Eni, as Delegated Operator of the Coral South project on behalf of its Area 4 Partners (ExxonMobil, CNPC, GALP, KOGAS and ENH), informs that the first shipment of liquefied natural gas (LNG) produced from the Coral gas field, in the ultra-deep waters of the Rovuma Basin, has just departed from Coral Sul Floating Liquefied Natural Gas (FLNG) facility.
Eni CEO Claudio Descalzi commented that “The first shipment of LNG from Coral South project, and from Mozambique, is a new and significant step forward in Eni’s strategy to leverage gas as a source that can contribute in a significant way to Europe’s energy security, also through the increasing diversification of supplies, while also supporting a just and sustainable transition. We will continue to work with our partners to ensure timely valorization of Mozambique’s vast gas resources”.
Coral South is a landmark project for the industry and firmly places Mozambique onto the global LNG stage. The project, sanctioned in 2017, comes on stream after just 5 years, in line with the initial budget and schedule, despite the disruptions caused by the Covid pandemic. This result was made possible thanks to Eni’s distinctive phased and parallelized approach, a very effective execution planning, and the strong commitment by all partners and the unwavering support of the Government of Mozambique. Coral Sul FLNG has a gas liquefaction capacity of 3.4 million tons per year and will produce LNG from the 450 billion cubic meters of gas of the Coral reservoir.
About Area 4 Area 4 is operated by Mozambique Rovuma Venture S.p.A. (MRV), an incorporated joint venture owned by Eni, ExxonMobil and CNPC, which holds a 70 percent interest in the Area 4 exploration and production concession contract. In addition to MRV, the other shareholders in Area 4 are Galp, KOGAS and ENH, each with a 10 percent participation interest. Eni is the Delegated Operator for the Coral South project and all Upstream activities in Area 4.
Excelerate Energy, Inc. (NYSE: EE) (“Excelerate”) and the Government of the Federal Republic of Germany signed a five-year contract today in Berlin to charter the floating storage and regasification unit (FSRU) Excelsior to help provide energy security and supply diversification to Germany while supporting the country’s transition to renewable energy.
Excelerate’s President and CEO Steven Kobos and Dr. Patrick Graichen, State Secretary at the Federal Ministry for Economic Affairs and Climate Action (BMWK), signed the contract at BMWK headquarters in a ceremony also attended by Woodward Clark Price, Chargé d’Affaires of the United States Embassy in Berlin.
“The deployment of the FSRU Excelsior to Germany demonstrates our commitment to strengthening energy security at a time when traditional energy sources have proven unreliable,” said Steven Kobos, President and CEO of Excelerate. “FSRUs have the ability to offer flexible access to greater supply diversification and can serve as a complementary backstop for the rapid scaling of green energy projects. These benefits are consistent with the stated goals of the U.S.-EU Task Force on Energy Security.”
BMWK previously announced that a consortium including Tree Energy Solutions, E.ON, and Engie would jointly develop and implement Germany’s fifth FSRU import terminal using an Excelerate vessel. The FSRU will accelerate the development of TES’ green hydrogen terminal at Wilhelmshaven.
Under the terms of the agreement, the FSRU Excelsior will go on charter in the first quarter of 2023. The Federal Republic of Germany intends to deploy the vessel in the Port of Wilhelmshaven. The Excelsior, which has an LNG storage capacity of 138,000 m3 and send-out capacity of 5 bcm/y, will go to drydock at the end of 2022 for scheduled maintenance prior to its deployment to Germany.
Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), today announced that Port Arthur LNG and Bechtel Energy have amended and restated the fixed-price engineering, procurement and construction (EPC) contract, for the proposed Phase 1 liquefaction project under development in Jefferson County, Texas. The amended contract includes an updated price of approximately $10.5 billion.
"We are excited to achieve this milestone with Bechtel. The execution of the final contract is a critical step in advancing Phase 1 of Port Arthur LNG toward a final investment decision," said Justin Bird, CEO of Sempra Infrastructure. "Based on robust customer interest, we know that Port Arthur LNG is highly attractive to the global market and we look forward to providing customers with access to secure, abundant and reliable U.S. LNG."
"We are delighted to continue our partnership with Sempra Infrastructure to deliver cleaner and more affordable energy to communities around the world. Alongside Sempra Infrastructure, Bechtel is ready to continue active construction in the Gulf Coast and bring more opportunities to the local region," added Paul Marsden, president of Bechtel Energy.
Under the EPC contract, Bechtel will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing and operator training activities for Phase 1 of the project.
The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks, and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 million tonnes per annum of LNG. A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.
Earlier this year, Sempra Infrastructure announced the substantial completion of marketing for Phase 1 of the proposed Port Arthur LNG Project with the signing of a series of non-binding agreements with the Polish Oil & Gas Company (PGNiG), RWE Supply & Trading, INEOS Energy Trading Ltd., and ConocoPhillips.
Development of Phase 1 and Phase 2 of the Port Arthur LNG project is contingent upon completing the required commercial agreements, securing all necessary permits, obtaining financing, and reaching an affirmative final investment decision, among other factors.
As part of its plan to strengthen and diversify gas supplies to Italy, Eni has begun providing additional volumes of liquefied natural gas to the regasification terminal of Panigaglia (La Spezia) ahead of the 2022-2023 winter.
The first cargo was delivered on Sunday with supplies coming from Angola, reloaded on smaller ships at Spanish terminals for them to be compatible with the terminal in Liguria. Further LNG deliveries from Egypt and Algeria are also expected in October.
The overall contribution of additional LNG volumes to Italy, thanks to the availability of regassification terminals currently under development, will exceed 2 billion cubic meters between 2022 and 2023. It will progressively reach 7 billion cubic meters between 2023 and 2024, and will exceed 9 billion cubic meters between 2024-2025, in addition to further supplies to be delivered via pipeline.
On Thursday 8 September, in the presence of Minister Rob Jetten (Climate and Energy), Prime Minister Petr Fiala of the Czech Republic, the Executive Board of Gasunie and various international contacts, the official start was given to the construction phase of the EemsEnergyTerminal, a floating LNG terminal in the Eemshaven (Groningen). The first LNG tanker also arrived that day. It is expected that the first natural gas will flow into Gasunie's gas network as early as mid-September.
Various technical activities will continue over the next few weeks. The LNG terminal is expected to be operating at full capacity by the end of November/beginning of December.
Every effort has been made to build this terminal, which will be completed in record time. Approximately 500 employees are involved. In the past few days, two FSRUs (Floating Storage Regasification Units) - the Golar Igloo and the Eemshaven LNG - have been moored in the port. Together they form the terminal where liquefied natural gas (LNG), delivered by tanker, is turned into gaseous form.
Han Fennema, CEO Gasunie: 'The EemsEnergyTerminal makes an important contribution to the security of supply and helps the Netherlands and Europe to reduce their dependence on Russian gas. In the longer term Gasunie wants to use the terminal for green hydrogen. In this way, the EemsEnergyTerminal will be able to contribute to the energy supply in the Netherlands and Europe for many years to come'.
Rob Jetten, Minister for Climate and Energy: 'It is very good news that Gasunie, together with all the parties involved at home and abroad, has been able to realise the new LNG terminal so quickly. In addition to saving as much energy as possible and filling the gas storage facilities, the import of liquid gas is indispensable for the security of gas supply in the coming winter. The arrival of the new LNG terminal is an important step not only for the Netherlands, but for the whole of Europe towards reducing its dependence on energy from Russia as quickly as possible'.
Petr Fiala, Prime Minister of the Czech Republic: This is a significant step for strengthening energy security of the Czech Republic. Today, we have set out on the path of energy independence from Russia. The capacity leased in the terminal is able to secure as much as one-third of the Czech Republic’s annual consumption,“
How the EemsEnergyTerminal works
The FSRUs: the Eemshaven LNG (Exmar) and the Golar Igloo (New Fortress Energy) are leased for a period of five years and are located in one of the Eemshaven harbour basins. The incoming boats transporting LNG will in turn moor ship-to-ship to the Golar Igloo for unloading. From there it can be transhipped to the Eemshaven LNG. Both FSRUs can 'regasify' and feed gas into Gasunie's gas pipeline network. A natural gas pipeline and a hot water pipeline have been laid on the quay. There are also connecting pipelines between the FSRUs for the aforementioned transport of LNG. A new gas pipeline has been laid from the quay to Gasunie's existing network. Outside the terminal, the gas pipeline is entirely underground. And although they are physically two FSRUs, EemsEnergyTerminal will provide services to users as a single terminal. The EemsEnergyTerminal will be able to make a total of 8 billion cubic metres of natural gas per year available to the national natural gas network after processing the LNG supplied.
Until this year, the Netherlands only had an LNG terminal in the port of Rotterdam. The expansion in the Eemshaven and the optimisation of the terminal in Rotterdam will double the import capacity for LNG.
Both FSRUs (Floating Storage Regasification Units) have arrived at Eemshaven; the Golar Igloo (built by New Fortress Energy) arrived on Sunday 4 September 2022 and the Eemshaven LNG installation (built by Exmar) also arrived on Wednesday 6 September 2022. Together, these two FSRUs comprise the EemsEnergyTerminal. The project is now entering the next phase, which involves making the terminal technically ready.
The first LNG delivery will also follow this week. LNG (liquefied natural gas) will then be converted into gaseous natural gas. Gas is expected to flow through Gasunie's gas transport network for the first time in mid-September. Various tasks to complete the project will take place in the coming weeks. EemsEnergyTerminal expects to be able to receive, unload and ship around 18 LNG cargoes during the period up to 31 December 2022.
Gasgrid Finland and Fortum have signed an agreement to place the floating storage and regasification unit (FSRU) in Fortum’s port in Inkoo. Located on Finland’s south coast, the port in Inkoo is deep enough for the purpose and is close to pipelines along which gas flows to end-users in industrial and other sectors in Finland, Estonia and the Baltic Sea region.
”The teams at Gasgrid and Fortum have done great work over the summer. The preliminary agreement signed earlier paved the way for the agreement now signed to place the floating LNG terminal in the port of Inkoo. A huge thanks for the great cooperation to date,” says Gasgrid Finland’s CEO Olli Sipilä.
A start has been made on building the port structures and natural gas pipeline and the ambition is to begin deploying the LNG terminal vessel in December 2022.
