Page 9 - GLNG Week 31 2021
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GLNG AFRICA GLNG
Air Products to supply MCHEs
for NLNG’s Train 7 project
PROJECTS & US-BASED Air Products has agreed to supply provided MCHEs and process technology for
COMPANIES heat exchangers for the Nigeria LNG (NLNG) the consortium’s six existing production trains,
consortium’s Train 7 project. making its first delivery to Train 1 in 1999 and its
According to a company statement, Air Prod- sixth delivery to Train 6 in 2007.
ucts has won a contract for the equipment from NLNG is the operator of a gas liquefaction
Saipem-Chiyoda-Daewoo (SCD), the Italian-led plant on Bonny Island. The facility has six oper-
joint venture that is serving as engineering, pro- ational production trains capable of turning out
curement and construction (EPC) contractor a total of 22.5mn tonnes per year of LNG, and its
for the project. Under the contract, the company capacity is set to rise to 30mn tpy as a result of the
will provide main cryogenic heat exchangers Train 7 project. This scheme envisions the con-
(MCHEs) for two new gas liquefaction units, struction of a seventh production train that can
including an entire new LNG production train turn out 4.2mn tpy, as well as the debottleneck-
as well as a combined liquefaction facility, as well ing of existing trains, which will add another
as process technology for both units. 3.4mn tpy of capacity.
Air Products has not disclosed the value of Equity in the consortium is divided between
the deal. But it has said that it intends to build state-owned Nigerian National Petroleum Corp.
the MCHEs at its manufacturing facility in Port (NNPC) with 49%; Royal Dutch Shell (UK/
Manatee, Florida. Additionally, it has stated that Netherlands) with 25.6%; TotalEnergies (France)
it will deliver the equipment in 2023. with 15%, and Eni (Italy) with 10.4%. The part-
This is not Air Products’ first time working ners began production in 1999 and broke ground
on an NLNG-related project. The company also on the Train 7 project in June of this year.
AMERICAS
Tellurian’s latest offtake deal almost
covers Driftwood LNG first phase
PROJECTS & US LNG developer Tellurian announced last focus on financing the project. The company is
COMPANIES week that it had signed a sales and purchase targeting early 2022 for giving its engineering,
agreement (SPA) with Royal Dutch Shell for procurement and construction (EPC) contrac-
offtake from its planned Driftwood LNG export tor, Bechtel, notice to proceed.
terminal in Louisiana. Driftwood would have a total capacity of
The SPA is the third that Tellurian has final- 27.6mn tpy from up to 20 small liquefaction
ised in the past 10 weeks and brings the compa- trains built in four phases. The company has
ny’s total offtake commitments to 9mn tonnes now opted for a first phase consisting of two
per year – covering almost all of Driftwood’s first plants, each with four trains – the smaller of
phase of 9.2mn tpy. two options it had been considering for this
The deal covers the sale of 3mn tpy of LNG phase.
to Shell over a 10-year period – similar to The SPA comes shortly after Tellurian and
agreements with commodity traders Vitol and France’s TotalEnergies recently terminated a
Gunvor that Tellurian has announced in recent supply agreement that would have also seen the
weeks. In line with those two agreements, French company become an equity participant
the LNG that will be supplied to Shell will be in Driftwood. In a filing with the US Securities
indexed to a combination of two indices – the and Exchange Commission (SEC) last month,
Japan Korea Marker (JKM) and the Dutch Title Tellurian said the agreement had been cancelled
Transfer Facility (TTF), each netted back for because it was “not consistent” with the com-
transportation charges. mercial deals it had signed with other parties.
Tellurian said the offtake agreements are This also illustrates its shift away from an equi-
sufficient to support the launching of its first ty-based financing model for Driftwood to one
two plants at Driftwood and that it would now based on offtake agreements.
Week 31 06•August•2021 www. NEWSBASE .com P9
