Page 10 - NorthAmOil Week 14 2022

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Shell considers options for

expansion of LNG Canada

BRITISH SHELL is carrying out a feasibility study for a green light it would double LNG Canada’s export
COLUMBIA major expansion of its LNG Canada project capacity to 28mn tonnes per year (tpy).
in Kitimat, British Columbia, amid growing LNG Canada is the first major Canadian LNG
demand for LNG. export terminal to proceed to construction. The
The super-chilled fuel was already benefiting initial phase of the terminal is expected cost
from Asian countries seeking cleaner alterna- CAD18bn ($14bn) to build, and shipments to
tives to coal. Now, as Europe scrambles to replace Asia are anticipated to begin in 2025. The facility
Russian gas imports in the wake of the war in will export 14mn tpy of LNG from its first phase.
Ukraine, global competition for LNG looks set Additional LNG exports from Canada to Asia
to intensify further still. could help free up supplies from Qatar, the US
“It raises the urgency for more LNG sup- and other producers to be shipped to Europe.
ply because Europe and the world desperately “In our mind, we always wanted to be able
needs it,” Shell’s head of integrated gas and to have that option to go into phase two,” Sawan
renewables division, Wael Sawan, told the said. “Now we need to be able to make sure that
Globe and Mail. “There is a lot of capacity that it makes sense on paper before we make that
has to be built up to be able to meet the growing investment commitment.”
LNG demand.” The BC government is encouraging LNG
Against this backdrop, the partners in LNG Canada to consider electric-drive technology to
Canada are conducting a cost-benefit analysis liquefy gas for Phase Two if it goes ahead. While
for Phase Two of the facility to potentially use there is not sufficient infrastructure yet to pro-
lower-carbon hydroelectricity from BC Hydro vide hydroelectric power for electric-drive tech-
to power the liquefaction process at the plant, nology at the site, Sawan said the LNG Canada
according to Sawan. If Phase Two is given the consortium would explore the possibility.™

Venture Global to buy gas from

NextEra for Plaquemines LNG

US US LNG producer Venture Global LNG has Calcasieu Pass export plant, also in Louisiana.
reportedly reached an agreement to purchase However, Plaquemines would be double the size,
natural gas from a unit of NextEra Energy for with an eventual capacity of 20mn tonnes per
its planned Plaquemines LNG export plant on year compared with 10mn tpy at Calcasieu pass.
Louisiana’s Gulf Coast. Plaquemines is estimated by analysts to cost
The terms of the agreement have not been around $8.9bn to build. Venture Global is also
Plaquemines would disclosed, but according to an April 4 Reuters proposing to build the Delta and CP2 LNG
be Venture Global’s report, Venture Global filed the agreement export terminals in Louisiana, each with a capac-
second LNG terminal in with the US Department of Energy (DoE) on ity of 20mn tpy. If all of its planned facilities are
Louisiana. March 22. The deal follows an earlier gas supply built in line with current plans, it will eventually
agreement with Spain’s Repsol, which is set to have 70mn tpy of LNG export capacity in oper-
supply Venture Global with 18.25bn cubic feet ation in the state.
(516.8mn cubic metres) per year over a three- Venture Global recently became the top US
year period. supplier to China by contracted volumes. In
Initial work on the site of the Plaquemines November 2021, the company reached a deal
terminal, located about 20 miles (32 km) south with China’s state-owned Sinopec to supply it
of New Orleans on the Mississippi River, began and a subsidiary with a combined 7.5mn tpy
last year. A final investment decision (FID) is of LNG. Then in December, it also reached a
anticipated this year and the facility is expected deal with state-owned China National Off-
to be operational in 2024. Zachry Group and shore Oil Corp. (CNOOC) to supply 3.5mn
KBR have been selected to build the first phase tpy of LNG.
of the modular facility. The company has also reached agreements
The design for Plaquemines will be the same to sell LNG to Shell, BP, Italy’s Edison, Portugal’s
as that of Venture Global’s newly operational Galp Energia and Poland’s PGNiG.™

P10 www. NEWSBASE .com Week 14 07•April•2022