Page 7 - GLNG Week 08 2021

GLNG AFRICA GLNG

Eni restarts Damietta LNG plant in Egypt

PROJECTS & ITALY’S Eni announced this week that the first authorisations and that its final closing was antic-
COMPANIES cargo since 2012 from the Damietta LNG plant ipated in the first half of March. A previous deal
in Egypt had been produced and lifted. to resolve the dispute and restart LNG exports
This comes after Eni signed agreements fell apart in April 2020 when conditions attached
with the Egyptian government, Egyptian Gen- to it were not met.
eral Petroleum Corp. (EGPC), the Egyptian The Damietta plant has a capacity of 5mn
Natural Gas Holding Co. (EGAS) and Spain’s tonnes per year (tpy). Its restart comes as Egypt
Naturgy at the end of 2020, paving the way for is trying to boost gas exports and become a
the restart. The agreements led to the settlement regional energy hub. These ambitions suffered a
of a long-running dispute between Eni, Naturgy setback last year as the coronavirus (COVID-19)
and Egyptian partners. Under the arrangement, pandemic caused demand for LNG to collapse,
Naturgy agreed to exit the Union Fenosa Gas pushing down spot prices for the super-chilled
(UFG) joint venture, which owned 80% in the fuel. Egypt is among a small group of exporters
Damietta plant, with the remaining 20% split that are particularly exposed to the spot market,
evenly between EGAS and EGPC. The new own- and was forced to curtail production owing to
ership structure will see the plant owned 50% by the drop in prices.
Eni, 40% by EGAS and 10% by EGPC. Egyptian exports – from the Idku plant,
Eni will also take over UFG’s marketing of which is operated by Royal Dutch Shell and is
natural gas in Spain, expanding its footprint in the only other liquefaction terminal in the coun-
the European market. try – have since rebounded. They stayed strong
The Italian company said this week that over the initial weeks of 2021 as winter demand
the new agreement had received all required for LNG soared.™

AMERICAS

Calcasieu Pass LNG start-up

could be ahead of schedule

PROJECTS & VENTURE Global LNG’s Calcasieu Pass export with a capacity of 0.626mn tpy, configured in
COMPANIES terminal in Louisiana could be on course to start nine blocks. The first two trains arrived at the
up ahead of schedule. The facility is targeted for Calcasieu Pass site in November, having been
start-up in late 2022 but this week, Bloomberg manufactured by Baker Hughes in Italy. Ven-
cited traders familiar with the matter as saying ture Global hailed the arrival of the trains, less
Venture Global has offered at least 12 LNG car- than 15 months after reaching a final investment
goes for loading from Calcasieu Pass between decision (FID) on the project, as representing a
October 2021 and December 2022. “step-change in LNG construction” at the time.
If the cargoes are awarded, they would be first The company would use the same modular
to be sold on the spot market from the Calcasieu design for any other projects it decides to pro-
Pass plant. Bloomberg acknowledged, however, ceed with, and indeed, it is targeting an FID on
that LNG tenders are not always awarded and Plaquemines LNG, also in Louisiana, for later
that cargoes being offered could be test ship- this year. It has also proposed two further plants
ments. Nonetheless, Venture Global’s CEO, – Delta LNG and CP2 LNG – though there has
Mike Sabel, said in December that construction been some speculation that it may seek to replace
at Calcasieu Pass was ahead of schedule. This was Delta with CP2.
attributed to the project’s modular approach to Venture Global’s reported efforts to market
construction allowing it to proceed despite the spot cargoes come as competition intensifies in
coronavirus (COVID-19) pandemic and a par- the global LNG market. However, LNG produc-
ticularly active hurricane season in 2020. ers will be hoping that recent market volatility
The 10mn tonne per year facility will consist will prompt buyers to take extra steps to ensure
of eighteen small-scale liquefaction trains, each future stability by locking in more supply.™

Week 08 26•February•2021 www. NEWSBASE .com P7