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Investors reportedly interested in Coastal GasLink stake
PIPELINES & TRANSPORT
POTENTIAL investors are reportedly show- ing an interest in buying a stake in TC Energy’s Coastal GasLink pipeline project. Citing anony- mous sources familiar with the matter, Bloomb- erg reported this week that the interested parties include Mubadala Investment, Abu Dhabi’s sov- ereign wealth fund.
TC Energy is seeking to sell up to 75% in Coastal GasLink, according to a regulatory l- ing from January. It is not clear how much TC Energy is seeking from a sale, but the project is estimated to cost CAD6.2bn ($4.7bn) to build in total.
TC Energy told Bloomberg that while it does not comment on “market rumours”, it continues to advance funding plans for Coastal GasLink, which could include the sale of a stake in the project.
e Coastal GasLink pipeline would carry gas from the Montney shale play to the British Columbia coast, serving the LNG Canada pro- ject that is currently under construction and due
to enter service in 2023. e 416-mile (670-km) pipeline is also expected to come online that year. TC Energy’s push to sell assets in an e ort to strengthen its balance sheet and fund capital projects follows its $10.2bn takeover of Colum-
bia Pipeline Group in 2016.
The company also continues its efforts to
move forward with construction of the Key- stone XL cross-border pipeline, which has been held up by years of regulatory and legal delays. TC Energy said this week that it is holding o on pre-construction activities related to the pro- ject while a judge considers a challenge against it by two environmental groups. e company decided not to start the work as previously planned on October 1, opting instead to wait until US District Judge Brian Morris holds a hearing on the issue on October 9.
Pre-construction activities are still antici- pated to be carried out during the remainder of 2019, assuming TC Energy does not encounter any further legal hurdles.™
Peru LNG reports exports up year on year in September
SEPTEMBER
PERU’S national oil company (NOC) Peru- petro reported last week that the country’s only LNG plant had seen exports rise year on year in September.
According to data published by Perupetro, the Peru LNG consortium, which operates a gas liquefaction plant and export terminal in Pampa Melchorita, loaded five vessels with 822,014 cubic metres of LNG last month. is marked a 38.2% increase in volume on loadings in Sep- tember 2018, when the group exported a total of 594,665 cubic metres of LNG via four cargoes.
Even so, exports did decline month on month. According to previously released data, Peru LNG loaded six vessels with 899,136 cubic metres of LNG in August. As a result, export vol- umes dropped by 8.6% on the previous month’s levels.
Peru LNG has loaded and dispatched a total of 537 cargoes of LNG since its launch in June 2010, Perupetro noted last week. Of the ve car- goes exported in September 2019, three went to Spain, one to South Korea and one to China, it said.
e Peru LNG consortium, which includes the US company Hunt Oil and three partners, spent $3.8bn on the construction of the Pampa Melchorita facility. The complex includes a 4.45mn tonne per year (tpy) gas liquefaction plant, constructed by Chicago Bridge & Iron (CBI), and a marine terminal, which was built by a consortium known as CDB. ( is group consists of Italy’s Saipem, Luxemburg’s Jan de Nul and Brazil’s Odebrecht.)
e Pampa Melchorita complex also houses a storage depot that includes two 130,000 cubic metre tanks and a gas supply pipeline. e latter handles gas from elds operated by Spain’s Rep- sol and the Argentinian NOC YPF in the Cusco region. It is a 34-inch (860-mm) pipe that fol- lows a 408-km route from Chiquintirca, a town in the Ayacucho region, to the gas liquefaction plant.
Equity in the Peru LNG project is split between Hunt Oil, with 50%; SK Energy (South Korea), with 20%; Royal Dutch Shell (UK-Neth- erlands), with 20%, and Marubeni (Japan), with 10%.™
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w w w . N E W S B A S E . c o m Week 40 10•October•2019