Page 8 - GLNG Week 33 2021
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McDermott wins second EPC contract for Philippine LNG project
PROJECTS & COMPANIES
US-BASED McDermott International has won an engineering, procurement and construction (EPC) contract for work on one several Phil- ippine LNG import facilities currently under development.
The service provider said on August 18 that Atlantic Gulf and Pacific (AG&P) had awarded the contract to its CB&I Storage Solutions unit for work on a second LNG storage tank and double-wall LNG bullet for the Philippines LNG (PLNG) terminal in Batangas Bay.
AG&P awarded the contract for work on terminal’s first LNG storage tank to CB&I Stor- age Solutions earlier this year. The additional scope includes a 1,200 cubic-metre shop-fab- ricated double wall LNG bullet and a second 60,000 cubic-metre full containment steel LNG tank along with geotechnical investigation, soil improvement, foundation and topside platform structure, pre-commissioning, purging and commissioning activities.
CB&I senior vice president Cesar Canals said: “Our fabrication facility in Thailand specialises in the production of prefabricated storage solutions and will build the LNG
bullet for delivery to Batangas.”
The $315mn PLNG terminal, which will use
a floating storage and regasification unit (FSRU), will have an initial import capacity of up to 3mn tonnes per year. It will also feature a scalable onshore regasification capacity of 420mn cubic feet per day and almost 200,000 cubic metres of storage.
AG&P’s proposed import facility received a notice to proceed from the Department of Energy (DOE) in March and aims to supply gas to the 1,200-MW Ilijan gas-fired thermal power plant (TPP). Ilijan is one of several TPPs on the island of Luzon to rely on gas supplies from the offshore Malampaya field, which is projected to run dry before the end of the decade.
CB&I said earlier this year that mechanical completion of the first LNG storage tank was slated for the third quarter of 2023, with purging and commissioning activities to follow.
Canals said in March that the full contain- ment steel design of both tanks is a first of a kind, which places his company in a position to serve the “growing small-scale LNG market in Asia and other regions with similar demands”.
Australian LNG exports to China hit record high
PERFORMANCE
AUSTRALIAN LNG exports to China have risen to record highs despite ongoing trade ten- sions between the two countries.
A monthly report from consultancy Ener- gyQuest, which cited customs data, said Aus- tralia had supplied a record 30.7mn tonnes of LNG to China in the 2020-21 fiscal year, which runs from July 1 to June 30. This marks a 7.3% increase year on year (y/y) in shipments and means that, for the first time, China has over- taken Japan as Australia’s largest buyer of LNG. The shipments were valued at AUD15.6bn ($11.3bn).
Australian exports to China were higher than recorded in disclosed contracts, which are worth 19.4mn tonnes, EnergyQuest noted. Almost all of the projects that have contracts with Chi- nese buyers supplied above their contractually agreed volumes according to the consultancy. Every other Australian LNG project also sup- plied cargoes to Chinese buyers, even without contracts, it said. The additional supplies came
from portfolio volumes and spot sales.
Overall Australian LNG supplies to North Asia – China, Japan, South Korea and Taiwan – also hit a record high of 72.4mn tonnes in the 2020-21 fiscal year. This happened despite the hit that the LNG market took as a result of the coro-
navirus (COVID-19) pandemic last year.
The statistics come as China continues on its path towards becoming the world’s larg- est importer of LNG, overtaking Japan. China imported a total of 76.1mn tonnes in the 12 months up to June 2021, compared with 63.6mn tonnes in the previous 12-month period, accord- ing to EnergyQuest. This marks a rise of 19.6% y/y. The rise in LNG trade between Australia and China defies warnings that this trade could suffer as the two countries remain at odds over broader trade issues and bring in a series of retaliatory measures against each other that have affected other industries. Since the spring of 2020, Beijing has curbed Australian beef imports, while levy- ing tariffs on barley and wine from the country.
AUSTRALASIA
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w w w . N E W S B A S E . c o m Week 33 20•August•2021
