Page 8 - GLNG Week 43 2021
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GLNG AMERICAS GLNG
Shell hopes to sign PSC for
Manatee gas field soon
PROJECTS & ROYAL Dutch Shell is on track to sign a produc- Manatee, which holds about 2.7 trillion cubic
COMPANIES tion-sharing contract (PSC) with Trinidad and feet (76.46bn cubic metres) of gas, was expected
Tobago for Manatee, an offshore natural gas field. to improve gas supplies. The new field is likely
Shell confirmed last week that it had struck to be “the single largest new gas production
a deal with authorities in Port of Spain on the [stream] in Trinidad and Tobago for decades,”
parameters of the PSC. “We are pleased to have he was quoted as saying by Argus Media.
reached agreement ... on terms to enable the The Manatee field is set to begin production
development of the Manatee area,” the Anglo- in about four years, according to Trinidad and
Dutch major told Argus Media. “We look for- Tobago’s Energy Ministry. It will yield about
ward to signing the PSC in the coming weeks.” 300mn cubic feet (8.5mn cubic metres) per day
The company did not say when it expected to of gas in the initial phase of development, rising
finalise the deal, but it did state that the project eventually to a peak of 700 mmcf (19.8 mcm) per
would help secure adequate gas supplies for Trin- day.
idad and Tobago’s domestic market, as well as the Commercial development “could start as
Atlantic LNG plant. “The Manatee development early as 2025, but this depends on the speed at
presents a significant medium-term opportunity which the parties can install infrastructure,” the
for the local energy sector to bolster gas supply Energy Ministry told Argus Media last week.
to both domestic and LNG export markets,” it Manatee is a section of a larger gas field,
commented. Loran-Manatee, that straddles the maritime
Stuart Young, Energy Minister of Trinidad border between Trinidad and Tobago and
and Tobago, also noted that development of Venezuela.
Cheniere, Glencore strike
long-term LNG supply deal
PROJECTS & CHENIERE Energy has struck a long-term Gas. Indeed, Cheniere’s chief commercial officer,
COMPANIES deal to supply LNG to commodity trading and Anatol Feygin, was quoted by the Financial
mining firm Glencore. The deal marks further Times on October 24 as saying his company saw
progress for Cheniere towards a final investment Asia as the “growth driver” for LNG demand
decision (FID) on the Stage 3 expansion of its over the long term, with China “the single big-
Corpus Christi LNG export terminal in Texas. gest piece in that”.
The binding sale and purchase agreement However, the Glencore deal illustrates that
(SPA) between subsidiaries of Cheniere and commodity traders also have a role to play for
The deal takes Glencore covers 800,000 tonnes per year (tpy) producers seeking to contract new volumes.
Cheniere a step closer of LNG, which will be delivered over a 13-year Earlier this year, another US LNG developer,
to sanctioning the period starting in April 2023. The LNG will be Tellurian, signed two separate supply deals
expansion of Corpus purchased on a free-on-board (FOB) basis, with commodity traders Vitol and Gunvor
Christi LNG. and will be indexed to the Henry Hub natural Group, covering 3mn tpy each over a 10-year
gas benchmark. A liquefaction fee will also be period.
included in the purchase price. The Glencore deal’s comparatively small
“This SPA further builds upon Cheniere’s size suggests caution on the part of the trading
commercial momentum, marking another firm. However, even these smaller deals are
important milestone in contracting our LNG building up for Cheniere. In late September
capacity ahead of an FID of Corpus Christi Stage Cheniere said it expected to announce a num-
3, which we expect to occur next year,” stated ber of transactions that would support an FID
Cheniere’s president and CEO, Jack Fusco. on Corpus Christi Stage 3. And in mid-October
The announcement comes in the same the company, along with rival US LNG devel-
month that Cheniere signed a 13-year SPA for oper Venture Global LNG, was reported to be in
900,000 tpy of LNG with China’s ENN Natural “advanced” talks with various Chinese buyers.
P8 www. NEWSBASE .com Week 43 29•October•2021
