Page 9 - NorthAmOil Week 36 2022

NorthAmOil PROJECTS & COMPANIES NorthAmOil

EPA denies Cheniere request for

exemption from pollution rule

US GULF COAST THE US Environmental Protection Agency that it would be particularly hard to retrofit, with
(EPA) said this week that it had denied a request the engineering and installation of pollution
from LNG producer Cheniere Energy to exempt controls potentially taking years.
turbines at its two liquefaction terminals from a The company is the US’ largest exporter of
pollution rule. LNG, accounting for roughly 50% of all volumes
Owners and operators of gas turbines had shipped. It is trying to position itself at the fore-
a deadline of September 5 to comply with front of US efforts to send more of the super-
an amended rule under the National Emis- chilled fuel to Europe to help the continent phase
sion Standards for Hazardous Air Pollutants out imports of Russian gas.
(NESHAP). The rule imposes curbs on emis- However, once the EPA’s decision was
sions of known carcinogens such as formalde- announced, a Cheniere spokesperson, Eben
hyde and benzene from stationary combustion Burnham-Snyder, was quoted by media as saying
turbines, like those used in LNG terminals. that while it would likely result in “unwarranted
Cheniere had asked the administration of expenditures”, it was not expected to limit LNG
US President Joe Biden to exempt a particular exports or otherwise disrupt operations.
type of turbine that it has installed at its LNG “While we strongly disagree with EPA’s deci-
terminals from the NESHAP limits, arguing sion, we will work with our state and federal
that compliance with the amended rule could regulators to develop solutions that ensure com-
result in shipments of its LNG being reduced for pliance,” he was quoted as saying.
an extended period. It said the model of turbine Cheniere was the only LNG producer to ask
was the most suitable for withstanding the kind the EPA for an exemption from the amended
of storms the US Gulf Coast is vulnerable to, and rule.™

Woodside signs binding supply

agreements with Commonwealth LNG

US-GLOBAL A Woodside Energy subsidiary, Woodside combined capacity of 8.4mn tpy. Thanks to the
Energy Trading Singapore, has converted modular approach, infrastructure for the facil-
its non-binding heads of agreement (HoA) ity would mostly be constructed offsite, which
deals with the US’ Commonwealth LNG into the company says would minimise the cost and
two binding sale and purchase agreements timescale involved.
(SPAs). “Our modular construction approach allows
The SPAs cover the supply of up to 2.5mn Commonwealth LNG to provide greater cost
tonnes per year (tpy) of LNG over a 20-year and schedule certainty to customers as we
period from Commonwealth’s proposed export deliver affordable, reliable, cleaner energy to
terminal in Louisiana, on the US Gulf Coast. meet global demands,” stated Commonwealth’s
The main terms set out in the HoA, which was president and CEO, Farhad Ahrabi.
announced in January 2022, remain unchanged Commonwealth LNG was originally target-
in the SPAs, Woodside said. The volume agreed ing 2020 for an FID, but the global collapse in
is at the upper end of the amount the two com- natural gas demand and prices following the
panies had first agreed to under the HoA, with onset of the coronavirus (COVID-19) pandemic
Woodside exercising the option to buy 2.5mn caused the project to be delayed. Demand has
tpy rather than 2.0mn tpy. since picked up significantly, however, reviving
First LNG deliveries under the SPAs are antic- the prospects for a new crop of proposed LNG
ipated in mid-2026. However, the deals are still export projects on the US Gulf Coast.
conditional on certain milestones being reached, Woodside also has a supply agreement in
including a final investment decision (FID) on place with another US LNG producer, Cheniere
the Commonwealth LNG export terminal. Energy, and the latest deal suggests that the com-
The terminal would be built using a modular pany is keen to further diversify its sources of
approach, and have six liquefaction trains with a LNG supply.™

Week 36 08•September•2022 www. NEWSBASE .com P9