Page 13 - GLNG Week 13 2021

GLNG AMERICAS GLNG

Corpus Christi Train 3 start-up approved

PROJECTS & US LNG exporter Cheniere Energy has received executives said they would need to be sure of
COMPANIES permission from the US Federal Energy Regula- attractive returns and a certain amount of con-
tory Commission (FERC) to bring the third train tracted volumes – both for the expansion project
at its Corpus Christi LNG export terminal on the and the company’s entire portfolio – before mak-
Texas Gulf Coast into commercial service. ing a final investment decision (FID). That said,
The train has already been operating in test Cheniere’s CEO, Jack Fusco, said he expected
mode for months. Stage 3 at Corpus Christi to be one of the most
Each train at the facility – which is the only economic US LNG projects to date, suggesting
greenfield liquefaction terminal to be built in the he is confident that the project will be competi-
US to date and did not involve an existing import tive enough to go ahead.
plant being converted to exports – has a capacity Houston-based Cheniere remains the largest
of 5mn tonnes per year (tpy). However, the com- US exporter of LNG, having been the first in the
pany is able to boost each train’s capacity through Lower 48 states to begin exports of the super-
debottlenecking. chilled fuel in 2016.
Cheniere has also proposed a new phase of The company confirmed this week that it
expansion at Corpus Christi that would involve has reached substantial completion at Corpus
up to seven midscale liquefaction trains with a Christi Train 3. Engineering, procurement and
combined capacity of around 10mn tpy. This construction (EPC) contractor Bechtel has now
would mark a shift away from Cheniere’s model handed over control of Train 3 to Cheniere.
at both the Sabine Pass and Corpus Christi This comes as Cheniere continues to work
terminals. The coronavirus (COVID-19) pan- on Train 6 at the Sabine Pass export terminal
demic delayed the company’s plans to sanction in Louisiana. Indeed, Fusco said recently that
the Stage 3 expansion. During its recent earn- he expects the sixth train at Sabine Pass to enter
ings call for the fourth quarter of 2020, Cheniere service by the end of 2021.™

AUSTRAL ASIA

Santos takes Barossa FID

INVESTMENT THE Santos-led consortium developing the Santos managing director and CEO Kevin
Barossa natural gas and condensate field has Gallagher said the Barossa FID was consist-
reached a final investment decision (FID) on ent with the company’s strategy for disciplined
the $3.6bn project that lies offshore Australia’s growth utilising existing infrastructure around
Northern Territory. the company’s core assets.
Santos said on March 30 that the FID had “Our strategy to grow around our five core
also kick-started the $600mn investment in the asset hubs has not changed since 2016. As we
Darwin LNG life extension and pipeline tie-in enter this next growth phase, we will remain dis-
Santos said that the projects, which will expand the facility’s life for ciplined in managing our major project costs,
FID had also kick- around 20 years. consistent with our low-cost operating model,”
started the $600mn The Barossa development will comprise a Gallagher said.
investment in the floating production, storage and offloading Barossa’s FID is the final condition required
Darwin LNG life (FPSO) vessel, subsea production wells, sup- for completion of the 25% equity sell-downs
extension and pipeline porting subsea infrastructure and a gas export in Darwin LNG and Bayu-Undan to SK E&S,
tie-in projects. pipeline tied into the existing Bayu-Undan-to- which is also a partner in Barossa. Completion
Darwin LNG pipeline. First gas production is of the SK transaction is anticipated to occur
targeted for the first half of 2025. at the end of April, with Santos expecting to
Santos, which operates the 3.7mn tonne per receive around $200mn in net proceeds from
year (tpy) Darwin LNG plant, described the the transaction.
Barossa project as one of the “lowest cost” new Santos and JERA continue to progress talks
LNG supply projects in the world and said it on the sale of a 12.5% interest in Barossa to the
would give Darwin LNG a competitive advan- Japanese trader. The completion of the sell-
tage in a tightening global market. downs will see Santos’ interests in Bayu-Undan
RBC Capital Markets analyst Gordon and Darwin LNG fall to 43.4%, while its stake in
Ramsay told the Sydney Morning Herald that Barossa will drop to 50%.
the company was targeting production costs Australian Resources Minister Keith Pitt
of $2 per mmBtu ($55.32 per 1,000 cubic described the Barossa FID as a “tremendous
metres), “making it the lowest cost new source show of confidence” in Australia’s long-term
of LNG supply in the Australian region” at resources future, adding: “It is also a great
$5.50 per mmBtu ($152.13 per 1,000 cubic sign that oil and gas market conditions have
metres). improved.”™

Week 13 01•April•2021 www. NEWSBASE .com P13