Page 12 - NorthAmOil Week 13 2021

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Cheniere receives go-ahead for

Corpus Christi Train 3 start-up

TEXAS US LNG exporter Cheniere Energy has received executives said they would need to be sure of
permission from the US Federal Energy Regula- attractive returns and a certain amount of con-
tory Commission (FERC) to bring the third train tracted volumes – both for the expansion project
at its Corpus Christi LNG export terminal on the and the company’s entire portfolio – before mak-
Texas Gulf Coast into commercial service. ing a final investment decision (FID). That said,
The train has already been operating in test Cheniere’s CEO, Jack Fusco, said he expected
mode for months. Stage 3 at Corpus Christi to be one of the most
Each train at the facility – which is the only economic US LNG projects to date, suggesting
greenfield liquefaction terminal to be built in the he is confident that the project will be competi-
US to date and did not involve an existing import tive enough to go ahead.
plant being converted to exports – has a capacity Houston-based Cheniere remains the largest
of 5mn tonnes per year (tpy). However, the com- US exporter of LNG, having been the first in the
pany is able to boost each train’s capacity through Lower 48 states to begin exports of the super-
debottlenecking. chilled fuel in 2016.
Cheniere has also proposed a new phase of The company confirmed this week that it
expansion at Corpus Christi that would involve has reached substantial completion at Corpus
up to seven midscale liquefaction trains with a Christi Train 3. Engineering, procurement and
combined capacity of around 10mn tpy. This construction (EPC) contractor Bechtel has now
would mark a shift away from Cheniere’s model handed over control of Train 3 to Cheniere.
at both the Sabine Pass and Corpus Christi This comes as Cheniere continues to work
terminals. The coronavirus (COVID-19) pan- on Train 6 at the Sabine Pass export terminal
demic delayed the company’s plans to sanction in Louisiana. Indeed, Fusco said recently that
the Stage 3 expansion. During its recent earn- he expects the sixth train at Sabine Pass to enter
ings call for the fourth quarter of 2020, Cheniere service by the end of 2021.™
ENERGY TRANSITION

Callon sets new ESG targets

TEXAS US independent producer Callon Petroleum has metrics, while the weighting for financial metrics
unveiled a new set of environmental, social and has been increased to 65%. This includes metrics
governance (ESG) targets. It is one of a growing such as leverage, cash return on capital invested,
number of US oil and gas companies to do so. total corporate cash margin and relative total
The company also announced that it would shareholder return compared to a broader
factor its ESG targets into its annual incentive energy index, Callon said.
compensation programme for 2021. A new quantitative ESG category has also
Under the new targets, Callon will aim to been introduced, and will be weighted at 15%. It
reduce its greenhouse gas (GHG) emissions will focus on flaring, safety and spills and a qual-
intensity by 40-50% by 2025 compared with itative assessment tied to “sustained progress”
2019 levels. It will also target the elimination towards the company’s GHG reduction targets.
of all routine field gas flaring, and a reduction “Our corporate goals of meaningful free cash
in total gas flared to below 2% of its output by flow generation, absolute debt reduction and
2025. returns on capital are reflected in the compen-
The new executive compensation pro- sation criteria and provide a direct link between
gramme is aimed at better aligning with inves- pay and financial performance that will contrib-
tor priorities, the company said. It includes a ute to improving investor returns,” commented
broad reduction in overall compensation, led by Callon’s chairman of the board of directors,
a 17.5% cut in target long-term incentive (LTI) Richard Flury.
value for the CEO. This lowers its total target Callon’s president and CEO, Joe Gatto, noted
compensation by 12.5%, Callon said, adding that the new flaring and GHG emissions reduc-
that there was also a 12.5% reduction in annual tion targets build on the momentum the com-
compensation for directors. pany created in 2020.
The 2021 compensation programme focuses Callon operates in the Permian Basin and
on pay-for-performance, according to the com- Eagle Ford shale, in West and South Texas
pany, with an 80% weighting on quantitative respectively.™

P12 www. NEWSBASE .com Week 13 01•April•2021