Page 15 - NorthAmOil Week 36

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Husky to review West White Rose

NEWFOUNDLAND CANADA’S Husky Energy has said it will carry about 60% complete, and a smaller module is
AND LABRADOR out a review of its West White Rose project off- also under construction at the Cow Head fab-
shore Newfoundland and Labrador on the coun- rication yard in Marystown. The main topside
try’s east coast. This comes after construction on module is being built in Texas by Kiewit. How-
the project – which is an extension of the pro- ever, all major construction remains on hold for
ducing White Rose oilfield – was suspended in now.
March owing to the coronavirus (COVID-19) The project was anticipated to add 75,000
pandemic. Husky has also cited “capital re-pri- barrels per day (bpd) of oil production when it
oritisation” since then in response to the global came online, which had initially been scheduled
Construction on a economic downturn. for 2022 but has been delayed by at least a year
concrete gravity The announcement follows weeks of negotia- owing to the suspension of construction.
structure for West tions between West White Rose’s backers and the Husky had estimated that capital and oper-
White Rose is about Canadian authorities about the possibility of the ating investment would have amounted to
60% complete. federal or provincial government buying a stake CAD11bn ($8.4bn).
in the project. “A full review of scope, schedule and cost of
“We are at the table with the province right this project is critical, given the minimum one-
now, hammering out the concrete steps needed year delay to first oil caused by COVID-19, and
to support the offshore,” Canadian Minister of our priority of maintaining the strength of our
Natural Resources Seamus O’Regan said. balance sheet with ample liquidity,” said Husky’s
West White Rose was sanctioned in 2017, CEO, Rob Peabody. “Unfortunately, the delay
with the project estimated to cost CAD2.2bn caused by COVID-19 and continued market
($1.7bn). Construction on a concrete gravity uncertainty leaves us no choice but to undertake
structure for the development at a graving dock a full review of the project and, by extension, our
in Argentia, Newfoundland and Labrador, is future operations in Atlantic Canada.”™

Sabine Pass back in service as

Cameron LNG remains offline

LOUISIANA CHENIERE Energy’s Sabine Pass LNG termi- Cameron relies on power purchased from utility
nal resumed operations this week after going Entergy, and has had its restart efforts affected
offline as a result of Hurricane Laura, which by continuing widespread power outages in the
made landfall in Louisiana on August 27. area.
Meanwhile, the nearby Cameron LNG facility “Almost every facility in the region is still
remains offline. without power and/or water, and the lack of
Vessel tracking data showed that the Hoegh power will be the biggest hurdle in getting facil-
Gannet LNG tanker docked at Sabine Pass on ities rehabilitated,” said a September 8 shipping
September 9, preparing to load the first cargo notice to customers that use the channel that
from the plant since its shutdown. Feed gas serves Cameron LNG. “Most of them cannot
deliveries to US liquefaction terminals rose to even finish their damage assessments and sur-
their highest level in four months as Sabine Pass veys without having power,” it added.
restarted. This comes after a spate of cargo can- A different channel is used by tankers that
cellations over the summer depressed US lique- travel to Sabine Pass.
faction and exports. Cameron LNG’s operator, Sempra Energy,
As of September 9, feed gas flows to Sabine has not provided an estimate for when the facil-
Pass were reported to have risen to 2.84bn cubic ity could restart. But EBW Analytics Group has
feet (80.43mn cubic metres). Feed gas flows to warned that it could take several weeks.
Cameron LNG remain at zero. “While restoring power to the Lake Charles
Neither Sabine Pass nor Cameron LNG were area could take up to two months, Cameron is
reported to have sustained substantial damage on the outer edge of the affected area,” EBW said.
from the hurricane. The difference in the length “Power can be restored while the rest of the sys-
of time it is taking for both facilities to start up tem is still being rebuilt. Some observers believe
has been attributed to access to power. Sabine the required work could be completed in one to
Pass produces its own power on-site, whereas two weeks.”™

Week 36 10•September•2020 www. NEWSBASE .com P15