Page 11 - NorthAmOil Week 20 2021

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Woodside to exit Kitimat LNG

BRITISH AUSTRALIA’S Woodside Energy announced new source of LNG to supply Asian markets in
COLUMBIA this week that it would exit its 50% non-operated the latter part of this decade. However, we have
interest in the proposed Kitimat LNG project on decided to prioritise the allocation of capital
Canada’s West Coast. to opportunities that will deliver nearer-term
The company will either sell or wind up and shareholder value.”
restore the assets, leases and agreements cover- Woodside said the opportunities O’Neill
ing both the LNG terminal’s site in Bish Cove, was referring to were located in Australia and
British Columbia, and the 480-km Pacific Trail Senegal.
pipeline route. The company expects its 2021 net profit after
This comes roughly two months after oper- tax to take a hit of roughly $40-60mn as a result
ator Chevron said it was ceasing all funding of costs associated with its exit from Kitimat.
for feasibility work on Kitimat LNG. Chevron However, O’Neill said Woodside would retain
had also been trying to sell its 50% stake in the an upstream position in BC’s Liard Basin, which
project, but no buyer has emerged. Indeed, would provide it with a low-cost option to inves-
Woodside had previously tried to sell down its tigate potential future natural gas, ammonia and
Kitimat stake, with no success, but had said in hydrogen opportunities in the province.
March that it had not yet given up on moving the Woodside’s decision represents a blow to
project forward. Canada’s LNG ambitions, even as construction
“Following Chevron’s decision to exit KLNG continues on nearby LNG Canada. Meanwhile,
and subsequent decision in March 2021 to cease two smaller projects are also inching forward.
funding further feasibility work, Woodside Earlier this month, Woodfibre LNG said it had it
undertook a comprehensive review of our signed a second agreement to sell LNG from its
options for the project and our wider develop- proposed 2.1mn tonne per year (tpy) plant to BP.
ment portfolio,” said Woodside’s acting CEO, And Pieridae Energy is targeting a final invest-
Meg O’Neill, in a May 18 statement. “The Kit- ment decision (FID) on its 10mn tpy Goldboro
imat LNG proposal was designed to develop a LNG facility in Nova Scotia by the end of June.™

HEP to expand Port Arthur terminal to

support renewable diesel project

TEXAS HOWARD Energy Partners (HEP) announced provide this service, it will build 575,000 barrels
last week that it would “significantly” expand of tank storage, three pipelines and associated
its Port Arthur terminal facilities in Texas. The connections to Valero’s Port Arthur refinery. It
expansion will be aimed at supporting a renewa- will also build 7 miles (11 km) of railway track
ble diesel production project being developed by and associated rail loading and unloading facil-
Diamond Green Diesel (DGD), a 50:50 joint ven- ities, truck unloading facilities, and a deepwater
ture between refiner Valero Energy and organic dock capable of handling Panamax-class vessels.
ingredient producer Darling Ingredients. The new facilities are being designed to han-
DGD’s renewable diesel facility will be dle multiple products and have additional capac-
located at Valero’s Port Arthur refinery and will ity for third-party shippers, HEP said. Once the
have the capacity to produce 470mn US gallons expansion is in service, HEP said its Port Arthur
(1.8bn litres) per year. The plant is targeted for facility would consist of 1.9mn barrels of refined
start-up in the second half of 2023, and HEP is product storage capacity, 16 miles (26 km) of
aiming to have the in-service date for its Port railway track with unit train and manifest service
Arthur expansion coincide with this. from two railway operators, three barge docks,
HEP said in a May 13 statement that it had two ship docks and pipeline connectivity to local
executed long-term agreements with DGD, and refiners and refined product distribution hubs.
that engineering, permitting and construction This will mark an increase from the current
on its Port Arthur expansion had now begun. 1.3mn barrels of storage at the facility.
The company has agreed to provide DGD The project illustrates how Gulf Coast exports
with logistics services for renewable diesel continue to grow, while at the same time a shift
feedstock and the finished product. In order to towards greener forms of energy is underway.™

Week 20 20•May•2021 www. NEWSBASE .com P11