LNG Unlimited LNG JOURNAL PUBLICATION 15 October 2019

ExxonMobil-led Mozambique plan UNLIMITED moves forward with $11Bln EPC AGENDA JGC Corp along with TechnipFMC and JOINT VENTURES Fluor have won US shipping lucrative contract firm sells joint LNG Journal editor venture stake back to Nakilat ExxonMobil said it planned to in- 2 vest more than $500 million in the initial construction phase of its OPERATIONS liquefied project in QCLNG chief Mozambique as part of the Area 4 to take over resources development with its running of Shell partners including Italian energy in company Eni and China National 3 Petroleum Corp. Rovuma project event held in Mozambican capital Maputo “The Area 4 partners will ad- ning, the contract price and this was scheduled to be finalized REGULATORY vance midstream and upstream schedule,” said JGC. in 2020. FERC told by area project activities of more “The JFT consortium was estab- The LNG project celebrations stakeholders that than $500M as initial invest- lished to execute the project, were ahead of Mozambique’s Alaska LNG will ments,” said Exxon’s head of leveraging JGC and TechnipFMC’s presidential elections set to take be very beneficial power and gas marketing, Peter extensive experience of LNG pro- place on October 15 and the 5 Clarke at a ceremony in Mozam- jects worldwide, as well as Fluor’s progress of LNG investments is bique’s capital Maputo to cele- expertise accumulated from its expected to boost support for LEADERSHIP brate the southeast African outstanding track record of mega- President Filipe Nyusi. BP chooses LNG nation’s LNG advances. sized projects performed globally,” Exxon’s Rovuma Basin stake, and upstream added the Japanese company. jointly held with Italian firm Eni, stalwart to Consortium ExxonMobil's Clarke said the will produce LNG from three feed- succeed Dudley At the same time, Japanese en- EPC contract covers the construc- gas reservoirs located in the Area 8 ergy engineering firm JGC Corp. tion of two natural gas production 4 block offshore Mozambique’s said it was awarded an engineer- Trains with a total capacity of 15.2 northern coast. SHIPPING ing, procurement and construction million tonnes per annum as well ExxonMobil is the lead com- contract along with EPC consor- as associated onshore facilities. pany for the Mamba gas fields and tium partners, the Franco-US com- Nello Uccelletti, President of LNG project development and pany TechnipFMC and Fluor Corp. the Onshore-Offshore division at costs are estimated at around $30 of the US. TechnipFMC, said he was delighted billion. Production is scheduled for JGC said the EPC contract by the EPC contract. start-up in 2024. award in Mozambique was worth a “We are extremely honored to Area 4's consortium is formed total of around $11.2 billion for all have been awarded by MRV this by Mozambique Rovuma Ventures, MISC signs up the companies involved. new prestigious LNG project along comprising ExxonMobil with 25 ExxonMobil for “LNG production at the com- with our long-time partners, JGC percent, Eni with 25 percent and two 15-year newbuild ships plex is expected to commence in and Fluor. This award confirms the China’s CNPC, also known as 2025,” said JGC. market recognition of TechnipFMC’s PetroChina, with 20 percent. 9 “Mozambique Rovuma Venture expertise and track record in gas The remaining 30 percent of selected the JGC, Fluor and Tech- monetization and, in particular, in shares in that licence are held in DEVELOPMENTS nipFMC based on the consortium’s the LNG industry,” stated Uccelletti. parcels of 10 percent by South Ko- Environmental demonstrated capabilities in Clarke explained that his an- rean utility and energy company report delayed health and safety management, nouncement in Maputo fell short Korea Gas Corp., Galp Energia of again for US competitive financial strength, of a final investment decision by Portugal and Mozambique’s ENH. Jordan Cove technical design, execution plan- ExxonMobil and partners, though n 11 2 l NEWS LNG Unlimited 15 October 2019 International Seaways of US sells joint venture stake in four Qatar Q-Flex carriers to Nakilat LNG Journal editor uefied petroleum gas (LPG) ves- sels,” said the Qatari company. International Seaways, a leading With a cargo carrying capacity US tanker company providing ves- of 217,000 cubic metres each, the sels mostly for the crude oil and four LNG carriers, “Tembek”, “Al petroleum products markets, has Hamla”, “Al Gattara” and “Al ended its LNG presence by selling Gharrafa”. have been operated its stake in four Q-Flex LNG carri- and managed in-house by Nakilat’s ers held in a joint venture with ship management arm since 2014. Qatar Gas Transport Co. Nakilat Chief Executive Abdul- The US company, listed on the lah Al Sulaiti said the 100 percent Firms sold stake in ‘Al Gattara’ and three other ships New York Stock Exchange and ownership acquisition of these whose headquarters are in New including liquified petroleum gas and renewing our fleet, deleverag- four vessels comes as part of Naki- York City, sold its 49.9 percent carriers. ing and returning cash to share- lat’s long-term strategy to capital- ownership interest in its joint ven- “Nakilat continues to be a very holders remain our top priorities,” ize on such strategic investment ture with QGTC, also known as valued INSW partner and remains an added Pribor. opportunities. Nakilat, back to the Qataris for important part of our ongoing com- INSW owns and operates a fleet “These vessels are chartered to $123 million in cash. mitment to our business relation- of more than 40 vessels, including our long-standing partner Qatar- ships in Qatar,” added Zabrocky. 13 very large crude carriers, two gas, the world’s largest exporter Partnership “By monetizing our interest in Suezmax vessels, six Aframax of clean energy,” added Al Sulaiti. “Nakilat and INSW worked in part- the joint venture, we unlocked ships, 12 Panamax vessels and In addition to LNG carriers and nership to conclude this transac- significant value for shareholders seven medium-range tankers. tankers, Nakilat interests include tion, demonstrating the high level and further strengthened our bal- Through other joint ventures, the ship repair and construction of teamwork the companies have ance sheet,” he stated. the US shipowner also has inter- facilities at Erhama Bin Jaber Al shared for over 15 years,” said Lois Jeff Pribor, the INSW Chief Fi- ests in two floating storage and Jalahma Shipyard in Ras Laffan as K. Zabrocky, President and Chief nancial Officer, said the “impor- offloading service vessels. part of joint ventures with Naki- Executive of International Seaways. tant transaction” positions INSW “This brings the total number lat-Keppel Offshore and Marine Nakilat’s fleet is the largest to further its capital allocation of vessels wholly-owned by Nakilat (N-KOM) and Nakilat Damen Ship- in the world, comprising 69 LNG strategy. from 25 to 29 LNG vessels, out of yards Qatar (NDSQ). vessels and several other ships, “Following our success growing its overall fleet of 74 LNG and liq- n mulls Norway or Russian trans-shipment to ease impact of Iran sanctions on Yamal shipping

Novatek, the Russian operator of ates and joint ventures, owns four “We have responsibilities be- The last LNG tanker left Hon- the Yamal Arc7 LNG tankers conducting ship- fore our customers to deliver LNG ningsvag at the start of July 2019 plant at in northern ping services for the Yamal export so we need to protect ourselves,” and when the Siberia, said it was in talks to plant and said its shipping joint added Gyetvay at an energy con- is closed at the start of this winter trans-ship its cargoes from Norway venture in Russia, Yamal LNG, had ference in London. season, a temporary Russian re- or the Russian port of Murmansk been “blocked” by the US Treasury The Norwegian privately-held loading site was already expected because it is unsure of the impact because its partner China LNG logistical and ship management to open near Murmansk before a of US sanctions on the Chinese Shipping (Holding) is 50 percent company, Tschudi Shipping, had permanent station is built there. COSCO tankers it uses or US-listed owned by COSCO Dalian. previously handled the reloading Gyetvay said the talks with the shipping line Teekay LNG. The Yamal venture owns four operations for Russian LNG off Nor- Norwegians and the port of Mur- Under the US sanctions on Iran operational and two newly built way after it signed an agreement mansk were ongoing and said that over its nuclear policies, the US Arc7-class LNG tankers capable of with Novatek in September 2018. the decision on using a trans-ship- Department of the Treasury’s navigating through Arctic ice, During 2018 and early 2019 No- ment hub this winter would be Office of Foreign Assets Control making them key to transporting vatek and its partners used an made soon. (OFAC) has included COSCO Ship- LNG from Novatek’s Yamal plant. area offshore the Norwegian port Having a trans-shipment point in ping Tanker (Dalian) Co. and “We have nothing to do with of Honningsvag as a trans-ship- Norway helped Novatek reduce the COSCO Shipping Tanker (Dalian) in the sanctions, but we don’t know if ment point for several million time ice-class vessels took to make the Iran-related Specially Desig- the sanctions may affect the ships tonnes of LNG transferred from the journey from Yamal LNG to a nated Nationals (SDN) list, as well owned by the (Yamal LNG shipping) ice-class carriers to conventional place where the cargo could be as Teekay LNG Partners. joint venture,” said Novatek Chief vessels and shipped to European transferred to a conventional vessel. Teekay LNG, through its affili- Financial Officer Mark Gyetvay. terminals and beyond. n 15 October 2019 LNG Unlimited NEWS l 3

Shale gas in Shell changes Australian executive Marcellus team with QCLNG chief taking over and Utica still LNG Journal editor substantial has decided to make changes to its executive The American shale basins of team in Australia as it faces in- Marcellus and Utica that under- vestment decisions in the months pin rising US LNG exports and ahead on multibillion-dollar natu- domestic gas use contain huge ral gas projects. volumes of undiscovered tech- Among the moves, Shell Aus- nically recoverable continuous tralia chairman Zoe Yujnovich is resources of natural gas. set to be transferred to the Anglo- The US Geological Survey, a Dutch company’s headquarters in scientific agency of the govern- Netherlands capital, The Hague. CEO Ben van Beurden with Shell Australia’s Yujnovich ment and the only provider of publicly available estimates of Central role the past three years and in that lion that provided evidence it was undiscovered technically recov- Yujnovich has said that Australia time the company commissioned serious about launching into the erable oil and gas resources in was central to Shell’s LNG business the US$10billion Prelude floating broader energy retailing market in onshore lands and offshore and for its plans to move into LNG project offshore northwest Eastern Australia. state waters, said in a new re- cleaner and transitional energy. Australia. Yujnovich said Shell’s business port that shale formations in Her role in Australia will be The executive changes come continued to evolve with a focus the Appalachian Basin contain filled by Tony Nunan, who cur- ahead of Shell deciding the future on cleaner energy. an estimated 214 trillion cubic rently heads up the oil and gas of the Arrow Energy’s Surat Basin “Around one-quarter of Shell’s feet of undiscovered gas. giant’s operations in eastern Aus- coal-seam gas project and its com- global capital is invested in Aus- Analysts note that the tralia, including the mitment to backing Woodside tralia, and it is integral to our amount of shale gas mentioned Curtis LNG export plant. Petroleum in ventures boosting LNG global strategy to lead in LNG and would be enough to support Shell said Yujnovich will take and natural gas production offshore move into power to provide more over a dozen additional large up a key role from January 2020 in and onshore Western Australia. and cleaner energy as the system LNG projects if the resources shaping future policy in conven- Shell also recently acquired an transitions from molecules to were ever produced. About tional oil and gas across 18 coun- Australian power company, the busi- electrons in the decades ahead,” 1 Tcf of proven gas reserves is tries, excluding Australia. ness electricity retailer ERM Power, she said. required to produce 1 million She has led Shell Australia for in a transaction worth US$415 mil- n tonnes per annum of LNG for a 20-year period. That’s as “significant Equinor hails Johan Sverdrup amounts of natural gas” are already known or have been start-up as boost for Europe produced and used from the Equinor, one of the main pipeline per day to the Norwegian Karsto the Norwegian state to support Marcellus and Utica Shales natural gas suppliers to Europe gas terminal, while the oil export society’s needs and aspirations. since the previous USGS and operator of the Norwegian oil pipeline will transport 660,000 “Johan Sverdrup coming on assessments. and gas fields and the Hammerfest barrels of oil per day to the stream is a momentous occasion for “The USGS assessments are LNG export plant, said it was Mongstad terminal and refinery. Equinor, our partners and suppli- for remaining resources and ex- proud to bring on stream the Pipeline natural gas exports ers,” said Eldar Saetre, President clude known and produced oil Johan Sverdrup oil and gas project from Norway and from in and Chief Executive of Equinor. and gas,” explained the report. with its long-term energy and Russia to Europe provide the largest “At peak, this field will account The natural gas in these for- financial benefits. competition to LNG shipments. for around one third of all oil pro- mations is classified as continu- The start-up of the Johan Sver- Equinor said that at peak duction in Norway and deliver very ous, or contiguous, because it drup was described by Equinor as production, the Johan Sverdrup valuable barrels with record low is spread throughout the as- a momentous occasion. field would account for around emissions,” stated the CEO. sessed rock layers instead of The Johan Sverdrup field is one third of all oil production in Johan Sverdrup has expected being concentrated in discrete named after the first Prime Minis- Norway and deliver very valuable recoverable reserves of 2.7 billion accumulations. ter of Norway after the introduc- barrels with record low carbon- barrels of oil equivalent and is one Production techniques like tion of a parliamentary and dioxide (CO2) emissions. of the cleanest oil and gas fields directional drilling and hy- democratic political system and Johan Sverdrup is expected to as it is powered with electricity draulic fracturing are required who served from 1884 to 1889. generate income from production from shore and the field has to produce these shale-gas and The Johan Sverdrup venture of more than 1,430 billion crowns record-low CO2 emissions of well- oil resources. pipelines will transport around 6 ($157 billion), of which about 900 below 1 kilo per barrel. n million cubic metres of natural gas billion crowns ($100Bln) will go to n THE MEETING PLACE FOR THE WORLD’S LNG LEADERS

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Masato Sasaki Jeong Joon Yu Alaa Abujbara Cristian Signoretto Director, Oil & Gas Division President & CEO Chief Commercial Chief Gas & LNG Marketing Ministry of Economy, SK E&S Co., Ltd. 5JKRRKPI1HƂEGT CPF2QYGT1HƂEGT Trade & Industry (METI), Japan Qatargas Eni S.p.A.

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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 15 October 2019 LNG Unlimited NEWS l 5 NEWS US regulator told by stakeholders NUDGES that Alaska LNG will be very

PNG expansion beneficial for the state and US discussions LNG Journal editor Oil Search, the Papua New Guinea-based energy and LNG The Alaska Gasline Development company, said efforts were Corporation (AGDC), owner of the now focused on the P’nyang proposed Alaska LNG project, has Gas Agreement, with discus- started replying to regulatory sions between the PNG gov- questions on environmental miti- ernment and ExxonMobil, the gation measures as its main part- operator of P’nyang, now tak- ner in the venture, ExxonMobil ing place to clear the way for Corp., has sent a supporting letter. a doubling of LNG production The Federal Energy Regulatory to almost 20 million tonnes Commission issued the draft envi- per annum. ronmental impact statement on The Point Thomson energy facilities in Alaska’s North Slope the Alaska LNG project in July 2019 Petronas in and concluded that it would have the Kenai Peninsula. The main of natural gas,” said ExxonMobil in Korea deal significant impacts on the state pipeline would deliver peak its FERC filing. Petronas, the Malaysian state- offset by many economic benefits. capacity of 3.9 billion standard backed energy company and cubic feet per day of natural Resources LNG supplier, said it signed a Timeline gas from ExxonMobil and BP “ExxonMobil discovered the Point Sale and Purchase Agreement The project was launched nine resources. Thomson field and is the operator (SPA) with Korea Midland years ago and LNG would be pro- In its letter to the FERC sup- of the Point Thomson Unit which Power, the South Korean elec- duced and exported by 2025 after porting the Alaska LNG project, alone contains an estimated 8 tril- tricity generating company. engineering, construction and pro- ExxonMobil said it was backed up lion cubic feet of natural gas, The accord is for 240,000 duction costs estimated at around the Alaska LNG project in respect nearly 25 percent of the currently tonnes per annum of LNG for $43 billion. of the Draft Environmental Impact available supply on the North an initial term of five years. The FERC conclusions were Statement (DEIS). Slope,” it added. Korea Midland is based in that the venture's significant envi- “The DEIS represents a signifi- ExxonMobil said it “fully appre- Boryeong, the port on the ronmental impacts would also cant milestone for the AKLNG Pro- ciates and supports” the role of Yellow Sea coast where the bring an economic boost from ex- ject review and permitting,” said the AKLNG project in potentially nation’s newest of its six LNG port revenues in commercializing ExxonMobil. bringing stranded North Slope nat- import terminals is located. the natural gas resources of “Completion of a Final EIS and ural gas to market as LNG. Alaska’s North Slope. The feed-gas agency approval of the AKLNG Pro- “Just as Alaska oil develop- NYC shipping will be provided by ExxonMobil ject will in turn comprise an im- ment brought economic prosperity forum today and UK major BP. portant step toward realizing to Alaskans, modernized infras- Senior executives from leading The AGDC filed responses on access to Alaska's vast but as yet tructure and improved healthcare, LNG, oil and product tanker October 3 to some questions untapped North Slope natural gas education, sanitary living condi- shipping companies will today raised by the mitigation measures, resources,” added the US major. tions, transportation, waste man- discuss the trends, develop- numbering about 80 issues. ExxonMobil noted that its his- agement and access to power and ments and outlook of the Alaska’s project would comprise tory in Alaska went back nearly emergency services, the commer- global commodities and ship- several pipelines, including a 807- 100 years and its leasing of oil and cialization of this gas could bring ping markets at the Annual mile main line of 42-inches in gas resources at Prudhoe Bay and multiple levels of benefits to New York Maritime Forum at diameter and with associated Point Thomson began soon after Alaska and the United States,” The Metropolitan Club in New above-ground facilities. Statehood more than 50 years ago. concluded the ExxonMobil letter. York City. Executives from 34 These include eight compres- “ExxonMobil was instrumental The letter was part of the FERC shipping and maritime compa- sor stations and a liquefaction in the discovery and development comment period which started in nies will attend the event held facility with output of 20 million of Prudhoe Bay, which remains a July 2019 and which formally in cooperation with the New tonnes per annum at Nikiski on significant oil producing field and ended on October 3. York Stock Exchange, the Nas- the eastern shore of Cook Inlet on an as yet unrealized major source n daq global exchange, New York City Economic Develop- Completion of a Final EIS and agency approval of the AKLNG Project ment Corp. and the Port Au- thority of New York and New “ will in turn comprise an important step toward realizing access to Jersey. Alaska's vast but as yet untapped North Slope natural gas resources n - ExxonMobil” Mitigate the consequences of plant incidents or potential accidents and lower CAPEX and OPEX spends over the lifecycle of your investment with state-of-the-art systems and processes from Honeywell Integrated Fire & Gas Solutions - your expert partner to optimized safety and greater productivity. Learn More: Download Whitepaper | https://hwll.co/FireAndGasSolution Advertorial Optimizing the Fire & Gas System Lifecycle Integrated approach helps LNG companies improve safety and protect investments hroughout industrial operations, there is might even pose a potential risk itself. a focus on the performance of Fire & Experience has shown that LNG operators Gas (F&G) systems. These systems can improve plant safety and mitigate risk by Tcontinuously monitor for abnormal employing the latest fire & gas technology as situations such as a fire or toxic gas release, part of their ICSS. Industrial F&G systems and provide early warning and mitigation continuously monitor conditions within process actions to prevent escalation of the incident plants and provide warnings of an abnormal assisting with Hazard and Operability Studies and protect the plant, personnel, assets, and situation before it becomes a significant threat. (HAZOP), risk assessments, Safety Integrity the environment. Level (SIL) verification and validation, and Today, it is more important than ever for Need for a holistic strategy F&G detector coverage mapping and system LNG companies to leverage their investments in The safety of facilities, personnel, production availability. Other services address design F&G technology to achieve their most critical processes, and the environment is a crucial engineering and implementation and objectives: improve overall safety, eliminate concern for the LNG industry. Faced with this commissioning based on a proven understanding unplanned downtime, mitigate the consequences reality, operating companies are seeking to of industrial safety, fire & gas, and global and of incidents, ensure regulatory compliance, and ensure the lowest risk and highest value local regulatory requirements. increase profits. protection from their F&G systems by As an automation industry leader, Honeywell integrating these assets into the overall control delivers F&G solutions through its local Background system. organizations using global project management The LNG industry is challenging—and is With a non-integrated approach to fire & practices and recognized international becoming more so every day. Global gas demand gas, each technology supplier has a different engineering standards. is surging, meaning operating companies must view of operating processes. There are multiple Honeywell helps to sustain the optimal develop new resources with utmost efficiency solution providers focused on their own sub- performance of F&G systems through a and safety. systems. This forces plant staff to assume the comprehensive managed services program. The specific challenges faced by LNG role of a system integrator—an approach that With its outcome-based Assurance 360 services, companies include: can be expensive and difficult to implement the company takes responsibility for the total • Startup operations on schedule and within and manage. lifecycle of installed assets and utilizes a the budget Conversely, a holistic strategy for F&G secure remote connection to add value through • Increase uptime by maximizing asset is based on a unified technology solution proactive/predictive maintenance of the availability providing a single view of operations. Systems customer’s ICSS platform. • Reduce operating and maintenance costs are based on a common design philosophy and while improving productivity are integrated “out of the box” to enhance the Benefits to LNG operators • Minimize risks and avoid financial losses safety of the plant. This strategy is cost- Experience has shown that a holistic strategy due to incidents effective and easy to deploy and maintain. for fire & gas enables LNG companies to avert • Sustain high levels of operational safety incidents, minimize intervention and performance Taking an integrated approach shutdowns, and recover more easily from • Maintain benefits throughout the asset A growing number of LNG companies are incidents. lifecycle partnering with automation suppliers like The specific benefits of integrated F&G • Quick Return Of Investment (ROI) Honeywell who take an integrated approach to solutions include: LNG operations are under pressure to minimize fire & gas. Honeywell's F&G solution allows • Standardized network design and selection the impact of potential hazards and deal with plants to run with the greatest possible operat- of components; consistency in hardware complex fire & gas codes and local regulations. ing efficiency, safety and security. Other bene- and software requirements; and seamless They may also heed the IEC 61511 standard fits include, but are not limited to: integration of control, safety, F&G, and (ANSI/ISA S84.00.07 in the U.S.), which is • Proven and advanced technology that security assets intended to protect industrial plant operations. improves employee productivity and • Lower engineering costs using out-of-the- reduces exposure to potential industrial box solutions with common interfaces, Role of F&G systems hazards standard engineering applications and An Integrated Control and Safety System • Maximum security at the plant level and tools, and effective project execution (ICSS), used to control LNG facilities, is a protection at the personnel level methodologies combination of the Basic Process Control • Robust single point of contact to optimize • Streamlined pre-testing and site work with System (BPCS) and Safety Instrumented plant operations and process management an integrated Factory Acceptance Test System (SIS) under a single architecture. • Proven reliability for continuous operations (FAT) and training of EPC contractors and The SIS is primarily applied to prevent • Increased safety and security plant personnel on deployed solutions hazardous events from occurring (Prevention Honeywell’s approach to F&G projects employs • Expedited system calibration, testing, layer) and, if necessary, mitigate the expert services starting with consultancy dur- commissioning, and installation with a consequences of such an event (Mitigation ing Front End Engineering Design (FEED) and single qualified technology partner and layer). The motive for this distinction is due continuing through execution to long-term collaborative project team. to the fact that a BPCS does not necessarily lifecycle support. During the FEED stage, To find out more visit us at contribute the risk reduction and sometimes for example, Honeywell provides services https://hwll.co/FireandGasSolution. 8 l NEWS LNG Unlimited 15 October 2019 UK major BP chooses upstream and LNG expert Bernard Looney to succeed Dudley as CEO LNG Journal editor “Bernard has all the right qual- UK major BP, one of the leading ities to lead us through this trans- LNG producers with two current formational era. He has deep world-class LNG production pro- experience in the energy sector, jects in Alaska and Mauritania- has risen through the ranks of BP, Senegal and volumes booked from and has consistently delivered the US Gulf Coast and nations such strong safety, operational and fi- as Mozambique confirmed that nancial performance,” added Lund. Chief Executive Bob Dudley was “He is an authentic, progres- stepping down after a 40-year ca- sive leader, with a passion for pur- reer with the UK major and nine pose and people and a clear sense years as CEO. of what BP must do to thrive Dudley, 64, has decided to through the energy transition,” retire after delivery of the com- stated Lund. pany’s 2019 full-year results on Dudley said he felt privileged 4 February 2020 and will leave on to have served the company and 31 March 2020. New BP CEO Bernard Looney, aged 49, is head of Upstream to have worked in the industry for the past four decades. Praised offshore Louisiana on 20th of April capable of making solid progress “I have worked with so many He will be replaced by Bernard 2010 in which 11 workers died. on BP’s plans to operate floating committed people from all over Looney, aged 49, currently chief During his tenure he led the LNG exports plants offshore West the world - both inside and out- executive of BP’s Upstream company’s recovery from the Africa and complete the large- side BP - and I am enormously Division. Deepwater Horizon accident and scale onshore liquefaction plant proud of all the things we have BP Chairman Helge Lund, the rebuilt BP as a stronger and safer in Alaska. achieved together to provide en- former CEO of Norway’s Equinor operator amid huge payouts esti- BP is the owner of an LNG car- ergy for the world,” said Dudley. when it was known as Statoil, mated at $60 billion for an envi- rier fleet and its supply portfolio “Bernard is a terrific choice to praised Dudley for his global influ- ronmental clean-up and and equity stakes also includes lead the company next. He knows ence on the industry. compensation. projects in Australia, Indonesia, BP and our industry as well as any- “Bob has dedicated his whole Analysts said Looney was an Trinidad and elsewhere. one but is creative and not bound career to the service of this indus- excellent choice as the new CEO, Chairman Lund said Looney was by traditional ways of working. try. He was appointed chief execu- given his solid background in ex- the ideal person to take the com- I have no doubt that he will tive at probably the most ploration and production with lists pany through the energy transition thoughtfully lead BP through the challenging time in BP’s history,” of successes in the Caribbean, with natural gas being a large part transition to a low-carbon future,” said Lund, referring to the Deep- Egypt and Oman. of this strategy for a clean-energy stated Dudley. water Horizon platform explosion Looney is also seen as being future. n

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Japanese MISC Berhad signs ExxonMobil spot cargo for two 15-year newbuild ships prices on LNG Journal editor decline MISC Berhad, the Malaysian ship- Japanese spot liquefied natural ping line with a liquefied natural gas cargoes delivered in Septem- gas carrier fleet of more than 30 ber cost $5.20 per million British vessels, said it had signed time thermal units less than in the charters for two newbuild LNG same month a year ago, though carriers with ExxonMobil Corp. just $0.60 less than in August “Each of the LNG carriers will 2019 amid an over-supplied mar- respectively serve the transporta- ket and tentative demand. tion needs of ExxonMobil’s world- Delivered cargoes in Septem- wide LNG portfolio on a 15-year ber 2019 cost $4.90 per MMBtu charter contract,” said MISC. The ExxonMobil and MISC signing ceremony in Houston compared $10.10 per MMBtu in The two MISC carriers are being September 2018 and the con- built at the South Korean Samsung and Group Chief Executive Yee an integral part of ExxonMobil’s tracted price of shipments for Heavy Industries shipyard. Yang Chien. commitment to provide flexible September 2019 was $5.40 per MISC said each vessel would “With our broad spectrum of solutions in the open and dynamic MMBtu versus $10.70 per MMBtu have a capacity of 174,000 cubic energy related maritime solutions LNG marketplace,” explained in the same month of 2018. metres and will feature the most and services, MISC is confident of Volkov. Delivered cargoes in August modern XDF propulsion, a Mark III our ability to serve the various ExxonMobil's LNG expansion 2019 had cost $5.50 per MMBtu Flex Plus containment system and needs of the global oil and gas projects include the Golden Pass and shipments for Japan con- a full re-liquefaction facility for industry,” he added. export plant in Texas and the tracted in August 2019 cost an higher efficiency. “We honour the trust and value Mozambique LNG joint venture in average of $5.30 per MMBtu. The LNG carriers are expected the opportunity given for us to southeast Africa. The North Sea Brent crude to be delivered in the first quarter support ExxonMobil in ensuring During the signing of the agree- oil price that influences of 2023. safe, efficient and reliable trans- ments in Houston, Texas, MISC was Japanese long-term contract “This is certainly a landmark portation of LNG,” stated Yee. represented by its Vice President prices has less of an impact on moment for MISC, and we are Alex Volkov, Vice President of of LNG Business, Zahid Osman, spot LNG cargoes, a market proud to expand this strategic Global LNG Marketing at ExxonMo- and ExxonMobil by its Vice Presi- mainly governed by delivery partnership with ExxonMobil, bil, said the US major was delighted dent for Global Marine Commer- windows, the price of volumes beginning with petroleum and with the new partnership. cial and Planning, Doug Grote. and available shipping. now LNG,” said MISC’s President “Our cooperation with MISC is n The spot cargo numbers come from the commerce divi- sion of the Japanese Ministry of Chinese Rudong terminal set Economy, Trade and Industry and are only issued if a mini- mum number of two trades are to ramp-up deliveries soon recorded. The Rudong liquefied natural gas Kunlun, which operates the the accident, according to mar- The Ministry emphasizes that import terminal in the eastern receiving terminal, has cut regasi- itime tracking data. “spot LNG” refers to fuel Jiangsu Province of China and fication send-out at Rudong since The terminal was completed in traded on a cargo-to-cargo basis with LNG links to Canada is un- September 21 when, during a ty- 2011 and has three storage tanks, and does not mean shipments dergoing repairs after an accident phoon, a tanker reportedly col- each of around 170,000 cubic under contracts on a short- and is not expected to be fully lided with a bridge that connects metres capacity. term, medium-term or long- operational again until mid- the island where the terminal is The Rudong terminal near Nan- term basis. November. located to the mainland. tong was visited in November 2016 The statistical accounting of Rudong is 55 percent-owned by Executives said that repairs to by a Canadian trade delegation the spot prices started in March Kunlun Energy, a Hong Kong-listed infrastructure near the terminal from British Columbia led by the 2014. subsidiary of PetroChina. were now being carried out. then BC Premier Christy Clark who Overall Japanese LNG imports The owner of the Woodfibre The facility received about was seeking to broaden LNG ties in August, dropped by around LNG export project being built 650,000 tonnes of LNG in August, with China. 20 percent because of the sum- at Squamish, north of Vancouver, which was more than 12 percent PetroChina itself is an investor mer holiday, with even Aus- Pacific Oil & Gas, holds the other of China’s overall LNG monthly in the largest LNG export project tralian and spot shipments 35 percent stake in the Chinese imports. moving forward in BC, the LNG falling while US and Russian terminal. PO&G is a unit of the LNG volumes delivered to Canada joint venture in Kitimat LNG shipments grew. Royal Golden Eagle group, whose Rudong fell by almost half to with 20 MTPA of initial output. n headquarters are in Singapore. 360,000 tonnes in September after 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 15 October 2019 LNG Unlimited NEWS l 11 FERC again delays environmental report on Jordan Cove LNG in state of Oregon LNG Journal editor not be significant or would be reduced to less than significant The US Federal Energy Regulatory levels with the implementation of Commission has delayed comple- proposed and suggested mitigation tion of an environmental impact measures. statement (EIS) for the Jordan The FERC did note that the Cove liquefied natural gas export project owner, Pembina Pipeline, facility and its affiliated Pacific would implement an “Erosion Connector Pipeline planned for Control and Revegetation Plan”, the northwest state of Oregon. “Wetland and Waterbody Con- The Jordan Cove project is pro- struction and Mitigation Proce- posed by Pembina Pipeline Corp. dures” and “Upland Erosion of Canada for Coos Bay in Oregon. Control, Revegetation, and Main- tenance Plans” as well as other Five mini-Trains impact avoidance, minimization The plant would comprise five Star marks Jordan Cove LNG site with shipping route and mitigation measures. small-scale liquefaction Trains each As proposed, the LNG plant with 1.5 million tonnes per annum now be due on 15th November 2019 cubic metres, gas treating facili- would be visited by about 120 LNG of output for a total of 7.8 MTPA. and a final order has been sched- ties, an export jetty and access to carriers per year and Pembina has According to a notice issued in uled for 13th of February 2020. more than 25 billion cubic feet per confirmed that it had signed pre- the Federal Register, the US Forest The previous 2019 delay im- day of gas supply from Western liminary accords with Jera Co Inc. Service said it “only recently re- posed on the Jordan Cove venture Canada and the US Rockies. and Itochu Corp. of Japan for the ceived critical information from was in March and was blamed on The FERC has already concluded supply of LNG. the project proponent that is nec- the 35-day partial shutdown of the in its draft EIS that constructing The US Coast Guard has already essary for it to complete its land federal government at the start of and operating the Jordan Cove issued a Letter of Recommendation and resource management plan the year. would result in temporary, long- indicating that the Coos Bay Federal amendments” and requested addi- The Jordan Cove venture's facil- term and permanent impacts on Navigation Channel would be con- tional time. ities would also include two full- the environment. sidered suitable for the LNG marine A notice of availability of the containment LNG storage tanks However, the regulator noted traffic associated with the project. final EIS for Jordan Cove LNG would with total capacity of 320,000 that many of these impacts would n US natural gas production rises while nation's energy-related carbon emissions decline

Natural gas producing states like Administration made the forecasts supply growth that has enabled 471 billion kWh in 2020. “In EIA’s Texas are in advance of states like in its winter fuels and short-term natural gas inventories to build forecast, Texas accounts for 19 California on use of renewables energy outlooks. more than average during the percent of the US non-hydropower while US natural gas production The energy outlook stated that April through October injection renewables generation in 2019 and is rising again in 2019 and the the Henry Hub natural gas spot season,” it added. 22 percent in 2020. California’s nation’s energy-related emissions price averaged $2.56 per million The EIA report forecasts that forecast share is 15 percent in of carbon-dioxide are on the British thermal units (MMBtu) in natural gas storage levels will 2019 and 14 percent in 2020,” decline in 2019 and 2020. September, up 34 cents per MMBtu total 3,792 Bcf by the end of Oc- stated the report. The US government's latest from August, which was the first tober, which is 2 percent above “The Midwest and Central forecasts were positive for natu- monthly price increase since the five-year average and 17 per- power regions each see shares in ral gas and other issues. They March. cent above October 2018 levels. the 16 percent to 17 percent noted that average household ex- “EIA forecasts Henry Hub prices The report also included de- range of the US generation total penditures for all major home to average $2.43 per MMBtu in the tails on coal production, gas-fired from non-hydropower renewables heating fuels will fall this winter fourth quarter of 2019, a decrease power, the use of renewables and in 2019 and 2020,” it added. compared with last because of of more than $1 per MMBtu from US carbon emissions. US coal production is expected warmer weather while average the fourth quarter of 2018, subse- According to the outlook, US to fall to 159 million short tons annual dry natural gas production quently increasing to an average electric power sector generation (MMst) in the fourth quarter of will jump 10 percent year-on-year of $2.52 per MMBtu in 2020,” from renewables other than hy- 2019, a decline of 34 MMst (17 to 91.6 billion cubic feet per day stated the report. dropower - principally wind and percent) from the same period in in 2019. “US natural gas prices have solar - will grow from 414 billion 2018. The US Energy Information fallen in 2019 because of strong kilowatthours (kWh) in 2019 to n