LNG Unlimited LNG JOURNAL PUBLICATION 9 July 2019 Alaska LNG permit process back UNLIMITED on track with challenges ahead AGENDA US regulators have issued environmental SHIPPING impact statement as a draft for public comment China yards may LNG Journal editor merge to compete with South Korean The US Federal Energy Regulatory consolidation plans Commission has issued the draft 2 environmental impact statement on the Alaska LNG project pro- PROJECTS posed by the Alaska Gasline Devel- Woodfibre export opment Corp. and concluded that plant receives it would have significant impacts provincial permit on the state offset by many eco- to start building Graphic showing liquefaction plant at Nikiski on Kenai nomic benefits. Peninsula in southern Alaska where pipeline ends 3 The project was launched nine years ago and LNG would be pro- a permit leading to construction. scrutinized,” he explained. ENGINEERING duced and exported by 2025 after A public comment period has The gas treatment facilities TechnipFMC wins engineering, construction and pro- now started as part of the permit comprising a main plant at Prud- Indian contract duction costs estimated at around process and would last until Octo- hoe Bay and the Point Thomson for KG offshore $43 billion. ber 3. gas transmission line would be on natural gas The FERC draft report said that state land designated for oil and 5 Measures the project would have significant natural gas development within The FERC conclusions were that environmental impacts if it goes the North Slope Borough. UPSTREAM the venture's significant environ- ahead, though most impacts could “We conclude that project con- mental impacts would also bring be minimized with mitigation struction and operation would re- an economic boost from export measures. sult in temporary, long-term, and revenues in commercializing the “However, some of the adverse permanent impacts on the envi- natural gas resources of Alaska’s impacts would be significant even ronment,” said the FERC report. North Slope. after the implementation of miti- “Most impacts would not be sig- Alaska’s project would com- gation measures,” stated the nificant or would be reduced to less Kosmos drilling prise several pipelines, including a regulator. than significant levels with the im- offshore Senegal shows potential for 807-mile main line of 42-inches in The President of the state- plementation of proposed or recom- more LNG output diameter and with associated owned AGDC, Joe Dubler, said the mended avoidance, minimization above-ground facilities. FERC report represented substan- and mitigation measures, but some 6 These include eight compressor tial progress for the Alaska LNG impacts would be adverse and sig- stations and a liquefaction facility project. nificant,” explained the regulator. TERMINALS with output of 20 million tonnes “Alaska LNG holds the poten- “We conclude that constructing Dunkirk boosts per annum at Nikiski on the east- tial for significant energy, eco- the project would have significant carrier traffic ern shore of Cook Inlet on the nomic and employment benefits impacts on permafrost due to gran- and cites easy Kenai Peninsula. for Alaskans,” said Dubler. ular fill placement, particularly market access The main pipeline would de- “We will now begin to thoroughly for the Mainline Pipeline facili- 7 liver peak capacity of 3.9 billion examine this comprehensive docu- ties,” it said. standard cubic feet per day of ment to understand the Commis- “The project would have signif- EQUIPMENT natural gas from companies such sion’s recommendations,” he added. icant adverse impacts on wetlands as US major ExxonMobil and BP of “The ongoing permitting pro- from granular fill placement re- GE drive system the UK. cess incorporates 150,000 pages of sulting in substantial conversions expected to boost LNG production The publication of the three- data and should give Alaskans con- of wetlands to uplands,” added at Oman plant volume FERC report marks a key fidence that the project’s merits the report. step in the state’s efforts to secure and impacts are being rigorously n 9 2 l NEWS LNG Unlimited 9 July 2019 South Korean shipbuilding merger may be matched by China consolidation for LNG and other orders LNG Journal editor Industries gained 85 percent of the world's total orders for LNG The Asian shipbuilding industry is carriers in 2018. heading for even tighter competi- The merger would give the tion for orders to build vessels Chinese companies the scale to such as LNG carriers, oil tankers match Hyundai’s proposed acquisi- and container ships as two of the tion of Daewoo Shipbuilding. largest Chinese shipbuilding com- CSIC's major shipyards are panies are examining a merger located in Dalian, Qingdao and plan at the same time as two of Wuchang, along with a large num- the biggest South Korean shipyard ber of associated suppliers and operators are also advancing with research facilities. a merger proposal. Its sales revenue amounted to South Korean companies 305 billion yuan ($44.3 billion) in Hyundai Heavy Industries and Dae- CSIC has major shipyards in Dalian, Qingdao and Wuchang 2018, with profit of 6.9 billion woo Shipbuilding & Marine Engi- yuan ($1Bln). It currently manages neering, are still moving slowly filings on July 2 that they were structuring, international collabora- five listed companies. forward with their merger plans planning a strategic restructuring, tion and research and development CSSC's core assets include first revealed in February 2019. though their plans have still to be activities,” said a supporting state- Shanghai Waigaoqiao Shipbuilding, approved by the relevant authori- ment from the China Association of Jiangnan Shipyard Group and Largest ties in Beijing. the National Shipbuilding Industry. Hudong-Zhonghua Shipbuilding as Now China State Shipbuilding Both CSSC and CSIC have said If the merger goes through, the well as the Longxue shipbuilding Corp. (CSSC) and China Shipbuild- they believe they could compete two Chinese shipbuilding groups facilities in Guangzhou, the port ing Industry Corp. (CSIC), the better as a single company in will have more sales volume than city in southeast China. country's two biggest state-backed seeking orders for LNG carriers, their South Korean competitors, as CSSC had annual sales of 114.4 shipbuilders by production capac- military vessels and cruise liners. well as other shipbuilders around billion yuan ($16.6Bln) in 2018, ity, are discussing a merger to “It's time for capable Chinese the world. with 2.4 billion yuan in profit. The compete against regional rivals. shipyards to make complex, high South Korean shipbuilders, group to date has three listed The two Chinese listed compa- value-added vessels to reach buyers Hyundai Heavy and Daewoo Ship- companies. nies announced in stock exchange in new segments through asset re- building as well as Samsung Heavy n Global LNG maritime fuel group signs up first US Port member and second in North America Sea-LNG, a global coalition of en- the Port of Vancouver in the “The addition of the Port of currently undertaking a $700 mil- ergy and shipping companies back- Pacific Coast province of British Virginia to the coalition marks the lion expansion project to increase ing the increased use of liquefied Columbia, was signed up in March climbing interest in LNG as a com- overall container capacity by 40 natural gas as a maritime fuel, has 2019 as the fourth port member to mercially viable, environmentally percent, as well as increasing lift- signed up its first US port as a join the coalition. sustainable fuel for US domestic ing and docking capabilities across member and its second in North The other port company mem- and international shipping,” its six terminals. America after Vancouver in bers are the Port of Rotterdam, stated the Chairman. In March 2019, the port also es- Canada. Yokohama-Kawasaki International Sea-LNG now has 36 members tablished a working group to exam- Sea-LNG said the Port of Port Corp. of Japan and most re- who also comprise shipping compa- ine the benefit and scalability of Virginia is the first in the US to cently the Maritime and Port Au- nies, classification societies, major LNG bunkers for maritime trade. join the multi-sector industry thority of Singapore. LNG suppliers, LNG bunkering com- “The Port of Virginia has al- group and the fifth worldwide. “We’re very pleased to wel- panies, infrastructure providers ways been at the center of mar- The Port of Virginia is an inter- come the Port of Virginia as our and equipment manufacturers. itime innovation,” said John F. national hub port on the Atlantic first US port member,” said Peter The Port of Virginia is just Reinhart, Chief Executive of the Coast adjacent to the Norfolk Keller, Chairman of Sea-LNG. south of the LNG export plant at Virginia Port Authority. naval base with connections to “The US has vastly increased its Cove Point on Chesapeake Bay in “Our industry is evolving and over 45 countries worldwide, and LNG export capacity since the in- Maryland which supplies Asian na- the issues of alternative marine an extensive rail network across dustry really took flight in early tions and others with the fuel. fuels and ports reducing their car- the United States. 2016, inspiring development in LNG As part of its pledge to deliver bon footprints are growing in their The Vancouver Fraser Port bunkering capabilities on the East operational excellence and sustain- importance,” he added. Authority, the federal agency of and West Coasts,” added Keller. able growth, the Port of Virginia is n 9 July 2019 LNG Unlimited NEWS l 3 US plant Woodfibre export plant receives developer provincial permit to start building presses on LNG Journal editor with funding Woodfibre LNG, the small-scale Venture Global, the US lique- Canadian export project planned fied natural gas developer pur- for near Squamish in British suing three projects in the state Columbia, has been granted a per- of Louisiana, has now raised a mit by the provincial authorities total of $2.8 billion in financing to proceed with construction. and much more will be needed The Woodfibre liquefaction as it presses ahead with plans plant will be located on the site to produce 56 million tonnes of a former pulp mill about 7 kilo- per annum of LNG for export. metres from Squamish and 70km Venture Global said it had north of Vancouver. just raised $675 million of addi- Woodfibre President David Keane praises positive step tional capital from “world-class Facilities institutional investors” to be It will comprise a facility with Woodfibre LNG President David He noted that the company had used primarily for the further output of 2.1 million tonnes per Keane. also undertaken an environmental development of its proposed annum and LNG storage tanks with “This is a positive step forward assessment process in cooperation Plaquemines export project 250,000 cubic metres of capacity. as we work to build the cleanest with the native North American in Louisiana with 20 MTPA of Woodfibre is a Canadian sub- LNG export facility in the world,” Squamish First Nation. output. sidiary of Pacific Oil & Gas, a unit added Keane. “The progress we have made Analysts say that the cost of of the Royal Golden Eagle group of “This permit specifies require- would not be possible without the bringing one large-scale LNG Indonesian businessman Sukanto ments the project must comply contributions and feedback made liquefaction and export plant Tanoto and whose headquarters with for design, construction and by our First Nation partners and the on stream with associated facil- are in Singapore. operation of the Woodfibre LNG Squamish community,” said Keane. ities and around 27 MTPA of “Following a rigorous process, Project, with a focus on public “We are dedicated to bringing production is estimated at over Woodfibre LNG is pleased to have and environmental safety,” he benefits to British Columbia $25 billion. received our Facility Permit issued explained. through jobs and economic devel- “In addition to $855M of cap- from the BC Oil and Gas Commis- “Previous to this permit, Wood- opment, and ultimately a project ital previously raised by Venture sion, one of the key permits re- fibre LNG is proud to have received that will have significant positive Global and the $1.3Bln project- quired for construction and three major environmental assess- impact,” he added. level equity commitment from operation of the project,” said ment approvals,” stated Keane. n Stonepeak Infrastructure Part- ners, Venture Global has now raised total committed capital TC Energy sells Appalachia unit of more than $2.8Bln to support the development of its facili- but keeps pipelines to LNG plant ties,” said the company. The Arlington, Virginia-based TC Energy Corp., the Canada- and liquids assets. These assets In addition to owning interstate company’s Plaquemines venture based North American pipeline connect production to markets pipelines supplying US LNG export is sited near river mile-marker and infrastructure company, has throughout western Pennsylvania, plants and natural gas markets, the 55 on the west side of the Mis- agreed to sell US shale basin mid- eastern Ohio and northern West Calgary, Alberta-based TC Energy is sissippi River, 30 miles south of stream assets held by its sub- Virginia. also tasked with building the New Orleans. sidiary Columbia Midstream Group This sale does not include any pipeline to the LNG Canada plant The project will include mul- for US$1.27 billion to UGI Energy interest in Columbia Energy Ven- being developed near Kitimat in the tiple small-scale liquefaction Services of the US. tures Company (CEVCO), which is province of British Columbia. Trains, four LNG storage tanks TC Energy, which recently TC Energy’s minerals business in “The sale of Columbia Mid- and three marine loading berths. changed its name from Tran- the Appalachian Basin. stream Group advances our ongo- The company’s most ad- sCanada Corp., said the transac- TC Energy emphasized it would ing efforts to prudently fund our vanced plant in terms of devel- tion was expected to close in the continue to own and operate its industry-leading portfolio of high- opment is at Calcasieu Pass in third quarter of 2019 subject to significant network of interstate quality natural gas pipelines, liq- Louisiana with current nameplate customary regulatory approvals. pipelines in the Appalachia with its uids pipelines and power export volumes of 12 MTPA. Columbia Midstream, which op- Columbia Gas Transmission system, generation projects, while maxi- The third project is the erates in the Appalachian Basin, which transports low-cost natural mizing value for our sharehold- Delta plant with a site also on owns four natural gas gathering gas supplies from the shale produc- ers,” said Russ Girling, TC Energy the Mississippi River. systems and an interest in a com- tion region to markets in the US, President and Chief Executive. n pany with gathering, processing including LNG export facilities. n PRODUCED BY: SUPPORTED BY:

CONNECTING YOU WITH THE ENTIRE LNG & GAS VALUE CHAIN IN CHINA

Li Yalan Wang Lei Zheng Hongtao Liu Jingbo Andrew Walker Chairperson of the General Manager of President, Energy Deputy General Manager VP Strategy Board of Directors Natural Gas Department Trading & Marketing Guangzhou Gas Group Cheniere Beijing Gas Group PetroChina International ENN Group

Tom Earl Mabel Leung Fu Shaohua Bernard Samuels Huang Yonggang Chief Commercial Officer President, China Gas Deputy General Manager General Manager Vice President Venture Global LNG Marketing Shanghai Petroleum and Shell Energy (China) China Huanqiu ExxonMobil Natural Gas Exchange Contracting (China) & Engineering

PLATINUM SPONSOR

GOLD SPONSOR SILVER SPONSORS

BRONZE SPONSORS

OFFICIAL RESEARCH PARTNER SUPPORTING ORGANISATIONS

www.chinalngsummit.com #ChinaLNG

For further information, please contact Wayne Zhang on +44 20 7978 0000 or email [email protected] 9 July 2019 LNG Unlimited NEWS l 5 NEWS TechnipFMC win India contract NUDGES for Krishna Godavari gas project Arctic LNG LNG Journal editor for Japan The Japanese state body, Japan TechnipFMC, the Franco-US energy Oil, Gas and Metals National engineering company, said it was Corp. (Jogmec) and the trading awarded a significant subsea con- house Mitsui & Co. have signed tract by Reliance Industries of India an accord for a 10 percent par- for the development of a large ticipating interest in the Arctic natural gas field in the Krishna LNG II project being developed Godavari basin of the Bay of Ben- by Russian natural gas company gal offshore Andhra Pradesh. Novatek and partners. The par- The MJ1 field is located in ticipation provides for the long- deep water of the basin which term LNG offtake of around 2 covers an area of 15,000 square million tonnes per annum by kilometres onshore and 25,000 Offshore projects are costing $5 billion to supplement LNG the Japanese partners. Novatek square kilometres offshore. said the agreement would be begin production in mid-2022. The 10 percent of the country’s pro- finalized in the near future sub- Scope East Coast of India is lacking natu- jected gas demand in 2022. ject to regulatory approvals. TechnipFMC said the contracts ral gas supplies and this is holding Reliance and BP only sanc- cover the fabrication and installa- back industrial development. tioned the MJ project, the third- GTT orders tion of flexible risers, rigid and While there are five LNG im- phase of the KG D6 development, for Maran flexible flowlines and umbilicals. port terminals on India's West on June 11 2019. Gaztransport & Technigaz The project is in 700-1,100 Coast, there is only one on the The MJ project is the third of (GTT), the French LNG storage metres water depth with a well East Coast at Kamarajar Port in three new ventures in the Block technology company, said it re- depth of 4,200 metres below the Tamil Nadhu which was commis- KG D6 integrated development ceived an order from the South mean sea-level in a high-tempera- sioned in 2019. plan and its approval follows those Korean shipyard Daewoo Ship- ture and pressure environment. India consumes more than 5 taken over the last two years for building & Marine Engineering It comprises of wells connected billion cubic feet a day of natural the “R-Series” deep-water gas (DSME) concerning the tank de- to a subsea production, with tie- gas and aspires to double gas con- field and the “Satellites” cluster. sign of four new LNG carriers on back to a Floating Production Stor- sumption by 2022. Together the three projects are behalf of the Greek ship-owner age and Offloading vessel to process Reliance and its partner, BP of expected to develop a total of Maran Gas. The delivery of the and separate liquids, and gas the UK, have said natural gas pro- about 3 trillion cubic feet of dis- ships each with 174,000 cubic which will be exported to the on- duction from the KG D6 integrated covered gas resources with a total metres capacity is planned be- shore terminal through one of the development is expected to help investment of around 35,000 crore tween the end of 2021 and existing 24-inch trunk pipelines. reduce India’s dependence on LNG rupees (US$5 billion). early 2022. The project is expected to imports and would amount to over n

TurkmenGas in new deal JGC of Japan names executives Russian natural gas company Gazprom, whose pipeline sup- for new company structures plies compete with LNG imports JGC Corp. of Japan, one of the The increasing values of LNG Senior executives have now in Europe, said it signed a five- leading global energy engineering plant construction contracts, run- been named for the overhauled year contract to purchase companies with successful project ning into billions of dollars, are company. pipeline supplies from Turk- completions such as Ichthys LNG in raising the threshold of corporate JGC Holding Corp. will have menistan until June 2024. Australia and the Russian Yamal risk Masayuki Sato as Chairman and According to the contract, sup- venture, has named its senior ex- JGC’s current business is cen- Chief Executive and Tadashi plies from the former Soviet ecutive teams in an overhaul to tered on engineering, procure- Ishizuka will be President and Central Asian republic will add create a holding company and ment and construction (EPC) in Chief Operating Officer. some 5.5 billion cubic metres of separate new divisions. the overseas oil and gas sector, JGC Corp. executive officers gas per annum to Gazprom's JGC explained that it was and the company is dependent on are President Tetsuya Muramoto portfolio. Gazprom resumed its changing its structure to become the success or failure of projects and the Senior Executive Vice procurement of Turkmen gas in a holding company with tighter in this field. President is Tsutomu Akabane. April 2019. Between April 15 management to help alleviate the Its new structure will be over- The Oil & Gas project company and June 30, a total of 1.2 Bcm risk factors in the business. seen by JGC Holdings, and with will be headed by Satoshi Sato, was delivered under a short- The new corporate structure other subsidiaries being JGC Corp. the current Executive Vice Presi- term contract. will come into being at the start JGC Oil & Gas and JGC Infrastruc- dent of JGC Corp. n of October 2019. ture Company. n 6 l NEWS LNG Unlimited 9 July 2019 Kosmos says latest drilling offshore Senegal suggests potential for more feed-gas to underpin LNG output LNG Journal editor awarded in April 2019 to US engi- Kosmos Energy, the main share- neering company KBR for the pre- holder with BP of the UK in float- front-end engineering and design ing liquefied natural gas projects services work for Phases 2 and 3 offshore Mauritania and Senegal in of the Greater Tortue-Ahmeyim West Africa, said the latest well venture. drilling in the Greater Tortue- The first gas from the Kosmos- Ahmeyim field may lead to an BP FLNG Train 1 is scheduled for expansion of resource potential 2021 and the start of the second and estimates and to more LNG FLNG Train is set for 2023. production. Tortue-Ahmeyim LNG project is on track and the feed-gas The GTA-1 well is located off- Kosmos, based in Dallas, Texas, resources are growing (Graphic:Thomas Fuchs) shore Senegal and was drilled in said its latest drilling in the 2,500 metres of water, about 10 Greater Tortue Ahmeyim-1 well continue to grow over time and Mauritania reserves and agreed to kilometres from the Guembeul-1A (GTA-1), encountered approxi- could lead to further expansion of sell BP around 60 percent of the and Tortue-1 wells, to a total mately 30 metres of net gas pay in this world-scale LNG project with licences in 2016 with the UK major depth of 4,884 metres. the high-quality Albian reservoir. 10 million tonnes per annum of taking over operatorship. Kosmos said that the “Ensco production,” said Kosmos Chair- The US company retained DS-12” rig, working on behalf of Delivery man and Chief Executive Andrew around 30 percent of the Senegal operator BP, will now drill the The Greater Tortue-Ahmeyim LNG G. Inglis. fields and licence and about 28 Yakaar-2 appraisal well in Senegal project is on track to deliver first “In addition, Kosmos’s process percent of the project’s Maurita- in the coming weeks, before gas by mid-2022 and the well, to sell down its interest to 10 per- nia holdings. drilling the Orca-1 exploration which has been designed as a cent has received considerable in- Kosmos added that as of May well in Mauritania late in the third future producer, will be used to terest from the industry, with 2019, all major contracts have quarter. further optimize the development initial bids expected over the sum- been awarded for phase one of The other partners of BP and drilling plans for the BP-operated mer, and a transaction conclusion the project and construction ac- Kosmos in the cross-border project. anticipated by year-end,” added tivity has commenced with work Greater Tortue-Ahmeyim project “The GTA-1 well confirms our Inglis. on the floating production storage include the national oil and gas expectation that the gas resource Kosmos was the original suc- and offloading unit. companies of both countries. at Greater Tortue-Ahmeyim will cessful explorer of the Senegal- The latest contract was n

The whole LNG Market at your fingertips • Increased market visibility through a quick “lowdown of the market” on Monday morning and detailed “bird’s eye” view of the past month • Break-down and illustration of complex LNG trade relations backed by real data to increase feel for the market • Access to pre-digested primary market data • Consistent & systematic market perspectives • Market and fleet overview in one convenient package 9 July 2019 LNG Unlimited NEWS l 7 Zeebrugge Dunkirk terminal boosts carrier terminal set visits citing easy market access to secure LNG Journal editor new contracts The Dunkirk liquefied natural gas The Belgian Federal Commission import terminal on the Channel for Electricity and Gas Regula- Coast of France said it accommo- tion has approved the tariff and dated 37 LNG carriers during the liquefied natural gas services first five months of the year and agreement proposals for un- in June also received a cargo from loading slots and additional the newest US export plant, storage services at the Zee- Cameron LNG in Louisiana. brugge LNG import terminal. “This intense level of activity is The regulatory approval due to a complex combination of clears the way for Fluxys LNG to factors linked to the supply of and Import facility is attracting cargoes from Russia and US finalise new long-term contracts demand for LNG on global markets One of its advantages is that it LNG on the global market,” said for the facility up to 2044. as well as the appeal of the offers easy access to European gas Dunkirk manager Dumont. “The approval allows us to Dunkirk LNG terminal in the mar- markets for new LNG cargo sources Dumont said that LNG produc- turn binding interest from the ket of northwest Europe,” said such as Russia and the US as well ers have been forced to find the market into new long-term con- Pierre Dumont, volumes manager as traditional suppliers like Alge- best possible outlets for their vol- tracts worth roughly 1 billion at the Dunkirk LNG company. ria, Qatar, Nigeria and Norway. umes while taking into account euros,” said Pascal De Buck, French energy major Total, a the market conditions. Chief Executive and Chairman Louisiana purchase shareholder in the US Cameron “On the one hand, it offers of Fluxys Belgium, the transmis- The 177,000 cubic metres capacity plant, was one of the original share- access to both the French and Bel- sion network operator. carrier “Marvel Crane” arrived holders in Dunkirk LNG with France’s gian markets and, on the other, it The director of the regula- with the US cargo on June 18 at main utility Engie, though both offers a competitive and environ- tory Commission, Laurent the French terminal. sold their Dunkirk stakes in 2018. mental advantage thanks to the Jacquet, said the tariffs have The Dunkirk facility was com- However, Total is still a supporter use of warm water from the Grav- decreased for all terminal users missioned at the end of 2016 and of the Dunkirk facility, which also elines nuclear power plant to re- who unload and store LNG, and is now owned and operated by a receives Russian volumes from the heat the LNG and thereby turn it inject natural gas into the consortium comprising Fluxys of Yamal plant in northern Siberia, back into a gas (before it enters transmission system. Belgium, operator of the Belgian where Total is also a stakeholder. the transmission network), instead “Through the new tariffs, Zeebrugge import terminal and in- “The huge influx of LNG at our of using a more costly form of the Commission has established surance and banking groups from terminal is attributable, in part, energy,” he explained. a solid and stable framework France and South Korea. to the supply of and demand for n for regulatory supervision in the future,” explained Jacquet. “These favourable conditions Equity fund Ancala buys share of consolidate Zeebrugge's position as an access point for LNG deliv- UK regas terminal from Petronas eries to Europe,” he added. Ancala Partners, a London-based Shell then became a stake- as a counterparty to a long-term Fluxys said that the current private equity fund, has acquired holder in the terminal when it throughput agreement. long-term contracts for unload- a 50 percent stake in the UK acquired BG in 2016. “Dragon LNG is well placed to ing at the Zeebrugge terminal Dragon LNG import terminal in The Dragon terminal is one of benefit from reducing UK gas stor- expire in 2028. Milford Haven in Wales from three LNG regasification facilities age capacity and maturing North During a subscription win- Malaysian energy company in the UK, the third being the Isle Sea gas production,” said Lee dow held from 30 April until Petronas. of Grain facility southeast of Lon- Mellor, a partner at Ancala. May 24 unloading slots and ad- The Petronas stake was sold don, owned by National Grid. “With revenues underpinned by ditional storage services at the for an undisclosed amount and The terminal has a gas send- a long-term availability-based Zeebrugge facility were offered Ancala’s partner in the LNG termi- out rate to the National Transmis- throughput agreement with Shell over subsequent periods up to nal will be Royal Dutch Shell. sion System of up to 9 billion and Petronas, the transaction rep- 2044. Petronas was an original in- cubic metres of natural gas, or resents an attractive addition to “The subscription window vestor in the Dragon LNG facility around 6.5 million tonnes of LNG. our portfolio and expands our proved highly successful and re- with BG Group of the UK. Facilities at the terminal were midstream infrastructure activi- vealed binding interest from The Dragon facility came on recently enhanced through com- ties,” added Mellor. the market for the entire un- line in 2009 alongside the exist- missioning of a small-scale UK-based international law loading capacity at the facility ing South Hook LNG terminal, reliquification plant. firm Dentons said it advised up to 2044,” stated Fluxys. owned by Qatar Petroleum and Petronas will continue to be a Petronas on the transaction. n ExxonMobil. customer of the Dragon terminal n Powering the Energy Future through LNG

Where no natural gas pipeline exists Chart offers complete solutions for LNG as a primary fuel for power generation, or as a secondary fuel where natural gas pipeline capacity is constrained.

• Diesel, propane, LPG and oil displacement • Emergency back-up and curtailment • Remote locations and islands • Temporary power generation • Peak shaving

Email: [email protected] www.ChartLNG.com 9 July 2019 LNG Unlimited NEWS l 9 General Electric’s variable drive system chosen to boost production for three Oman LNG Trains LNG Journal editor from various gas fields and the new Khazzan field production has General Electric, the US power ended all resource concerns for systems provider, said it was cho- the near future. sen to provide key equipment for “The oil and gas landscape is the proposed increase in liquefied shifting as such that companies natural gas production at the Sul- are turning attention to the more tanate of Oman liquefaction plant environmentally-friendly LNG in the Arabian Peninsula. sources to meet the energy de- GE said it would provide the mand. And we are right here to full Variable Speed Drive System help,” said Ed Torres, Chief Execu- with the 18-megawatt (MW) two- tive of Marine and Oil & Gas at pole motor to replace the existing Omani export plant at Sur on the western Arabian Peninsula GE’s Power Conversion business. 7.5-MW motor. The Sultanate has revitalised Oman LNG has decided to embark “We have a track record to de- its LNG production after the Khaz- on debottlenecking various sys- liver some of the world’s landmark Integrated zan natural gas discovery by BP tems and optimizing existing com- LNG projects,” he added. “With similar weight and foot- and the plants near the port of pressor train performance. “Leveraging on our multiyear print, GE’s drive system can be Sur have been at near nameplate Ultimately, the debottleneck- experience, world-class technology easily integrated into the existing capacity since 2017. ing project will increase the and execution capability, we are plant layout with faster execution GE won a tender for the equip- plant’s overall production at pro- the partner of choice for providing time,” said the US power provider. ment as part of the Oman’s debot- ject completion across three liq- electrical solutions for the LNG ap- The Omani facilities export to tlenecking project as the nation uefaction Trains. plication,” stated the GE executive. Japan, South Korea and the spot moves to monetize its recent natu- The three Trains had previously KBR, the US energy and LNG market and comprise the amalga- ral gas finds with more LNG exports. suffered from a lack of feed-gas as engineering company, was awarded mated three liquefaction Trains of After identifying specific areas supplies were diverted to fill do- the front-end engineering and de- Oman LNG and Qalhat LNG, now in the plant that further enhance mestic gas shortages. sign contract by Oman in May 2019 producing more than 10 million efficiency and create additional The Omani government allo- for the debottlenecking project. tonnes per annum. value from surplus gas in the grid, cates Oman LNG feed-gas supplies n

Algeria changes strategy to pipelines for Europe and gas for industry over more LNG exports

Algeria, the North African liquefied The agreement follows another inches wide and around 370km infrastructure,” added Eni. natural gas producer, has agreed a reached with Algerian state energy long, from the Algerian-Tunisian Sonatrach Chief Executive renewed deal with Tunisia and Ital- company Sonatrach in May in rela- border near Oued Saf to the Cap Rachid Hachichi also met with Eni ian energy company Eni for the tion to the purchase of gas and Bon headland. It also has five counterpart Descalzi to review pipeline transportation of more transport across the Strait of Sicily compression stations. progress on boosting natural gas natural gas to southern Europe as and completes the contractual “With a transport capacity of output in the North African nation. the Algerians also prepared to di- framework that allows Eni to im- approximately 34 billion cubic Sonatrach reported in early rect new gas finds into industry port Algerian gas into Italy. metres per annum, it plays a key 2019 that several petrochemical rather than LNG exports. With this agreement, Eni said role in Italian and Tunisian energy joint ventures were under negoti- Algerian LNG exports have been it was undertaking to operate the supply and will continue to do so,” ation to monetise its natural gas falling and last year they dropped Algeria-Tunisia-Italy pipeline for stated Eni. through channels other than by 18.2 percent to 10.10 million the next 10 years, through its sub- The Italians added that the pipeline and LNG exports. tonnes compared with 12.34MT the sidiary Trans-Tunisian Pipeline pipeline contributed to the diver- Industry is therefore expected previous year at its two liquefac- Company (TTPC), ensuring the sification of sources and to the to remain the main driver of natu- tion plants at Skikda and Arzew on necessary reinvestment for mod- energy transition in the Italian ral gas consumption growth in Al- the Mediterranean Coast. ernising infrastructure and taking market. geria in the near future. Tunisian Industry Minister Slim advantage of the exclusive rights “The agreement represents a Residential and commercial de- Feriani and Eni Chief Executive to the entire transport capacity. further confirmation of Eni's long- mand is set to remain stable, with Claudio Descalzi signed the new Built in the early 1980s and standing commitment to North limited consumption growth owing agreement to transport Algerian strengthened subsequently over African countries, not only in hy- to gas already having high market natural gas by pipeline through several phases, the trans-Tunisian drocarbon exploration and produc- penetration in Algeria. Tunisia. pipeline consists of two lines, 48 tion, but also in managing transport n