Page 8 - AsianOil Week 30 2022

AsianOil SOUTHEAST ASIA AsianOil

Cheniere signs LNG supply

deal with Thailand’s PTT

PROJECTS & US LNG producer Cheniere Energy announced decision (FID) on the Stage 3 expansion of the
COMPANIES this week that it had struck a deal to supply the facility last month, and has recently started sign-
super-chilled fuel to a unit of Thailand’s PTT. ing SPAs that are conditional at least in part on
Under the sale and purchase agreement it expanding capacity at Corpus Christi further
(SPA), Cheniere’s Corpus Christi Liquefaction beyond Stage 3.
subsidiary has agreed to supply 1mn tonnes per For PTT, the SPA comes as the company
year (tpy) of LNG to PTT Global LNG (PTTGL) expands its total regasification capacity to 19mn
over a 20-year period starting in 2026. The SPA tpy by the end of 2022.
allows for a combination of free-on-board (FOB) “This is the first direct LNG contract from a
and delivered ex-ship (DES) deliveries, which US LNG producer for PTTGL, and this agree-
Cheniere said represented a further evolution in ment not only reflects the critical need for long-
its commercial offerings, customised to meet the term, reliable LNG supply across the globe, but
specific needs of different customers. also the important role LNG has to play in pow-
The purchase price of the LNG sold under the ering growing economies for decades to come,”
deal will be indexed to the US Henry Hub bench- stated Cheniere’s president and CEO, Jack Fusco.
mark, plus a fixed liquefaction fee. While the The deal is the latest in a series that Cheniere
LNG will come from Cheniere’s Corpus Christi has struck with buyers in Asia recently. Only last
terminal in Texas, the company did not specify week, the company announced a deal to supply
which phase of the facility would be used to pro- 1.8mn tpy to PetroChina International starting
duce the fuel. Cheniere took a final investment in 2026, until 2050.™

EAST ASIA

CNOOC reports commercial

flows from offshore shale well

PERFORMANCE CHINA National Offshore Oil Corp. (CNOOC) that shale reserves tend to be more costly and
has achieved commercial flows of oil and gas challenging to develop.
from an offshore shale well in the South China Shale development has been underway in
Sea. This marks the first successful offshore shale China for some time, but the country was still
well for China. only producing only around 35,000 barrels per
According to a July 28 statement reported by day (bpd) of tight oil – equivalent to less than 1%
Chinese media, CNOOC achieved production of its total crude output – as of late 2021. Most
of 20 cubic metres (126 barrels) per day of oil of its tight oil output comes from the onshore
and 1,589 cubic metres per day of natural gas Ordos and Jungar basins.
from the Weiye-1 well during testing. The well is The Sinopec Economics and Development
located in the south-western trough of the Beibu Research Institute’s head of intelligence and
Gulf Basin – an area the company had been tar- research, Luo Zuoxian, was cited by China
geting in the hope of achieving an offshore shale Daily as saying the discovery would help ensure
breakthrough. CNOOC said the basin could increasing oil and gas output in China over the
hold around 1.2bn tonnes (8.8bn barrels) of pro- long term while contributing to national security
spective tight oil resources. of supply.
The state-owned company intends to treat the “With tremendous shale oil and shale gas
Weiye-1 well as a new starting point for devel- resources, China is the second country to have
oping an offshore shale demonstration project. achieved breakthroughs in the sector after the
The discovery comes as Chinese state-owned United States, and China should attach more
companies step up efforts to tap shale deposits importance to the exploration and exploitation
in response to Beijing’s calls to boost domestic of unconventional oil and gas to further reduce
energy production and improve security of sup- reliance on oil and gas imports,” Luo was quoted
ply. Such efforts are being made despite the fact as saying.™

P8 www. NEWSBASE .com Week 30 29•July•2022