Page 13 - GLNG Week 38

GLNG AMERICAS GLNG
Enterprise to expand Acadian system
PIPELINES & TRANSPORT
ENTERPRISE Products Partners announced on September 19 that it would expand and extend its Acadian pipeline system. The plan is aimed at delivering growing volumes of natural gas from Lousiana’s Haynesville shale play to the LNG market on the state’s coast.
The move comes shortly after a second export project – Cameron LNG – entered commercial service in Louisiana. Another project, Venture Global LNG’s Calcasieu Pass, is currently under development, with the operator having taken a final investment decision (FID) last month.
“The Haynesville region currently produces approximately 11bn cubic feet [312mn cubic metres] per day of natural gas, which is expected to grow to approximately 14 bcf [396 mcm] per day by 2025,” the CEO of Enterprise’s general partner, Jim Teague, said in a statement. “The expansion and extension of the Acadian system enhances our capability to link supply to some of the most attractive markets in the US.”
The Acadian system includes the Legacy Aca- dian and Haynesville Extension pipelines and comprises roughly 1,300 miles (2,092km) of gas pipelines in total. It links gas supplies in Louisi- ana and offshore in the Gulf of Mexico with local distribution companies, electric utility plants
and industrial customers. These are located pri- marily in the Baton Rouge, New Orleans and Mississippi River corridor area.
The expansion project will include con- struction of a roughly 80-mile (129-km) pipe- line originating near Cheneyville, Louisiana to third-party interconnects near Gillis, Louisiana. The interconnects will include multiple pipelines serving LNG export facilities in South Louisiana and south-east Texas.
As part of the project, Enterprise is also intending to increase capacity on the Acadian Haynesville Extension by adding horsepower at its Mansfield compressor station in De Soto Par- ish. When the expansion and extension project is completed, the Acadian system’s capacity will rise from 1.8 bcf (51 mcm) per day to 2.1 bcf (59 mcm) per day.
Enterprise’s 357-mile Haynesville gather- ing system has a capacity of roughly 1.3 bcf (37 mcm) per day and can treat up to 810mn cubic feet (23 mcm) per day of gas. Enterprise has said the gathering system provides a “significant and reliable” source of supply for the Acadian system.
Enterprise says the expansion project is sup- ported by long-term contracts and is anticipated to enter service in mid-2021.™
KOGAS agrees to buy US LNG from BP
PROJECTS & COMPANIES
STATE-OWNED Korea Gas (KOGAS) has struck a deal to buy 1.58mn tonnes per year (tpy) of US LNG from super-major BP. The deal cov- ers a 15-year period starting in 2025, but BP can opt to extend it for a further three years. South Korea’s Ministry of Trade, Industry and Energy estimates that if the deal is expanded to cover 18 years, it will be worth $9.61bn.
The LNG will either be delivered from Free- port LNG, which recently started production, or Calcasieu Pass, which is due to enter service in 2022.
South Korea is the third-largest importer of LNG globally and the top importer of US LNG. The country also buys more LNG from Qatar and Australia than it does from the US. KOGAS currently imports 35-40mn tpy.
Imports from the US are on the rise. Customs data show that in the first eight months of 2019 South Korea imported 4.82mn tonnes of LNG from the US, marking a 5.5% increase from 4.57mn tonnes imported during the first eight months of 2018. Imports from the US accounted for 18% of the country’s total LNG imports over
the first eight months of this year.
KOGAS has a 20-year supply deal with US
LNG exporter Cheniere Energy that started in 2017. The South Korean company currently imports 2.8mn tpy of LNG from Cheniere’s Sabine Pass terminal in Louisiana, though it is authorised to buy up to 3.5mn tpy under the deal.
The sale and purchase agreement (SPA) with BP is the first long-term contract KOGAS has signed since 2012. It comes as South Korea attempts to diversify its LNG supply sources beyond the Middle East and South-East Asia, which will lead to it buying more LNG from the US and Russia.
KOGAS is benefitting from low LNG prices, and said the price of the deal was around 70% of that for its existing contracts.
BP often secures offtake from liquefaction plants with the aim of selling that supply on to other buyers. The super-major previously signed similar end-user agreements with Japan’s Kansai Electric Power Co. (KEPCO) in 2015 and Thai- land’s PTT in 2016.™
ASIA
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