Page 10 - GLNG Week 43

GLNG AMERICAS GLNG
Sempra, Mitsui sign MoU on LNG
INVESTMENT
The MoU covers Mitsui’s participation
in the second phase
of Cameron LNG (pictured), as well as an expansion of the Energía Costa Azul LNG project in Mexico.
SEMPRA Energy announced on October 28 that it had entered into a memorandum of understanding (MoU) with Japan’s Mitsui & Co. The non-binding agreement covers Mitsui’s participation in the second phase of Sempra’s Cameron LNG project, as well as a future expan- sion of the Energía Costa Azul LNG project in Mexico.
Mitsui is already part of the consortium developing the first phase of Cameron LNG in Louisiana, which recently entered service and consists of three trains. Under the MoU, the two companies have agreed to help each other build two more trains as part of a second-phase expansion.
Train 1 at Cameron LNG began commer- cial operations in August, with Trains 2 and 3 expected to commence LNG production in the first quarter and second quarters of 2020 respectively.
Mitsui is already an equity participant in the development company for both phases of Cam- eron LNG.
Under the MoU Sempra and Mitsui also
agreed to help each other develop LNG export capacity at the already existing Energía Costa Azul import terminal on Mexico’s Pacific Coast.
Energía Costa Azul LNG is being developed in partnership with Sempra’s Mexican subsidi- ary, IEnova. Phase 1 of the project includes one liquefaction train with an export capacity of roughly 2.4mn tonnes per year (tpy). A future expansion of the terminal would include addi- tional trains with an anticipated export capacity of around 12mn tpy.
Sempra and Mitsui entered into a heads of agreement (HoA) in November 2018 and are currently finalising a definitive 20-year LNG sales and purchase agreement (SPA) for the potential purchase of 800,000 tpy of LNG from Phase 1 at Energía Costa Azul.
Under the newly signed MoU, Mitsui could become the offtaker for up to one-third of the available capacity from Cameron LNG’s second phase. The agreement also calls for the company to buy up to 1mn tpy of LNG from the Energía Costa Azul expansion, as well as buying into the project as an equity participant.™
AUSTRALASIA
Queensland awards new exploration acreage
PROJECTS & COMPANIES
THE Queensland State government has awarded 3,450 square km of new exploration acreage to six companies, with two of parcels ringfenced for the domestic market.
The government announced on October 30 that Comet Ridge and Denison Gas had been awarded 450 square km and 568 square km respectively and would be required to sell any ensuing production to domestic buyers. Galilee Energy was awarded 1,425 square km, a West- side-Australia Pacific LNG (APLNG) venture won 753 square km, the Santos-led GLNG pro- ject won two permits spanning 101 square km and Red Energy won 153 square km.
“These operators now have the opportunity to hunt for gas in proven gas-rich Bowen and Surat basins,” Energy Minister Anthony Lynham said. He added: “Queensland is open for business and I encourage these companies to progress the necessary approvals to get the gas and associated jobs flowing.”
Santos’ managing director and CEO, Kevin Gallagher, said his company would leverage its extensive knowledge of the Surat Basin to “quickly and efficiently define the resource”.
The minister said the government intended to release 30,000 square km of new land – located
in the Bowen, Surat, Galilee, Adavale, Eromanga and Millungera basins – for bids on November 7. Lynham said the release would be one of the state’s largest, with more than 30% of the land
having being earmarked for domestic supply. “Business and industry – particularly our manufacturers – need more affordable gas to fuel jobs and there’s one surefire way to do that – produce more gas,” he said. “More gas from more fields is the only long-term way to deal with
affordable domestic gas supply.”
The Queensland Resources Council (QRC)
has welcomed the release of the new land, with CEO Ian Macfarlane saying the move is essen- tial to attract investment, boost exports and meet domestic gas demand.
The Brisbane government has released more than 39,000 square km of land for exploration since 2015, with more than 20% of that ear- marked for domestic buyers.
Lynham said two project developers – Senex and the APLNG-Armour Energy venture – had signed supply deals with local buyers. Sen- ex’s Project Atlas has contracts with CSR, O-I glass and with Orora, while APLNG-Armour Energy has signed supply gas deals with Orica and Orora.™
P10
w w w . N E W S B A S E . c o m Week 43 31•October•2019