Page 10 - AsianOil Week 14 2022

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China’s GDG in long-term supply deal

with MPL’s Puerto Libertad LNG terminal

PROJECTS & CHINA’S Guangzhou Development Group to take delivery of 1mn tpy of LNG each from the
COMPANIES (GDG) reported on April 1 that it had signed a first and second phases of the facility.
long-term supply agreement for LNG from an The Houston-based company has said previ-
export terminal that Houston-based MPL plans ously that it wants to build the Puerto Libertad
to build at Puerto Libertad in Mexico’s Sonora LNG plant in three stages. The first stage would
State. involve the construction of a 4.7mn tpy pro-
In a statement, GDG explained that its sub- duction train, plus a storage tank and a marine
sidiary Guangzhou Development Natural Gas loading jetty, while the second would involve the
Trading had agreed to buy 2mn tonnes per year construction of another production train of the
(tpy) of LNG over a period of 20 years from Mex- same size and another storage facility. The third,
ico Pacific LNG Markets, a subsidiary of MPL, meanwhile, calls for the construction of a third
which is in turn controlled by the US investment production train of the same size.
firm AVAIO Capital. The deal calls for shipments MPL hopes to take a final investment deci-
to begin once the MPL subsidiary’s terminal sion (FID) on the first two stages of the project
starts commercial operations, the statement said. in the second half of 2022, GDG said in its April
The Chinese company did not reveal full 1 statement. This may put the company on track
details of its agreement with MPL. However, to begin production and exports in 2026, rather
it did say that the price of future LNG supplies than in 2025 as previously anticipated, LNG
would be linked to the Henry Hub index and Prime commented earlier this week.
that the contract would take effect once MPL If built, the Puerto Libertad LNG plant will
had secured financing and begun construction use gas imported into Mexico via pipeline from
work on its plant. Additionally, it said it intended fields in the US Permian basin as feedstock.™

OCEANIA

Santos’ Dorado moves a step closer to FID

PROJECTS & THE Dorado project, which is being developed Permit WA-437-P, Carnarvon said.
COMPANIES by Santos and Carnarvon Energy offshore West- Once the licence is granted, the Dorado
ern Australia, has taken what has been described joint venture partners will be able to produce
as a significant step towards a final investment oil from the licence area, as well as from other
decision (FID). areas nearby. Carnarvon noted that this meant
Australian Minister for Resources and Water nearby resources, such as the recently discov-
Keith Pitt said on April 5 that Santos and Car- ered Pavo field, could be tied back to Dorado for
narvon had accepted a production licence cov- production.
ering Dorado, which is located in the offshore This was echoed by Santos’ managing direc-
Bedout sub-basin. tor and CEO, Kevin Gallagher, who was quoted
Dorado would be “At a time when Australia needs energy in the Australian government’s announcement
developed using an security more than ever, it’s great to see a new about the joint venture partners’ production
FPSO. Australian oil project, discovered by Australian licence. Gallagher said Pavo, which was discov-
companies Santos and Carnarvon Energy, mov- ered last month, had the potential to “add further
ing closer to being production ready,” Pitt stated. material value” to the Dorado development. He
In a separate statement, Carnarvon said the also cited the projects’ potential to bolster Aus-
production licence represented the key regu- tralia’s energy security against the backdrop of
latory approval supporting the sanctioning increased volatility in global oil and gas markets.
of Dorado. The Australian National Offshore The Dorado discovery represents the most
Petroleum Titles Administrator (NOPTA) is significant new oil play offshore Western Aus-
now due to finalise the granting of the produc- tralia in the last decade, according to Pitt. The
tion licence for the blocks containing Dorado, field will be developed using a floating produc-
which were previously part of Exploration tion, storage and offloading (FPSO) vessel.™

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