Page 8 - NorthAm Week 25 2021
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NorthAmOil                            PIPELINES & TRANSPORT                                       NorthAmOil


       Tellurian applies to build pipeline




       to planned LNG terminal




        LOUISIANA        LNG developer Tellurian announced this week  proposed pipeline project, coupled with other
                         that its Driftwood Pipeline subsidiary had sub-  strategic steps Tellurian is taking, is expected to
                         mitted a formal application to the US Federal  lead to a reduction of nearly a 1mn tonnes per
                         Energy Regulatory Commission (FERC) to  year (tpy) in direct greenhouse gas (GHG) emis-
                         construct and operate a dual pipeline in Loui-  sions, or an overall reduction of 14%.
                         siana. In a separate video message to investors,   Meanwhile, Souki said Tellurian would soon
                         Tellurian’s executive chairman, Charif Souki,  sign a long-term lease with the port authority
                         provided an update on the company’s prepara-  where its proposed Driftwood LNG facility will
                         tions for kicking off construction at the planned  be built on the banks of the Calcasieu river. He
                         Driftwood LNG project south of Lake Charles.  added that the company was planning a refresh
                           Driftwood Pipeline is seeking to build and  of its pricing agreement with engineering, pro-
                         operate the dual 37-mile (60-km), 42-inch  curement and construction (EPC) contractor
                         (1,067-mm) diameter Line 200 and 300 inter-  Bechtel this autumn. The process is anticipated to
                         state pipelines, which will originate near Ragley  take around 90 days, and will come as Tellurian
                         in Beauregard Parish and end near Carlyss in  prepares to issue a notice to proceed to Bechtel.
                         Calcasieu Parish. The new pipeline project has  The lump-sum turnkey (LSTK) EPC contract is
                         been designed and routed to connect supply  currently worth $15.5bn, and Souki said he did
                         north of Lake Charles to demand located within  not anticipate much change in the pricing.
                         and south of Lake Charles, bypassing what has   To prepare the Driftwood site for full con-
                         become a “constrained, complex and expensive  struction, a state highway also needs to be wid-
                         transportation pathway”, said Tellurian.  ened and a pipeline that crosses the property
                           Driftwood Pipeline is proposing to deploy  needs to be relocated, Souki said. Additionally,
                         Baker Hughes-supplied electric-driven com-  the wet ground at the site has to be remediated to
                         pression to reduce the pipeline’s carbon diox-  allow for heavy equipment. That work will take
                         ide (CO2) emissions by more than 99%. The  6-9 months, according to Souki.™

                                                   PERFORMANCE

       Hurricane season disruption begins in Gulf





        GULF OF MEXICO   SOME disruption to oil and gas operations in   The disruptions come after the 2020 Atlan-
                         the US Gulf of Mexico was seen last week, as a  tic hurricane season became the most active on
                         weather disturbance that later became Tropical  record late last year, with a number of hurricanes
                         Storm Claudette threatened the region. Chevron  affecting oil and gas operations in the Gulf and
                         and Occidental Petroleum both said on June 17  along the coast. At one point last year, 90% of off-
                         that they were implementing storm precautions  shore production was offline, and two refineries
                         at their offshore facilities.        in Lake Charles, Louisiana, were shut for months
                           Chevron said it had removed non-essential  as a result of damage from storms in the region.
                         staff from three platforms in the Gulf – Big Foot,  Gulf Coast refiners are reported to have stepped
                         Jack/St Malo and Tahiti – and had fully evacu-  up storm preparation measures after the damage
                         ated the Genesis facility, but that its production  and disruption seen last year.
                         remained at normal levels. Occidental, mean-  The 2021 season already threatens to be
                         while, did not comment on output but said all  an active one. The Atlantic recorded the first
                         of its facilities had plans to prepare for weath-  named storm, Ana, which formed near Ber-
                         er-related events and were implementing those  muda, last month. This marks the seventh con-
                         procedures last week.                secutive year that a named storm has formed
                           Neither company had provided any updates  before the official start date of the hurricane
                         as of June 22, but the danger posed by the storm  season.
                         had passed by this point.              The National Oceanic and Atmospheric
                           Tropical Storm Claudette made landfall in  Administration (NOAA) has forecast 13-20
                         Louisiana on June 19, weakening as it moved  named storms for this year, of which 6-10 could
                         through Mississippi and Alabama. However,  become hurricanes, and 3-5 could turn into
                         it subsequently regained tropical storm status,  major hurricanes. An average season has 12
                         strengthening again as it moved back out to sea  named storms and six hurricanes, according to
                         off the coast of the Carolinas.      the agency.™



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