Page 16 - GLNG Week 49
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GLNG ASIA GLNG
Gunvor to supply Vietnamese
LNG-to-power project
PROJECTS & COMMODITY trader Gunvor International commercial operational delivery (COD) slated
COMPANIES and US-based Energy Capital Vietnam have for 2025. The FSRU will handle around 1.5mn
signed a deal that will ensure feedstock supply tonnes per year (tpy) of LNG and will be able to
for another Vietnamese LNG-to-power project. increase this through future development phases.
Gunvor said on December 8 that the two The project joins a growing line of LNG-to-
companies would form a joint venture that power projects that have moved closer to reali-
would trade and ship LNG on ECV’s behalf, sation in recent weeks.
with long-term supplies to come from Gunvor’s General Electric (GE) signed an MoU with
portfolio. Vietnam’s EVN Genco3 in November to develop
The LNG will be used to supply an LNG-to- the Long Son LNG-to-power project, also slated
power project in Binh Thuan Province, which is to start up by 2025, in Ba Ria-Vung Tau Province.
currently being developed by a consortium led GE will be contracted to install the gas turbine
by ECV. ECV chairman and CEO David Lewis technology and certain other equipment.
said the commodity giant would source the LNG PetroVietnam Power and a Vietnamese con-
from the US, thereby helping to improve the pro- struction firm, meanwhile, reportedly signed up
ject’s economics. Japan’s Tokyo Gas and Marubeni to build a sim-
The multi-phase power project will connect ilar project in Quang Ninh Province. The power
via subsea pipeline to an offshore floating storage plant will have a capacity of 1,500 MW.
and regasification unit (FSRU). The consortium Japan’s JERA, ExxonMobil and the city of Hai
aims to reach a final investment decision (FID) Phong signed an MoU to collaborate on another
on the project’s first phase in late 2021, with potential LNG-to-power project in October.
AUSTRAL ASIA
Santos, Mitsubishi strike supply
deal for Barossa project
PROJECTS & AUSTRALIA’S Santos announced on Decem- “The [sale and purchase agreement] delivers a
COMPANIES ber 7 that it had signed a 10-year agreement to firm LNG offtake arrangement which represents
supply LNG from its proposed Barossa project over 80% of Santos’ equity LNG volume from the
to Diamond Gas International, a unit of Japan’s Barossa project at our expected 50% interest level
Mitsubishi. Under the binding agreement, San- following the previously announced sell-down
tos will supply Diamond Gas with 1.5mn tonnes to JERA, while the JKM-indexation provides
per year (tpy) of LNG, whose price will be based portfolio balance to our existing oil-linked LNG
on the Platts Japan Korea Marker (JKM). offtake agreements from [Gladstone LNG] and
Barossa will be used to There is an option to extend the agreement PNG LNG,” he added.
backfill Santos’ Darwin beyond the initial 10-year term. Santos and Mitsubishi also said they had
LNG facility. Santos’ CEO, Kevin Gallagher, said the deal signed a memorandum of understanding
represented the company’s first long-term LNG (MoU) to jointly explore opportunities for car-
sale from one of its major projects. It takes San- bon-neutral LNG from Barossa. These include
tos closer to a final investment decision (FID) on collaborating on opportunities relating to San-
Barossa, which it deferred earlier this year owing tos’ proposed Moomba carbon capture and
to the market downturn but now hopes to reach storage (CCS) project, bilateral agreements for
by the first half of 2021. Barossa, located in the carbon credits and potential future development
Bonaparte Basin offshore Australia’s Northern of zero-emissions hydrogen, they added.
Territory, will be used to backfill Santos’ Darwin The supply deal comes during a period where
LNG facility. long-term supply agreements have become
“Barossa is a globally competitive, low-cost increasingly rare amid low LNG prices and a
brownfield LNG project providing new supply growing number of options available to buyers.
into a tightening LNG market, where JKM- It illustrates that some appetite for striking long-
based pricing is an increasingly deep, liquid and term offtake agreements remains, and comes as a
flexible marker for both sellers and buyers,” Gal- boost to other LNG producers that are still trying
lagher stated. to take their projects to FID.
P16 www. NEWSBASE .com Week 49 11•December•2020
