LNG and Gas Processing

Global Project Data update for October 2020

Although the gas processing and LNG industries took a major hit during the COVID-19 pandemic, new project announcements within the sector have increased for two straight months

Business Trends: The downstream dilemma: Past, present and future of downstream energy

The oil industry’s interest in the downstream segment of the business has known ups and downs. This article reviews the past, present and projected future of the downstream sector and its companies.

Business Trends: Global LNG projects to compete with pipeline gas

Expanding LNG supply worldwide will continue to dominate the changing landscape of the natural gas industry and gas trade. By 2040, LNG is expected to account for more than 15% of global gas consumption, after overtaking interregional pipeline deliveries in the late 2020s.

Construction begins at massive polymer plant

A construction site in the Amur Region saw the sinking of the first test pile in the foundation of Amur Gas Chemical Complex, a facility set to become one of the world’s largest and most advanced basic polymer producers. The official ceremony was held online and was attended via video conference by Mikhail Mishustin, Prime Minister of the Russian Federation, relevant Ministers, Vasily Orlov, Governor of the Amur Region, Dmitry Konov, Chairman of the Management Board at SIBUR Holding, and other representatives of government authorities, the Company and its partners.

FERC Approval Gives Alaska LNG 10 Years to Start Operations

Federal authorization for the Alaska liquefied natural gas (LNG) project sets a 10-year deadline to start operating the gas pipeline and liquefaction plant, twice as much time as regulators have generally allowed for other U.S. LNG export terminal developers to build multibillion-dollar facilities.

Amid Challenges, Natural Gas Remains Growing Part of Energy Mix

According to S&P Global Market Intelligence, 120,498 MW of gas-fired capacity came online between 2008 and Aug. 1, 2019. Twenty percent of that was in 2018 and 2019 alone, and roughly 200 new gas plants have been proposed or are in development right now.

Singapore says LNG bunkering capacity likely to hit 1MM tons by 2021

Singapore’s annual LNG bunkering capacity is expected to hit 1MM tons by 2021, as the world’s largest marine refueling hub transitions toward cleaner shipping fuels, a senior minister of state said. The push is part of the International Maritime Organisation’s (IMO) aim to halve the sector’s greenhouse gas emissions by 2050 from 2008 levels.

Japan's JERA looking to build 2 LNG power plants, scrap 5 aging units

Japanese power generator JERA announced it has begun an environmental assessment on building two 650 megawatt (MW) LNG power plants at its Chita thermal station in central Japan, and plans to scrap five aging plants.

A quiet year for LNG

A quiet year for LNG 2020 has been a quiet year for the global LNG industry, certainly as far as project development is concerned. The Covid-19 global pandemic has had a negative effect across the whole industry, from plants to shipyards. If 2019 was business as usual for the booming LNG industry,..

Golar Power offers top bid for Petrobras's LNG terminal

Golar Power Ltd has submitted the top bid for a highly-sought-after LNG import terminal being leased by Brazil’s state-run energy firm Petrobras, two people with direct knowledge of the matter said. The terminal and regasification facility was offered under a wider government effort to end the state oil company’s monopoly in natural gas imports and processing. The Bahia state terminal can process 20 MM cubic meters per day of LNG and includes a 45 kilometer pipeline.

BP's Tangguh LNG Train 3 in Indonesia delayed again due to pandemic

The start of operations of Train 3 at BP's Tangguh LNG plant in Indonesia is set to be pushed back again due to labour restrictions implemented as a precaution during the coronavirus pandemic, the company and a regulator said. Train 3 is now expected to start production in the fourth quarter of 2021, Dwi Soetjipto, chairman of upstream oil and gas regulator, SKK Migas, told a parliamentary hearing on Wednesday.

Goldboro LNG project signs service agreement contract

Pieridae Energy Limited announced it has signed a services agreement with global engineering firm Bechtel related to Pieridae’s 2-Train Goldboro LNG Facility. Some of the key deliverables in the services agreement are: Initiating a detailed review of the scope and design of the Goldboro LNG Facility and developing a comprehensive engineering, procurement, construction and commissioning (EPCC) execution plan by March 31, 2021; Delivering a final lump sum, turnkey EPCC contract price proposal by May 31, 2021; and Conducting a meaningful engagement with the Nova Scotia Mi’kmaq First Nations including their participation in the construction of a large-scale work camp at the LNG site.

Dominion shuts Maryland Cove Point LNG export plant for annual maintenance

Dominion Energy has shut its Cove Point LNG export terminal in Maryland for annual maintenance expected to last about three weeks, according to energy traders and company notices to customers. Natural gas flows to the plant fell close to zero on Monday from around 0.7 billion cubic feet per day (bcfd) since its last maintenance outage from Sept. 20-Oct. 13, 2019, according to data from Refinitiv.

Freeport gets more time to build Train 4 at LNG export plant in Texas

(Reuters) - U.S. energy regulators granted Freeport LNG's request for three more years - until May 2026 - to complete its proposed fourth liquefaction train at its LNG export plant in Texas. The U.S. Federal Energy Regulatory Commission (FERC) approved construction of the fourth train in May 2019, requiring Freeport to finish the facility within four years by May 2023.

Snam's DESFA eyeing 20% stake in Greek offshore LNG terminal

Greek gas grid DESFA, 66%-owned by a consortium led by Italy’s Snam, is interested in buying a stake in an offshore LNG terminal in northern Greece, people familiar with the matter said. DESFA is considering taking a 20% stake in the consortium developing the Alexandroupolis LNG project, which is expected to be operational by 2023, the sources said.

Up to 7 MMtpy of spare capacity available at North West Shelf by 2027

Wood Mackenzie’s latest report shows that the North West Shelf (NWS) LNG project could have up to 7 million tons per year (MMtpy) of spare capacity available by 2027. This equates to 40% of the project’s nominal capacity. The Woodside-operated five-train NWS facility has been producing LNG since 1989. Next year production capacity becomes available for the first time.

Chevron delays restart of Gorgon LNG unit

Chevron Corp anounced it will delay till October the restart of the Train 2 unit at its Gorgon LNG plant in Western Australia, as more time is needed to repair welds on its propane heat exchangers. Train 2 at Australia’s second-largest LNG plant has been shut since May for maintenance, which was extended after cracks were found in the production unit’s propane kettles. The company had hoped to complete the repairs by early September.

Cheniere says no major damage to Sabine Pass plant from Hurricane Laura

U.S. LNG producer Cheniere Energy Inc said Hurricane Laura caused no significant damage to its Sabine Pass liquefaction facility and pipeline assets in Louisiana. The massive storm hit Louisiana last week with 150 mile-per-hour (240 kph) winds, damaging buildings, knocking down trees and cutting power to more than 650,000 people across two U.S. states but its surge was much less than predicted.

Venture Global LNG reports minimal impacts of Hurricane Laura on Calcasieu Pass LNG

Venture Global LNG, Inc. announced that its Calcasieu Pass LNG facility under construction in Cameron, LA has sustained minimal impacts from Hurricane Laura, which made landfall in Louisiana and passed directly over the project site.

Russian bank to provide $741 MM loan for Gazprom's new LNG project

Russian state development bank VEB said it will provide a 55 billion rouble ($741 million) loan for Gazprom’s LNG project near the Baltic Sea port of Ust-Luga. The project will comprise building both a gas processing complex with an annual capacity of 45 billion cubic meters and a 13 million ton per year LNG plant at the site.

Cameron LNG Train 3 begins commercial operation

McDermott International Ltd. 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).

Freeport seeks more time to build Train 4 at LNG export plant

U.S. LNG company Freeport LNG asked federal energy regulators for three more years until May 2026 to complete its proposed fourth liquefaction train at its LNG export plant in Texas. The U.S. Federal Energy Regulatory Commission (FERC) approved construction of the fourth train in May 2019, requiring Freeport to finish the facility within four years by May 2023.

Hydrogen economy offers low-emissions fuel to combat air pollution

The air quality indexes (AQIs) and particulate matter (PM) concentrations in many fast-developing countries and regions are climbing to high levels that are considered extremely hazardous to public health and the environment. For example, the AQI of New Delhi, India was recently assessed above 300 (severe), and PM2.5 (aerodynamic diameter < 2.5 µm), PM10 (aerodynamic diameter < 10 µm) concentrations also reached extremely hazardous levels.

International consortium to supervise Cyprus LNG infrastructure project

The Natural Gas Infrastructure Company of Cyprus (ETYFA) completed the evaluation procedure for the selection of the Owner’s Engineers team that will advise ETYFA and oversee the project for the development of the Cyprus LNG Import Terminal. The consortium “Hill International N.V. and Bureau Veritas Solutions Marine & Offshore Greek branch” was ranked first, with Tractebel and Gazocean as subcontractors. The Owner’s Engineers team is internationally renowned, with strong representation in Europe

Chevron expects to restart Train 2 of Gorgon LNG plant in early September

Chevron Corp expects to restart Train 2 of its Gorgon LNG plant in Australia in early September after completing repairs, a company spokesman said. Gorgon is carrying out the repair work after a routine inspection of the train’s propane heat exchangers during planned maintenance found weld quality issues, the spokesman said.

Tellurian stock soars after India's Petronet renews investment deal

Shares of U.S. LNG developer Tellurian Inc soared after Indian sources familiar with the matter said India’s top gas importer, Petronet LNG, renewed a deal to give the parties more time to finalize an investment in Tellurian’s Driftwood export project in Louisiana. Shares of Tellurian, which did not comment on the Petronet deal, were up as high as 53% in midday trade.

Total signs $14.9 B debt financing for huge Mozambique LNG project

French oil major Total has signed a $14.9 billion senior debt financing agreement for its massive LNG project in Mozambique, the biggest project financing ever in Africa, it said. The project includes the development of the Golfinho and Atum natural gas fields in the Offshore Area 1 concession, and the construction of a two-train liquefaction plant with a capacity of 13.1 million tons per annum, Total said.

Oil firms ready to pick up the infrastructure divestment pace

Pipelines, storage facilities and processing plants could replace non-advantaged production as prime candidates Oil and gas producing firms create the most value by exploring for, developing and producing hydrocarbons. Internal rates of return (IRRs) far in excess of 20pc are the norm for successful upstream ­projects.

Caution creeps into investors’ oil and gas infrastructure appetite

The US downturn and the inexorable rise of ESG concerns are clouds on the horizon even for traditionally low-risk energy investments Infrastructure assets have remained relatively immune to the negative sentiment from investors towards fossil fuels—good news for IOCs looking to sell off non-core pipelines, processing plants and storage tanks to generate cash. But this immunity may be waning. Investors like the steady source of revenue from these assets, which help to diversify their investment portfolios and can provide some protection from low oil prices.

Poland signs deals to expand its LNG terminal

Poland has signed contracts worth 1.9 billion zlotys ($483 million) to expand its LNG terminal in Swinoujscie on the Baltic Sea to 8.3 billion cubic meters (bcm) by 2023 from 5 bcm now in response to increasing domestic demand. An LNG unit of Poland’s gas infrastructure operator Gaz-System and the ports of Szczecin and Swinoujscie on Wednesday signed a contract with a consortium of Porr and TGE Gas Engineering on the expansion project.