Page 8 - NorthAmOil Week 49 2022
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NorthAmOil POLICY NorthAmOil
Los Angeles bans new oil wells,
to close existing wells
CALIFORNIA LOS Angeles city councillors have voted unan- was because of the oil and gas industry at
imously to ban existing oil wells within city the beginning of the Twentieth Century. But
boundaries immediately, and to phase out exist- the result of that incredible growth contam-
ing ones within 20 years. inated countless parts of this city, countless
There are 26 oil and gas fields – and around neighbourhoods.”
5,000 wells – within the metropolis, the coun- The city will additionally review existing
try’s second-largest. Not all are active. LA’s oil wells, and if they can be shut down earlier than
wells have been called the largest urban system 2042 with owners recouping their investments,
of oil production, though the oil production is then that will happen.
in decline. New oil wells are already banned in the state
In fact, the volume of oil produced may not – as of earlier this year – near homes, schools and
be large, but California – the US’ most populous parks.
state – and its cities are trend-setters nationally in In November, the state Air Resources Board
terms of environmental policy. released an updated “Scoping Plan” of how state
City officials cited as reasons that the health plans to reach carbon neutrality in 2045. Petro-
of residents who live near wells is being affected leum consumption should drop by 94% by 2045.
negatively and that closing them will help fight Oil drilling bans are also being considered
climate change. in Culver City, near Los Angeles, in Los Ange-
“When this ordinance goes into place, there les County and in part of the San Francisco Bay
will be no new oil and gas production whatso- Area. Los Angeles County banned new oil and
ever,” said council president Paul Krekorian dur- gas drilling last year.
ing the session at which new wells were banned The California Independent Petroleum Asso-
in a 12:0 vote. “That’s a pretty monumental step ciation has said that phasing out oil and gas drill-
that we’re taking.” ing could cost Los Angeles billions of dollars and
He added: “Part of [LA’s] economic growth thousands of jobs.
PROJECTS & COMPANIES
Sempra, Engie sign SPA for Port Arthur LNG
TEXAS SEMPRA has announced an offtake agreement LNG and contribute to the security of natural
with France’s Engie for LNG from its proposed gas supply to their clients while supporting both
Port Arthur LNG facility. companies’ ESG commitments.”
For 15 years, Engie will receive 875,000 Sempra Infrastructure recently announced it
tonnes per year (tpy) of LNG from Port Arthur had amended and finalised an engineering, pro-
LNG Phase I. The LNG project, located on the curement and construction (EPC) contract with
Texas Gulf Coast, owned by Sempra subsidiary Bechtel Energy for the proposed Port Arthur
Sempra Infrastructure. LNG Phase 1.
The LNG will be delivered on a free-on- It also recently announced that it had entered
board (FOB) basis and sourced from natural into long-term agreements with ConocoPhil-
gas producers whose gas has been certified by lips and chemical group INEOS for the sale and
independent third parties in accordance with purchase of 5.0mn tpy and 1.4mn tpy of LNG
environmental, social and governance perfor- respectively.
mance (ESG) criteria, said San Diego-based Sempra is focused on completing the remain-
Sempra. ing steps necessary to achieve its goal of making
The agreement also provides a framework to a final investment decision (FID) for Phase 1 of
explore ways to lower the carbon intensity of LNG the liquefaction project in the first quarter of
produced from the Port Arthur Phase 1 LNG 2023.
project through greenhouse gas (GHG) emission The Port Arthur LNG Phase 1 project is per-
reduction, mitigation strategies and a continuous mitted and expected to include two liquefaction
improvement approach, said the company. trains and LNG storage tanks and associated
“Engie is a leader in Europe’s energy transi- facilities capable of producing, under optimal
tion and a great addition to our Port Arthur LNG conditions, up to around 13.5mn tpy of LNG. A
customer portfolio,” said Sempra Infrastructure’s similarly sized Port Arthur LNG Phase 2 project is
CEO, Justin Bird. “We are excited to work with also “competitively positioned” and under active
Engie to deliver reliable energy resources like marketing and development, said Sempra.
P8 www. NEWSBASE .com Week 49 08•December•2022