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GLNG AMERICAS GLNG
Tellurian reportedly in supply
talks with Asian buyers
PROJECTS & US-BASED Tellurian is reportedly in talks with customers interested in buying 12mn tonnes
COMPANIES unidentified Asian buyers to sell almost half of its per year of output from Driftwood. The facil-
output from its proposed Driftwood LNG termi- ity would produce 27.6mn tpy in total if it goes
nal on the Gulf Coast. ahead.
This comes after the planned Driftwood According to Souki, the deals would be final-
facility was dealt a blow this year when previous ised during the first half of 2021, with construc-
talks with India’s Petronet LNG failed to result tion on the terminal beginning in the middle of
in a supply and investment deal amid the global the year. He also said Tellurian would no longer
downturn in LNG demand and prices. A mem- employ MoUs as a precursor to more in-depth
orandum of understanding (MoU) between the talks, after the failure of the company’s MoU with
two companies expired in July, and while it was Petronet to lead to a firm deal.
subsequently renewed, comments from Petr- For now, France’s Total remains Driftwood’s
onet’s director of finance, Vinod Kumar Mishra, only customer.
indicate that the Indian firm is not likely to move Separately, it has emerged that Tellurian com-
forward with a deal at this time. pleted its first ever LNG cargo trade in the third
“I want to clarify again that this is a quarter of this year. A report the company filed
non-binding agreement, and there is no with the US Securities and Exchange Commis-
obligation on either of the parties to do any- sion (SEC) showed that Tellurian’s marketing
thing. This is just an agreement to explore the arm bought the cargo in July and subsequently
possibilities of any deal, which so far has not sold it to an unrelated third party, earning around
emerged,” he said. $7mn in the transaction. Further details were not
In the meantime, Tellurian is also turning provided, apart from the fact that the trade was
its attention to other would-be buyers. Last made under a master agreement reached in April
week, Tellurian’s chairman, Charif Souki, told 2019 in an effort to earn revenue and prepare for
Bloomberg that his company had other potential more future trading activity.
ASIA
CNOOC to expand Binhai LNG terminal storage
PROJECTS & CHINA National Offshore Oil Corp. (CNOOC) November 17 that two 200,000 cubic metres
COMPANIES intends to add 1.62mn cubic metres of LNG LNG storage tanks had been completed and
storage capacity at its Binhai terminal in Jiangsu commissioned at CNOOC’s Shanghai terminal.
Province. Natural Gas World quoted the state power gen-
The company will build six 270,000 cubic erator as saying the additional tanks brought the
metre tanks, the State-owned Assets Supervision terminal’s storage capacity up to 895,000 cubic
and Administration Commission of the State metres.
Council (SASAC) announced on November 18, China is ramping up its purchases both to
adding that construction is slated for completion meet increasing demand during the coun-
in 2023. try’s winter heating season, which started on
SASAC said the Henan provincial govern- November 15 and runs until March 15, as
ment would invest in two of the tanks and noted well as facilitate a wider trend of coal-to-gas
that this was the first time a local government conversions.
had invested in LNG infrastructure beyond its The country’s main economic planner, the
administrative region. National Development and Reform Commis-
The first phase of the Binhai LNG terminal, sion (NDRC), warned last month that national
which is slated to come online in 2021, involves gas supplies could be tight during December and
the construction of a 3mn tonne per year (tpy) January.
receiving terminal, four 220,000 cubic metre It also emerged in October that the Chinese
storage tanks, supporting pipeline infrastructure Ministry of Ecology and Environment intended
and a thermal power plant (TPP). to replace coal with cleaner sources of energy –
In related news, China National Nuclear including gas – in the heating systems of 7.09mn
Corp. (CNNC) reportedly announced on households by the end of the month.
P16 www. NEWSBASE .com Week 46 20•November•2020
