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.
Centrica and Delfin Midstream Inc. today announced the signing of a Heads of Agreement to purchase 1.0 million tonnes per annum (MTPA) of Liquefied Natural Gas (“LNG”) for 15-years on a Free on Board (“FOB”) basis at the Delfin Deepwater Port, located 40 nautical miles off the coast of Louisiana.
This agreement provides Delfin with another key foundation customer which will facilitate a Final Investment Decision (FID) for the first floating LNG export facility in the United States by the end of this year, with operations expected to commence in 2026.
"We are very pleased to enter into this agreement with Centrica and continue to rapidly advance Delfin’s position as a leading source of reliable low-cost energy from the safety of the US at compelling prices. Market demand for long-term LNG continues to be strong and buying activity from Europe and various other geographies has accelerated over the past few months. As a modular project that can make FID in 3.5 MTPA increments, this agreement materially advances our first vessel’s path towards FID later this year"
Dudley Poston, CEO of Delfin
Against a challenging geopolitical and macroeconomic environment Centrica has been working to bolster the UK and Ireland’s energy security both now and over the longer term. Last month Centrica signed an additional £4bn supply agreement with Equinor to supply 4.5 million UK homes through to 2025, and this £7bn agreement with Delfin, which starts in 2026, will underpin the expansion of US LNG export capacity, an increasingly important source of stable, reliable future gas supply.
"Natural gas has now been recognised as an essential transition fuel on the path to net zero just at the point geopolitical uncertainty is impacting the global gas market. Additional US gas export capacity will help increase UK, European and global energy security, reflecting the increasing importance of LNG in the global gas supply chain. I’m delighted to sign this Heads of Agreement with Delfin as we continue to deliver our new strategy, growing Centrica’s LNG portfolio and ensuring that we increase our access to a diversified range of reliable gas supplies for our customers."
Chris O’Shea, Centrica Group Chief Executive
"A key component of our Energy Security Strategy is that natural gas is a key transition fuel on the road to clean, affordable, home-grown energy. From renewables to nuclear, we have ambitious plans for greater energy independence, but we are also realistic about our energy needs now and in the years ahead. That means we need to secure more diverse and reliable sources of natural gas from friends, allies and strategic partners. Today’s deal between Centrica and Delfin is positive news for the UK, helping to ensure our diversity of supply from reliable sources - like our friends in the United States - for many years to come."
Kwasi Kwarteng MP, UK Secretary of State for Business and Energy
Gasunie subsidiary EemsEnergyTerminal has sold the remaining capacity of the LNG terminal in Eemshaven to ENGIE SA who purchased the last 1 billion cubic metres (bcm). Earlier contracts were signed with ČEZ (Czech Republic) and Shell Western LNG B.V. The total 8 bcm available in the Eemshaven is now 'sold out'. The first delivery of LNG through the terminal is expected to take place as early as mid-September.
With these new capacities added to its existing LNG portfolio, ENGIE -through its business entity ‘Global Energy Management & Sales’- will strengthen its energy diversification strategy and increase its ability to supply LNG toward Europe.
Ulco Vermeulen, member of the Executive Board of Gasunie, is pleased that the conclusion of the contracts has led to this result "In a period of just three months, the floating LNG terminal is now completely sold out. In the coming weeks, all attention will be focused on the technical preparation of the location for the floating terminal. This too will take place at record speed.”
According to Marc Pannier, Executive Committee Member of ENGIE’s business entity ‘Global Energy Management & Sales’: “These new capacities are part of ENGIE's strategy to secure the supply for our customers and support the energy independency in Europe.”
Until this year, the Netherlands only had an LNG terminal in the port of Rotterdam. The expansion in Eemshaven and the optimisation of the Rotterdam terminal will double the LNG import capacity. The new LNG terminal in Eemshaven will consist of two floating FRSUs (Floating Storage and Regasification Units): the Exmar S188 and the Golar Igloo. They are expected to arrive at Eemshaven in early September.
Over the next five years, the floating terminal will convert liquid natural gas into gaseous natural gas in Eemshaven, after which it can be fed into the national natural gas network. In total, an additional 8 billion cubic metres of natural gas (8 bcm) can be brought to the Netherlands.
Eni informs that it has acquired the company Export LNG Ltd, which owns the Tango FLNG floating liquefaction facility, from Exmar group. The facility will be used by Eni in the Republic of Congo, as part of the activities of the natural gas development project in the Marine XII block, in line with Eni's strategy to leverage gas equity resources.
The Tango FLNG, built in 2017, has a treatment capacity of approximately 3 million standard cubic meters/day and an LNG production capacity of approximately 0.6 million tons per year (about 1 billion standard cubic meters/year). The acquisition of this facility allows the development of a fast-track model capable of seizing the opportunities of the LNG market. In addition, the high flexibility and mobility characteristics of the Tango FLNG will favour the development and enhancement of Eni's equity gas by accelerating production start-up time.
Tango FLNG will begin its activity in Congo in the second half of 2023, following the completion of mooring and connection works necessary to tie with the Marine XII network and infrastructure. LNG production from Marine XII is expected to begin in 2023, and when fully operational it will provide volumes in excess of 3 million tons/year (over 4.5 billion cubic meters/year).
Freeport LNG Development, L.P. (Freeport LNG) and the Pipeline Hazardous Materials Safety Administration (PHMSA) have entered into a Consent Agreement related to the June 8 incident at Freeport LNG’s liquefaction facility. Freeport LNG has a long history of commitment to safety and safe operation and overall, the obligations under the Consent Agreement are intended to ensure that Freeport LNG can safely and confidently resume initial LNG production and thereafter ultimately return to full operation of all liquefaction facilities.
In the near term, the Consent Agreement includes certain corrective measures, many of which are currently underway, that Freeport LNG is to take to obtain PHMSA approval for an initial resumption of LNG production from its liquefaction facility. Freeport LNG continues to believe that it can complete the necessary corrective measures, along with the applicable repair and restoration activities, in order to resume initial operations in early October. Those initial operations are expected to consist of three liquefaction trains, two LNG storage tanks and one LNG loading dock, which the company believes will enable delivery of approximately 2 BCF per day of LNG, enough to support its existing long-term customer agreements. In addition to the repair and replacement of Freeport LNG’s physical infrastructure that was damaged in the incident, and as part of the corrective measures under the Consent Agreement, the company is evaluating and advancing initiatives related to training, process safety management, operations and maintenance procedure improvements, and facility inspections.
