Page 13 - GLNG Week 39
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GLNG                                           AMERICAS                                               GLNG


       Pieridae signs Bechtel up to Goldboro LNG





        PROJECTS &       CANADA’S Pieridae Energy has signed a ser-  two decades. They have a proven track record of
        COMPANIES        vices agreement with contractor Bechtel related  delivering projects throughout the world on time
                         to the proposed Goldboro LNG project in Nova  and on budget.”
                         Scotia, on Canada’s East Coast. Bechtel replaces   A Pieridae spokesman was quoted by Reu-
                         KBR, which walked away in July after saying it  ters as saying that the agreement with Bechtel
                         would focus on government work and would exit  would keep the company on track to make a final
                         most LNG projects.                   investment decision (FID) on Goldboro by June
                           Bechtel has agreed to review the scope and  2021. If this deadline is met, the project would
                         design of the proposed Goldboro LNG facil-  begin producing LNG in 2025-26. Pieridae was
                         ity and develop an engineering, procurement,  previously targeting an FID this year, but post-
                         construction and commissioning (EPCC)  poned it in April after the LNG industry was hit
                         execution plan by March 31, 2021. It will  hard by the coronavirus (COVID-19) pandemic
                         then provide a fixed-price lump sum turnkey  and its impact on demand.
                         (LSTK) contract proposal by May 31. Bechtel   The Goldboro project is estimated to cost
                         has also agreed to engage with the Nova Scotia  CAD10bn ($7.5bn) to build, and would produce
                         Mi’kmaq First Nations on their participation  9.6mn tonnes per year (tpy) of LNG from two
                         in the construction of a large work camp at the  liquefaction trains. Pieridae has a 20-year agree-
                         site.                                ment to sell all of the LNG from the first train to
                           “This is a very positive step forward for our  German utility Uniper.
                         Goldboro LNG Project,” said Pieridae’s CEO,   Pieridae is working with the Alberta Energy
                         Alfred Sorensen. “Bechtel has significant expe-  Regulator (AER) to secure the transfer of
                         rience building and delivering global LNG  licences for production assets from Royal Dutch
                         projects, helping their customers deliver about  Shell, which would supply feedstock gas to the
                         30% of the world’s LNG capacity over the past  Goldboro terminal.™

                                                          ASIA

       China set for record LNG imports





        PERFORMANCE      CHINA’S LNG imports are forecast to grow this
                         year, with the country’s industrial and residen-
                         tial demand rising even as it shrinks elsewhere
                         in the world owing to the coronavirus (COVID-
                         19) pandemic. China, where the virus origi-
                         nated, was the first country to lock down, and
                         its demand took a hit earlier in the year but has
                         since been recovering.
                           The country’s LNG imports are projected to
                         grow 10% year on year in 2020 to reach a new
                         record high, while overall gas use is expected to
                         rise 4-6% while demand falls by around 4% glob-
                         ally. Citing analysts and Chinese traders, Reuters
                         reported that the Asian country’s LNG imports
                         were on course to reach 65-67mn tonnes per  per 1,000 cubic metres) by September 25. Indeed,
                         year (tpy) this year. If this plays out and the trend  PetroChina was reported to have reduced more
                         continues over the coming years, China could  costly pipeline gas supplies from Central Asia
                         overtake Japan to become the world’s leading  in order to accommodate higher LNG imports,
                         LNG importer by 2022.                according to a Beijing-based official at the com-
                           “After taking a brief hit earlier this year due to  pany who was cited by the news service.
                         the COVID-19 pandemic, China’s gas demand   Chinese customs data showed that LNG
                         recovered faster than expected, driven mostly by  imports between January and August rose 10.3%
                         the industrial sector that has recovered to 2019  y/y to 42.2mn tonnes, while piped gas fell 7.4%
                         levels since May,” Reuters quoted an FGE analyst,  over the same period. And this trend is antici-
                         Alicia Wee, as saying.               pated to continue in the final quarter of the year.
                           Buyers are also taking advantage of low spot   “[Fourth-quarter] imports will remain robust
                         prices to step up purchases of cheap LNG sup-  ... as LNG is both more competitive and flexible
                         plies, and these prices have edged up recently  versus pipeline gas, despite a recent spot price
                         on rising demand ahead of the winter, reaching  spike,” an IHS Markit senior analyst, Lu Xiao,
                         $4.90 per million British thermal units ($135.53  was quoted as saying.™



       Week 39   02•October•2020                www. NEWSBASE .com                                             P13
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