Page 10 - GLNG Week 46 2021

GLNG AMERICAS GLNG

Freeport LNG

announces CCS

plan amid news

of stake sale

PROJECTS & FREEPORT LNG Development announced this
COMPANIES week that it had executed a letter of intent (LoI)
with Talos Energy to jointly develop a carbon
capture and storage (CCS) facility to serve the
Freeport liquefaction terminal on the Texas Gulf
Coast. The announcement about the FLNG CCS
project came a day after Global Infrastructure
Partners (GIP) said that it was selling its 25.7%
stake in Freeport to Japan’s JERA for $2.5bn.
The FLNG CCS project would use a nearby
Freeport-owned geological sequestration site
with up to a 30-year injection term to perma-
nently sequester carbon dioxide (CO2) from
the liquefaction project. The scheme is subject
to the finalisation of definitive agreements, but if
it proceeds as planned, the companies anticipate
first CO2 injection occurring by the end of 2024. would expand its involvement in the project to
Talos will be the project manager and oper- cover all three trains at the plant, which produce
ator and will be joined by its partner, Storegga a combined 15mn tpy of LNG. JERA added that
Geotechnologies. it would work with the consortium that operates
The announcement comes as a growing num- Freeport to advance new LNG schemes, includ-
ber of existing and proposed LNG plants on ing a potential fourth train at the terminal.
the US Gulf Coast are starting to look to CCS The transaction comes as buyers in Europe
to decarbonise their operations. In the neigh- and Asia compete to secure new LNG volumes
bouring state of Louisiana, Venture Global LNG amid a supply crunch that threatens to worsen
is planning to build a CCS facility to capture if temperatures this winter are colder than
emissions from its newly built Calcasieu Pass normal.
GIP, for its part, terminal, as well as its proposed Plaquemines “Securing a stable supply of LNG is becom-
plant. And in Texas, NextDecade is proposing ing increasingly important as we witness sharp
is turning its to capture around 90% of the emissions from its price increases around the world,” stated JERA
attention to LNG planned Rio Grande LNG terminal, primarily Americas’ CEO, Steven Winn. “We will lever-
using CCS. Rio Grande has further legal and age the knowledge and expertise accumulated
developments regulatory hurdles to overcome before it can be through JERA’s global LNG value chain business
built, though, so the race is on between Freeport and power plant operations as we work together
elsewhere in the and Venture Global to become the first US LNG with Freeport on its various businesses to meet
operator to bring a CCS facility online on the the growing demand for electricity in Asian
world. Gulf Coast. countries and help facilitate the transition from
In June, Venture Global’s CEO, Michael coal to lower-emission transitional fuel LNG.”
Sabel, said his company could proceed with GIP, for its part, is turning its attention to
construction of its CCS facility as soon as it has LNG developments elsewhere in the world. A
the required permits, with no new technology day after the Freeport stake sale was announced,
or outside funding required. the private equity firm said it had agreed to buy
a 49% stake in the Pluto Train 2 joint venture
Stakes change hands in Australia from Woodside Petroleum. The
JERA is the world’s largest buyer of LNG and Pluto LNG expansion, which is estimated to
already owns a 25% interest in Train 1 at Freeport cost $5.6bn, will underpin the Scarborough pro-
and purchases and transports 2.32mn tonnes ject. GIP said in a statement that in addition to
per year (tpy) of LNG for use in Japan and other shouldering 49% of the capital expenditures for
countries that import the fuel. It said in a state- Pluto Train 2, it would fund roughly $835mn of
ment that its acquisition of the Freeport stake additional construction spending.™

P10 www. NEWSBASE .com Week 46 19•November•2021