Page 7 - GLNG Week 37

GLNG AMERICAS GLNG
SPEC LNG and partners to offer additional LNG services at FSRU in Cartagena
PROJECTS & COMPANIES
COLOMBIA’S Sociedad Portuaria El Cayao, known as SPEC LNG, has teamed up with three other companies to make additional services available at its LNG import facility in Cartagena.
In a statement, the company said it had finalised a joint development agreement with Avenir LNG (UK), Calamari LNG (Colombia) and Hoegh LNG (Norway). The document states that the parties will provide several new services to customers directly from the Hoegh Grace, the floating storage and regasification unit (FSRU) that Hoegh LNG has deployed offshore Colombia.
SPEC LNG did not divulge full details of the agreement. It did say, though, that the additional services soon to be available in Cartagena would include cooling down conventional LNG tank- ers, as well as reloading small-sized LNG cargoes for the purpose of distribution to other destina- tions in the Caribbean and Latin America.
Jose Castro, the general manager of SPEC LNG, said his company saw the deal as a means
of expanding its operations in the region. “Due to SPEC´s strategic location and capabilities, this collaborative agreement will enable us to play a key role in the development of the LNG industry in Latin America and the Caribbean, including small-scale LNG,” he said.
The Hoegh Grace vessel is capable of regas- ifying LNG at the rate of 500mn cubic feet (14.16mn cubic metres) per day and transport- ing 170,000 cubic metres of LNG. It is connected to SPEC LNG’s import facility, which includes at jetty that can handle LNG tankers, along with onshore infrastructure and a 9.2-km onshore pipeline that serves as a link to Colombia’s nat- ural gas pipeline grid.
SPEC LNG signed a 20-year agreement to use the Hoegh Grace FSRU in 2016. The con- tract includes options that allow the Colombian company to reduce the term of the charter to 15, 10 or five years.
The Colombian company is currently deliver- ing gas to three local thermal power plant (TPP) operators under long-term supply deals.™
Cheniere, EOG strike gas supply agreement
PROJECTS & COMPANIES
The supply agreement will underpin the expansion of Cheniere’s Corpus Christi LNG project.
SUBSIDIARIES of Cheniere Energy have struck long-term gas supply agreements with shale producer EOG Resources to support the LNG exporter’s Corpus Christi liquefaction project. Under the agreements, the subsidiaries – Cor- pus Christi Liquefaction and Cheniere Corpus Christi Liquefaction Stage III – will buy gas from EOG over a 15-year period starting in early 2020. They will initially buy 140,000mn British ther- mal units (3.9mn cubic metres) per day, with the volume rising to 440,000 mmBtu (12.2mn cubic metres).
The LNG associated with 140,000 mmBtu per day of this gas supply, or roughly 850,000 tonnes per year (tpy), will be owned and mar- keted by Cheniere, with EOG receiving a price based on the Platts Japan Korea Marker (JKM) for the feedstock gas. The remaining 300,000 mmBtu (8.3mn cubic metres) per day will be sold by EOG to Cheniere at a price indexed to the Henry Hub benchmark, the companies said in a joint statement.
A portion of the transaction is subject to certain conditions, including regulatory approval and a final investment decision (FID) on Cheniere’s Corpus Christi Stage III project. The Stage III project comprises an expansion of
the Corpus Christi liquefaction terminals that would include up to seven midscale liquefaction trains with a combined production capacity of around 9.5mn tpy. The Stage III project received a positive environmental assessment from the US Federal Energy Regulatory Commission (FERC) in March this year, and Cheniere antici- pates that all remaining regulatory approvals will be in place by the end of 2019.
Corpus Christi LNG consists of two opera- tional trains, each with a capacity of 4.5mn tpy. A third 4.5mn tpy train is under development as part of the project’s second stage, and is expected to be operational in 2021.
The agreement to link some of the gas to LNG spot prices is the second such move by Cheniere, after it struck a similar deal with Apache in June. The EOG deals suggest that producers are increasingly willing to take on LNG price risk.
EOG is the second most active exploration and production firm in Texas behind Exxon- Mobil. While the company is targeting oil in the Permian Basin, it is producing growing volumes of associated natural gas output, and the deal with Cheniere will allow EOG to market some of that gas.™
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