Page 6 - NorthAmOil Week 14 2022

NorthAmOil COMMENTARY NorthAmOil

More momentum for

new US LNG projects

Several more steps forward were taken by various

proposed US LNG projects over the past few days

as additional interest in the fuel continues to
drive momentum

US GULF COAST IT has been another extraordinary week for the deployment schedule than today’s floating liq-
US LNG industry, with new interest in securing uefaction vessels and onshore liquefaction
WHAT: supplies continuing to drive advances among terminals”.
Several more steps proposed projects that have yet to reach the NFE hopes that this approach, coupled with
forward for various final investment decision (FID) stage. Momen- the advantage of an offshore terminal where
proposed US LNG projects tum has already been building over the past few tankers are able to dock and directly load LNG,
have been announced in weeks, especially since Russia invaded Ukraine will position it well to meet rising gas demand
recent days. in late February, and it now appears to be picking in the not-too-distant future. Procurement of
up even more pace. all long-lead materials is complete, it said, and
WHY: Among new developments over the past modular assembly of equipment is already
Europe’s pivot away few days, New Fortress Energy (NFE) applied underway. Subject to the receipt of all required
from Russian gas has to build the US’ first offshore liquefaction ter- permits and approvals, NFE is targeting start-up
dramatically increased minal, a preliminary agreement was signed on of the facility in the first quarter of 2023. This
interest in securing development of a second phase of the existing would be considerably less time than would
supplies of LNG. Cameron LNG export plant and NextDecade be required to build a new onshore LNG facil-
unveiled a new offtake agreement associated ity. The rapid turnaround time is attributed by
WHAT NEXT: with its Rio Grande project. NFE’s chairman and CEO, Wes Edens, to the
Final investment This is on top of other developments previ- fact that the permitting process for offshore
decisions on a greater ously reported by NewsBase, such as Tellurian infrastructure is less complex than for onshore
number of US LNG launching construction on Driftwood LNG LNG terminals. He cited other advantages for
projects now look more and several new supply agreements between offshore LNG, including being able to use ships
likely. US LNG producers and overseas buyers. (See for storage instead of having to build new stor-
NorthAmOil Week 13) While demand for LNG age tanks, as well as avoiding the sort of pipeline NFE has acquired
had been picking up even prior to the war in capacity constraints that onshore LNG plants
Ukraine, and a series of offtake agreements can struggle with. three jack-up
were signed in 2021, supporting additional US “This announcement demonstrates the flexi- rigs and two
liquefaction capacity, new projects appear to be bility, efficiency and significance of our innova-
advancing much faster than before. tive Fast LNG solution to bring more affordable, deepwater drill
reliable and cleaner fuels to customers around
Fast progress the world,” Edens stated. “With rapid deploy- ships since early
NFE said on March 31 that it had concur- ment, this project can play a significant role
rently filed applications with the US Maritime in supporting our nation’s commitment to our 2021 that will be
Administration (MARAD), the Coast Guard European allies and their energy security as well recycled into LNG
and the Department of Energy (DoE) as it seeks as support our efforts to reduce emissions and
to build its offshore LNG terminal off the coast energy poverty around the world.” facilities.
of Louisiana. The project would have an export NFE has acquired three jack-up rigs and
capacity of around 2.8mn tonnes per year (tpy) two deepwater drill ships since early 2021 that
of LNG. will be recycled into LNG facilities with the
The company intends to deploy its Fast LNG installation of liquefaction equipment. The
design, which combines “the latest advance- company has also reached terms for a fourth
ments in modular, mid-size liquefaction tech- rig, according to Bloomberg. It is aiming to
nology with jack-up rigs or similar offshore develop up to 11mn tpy of liquefaction capac-
infrastructure”, according to its statement. NFE ity within a couple of years, the news service
says this allows for “a much lower cost and faster reported.

P6 www. NEWSBASE .com Week 14 07•April•2022