Page 9 - GLNG Week 50
P. 9
GLNG AMERICAS GLNG
Peru LNG reports exports down year on year in November
PERFORMANCE
PERU LNG, a consortium that operates a gas liquefaction plant and export terminal in Pampa Melchorita, saw export volumes decline year on year in the month of November.
According to data published earlier this week by the national oil company (NOC) Perupetro, Peru LNG loaded four vessels with 635,758 cubic metres of LNG last month. This marked a 27.3% decline in volume on loadings in November 2018, when the group exported some 874,706 cubic metres of LNG.
Total export volumes also went down month on month. According to previously released data, Peru LNG loaded five vessels with 805,906 cubic metres of LNG in October 2019. As a result, exports dropped by about 21.1% on the previous month’s level.
Peru LNG has loaded and dispatched a total of 546 cargoes of LNG since its launch in June 2010. Of the four cargoes dispatched in Novem- ber 2019, one went to Japan, one went to the Grain LNG terminal in the UK and two went to the Dunkirk LNG terminal in France.
The Peru LNG consortium, which was estab- lished by the US company Hunt Oil with three partners, spent $3.8bn on the construction of the Pampa Melchorita facility. The complex has a 4.45mn tonne per year (tpy) gas liquefaction plant, constructed by Chicago Bridge & Iron (CBI), and a marine terminal, built by a consor- tium known as CDB. (This group includes Italy’s Saipem, Luxembourg’s Jan de Nul and Brazil’s Odebrecht.)
The Pampa Melchorita complex also has a storage depot outfitted with two 130,000 cubic metre tanks and a 34-inch (860-mm) natural gas supply pipeline. The latter handles gas from fields operated by Spain’s Repsol and the Argen- tinian NOC YPF in the Cusco region. It follows a 408-km route from Chiquintirca, a town in the Ayacucho region, to the gas liquefaction plant.
Equity in the Peru LNG project is divided between Hunt Oil, with 50%; SK Energy (South Korea), with 20%; Royal Dutch Shell (UK-Netherlands), with 20%, and Marubeni (Japan), with 10%.
Tellurian allowed to begin site preparation work for Driftwood LNG
PROJECTS & COMPANIES
TELLURIAN has been given the go-ahead by US regulators to start preparation work at the site of its proposed Driftwood LNG terminal in Louisiana, on the Gulf Coast.
The US Federal Energy Regulatory Com- mission (FERC) said last week that Tellurian could start vegetation clearing and grading, the demolition and removal of existing buildings and the dredging of marine berths, among other activities.
“With FERC’s approval, we are doing some preliminary work on the site,” a Tellurian spokes- woman, Joi Lecznar, told Reuters. She added that the company had completed over 27% of its engineering and had ordered some equipment in preparation for the start of construction on Driftwood.
The $27.5bn Driftwood LNG project still requires a final investment decision (FID), which Tellurian had previously been targeting for ear- lier this year. However, Tellurian’s CEO, Meg Gentle, was reported as saying this week that the company had already decided to proceed with Driftwood, even though it still needs to wrap up commercial efforts and financing related to the
first phase of the project – currently targeted for March and May 2020 respectively.
Gentle told S&P Global Platts that the com- pany was negotiating with a major unnamed buyer to take a $2bn stake in Driftwood. If a deal is reached, coupled with a preliminary agree- ment with India’s Petronet being finalised, this would give Tellurian enough equity participa- tion from partners to begin full construction of the terminal. Tellurian’s model is unusual in that instead of relying on traditional long-term offtake contracts to move projects forward, the company is offering equity in a holding company that includes Driftwood and four planned natu- ral gas pipelines that would serve the terminal. Tellurian is seeking minimum equity invest- ments of $500mn from partners.
Driftwood is designed to produce 27.6mn tonnes per year (tpy) of LNG. Assuming Tellu- rian can finalise the necessary agreements with partners, it is aiming to start building the liq- uefaction plant in early 2020 and produce first LNG from the facility in 2023. Bechtel has been contracted to build the $15.4bn Driftwood liq- uefaction facility.
Week 50 19•December•2019 w w w . N E W S B A S E . c o m P9
