Page 13 - GLNG Week 27 2021

GLNG ASIA GLNG

Petronas, CNOOC signed $7bn LNG supply deal

PROJECTS & MALAYSIA’S state-owned Petronas and state- Petronas vice-president of LNG marketing
COMPANIES owned China National Offshore Oil Corp. and trading, Shamsairi M Ibrahim, said this
(CNOOC) have signed a $7bn, 10-year liquefied week that the deal with CNOOC reflected the
natural gas (LNG) supply deal. “markets’ receptiveness and recognition of
Under the deal, which Petronas announced AECO indexed LNG into the world’s largest
on July 7, Petronas LNG Ltd (PLL) will sup- LNG market”.
ply 2.2mn tonnes per year (tpy) of the fuel to Petronas said the agreement also reflected its
CNOOC Gas and Power Trading & Marketing. own commitment to ensure security of supply
The Malaysian state major said the term agree- through an “established transparent and stable
ment, which also includes supply from LNG Can- price index such as AECO in the LNG market”.
ada once the facility becomes operational, was The Malaysian major company said that once
indexed to a combination of the Brent and Alberta the LNG Canada project, which is led by Royal
Energy Company (AECO) indices. LNG Canada is Dutch Shell with a 40% share, while Petronas
slated to begin exporting cargoes by 2024. owns 25%, came online it would pave the way for
AECO is a leading price benchmark for it to supply low greenhouse gas (GHG) emission
natural gas in Canada, with Petronas having LNG to key Asian demand markets.
described it in May as “transparent”, owing both The CAD40bn ($31.89bn) project is part of
to its real-time trading as well as its high liquid- the Canadian government’s efforts to support
ity, backed by large gas reserves. exports to buyers in Asia as the country seeks to
The Malaysian major sold its first spot ship- reduce its reliance on the US market. LNG Can-
ment of LNG in May using the AECO price ada reached a final investment decision (FID)
index, noting at the time that the cargo had been in October 2018 for the construction of two
sold from its Bintulu LNG plant to a buyer in the 7mn tpy liquefaction plants in Kitimat, British
“Far East” for delivery in August. Columbia.™

EUROPE

TotalEnergies, other French firms

join forces to produce bio-LNG

PROJECTS & FRENCH energy firms TotalEnergies and Engie, work in the South of France. Engie, meanwhile,
COMPANIES along with waste treatment plant operator EveRe will provide LNG terminals operated by its sub-
and shipping and logistics firm CMA CGM, sidiary Elengy in France to store and deliver the
have teamed up to develop bio-LNG in the South bio-LNG for the new project.
of France. “The project fits perfectly into the local eco-
The project would involve using biodegrada- system, benefitting from the particularly well-
ble waste from Marseilles-Provence to produce suited and already existing infrastructure at the
low-carbon shipping fuel, primarily for CMA Grand Port Maritime, including EveRe’s waste
CGM’s growing fleet of LNG-powered cargo car- methanisation unit, Elengy’s LNG terminals ...
riers. The area’s household waste can help reduce TotalEnergies’ bunker vessel ... and CMA CGM’s
air pollutants from shipping, the companies said. fleet of LNG-powered vessels,” CMA CGM
Bio-LNG has been touted as one of the most explained in a statement. “The feasibility study
feasible low-carbon shipping fuels, available for has been launched within the framework of this
ships now while others such as hydrogen and large-scale project, which corresponds with the
ammonia are still at a developmental stage. CMA national drive to promote bio-LNG as defined in
CGM, which expects to have 44 LNG-powered France’s Mobility Orientation Law.”
ships in its fleet by 2025, estimates that bio-LNG LNG is growing rapidly across the world as a
reduces greenhouse gas (GHG) emissions on a low-carbon option for shipping. Shipowners will
well-to-wake basis by 67% versus very low sul- have added incentive to adopt the fuel if the EU
phur fuel oil, while on a tank-to-wake basis, the opts to include shipping in its emissions trading
reduction is 88%. system, as is expected. Further ahead, France and
TotalEnergies is already bunkering CMA other Mediterranean states are deciding whether
CGM’s vessels under a long-term contract using to make the sea an emissions control area (ECA),
its Gas Agility bunkering barge. It plans to bring which would also encourage more switching to
another barge into operation next year that will LNG.™

Week 27 09•July•2021 www. NEWSBASE .com P13