Page 9 - GLNG Week 43 2021
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GLNG ASIA GLNG
Petronas spearheads LNG
projects in Johor, Sabah
PROJECTS & MALAYSIA’S state-run Petronas has called for The official said on October 26 that front-
COMPANIES expressions of interest (EoIs) to conduct a fea- end engineering design (FEED) work for the
sibility study for a new LNG storage tank in the 2mn tonne per year (tpy) facility was slated to
south of Johor State. begin this month. The facility is anticipated to
Pengerang LNG (Two) has invited participa- come on stream by the end of 2026, pending a
tion in a non-binding EoI to assess the feasibility final investment decision (FID) being reached
of a third tank at the LNG Regasification Termi- in 2022.
nal in Pengerang, Petronas said in an October The facility will be moored at Petronas Chem-
28 statement. Petronas Gas owns a 65% stake in icals Fertiliser Sabah’s new jetty extension and
PLNG2. will be fed by fields that are connected to the
Petronas expects the new facility to be com- Sabah-Sarawak Gas Pipeline (SSGP). Once the
pleted by the fourth quarter of 2025, subject to a project is completed the state’s production capac-
final investment decision (FID) being reached. ity will climb to 4.7mn tpy.
“The facility will be an effective solution to Noor said: “The nearshore LNG project is
support the anticipated increase in LNG demand an outcome of a joint study between the state
in Asia, as the world transitions towards a cleaner government and Petronas to identify optimal
energy landscape,” Petronas said. gas monetisation options, in order to maximise
The storage expansion project is not the only long-term economic spin-offs that will benefit
LNG project the state major is working on, with the people of Sabah.”
Sabah Chief Minister Hajiji Noor announcing He added: “[The project] is a step in the right
this week that Petrobras was developing the direction as the government continues to pursue
state’s first nearshore LNG facility at the Sipitang more deals to get additional revenue via equity
Oil & Gas Industrial Park (Sogip). participation for Sabah.”
AUSTRAL ASIA
Origin sells 10% stake in APLNG to EIG
INVESTMENT AUSTRALIAN developer and utility Origin company “further flexibility to deliver returns
Energy has agreed to sell a 10% stake in the Aus- to shareholders and pay down debt, while allow-
tralia Pacific LNG (APLNG) project to global ing Origin to accelerate investment in growth
energy investor EIG. opportunities.”
Origin said on October 25 that the EIG’s CEO, Blair Thomas, told Reuters on
AUD2.12bn ($1.59bn) deal would lower its stake October 25 that his company had approached
in the 9mn tonne per year (tpy) facility to 27.5%, Origin two years ago over a potential investment,
but that it would continue to operate APLNG’s describing it as part of a strategy of chasing LNG
upstream interests. investments ahead of the global energy transition.
Both ConocoPhillips and Sinopec, whose This would have been right around the time
stakes remain unchanged at 37.5% and 25% that EIG offloaded its 131.8mn shares in Austral-
respectively, have the right to pre-empt the sale. ian junior Senex Energy. It would also have been
Origin will retain its existing seats on the around a year after EIG-backed Harbour Ener-
APLNG board, EIG will gain a singular seat with gy’s takeover bid for Santos was rejected.
voting rights in line with its new stake. “We’ve been around this East Coast gas story
The Australian developer said it expected to for a while and are constantly on the lookout for
complete the sale by the end of the year, noting opportunities. And that continues,” EIG’s CEO,
that net proceeds were expected to be around Blair Thomas, told Reuters.
AUD2bn ($1.5bn) after adjustments and trans- Origin has agreed to guarantee EIG’s obli-
action costs. Origin does not expect to pay any gations to satisfy any future cash calls made by
tax on the transaction. APLNG, while an EIG unit will indemnify Ori-
Origin CEO Frank Calabria said: “Divesting a gin in respect of the guarantee.
10% interest allows Origin to crystallise some of The deal is also subject to ConocoPhillips
the significant value we have created in APLNG, being reasonably satisfied that EIG is capable
while retaining upside to further value creation of satisfying its obligations under the APLNG
through a continuing substantial shareholding. Shareholders’ Agreement with the benefit of
He added that the funds would afford the Origin’s supporting guarantee.
Week 43 29•October•2021 www. NEWSBASE .com P9
