LNG Unlimited LNG JOURNAL PUBLICATION 31 October 2017

Demand from China and to UNLIMITED bolster winter season shipments AGENDA Asia’s biggest growth economies EARNINGS gradually increase TechnipFMC posts imports of LNG income fall amid Our Asia-Pacific editor work advances for Yamal and Prelude China and India both imported 2 more in September as the Asian market PROJECTS braced for a rise in winter season Elba Island plant prices and long-term prospects for in Georgia sees demand in the two largest more work on economies remained bright. storage area Imports of LNG by India rose 4.8 Petronet’s Dahej import terminal north of Mumbai 3 percent as more shipments came from Nigeria and Qatar and the ber amounted to 9.20MT, down tional Offshore Oil Corp. Chinese FUEL MARKET costs also increased amid efforts to 1.6 percent on the 2016 half-year imports will rise further in early Reganosa outlines boost domestic gas production. total of 9.35MT. 2018 as Russia’s Yamal project marketing plan The volume of Indian LNG im- Production of Indian natural comes on stream and shareholder for fuel hub in ports amounted to 1.78 million gas for the month was 2.72 Bcm, a China National Corp Iberian Peninsula tonnes versus 1.70MT in Septem- rise of 4.7 percent versus the 2.60 takes its equity share. 5 ber 2016. Bcm logged in September 2016. The Yamal project, led by Rus- Total domestic natural gas out- sian natural gas company Novatek STRATEGY Volumes put for the first six months of the under its Chairman Leonid Mikhel- GE China imported 3.45MT in Septem- financial year was 16.41 Bcm, 4.4 son, signed a Sale and Purchase signals positive ber, an increase of more than 36 percent up on the 15.72 Bcm half- Agreement to supply CNPC with long-term LNG percent from the 2.53MT brought year total. 3 MTPA of LNG over a period of value proposition in during the same month in 2016 Among China’s network of 16 20 years. 6 as more shipments arrived from import terminals, the Qingdao fa- India is paying more for its Australia and Qatar. cility in the northeast province of LNG. Figures show that LNG ship- IMPORTS Additional cargoes are ex- Shandong receives regular cargoes ments during September cost Japanese firms pected by China from the US as from the eastern Australian state around $600 million and from April order FSRU for more capacity comes on stream on of Queensland. to September cost a total of $3.2 Indonesia plant the Gulf coast and from Russia, The owner of the Qingdao ter- billion versus $2.8Bln during the in West Java where the Yamal plant in Siberia minal is , a stakeholder in same period last year. 7 will be a supplier from 2018. the Australia Pacific LNG export During September, cargoes ar- China is also currently the plant in Queensland, operated by rived in India mostly from Qatar LIQUEFACTION fourth-largest recipient of cargoes ConocoPhillips. and Nigeria, though also from Al- from the Sabine Pass plant in Among the shipments to China, geria and Australia and were deliv- Louisiana, having received 13 the 174,100 cubic metres capacity ered to its main regasification deliveries so far. vessel “Cesi Gladstone” delivered terminals, Dahej, Dabhol and The Chinese imports from Jan- on September 22 to the Qingdao Hazira, all on the West Coast near uary through September totaled facility. Mumbai. 25.5MT, a rise of 43 percent on the The “Gaslog Sydney” delivered India's imports of LNG may nine months compared with 2016 a cargo on September 18 from the reach about 30MT in 2020 from Woodfibre LNG when the imports stood at 17.9MT. Shell-owned Queensland Curtis 19MT in 2016 and 14.60MT the of Asian group Cumulative imports for India in plant in eastern Australia to the previous year, according to RGE delays start of the first six months of fiscal 2017- Chinese Ningbo terminal in Zhei- forecasts. 2018 from April through Septem- jang province, owned by China Na- n 8 2 l NEWS LNG Unlimited 31 October 2017 TechnipFMC posts revenue and income falls amid advances in Yamal and Prelude LNG Our Asia-Pacific editor of the subsea market. “We believe that most major subsea projects TechnipFMC, the French-US energy can move forward at today’s oil and subsea company, prices, with delays in project sanc- posted lower third-quarter rev- tioning more a function of near- enues and income as its work was term price uncertainty than project almost completed on two of the returns,” he explained. world’s most difficult LNG pro- “During the remaining months of jects. Prelude FLN offshore Aus- this year and throughout 2018, we tralia and the Yamal LNG plant in see the potential for additional Arctic Russia. major subsea awards, the strength- CEO Doug Pferdehirt proud of record on projects The company posted an almost ening of subsea services, and the 18 percent plunge in third-quarter achieved start-up of the first two “Umbilicals are connected and growth of brownfield opportunities. revenues to $4.14 billion com- gas compressors and the flare. the water intake riser is in- “We also expect our 2018 Sub- pared with $5.03Bln in the same Commissioning of Train 1 is pro- stalled,” said TechnipFMC and the sea inbound to exceed 2017 lev- three months a year ago before gressing well and nearing comple- topsides for Prelude were under- els, driven by the current the merger was completed. tion,” said TechnipFMC. going offshore commissioning. momentum in project bid activity The Yamal venture is being “We continued to deliver and an acceleration of integrated Integration developed by Russian natural gas strong project execution in our project awards,” he stated. As restructuring continued, Tech- company Novatek, French major Onshore/Offshore and Subsea seg- TechnipFMC’s CEO also said the nipFMC said pro forma net income Total and China National ments, as we achieved several key company was pursuing several was down 63 percent to $121M Petroleum Corp. in northwest milestones,” said Doug Pferdehirt, downstream projects with an versus $327M in 2016 and adjusted Siberia where there is an Arctic Chief Executive of TechnipFMC. aggregate inbound value of over gross earnings were 23 percent shoreline. “Our Surface Technologies seg- $5Bln. lower at $536.2M compared with Among the other highlights dur- ment benefited from increased ac- “On these projects, we are $699.3M in the quarter to the ing the quarter, TechnipFMC noted tivity in the North American market, actively working as the FEED ender of September 2016. that ’s Prelude primarily driven by higher demand provider or were the contractor of TechnipFMC reported in its Floating LNG hull it had worked on for our well completion services,” the original facility. This upfront earnings that the last of the 142 was now safely deployed offshore he added in his earnings comments. involvement gives us a better un- modules for the three liquefaction northwest Australia after being “Total inbound orders for the derstanding of the project and Trains at Yamal LNG was delivered delivered from the South Korean quarter were $2.5Bln, with Subsea puts us in a stronger competitive to the site in September, ahead of shipyard of joint venture partner at nearly $1Bln - reinforcing our position,” he added. schedule. “Yamal LNG successfully Samsung Heavy Industries. conviction in the steady recovery n French LNG storage firm GTT given services contract for 10 tanks on Prelude FLNG hull Gaztransport and Technigaz (GTT), ject is underway. Prelude FLNG produce 3.6 million tonnes per The hull will be attached to a the French LNG maritime storage has a liquefied gas storage capac- annum of LNG as the world's sec- mooring system in 250 metres of company, was awarded a services ity of 326,000 cubic metres. Of ond FLNG venture to start opera- water by four groups of chains. contract for the 10 membrane the 10 tanks, six are for LNG and tions after one developed by Each chain will be held to the sea cargo containment tanks on board four others are dedicated to lique- of . floor by piles. the Royal Dutch Shell Prelude fied petroleum gas. Each tank has For the Shell project, the Con- A series of seven production floating LNG hull deployed off- the Mark III containment system certo gas field was discovered wells will send feed-gas and shore northwest Australia. developed by GTT. near the Prelude field and their condensate from the reservoirs “This contract will provide sup- “We are very proud to continue combined resources of around 3 via four flexible risers into the port for the engineering, inspec- to work with Shell on the Prelude trillion cubic feet will be used to facility. tion, maintenance as well as FLNG project, building on the produce the LNG. The Prelude joint venture is testing of the containment sys- portfolio of innovative services we The FLNG facility, built by Sam- owned 67.5 percent by Shell and tem,” said GTT. have developed,” said Philippe sung Heavy Industries, has been 17.5 percent by Japanese energy The Prelude FLNG facility re- Berterottiere, Chairman and Chief designed to withstand the most and LNG developer Inpex Corp. cently arrived at its location 475 Executive of GTT. powerful tropical cyclones. It will A further 10 percent is held by kilometres north east of the town “This contract is somewhat of a remain permanently moored at LNG buyer Korea Gas Corp. and of Broome where the hook-up and landmark for GTT," said the CEO. the Australian location for at least 5 percent by CPC Corp. of Taiwan. commissioning phase of the pro- The Prelude FLNG vessel will 20 years. n 31 October 2017 LNG Unlimited NEWS l 3 US export US Elba Island LNG plant in Georgia data shows advances with work on storage area Europe and Kinder Morgan, the US pipeline Mideast focus company, has received permission US LNG export data showed from US regulators to advance Middle East nations Jordan and with further work on storage for Egypt were favoured as well as its export project at Elba Island South Korea and European near Savannah in the state of countries as destinations for Georgia. shipments from the Sabine Pass Elba Island is an existing LNG export plant in Louisiana, while import terminal being transformed the highest price was paid by into an export plant to produce an Japan for a spot cargo. initial 2.5 million tonnes per The Kingdom of Jordan re- annum of LNG. ceived two deliveries and Egypt received one, along with Euro- Shell cargoes Existing terminal being turned into export plant pean nations Italy, Lithuania, Royal Dutch Shell was the former Portugal and Spain, according partner of Kinder in the Elba is- “This approval is based on re- Texas. The existing terminal on to the latest monthly data for land project and while it sold its view of the information filed on Elba Island is about eight miles August just released by the US stake, it remains the main cus- September 28, 2017,” said the upstream from the mouth of the Department of Energy. tomer for the completed venture. FERC. Savannah River. It was first autho- A total of 13 cargoes were The Elba Island project involves Kinder recently signed up in- rized by the FERC in 1972 as an shipped during August versus 16 the installation of 10 small-scale vestment fund firm EIG Global En- import facility. in July. liquefaction units and modifications ergy (EIG) as its partner in the The transformation project Of the remaining total, three to the terminal infrastructure. Elba Island venture. to turn the terminal into a lique- were delivered to South Korea, Under the current schedule, EIG purchased a 49 percent faction plant began in November two to Mexico and one to Japan. the Georgia liquefaction plant joint venture participation in Elba 2016 and is supported by a 20- Shipping data also showed could be producing LNG by the Liquefaction Co. for an upfront year LNG supply contract with that the cargoes were delivered end of 2018 or early 2019. cash payment of around $385 mil- Shell. by contract holders such as The Federal Energy Regulatory lion and agreed to fund its share The first liquefaction units at Royal Dutch Shell, Gas Natural Commission has just given permis- of future capital expenditures. Elba Island are currently expected Fenosa and the Cheniere mar- sion to Kinder’s subsidiary Elba Engineering work at Elba Island to be placed in service in mid- keting unit. Liquefaction Co. to construct the is being conducted by the US sub- 2018, with final units coming on Prices were lower at $3.41 LNG tanks D-4 and D-5 impound- sidiary of Japan’s IHI Engineering stream by early 2019. per million British thermal units ment areas. & Construction, based in , n for long-term contract holders loading at the terminal in Au- gust versus $3.53 per MMBtu US plans largest federal lease sale the previous month. There were 10 long-term contract shipments and three offshore LNG export project states short-term or spot deliveries at The US Department of the Interior economy and exports such as LNG explained. In addition to the high lifted prices of $3.97, $4.21 and has announced the largest federal to help the trade balance. bids and rental payments, the De- $5.90 per MMBtu to Lithuania, offshore oil and gas lease sale in “In today’s low-price energy partment will receive royalty pay- Portugal and Japan respectively. history with a range of incentives environment, providing the off- ments on any future production The prices were still lower for companies and involving 76.9 shore industry access to the maxi- from the leases. than the $6.61 per MMBtu prices million acres in the mum amount of opportunities Outer Continental Shelf lease paid for short-term liftings from offshore the main LNG export pro- possible is part of our strategy to revenues are directed to the US the Cheniere Energy-owned fa- ject development areas of Texas spur local and regional economic Treasury, Gulf Coast states, the cility the previous month. and Louisiana, as well as Missis- dynamism and job creation and a Land and Water Conservation Fund Since Sabine Pass began its sippi, Alabama and Florida. pillar of President Trump’s plan to and Historic Preservation Fund. shipments in February 2016, The sale, scheduled for March make the energy “In order to strengthen Amer- the largest recipient of US LNG 2018, includes all available un- dominant,” said Interior Secretary ica’s energy dominance, we must has been Mexico with 41 car- leased areas on the Gulf's Outer Ryan Zinke. anticipate and plan for our needs goes received followed by Continental Shelf, a reflection of “And the economic terms pro- for decades to come,” said Sena- South Korea with 18, Chile with the strategy of President Donald posed for this sale include a range tor Lisa Murkowski, Chairman of 16, China with 13 and Jordan Trump’s Administration to maxi- of incentives to encourage diligent the Senate Committee on Energy with 11, along with Argentina. mize oil and gas drilling on federal development and ensure a fair & Natural Resources. n lands and waters to boost the return to taxpayers,” Zinke n At the Core of LNG

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E-mail: [email protected] www.chart-ec.com 31 October 2017 LNG Unlimited NEWS l 5 NEWS Reganosa launches marketing for NUDGES LNG fuel hub for Iberian Peninsula Our Europe editor -Exxon LNG deal Reganosa, the owner of the Mu- Italian energy company Eni said gardos import terminal at the port it expected to complete the of El Ferrol in northwest Spain, sale of a 25 percent stake in has launched its LNG hub project Area 4 licence in the Rovuma for the Iberian Peninsula with the Basin, offshore to aim of providing marine fuel to a US major ExxonMobil before wide range of clients. the end of 2017. Eni explained The Muardos terminal operated the status of the delayed deal by Reganosa is close to the busiest in its third-quarter earnings shipping lanes in the world at the statement. ExxonMobil agreed edge of the Bay of Biscay, an area Mugardos import terminal near port of El Ferrol in March 2017 to pay around traversed by around 40,000 com- $2.8 billion for part of the Eni mercial ships per annum en route “The prime minister of the Re- “It would be worthwhile for stake in the Area 4 concession to and from Europe, America and gion of Galicia and multiple part- Galicia to play an important role with estimated resources of Africa. ners and institutions support the in the international LNG energy 85 trillion cubic feet of natural company’s plan to provide LNG as area,” he added. gas. Under the deal, Eni will Stakes a marine fuel,” said Reganosa, “We will make it happen. I am continue to lead the Coral The majority shareholders in the which takes its name from the certain we have the means, tools floating LNG project and all Reganosa facility are the Govern- Spanish words “Regasificadora del and resources to turn Galicia into upstream operations in Area 4, ment of Spain’s Galicia region and Noroeste”. a logistical centre, a central point while ExxonMobil will lead the the privately-held Tojeiro invest- Reganosa has just issued a for LNG distribution,” stated construction and operation of ment group. Algerian state energy video explaining the economic and Feijoo. liquefaction and export facili- company and LNG production environmental advantages linked The Finisterre corridor shipping ties onshore. plant owner has a 10 to the development of the LNG route is also close to the Navantia percent stake. hub in the northwest of Spain, an shipyard, a European leader in re- Wartsila profit Spain is the country with the idea that has wide political and pairing gas vessels. declines largest network of LNG terminals commercial support. The Mugardos terminal also Wartsila, the Finnish propulsion in Europe with six in operation. “We must not miss this opportu- runs one of the most successful equipment and power and pro- Mugardos received one of the nity to build up Galicia as an ideal LNG regional trucking operations ject company, posted a 1 per- first shipments to Europe of US LNG location for supplying ships with for the retail and wholesale fuel cent fall in third-quarter pretax in July 2016 from the Sabine Pass liquefied natural gas,” said Gali- markets. profits to 114 million euros liquefaction plant in Louisiana. cian premier Alberto Nunez Feijoo. n ($134M) as net sales rose 9 per- cent to 1.17 billion euros from 1.07Bln euros in the same three French LNG terminal owner expands months a year ago. “Wartsila’s performance in the third quar- offering for users to swap and trade ter was satisfactory,” said Jaakko Eskola, President and Elengy, the French liquefied natu- an LNG cargo at Montoir-de-Bre- two facilities to manage its gas Chief Executive. ral gas terminal operator, said it tagne or Fos Tonkin to retrieve the on the grid without necessarily can point users of its regasifica- same volume on other gas hubs. having a gas license or a contract Inpex names tion facilities at Montoir-de-Bre- Elengy also controls the Fos with the French transmission new carrier tagne on the Atlantic Coast and at Cavaou terminal, also near Mar- operator GRTgaz. Inpex Corp., the Japanese LNG Fos Tonkin near the Mediterranean seilles, though it is not part of the The company is additionally project developer with port of Marseilles to more down- offer. Fos Cavaou is owned by Fos- able to offer simultaneous booking ’s Total of the Ichthys stream marketing opportunities. max LNG, a subsidiary of Elengy. services on the North-South link in export project near the port of “Elengy is now acting as a go- “Thanks to this type of service, France, allowing a shipper who Darwin in Australia’s Northern between for the shippers,” said our terminals are now virtually, unloaded a cargo at Fos Tonkin to Territory, has named a second the company. and in a simple fashion, con- transfer the gas directly north on carrier that will transport car- “Any market player can now nected to the largest European the French PEG Nord trading hub. goes to Japan. The 155,300 advertise downstream services gas hubs such as NCG (Germany) Elengy said it was offering cubic metres capacity vessel complementary to our regasifica- or TTF (Netherlands),” the French more flexibility to shippers by was named “Oceanic Breeze” tion offer,” it explained. company said. publishing a list of offers provided at the Mitsubishi Heavy Indus- Elengy, an affiliate of French Engie said its balancing service by operators or market players tries shipyard in Nagasaki. utility Engie, said locational swaps also allowed a shipper who un- downstream of its LNG terminals. n will allow a shipper who unloaded loaded an LNG cargo at one of its n 6 l NEWS LNG Unlimited 31 October 2017 Baker Hughes GE chief Simonelli sees positive long-term value proposition for LNG market Our North America editor ment, we continue to see growth in New York driven by our well construction business in North America. Baker Hughes GE, the merged US “While the North America rig subsea and LNG and energy ser- count is up more than 40 percent vices company formed by Baker year-to-date, we saw a decelera- Hughes and GE Oil and Gas, posted tion in the quarter with the US a third quarter net loss as revenues land rig count up 6 percent versus slipped while the group comes to the end of the second quarter. In- terms with its new structure. ternational activity remains muted The net loss amounted to $104 with rig count flat year-to-date,” million during the three months to he said. the end of September on third- BHGE in its LNG business also quarter revenues of $5.37 billion Industry-leading portfolio in the LNG plant segment offers boil-off gas and booster versus $5.41Bln in the comparable compressors capable of operating second quarter to the end of June with gas prices pressured in most larly in North America and the at temperatures as low as -180 de- 2017. markets,” said Lorenzo Simonelli, Middle East,” he added. grees Celsius and able to re-liq- BHGE Chairman and Chief Simonelli said that as the GE uefy excessive BOG evaporating Orders Executive. Oil & Gas and Baker Hughes out of the LNG storage tanks. Baker Hughes GE said orders “The long-term value proposi- merger only closed on July 3 he In September, the BHGE signed amounted to $5.7Bln for the quar- tion for LNG remains positive and was pleased with the progress dur- its first highest-profile oil field ter, up 2 percent compared with we have an industry-leading port- ing the first operating quarter. services contract for phase two the second quarter and were up folio in the segment with strong “Despite the continuing chal- development of the Zohr gas field 18 percent year-on-year on a com- manufacturing and service capa- lenging environment, we delivered in the East Mediterranean that will bined business basis. bilities,” stated Simonellii. solid orders growth and secured boost Egyptian natural gas sup- The company noted the success “Downstream markets continue important wins from customers, plies and reduce LNG needs. of the Turbomachinery & Process to evolve. In refining, large, com- advanced existing projects and en- BHGE signed the subsea con- Solutions division from the former plex refineries should gain an ad- hanced our technology offerings,” tract with Petrobel for the “super- GE Oil & Gas side of the new busi- vantage in a more competitive, said Simonelli. giant” Zohr field, part of the ness as it secured its third con- oversupplied landscape. “We also achieved key integra- Shorouk licence concession mainly tract for the Coral South LNG “However, costs and refining tion milestones and made signifi- owned by Eni of Italy, the opera- development in Mozambique from margins continue to delay some cant progress working as a tor, BP of the UK and of Italian company Eni. projects,” said the CEO of BHGE. combined company. I am now Russia. “In our Turbomachinery & “In , we see more convinced than ever that we Petrobel is a subsidiary in Egypt Process Solutions segment, the healthy end-market demand. Cost combined the right companies at of Eni, the licence holder and LNG market continues to be advantaged supply bases continue the right time,” he added. Egyptian General Petroleum Corp. over-supplied in the near term to drive projects forward, particu- “In our Oilfield Services seg- n LNG Journal & Gas to Power Journal Subscription Package The journals’ comprehensive coverage is dedicated to the entire gas-value-chain. In addition to our LNG Journal & Gas to Power Journal Daily newsletters, each platform provides exclusive, accurate and up-to-date news and analysis divided in the following sector-focused publications:  LNG Journal - Monthly issues  Gas to Power Journal - Daily e-newsletter + PDF  Gas Power Tech Quarterly - Quarterly PDF  LNG Unlimited - Weekly magazine + PDF  LNG Shipping News - Fortnightly e-newspaper + PDF  LNG Fuelling - Fortnightly e-newspaper + PDF  LNG North America – Monthly e-newspaper + PDF

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For further information on subscribing please contact us at [email protected] or + 44 20 7017 3416 31 October 2017 LNG Unlimited NEWS l 7 and Japanese companies order FSRU for GNF place low Indonesian project in West Java bids in tender Our Europe editor for Pakistan Gas Natural Fenosa, the Span- Japanese trading house Marubeni ish utility and LNG market par- Corp is moving ahead with its float- ticipant, submitted the lowest ing LNG import project linked to an bid of just over $9 per million adjacent power plant venture in British thermal units after six the Indonesian province of West companies took part in a ten- Java by awarding the $220 million der for the supply of cargoes to contract for building the floating Pakistan LNG for the delayed storage and regasification unit. Indonesia to expand imports for plant south of Jakarta second floating storage and re- Marubeni has chosen Samsung gasification unit (FSRU) import Heavy Industries of South Korea for the FSRU from Marubeni, Sojitz opers building, owning and operat- project for Port Qasim near for the FSRU contract and when and and said the vessel ing the power plant with 1,760 Karachi. the vessel is complete it will be would be equipped with its newly megawatts of capacity and the State-run Pakistan LNG deployed to regasify LNG volumes developed in-house regasification FSRU. launched the tender in Septem- at Cilamaya near the Jawa gas- system called S-Regas. “The companies will proceed ber 2017 with four cargo deliv- fired power plant, about 65 kilo- “S-Regas reduces chance of with the development of the Jawa ery windows for January 2018. metres south of the Indonesian corrosion from the traditional Satu Power project by procuring The second-lowest prices capital, Jakarta. method of heating LNG directly financing, constructing the power were submitted by global com- with seawater and is another en- plant, FSRU and associated facili- modities company Gunvor. The Power venture ergy efficient solution,” said Sam- ties, and sell electricity to PLN for GNF cargoes were for two de- Marubeni said the Jawa Power pro- sung in its order details. a 25-year term from its target livery windows and Gunvor ten- ject, valued at around $1.8 billion, The Indonesian project com- completion date of 2021.” stated dered for four dates, according also involves two other sharehold- pany has entered into a long-term Marubeni. to the tender documents. ers, the Indonesian energy com- agreement with the Indonesian Marubeni is moving closer to The cargoes will be delivered pany Pertamina and the Japanese state-owned electricity utility, Pe- realising its first FSRU LNG after a to Singapore-based BW Group’s conglomerate Sojitz Corp. rusahaan Listrik Negara (PLN), for previous venture it was involved in FSRU “BW Integrity” that will The order placed with the Sam- the purchase of electricity from with French utility Engie in the serve as Pakistan’s second im- sung shipyard is for an FSRU with the power plant, underpinning the South American country of port terminal serving a consor- capacity of 170,000 cubic metres. finances for the whole venture. Uruguay did not proceed. tium affiliated to the Pakistan Samsung announced the order The project will see the devel- n GasPort Ltd (PGPL) group. BW signed a 15-year agree- ment with Pakistan GasPort in City-gas advances in eastern Indian August 2016 for the charter of the 170,000 cubic metres ca- state of Odisha as prelude to LNG pacity FSRU. India has brought natural gas sup- wada in Andhra Pradesh and fed the PM is implementing to boost The “BW Integrity” was ply to Bhubaneswar, the capital into the pipeline connections to city-gas pipeline connections in named at a ceremony at the of India’s eastern state of Odisha, the houses. eastern India to be supplied from Samsung Heavy Industries ship- as part of an expansion of the Natural gas will be later sup- LNG imports and offshore gas. yard in South Korea in January pipeline network and infrastruc- plied directly by pipelines from The pipeline expansion venture 2017. ture, including LNG import and outside the city through the is led by Gas Authority of India However, the project has regasification facilities on the Jagdishpur, Haldia, Bokaro and (GAIL) and involves laying 2,540 still not been completed be- Indian East Coast to boost indus- Dhamra Natural Gas Pipeline, kilometres of pipelines in five east- cause of onshore infrastructure trial development. presently under construction and ern states to provide gas for 40 dis- delays, including connections The government held a cere- likely to be completed by 2019. tricts and 2,600 towns and villages. to the pipeline network of util- mony for the start of the gas con- “The commencement of supply City-gas deliveries are then ity Sui Southern Gas Co. nections to homes attended by the of natural gas is an important step planned for six other cities on the Six companies tabled bids in Minister for Petroleum and Natural towards the fulfilment of Prime new Urja Ganga pipeline route in the tender including Spain’s Gas Dharmendra Pradhan. Minister Narendra Modi’s dream of addition to Bhubaneshwar. They GNF and commodity traders The natural gas was initially developing a gas-based economy are Varanasi, Patna, Jamshedpur, Gunvor, , , BB supplied to more than 250 homes and linking Eastern India to the Kolkata, Ranchi and Cuttack. Energy and DufEnergy. DufEn- in the Chandrasekharpur area of country’s Natural Gas Grid,” said The half-dozen East Coast LNG ergy’s bid was “technically dis- the city. Pradhan. import projects include one in qualified”, though no specific For now the gas is brought to The link-up to the natural gas Odisha state at Dhamra Port on reason was given. Bhubaneswar in special containers network of cities like Bhubaneswar the Bay of Bengal. n transported by road from Vijay- is part of the Urja Ganga Project n 8 l NEWS LNG Unlimited 31 October 2017 Canadian Woodfibre LNG project of Asian group RGE delays start of construction until 2018 Our North America editor down to letting them choose some in New York of the technology for the plant. The Squamish First Nation The Canadian Woodfibre LNG ex- Chiefs and the tribal council voted port project backed by Indonesian in October 2016 to select air cool- billionaire Sukanto Tanoto and his ing as the technique the Woodfibre RGE Group and the only liquefac- plant will use to cool its natural tion plant venture with full permit gas in the LNG production process. approvals in the Pacific province Tanoto’s RGE and affiliated Pa- of British Columbia, said it had cific Oil and Gas company has of- postponed the start of construc- fices in Singapore and Jakarta as tion until 2018 when final sched- well as three in China, located in ules would be finalized. Hong Kong, Nanjing and Beijing. The Woodfibre venture has ben- Export plant will be built on site of former pulp mill His company's embracing of efited from being on a brownfield still have some issues to resolve engineering and design work has First Nation decision-making has site of a former pulp mill to re- before we can say a timeline,” already been completed. KBR tempered the reactions of groups ceive all its provincial and federal said the company. Inc of the US is expected to be in Canada opposed to the hydro- permits as well as a 40-year export Tanoto is developing the export awarded the engineering, procure- carbon industry. licence to ship cargoes to Asia. venture through his privately-held ment and construction contract Malaysia’s Petronas and other firm, Woodfibre LNG. once a deal and final costs are companies such as Royal Dutch Brownfield Woodfibre was the first project approved. Shell and China National Offshore However, the project in the town of its kind in the province of Before the liquefaction project Oil Corp. have cancelled projects of Squamish, 65 kilometres north- British Columbia to receive its full received its first permits Woodfi- in BC over the last 12 months be- east of Vancouver, has now pushed environmental approval from the bre had signed a contract to sup- cause of tougher federal permit back the start of building from the federal government in Ottawa. ply China’s Guangzhou Gas Group regulations, fostering higher cost end of 2017 to next year. The proposed liquefaction plant with 1 MTPA of LNG over 25 years. in the current environment of “We’re definitely moving for- will produce 2.1 million tonnes per The project is also cooperating lower oil prices. ward, but the reality is that we annum of LNG and early front-end with First Nation tribes, right n BC Premier alludes to future LNG plants as he visits sites of cancelled export projects

The Canadian province of British only gas export project planned project with provincial Minister of to the Shell-led LNG venture. Columbia and Premier John Hor- for the province, apart from the Energy, Mines and Petroleum Re- Shell said when it postponed gan toured the site of a US$450 small-scale Woodfibre LNG plant sources, Michelle Mungall. LNG Canada that the project re- million propane export terminal proposed for Squamish, north of The Premier and the Minister mained a “promising opportunity” on Ridley Island under construc- Vancouver, after more than a also visited the proposed site of at some time in the future. tion for natural gas company Alta- dozen large-scale projects were the LNG Canada project in the The Anglo-Dutch company also Gas and said LNG projects were cancelled because of the Federal town of Kitimat previously formally cancelled the Ridley Is- still possible in the future as he Government’s new tougher per- planned by Shell and Asia LNG land LNG venture - near where the also visited the site of a cancelled mitting process that followed the players Mitsubishi, Korea Gas propane plant is being built - in Royal Dutch Shell LNG venture. oil price slump. Corp. and PetroChina. March 2017 and which it had in- Scheduled for opening in early AltaGas, which had previously “LNG Canada’s commitment to herited from BG after its takeover. 2019, the propane terminal will be planned an LNG export plant on the project demonstrates British The Ridley Island propane ter- the first on Canada’s West Coast the Douglas Channel near Kitimat Columbia remains a cost-competi- minal has resulted in up to 250 to export the fuel from BC and with European and Asian compa- tive prospect in the global LNG ex- construction jobs and will provide Alberta to Asia and other overseas nies, opted to develop an alterna- port industry,” said Horgan. up to 50 permanent full-time jobs markets. tive gas export terminal on Ridley “Industrial site clearing is un- instead of the $150 billion of “This project opens the door Island when its LNG project was derway and is expected to be provincial revenues and tens of to global markets for British abandoned. complete by the end of 2017,” he thousands of jobs promised by an Columbia, while creating good, Ridley Island had also been the added at the site of a proposed LNG export boom. sustainable jobs and economic site of an LNG export project venture, now formally suspended. “This is a very good day for development for the North Coast,” planned by BG Group of the UK, Canada's National Energy Board Prince Rupert Port and all British said Premier Horgan. now part of Royal Dutch Shell. in January 2016 had awarded its Columbians,” said Mungall. The propane venture is the Horgan toured the new propane first 40-year LNG export licence n