Page 12 - NorthAmOil Week 04 2022

NorthAmOil POLICY NorthAmOil

Russia open to further US

security talks but not hopeful

US-EUROPE RUSSIA has said it is prepared to continue talks at the Ukrainian border, and Ukraine and some
with the US over the European security situ- of its Western allies have signalled they believe
ation, but is not hopeful about their prospects, a war is imminent. Even so, the Russian foreign
the Kremlin said on January 27. ministry indicated that an invasion of Ukraine
The comment by Kremlin spokesman was not Russia’s intention.
Dmitry Peskov comes after the US and Nato “We have already repeatedly stated that our
rejected Moscow’s demand for a veto on country does not intend to attack anyone,” a
Ukraine ever joining the military alliance. The ministry spokesman said. “We consider even
Russian side has issued a number of other, less the thought of a war between our people to be
Source: AFP realistic demands, such as the withdrawal of unacceptable.”
Nato troops from other countries in the eastern Tensions between Russia and the West, pri-
bloc such as Poland and the Baltic States. But it marily the US, over events in Ukraine, have
has signalled it may back down in the standoff exerted upward pressure on European gas
if it receives a commitment that Ukraine will prices, because of a potential cut-off this winter
never join Nato. of Russian gas transit to Europe. The EU and the
“There isn’t much reason to be optimis- US are in talks at arranging additional gas for
tic,” Peskov said, following the answer Russia Europe from elsewhere in the event of a disrup-
received from the West, as “there is no positive tion in transits. But it is unclear where this gas
response in this document on the main issue,” could come from, given the current tightness of
referring to Ukraine’s potential Nato member- the global gas market. Gas futures spiked on Jan-
ship. But he added that Moscow needed time to uary 24, with the February delivery contract at
analyse the US document and would not “rush the Dutch TTF gas hub climbing by 24%. It had
into assessments.” mostly held this ground as of the end of trading
Russia has amassed a force of 100,000 troops on January 27.™
PROJECTS & COMPANIES

Cameron LNG downsizes expansion plan

LOUISIANA US-BASED Sempra Energy and its partners intends to replace its primary gas-driven tur-
have downsized its plans for the expansion of bines at Train 4 with e-drive compression tech-
their Cameron LNG export terminal in Louisi- nology, similar to what is deployed at Freeport
ana. Along with majority owner Sempra Infra- LNG, elsewhere on the US Gulf Coast.
structure, the Cameron LNG project includes The companies estimate that this would
Mitsui & Co., Mitsubishi, TotalEnergies and reduce on-site emissions from Train 4 by 44%
NYK Line. compared with the previous design. Including
In a filing with the US Federal Energy Reg- offsite emissions from purchased power used to
ulatory Commission (FERC) last week, the run the train, they estimate that their new design
Cameron LNG partners proposed an expan- for Train 4 would reduce emissions by around
sion involving one 6.75mn tonne per year (tpy) 13% compared with their original plan.
train. This marks a scaling down from a previous Cameron’s three existing trains have the
expansion plan involving two trains with a com- capacity to produce a combined 13.5mn tpy.
bined capacity of 10mn tpy. Plans for a proposed The proposed amendment is not surprising,
fifth LNG storage tank would also be scrapped as with Sempra saying in June 2021 that the scope of
a result of the amended expansion. the Cameron LNG expansion could be reduced.
The two-train expansion had been approved The company also backed away from its proposed
by the FERC in 2016. However, the project Port Arthur LNG terminal in Texas, saying it
partners now estimate that the regulator could would prioritise the expansion of Cameron LNG.
approve the permit amendment by January Sempra said last year that it was pushing
2023, which would allow construction to begin back a final investment decision (FID) on Port
by April of that year. Arthur to 2022. It also indicated in late 2021
The companies anticipate that the proposed that a second planned LNG terminal in Mexico,
design changes will lower the greenhouse gas Topolobampo, had potential to jump ahead of
(GHG) emissions associated with the project Port Arthur in its queue of LNG projects that are
while boosting the expansion’s reliability. It yet to be developed.™

P12 www. NEWSBASE .com Week 04 27•January•2022