Page 8 - NorthAm Week 25 2021

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.™

P8 www. NEWSBASE .com Week 25 24•June•2021