Page 9 - NorthAmOil Week 21 2022

NorthAmOil POLICY NorthAmOil

Biden administration to propose new federal

offshore development plan by June 30

US US Secretary of the Interior Deb Haaland has companies for not ramping up activity on their
confirmed that a new five-year plan for federal existing leases.
offshore oil and gas development would be pro- During a Senate Committee on Energy and
posed by June 30, the expiry date for the current Natural Resources hearing last week, Haaland
plan. Haaland also stated that after a draft of the also came under criticism from West Virginia
proposal was unveiled, there would be a period Democrat Joe Manchin for the DoI’s limited
for public comment. According to the Depart- offering of new oil and gas leases on federal land
ment of the Interior’s (DoI) timeline, the plan and in federal waters.
could be finalised by November 30. The DoI is bound by law to produce a five-
The news comes amid mounting pressure year schedule for offshore oil and gas auctions.
from Republican lawmakers, who have called for Earlier this month, the Biden administration
an increase in domestic oil production to com- shelved the final three planned federal sales
bat rising fuel prices. However, US President Joe scheduled under the current plan for the US Gulf
Biden has pushed back, saying that he wants to of Mexico and Alaska. Until a final programme is
reform the federal oil and gas programme to take put in place, the DoI cannot hold any lease sales.
its climate impact into account. Some Republican lawmakers have expressed
The debate between lawmakers from both concern that a lengthy debate could extend the
parties is playing out against the backdrop of process by another 2-3 years before a final deci-
Russia’s war against Ukraine, which has further sion is made.
pushed up oil and gas prices and put energy The last federal auction in the Gulf was held
security in the spotlight. Republicans have in November. However, a court order later
accused the Biden administration of holding annulled the sale on the grounds that the admin-
back production on federal land and in fed- istration had failed to properly account for its
eral waters, while Democrats have blamed oil climate impact.™
PROJECTS & COMPANIES

Venture Global takes FID on Plaquemines LNG

LOUISIANA US-BASED Venture Global LNG has made a financing to close globally in 2022 to date – fully
final investment decision (FID) and closed the funded the balance of construction and commis-
project financing for the first phase of its planned sioning of this first phase.
Plaquemines LNG export terminal on Louisi- “Plaquemines will build on the success of
ana’s Gulf Coast. Calcasieu Pass, which broke global records for
The FID is the first on a Gulf Coast LNG pro- speed and execution,” stated Venture Global’s
ject to be announced since Venture Global sanc- CEO, Mike Sabel. “The project has attracted
tioned its first terminal in Louisiana, Calcasieu robust financial and commercial support,
Pass LNG, in 2019. That project came online ear- which has enabled us to formally sanction
lier this year, 29 months after FID, in what the this project at a critical moment for energy
company says was record time for a large-scale, markets.”
greenfield LNG facility. Venture Global will now The company has lined up a series of offtake
seek to replicate this at Plaquemines, which will agreements covering 80% of Plaquemines’ full
use the same modular design as Calcasieu Pass, capacity. Venture Global noted that Phase One
but will be double the size, at a capacity of 20mn customers include PGNiG, Sinopec, China
tonnes per year compared with 10mn tpy at Cal- National Offshore Oil Corp. (CNOOC), Shell
casieu Pass. and EDF. Customers for Phase Two announced
Analysts had previously estimated that to date include ExxonMobil, Petronas and New
Plaquemines LNG could cost around $9bn to Fortress Energy – with those deals finalised since
build. However, Venture Global said this week mid-March as interest in US LNG has ramped
that the financing it had just closed for the ini- up.
tial phase of the project came to $13.2bn. The Venture Global added that it was now
first phase includes an “upsized” 13.33mn tpy actively seeking offtakers for its third planned
of capacity and the associated Gator Express Louisiana LNG terminal, CP2, having already
pipeline. The company said the proceeds of the struck deals with ExxonMobil and New Fortress
debt and equity financing – the largest project for this project.™

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