Page 9 - NorthAmOil Week 17 2022

NorthAmOil PROJECTS & COMPANIES NorthAmOil

KOGAS strikes deal for

US LNG supply with BP

US-SOUTH STATE-OWNED Korea Gas (KOGAS) has LNG suppliers in Asia and the Middle East
KOREA struck a deal to buy US-produced LNG from BP. ended in 2019 alone and a further 7.02mn tpy of
The sale and purchase agreement (SPA) follows a contracts for LNG from Qatar are due to expire
heads of agreement (HoA) between the two sides by 2026.
that was reached in 2019. KOGAS has been seeking to extend or renew
Under the finalised deal, KOGAS will import some of its existing contracts while also looking
1.58mn tonnes per year (tpy) from BP’s Singapo- for new ones. In mid-2021, the company said it
rean subsidiary starting in 2025 for a period of 18 had struck a new 20-year deal with state-owned
Some of the LNG under years. The price of LNG sold under the deal will Qatar Petroleum – since renamed to QatarEn-
the new SPA would be indexed to the US’ Henry Hub benchmark, ergy – for the supply of 2mn tpy of LNG starting
come from the Freeport which KOGAS said is considered “very compet- in 2025. KOGAS also imports some US LNG
LNG terminal in Texas. itive” given current oil and LNG prices. Further already as a result of a 20-year SPA with Cheniere
financial details were not disclosed. Energy covering 3.5mn tpy that began in 2017.
The deal is the first LNG supply agreement The South Korean company noted that some
between KOGAS and BP. It comes as the South of the LNG under its new SPA would come from
Korean company works to replace long-term the Freeport LNG terminal in Texas, with which
supply agreements that are either expiring or BP has an offtake deal. BP is also an offtaker from
have already done so in the last three years. For Venture Global LNG’s Calcasieu Pass facility in
example, 5.78mn tpy worth of contracts with Louisiana, which entered service this year.™

ENERGY TRANSITION

ExxonMobil receives certification

for gas from Permian project

NEW MEXICO EXXONMOBIL announced this week that The assessment of ExxonMobil’s Poker
about 200mn cubic feet (5.7mn cubic metres) Lake operations was carried out by Responsi-
per day of natural gas output at its Poker Lake ble Energy Solutions using the MiQ Standard.
project in the New Mexico portion of the Per- The company anticipates that the certification
mian Basin has received independent certifica- will help it meet growing customer demand for
tion from MiQ. energy produced with lower emissions.
The company was granted an “A” grade cer- “MiQ is pioneering independently certified
tification – MiQ’s top grade – for what Exxon- gas to help accelerate methane reductions from
Mobil describes as its “extensive multi-tiered the natural gas industry and, as one of the world’s
technology approach to methane monitoring largest energy companies, ExxonMobil’s expan-
and mitigation” at Poker Lake. The certification sion of the certification programme demon-
makes ExxonMobil the first company to achieve strates that independently certified gas is rapidly
certification for associated gas produced as a becoming the status quo,” stated MiQ’s CEO,
by-product of oil drilling. Georges Tijbosch.
The super-major said it uses a combination ExxonMobil is now expanding the certifica-
of fixed monitoring systems, optical gas imaging tion process to its facilities in other regions, such
cameras, aerial imaging technology, proprietary as its Appalachian Basin operations in Pennsyl-
acoustic sensors and leak detection and repair vania and West Virginia.
practices at Poker Lake. The super-major is targeting net-zero emis-
“This certification further validates the steps sions from its Permian Basin operations by 2030,
we have taken to reduce methane emissions, on a Scope 1 and 2 basis. In addition to mitigat-
which is part of our plans to achieve net zero ing methane emissions, the company is planning
Scope 1 and 2 greenhouse emissions in our to electrify its Permian operations using renew-
Permian Basin unconventional operations by able and lower-carbon power sources and elimi-
2030,” stated ExxonMobil’s senior vice president nate routine flaring of associate gas by the end of
of unconventional, Tom Schuessler. 2022, among other decarbonisation initiatives.™

Week 17 28•April•2022 www. NEWSBASE .com P9