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Peru LNG reports exports up y/y in October
PERFORMANCE
PERU LNG, a consortium that operates a gas liquefaction plant and export terminal in Pampa Melchorita, saw export volumes rise year on year in the month of October.
According to data released last week by the national oil company (NOC) Perupetro, Peru LNG loaded five vessels with 805,906 cubic metres of LNG last month. is marked a 9.67% increase in volume on loadings in October 2018, when the group exported some 734,846 cubic metres of LNG via ve cargoes.
Even so, total export volumes did decline month on month. According to previously released data, Peru LNG loaded ve vessels with 822,015 cubic metres of LNG in September. As a result, exports dropped by nearly 2% on the pre- vious month’s level.
Peru LNG has loaded and dispatched a total of 542 cargoes of LNG since its launch in June 2010. Of the ve cargoes despatched in October 2019, two went to South Korea, while the other three went to separate destinations – Spain, France and the Netherlands.
e Peru LNG consortium, which includes the US company Hunt Oil and three partners, spent $3.8bn on the construction of the Pampa Melchorita facility. The complex includes a 4.45mn tonne per year (tpy) gas liquefaction plant, constructed by Chicago Bridge & Iron Co. (CBI), and a marine terminal, which was built by a consortium known as CDB. ( is group con- sists of Italy’s Saipem, Luxemburg’s Jan de Nul and Brazil’s Odebrecht.)
e Pampa Melchorita complex also houses a storage depot that includes two 130,000 cubic metre tanks and a gas supply pipeline. e latter handles gas from elds operated by Spain’s Rep- sol and the Argentinian NOC YPF in the Cusco region. It is a 34-inch (860-mm) pipe that follows a 408-km route from Chiquintirca, a town in the Ayacucho region, to the gas liquefaction plant.
Equity in the Peru LNG project is split between Hunt Oil, with 50%; SK Energy (South Korea), with 20%; Royal Dutch Shell (UK-Netherlands), with 20%, and Marubeni (Japan), with 10%.
BPTT comments on prospects for directing gas from BHP fields to Atlantic LNG
PROJECTS & COMPANIES
BP Trinidad & Tobago (BPTT) has expressed interest in the possibility of working with BHP (Australia) to nd new sources of feedstock for Atlantic LNG. e company, which is a joint venture between BP (UK) and Repsol (Spain), is a shareholder in the 14.8mn tonne per year (tpy) LNG plant.
Claire Fitzpatrick, the regional president of BPTT, said earlier this week that Atlantic LNG might start looking for new suppliers of natural gas once its current contracts expired. She was responding to a statement from Geraldine Slat- tery, BHP’s president of petroleum operations, about the prospects for using the facility to pro- cess output from the Northern licence area o - shore Trinidad and Tobago.
Atlantic LNG actually has an incentive to explore this option, Fitzpatrick said. “BHP does not have [a stake] in Atlantic, but if you think about it from [the] Atlantic owner’s perspective, fields decline, contracts roll off,” she told the Business Guardian. “If you have invested in the infrastructure, it is in your best interest to have that capacity as full as possible. So there will be no incentive for Atlantic shareholders to not want gas through those facilities. For any of these ventures around the world, that’s the natural way thingswouldhappen.”
She stressed, though, that it was too early to say what might happen with future production streams from the Northern block. BHP has said it does not expect the licence area to begin yielding gas until 2026 or 2027, and Atlantic LNG’s shareholders are taking steps to opti- mise yields from its own assets in the interim, she explained.
“At that point, the decline in the existing elds will have taken its course with all the mitigations that we are doing. In terms of where gas will go in 2026 and 2027, we will see,” she commented.
Slattery, for her part, stated recently that BHP’s plans for using gas from the Northern block to produce LNG were still in the early stages. e company has determined that the licence area’s reserves are large enough to sup- port this option, she said, but it will not make a nal investment decision (FID) on the project until 2022.
BP is a minority shareholder in the North- ern block, which includes the Bele-1, Bongos-2, Boom-1, Hi-Hat-1 and Tuk-1 wells. It has a 30% stake in the licence area, which may hold as much as 3.5tn cubic feet (99.11bn cubic metres) of gas, including 1.5 tcf (42.48 bcm) in recovera- ble reserves. BHP holds the remaining 70% and servesasoperatoroftheproject.
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