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Gazprom’s Baltic gas complex likely to cost more
PROJECTS & COMPANIES
THE cost of a major new gas-processing com- plex Gazprom plans to build at the Baltic port of Ust-Luga is likely to be higher than its original $13bn budget, Russia’s Vedomosti reported on January 27.
The project is a 50:50 joint venture between Gazprom and Rusgazdobycha, a company affil- iated with Kremlin ally Arkady Rotenburg. It involves the construction of a hub capable of annually processing 45bn cubic metres of natu- ral gas into 19 bcm per year of treated gas, which will be exported via the Nord Stream 2 pipeline, along with 13mn tonnes of LNG, 3.6mn tonnes of ethane and more than 2.2mn tonnes of LPG.
Gazprom took a decision on its implementa- tion in March last year, and it is slated for com- pletion in 2023-2024.
Ethane from the project will be supplied to a nearby petrochemical plant that Rusgazdobycha plans to build on its own, via its Baltic Chemical Complex (BCC) subsidiary.
The $13bn estimate for the cost of the
gas-processing complex does not cover con- struction of a marine terminal to ship LNG and LPG to markets, or an ethane storage facility, Vedomosti reported citing BCC documents. According to Vygon Consulting, the cost of port infrastructure needed for a 13mn tonnes per year (tpy) LNG export plant ranges between $0.8 and $1.4bn, while the necessary LPG infrastructure would cost up to $0.4bn.
As such, the project’s overall budget could reach as high as $14.8bn.
The cost of the LPG storage facility, on the other hand, is to be borne by RusGazDobycha alone. The facility will ensure uninterrupted sup- plies to the company’s petrochemical plant.
Gazprom had initially planned to build an LNG terminal only in Ust-Luga, able to export up to 10mn tpy of the super-chilled gas. It formed a joint venture with Royal Dutch Shell to develop the project, but the Anglo-Dutch major pulled out after Gazprom opted for a larger integrated processing complex instead.™
AMERICAS
Cheniere Energy celebrates 1000th LNG cargo milestone
Cheniere Energy announced today that it has produced and exported its 1000th cargo of liquefied natural gas (LNG). The 1000th cargo was exported within a four-year time period after startup, setting an industry record and making Cheniere the fastest producer in the world to reach this milestone. Cheniere has produced these 1,000 cargoes from both the Sabine Pass Liquefaction Project (SPL Project) and the Corpus Christi Liquefaction Project (CCL Project).
“Reaching 1,000 cargoes of LNG faster than any producer in history is a testament to the performance of our people and the culture of our company. Our focus on reliability and safety through the entire LNG production process enabled us to reach this milestone, while fulfilling our commitments to our foundation customers,” said Jack Fusco, Cheniere’s President and CEO. “Cheniere will continue to focus on operational excellence
to help meet growing demand for reliable, flexible, and cleaner sources of energy around the world. This achievement would not be
NEWS IN BRIEF
possible without the dedication and diligence of Cheniere’s employees, our partners and customers, and we look forward to celebrating cargo 10,000.”
Cheniere’s 1000th cargo departed on the vessel Hoegh Galleon on January 26, 2020 from Cheniere’s CCL Project. Cheniere also celebrated the 100th cargo produced at the CCL Project, which departed on the vessel Yari LNG on January 13, 2020.
The SPL Project consists of six natural
gas liquefaction trains, five of which are fully operational and one is under construction. The CCL Project, located in south Texas, consists of three trains, two of which are fully operational and one is under construction and expected to be operational in 2021. Adjacent to the CCL Project, Cheniere is developing and commercialising its Stage 3 expansion, which recently received federal regulatory authorisation.
CHENIERE ENERGY, January 27, 2020
Magnolia supplemental
final environmental impact
statement
Liquefied Natural Gas Ltd (LNGL) is pleased
to advise that the United States Federal Energy Regulatory Commission (FERC) issued the supplemental final environmental impact statement (FEIS) for the production capacity amendment to the company’s Magnolia LNG project on 24 January 2020. Magnolia LNG’s production capacity amendment, filed with FERC on 19 November 2018, would increase the total authorised production capacity
of Magnolia from the currently authorized 8mn tonnes per annum (mtpa) to 8.8 mtpa. According to the Notice of Schedule for Environmental Review issued by FERC on 26 June 2019, the federal authorisation decision deadline for this application is April 23, 2020.
In the Supplemental FEIS, FERC concluded: “Based on our analysis of the changes to the air and noise emissions and our reliability and safety analysis, we conclude that the modifications associated with the Production Capacity Amendment, with the additional mitigation measures recommended in the supplemental EIS, would continue
to avoid or reduce impacts to less than significant levels. Furthermore, we conclude that Magnolia LNG’s design of the modified facilities, with the recommended mitigation measures, would include acceptable layers of protection or safeguards that would reduce the risk of a potentially hazardous scenario
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Week 04 30•January•2020