Page 9 - GLNG Week 33

GLNG COMMENTARY GLNG
solutions to projects such as Calcasieu Pass, BHGE is continuing to help unlock the poten- tial of natural gas. We are proud to be a strategic partner for such an innovative and important project for the US LNG market,” BHGE’s pres- ident and CEO of turbomachinery and process solutions, Rod Christie, said in a statement. “As global energy demand continues to grow and with it an increasing focus on energy transition in the coming decades, we will see more adop- tion of gas solutions in the energy mix, making the availability, flexibility and cost of natural gas important factors in shaping the future of energy.”
BHGE said the modularised system o ered a “plug and play” approach, which allows for faster installation and lower construction and operational costs. The services provider will manufacture, assemble, test and transport the modules from its facilities in Italy. BHGE will also supply a power island system (PIS) that will include power generation and electrical distribu- tion equipment for Calcasieu Pass. It anticipates equipment deliveries beginning in the second half of 2020.
Venture Global LNG and BHGE have a master supply agreement in place for a total of 60mn tpy of production capacity. e deal was initially struck with GE Oil & Gas, a division of the General Electric conglomerate, before the latter took over Baker Hughes. It was subse- quently expanded to cover 60mn tpy of capacity in March this year. Venture Global has proposed two further – and larger – LNG export plants in Louisiana. e Plaquemines and Delta LNG
facilities each have a planned capacity of 20mn tpy. BHGE can be expected to supply liquefac- tion technology for both if they also reach FID.
Racing ahead
e way forward looks relatively clear for Calca- sieu Pass LNG, which has received all necessary permits, including authorisation to export gas to countries with which the US does not have a free trade agreement (FTA). e project also has 20-year LNG sale and purchase agreements (SPAs) in place with Royal Dutch Shell, BP, Italy’s Edison, Portugal’s Galp Energia, Spain’s Repsol and Poland’s PGNiG.
Venture Global’s FID is a step forward for the second wave of US LNG developments. It is the second FID on a new project to be announced this year a er ExxonMobil and Qatar Petroleum (QP) said in February that they would proceed with Golden Pass LNG. Some existing terminals are undergoing expansions, and a number of other propos- als are slowly moving forward as well, with a steady stream of regulatory approvals being announced in recent months. But other developers of new projects may nd it harder than Venture Global to secure nancing and o ake agreements. e US’ trade war with China continues to restrict the ow of ris- ing US LNG exports to a market where gas demand is booming. And concerns have been expressed about the economics of certain other plants. Nonetheless, Venture Global’s FID illustrates that it is still possible to secure o akers and nancing.™
AFRICA
Equatorial Guinea to build regas plant
PROJECTS & COMPANIES
Akonikien LNG
will enable the transportation and storage of LNG from Equatorial Guinea’s LNG plant on Bioko Island to the mainland.
AN LNG regasi cation and storage plant is set to be built in Equatorial Guinea – the rst such project in West Africa – as the country advances its plans to develop gas-to-power infrastructure.
The facility will be located at the Port of Akonikien, and will enable the transportation and storage of LNG from Equatorial Guinea’s LNG plant at the Punta Europa gas complex on Bioko Island to Akonikien on the mainland. From the regasi cation terminal, gas will be dis- tributed to smaller-scale power plants, as well as being exported to neighbouring countries.
e plant will have storage capacity of 14,000 cubic metres, with 12 cryogenic bullet tanks, a truck-loading station and 12km of 10-inch (254-mm) gas and diesel pipelines. e tanks are reportedly the largest factory-built cryo- genic bullet tanks in the world, with a capacity of 1,228 cubic metres. ey are being constructed by US-based Corban Energy Group.
Equatorial Guinea has chosen local engineer- ing contractor Elite Construcciones to lead con- struction of the terminal. Two German rms,
ESC Engineers and Noordtec, are working with Elite Construcciones on the design, develop- ment and construction of Akonikien LNG.
e project is the rst gas-to-power develop- ment within Equatorial Guinea’s LNG2Africa initiative. Other projects are anticipated to fol- low, according to Equatorial Guinea’s Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima.
“LNG2Africa has a clear objective of devel- oping small-scale LNG projects to supply gas to countries and regions with limited infrastruc- ture,” said Obiang Lima this week, when the project was announced.
Earlier this year, Obiang Lima said the coun- try’s government would promote development of Noble Energy’s Alen gas and condensate eld o Bioko Island to justify construction of a mega- hub project for the Rio Muni Basin. e scheme would be fed by production from elds in Equa- torial Guinea, and later Cameroon. e Alen gas project was sanctioned by Noble in April and is expected to enter production in 2021.™
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