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
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