Page 12 - AsianOil Week 43

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Mitsui, Sempra sign MoU on LNG
PROJECTS & COMPANIES
SEMPRA Energy announced on October 28 that it had entered into a memorandum of under- standing (MoU) with Japan’s Mitsui & Co. The non-binding agreement covers Mitsui’s partici- pation in the second phase of Sempra’s Cameron LNG project, as well as a future expansion of the Energia Costa Azul LNG project in Mexico.
Mitsui is already part of the consortium developing the first phase of Cameron LNG in Louisiana, which recently entered service and consists of three trains. Under the MoU, the two companies have agreed to help each other build two more trains as part of a second-phase expansion.
Train 1 at Cameron LNG began commer- cial operations in August, with Trains 2 and 3 expected to commence LNG production in the first quarter and second quarters of 2020 respec- tively. Mitsui is already an equity participant in the development company for both phases of Cameron LNG.
Under the MoU Sempra and Mitsui also agreed to help each other develop LNG export
capacity at the already existing Energia Costa Azul import terminal on Mexico’s Pacific Coast. Energia Costa Azul LNG is being developed in partnership with Sempra’s Mexican subsidi- ary, IEnova. Phase 1 of the project includes one liquefaction train with an export capacity of roughly 2.4mn tonnes per year (tpy). A future expansion of the terminal would include addi- tional trains with an anticipated export capacity
of around 12mn tpy.
Sempra and Mitsui entered into a heads of
agreement (HoA) in November 2018 and are currently finalising a definitive 20-year LNG sales and purchase agreement (SPA) for the potential purchase of 800,000 tpy of LNG from Phase 1 at Energia Costa Azul.
Under the newly signed MoU, Mitsui could become the offtaker for up to one-third of the available capacity from Cameron LNG’s second phase. The agreement also calls for the company to buy up to 1mn tpy of LNG from the Energia Costa Azul expansion, as well as buying into the project as an equity participant.™
PetroChina sets production targets for Changqing field
PROJECTS & COMPANIES
A unit of state-run PetroChina aims to produce 25mn tOnnes per year (500,000 barrels per day) of oil and 42bn cubic metres of natural gas from the Changqing field by 2020, Reuters cited local media reports from October 28 as saying.
A PetroChina Changqing Oilfield spokes- man said the company aimed to pump 28mn tpy (560,000 bpd) of crude and 45 bcm of gas by 2025. The field is located in China’s north-west- ern Ordos Basin.
PetroChina said on October 21 that it expected to have more than 18,000 gas wells operating in the field by December. The move is an effort to ensure sufficient gas supply to the country’s northern regions during the win- ter heating season. The company added that it would wrap up all maintenance at Changqing before the end of this month.
PetroChina announced on September 29 that it had added more than 1bn tonnes (7.33bn barrels) of oil reserves in the basin, which is located in Inner Mongolia. The com- pany said it had added 358mn tonnes (2.62bn barrels) of proven reserves at the Qingcheng oilfield, as well as 693mn tonnes (5.08bn bar- rels) of “expected reserves”.
PetroChina vice-president Li Luguang said the oilfield would produce 640,000 tonnes (4.69mn barrels) of oil this year, with annual output predicted to plateau at 3mn tpy (60,000 bpd) in the near future.
The official China Daily quoted the head of the China Institute for Studies in Energy Policy at Xiamen University, Lin Boqiang, as saying the new discovery had boosted the industry’s confidence in domestic oil
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w w w . N E W S B A S E . c o m Week 43 30•October•2019