability to deliver this tank safely, on time and within budget."

Mechanical completion is slated for the third quarter of 2023 with purging and commissioning activities to follow.

Qatar Petroleum awards North Field Expansion project contract for LNG storage and loading facilities

Qatar Petroleum announces the award of a major engineering, procurement, and construction (EPC) contract to Samsung C&T Corporation for the expansion of the LNG storage and loading facilities located within Ras Laffan Industrial City as part of the North Field East (NFE) Project.



The EPC contract was signed today by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, and Mr. Oh Se-chul, the President and CEO of Samsung C&T, during a special ceremony at Qatar Petroleum Headquarters and in the attendance of senior officials from Qatar Petroleum and Qatargas.



The contract, valued at more than 2 billion dollars (including options), was awarded on a lump sum basis and is the second major onshore EPC contract award for the NFE project. On the 8th of February 2021, QP awarded the EPC contract for the construction of four LNG mega-trains with associated facilities to Chiyoda Technip Joint Venture. The award of this contract for the expansion of the LNG storage and loading facilities represents yet another important milestone on the road to substantially increase the State of Qatar’s LNG production capacity.



Both contracts represent the culmination of front-end engineering and design work that began in early 2018. When completed, the NFE Project will increase the State of Qatar’s LNG production capacity from 77 million to 110 tons per annum (MTPA). The second phase of the planned LNG expansion, the North Field South (NFS) Project, will further increase Qatar’s LNG production capacity from 110 MTPA to 126 MTPA by 2027.



Commenting on this occasion, His Excellency Mr. Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, The President and CEO of Qatar Petroleum, said: “The award of this contract marks another concrete step towards the further development of our natural gas resources, and enhancing our position as the world’s largest, most reliable LNG producer.”



His Excellency Minister Al-Kaabi added: “This contract provides for the expansion of existing infrastructure required to ensure the safe loading and on-time delivery of our LNG cargoes to our international customers across the globe. Its scope includes three LNG tanks and three LNG loading berths for NFE, and options for two LNG tanks and one LNG berth for NFS project, and all associated pipes, lines and loading lines.”



His Excellency concluded his remarks by saying: “We look forward to working with Samsung to deliver this important component of the North Field Expansion project in a safe, timely, and efficient manner. I am delighted that the detailed engineering activities under the contract will take place in Qatar, thus leveraging the growing technical capabilities for the development of major projects in the country.”



As per Qatar Petroleum’s established practice, special attention is paid to support the highest environmental standards by employing a high-efficiency design, and applying best available industry technologies to reduce gas and effluents emissions. This contract, in particular, includes the expansion of systems that target the elimination of flaring during the loading of LNG ships. In addition, recovery of ‘jetty boil-off gas’ will help reduce greenhouse gas emissions (GHG).​

https://qp.com.qa/en/MediaCentre/Pages/ViewNews.aspx?NType=News

Damietta restarts LNG production, first cargo lifted

The first LNG cargo from the Damietta liquefaction plant in Egypt was successfully produced and lifted. This is the first LNG cargo produced by the terminal after it was shut down in 2012.

Such event represents an important milestone in the process to complete the agreement reached on December 1st 2020 aimed at settling all pending disputes between the parties and at restarting the operations at the plant.

At this stage the agreement has already received all the authorizations of the competent authorities and its final closing is expected in the first half of March.

The agreement comes at an important moment, when also thanks to the fast time to market of Eni's natural gas discoveries, especially the ones in the Zohr and Nooros fields, Egypt has regained its full capacity to meet domestic gas demand and can allocate surplus production for export through its LNG plants.

https://www.eni.com/en-IT/media/press-release/2021/02/damietta-restarts-lng-production-first-cargo-lifted.html

Commercial Operation Commencement of FGP Fukushima Natural Gas Power Plant No.2 Unit

 Japan Petroleum Exploration Co., Ltd. (JAPEX) announced that the No.2 unit of Fukushima Natural Gas Power Plant (hereinafter "the power plant") commenced commercial operation today at 0:00 AM. The power plant has been under construction by Fukushima Gas Power Co., Ltd. (Main Office: Chiyoda-ku, Tokyo,  President and Chief Executive Officer: Yoshitaka Ishii, hereinafter “FGP”), which is a project company to promote the project of natural gas-fired power generation at Soma Port in Shinchi Town, Fukushima Prefecture (hereinafter “the project”), which JAPEX participate as the project partner. As the basement of the project, the power plant had been under construction at Soma Port No.4 Warf, since the investment decision in October 2016 by FGP and its shareholders: JAPEX, Mitsui & Co., Ltd., Osaka Gas Co., Ltd., Mitsubishi Gas Chemical Co., Inc., Hokkaido Electric Power Co., Inc.  Together with the No.1 Unit commenced commercial operation on April 30, 2020, the power plant’s generation capacity is a total of 1.18 million kW (two units of 0.59 million kW). The power plant uses regasified LNG (Liquefied Natural Gas) for fuel, as the lowest emission of Green House Gas (GHG) and air pollutants among fossil fuels*1 and adopts GTCC (Gas Turbine Combined-Cycle) with highly generation efficiency of 61%*2 by utilizing the latest technologies to the proven model. The No.2 LNG tank with 230,000 kL capacity and additional regasification equipment of the second constriction phase in Soma LNG terminal was transferred to full-scale operation in the time with the commercial operation of No.2 Unit of the power plant. Under the contract with FGP, JAPEX conducts management of the facilities constructed in the second construction phase, as well as storage and regasification of LNG fuel used for power generation, and supply of re-gasified gas to the power plant based on the tolling method*3 this project applies. Please refer to the appendix for the outline of the power plant and the corporate profile of FGP. By operating the power plant stably with safety management as the first priority, JAPEX, together with its five business partners, will stably supply electricity with lower cost and lower environmental burden that can respond to changes in the market environment such as deregulation of the electric market and reduction of GHG, as well as making mid to long term contribution for rebuilding industrial bases and new urban development in Hama-dori area, Fukushima Prefecture, which Fukushima Innovation Coast Framework*4 is aiming for. Also, towards the realization of "Growth to the Integrated Energy Company Utilizing Oil and Gas E&P and its Supply Basis," as raised in our Long-term Vision and Mid-term Business Plan, JAPEX will proceed on our business and contribution to the local society through our business. The impact of this matter on the consolidated financial forecasts for the fiscal year ending March 31, 2021 is already recognized in the latest forecasts.  

Cameron LNG Train 3 Begins Commercial Operation

 McDermott International Ltd. today announced the beginning of commercial operation of Train 3 at Cameron LNG, which is jointly owned by Sempra LNG, Total S.E., Mitsui & Co., Ltd. and Japan LNG Investment LLC , a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK).

"This is a major accomplishment. It's a testament to our dedication and resilience in reaching commercial operation on this world class project during these challenging times," said Samik Mukherjee , Group Senior Vice President for Projects. "We share this achievement with our partner, Chiyoda. I want to thankAndy Dadosky , our project director, and the thousands of team members, both past and present, that made it possible."

McDermott and Chiyoda have provided the engineering, procurement and construction for the Cameron LNG project since the project's initial award in 2014. The project includes three liquefaction trains with a projected export of 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day.

"I commend the entire team for their focused efforts on safety, quality and delivery as they finish the third, and final train, of the Cameron LNG project," saidMark Coscio , McDermott's Senior Vice President for North, Central and South America . "Their commitment and hard work made it possible to reach full commercial operation."