Page 14 - GLNG Week 25

GLNG AMERICAS GLNG

Coastal GasLink awards contract to Aecon

PIPELINES & AECON has been selected by Coastal GasLink The activity scheduled for July is anticipated
TRANSPORT Pipeline to be the prime contractor for construc- to require up to 1,700 workers, with this number
tion of the Wilde Lake compressor and meter sta- rising to over 2,500 by the end of August.
tions, as well as the Kitimat meter station. These Progress on the pipeline will be closely
facilities are being built as anchor points along watched after opposition by the hereditary
the Coastal GasLink natural gas pipeline in Brit- chiefs of the Wet’suwet’en Nation to construc-
ish Columbia, which will serve the LNG Canada tion of the project through their traditional ter-
terminal – also currently under construction. ritory sparked Canada-wide demonstrations and
The announcement comes as Coastal Gas- blockades in February. The project is supported
Coastal GasLink is Link is preparing to launch its summer construc- by the First Nation’s elected chiefs, and the hered-
preparing to kick off its tion programme, and it has said that it will lay its itary chiefs reached a preliminary agreement
summer construction first pipe in July. with provincial and federal governments on
programme. Construction of the Wilde Lake facilities is how to move forward earlier this year. However,
also due to kick off in July, with work gradually the issues have not been fully resolved, and the
ramping up along the pipeline’s route and peak possibility of further protests along the pipeline’s
activity anticipated in September. The compa- route remains.
nies said that work over the coming weeks would The 416-mile (670-km) pipeline will have an
focus on environmental monitoring and field initial capacity of 2.1bn cubic feet (59.5mn cubic
work, grading, grubbing and workforce accom- metres) per day of gas, carrying it from the Daw-
modation establishment, which will be followed son Creek area of BC to Kitimat on the province’s
by pipe assembly and installation. They noted coast. TC Energy sold a 65% stake in the project
that the first in-field pipeline weld on the project to KKR & Co. and Alberta Investment Manage-
had taken place in Kitimat earlier this month. ment Co. (AIMCo.) last month.™

LNG buyers reportedly set to cancel

40-45 August cargoes from US

PERFORMANCE BUYERS of LNG are reportedly expected to cancellation fee of $3.00-3.50 [per mmBtu, or
cancel 40-45 cargoes scheduled for loading at $82.98-96.81 per 1,000 cubic metres],” a trader
US terminals in August. The number, which had was quoted by Reuters as saying.
yet to be confirmed earlier this week because the LNG producers do not typically disclose
deadline to provide notice to some of the termi- details of cancellations or other commercial
nals involved was June 22, would be roughly in arrangements with their customers, but at least
line with the amount of cargoes cancelled for July 20-30 US LNG cargoes scheduled for June load-
loading. ing are reported to have been cancelled, before
Cheniere Energy is Citing several market sources, Reuters cited the number of cancellations rose for the subse-
thought to be the the slow recovery in Asian gas demand and quent months.
worst-affected by the record-high European gas stocks as reasons for Cheniere Energy is thought to be the
cancellations. the large number of cancellations. The sources worst-affected by the cancellations because it
reportedly added that the premium of gas prices operates two liquefaction terminals and is the
in Europe over the US Henry Hub benchmark US’ largest exporter of LNG. Indeed, Reuters
remained too tight to deliver US cargoes to the cited one of its trade sources as saying that close
continent profitably. to 30 cargoes for August loading were likely to
The comments came as the August contract have been cancelled from Cheniere’s two Gulf
on the Title Transfer Facility (TTF) gas hub in Coast terminals.
the Netherlands was trading around $0.10 per Some of the news service’s sources have sug-
million British thermal units ($2.77 per 1,000 gested, however, that loading a cargo in August
cubic metres) above the Henry Hub price. might make more sense compared with June
“At those levels, European buyers are looking and July, as there was a price contango between
at a loss of over $5.00 [per mmBtu, or $138.30 per August and forward months, with shipping
1,000 cubic metres] compared with just paying a rates low.™

P14 www. NEWSBASE .com Week 25 26•June•2020