Page 10 - GLNG Week 07 2021

GLNG AMERICAS GLNG

Cheniere requests permission to

bring Corpus Christi Train 3 online

PROJECTS & CHENIERE Energy has asked the US Federal reach the Sabine Pass facility. Other LNG termi-
COMPANIES Energy Regulatory Commission (FERC) for nals on the Gulf Coast were also affected by the
permission to bring the third train at the Cor- fog.
pus Christi LNG export terminal in Texas into Conditions were normalising from February
service. 11, with the Sabine-Neches Waterway re-open-
The train has already been operating in test ing that day, only for the Gulf Coast to run into
mode for several months, and the commission- further problems because of below-freezing
ing cargo was loaded in December. In its filing temperatures in Texas and Louisiana that have
last week, Cheniere asked the FERC to approve caused major disruption in the region.
its request as soon as possible, and no later than Following a disaster declaration in Texas, the
March 12. Freeport LNG plant on the state’s coast delayed
The first train at Corpus Christi entered ser- and cancelled the planned loading of several
vice in March 2019, with Train 2 following in cargoes over the coming weeks. The move came
September 2019. Each train at the facility has the following a request from Texas Governor Greg
capacity to produce 5mn tonnes per year (tpy) Abbott, in an effort to minimise consumption of
of LNG. natural gas and power as the state struggles with
Cheniere is the first LNG exporter in the shortages of both.
Lower 48 US states, as well as the largest. Also Cheniere also said it was voluntarily cutting
over the past week, the company was experi- gas and electricity consumption in an effort to
encing disruptions to loadings at its Sabine Pass help ease pressure on the Texas power grid.
LNG terminal in Louisiana as a result of heavy Data from BloombergNEF showed this
fog in the region. The fog led to the temporary week that gas flows to US LNG export facil-
suspension of pilot service last week along the ities had dropped to their lowest level since
Sabine-Neches Waterway, which vessels use to early September.™
ASIA

India’s GAIL to sell all US LNG

imports locally from 2023

PROJECTS & GAIL (India) has unveiled plans to stop selling LNG in foreign markets except for any arbitrage
COMPANIES the LNG it sources from the US in international opportunity,” he said, adding crude prices reach-
markets, instead selling it locally from 2023. This ing $60 per barrel had made GAIL’s Henry Hub-
comes as India’s domestic demand for gas rises linked US LNG affordable for Indian customers.
with the commissioning of new fertiliser plants. Demand from Indian fertiliser plants is set to
GAIL buys roughly 5.8mn tonnes per year rise this year and next. By March, the Ramagun-
(tpy) of LNG from the US. According to com- dam fertiliser plant in southern India is expected
ments made by GAIL’s executive director, Rajeev to reach full capacity, requiring 750,000 tpy of
Singhal, at an analyst conference, the company LNG. This will be followed by the commission-
sold 2.5mn tonnes of its US supplies in global ing of fertiliser plants at Durgapur in eastern
markets last year. India and Gorakhpur in the north later this year,
These sales come as a result of time and desti- with these plants respectively requiring about
nation swap deals for some of the volumes GAIL 1.25mn tpy and 750,000 tpy of LNG. And next
buys, struck in an effort to cut the landed cost year, two more plants at Sindri and Barauni in
for Indian customers and trade the remainder in eastern India are due to come online next year,
overseas markets. each requiring 750,000 tpy of LNG according to
The reduction in volumes traded in overseas Singhal.
markets is expected to be gradual, with Singhal GAIL has contracts for procuring LNG vol-
saying the company hopes to trade less than 2mn umes from the US under two long-term offtake
tonnes of its US volumes this year, and poten- agreements. A new LNG carrier chartered by the
tially around 1mn tonnes in 2022. company, the GAIL BHUWAN, was named ear-
“From 2023 we will not be selling our US lier this month in an online ceremony.™

P10 www. NEWSBASE .com Week 07 19•February•2021