TOPICS OF INTEREST
GAS CONVERSION (LNG/GTL)
Lake Charles LNG Projects Needs Another 5 Years To Build
Global market conditions have impacted Magnolia LNG’s ability to reach FID. Kinder Morgan’s pipeline project also depends on an FID for the Magnolia LNG project.
Baker Hughes Aims To Balance Shifting Portfolio With Energy Transition
As the company aims to become carbon net zero by 2050, it is undertaking a three-pronged approach focused on transforming its core, investing for growth, and positioning for the future.
US LNG Construction Needed To Fuel Energy Transition
Tellurian CEO Meg Gentle outlined how the US LNG market should address expected tight market conditions through 2025 while managing a transition to a carbon neutral environment.
Vietnam LNG-to-Power Project To Use Jetty-Less Technology
The metocean and tidal conditions led to the development of the jetty-less solution for the project, which Delta Offshore continues to push toward FID.
Engineering Construction Firm to Provide FEED for Vietnam LNG Power Project
The FEED contract is expected to be converted into an engineering, procurement, construction, and installation contract in Q1 2021.
Smaller LNG Projects More Viable Ahead of Potential Supply/Demand Shortfall
Companies are planning smaller LNG plants, which may be COVID-proof, but the industry still faces a 100-mtpa supply shortfall in the mid-2020s.
TD Column: What’s Next? Looking Beyond the Decade of Change
To navigate the new business environment, the P&F community must advance promising concepts through the feasibility, design optimization, and/or pilot testing phase into the detailed design, execution, commercialization, and optimization phases.
Tellurian Provides Update on Driftwood LNG Project
The company deferred three of four pipelines as it continues to push toward final investment decision.
As One Louisiana LNG Project Begins, Others Still in Development
The Cameron LNG project completed its final train this month, but other LNG projects such as Calcasieu Pass LNG, Driftwood LNG, and Lake Charles LNG face difficulties during the economic downturn.
Brazilian Major Announces Mothballed Platform and Binding Phases for Offshore/Onshore Assets
The announcements are part of the company’s divestment strategy to reduce debt and improve capital.
New-Design Containment System To Be Deployed on LNG Carrier for China
The LNG A-Box containment system is designed for LNG carriers to serve smaller terminals, where larger ships are not feasible.
What Are the Market Drivers for a Recovery?
Crude oil and natural gas prices may recover moving into 2021, albeit at different rates brought on by a variety of market dynamics. Geopolitics and the potential for another wave of COVID-19 cases and resulting lockdowns still pose a threat to the industry.
Western Australia LNG Project Expects Full Trains Online in September
Repair work on the Gorgon LNG plant’s propane heat exchangers is underway. Planned maintenance on the Gorgon Train 2 was expected to end in July.
South Texas LNG Project To Optimize Number of Trains, Reduce Emissions
The original technology selected in 2015 and 2016 for Rio Grande LNG has since evolved. With five trains instead of six, Rio Grande LNG will still produce 27 mtpa.
Financing Secured for Mozambique LNG Project
The Mozambique LNG project expects to achieve financial close in Q3.
Are Gas Pipelines Really Impossible To Build?
The growing opposition in the US for new natural gas pipelines comes as supply and demand continue to grow. Pipelines are necessary for the transport of the gas. Why is there a disconnect between the two?
LNG Transport Options Widen in North America
Larger-capacity LNG truck trailers and new regulations for transport by rail are providing more options for industrial consumers in remote locations.
US Authorizes Exports From Jordan Cove LNG Project
The US approved construction and operations for the Jordan Cove project in March; first gas is anticipated in 2024
Supply/Demand Fundamentals Bring US LNG Exports Down More Than Half in Q2
The drop in US LNG exports comes amid a combination of weak demand, ample supply, additional capacity coming on line, and flexibility to cancel US cargoes.
Poland To Expand LNG Terminal Capacity
Poland state officials said the terminal expansion is crucial to strengthening the country’s energy security by increasing its capacity to receive LNG and gas from European countries and decreasing its dependence on Russia.
Excelerate Receives its Tenth FSRU in South Korea
The vessel is capable of operating as both an FSRU and a fully tradable LNG carrier.
Chevron to Divest its Stake in North West Shelf LNG JV
Potential suitors to acquire Chevron’s stake in the LNG project include co-owner and operator Woodside.
Experts Discuss the Health of US LNG Industry
Texas LNG’s CEO Vivek Chandra and ALNGE Principal Luc Speeleveld outlined key issues and concerns facing the US LNG industry now and in the future as market dynamics remain affected by COVID-19.
Siemens, Total Team Up To Decarbonize LNG
Goal is to reduce plant emissions profile and boost sustainability in production.
SwRl Uses AI To Detect, Quantify Small Methane Leaks
Machine learning enables fast, cost-effective, and accurate methane emissions detection in remote areas.
Arctic LNG 2 Project on Schedule for 2023 Startup
The meeting with project partners comes less than a month after Mammoet was awarded an unloading, transportation, and installation contract.
Lake Charles LNG Project Gets New Ownership
With the acquisition of Magnolia LNG, along with its Texas LNG Brownsville project, Glenfarne Group expands its export capacity to 12 mpta.
UPDATE: Total Faces $12 Billion Shortfall as it Continues $20 Billion Mozambique LNG Project
Construction on Mozambique LNG stopped in April due to COVID-19, but Total continues work on the project even amid a $12 Billion shortfall. Financing for the Mozambique LNG project follows engineering contracts awarded by Total in the past few months.
Mammoet Awarded Unloading, Transport, Installation Contract for Arctic LNG 2
The contract is Mammoet’s biggest in terms of aggregate tonnage. The Arctic LNG 2 project reached FID in September 2019.
Cameron LNG Sees First Production from Train 3 In Louisiana
Production from Train 3 comes almost a month after reaching its final commissioning stage. Commercial operations will follow testing and authorization from FERC.
Rio Grande LNG FID Expected in 2021
FID on RGLNG was originally expected in 2019, before it was pushed to Q1 2020. NextDecade will continue to develop and de-risk the project.
Western Australia Gas Producers May Profit From Oil Crash
The race is on to fill NWS gas export plant.
Global LNG Industry Faces Shutdowns Following Six Years of Continued Growth
New LNG capacity in 2019 kept pace with higher trading volumes and supply/demand growth. Key questions and barriers still remain for the future of the LNG industry in 2020.
Nigeria LNG Train 7 Progresses With EPC Contract
Train 7 is scheduled for commissioning by 2024 and would bring total capacity of Nigeria LNG’s complex to 30 mtpa.
W-Industries Awarded Contract for Mozambique LNG Project
The W-Industries contract comes 2 months after Worley was awarded a master service agreement for services on the Mozambique LNG project.
TechnipFMC To Design $10-Billion LNG Plant in Russia
The proposed Russian LNG project would sell LNG to Asia by 2025. It is the latest in a handful of LNG projects slated for Russia.
Sempra Energy’s Port Arthur LNG Project the Latest To See Delayed FID
The LNG market remains a mixed bag heading into Q2. Port Arthur LNG is just the latest to see a delayed FID, while other LNG projects are still moving ahead.
Natural Gas Markets Remain Regionalized
Historically, natural gas contract prices were tied to the price of crude; now, volatility and growth in spot-market liquidity signal a shift from long-term linking toward a more integrated market.
Greenfield E&P Tenders Are Set To Shrink to $60 Billion in 2020, a 2-Decade Low
Rystad Energy's analysis shows the decline is in contrast to $170 billion worth of tenders awarded in 2019. Tender activity is expected to show marginal recovery in 2021, reaching about $74 billion.
Shell Postpones FIDs on GoM and North Sea Projects
The deferments are the latest actions Shell has taken in response to record low crude prices.
Cameron LNG Reaches Final Commissioning Stage of Train 3
The final commissioning stage of Train 3 brings the Cameron LNG project closer to initial production expected in Q2.
China’s GCL Subsidiary Plans LNG JV With Shell in Jiangsu
The planned JV is for one of three LNG terminals GCL is planning to build in China.
Qatar Petroleum Outlines Plans for LNG Projects
Qatar Petroleum will delay its North Field LNG expansion in Qatar with startup in 2025. Its Golden Pass project in Texas remains on track.
Total To Charter First LNG-Powered VLCCs
The VLCCs will be delivered in 2022, with LNG supply provided by Total Marine Fuels Global Solutions.
ExxonMobil Delays FID on Rovuma LNG, Moves Forward With Coral FLNG
The Rovuma LNG project in Mozambique was expected to reach FID later this year, with startup in 2025.
Successful String Test of Calcasieu Pass System Moves Project Forward
The successful string test comes 7 months after the company's FID on the Calcasieu Pass LNG project.
Global Gas Prices Expected To Drop Further Than Expected in 2020
The drop in gas prices, although greater than forecast, will not be to the same extent as oil prices.
Market Conditions Take Shell out of Lake Charles LNG Project
Energy Transfer will look at taking on new partners and possibly reducing the size of the Lake Charles LNG project.
Status Updates of North American LNG Projects Offer a Mixed Bag
Several companies have provided updates on their North American LNG projects, including Pembina, LNG Canada, and Sempra. The outlooks vary from plans to move ahead to others seeking money to stay afloat.
Mexico LNG Project Awards Technip USA a FEED Contract Award
LNG project in Mexico moves closer to FID in 2021.
Leviathan Offshore Platform To Empty Natural Gas
A fault was identified at the Leviathan platform’s production system. This comes a month after a malfunction was discovered at the project’s subsea pipeline.
Freeport LNG Project Introduces Feed Gas to Train 3
Initial production at Freeport LNG Train 3 is expected in the first quarter. The project’s final commissioning stage included feed gas.
Alaska LNG Project Receives Environmental Impact Statement
The Alaska LNG project moves another step closer to a final order, expected in June.
Sempra Energy and Bechtel Units Sign EPC Agreement for Port Arthur LNG
This is the second EPC contract Bechtel signed for Port Arthur LNG. Final investment decision is expected this year.
Cameron LNG Train 2 Starts Commercial Operations 7 Months After Train 1
Train 2 has a projected export capacity of 4 mtpa. Train 3 is expected to reach production in Q2 2020.
Eni Resolves Dispute With Partners To Restart Damietta LNG Plant in Egypt
The Damietta LNG plant is expected online by June 2020. The plant will be owned by ENI, EGAS and EGPC.
AG&P Breaks Ground on Karaikal Port LNG Facility in South India
AG&P breaks ground on Karaikal LNG.
Qatar Delays Western Partnerships for LNG Expansion Project
Qatar has reportedly delayed the selection of Western partners for its massive North Field LNG project.
US Issues Four LNG Export Approvals
Texas facilities get green light to export LNG. US export capacity is expected to almost double over the next 5 years.
Coronavirus Set To Slash Chinese LNG Demand but US LNG Tariff Lift Could Save the Day
The unseasonably warm weather in the northern hemisphere and the rise of the global supply levels has resulted in record-low LNG prices. Adding to that, the coronavirus epidemic in China has reduced business and industrial activity, with January’s LNG imports dropping by about 10% year on year.
Edge LNG’s “Virtual Pipeline” Expands in Marcellus
A producer in the Marcellus Basin selected Edge Gathering Virtual Pipelines 2 to capture and liquefy gas from its stranded wells in Tioga County. Initial operation is underway and is set to be ongoing until at least 2022.
Asian Spot Prices for LNG Take a Dive
Asian spot prices for LNG took a dive to multiyear lows, feeling the pressure of the lack of demand. Holders of previously agreed upon long-term buyer contracts seek renegotiation.
Natural Gas Prices Raise Questions About the Future Energy Mix
Natural gas has emerged as a potentially major player in the energy mix, but what role will price pressures play in sanctioning gas supply projects and in LNG markets?
Venture Global Delays FERC Application Filing Date for Delta LNG
The move allows Venture Global further evaluate pipeline route alternatives that could reduce impacts in tidal marsh environments along the Mississippi River.
Saudi Aramco, Sempra Sign IPPA for Port Arthur LNG
The agreement comes 8 months after Saudi Aramco agreed to take a 25% ownership interest in the southeast Texas project. Phase 1 of the project is expected to produce 11 mtpa of LNG.
First Cargo Shipped From Freeport LNG Train 2
McDermott said the first cargo was a precursor to substantial completion of Train 2. The liquefaction unit began production on 6 December.
US LNG Exports Reach Record Levels in Consecutive Months
Citing shipping data from Bloomberg Finance, the US EIA estimates that LNG exports set consecutive records in October and November 2019. Through the first 11 months of the year, US LNG exports have gone up 61% from their 2018 annual average.
Saudi Aramco Shipping Unit Expresses Interest in LNG Tankers
Bahri, Saudi Arabia's national shipping carrier, is looking into chartering as many as 12 LNG tankers starting in 2025, according to a new Reuters report. The EOI may be part of Saudi Aramco's expansion into LNG trading.
First Deck Stacking Operation Completed for Coral FLNG Topsides Modules
The Eni-operated project will be the first FLNG vessel deployed in a deepwater field offshore the African continent upon its projected 2022 startup. Samsung Heavy Industries completed the operation at its shipyard in Geoje, South Korea.
Shell, Energy Transfer Issue Tender Package for Lake Charles Project
The tender invites EPC contractors to develop a commercial bid for the lump-sum turnkey contract based on a fully developed scope related to design, engineering, technical, and safety specifications for the project. Commerical bids are expected next year.
BP, Total Sign Supply Deals With ADNOC LNG
ADNOC said the agreements will maximize its access to new markets, effectively booking out the majority of its LNG production through the start of 2022.
Woodside Reaches FID on Pluto-NWS Interconnector Pipeline
The pipeline is the first step in developing the infrastructure needed to transport gas between Pluto LNG and the Karratha Gas Plant in Western Australia. Woodside is targeting 2022 startup.
Partners Advance Newbuild FLNG Vessel Development for Gulf of Mexico Project
Delfin Midstream announced advancements in partnership with Samsung Heavy Industries and Black & Veatch. By re-purposing existing offshore pipelines and building the FLNG vessels at Asian shipyards, the total capital costs are projected to be around $500–550/tpa.
TechnipFMC’s Newly Named E&C Player To Focus on LNG
Technip Energies will work on a backlog comprising more than 50% in LNG-related business. Retaining the TechnipFMC name, RemainCo will generate nearly 90% of its revenue outside the US and Canada.
Abu Dhabi Investor Commits $50 Million to NextDecade
NextDecade and Mubadala Investment Co. have reached agreement for Mubadala to purchase $50 million of NextDecade’s common stock in a private placement. The capital buoys the development of the Rio Grande LNG export solution linking Permian Basin associated gas to the global LNG market.
ExxonMobil Agrees To Supply Gas for Alaskan LNG Export Project
The deal sees ExxonMobil provide feed gas from its Point Thomson field to Qilak LNG’s proposed export project, which would use icebreaking carriers to export 4 mtpa of LNG to Asia directly from Alaska’s North Slope.
Elba Island LNG To Be Fully Operational By Mid-2020
Kinder Morgan, the majority owner and operator of the Georgia export terminal, said the oft-delayed project should have all 10 trains running by the first half of next year.
Santos Acquires ConocoPhillips's Australian Assets for $1.39 Billion
The deal for ConocoPhillips’s northern Australian portfolio will help the Australian company boost its position in the country’s gas market, as it gains majority ownership in a set of key assets including Darwin LNG and the Barossa project.
Total Expands Partnership With Adani on India’s Gas Market
The agreement—in which Total will reportedly pay $600 million for a 37.4% stake in the Indian gas conglomerate—boosts the supermajor’s LNG market access in India and neighboring countries. It is the latest move in Total’s aggressive expansion of its LNG portfolio.
FERC Delays Jordan Cove Environmental Review
The US Forest Service, which is working with FERC to prepare the review of the export terminal off the Oregon coast, said it only recently received critical information needed to complete amendments to its land and resource management plans. First gas is scheduled for 2025.
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ITEMS OF NOTE
07 August 2018
20 July 2018
16 February 2018
18 December 2017
28 November 2017