Page 11 - GLNG Week 32

GLNG AMERICAS GLNG
Chinese company to buy stake in GNA’s LNG-to-power project
INVESTMENT
CHINA’S State Power Investment Corp. (SPIC) has arranged to buy a stake in Gas Natural Açu (GNA), Latin America’s largest LNG-to-power project.
Earlier this week, SPIC signed a binding agreement on the purchase with the three part- ners in the GNA joint venture: Siemens (Ger- many), BP (UK) and Prumo, a private Brazilian entity controlled by EIG Global Energy Part- ners. Under the deal, the Chinese company will acquire a 33% stake in GNA’s two thermal power plants (TPPs), both of which are currently under construction. When complete, the facilities will use regasified LNG delivered to the Açu Gas Hub to generate electricity.
The parties intend to finalise the binding agreement on the project in the fourth quarter of this year. They have also signed a separate accord that permits SPIC to participate in future expan- sion projects that will be known as GNA-III and GNA-IV.
As of press time, the parties had not dis- closed the value of the deal for GNA-I and
GNA-II. They have said, though, that the total cost of establishing the four power-generating TPPs and associated infrastructure may hit $5bn.
GNA-1 and GNA-II will be part of the Açu Gas Hub, a complex that also includes an LNG regasification terminal in the port of Açu in Rio de Janeiro State. The terminal, a floating storage and regasification unit (FSRU), will be operated by Prumo and supplied with LNG by BP. The vessel will be able to handle the equivalent of 21mn cubic metres per day of natural gas, and then transfer the gas to GNA’s existing generating units, which have a combined capacity of 3,000 MW. (GNA-I has a capacity of 1,300 MW, while GNA-II has a capacity of 1,700 MW.)
Together, GNA-I and GNA-II will produce enough electricity to supply up to 14mn house- holds in Brazil. Both of the TPPs are being built by Siemens.
The complex’s generating capacity will rise to 6,400 MW after GNA-III and GNA-IV are finished.™
Tellurian reduces cost of Driftwood Phase 1 by 30%
INVESTMENT
HOUSTON-BASED Tellurian has amended the plan for the first phase of its proposed Drift- wood LNG project, according to an August 12 investor presentation. The changes will allow the company to reduce the capital cost of Phase 1 by around 30%, it said.
If Tellurian decides to sanction the 27.6mn tonne per year (tpy) Driftwood facility, it will now only build one pipeline to the plant during the first phase of development, having previously proposed four. This, combined with a focus on lower-cost feedstock gas supplies, has allowed the company to bring its cost estimate for the first phase down from $1,473 per tonne to $1,042 per tonne, based on the Phase 1 contractor-guaran- teed capacity of 14.4mn tpy.
Under the company’s amended plan, only the Driftwood pipeline, which has a capacity of 4bn cubic feet (113mn cubic metres) per day and federal regulatory approval in place, would be included in the first phase of construction. Tel- lurian said in its presentation that it would defer the Permian Global Access and Haynesville Global Access pipelines, which have a planned capacity of 2 bcf (57 mcm) per day each. The
deferred pipelines are estimated to cost $4.2bn and $1.4bn respectively.
The company did not mention the fourth proposed pipeline, known as the Delhi Connec- tor, which would also have a capacity of 2 bcf per day and is estimated to cost $1.4bn. However, the comments about the Driftwood pipeline being the only one to go ahead under the first phase imply that Delhi Connector has also been deferred.
The overall cost of Phase 1 of Driftwood is now estimated at $16.8bn, with the liquefaction terminal accounting for $10.6bn of this. The total cost of the project had previously been estimated at $27.5bn.
A final investment decision (FID) on Drift- wood is currently delayed until 2021, as Tellurian continues to court potential investors. The com- pany recently revived a memorandum of under- standing (MoU) with India’s Petronet, which had expired in May without the two firms finalising a definitive agreement on the purchase of up to 5mn tpy of LNG from Driftwood. The renewal reportedly gives the companies until the end of December to finalise the deal.™
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