Page 10 - NorthAmOil Week 33

NorthAmOil PROJECTS & COMPANIES
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Start-up milestones for Cameron LNG, Freeport LNG
US GULF COAST
THE rst liquefaction train at Sempra Energy’s Cameron LNG terminal on the Louisiana coast has started commercial production of LNG, the company announced on August 19.
“ is is an exciting moment for Cameron LNG and for Sempra Energy,” said Sempra North American Infrastructure’s chairman and CEO, Carlos Ruiz Sacristan, in a statement. “Cameron LNG is exporting lique ed natural gas (LNG) to customers in the largest world mar- kets, helping to support economic growth in the US and abroad.”
On the same day, Freeport LNG Develop- ment also confirmed that its project on the Texas coast had entered production. Freeport and Cameron LNG are the last projects in the first wave of US liquefaction capacity to be built in the Lower 48 US states in recent years, aside from Kinder Morgan’s Elba Island LNG. That project was due to launch earlier this year, but experienced a number of delays dur- ing commissioning. It was reported this week that Kinder Morgan had asked the US Federal Energy Regulatory Commission (FERC) for authorisation to start long-term service by August 16. However, the FERC has not yet published its response.
Freeport LNG registered its initial output on August 12, but a day later a gasket ruptured, resulting in the release of refrigerant and requir- ing repairs before the start-up process could be o cially announced. On August 19, however, the project was reported as having achieved sus- tained production. e rst cargo from Freeport LNG is expected later this month.
e Freeport project includes three liquefac- tion trains, with initial LNG production from the second and third trains anticipated in the fourth quarter of 2019 and the first quarter of 2020
respectively. Each train has a capacity of around 5mn tonnes per year of LNG. A proposal for a fourth train, which would add a further 5mn tpy of LNG production to the project, has been approved by regulators. e fourth train would begin operations in 2023.
Japanese utilities Osaka Gas and Chubu Elec- tric Power are the main long-term o akers from the rst train at Freeport LNG, with each having struck deals that account for 2.2mn tpy of capac- ity at the plant.
At Cameron LNG, the rst phase of the pro- ject includes three trains, which will have a com- bined capacity of 12mn tpy of LNG.
Sempra Energy indirectly owns 50.2% of Cameron LNG. A liates of Total, Mitsui & Co. and Japan LNG Investment – which is jointly owned by Mitsubishi and Nippon Yusen Kabu- shiki Kaisha (NYK) – are the other partners in Cameron.
Federal regulators have given Cameron LNG until September 2020 to complete the second and third trains at the facility.
Attention will now increasingly turn to a number of proposed projects that would make up the second wave of US LNG exports. The Golden Pass LNG project, jointly owned by Exx- onMobil and Qatar Petroleum (QP), is the rst of the second wave to reach a nal investment deci- sion (FID). e project has an expected in-ser- vice date of 2024. Meanwhile, doubts have been expressed about the ability of other would-be LNG developers to move forward given the chal- lenges involved in securing nancing and o ake agreements. ese concerns have been exacer- bated by the US trade war with China, which is on its way to becoming the world’s largest LNG importer but is currently staying aloof from any US deals.™
Attention will now increasingly turn to a number of proposed projects that would make up the second wave of US LNG exports.
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w w w . N E W S B A S E . c o m Week 33
20•August•2019