Page 14 - GLNG Week 48 2020

GLNG AMERICAS GLNG

Sempra to combine LNG subsidiaries

PROJECTS & CALIFORNIA-BASED Sempra Energy has which involves a liquefaction terminal in Mexico
COMPANIES announced this week that it is simplifying its that will use US gas as feedstock. The project is
energy infrastructure business – a plan that being developed by a joint venture between Sem-
entails combining its two LNG subsidiaries into pra LNG and IEnova. In the US, Sempra LNG
a single unit. operates the Cameron LNG terminal in Louisi-
Under the plan, US subsidiary Sempra LNG ana and is proposing to build Port Arthur LNG
and Mexico’s Infraestructura Energética Nova facility in Texas.
(IEnova) will be unified into Sempra Infrastruc- Subject to receiving all the necessary author-
ture Partners after the parent company acquires isations, Sempra anticipates completing its
the 29.8% of the IEnova shares it does not own. acquisition of IEnova shares by the end of the
Sempra made a final The deal values IEnova at $6.13bn. first quarter of 2021. It also said it intends to
investment decision in The creation of the new unit is intended to sell a non-controlling interest in Sempra Infra-
mid-November on the simplify and add scale to Sempra’s North Amer- structure Partners in order to fund the entity’s
Energía Costa Azul LNG ican infrastructure business, the company said growth, which is expected to be geared towards
export project. in a December 2 statement. Sempra Infrastruc- the energy transition.
ture Partners will focus on the development of “By focusing on the critical need for new
North American LNG export infrastructure, as energy infrastructure right here in North
well as natural gas infrastructure and renewable America, both Sempra LNG and IEnova have
energy generation. Its LNG portfolio will consist created a significant pipeline of development
of roughly 45mn tonnes per year (tpy) of LNG projects that are expected to provide differen-
export capacity in development, construction tiated growth for decades to come,” Sempra’s
or operation on the North American Pacific and chairman and CEO, Jeffrey Martin, said. “More
Gulf Coasts, the parent company added. importantly, this will provide an improved plat-
This comes after Sempra made a final invest- form for innovation and potential new invest-
ment decision (FID) in mid-November on the ments in renewables, hydrogen, energy storage
Energía Costa Azul (ECA) LNG export project, and carbon sequestration.”™

Tellurian pulls Permian pipeline application

PIPELINES & LNG developer Tellurian has asked US federal pipelines whose construction Tellurian previ-
TRANSPORT energy regulators to withdraw its application to ously said it would defer. The company’s orig-
build the Permian Global Access gas pipeline, inal plan entailed four pipelines – Driftwood,
which would connect to its proposed Driftwood Permian Global Access, Haynesville Global
LNG terminal in Louisiana. Access and the Delhi Connector. However, it
The request was made in a December 1 filing announced in a presentation in August that
with the US Federal Energy Regulatory Com- it was deferring construction of the Permian
mission (FERC), which came a day after Tellu- Global Access and Haynesville Global Access
rian announced that its president and CEO, Meg pipelines. The company did not mention the
Gentle, would leave the company. Delhi Connector in the presentation, but other
Tellurian said in the filing that “current mar- details implied that its new, scaled-back plan for
ket conditions do not support the economic the first phase of Driftwood LNG only involved
thresholds to pursue the [Permian Global the 4 bcf (113.3 mcm) per day Driftwood pipe-
Access pipeline] further at this time”. It added, line, which has already been approved.
however, that it “continues to believe that in Permian Global Access was estimated to cost
time the proposed project will provide signifi- around $4.2bn to build, compared with about
cant benefits”. The company said it would hold $2.3bn for Driftwood and roughly $1.4bn each
a new open season for the pipeline in the event for the Haynesville Global Access and Delhi
that market conditions rebound and it looks as Connector pipelines. Tellurian had initially esti-
though additional gas transportation capacity is mated that Phase 1 of Driftwood LNG would
needed. cost $27.5bn to build, but said in August that the
Permian Global Access would have had the pipeline deferrals and other optimisations would
capacity to carry up to 2bn cubic feet (56.6mn result in a cost reduction of roughly 30%.
cubic metres) per day of gas from the Permian Octávio Simões was appointed president and
Basin to the Louisiana Gulf Coast. CEO of Tellurian on November 30, replacing
The withdrawal is not altogether surprising Gentle. The reason for Gentle’s departure from
given that Permian Global Access is one of three the company has not been disclosed.™

P14 www. NEWSBASE .com Week 48 04•December•2020