Page 10 - NorthAmOil Week 43

NorthAmOil
NEWS IN BRIEF
NorthAmOil
to return capital to our shareholders.”
CABOT OIL & GAS, October 24, 2019
MIDSTREAM
the fourth quarter of 2019, subject to closing conditions and regulatory approvals.
BMO Capital Markets served as financial advisor to Ares’s fund on this transaction. ARES MANAGEMENT, October 22, 2019
cost compared to projects that require a long- distance pipeline and a large minimum LNG order. Phase 1 of the Qilak LNG 1 Project would have an export capacity of 4 MTPA, with the option for additional capacity to come online in future phases as determined by gas supply and global demand.
Qilak LNG targets delivery of gas to
Asian markets, including Japan, with competitive shipping costs compared to many other sources of LNG in the US and other global LNG projects. Qilak LNG is also in discussions in several Asian countries to engage potential stakeholders in various parts of the Qilak LNG 1 project.
QILAK LNG, October 23, 2019
British Columbia to study
proposal to build LNG ship-
refuellingfacility
The BC government is putting CAD25,000 toward studying the environmental and social impacts of a proposal for an LNG ship- refuelling facility in Delta.
There are currently five BC Ferries and two Seaspan cargo ferries receiving LNG from
the Fortis BC Tilbury facility, but these are refuelled by truck. Under the proposal, the site would be expanded to make it possible for vessels to be topped-up with LNG from another ship, supplied at the facility on the Fraser River.
The ship-to-ship facility would be the first of its kind on the West Coast of North America.
The BC government said in a statement that replacing diesel fuel with LNG can reduce greenhouse gas (GHG) emissions by 20%, but that the reduction is even steeper when using LNG created using power from the province’s electrical grid. This is what Fortis is doing at its Tilbury site.
The plan comes as the global maritime industry is stepping up its use of LNG-fuelled vessels in response to new regulations on
the sulphur content of marine fuel that are coming into force in January 2020.
FERC issues Commonwealth
LNG’s Notice of Schedule
for Environmental Review
Commonwealth LNG is pleased to announce that the US Federal Energy Regulatory Commission (FERC) has issued Notice of Schedule for Environmental Review. The
AresManagement DOWNSTREAM
Corporationsellsownership
interest in Meade Pipeline
to NextEra Energy Partners
Ares Management announced today that a fund managed by its Infrastructure and Power strategy has signed a definitive agreement to sell its 22.5% ownership interest in Meade Pipeline to a subsidiary of NextEra Energy Partners for approximately $286mn.
Meade owns approximately 39% of the Central Penn Line, a FERC-regulated, 185- mile pipeline that originates in Susquehanna County, Pennsylvania, and extends to Lancaster County, Pennsylvania. Central Penn is the greenfield part of the larger Atlantic Sunrise project operated by The Williams Companies through Transcontinental Gas Pipe Line Company (aka Transco). The pipeline became operational in October 2018, and, through interconnection with the larger Transco pipeline system, it has the capacity to deliver up to approximately 1.7bn cubic feet per day of natural gas from the northeastern Marcellus-producing area to markets in the mid-Atlantic and Southeastern regions of the United States. Included in the transaction is a future expansion opportunity that is expected to add an estimated 0.6bn cubic feet per day of natural gas capacity to Central Penn through the addition of compression at new and existing stations.
“Our Meade Pipeline investment demonstrates Ares’ investment strategy
to partner in the development of critical infrastructure assets, bring them online and ultimately create value for our fund investors,” said Keith Derman, Partner of Ares and Co- Head of Ares Infrastructure and Power.
The transaction is expected to close in
QilakLNGexecutesheadsof
agreement with ExxonMobil
for the supply of Alaskan
North Slope natural gas to
new LNG export project
Alaska-based Qilak LNG, a Lloyds Energy company, announced today that a heads of agreement (HoA) has been entered into with ExxonMobil Alaska Production regarding the potential supply of natural gas from
the Point Thomson field to Qilak LNG’s proposed Alaska North Slope liquefied natural gas (LNG) export project. The HOA foresees ExxonMobil providing at least 560mn standard cubic feet per day (mmscfd) of natural gas to Phase 1 of the Qilak LNG
1 Project, based on the design concept
of offshore liquefaction and loading, and icebreaking LNG carriers, to export 4mn tonnes per year (mtpa) of LNG over a 20-year term.
“The Qilak LNG 1 Project would deliver on Alaska’s long-held goal of commercializing North Slope natural gas,” said former Alaska Lt. Governor Mead Treadwell, Chairman and CEO of Qilak LNG. “With this HOA and our recently completed pre-feasibility study, Qilak will now begin extensive feasibility efforts, including preliminary permitting, with a target of reaching Final Investment Decision (FID) by 2021.”
The Qilak LNG 1 Project seeks to capitalise on recent developments in Arctic LNG technology allowing natural gas to be directly exported from the North Slope of Alaska. This concept would significantly reduce the capital
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Week 43 29•October•2019