Page 10 - NorthAmOil Week 22 2021
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NorthAmOil                             PROJECTS & COMPANIES                                       NorthAmOil


       Tellurian announces another supply deal





        US GULF COAST    US-BASED Tellurian has finalised a sales and  TTF is trading close to its highest levels since
                         purchase agreement (SPA) with commodity  September 2018.
                         trader Vitol for 3mn tonnes per year (tpy) of   “Tellurian continues to execute on our plan
                         LNG from its planned Driftwood LNG pro-  to market Driftwood LNG volumes on indices
                         ject on the Louisiana Gulf Coast over a 10-year  that our customers want,” commented Tellurian’s
                         period. It is the second SPA to be announced by  president and CEO, Octávio Simões.
                         the company in a week, after it struck another   The offtake deals bring the company closer
                         10-year supply deal for 3mn tpy with Gunvor,  to a final investment decision (FID) on Drift-
                         another commodity trader.            wood, the first phase of which is estimated to
                           The announcements come after comments  cost about $16.8bn and produce about 16.5mn
                         made in late April by Tellurian’s chairman, Cha-  tpy of LNG. Souki said this week that his com-
                         rif Souki, implied that the company had been  pany was “highly confident” that it would begin
                         working on long-term commercial agreements  construction this summer, and issue a notice to
                         for some time and would soon begin making  proceed to Bechtel, its engineering, procurement
                         them public.                         and construction (EPC) contractor, in the first
                           Tellurian has said that both of its newly  quarter of 2022.
                         announced deals are indexed to a combination   A new presentation released by the company
                         of the Japan Korea Marker (JKM) and the Dutch  also appears to suggest that the FID on Drift-
                         Title Transfer Facility (TTF), each netted back  wood has been pushed back from 2021 to 2022.
                         for transportation charges. Each deal is esti-  However, the SPAs help to position the project
                         mated to be worth about $12bn in revenue over  further ahead in the race to build more liquefac-
                         its 10-year period at current LNG prices – and  tion capacity on the Gulf Coast.™






                                               ENERGY TRANSITION




       Venture Global unveils CCS



       plan for Louisiana LNG projects





        US GULF COAST    US-BASED Venture Global announced last  another 500,000 tpy of CO2 from the CP2 LNG
                         week that it would develop carbon capture and  project once that facility is permitted and sanc-
                         storage (CCS) capacity to serve two of its LNG  tioned. The company made no mention of its
                         export projects on Louisiana’s Gulf Coast.  other proposed liquefaction terminal, Delta
                           Venture Global said that the CCS project  LNG, adding weight to speculation that the latter
                         still needed regulatory approvals but was shov-  project will be scrapped.
                         el-ready. The venture entails compressing carbon   Other developers are proposing to add CCS
                         dioxide (CO2) at the company’s Calcasieu Pass  components to their US LNG export projects,
       Costruction is currently   and Plaquemines LNG sites and then transport-  but with Calcasieu Pass potentially ready to ship
       being completed on   ing it for injection into subsurface saline aqui-  its first cargo later this year, this would mark the
       Calcasieu Pass LNG.  fers, where it will be permanently stored.  first time CCS is deployed for an existing export
                           Calcasieu Pass is currently under con-  terminal. Venture Global did not specify a time-
                         struction and nearing completion, while  line for building the CCS project, however.
                         Venture Global is targeting a final investment   Nonetheless, the company’s move is a timely
                         decision (FID) on Plaquemines LNG later this  one, as the administration of US President Joe
                         year. The company said it now anticipates cap-  Biden has made its preference for “greener”
                         turing and sequestering an estimated 500,000  LNG clear. On a visit to Houston last week, US
                         tonnes per year (tpy) of CO2 from the two  Secretary of Energy Jennifer Granholm said the
                         liquefaction projects through its new CCS  administration would prefer to promote and sell
                         development.                         a cleaner version of the fuel. She added that the
                           Venture Global said it also expects to use  administration was looking closely at CCS as a
                         similar infrastructure to capture and sequester  means of decarbonising LNG and other fuels.™



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