Page 10 - NorthAmOil Week 03 2022

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Woodside signs preliminary deal on

Commonwealth LNG supply deal

LOUISIANA AUSTRALIA’S Woodside Energy announced on LNG shipments from the project would then
January 19 that it had signed a heads of agree- begin in the second quarter of 2026 – the same
ment (HoA) with Commonwealth LNG to time that Woodside’s supply agreement would
negotiate a supply deal from the latter’s proposed kick in if it is finalised based on current plans.
liquefaction terminal on the US Gulf Coast. Woodside’s announcement noted that Com-
The non-binding HoA paves the way for monwealth had been working to lower the cost
the two companies to negotiate for Woodside of LNG, with comments from both companies
to purchase 2.0mn tonnes per year (tpy) from suggesting these efforts had paid off.
Commonwealth LNG over a period of 20 years, “This HoA is testament that Commonwealth’s
starting in the second quarter of 2026. Woodside approach to lowering the cost of LNG produced in
noted that its offtake obligation could be reduced the US is gaining prominent support,” stated Com-
or even eliminated if Commonwealth lines up monwealth LNG’s founder and CEO, Paul Varello.
other buyers. Conversely, it would also have the “This HoA with Commonwealth secures
option to increase its purchases by an additional access to competitive LNG in the Atlantic Basin
500,000 tpy of LNG. and provides Woodside with the ability to build
Commonwealth LNG will have the capacity market scale through acquiring low-cost supply,”
to produce 8.4mn tpy of the super-chilled fuel. said Woodside’s CEO, Meg O’Neill.
According to Commonwealth LNG’s website, a Commonwealth says on its website that it will
final investment decision (FID) on the terminal use innovative techniques alongside a proven
is being targeted for early 2023, having been construction model in order achieve its goals of
pushed back previously owing to the recent drop being a low-cost supplier and reducing risk for
in energy demand – which has since reversed. investors and customers.™

ENERGY TRANSITION

Imperial sets oil sands emissions

intensity reduction goal

ALBERTA CANADA’S Imperial Oil has unveiled a goal of implementation of “next generation” technolo-
reducing the emissions intensity of its oil sands gies at its Cold Lake project, efficiency improve-
operations by 30% from 2016 levels by 2030. ments at its oil sands facilities, and the use of
The target forms part of Imperial’s longer-term carbon capture and storage (CCS).
strategy of reaching net-zero greenhouse gas “We are making significant step changes by
(GHG) emissions from its oil sands operations deploying a suite of lower-emissions solutions in
by 2050. our oil sands operations that help support Can-
In a January 19 announcement, Imperial said ada’s ambition for net-zero emissions by 2050,”
that the 2030 target included Scope 1 and 2 emis- said Imperial’s chairman, president and CEO,
sions – those produced directly from its opera- Brad Corson. “Our updated emission-reduction
tions and indirectly from energy used to power plans are challenging and require innovation
those operations respectively. Its net-zero goal and technology solutions developed in collab-
for 2050 also covers Scope 1 and 2 emissions but oration with policymakers, industry and other
not Scope 3 – those emissions stemming from stakeholders, to help accelerate deployment of
the use of Imperial’s products by customers. lower-carbon technology.”
The goals build on the decarbonisation mile- Corson’s comments echo those of other
stones Imperial has achieved to date. The com- companies – both oil sands producers and the
pany said it had cut GHG emissions intensity by broader oil and gas industry – who are calling
more than 20% between 2013 and 2016. It noted for more government support to help fund and
that it also remains on track to meet its previous develop low-carbon technologies.
Scope 1 and 2 emissions intensity goal of a 10% Imperial’s unveiled its new emissions inten-
reduction from 2016 levels for operated oil sands sity target in the same week that its majority
facilities by the end of 2023. owner, ExxonMobil, announced that it would
Imperial said it intended to achieve the 30% target net-zero emissions from its operations on
reduction in emissions intensity through the a Scope 1 and 2 basis by 2050.™

P10 www. NEWSBASE .com Week 03 20•January•2022