Page 12 - AsianOil Week 21 2022
P. 12
AsianOil EAST ASIA AsianOil
South Korean firms line
up LNG supply deals
PROJECTS & TWO South Korean companies signed sale and wind project,” stated TotalEnergies’ president of
COMPANIES purchase agreements (SPAs) this week to buy gas, renewables and power, Stéphane Michel.
LNG from international sellers. Hanwha’s CEO, Jung In Sub, said it was “sig-
On May 24, France’s TotalEnergies nificant” that his company had secured business
announced that it had agreed to sell 600,000 stability through the long-term supply deal amid
tonnes per year (tpy) to South Korea’s Hanwha a volatile LNG market.
Energy over a 15-year period starting in 2024. A Under the other deal, Cheniere will supply
day later, Cheniere Energy signed an SPA with a LNG to Posco, which is South Korea’s largest
subsidiary of Posco Holdings covering the sup- steelmaker and also owns the country’s first pri-
ply of 400,000 tpy of LNG over a 20-year period vate LNG terminal. This deal supports Cheniere’s
from 2026. planned expansion of its Corpus Christi LNG
The deals were announced as the World Gas terminal in Texas, and is conditional on a final
Conference 2022 took place in Daegu this week. investment decision (FID) being made on that
Under the first of the two deals, LNG will be project. In the announcement, Cheniere’s pres-
sourced from TotalEnergies’ global portfolio and ident and CEO, Jack Fusco, said the FID was
delivered to the Tongyeong regasification termi- anticipated this summer.
nal. This gas will be used to supply Hanwha & The deals follow a number of other SPAs
HDC’s greenfield 1-GW power plant, which is struck between international sellers – often in
currently under construction next to the LNG the US – and Asian buyers in recent months.
terminal. Asian LNG importers will be particularly keen
“Our company is keen to support the coun- to secure long-term supplies given that Euro-
try’s switch away from coal for power generation, pean companies will also be eyeing new LNG
with both LNG supplies and renewables projects, volumes as they seek to cut their dependence on
such as our significant ‘Bada’ 2-GW offshore Russian gas.
OCEANIA
Western Gas spuds Sasanof-1 well
PROJECTS & AUSTRALIA’S Western Gas said on May 27 that through the target reservoirs to a total depth
COMPANIES it had spudded the Sasanof-1 exploration well on of 2,500 metres. The company anticipates that
the country’s North West Shelf. drilling through the target reservoir section
The Sasanof prospect has been estimated to will take place between June 2 and June 5. It
contain a prospective unrisked resource of 7.2 previously said that the entire drilling cam-
trillion cubic feet (203.9bn cubic metres) of gas paign at Sasanof was expected to take around
and 176mn barrels of condensate. According to 25 days.
the independent resource assessment, which Western said Sasanof-1 would be its first well
was carried out by by ERC Equipoise (ERCE), to be drilled from its exploration portfolio sur-
the prospect has a high case estimate of 17.8 rounding the existing Equus gas project. It noted
tcf (504.1 bcm) of gas and 449mn barrels of that the Equus project has a historic exploration
condensate. drilling success rate of 88%, with 15 discoveries
The prospect covers an area of up to 400 made across 17 wells. It described its exploration
square km and is updip of Western’s liquids-rich portfolio in the area as “extensive”.
Mentorc field, which the company noted was low Western operates Sasanof with a 52.5% inter-
in carbon dioxide (CO2). est. Global Oil and Gas holds a 25% interest in
Sasanof-1 is being drilled using the Valaris the project, Prominence Energy owns 12.5% and
MS-1 rig. Western said drilling was currently Clontarf Energy has a 10% interest.
underway on the intermediate hole section Western had previously said that Global had
to a depth of 2,030 metres. This will be fol- agreed to fund 50% of the cost of drilling the Sas-
lowed by the drilling of an additional section anof-1 well.
P12 www. NEWSBASE .com Week 21 27•May•2022
