Page 14 - GLNG Week 36
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GLNG AMERICAS GLNG
Sabine Pass back in service as
Cameron LNG remains offline
PROJECTS & CHENIERE Energy’s Sabine Pass LNG termi- Cameron relies on power purchased from utility
COMPANIES 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.”
ASIA
Sinopec awards long-term LNG
supply contract to Qatargas
PROJECTS & CHINA’S state-run Sinopec has reportedly industrial and residential applications.
COMPANIES awarded a long-term LNG supply contract to Russia’s state-owned Gazprom projected in
Qatargas for 1mn tonnes per year (tpy) of the July that the East Asian country’s demand would
super-chilled fuel. rise by 100bn cubic metres every five years from
The contract is indexed at an attractive dis- 304 bcm in 2019, effectively doubling by 2035.
count to Brent crude on a delivered ex-ship The transportation sector is expected to be the
basis, Reuters reported on September 4 citing fastest growing segment, owing to gas’ use as a
unnamed industry sources, noting that sup- fuel for heavy-duty trucks.
plies are expected to start from 2023. Sinopec is Even China’s short-term demand projects are
understood to have paid at a slope of 10.19% – positive, with S&P Global Platts Analytics hav-
a slope of 16.67% is considered on par with oil ing forecast in August that national gas demand
prices. will grow by 7.7% year on year to 337 bcm in
The Chinese major issued the tender in July, 2020, with LNG anticipated to grow by 9% y/y
with reports noting at the time that Sinopec was and pipeline imports by 7.6%.
seeking a hybrid pricing basis for the tender. The economic giant’s imports of LNG
Sinopec is understood to be looking to climbed by 3.1% y/y in July to 5.03mn tonnes,
capitalise on both low oil prices as well as according to data from the General Administra-
depressed global demand for the fuel. China’s tion of Customs (GAC). Reuters, meanwhile, has
long-term demand forecasts remain strong, cited Refinitiv Eikon data as showing that Chi-
given the government’s drive to bolster gas nese LNG imports in August are on track to hit
consumption by switching coal for gas in nearly 6.4mn tonnes.
P14 www. NEWSBASE .com Week 36 11•September•2020
