Page 6 - NorthAmOil Week 18 2021

NorthAmOil COMMENTARY NorthAmOil

Momentum for US LNG export plans

Even as a small handful of US LNG export proposals are seen to be failing, others are

moving forward

US US LNG exports continue to reach new highs, tpy of capacity. At Plaquemines, it is hoping to
and momentum is building behind some of the sanction the first 10mn tpy phase this year, to
WHAT: most advanced proposals to construct additional be followed by a second 10mn tpy phase further
The momentum behind liquefaction capacity in the country. down the line. The company is proposing to
new US LNG export This week, Venture Global, which is currently build two further 20mn tpy facilities in Louisi-
projects is growing, even in the process of completing construction on ana – Delta LNG and CP2 LNG – but these are
as a small number fall by the Calcasieu Pass LNG terminal in Louisiana, at far earlier stages of development.
the wayside. announced a new partnership for developing Plaquemines, however, is considerably
its second export plant, Plaquemines LNG. advanced. Indeed, out of around 13 North
WHY: The company had previously selected KBR as American LNG projects that are targeting a final
Demand appears to be its engineering, procurement and construction investment decision (FID) this year, analysts
on an upward trajectory, (EPC) contractor for Plaquemines, which will believe that Plaquemines is one of the few that
and the best-positioned also be located in Louisiana, and now says that will proceed on schedule. The project also has
projects are attempting to Zachry Group had entered into a joint venture two 20-year supply deals in place with France’s
move forward. with KBR for the project. EDF and Poland’s PGNiG for a combined 3.5mn
The new joint venture, known as KZJV, will tpy of its capacity, making the path towards FID
WHAT NEXT: execute the development, engineering, procure- somewhat easier.
Some companies are ment and construction under the EPC contract Meanwhile, the $4.5bn Calcasieu Pass is now
anticipating taking FIDs for Phase 1 of Plaquemines LNG, according to expected to start producing LNG in test mode
on new capacity later this Venture Global’s latest statement. The partner- later this year. If Venture Global succeeds in
year, though delays are ship will install modular liquefaction trains at sanctioning Plaquemines as scheduled, that will
possible. Plaquemines, using the same approach that has enhance its position as a leading developer in
already been implemented at Calcasieu Pass. the second wave of US LNG projects.
Venture Global says on its website that its pro-
jects are based on mid-scale liquefaction tech- Making moves
nology, with 10mn tonnes per year of capacity Venture Global is not the only US LNG devel-
comprised of nine blocks and each block hold- oper to be pushing forward with plans for new
ing two electrically driven 626,000 tpy trains. At liquefaction capacity on the Gulf Coast. As
Calcasieu Pass it is currently developing 10mn reported in recent weeks by GLNG, NextDecade

P6 www. NEWSBASE .com Week 18 06•May•2021