Page 8 - NorthAmOil Week 33 2022

NorthAmOil PROJECTS & COMPANIES NorthAmOil

FERC gives Marathon more time

to convert Kenai LNG to imports

ALASKA THE US Federal Energy Regulatory Commis- Once these supplies have been secured,
sion (FERC) has granted Trans-Foreland Pipe- Trans-Foreland anticipates reaching an FID on
line, a unit of Marathon Petroleum, more time the conversion.
to convert the mothballed Kenai LNG export Once converted to imports, the facility would
terminal in Alaska to imports. The regulator’s receive up to four tankers per year of LNG, and
approval of Trans-Foreland’s request gives the its boil-off gas management system would be
company until December 2025 to complete the used to deliver gas to Marathon’s adjacent Kenai
conversion. refinery. Plans for the conversion call for the res-
The company initially had until December toration of two storage tanks at the LNG termi-
2022 to execute the project, having received nal, which have a capacity of 35,000 cubic metres
approval for the conversion in December 2020. each, as well as other equipment.
However, the project has since been beset by The Kenai facility has not operated since
delays. Indeed, Trans-Foreland now says that 2015, having previously served customers pri-
it has yet to make a final investment decision marily in Japan. The push to convert it comes as
(FID) because the coronavirus (COVID-19) a separate project is being advanced to build an
pandemic and the war in Ukraine have both LNG export terminal in Alaska. The US Depart-
contributed to poorer economic and logistical ment of Energy (DoE) published a draft supple-
conditions. mental environmental impact statement (EIS)
“Uncertainty and volatility in the global LNG on the Alaska LNG project in June, concluding
market have made it difficult for Trans-Foreland that building that proposed facility would have
to secure a suitable supply arrangement that no net impact on greenhouse gas (GHG) emis-
would provide the financial certainty necessary sions. However, it is still uncertain whether the
for the project,” the company said in an earlier project will reach FID, with the state’s Alaska
filing. However, it maintains that the project is Gasline Development Corp. (AGDC) seeking
still commercially viable and says it is actively to place it under private ownership before any
seeking “suitable” supplies. further steps are taken.™

Audubon wins offshore Salamanca contract

GULF OF MEXICO AUDUBON Engineering announced on August and offshore commissioning support, the com-
17 that it had been awarded a contract by LLOG pany said.
Exploration Offshore to support the Salamanca The column-stabilised Salamanca FPS will be
floating production system (FPS) project in the located in Block 689 in Keathley Canyon in water
US Gulf of Mexico. depths of around 6,400 feet (1,951 metres) and
The Salamanca FPS project entails repurpos- will be used to tap the Leon and Castile discov-
ing the existing Independence Hub facility in the eries. The platform will include facilities with a
first such overhaul of an existing semi-submersi- capacity to process up to 60,000 barrels per day
ble production facility in the Gulf. This approach of oil, 25,000 bpd of water and 40mn cubic feet
is expected to result in emissions reductions of (1.1mn cubic metres) per day of natural gas. Pro-
around 70% compared to the construction of duction from Salamanca is anticipated to begin
a new semi-submersible unit, bolstering the in mid-2025.
project’s environmental credentials. It is also Audubon noted that LLOG would need
believed to reduce the time and cost required to to obtain ABS A1 notation for the platform to
bring the Salamanca project online. comply with CG-ENG Policy Letter No. 01-13,
The existing facility’s hull, topside truss, Alternate Design and Equipment Standard for
cranes and lifeboats will be re-used with minor Floating Offshore Installations.
modifications. All other topside equipment – LLOG bought the idled Independence Hub
including piping, instrumentation and electrical from Genesis Energy earlier this year for around
systems – will be new. The scope of work under $40mn. The facility – once the world’s deepest
Audubon’s contract includes detailed design ser- floating production platform – had been decom-
vices as well as procurement, vendor equipment missioned in 2019 and stored at Kiewit Offshore
management, construction, pre-commissioning Services’ yard in Ingleside, Texas.™

P8 www. NEWSBASE .com Week 33 18•August•2022