Page 9 - GLNG Week 03 2022
P. 9

GLNG                                           AMERICAS                                               GLNG


       Woodside signs preliminary agreement




       on Commonwealth LNG supply deal




        PROJECTS &       AUSTRALIA’S Woodside Energy announced on  LNG shipments from the project would then
        COMPANIES        January 19 that it had signed a heads of agree-  begin in the second quarter of 2026 – the same
                         ment (HoA) with Commonwealth LNG to  time that Woodside’s supply agreement would
                         negotiate a supply deal from the latter’s proposed  kick in if it is finalised based on current plans.
                         liquefaction terminal on the US Gulf Coast.  Woodside’s announcement noted that Com-
                           The non-binding HoA paves the way for  monwealth had been working to lower the cost
                         the two companies to negotiate for Woodside  of LNG, with comments from both companies
                         to purchase 2.0mn tonnes per year (tpy) from  suggesting these efforts had paid off.
                         Commonwealth LNG over a period of 20 years,   “This HoA is testament that Commonwealth’s
                         starting in the second quarter of 2026. Woodside  approach to lowering the cost of LNG produced in
                         noted that its offtake obligation could be reduced  the US is gaining prominent support,” stated Com-
                         or even eliminated if Commonwealth lines up  monwealth LNG’s founder and CEO, Paul Varello.
                         other buyers. Conversely, it would also have the   “This HoA with Commonwealth secures
                         option to increase its purchases by an additional  access to competitive LNG in the Atlantic Basin
                         500,000 tpy of LNG.                  and provides Woodside with the ability to build
                           Commonwealth LNG will have the capacity  market scale through acquiring low-cost supply,”
                         to produce 8.4mn tpy of the super-chilled fuel.  said Woodside’s CEO, Meg O’Neill.
                         According to Commonwealth LNG’s website, a   Commonwealth says on its website that it will
                         final investment decision (FID) on the terminal  use innovative techniques alongside a proven
                         is being targeted for early 2023, having been  construction model in order achieve its goals of
                         pushed back previously owing to the recent drop  being a low-cost supplier and reducing risk for
                         in energy demand – which has since reversed.  investors and customers.™

                                                          ASIA

       Work begins on Hai Lang LNG-



       to-power project in Vietnam





        PROJECTS &       CONSTRUCTION has begun on the first phase  Energy joined the consortium led by US-based
        COMPANIES        of the Hai Lang LNG-to-power project in Viet-  Energy Capital Vietnam (ECV) in December
                         nam, according to a January 15 government  to develop an LNG-to-power project in Mui Ke
                         announcement.                        Ga, Binh Thuan Province. And last week, Japan
                           The project is located in Quang Tri Province.  Petroleum Exploration (Japex) announced
                         It will have a power generation capacity of 1.5  that it would participate in development of the
                         GW and will run on regasified LNG that will be  Northern Vietnam LNG terminal. (See GLNG
                         imported via a receiving terminal with a capacity  Week 02)
                         of 1.5mn tonnes per year (tpy).        None of Vietnam’s new LNG projects are yet
                           The project developers are Vietnam’s T&T  operational. The country is anticipated to begin
                         Group and South Korea’s  Korea Southern  importing LNG this year as it seeks to replace
                         Power (Kospo), Hanwha Energy and Korea  coal-fired power generation with cleaner-burn-
                         Gas (Kogas). T&T will contribute 40% of the  ing natural gas. Indeed, the Thi Vai LNG termi-
                         investment capital required for the project while  nal in Ba Ria-Vung Tau Province was reported to
                         Hanwha, Kospo and Kogas will contribute 60%  be close to completion at the end of 2021.
                         between them. Hai Lang is estimated to cost   Vietnam has committed to phasing out coal
                         VND54bn ($2.4bn).                    and not building or investing in new coal power
                           The Vietnamese government approved con-  capacity, and has also pledged to achieve net-
                         struction of the first phase of Hai Lang in Octo-  zero greenhouse gas (GHG) emissions by 2050.
                         ber, and the project is expected to be ready by  The country’s demand for electricity is forecast
                         2026-27.                             to rise by 10% per year in the coming years,
                           This is not the only LNG project being devel-  while its LNG imports are projected to expand
                         oped with the help of foreign investors, including  to 10mn tonnes by 2030 and 15mn tonnes by
                         other Asian companies, in Vietnam. Thailand’s  2035 as it seeks to replace demand for coal with
                         B.Grimm Power and German-based Siemens  gas and other energy sources.™

       Week 03   21•January•2022                www. NEWSBASE .com                                              P9
   4   5   6   7   8   9   10   11   12   13   14