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e exploration phase will last for a maxi- mum of nine years, a er which the concession could be extended to 35 years for development and production. Abu Dhabi National Oil Co. (ADNOC) has the customary option to take a 60% stake in the event of a commercial dis- covery. In the meantime, Eni will hold the 70% majority stake and operating role.
Partex has long punched above its weight, working alongside ExxonMobil, Royal Dutch Shell, Total, ADNOC, Oxy, India Oil Corp. (IOC), Petrobras and Sonangol among others,
and was part of the Abu Dhabi Company for Onshore Operations (ADCO, now ADNOC Onshore), until the 75-year concession expired in 2014.
It was not included in the reshaped ADNOC Onshore despite having sought to take a stake in the new joint venture. At the time, senior exec- utive Fernando Alves told NewsBase that while Partex’s “size was not at all adequate for these sorts of terms of negotiation ... Partex’s objective [was] to have a participation while remaining as active as we always have been,” he added.
EAST ASIA
Hong Kong power utilities lock in long-term LNG supply
PROJECTS & COMPANIES
HONG Kong Electric (HK Electric) and Castle Peak Power Co. (CAPCO) have signed two deals covering both long-term supplies for their Hong Kong O shore LNG terminal project as well as its regasi cation infrastructure.
e two Hong Kong-based power utilities said on June 21 that they had signed a long-term supply agreement with Royal Dutch Shell. Shell Eastern Trading will deliver the supplies to the Hong Kong O shore LNG terminal once it has been completed. While the LNG supplies will come from Shell’s global portfolio, no further details were provided. Reuters suggested that the super-major might supply 1.2m tonnes per year (t/y) for 10 years from 2020, referring to unnamed industry reports cited in one of its own reports from March 2018.
e power companies, meanwhile, said in a separate statement that they had reached a long- term charter agreement with Japan’s Mitsui OSK Lines (MOL) for the Challenger oating storage and regasi cation unit (FSRU). e FSRU, which can store up to 263,000 cubic metres of LNG, will supply natural gas to HK Electric and CAPCO’s thermal power plants (TPPs) via two separate
subsea pipelines. MOL will operate and main- tain both the FSRU and a jetty and will provide port services.
CAPCO is a joint venture of CLP Power Hong Kong and China Southern Power Grid International), which is in turn a wholly owned subsidiary of China South- ern Power Grid.
Following the lead of mainland China’s cen- tral government, Hong Kong is pushing for greater use of gas in its primary energy mix. e city government wants to li gas’ share of the power mix from 22% as of 2012 to about 50% by 2020. Hong Kong’s current power plants use coal or gas imported from the international market or from the mainland.
“ e FSRU vessel, together with the jetty and submarine pipelines, will enable us to have access to diverse gas sources for cost-competitive LNG supplies,” HK Electric managing director Wan Chi-tin said. “ e new LNG terminal project will provide HK Electric with greater exibility and a new channel for Lamma Power Station to obtain natural gas, easing the pressing need to enhance the security of gas supply.”
Week 25 26•June•2019 w w w . N E W S B A S E . c o m P7
