LNG Unlimited LNG JOURNAL PUBLICATION 29 October 2019 TechnipFMC on road to split-up UNLIMITED shows LNG strength with orders AGENDA Five LNG projects have moved forward INVESTMENT and Houston company Canadian assets has won two of them firm finds value in LNG Journal editor Maryland plant of Dominion Energy TechnipFMC, Franco-US energy and 2 LNG engineering company, said its split into two separate listed com- BUNKERING panies was on track for the first half FortisBC gains of 2020 as it posted a 6 percent in- Friendly divorce: split will see Houston-based ‘RemainCo’ support for crease in third-quarter revenues to taking subsea under CEO Pferdehirt and Paris-based Vancouver $3.33 billion as new large-scale LNG ‘SpinCo’ holding LNG under CEO Catherine MacGregor refuel station contracts were awarded. 3 The results included after-tax added. “We believe strongly that Pferdehirt concluded by saying charges and credits with adjusted providing independence for these that he wanted to “recognize the EARNINGS third-quarter net income at $54.4 two world-class, high-performing dedication, commitment and Chart benefits million, down more than 61 per- businesses will unlock further op- demonstrated results of the women from sustained cent from the $139.8M reported in portunities and create value for and men of TechnipFMC that have demand for its the same 2018 quarter. all stakeholders,” stated the CEO. enabled us to take this next step” LNG equipment TechnipFMC is one of the lead- to further reshape the industry. 5 Decision ing engineering, procurement and “Thanks to their continued ef- TechnipFMC said in August 2019 construction companies whose fort, we are making solid progress STORAGE that it had decided to spin off its current contracts include projects towards completing our planned Maritime LNG European-based engineering and in the US, as well as the Russian separation in the first half of storage design construction operations into a sep- Arctic LNG II project proposed for 2020,” he said. firm GTT raises arate business, leaving the Hous- the Gydan Peninsula and the With approximately 15,000 em- newbuild income ton-based half of the firm as a Mozambique LNG joint venture in ployees, the LNG and energy spin- 8 technology-focused equipment southeast Africa. off would still be one of the largest supplier to the oil and gas sector. “Five LNG projects over the engineering players in the sector. TERMINALS The strategy is to reverse the past five months have either been It would be incorporated in the 2017 merger of Technip of France sanctioned or moved closer to Netherlands with its headquarters AES Andres LNG and FMC Technologies of the US, a final investment decision in 2020, in Paris and would remain listed on contract oversight is with European transaction valued at the time at including the Arctic LNG 2 and the Euronext Paris stock exchange. firm Tractebel $20Bln as it created TechnipFMC as Rovuma LNG projects that were TechnipFMC previously said that a fully-integrated subsea provider. awarded to TechnipFMC and our Catherine MacGregor, who joined 9 “In the third quarter, we an- partners,” said Pferdehirt in the the company in July 2019 after more PROJECTS nounced a transformational move third-quarter earnings statement. than two decades at energy services to create two diversified, pure- “Rovuma builds upon our first firm Schlumberger NV, would be play market leaders,” said Doug mover advantage and early invest- the CEO of the engineering and Pferdehirt, Chairman and Chief ment in Mozambique, where we construction services spin-off. Executive of TechnipFMC. are already executing the floating The standalone company would “The separation will enable LNG scope on the Coral project,” be headed by TechnipFMC CEO both companies to benefit from added the CEO. Pferdehirt. It would have its dedicated focus of management, “The award also serves as fur- headquarters in Houston, Texas, Bangladesh signs resources and capital while high- ther confirmation of our leader- and be listed on both the New Saudi investors lighting the unique value proposi- in LNG and our strong York Stock Exchange and Euronext for terminal and tion and differentiated investment capabilities in the delivery of re- Paris exchange. gas-fired power appeal of each company,” he mote projects,” he stated. n 11 2 l NEWS LNG Unlimited 29 October 2019 Brookfield Asset Management finds value in plant in Maryland whose owner has varied energy interests LNG Journal editor tively small in comparison to Che- niere Energy’s Sabine Pass plant Canadian equity fund Brookfield where 22.5 MTPA of LNG is being Asset Management has purchased produced from five Trains and a 25 percent stake in Dominion with one more Train being built. Energy Cove Point LNG, the single- Construction of the Cove Point Train Maryland plant holding tolling liquefaction facility began in Octo- agreements with Indian and ber 2014, following more than Japanese companies. The transac- three years of federal, state and tion shows the growing value of US local permit reviews and approvals. liquefaction and export facilities. Its cost compared with other Asset firm’s CEO is Canadian-born Bruce Flatt Dominion Energy, the Cove Point plants was modest, though the parent company, said the deal establish a permanent capital struc- formed into an export plant at a build-out was the largest construc- with Toronto-based Brookfield was ture for the LNG subsidiary, whose cost of $4.1Bln as the US bene- tion project ever for Maryland and valued at more than $2 billion. assets include the liquefaction plant fited from the shale-gas boom to for Dominion. Cove Point has exported around and storage facilities on Chesapeake become an exporter. CDO Farrell said the deal im- 40 LNG cargoes so far in 2019 Bay at Lusby in Maryland. “The agreement highlights the plied an enterprise value for Cove after shipping its first cargo in Cove Point LNG also owns a compelling intrinsic value of Cove Point LNG of $8.22Bln, not includ- March 2018. 136-mile pipeline connecting the Point and allows us to efficiently ing working capital. plant to the interstate pipeline redeploy capital toward our robust Dominion said it planned to use India-Japan system. regulated growth capital pro- the proceeds for general corpo- Japanese trading house Sumitomo Brookfield is led by Canadian- grams,” said Dominion Energy rate purposes and to reduce an- Corp. and partner Tokyo Gas and born Chief Executive Bruce Flatt Chief Executive Thomas Farrell. nual equity financing. Indian state-owned gas utility Gas and has around $330 billion of as- Cove Point began commercial Dominion plans to continue to Authority of India each have 20- sets under management and fol- export operations in April 2018 and retain full operational control of year tolling contracts for liquefac- lows the same value-investment the facility has a nameplate capac- Cove Point after the closing of the tion capacity at Cove Point. strategy. ity of 5.25 million tonnes per transaction, which is expected by The deal is part of Richmond, Cove Point is a former LNG im- annum of LNG from its single Train. the end of 2019. Virginia-based Dominion’s plan to terminal that was trans- The Cove Point plant is rela- n Dominion to spend $500M with food giant to convert US hog waste to pipeline gas in at least five states Dominion Energy, the developer of Smithfield's company-owned and hog manure, food waste and adopt a far-reaching greenhouse- the Cove Point LNG export plant in contract hog farms and convert it wastewater. gas reduction goal throughout its Maryland, and a joint venture into clean RNG. When released into the atmo- entire supply chain. partner plan to double their in- With the additional $250M in- sphere, methane emits around 25 “Our partnership is revolution- vestment in renewable vestment the companies would times more greenhouse gases than izing the future of sustainable en- (RNG) projects across the US to produce enough RNG to power carbon dioxide. ergy and agriculture in this $500 million capturing methane more than 70,000 homes and busi- By capturing methane from country, and we are thrilled to from hog farms and converting it nesses by 2029. farms, the development of RNG partner with Smithfield to grow into pipeline-quality gas that can “Align RNG's first project in significantly reduces GHG emis- this exciting new industry,” said be used to heat homes, power Milford, Utah, will be operational sions from agricultural operations. Diane Leopold, President and businesses and fuel vehicles. this year and will produce enough “When fully implemented, the Chief Executive of Dominion En- Dominion said the investments RNG to power more than 3,000 expanded partnership announced ergy's Gas Infrastructure Group. with Smithfield Foods Inc. through local homes and businesses at full today will prevent more than 2.5 “We're not only reducing green- 2028 would expand their Align capacity,” they said. million metric tons of greenhouse house gas emissions, we're also RNG joint venture beyond its ini- “After researching ways to trans- gases from entering the atmo- turning a waste product into a tial projects in North Carolina, form manure into renewable energy sphere, the same as taking more clean energy resource,” explained Virginia and Utah to pursue new for nearly two decades, Smithfield, than 500,000 cars off the road or Leopold. projects across the country, in- together with our partners, has de- planting more than 40 million new “We're capturing 25 times more cluding in Arizona and California. veloped a proven business model trees,” said the companies. greenhouse gas emissions from the Dominion and Smithfield Foods that can be expanded at scale The Dominion and Smithfield farm than are ever released when formed Align RNG in November across the country,” they added. efforts culminated in 2016 when the gas is used to heat homes or 2018, committing $250M over 10 Methane is produced from a va- Smithfield led the industry as the power businesses,” she added. years to capture methane from riety of natural sources, including first major protein company to n 29 October 2019 LNG Unlimited NEWS l 3 IEnova makes FortisBC and WesPac supported progress on for Vancouver bunkering plans pipeline and LNG Journal editor LNG plant The British Columbia provincial IEnova, the Mexican subsidiary of government in Canada and provin- California-based utility Sempra cial Premier John Horgan said they Energy and developer of the would support the Vancouver Costa Azul LNG export terminal Fraser Port Authority and utility on the Pacific Coast of , company FortisBC to establish the said third-quarter earnings de- first ship-to-ship LNG bunkering clined, though it expected future service on the West Coast of North profits from the commercial America. start-up of the new natural gas FortisBC, the provincial power pipeline from Texas to Mexico. company is moving forward with IEnova reported a 3 percent US company WesPac Midstream to LNG bunkering jetty location at plant on Fraser River fall in earnings to US$231.2 mil- develop a full-service LNG bunker- new demand for LNG from shipping LNG carrier and a berth for lion as the company welcomed ing jetty on Tilbury Island on the because of the IMO restrictions. smaller LNG bunkering . the coming on line in September Fraser River and environmental WesPac plans to build the tem- The WesPac-led joint venture is 2019 of the South Texas-Tuxpan assessment of this project is porary bunkering berth until a expected to cost around C$150 natural gas pipeline holding a underway. permanent one is constructed million (US$115M) and will supply 35-year supply agreement with by 2022. LNG to both the domestic and the Mexican state-run Federal IMO cap The proposed jetty will be international markets. Electricity Commission. The International Maritime Organi- located at Tilbury Island in the In addition to a domestic In the first nine months of zation’s cap on sulfur in fuel comes southern part of the Fraser River, bunkering market, WesPac said it 2019, IEnova reported higher into effect in 2020 and the BC where FortisBC’s Tilbury Island expected there would also be LNG gross earnings of $684.8M com- government said it would help the LNG plant has also undergone an export opportunities, with pared with $668.5M million in shipping industry to turn to LNG to expansion in production capacity. being the main market. the same period of 2018. meet those stricter rules. The Tilbury plant now has an WesPac said it expected to see The California utility’s other The project near Vancouver in- annual capacity of 3 million up to 69 bunkering barges and 68 assets in Mexico include the cludes putting a temporary floating tonnes of LNG per annum. LNG carriers coming to and from Costa Azul LNG import terminal bunkering terminal in place by 2020 Once completed the jetty the Fraser River terminal annually. on the Pacific Coast that is being to meet what is expected to be would have one berth for a single n transformed into an export plant. Costa Azul will have lique- faction capability constructed Largest LNG bunkering vessel in two phases. The first part of the transformation of the plant is launched at Chinese yard will see the building of a single French major Total saw its first bunkering vessels currently in sulfur content of marine fuels as liquefaction Train to be located LNG bunkering ship launched at operation worldwide. of 2020,” said Total. adjacent to the existing termi- the Hudong-Zhonghua Shipbuilding These include the “Engie Zee- “In this context, the transition nal and with capacity for 2.4 yard near Shanghai. The unnamed brugge” (2017) with capacity of from heavy fuel oil to LNG is a MTPA of exports. vessel is subject of a charter con- 5,000 cubic metres, the Shell- competitive, efficient and imme- At the earnings conference tract between Total and fleet owned “Cardissa” (2017) with diately available solution for mar- call, IEnova said the final invest- owner Mitsui OSK Lines of Japan. 6,500 of capacity, the “Coralius” itime transportation,” it added. ment decision on the Costa Azul It is expected to enter service (2017) with 5,800, the “Coral The launch of the Total bunker- venture was scheduled for the in 2020 in the Dutch port of Rotter- Methane (2018) with 7,500, the ing vessel near Shanghai comes first quarter of 2020. dam fueling LNG-power container “Kairos” (2018) with 7,500 and in several weeks after the first of The company said it was still vessels for French - the US the “Clean Jacksonville” the LNG-powered container settling the project's engineer- ping company CMA CGM under a (2018) with 2,200 of capacity. ordered by CMA CGM took to the ing, procurement and construc- contract lasting at least 10 years. Total said its 135-metres-long water at the Shanghai Jiangnan- tion bidding process, its offtake The ship is fitted with innova- vessel would meet the highest Changxing Shipyard. contracting as well as some reg- tive tank technologies provided by environmental standards with the The Marseille-based CMA CGM ulatory permits. French storage design firm GTT, use of LNG as fuel and complete line shipping group is one of the “We continue to advance on giving the ship 18,600 cubic me- reliquefaction of boil-off gas. world’s largest container vessel all three fronts,” stated IEnova tres of capacity. “The LNG bunker vessel’s con- operators with over 500 ships and Chief Executive Tania Ortiz Total’s newbuild is more than struction is in line with the Inter- the first ship launched is one of Mena. double the capacity of the biggest national Maritime Organization nine on order. n of the other 10 or so such LNG decision to drastically limit the n Powering the Energy Future through LNG

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Email: [email protected] www.ChartLNG.com 29 October 2019 LNG Unlimited NEWS l 5 NEWS Chart benefits from sustained NUDGES demand for its LNG equipment UK FSRU LNG Journal editor extension InfraStrata plc, the UK-listed Chart Industries, the maker of company focused on strategic equipment for the liquefied natu- infrastructure projects, said ral gas and industrial gas indus- it had extended its period of tries, posted a surge in revenues exclusivity entered into with as it benefited from orders across Meridian Holdings, a Cayman Is- all sectors from large liquefaction lands company, to facilitate the plants to small-scale LNG while acquisition of a floating storage benefiting from contributions and unit (FSRU) from its acquisitions. venture in the UK. InfraStrata Chart, whose headquarters are Demand for tanks and other engineered products is rising has now extended its exclusivity in the suburbs of Atlanta, said it accord until the 8th of January continued to see revenue and or- proceed on Venture Global’s Cal- any additional big LNG orders,” 2020. ders strengthen in particular in the casieu Pass LNG export project in said Jill Evanko, Chart’s President liquefaction, storage and transport Louisiana, as well as an additional and Chief Executive. Nakilta’s markets for global LNG and for in- $6.6M order for air cooled heat- “Further, we expect $1 billion profits rise dustrial gas infrastructure. exchangers on the venture. of additional big LNG-related Gas Transport Co., also Third-quarter revenue of orders in the second half of 2020 known as Nakilat, posted nine- Portfolio $357.8 million increased by 31.4 which extends our upcycle for rev- month results showing a 10.5 The company is a supplier of percent compared with the same enue and earnings through 2023,” percent rise in net profits of 728 equipment to US LNG export pro- three months of 2018 when it was stated the CEO. million Qatari riyals ($200M) jects on the Gulf Coast being $272.2M. Chart posted net income of versus 659M riyals during the developed by Cheniere Energy, “Our margin expansion activi- $18.7M for the third quarter, down same period of 2018. “Nakilat’s Tellurian Inc. and Venture Global. ties from the past nine months, ex- from the $22.2M in the prior-year strong financial performance Chart said third-quarter orders ceeding scheduled synergies from quarter, though up from $14.4M in bears testament to the com- of $286.2 million included record recent acquisitions, and our multi- the second quarter of 2019. pany’s ongoing emphasis and order levels for LNG fueling sta- ple aspects of growth potential “Global LNG infrastructure ac- continuous improvements to tions, lasers and hydrogen, con- with no heavy reliance on any one tivity continues to ramp up, with remain competitive within the tributing to record backlog of single application or end market LNG opportunities currently being global energy transportation $755.6M. positions us to deliver approxi- pursued by Chart in 71 countries,” market, sustaining healthy cash- During the quarter, Chart mately $5.00 of projected adjusted said the company. flow and generating steady re- received full and final notice to earnings per share in 2020, before n turns for our shareholders, said Nakilat Chief Executive Abdullah Georgia firm signs Vietnam deal Fadhalah Al Sulaiti. as third Asia cooperation accord JERA deal in Vietnam Chart Industries and Energy Capi- be a future supplier of downstream age, gas supply system and 3,200 JERA Co. Inc., the largest tal Vietnam, a southeast Asian fo- equipment for LNG terminals. MW gas-fired power project near Japanese LNG buyer and thermal cused asset management firm, ECV has close relations with Mui Ke Ga in Binh Thuan Province on power plants owner, said it have signed an accord to promote the Office of the Vietnamese the southeast coast of Vietnam. signed an accord with Vietnam the distribution of liquefied natu- Prime Minister and the Ministry of “As the global LNG infrastruc- Electricity for cooperation in ral gas within Vietnam with Chart Industry and Trade, the key au- ture build-out continues in over 70 the LNG value chain. Under the as the supplier of downstream thoritative body that oversees the countries, we are pleased to part- deal, JERA and the Vietnam and other equipment as well as energy sector. ner with ECV and other like-minded power company would discuss its expertise. The country’s total LNG demand companies to accelerate a cleaner opportunities for mutual collab- This is the third such agree- is expected to reach 10 million future in Vietnam,” said Jill oration. “Specific areas for ment Chart has signed in 2019 tonnes per annum by 2030 with Evanko, Chief Executive of Chart. discussion include joint procure- with Asian energy industry part- several terminals planned and with The latest agreement is similar ment of LNG, joint development ners to promote the use of LNG the US being one of the supplier. to one Chart signed in March 2019 of LNG receiving terminal pro- and with plans to supply the Chart and ECV said that they also with Indian Oil Corp, owner of the jects, cooperation in introducing technology. supported ECV’s collaboration with first import terminal to start up LNG to EVN power plants and Chart signed a memorandum of Korea Gas Corp., the owner of im- on the Indian East Coast. The ac- collaboration on shipping opti- understanding with ECV, whose port terminals in South Korea, the cord was signed in Washington DC mization,” they said. main offices are in Dallas, Texas, development of a privately-funded by executives of both companies. n and Hoh Chi Minh City, for Chart to LNG regasification terminal, stor- n Leverage real-time data and digitization to improve the productivity, safety and compliance of employees, contractors and visitors to reduce your time for workforce management tasks by 30% using Honeywell Digitized Workforce Management - drive workforce excellence through digitization. Learn More: Download Whitepaper | https://hwll.co/DWM Advertorial Digitizing Workforce Management Solutions to enable a safe, secure and productive industrial workforce or industrial plants, the need to optimize applications is costly and tedious to maintain, • Key Performance Indicators (KPIs) safety, productivity and compliance has with limited functionality. /Reporting a direct impact on profitability. But, - Standard configured reports Fthere is one factor that plays a greater Leveraging digitization solutions - Sensitive information protected through role than any other—the human factor. LNG companies are now collaborating with robust security restrictions Growing scale of operations; meeting leading automation suppliers like Honeywell - KPI metrics tracking changing safety, security and regulatory to leverage the power of digitization to better - Reporting distributed across departments requirements; and ensuring worker readiness manage their industrial workforce. Honeywell’s and compliance management while maintaining advanced, integrated Digitized Workforce Value Proposition for LNG companies operational efficiency remains a key challenge. Management (DWM) solution is designed to By employing Honeywell’s innovative solution improve safety, compliance and productivity to digitize workforce management, LNG Introduction of employees, contractors and visitors. operators can address a wide range of Companies in the (LNG) Honeywell’s end-to-end workforce workforce-related needs. They’re able to: industry have unique workforce requirements management offering features seamless • Reduce site-mustering time from hours They must make intelligent operational decisions integration with the Honeywell EIS access to minutes in order to improve the safety of plant and control system, as well as Enterprise Resource • Implement real-time compliance status personnel, to boost their productivity, ensure Planning (ERP) and Human Resource monitoring and enforcement compliance, increase resource utilization, and at Management Systems (HRMS). Users can • Improve compliance through fatigue same time be able to control labor costs. deploy a secure, web-based system enabling monitoring and random substance testing The specific requirements for LNG easy access to multiple stakeholders and • Increase productivity with time-on-site companies include: driving visibility and measurability to a single monitoring • Train and certify plant staff to do their jobs pane of glass (SPG). • Reduce overbilling of contract work hours the right and safe way Honeywell’s comprehensive approach • Ensure efficient visitor management • Equip workers with inspected and encompasses: • Enact smart on-boarding for employees and compliant Personal Protective Equipment • Contractor Management contractors (PPE) - Contractor on-boarding and off-boarding Honeywell’s integrated solution enables high- • Ensure personnel have appropriate access - Group mobilizations and inductions for risk LNG operations to improve compliance authorization shutdowns/turnarounds visibility anywhere, anytime—even in field. • Capture accurate clock in/out data - Rationalize contract workforce Site operators can reduce the risk of penalties • Make sure contractors are duly managed • Access Management and reputational damage through increased and accountable - Visitor management compliance and a lower probability of safety • Determine if employees are fit for work - Approval workflow process for access to incidents. They can also achieve an 80 percent • Implement effective fatigue management site/area reduction in mustering time. • Maintain reliable mustering control - Lost card/temporary card issue process LNG firms with a large workforce can - Certification confirmation prior to site reduce the time and effort for Health, Safety Workforce operational challenge access and Environment (HSE) administration by up LNG sites face a host of workforce-related • Time and Attendance to 40 percent compared to offline systems. This challenges, and frequently rely on manual - Integrate HRMS, payroll and contractor includes a 30 percent reduction in inspection efforts and processes, which can lead to an systems with access control for time time for PPE and other safety devices. increase in safety incidents and non-compliance on-site reporting For companies with a distributed workforce, —resulting in penalties, reduced work hours - Reconcile contractor work hours for Honeywell’s digitized solutions can save time and financial losses. shutdowns and service orders in compliance management, and minimize lost Typical issues range from worker data • Compliance Management work hours and penalties due to non-compliant contained in multiple, non-integrated systems - Training, certifications, licenses, and workers. or isolated in disparate silos, to duplication purchase orders automatically checked for of manual data entry using paper-based tools, each worker Conclusion difficulty in performing validation checks, and - Fitness for work checks (drug and alcohol) Leverage the power of digitization with DWM. lost time in approval processes. • Fatigue Management An advanced, integrated end-to-end workforce LNG businesses often lack real-time - Time on site management management solution to manage Safety, enforcement of company policies and - Exposure management Security, Compliance & productivity of compliance status, and don’t receive immediate - Minimum rest rules workforce. Honeywell DWM automates notification of non- compliance. They also - Fitness for work checks business processes and operational efficiency suffer from a loss of on-site productivity by • Mustering with real time data visibility and alerts reducing employees, not to mention excess work hours - Real-time count of people mustered at the administrative load of the HSE, security & billing by contractors. each location operations team. With intelligent software and Access to some LNG sites is inadequately - Quick reconciliation of people on site and configurable business rules, you can gain new controlled, while plant managers can only mustered insights on personnel & asset movements do basic mustering with limited functionality. - Gas monitoring integration for GPS throughout the facility. Their efforts rely on non- integrated point location and man down events solutions. Customized software for these - Last known location of people not accounted Visit us at https://hwll.co/DWM 8 l NEWS LNG Unlimited 29 October 2019 Maritime LNG storage design firm GTT raises revenues on continued advance of newbuilds LNG Journal editor each with a capacity of 114,500 Gaztransport and Technigaz (GTT), cubic metres and an ethane tank of the French technology firm for de- 980 cubic metres,” said GTT. signs of systems for the maritime “The third GBS terminal will be transportation and storage of LNG, equipped with two LNG tanks of reported a jump in nine-month 114,500m cubic metres each,” it revenues as its order book rose to added. 120 units, including 100 newbuild The GBS terminals, which will LNG carriers. be anchored to the seabed, will GTT said nine-month revenues consist of concrete caissons with increased 8.7 percent to 199.7M membrane containment tanks euros ($222M) compared with using GTT’s GST technology. 183.7M euros in the same nine The units will be built in a dry months of 2018. dock at Novatek-Murmansk LLC in Russia. They will then be towed Numbers GTT earnings presentation pointed to growth in industry and installed in their final location. GTT said that at the end of As regards LNG as fuel, GTT has September its order, excluding strates GTT's ability to participate technologies, the Mark III Flex- also increased its orders for LNG as fuel, stood at 120 units, in the entire liquefied gas value plus, the Mark III Flex and the No. bunkering vessels. including 100 conventional LNG chain from large gas projects to 96 GW storage tanks. Deliveries During the first half of 2019, carriers, six ethane carriers, six importation and bunkering termi- are scheduled for between the GTT received three orders for the floating storage and regasification nals,” added the CEO. end of 2020 and the end of 2022. design of tanks for LNG-powered units (FSRUs), two floating LNG “The inflow of orders over the Among the business highlights, merchant vessels and bunkering production vessels, three gravity- last two years is beginning to bear GTT noted its order for storage ships. based structures (GBSs) and three fruit and revenue has increased tanks for the Arctic II LNG project These included one from Semb- onshore storage tanks. substantially from one quarter to proposed for the Gydan Peninsula corp Marine shipyard for the de- With respect to LNG as fuel, GTT the next,” explained Berterottière. in northern Siberia by Russian nat- sign of tanks for an LNG bunker said its order book had grown from The CEO said that given the ural gas company Novatek and its vessel of 12,000m cubic metres seven units in the first half to 18 strong order book and ship con- French, Chinese and Japanese capacity on behalf of the shipowner units at the end of September. struction schedules, he confirmed partners. Indah Singa Maritime, a subsidiary “With 40 orders for LNG carri- revenue and gross earnings outlooks The contract concerns the de- of Mitsui OSK Lines of Japan. ers during the first nine months, for the full 2019 financial year. sign, construction studies and GTT also received an order of which 14 were in the third These forecasts are between technical assistance for the mem- from the Chinese shipyard quarter, business activity has been 260M euros and 280M euros for brane containment systems of the Hudong-Zhonghua for the design particularly strong,” said Philippe revenues and 160M euros to 170M LNG and ethane tanks which will of an LNG tank of 6,500 cubic me- Berterottière, Chairman and Chief euros for gross earnings. be installed inside the three near- tres capacity as part of the con- Executive. GTT said its core business ac- shore GBSs on which the project version of a very large capacity “In addition, there were signif- tivity was at a particularly high will be built. container ship for the German icant orders for GBSs and ethane level. All of the LNG carriers will “The first two GBS terminals will shipowner Hapag Lloyd. carriers equipment. This demon- be equipped with GTT's recent be equipped with two LNG tanks, n

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Japanese Dominican Republic LNG contract shipments oversight is awarded to Tractebel increase as LNG Journal editor costs fall AES Corp., the US power company Japanese liquefied natural gas and Caribbean LNG import termi- imports rebounded last month nal owner, has named Belgian from an almost 20 percent drop engineering firm Tractebel as the previous month to rise by owner’s engineer for the expan- 2.6 percent as Australian and sion of the existing LNG terminal spot volumes accounted for al- near Santo Domingo in the Domini- most half of the nation’s sup- can Republic. plies and cargo costs declined The Santo Domingo terminal 11.70 percent year-on-year. has allowed the Dominican Repub- LNG imports to Japan lic to diversify its energy mix and Caribbean nation’s AES Andres facility at Punta Caucedo amounted to 6.43 million tonnes reduce dependency on oil imports engineering and design aimed at minal is less than 2 million tonnes in September compared with as well as offering a cleaner selecting the most suitable one. per annum, while the Costa Norte 6.27MT in the same month a year source of power generation. Based on these studies, each engi- facility in Panama has around 1.5 ago, according to preliminary neering, procurement and con- MTPA of capacity. figures from the Ministry of Fi- Engie unit struction bidder will propose its “This new contract, awarded on nance. This volume of deliveries Tractebel, a subsidiary of French EPC price,” explained Tractebel. the basis of successful collabora- amounts to around 90 cargoes. utility and energy company Engie, Tractebel said its role was to tion Tractebel and AES had on their According to LNG Journal also helped coordinate the devel- support the AES Andres subsidiary previous LNG project in Panama, estimates, Japan is on track to opment for AES of the Costa Norte during the development phase and demonstrates once more the confi- import around 78.03MT for all LNG terminal near the entrance until the EPC contractor is selected. dence AES has in Tractebel, and its of 2019, if the volumes received to the Panama Canal that started The Panama and Dominican Re- trust in Tractebel expertise,” said in the remaining three months operations in Panama in 2017. public terminals are jointly creat- Zech Christian, Tractebel senior are in line with last year. That Tractebel said the Dominican ing an LNG hub in the region for project manager. would be 4.82MT less than the Republic project consisted of con- small-scale distribution. “The success of this phase is 82.85MT imported in 2018 and structing an additional LNG stor- The AES Andres facility at Punta particularly important for the 83.63MT of cargoes deliv- age tank, more vaporization Caucedo in the Dominican Republic Tractebel, as we aim to be ered in 2017. capacity and building two truck- has been in operation since 2003, awarded the next phase, owner’s The cost of the September loading bays. making it the region’s longest- engineering during EPC execu- cargoes dropped to 341.03 “AES’s approach is to drive standing LNG importing nation. tion,” he added. billion yen ($3.14Bln) from multiple competitive front-end Capacity at the AES Andres ter- n September 2018 when the cost of shipments was 386.42Bln yen ($3.56Bln). LNG operator Enagas sees jump Cargo deliveries had fallen by 19.4 percent in August to 6.10MT versus 7.57MT in August 2018. in Spain’s gas use to 10-year high Cargoes of thermal coal were Enagas, the Spanish natural gas 294 terawatt hours of consumption. deliveries amounting to around steady at 9.24MT, down 0.6 per- network owner and operator of “This is the highest cumulative 30 cargoes. cent on the same month a year LNG terminals, posted 2.3 per- figure recorded since 2009 and it The September intake was up 6 ago while six nuclear power cent higher nine-month net prof- is estimated that this trend will percent with additional cargoes plants were on line in Septem- its of 333.1 million euros ($371M) continue until the end of the year, booked for Barcelona, Cartagena ber 2019 compared with over 50 as demand for natural gas in Spain with an expected increase in de- and other Spanish terminals in on line before the 2011 reached its highest level in 10 mand of around 14 percent at the October numbering around 23 Fukushima disaster. years. end of 2019,” the company added. deliveries so far. The Ministry’s data for “Regasification terminals and The owner of four LNG regasifi- Enagas has four domestic September showed year-on-year underground storage are at levels cation plants in Spain and with import terminals around Spain fall in Middle East cargoes for a of use close to their technical stakes in two others in South at Barcelona in the northeast, sixth successive month. maximum,” said Enagas in its America also operates 11,000 Cartagena in the southeast, Huelva The September 2019 ship- earnings report. kilometres of high-pressure gas in the southwest and Gijon in the ments from countries like Qatar, Enagas said that total demand pipelines in Spain and 19 compres- northwest. the United Arab Emirates and for natural gas in Spain increased sor stations. It also owns a 50 percent stake Oman totaled 1.12MT, down 12.5 during the first nine months by Spanish LNG demand has been in the facility serving the north- percent from September 2018. 16.9 percent compared with the increasing as the winter season west city of Bilbao. n same period of 2018 and reached approaches with September n THE MEETING PLACE FOR THE WORLD’S LNG LEADERS

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For more information on participating, please contact Tyler Forbes or Elliott McGinn CCWWCLNNGG.CCOMM/WWORLLDDLNNG on +44 20 7979 0000 or email [email protected] ##CCWWCCWLNNGG 29 October 2019 LNG Unlimited NEWS l 11 Bangladesh signs up Saudi Arabian investors for onshore terminal and gas-fired power plants LNG Journal editor stated the CEO. Also present at the signing of the accord were Bangladesh is advancing with plans Salman F Rahman, the Bangladesh for a $3 billion liquefied natural Prime Minister’s Adviser for Private gas onshore import terminal and Industry and Investment, and related power plant developments Nasrul Hamid Bipu, State Minister backed by a leading Saudi Arabian for Power, Energy and Mineral power group. Resources. Acwa Power, the Riyadh, Saudi Another witness to the signing Arabia-based participant in the was Abdulsalam Al Hazmi, Vice water desalination and power gen- President of Performance and eration industries, has signed an Business Development at the Saudi accord with Bangladesh to help Aramco LNG Trading Unit, which develop LNG-based power plants Saudi power group Acwa and Bangladeshis sign accord could play a supply role. and the terminal. Bangladesh currently has two Maheshkhali in the Cox's Bazar dis- said Paddy Padmanathan, Chief LNG import facilities, both floating Generation trict of Chittagong, or at an alter- Executive Acwa Power. storage and regasification units. As part of the agreement, Acwa nate location depending on the “We have a long legacy of The first FSRU can handle will lead the development of feasibility study. working collaboratively with lead- around 3.75 million tonnes per 3,600 megawatts of gas-fired Acwa Chairman Mohammed ership in growing economies to annum of LNG and was commis- power plants with a total invest- Abunayyan and Khaled Mahmood, sustainably supply their power and sioned at Moheshkhali Island in Au- ment of around $2.5 billion. Chairman of the Bangladesh Power water needs at low cost to accel- gust 2018 as the first Bangladesh The Saudis said that the pro- Development Board, signed the erate their socio-economic and import facility. ject would consist of the power accord for the terminal and the financial development,” added The Moheshkhali Island venture plants as well as an onshore re- combined-cycle power plants Padmanathan. was co-developed by PetroBangla, gasification terminal with an ex- using regasified LNG. “In line with government poli- the International Finance Corp., pected additional investment of “As we continue to expand our cies we will be contributing to the part of World Bank Group, and around $500 million. global operations, we are proud to energy security of the country and Excelerate Energy of the US, Acwa added that the LNG facil- embark on this ambitious project ensuring the foundations of its provider of the FSRU. ity could potentially be located in with the Bangladesh government,” success for generations to come,” n Oil Search sees ramp-up of Papua New Guinea plant after repairs as expansion stays on track

Oil Search, the Papua New Guinea uids loading facility was detected,” October and normal loading oper- the LNG expansion process with energy company, said the PNG liq- explained the Port Moresby-based ations have now resumed, with only the P’nyang Gas Agreement, uefied natural gas plant again company whose shares are traded on production ramping up. to which Oil Search is party, now posted high quarterly production, the Australian Securities Exchange. “As a precaution, maintenance left to be finalized. though suffered output disruption “This prevented normal liquids work on the other mooring chains “Key legislative changes because of damage to the loading loading procedures and conse- at the facility has commenced,” required under the agreement facility amid optimism for a final quently reduced ullage within the added Oil Search. were passed by Parliament in mid- agreement before the end of 2019 liquids storage system,” it added. The Oil Search operations up- October,” said Oil Search. on the LNG expansion project. “Due to the offshore loading date also reported total revenue “Discussions regarding the “Annualized gross PNG LNG pro- issue, crude production from the for the third quarter was US$361.1 P’nyang Gas Agreement recom- duction for the quarter averaged 8.3 Kutubu, Moran and Agogo fields million, 5 percent lower than the menced late in the third quarter, million tonnes per annum, 20 per- was curtailed or shut-in in August prior quarter, reflecting lower with the Joint Venture and the cent above nameplate capacity, and and September, with priority ac- sales, weaker realized oil and con- PNG Government committed to its the average production rate for the cess to available liquids storage densate prices and the timing of timely completion to ensure the nine months to 30 September 2019 given to PNG LNG condensate,” LNG cargoes, with three cargoes on proposed integrated three-train was 8.5 MTPA,” said Oil Search. stated Oil Search. the water at the end of the period. LNG development, underpinned by “However, in August and Septem- The company said that after The company noted that in gas from the LNG joint ventures, ber, it was necessary to reduce plant mobilization of materials and early September, the PNG Cabinet can proceed into the front-end en- production rates for a short time equipment to the site, repairs to completed its review of the Papua gineering and design (FEED) phase when damage to one of the six the damaged mooring chain were LNG Gas Agreement, validating as soon as possible,” it added. mooring chains at the offshore liq- completed successfully in mid- the agreement and taking forward n