Venture Global and Louisiana Governor John Bel Edwards Announce Proposed CP2 LNG Export Facility

Today, Venture Global LNG and Louisiana Governor John Bel Edwards announced the company will invest more than $10 billion to develop a fourth LNG export facility in the State of Louisiana. The new project, CP2 LNG (“CP2”) will be located in Cameron Parish, adjacent to Venture Global’s first facility, Calcasieu Pass. This announcement brings Venture Global’s total planned capital investment in the State of Louisiana to more than $20 billion. CP2 will result in thousands of good paying jobs and an estimated $2 billion in new local revenue during the life of the project. The direct new jobs created by the project will have average annual salaries of $120,000 plus benefits.

“Venture Global is proud to continue our expansion in Louisiana with the launch of our next project, CP2 LNG. CP2 will be located in Cameron Parish, adjacent to our existing Calcasieu Pass terminal. These two projects, combined with our Plaquemines LNG facility now under construction, represent more than $20 billion of investment in the State of Louisiana and will create thousands of jobs—including both permanent and construction jobs,” said Venture Global CEO Mike Sabel. “With two major LNG export projects currently under active construction, Venture Global is on a mission to produce the cleanest, low-cost LNG in North America. We are proud to partner with Louisiana in these efforts and in developing Carbon Capture and Sequestration (CCS) for our facilities. Under the leadership of Governor John Bel Edwards, Louisiana is enhancing its status as an international hub for innovation to tackle the energy and climate challenges of our time.”

“Venture Global has invested significantly in Louisiana’s economy, and I am proud to celebrate this exciting new project with them,” said Louisiana Governor John Bel Edwards. “The CP2 facility in Cameron will create more than 1,000 new permanent jobs and thousands of construction jobs in the area, which will have a significant impact on our economy. And it is incorporating clean energy technology that reduces the amount of CO2 released into the atmosphere, which is significant for our environment. As Louisiana pursues a goal of net-zero emissions by 2050, projects that feature carbon capture and sequestration allow our state to sustain industry without sacrificing our long-term carbon-reduction goals.”

Today, Venture Global also announced that it has submitted a formal application requesting authorization from the Federal Energy Regulatory Commission (FERC) to site, construct and operate the CP2 LNG facility and the CP express pipeline. CP2 LNG will build, own and operate a liquified natural gas (LNG) terminal with a nameplate liquification capacity of 20 million metric tonnes per annum (MTPA) of LNG. The CP Express pipeline will provide natural gas to the CP2 LNG facility.

MOL and Vopak reach agreement to jointly own and operate the FSRU for the new LNG terminal in Hong Kong

Mitsui O.S.K. Lines, Ltd. (MOL) and Royal Vopak (Vopak) announce an agreement has been
reached, whereby Vopak will acquire 49.99% of the shares in the vessel owning company of
MOL FSRU Challenger, whose name will be changed to Bauhinia Spirit. This new joint venture
company between MOL and Vopak in Hong Kong will own the world’s largest floating storage
and regasification unit (FSRU) and have a long-term contract with Hong Kong LNG Terminal
Limited.1 The FSRU has a storage and regasification capacity of 263,000 cbm and 800 mmscfd,
respectively. Under the contract, the joint venture will provide the FSRU as well as jetty
operations & maintenance and port services.

The offshore jetty platform for the mooring of the FSRU and LNG carriers are owned by Hong
Kong LNG Terminal Limited. The terminal is currently under construction and is expected to be
operational around mid 2022. The terminal will be located offshore about 25 km southwest of
Hong Kong Island. The terminal will provide natural gas feedstock to the customer’s dedicated
power plants. It is being developed to support the Hong Kong Special Administrative Region
(HKSAR) government’s target to improve air quality and environmental conditions by increasing
the percentage of power generation by natural gas.

Both MOL and Vopak are excited to contribute to the success of Hong Kong's first ever LNG
import terminal based on the companies’ complementary strengths, combining their experiences
related to the LNG industry including FSRU, and offshore jetty platform operations &
maintenance respectively. Being the global market leaders in their respective fields, MOL is
involved in over 100 LNG carrier and FSRU projects with Vopak having a portfolio of 4 LNG
terminals in operation and more than 300 jetties across its global terminal network.

“An ideal complementary relationship works by combining Vopak's many years of experience as
a terminal operator for oils, chemicals and liquefied gas with MOL's know-how of LNG carrier
and FSRU operation. MOL looks forward to further working with Vopak on this promising proand feels confident that with our joint forces, we will be able to establish a safe and reliable
operation structure for the Hong Kong FSRU project.” said Takeshi Hashimoto, President &
CEO of MOL.

Eelco Hoekstra, Chairman of the Executive Board & CEO of Royal Vopak, said “We very much
look forward to further strengthening our partnership with MOL and to actively contribute
together to the energy transition policy of the government in Hong Kong. This cooperation gives
Vopak an excellent entry in the growing LNG market in Hong Kong and fits our ambition to
diversify our service offering in LNG by investing in FSRUs.”

This agreement follows MOL’s earlier announcement whereby MOL has entered into a long-
term contract with the customer and an agreement with Vopak for jetty support. The transaction
is subject to customary conditions, including closing, refinancing and obtaining (regulatory)
approvals, with the expected completion after the commissioning of the terminal around mid
2022.

Based on these joint initiatives, MOL and Vopak also aim to explore further downstream
opportunities for bunkering of LNG as a cleaner marine fuel in Hong Kong, where is one of the
major bunkering port of fuel oils for marine transportation. MOL has a plan to operate
approximately 90 LNG-fueled vessels by 2030, which is a part of MOL Group Environmental
Vision 2.1, aiming for Net Zero GHG emission by 2050.

The FSRU outline

• Length : 345.00 m
• Beam : 55.00 m
• LNG storage capacity : 263,000 m3
• Regas discharging capacity : 800 mmscfd
• Delivery : 2017

 

Scarborough And Pluto Train 2 Developments Approved

Final investment decisions have been made to approve the Scarborough and Pluto Train 2 developments, including new domestic gas facilities and modifications to Pluto Train 1.

The US$12.0 billion (100%, $6.9 billion Woodside share) LNG development is expected to deliver significant cash flow and enduring value to shareholders. Scarborough gas processed through Pluto Train 2 will be one of the lowest carbon intensity sources of LNG delivered to customers in north Asia, with first LNG cargo targeted for 2026.


With the sell-down of 49% of Pluto Train 2 announced on 15 November 2021, the expected investment
metrics for the integrated development are:
• An internal rate of return (IRR) of above 13.5%
• An all-in cost of supply for LNG delivered to north Asia of approximately $5.8/MMBtu
• A payback period of 6 years.1
 

Woodside’s overall corporate 2P Total Reserves has increased by approximately 158% to 2,342.0 MMboe. Woodside CEO Meg O’Neill said approving the development of the world-class Scarborough gas resource is a landmark achievement for Woodside.

“Today’s decisions set Woodside on a transformative path. Scarborough will be a significant contributor to Woodside’s cash flows, the funding of future developments and new energy products, and shareholder returns. “This capital efficient development leverages Woodside’s existing infrastructure and our proven expertise in project execution. The contracting model, development concept and execution strategy have been designed to reduce cost risk and protect shareholder value.

“The Scarborough reservoir contains only around 0.1% carbon dioxide, and Scarborough gas processed
through the efficient and expanded Pluto LNG facility supports the decarbonisation goals of our customers in Asia.

“The final investment decision is underpinned by quality customer support with approximately 60% of
Scarborough capacity contracted, including domestic gas for the proposed Perdaman urea project.
“Developing Scarborough delivers value for Woodside shareholders and significant long-term benefits locally and nationally, including thousands of jobs, taxation revenue and the supply of gas to export and domestic markets for decades to come,” she said.

Sembcorp Marine to Support Bechtel in the Construction of Gas Processing Train for Pluto Train 2 Project

Sembcorp Marine Ltd, through its wholly-owned subsidiary, Sembcorp Marine Offshore Platforms Pte. Ltd. (“SMOP”), has entered into a contract with Bechtel Overseas Corporation (“Bechtel”) for module assembly of the second LNG train to be constructed at the Pluto LNG Project (“Pluto Train 2”).

Bechtel and SMOP will form an integrated management team to manage the module assembly programme for Pluto Train 2, scheduled to be completed in 2024.

Pluto LNG is a single onshore LNG processing train located on the Burrup Peninsula near Karratha in the north-west of Western Australia and currently processes gas from the Pluto and Xena offshore fields. Woodside has operated Pluto LNG safely and reliably since its start-up in 2012. The construction of Pluto Train 2 will expand Pluto’s existing processing capacity by around five million tonnes per annum and allow for the processing of third-party gas resources.

Sembcorp Marine Head of Offshore Platforms Mr Samuel Wong said, “Sembcorp Marine is pleased to collaborate once again with Bechtel on an Australian LNG project. The Group looks forward to executing the project safely and efficiently and we thank Bechtel for their continued trust in our capabilities.”

Previous collaborations between Sembcorp Marine and Bechtel include Australia Pacific LNG project and the Wheatstone LNG project.

The aforementioned contract is not expected to have any material impact on the net tangible assets and earnings per share of the Group for the year ending 31 December 2021.

Cheniere Partners Announces Achievement of First LNG at Sabine Pass Train 6

Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American: CQP) announced today that liquefied natural gas (LNG) was produced for the first time at Train 6 of the company’s Sabine Pass Liquefaction facility. The commissioning process continues, and Cheniere Partners expects Substantial Completion of Train 6 to be achieved in the first quarter of 2022, approximately 1 year ahead of the guaranteed completion date. Upon Substantial Completion, Bechtel Energy Inc. (“Bechtel”) will transfer the completed train to Cheniere Partners, and Sabine Pass’ total production capacity will be approximately 30 million tonnes per annum of LNG.

“This milestone is yet another impressive achievement by the Bechtel and Cheniere teams who continue to safely commission and bring our LNG trains online ahead of schedule and within project budgets,” said Jack Fusco, Chairman, President and CEO of Cheniere Partners. “With global economic activity increasing and the winter season approaching in key LNG markets around the world, providing additional supplies of reliable LNG can help companies, countries and communities around the world during this high-demand period.”

“These LNG projects are powering the energy transition and enabling access to cleaner energy around the world,” said Brendan Bechtel, Chairman and CEO of Bechtel. “Cheniere Partners continues to be at the forefront in the LNG industry and we are honored to play a role in improving access to this energy source for communities that need it.”

Full notice to proceed on Sabine Pass Train 6 was issued to Bechtel by Cheniere Partners in June 2019. Since then, the peak workforce building Train 6 was 1,800 workers who have completed approximately 5,000,000 craft professional hours, installed 12,250 tons of steel, poured 48,500 yards of concrete, and laid 2,500,000 feet of cable.

Woodfibre LNG awards EPFC contract to McDermott

 Woodfibre LNG has signed an Engineering, Procurement, Fabrication, and Construction (EPFC) contract with McDermott International. The EPFC contract is an important step in advancing detailed engineering and construction scheduling work in advance of Woodfibre LNG issuing a notice to proceed.

Responsibly produced natural gas is a necessary part of making a successful global transition from heavy-emitting fuels to renewables. By harnessing the low-carbon gas resources of British Columbia's Montney region to replace coal-fired energy sources in Asia, Woodfibre LNG will reduce global emissions by 3.5 million tonnes CO2e per annum, equivalent to removing 5 percent of B.C.'s annual emissions from the atmosphere each year. McDermott and Woodfibre's collaboration on front-end engineering and facility design, relative to typical LNG facilities, is expected to result in a reduction of approximately 86 percent of the carbon dioxide emissions per tonne of LNG produced.

Woodfibre LNG will be the cleanest liquefied natural gas export facility on earth, achieved through the adoption of a low-emission philosophy across every element of engineering and design. The facility will use hydroelectricity for the main liquefaction process, and includes state of the art technology that enables liquefaction machinery to restart without flaring, a recycling system for "boil-off" gas, and additional transformers, switchgear and transmission lines. Altogether, this results in the most groundbreaking technical achievement in the world of LNG, and sets a new standard for efficient plant design. This next-generation LNG production is in high demand. Woodfibre LNG has two offtake agreements signed with BP, meaning over 70 percent of Woodfibre's annual throughput has already been sold.

McDermott's industry-leading NetZero Modular LNG strategy has been fully utilized during the development of this advanced onshore gas processing and liquefaction facility with floating storage near Squamish, British Columbia, Canada. The strategy provides multiple pathways through design, execution and construction to reduce operational and project emissions.

"Our contract with McDermott is a positive step forward for this substantial piece of clean energy infrastructure," said Christine Kennedy, president of Woodfibre LNG. "Together, we will be building the lowest-emission, most sustainable and innovative LNG export facility in the world. A particular point of pride for us is that the Squamish Nation serves as a full environmental regulator for this project. Serving as a unique example of economic Reconciliation, this is the first arrangement of its type for an LNG facility."

McDermott will manage onshore construction, leveraging Canadian-based contractors and commitments included in Woodfibre LNG's Impact Benefit Agreements with the Sḵwx̱wú7mesh Úxwumixw (Squamish Nation). It is estimated that 650 people will be working on the Woodfibre LNG site at peak construction. The EPFC contract commits McDermott to Woodfibre LNG's hiring priority for qualified Squamish Nation members and local workers first, followed by British Columbians and then Canadians. The joint priority is to create a safe, inclusive and respectful workplace that brings benefits to the project's Indigenous partners and community.

"This is another example of how we are applying our unique integrated capabilities to solve challenges and create successes for our customers," said Samik Mukherjee, Executive Vice President and Chief Operating Officer of McDermott. "This award is a tremendous opportunity to further demonstrate how our LNG and modularization expertise enables a new generation of sustainable energy solutions."

In addition to the EPFC work, McDermott will also be responsible for commissioning and start-up services. Pre-installation work for the project is planned for early 2022 and will gradually ramp up to September 2023, when major construction is targeted to begin. Major works will continue through to substantial completion, expected in Q3 2027.

PGNiG will purchase more natural gas from Venture Global LNG

PGNiG (Polish Oil and Gas Company) signed amendments to agreements with American companies Venture Global Calcasieu Pass, LLC and Venture Global Plaquemines, LLC to purchase another 2 million tonnes per annum (MTPA) of liquefied natural gas for 20 years. As a result, the volume of LNG contracted from Venture Global LNG by PGNiG will increase up to 5,5 MTPA, which equals approximately 7.4 bcm following regasification.

“The contracts signed today are another important step on the way to full energy security of our country. The American gas which will be supplied by a reliable and predictable partner, together with the fuel that will flow to Poland via the Baltic Pipe gas pipeline from Norway, will allow us to become independent from supplies from the eastern direction. Diversifying the sources of gas imports and the possibility of choice, as well as the freedom to trade in the purchased fuel, increases Poland's energy independence,” commented Jacek Sasin, Deputy Prime Minister and Minister of State Assets.

“The import of LNG allows PGNiG to diversify sources and routes of supply of natural gas. This way we can provide Polish customers with energy security – constant and uninterrupted gas deliveries. This is particularly important considering that natural gas will be a bridge fuel in the process of energy transition of the Polish economy. At the same time, access to American LNG gives us opportunity to develop trade of this fuel on the global market – for this purpose we will charter LNG carriers to transport liquefied natural gas. In this respect, we value cooperation with Venture Global LNG, as it brings us the possibility of achieving our strategic goals,” commented Paweł Majewski, the President of the PGNiG Management Board.

“Venture Global is proud to expand our existing partnership with PGNiG to provide a clean and reliable supply of American LNG to Poland. Since 2018, our two companies have significantly increased our cooperation, nearly tripling the volume of LNG Venture Global will export to PGNiG. Poland will lower its carbon footprint and diversify its energy mix by incorporating more American natural gas into its portfolio. Pivoting towards cleaner natural gas from the United States will not only increase Poland’s energy security but also decrease its carbon emissions, and Venture Global looks forward to supporting our partner PGNiG in these efforts for years to come,” commented Mike Sabel, Chief Executive Officer of Venture Global LNG.

The amendments relate to agreements signed by PGNiG and Venture Global LNG companies in 2018. They determine the increase in the sales volume of liquefied natural gas. In case of the sales and purchase agreement with Venture Global Calcasieu Pass, LLC the amendment provides for an increase in the volume of LNG purchased by PGNiG by 0.5 MTPA to 1.5 MTPA. While the amendment to the agreement with Venture Global Plaquemines, LLC increases the volume of supplies of LNG by 1.5 MTPA to 4.0 MTPA. Thanks to the amendments the total volume of liquefied natural gas that PGNiG will purchase from both Venture Global LNG companies for the period of 20 years will increase to a total of 5.5 MTPA, i.e. to approx. 7.4 bcm after regasification.

The amended agreements are contracts based on the free-on-board (FOB) formula, which means that the purchaser, i.e. PGNiG, is responsible for the loading and transportation of the purchased gas. LNG will be collected from two liquefaction facilities on the Gulf of Mexico – Calcasieu Pass and Plaquemines. The first supplies from Venture Global LNG are planned for the beginning of 2023.