Page 8 - LatAmOil Week 12 2020

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Sempra had also been intending to make a deci- sion on the Port Arthur LNG project, which envisions the construction of an LNG terminal on the Texas coast, in the third quarter of 2020. But company reps said during the conference call that they could not remain committed to that deadline.
“The current economic environment may impact the schedule,” said Justin Bird, Sempra’s president.
The postponement of FID on Energía Costa Azul LNG will not affect Sempra’s non-binding LNG supply arrangements with Total (France), Mitsui & Co. (Japan) and Tokyo Gas Co. (Japan). Each of the three companies has signed a 20-year agreement to buy around 800,000 tonnes per year (tpy) of LNG from Energía Costa Azul LNG. These three agreements will allow Sempra to export 100% of output from the
plant’s first phase, which will have a production capacity of 2.4mn tpy.
Last October, Mitsui & Co. entered into a memorandum of understanding (MoU) with Sempra on the future expansion of Energía Costa Azul LNG. In the document, the two companies pledged to help each other develop LNG export capacity at the facility. They out- lined plan for building additional trains that would bring the plant’s capacity up to around 12mn tpy.
Sempra is repurposing an existing facility – namely, an LNG import terminal built by its Mexican subsidiary, IEnova – to establish a gas liquefaction and export complex on Mexico’s Pacific coast. The import facility began operat- ing in 2008 and is capable of regasifying up to 1bn cubic feet (28.32mn cubic metres) per day of LNG. ™
Sempra Energy’s subsidiary IENova built the existing Costa Azul facility (Photo: Sempra Energy)
PERU
Peru’s gas output drops after lockdown
PERU’S natural gas industry has seen produc- tion decline since March 15, when the govern- ment imposed a nationwide lockdown in the hope of containing the coronavirus (COVID- 19) pandemic.
According to data released earlier this week by PeruPetro, the national oil company (NOC), Peru’s gas fields were yielding 1.12bn cubic feet (31.72mn cubic metres) per day as of the day that the restrictions took effect. As of March 22, though, output levels were down by about 30.45% to 779mn cubic feet (22.06 mcm) per day.
The decline in production levels was steep- est at Camisea Block 88, the country’s main gas block, which holds reserves of 8.76tn cubic feet (248.1bn cubic metres). The block went from yielding 482 mmcf (13.65 mcm) per day as of
March 15 to 143 mmcf (4.05 mcm) per day as of March 22, a fall of 70.33%.
Some of the country’s fields did buck the trend. PeruPetro’s data showed that Camisea Block 56, which holds 1.67 tcf (47.29 bcm) of gas, was yielding 407 mmcf (11.53 mcm) per day on March 22. This was 4.63% up on the March 15 figure of 389 mmcf (11.02 mcm) per day.
Output levels at Camisea Block 56 are impor-
tant, as the site supplies feedstock to Peru LNG,
a gas liquefaction plant and export terminal in Pampa Melchorita, as well as fuel to the domes-
tic market. PeruPetro did not comment on out-
put levels at Peru LNG, but it did say that the facility had not loaded any new cargoes since mid-March. Peru LNG loaded three cargoes in
the first half of the month and dispatched the
third to China on March 13, it said. 
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