Page 10 - NorthAmOil Week 22 2021

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.™

P10 www. NEWSBASE .com Week 22 03•June•2021