Page 8 - GLNG Week 11 2022

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China resells US LNG cargoes to Europe

INVESTMENT CHINA is reported to have resold a handful of LNG cargoes, as previously reported resales were
US LNG cargoes to Europe as price trends and shipped – or are still due to be shipped – from
Russia’s war in Ukraine continue to reroute trade China.
flows. European gas typically trades at a discount The tender came after European gas prices
to LNG in North Asia, but the reversal of this is surged to record highs on fears of a disruption
prompting changes of plans among buyers and in Russian gas flows to the continent. Prices
sellers of LNG as well. then declined as flows remained stable, and
Citing traders familiar with the matter, Asian LNG price trends have tracked Euro-
The cargoes are due Bloomberg reported on March 15 that state- pean gas prices. Unipec held the tender despite
to be loaded from the owned Sinopec, via its Unipec trading arm, had Beijing calling on Chinese importers to secure
Calcasieu Pass LNG sold at least three cargoes for delivery between more fuel on concerns over war-related supply
terminal in the coming now and June to European buyers. The cargoes disruptions.
weeks. were sold through a tender that closed late last Indeed, the risk of disruption remains high.
week, according to the traders. However, given its proximity to the war and
This marks the continuation of a trend that its reliance on Russian gas, Europe finds itself
emerged at the start of this year, whereby Chi- more vulnerable to potential gas flow interrup-
nese oil and gas companies are seeking to resell tions. In the longer term, the European Union
excess cargoes of LNG in markets where they is committed to dramatically reducing its
would fetch a higher price. dependence on Russian gas, which could help
The shipments are due to be loaded from the drive further gas price increases. And if gas
Calcasieu Pass terminal on the US Gulf Coast, prices are significantly higher in Europe over
operated by Venture Global LNG, with which the coming months and beyond, Sinopec and
Sinopec has an offtake agreement. This repre- other Chinese buyers could seek to resell more
sents a new development in Chinese resales of of their scheduled LNG cargoes.™

AMERICAS

LNG Canada receives first

major inlet facilities module

PROJECTS & LNG Canada has announced that the first inlet facility, where a number of large infrastructure
COMPANIES facilities module has arrived at its project site in pieces have been installed in recent months. The
Kitimat, British Columbia. The critical infra- project is now approaching close to 60% com-
structure piece measuring 35 metres high and pletion, according to LNG Canada’s statement.
weighing 4,618 tonnes is the first of over a dozen “This is a very important year for us, with
process modules built for the LNG Canada a pace of construction not seen previously.
export terminal. We’re making excellent progress as we advance
The inlet facilities module will be the entry through construction and prepare for 40 years
point for natural gas delivered to the site via the of safe operations. We remain committed to
Coastal GasLink pipeline, which is also under delivering our first cargo by the middle of this
construction. It will serve to evenly distribute decade,” said LNG Canada’s CEO, Peter Zebedee.
gas at a constant flow to treatment facilities and The terminal was sanctioned in 2018. It is
processes, such as liquefaction and storage, the expected to be a supplier to Asian markets seek-
LNG Canada consortium said. ing to replace coal with lower-carbon LNG, and
In the coming days, the inlet facilities module aims to benefit from a direct route to Asia while
will be relocated from the project’s new material competitors on the US Gulf Coast have to send
offloading facility to the LNG processing site. their cargoes via the Panama Canal.
The module will be transported along the pro- Upon completion the terminal will have a
ject site’s purpose-built haul road with the use of production capacity of 14mn tonnes per year
large self-propelled modular transporters. The (tpy) from two trains. The facility will also have
module will then be positioned on a custom-de- the potential to be expanded to four trains.
signed foundation. LNG Canada is a joint venture led by Shell,
The announcement marks a new construc- along with Asian partners Petronas, PetroChina,
tion phase for Canada’s first major LNG export Mitsubishi and Korea Gas (KOGAS).™

P8 www. NEWSBASE .com Week 11 18•March•2022