Page 9 - GLNG Week 06 2022

GLNG AFRICA GLNG

Sonatrach, DEPA extend LNG supply deal

PROJECTS & ALGERIA’S national oil company (NOC) stressed the long-standing relationship between
COMPANIES Sonatrach and Greece’s state-owned natural gas the two companies.
company DEPA confirmed on February 4 that Xifaras commented: “The renewal of the
they had extended their long-term LNG supply LNG supply contract with Sonatrach seals our
contract the day before. long-term, constructive co-operation with a
In separate press releases, the two companies market partner. The signing of this agreement,
reported that they had agreed to increase the by adapting the terms to current trends, meets
term of their existing contract while also adapt- DEPA Commerce’s strategic goal of providing
ing the terms of that contract to bring them into its customers with sufficient quantities of nat-
line with current trends and anticipated future ural gas at competitive prices from reliable and
developments in global energy markets. They diversified sources, thus ‘shielding’ the country’s
also stated that the changes would take effect ret- energy security.”
roactively as of January 1, 2022. Greece imported its first cargo of Algerian
Neither the Greek company nor the Alge- LNG in 2000, and since then, Algeria has become
rian NOC specified the length of the contract the Southern European country’s largest single
extension. Nor did either party offer insight as supplier of LNG. Sonatrach delivers cargoes
to the nature of the changes in the terms of the from the Skikda LNG plant to the Revythousa
contract. regasification terminal, a facility in the Gulf of
DEPA noted in its statement that the agree- Megara near Athens that is owned by DESFA, a
ment to extend the contract had been signed fully-owned subsidiary of DEPA.
online. The signatories were DEPA’s CEO Kon- According to previous reports, the volume
stantinos Xifaras and Sonatrach’s vice-president of these shipments amounts to the equivalent of
for marketing Fatiha Neffah, both of whom about 500mn-1bn cubic metres per year of gas.™

AMERICAS

Canadian government rejects

Quebec LNG project

PROJECTS & THE Canadian government has rejected GNL gas (GHG) emissions or that it would help with
COMPANIES Québec’s Énergie Saguenay LNG project. The the transition to greener forms of energy. The
move follows a rejection from the provincial province also required the project to have suf-
government of Quebec in July 2021 and could ficient public support, but after it failed to meet
spell the project’s demise. Quebec’s first two criteria, it did not analyse the
Canada’s Minister of Environment and Cli- third.
mate Change, Steven Guilbeault, announced the GNL Québec cannot proceed with the pro-
decision on February 7, based on the findings of ject without the relevant provincial and federal
an environmental assessment report from the approvals, but the IAAC said that the federal
Impact Assessment Agency of Canada (IAAC). government’s decision does not prevent GNL
The report cited “significant adverse environ- Québec from submitting new project proposals
mental effects” related to an increase in green- and does not rule out eventual development of
house gas (GHG) emissions. It was referred to the project. Nonetheless, the path forward now
the Governor in Council, who found that these looks even more challenging and it would not be
effects were not justified in this instance. surprising if the company opts to abandon the
“The Énergie Saguenay Project underwent a project.
rigorous review that clearly demonstrates that The CAD14bn ($11bn) Énergie Saguenay
the negative effects the project would have on project is designed to have the capacity to export
the environment are in no way justifiable,” stated 11mn tonnes per year (tpy) of LNG from Can-
Guilbeault. ada’s East Coast. Western Canadian natural gas
The government of Quebec rejected the would have been used for feedstock.
project on similar grounds last year. It said that The government’s rejection of the project also
GNL Québec had failed to prove that the scheme spells bad news for a planned 780-km pipeline
would lead to a reduction in global greenhouse designed to serve the proposed terminal.™

Week 06 11•February•2022 www. NEWSBASE .com P9