Page 10 - EurOil Week 30

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NEWS IN BRIEF
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“ is rst cargo under our long-term agree- ment is the start of more than two decades of partnership that will bring reliable, clean, and secure energy to Poland,” said Anatol Feygin, Executive Vice President and Chief Commercial O cer for Cheniere. “We are honored to stand with our partners today to welcome this inaugu- ral cargo, which will be followed by many more for years to come.”
PGNiG signed a 24-year agreement with Cheniere Marketing International in November 2018. In 2019-2022, the total volume of supplies will amount to approximately 0.52mn tonnes of LNG, or approximately 0.7bn cubic metres of gas a er regasi cation. In the years 2023-2042, the total import volume will reach approximately 29mn tonnes (about 39 bcm after regasifica- tion) - which means that from 2023, PGNiG will buy approx. 1.45mn tonnes of LNG each year (around 1.95 bcm of gas a er regasi cation).
Deliveries will be based on DES (delivery ex-ship) formula – delivery to the terminal in Swinoujscie is provided by the seller. Earlier, supplies of US LNG were coming to Swinou- jscie as part of spot transactions and as part of a medium-term contract. PGNiG has received seven cargoes of such type so far. In June 2017, the company received the rst ever LNG load from the United States – a spot supply from Cheniere Energy.
PGNiG, July 26 2019
Qatargas delivers first Q-Max LNG cargo to Belgium
QATARGAS delivered the rst cargo of LNG on a Q-Max vessel to Zeebrugge LNG Terminal in Belgium, marking the rst discharge of a Q-Max LNG vessel at this terminal. e cargo, which was loaded at the Ras La an terminal in Qatar on 22nd June 2019, arrived on board the Q-Max vessel Al Dafna on July 22, 2019.
e delivery also celebrates yet another mul- ti-terminal delivery for Qatargas, bringing the total number of multi-port deliveries under- taken by the Company in 2019 to eight deliv- eries. is operation saw the rst LNG parcel discharged in Zeebrugge and a second parcel at the South Hook LNG terminal in the United Kingdom.
Commenting on this, Khalid bin Khalifa Al ani, Qatargas’ chief executive o cer, said: “At Qatargas, we are very much focused on further developing the concept of multi-port deliveries of our LNG cargoes and o er it to our global portfolio of customers. This will provide our customers with exibility and reliability to help
them meet their demand for clean-burning nat- ural gas while enhancing exibility of supply. As the world’s premier LNG Company, we are committed to meet and exceed the expectations of our customers.”
Pascal De Buck, chief executive o cer and managing director of gas infrastructure group Fluxys, the owner and operator of the Zee- brugge LNG terminal, said: “We are particularly pleased at Fluxys with this new milestone in our long-standing cooperation with Qatargas at the Zeebrugge LNG terminal. e Q-Max delivery demonstrates the versatility we o er our custom- ers, with LNG carriers of all types and sizes able to dock at the facility, ample pipe gas take-away capacity for delivery throughout Northwestern Europe and a range of options for downstream small-scale LNG distribution.”
e established practice in the LNG indus- try is to deliver a single cargo of LNG to a single location. Qatargas’ pioneering achievement was made possible by using the largest class of LNG vessel in the world, a Q-Max vessel, which has a cargo carrying capacity of 266,000 cubic metres. Its large capacity allows Q-Max to deliver two full conventional-size cargoes to multiple desti- nations and customers in one voyage.
Qatargas, July 28 2019
EC approves public support
for Croatian LNG terminal at
Krk island
e European Commission has found Croatian plans to support the construction and operation of an LNG terminal at Krk island to be in line with EU State aid rules. e project will contrib- ute to the security and diversi cation of energy supplies without unduly distorting competition. Commissioner Margrethe Vestager, in charge of competition policy, said: “ e new LNG termi- nal in Croatia will increase the security of energy supply and enhance competition, for the bene- t of citizens in the region. We have approved the support measures to be granted by Croatia because they are limited to what is necessary to make the project happen and in line with our State aid rules.”
e measures approved today will support the construction and operation of a floating LNG terminal, consisting of a oating storage and regasi cation unit (FSRU) and the connec- tions to the national gas transmission network. e LNG terminal is designed to transport up to 2.6 billion cubic meters per year (bcm/y) of natural gas into Croatia national transmission
network as from 2021.
e total investment costs to build the ter-
minal amount to €233.6 million. is will be nanced through: a direct equity contribution of €32.2 million from the LNG terminal company shareholders; a contribution of €101.4 million from the Connecting Europe Facility, which is centrally managed by the European Commis- sion, through the Innovation and Networks Executive Agency (INEA); a direct financial contribution of €100 million from the Croatian State budget.
In addition, Croatia will grant a tari com- pensation called ‘security of supply fee’, which is nanced by levies charged by the gas transmis- sion system operator to gas users along with gas transmission tari s, in case revenues from the terminal fees are not su cient to cover operat- ing expenses.
Croatia noti ed the Commission of the €100 million direct nancial contribution, as well as of the security of supply fee. Both support measures involve State aid under EU rules.
e Commission found that: the aid meas- ures are necessary, as the project would not be carried out without them. In this respect, the Commission’s nancial analysis has shown that the revenues originating exclusively from the tari s charged to the users of the LNG terminal would not be enough to recoup the investment costs and ensure a su cient remuneration of the LNG promoter;
The aid measures are proportionate and therefore limited to the minimum necessary, as they will only cover the “funding gap”, that is the di erence between the positive and neg- ative cash- ows over the investment lifetime, discounted to their current value (using the cost of capital).
erefore, the Commission concluded that the measures are in line with EU State aid rules, as they contribute to further key strategic objec- tives of the EU, including diversifying gas supply sources and increasing the EU’s security of gas supply, notably in the Central and South-Eastern regions, without unduly distorting competition. EC, July 31, 2019
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Week 30 01•August•2019