Page 11 - GLNG Week 09 2022

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Shell, PipeChina sign

terminal use agreement

PROJECTS & SUBSIDIARIES of Shell and China Oil & Gas companies – in late 2021. The contracts will be
COMPANIES Pipeline Network – known as PipeChina – have effective from April.
signed a memorandum of co-operation (MoC) The new deals make Shell the first interna-
and two terminal use agreements. tional oil company (IOC) to sign a terminal
The terminal user agreements with Shell user agreement with PipeChina, which is in
Energy (China) are for two LNG receiving facil- the process of opening up its terminals to third-
ities – Yuedong LNG and Beihai LNG – for this party access. The deals are also seen as illustrat-
year. Under the MoC, the two parties will col- ing the gradual liberalisation of China’s natural
laborate in the use of PipeChina’s LNG receiv- gas industry, and more LNG traders could now
ing terminal slots in the long term, a PipeChina follow Shell in directly bidding for access to the
subsidiary said. country’s LNG terminals.
PipeChina is expected to contribute its PipeChina was formed in 2019 to acquire
domestic terminal operations expertise to the pipelines and LNG terminals from the country’s
partnership, while Shell will provide access state-owned energy giants. It currently oper-
to its international gas portfolio, according ates seven LNG import terminals with a total
to comments made by subsidiary PipeChina receiving capacity of 27.6mn tpy. This accounts
LTMC. for nearly one-third of China’s total LNG receiv-
Last year, Shell struck a deal with QatarEn- ing capacity, according to the company. It is also
ergy – which was then known as Qatar Petro- constructing three additional import terminals
leum – to supply 1mn tonnes per year (tpy) of – Shandong Longkou, Fujian Zhangzhou and
LNG to China over a 10-year period. Shenzhen Diefubei.
Prior to the Shell deals, PipeChina awarded The company anticipates that bringing
LNG receiving terminal slots for a period of these terminals online will benefit more third-
5-20 years to 14 applicants – all of them Chinese party users.™

ADNOC, AG&P sign FSU agreement

for Philippines LNG project

PROJECTS & A unit of Abu Dhabi National Oil Company earlier this month that it was on track to bring
COMPANIES (ADNOC) has signed a charter agreement with PHLNG into service in July. The facility could
Singapore-based Atlantic Gulf & Pacific Interna- be the Philippines’ first LNG import terminal
tional Holdings (AG&P) for use of the former’s and will have an initial regasification capacity
Ish LNG carrier. Under the agreement, the car- of 3mn tonnes per year (tpy). It is set to supply
rier will be used as a floating storage unit (FSU) gas to power plant, industrial and commercial
for the planned Philippines LNG (PHLNG) customers.
import terminal in Batangas Bay. “When the terminal is fully done, there will
ADNOC said in a February 23 statement that be a roughly equal balance between onshore and
the charter agreement is valid for 11 years, with floating storage, and that’s important as well,
the option to extend it by a further four years. because that ensures availability of the terminal
The deal also builds on a previous agreement in the event of a storm for example and because
between the two companies, covering the provi- this is such a critical piece of infrastructure...we
sion of another FSU in India, which was signed have built it to be very resilient,” AG&P’s chair-
in 2021. man and CEO, Joseph Sigelman, told the Philip-
ADNOC Logistics & Services (L&S) will be pine Star in mid-February.
in charge of supply, operations and maintenance Other companies are also developing LNG
of the FSU, while AG&P subsidiary GAS Entec import capacity in the Philippines. Utilities First
will be responsible for converting the LNG car- Gen and Tokyo Gas are developing a floating
rier to FSU operations. storage and regasification unit (FSRU) that is
The announcement comes after AG&P said due to enter service in the second half of 2022.™

Week 09 04•March•2022 www. NEWSBASE .com P11