Page 8 - GLNG Week 29 2021

GLNG COMMENTARY GLNG

Cheniere’s expansion plan

boosted by Tourmaline deal

Cheniere Energy’s supply deal with Tourmaline Oil takes the LNG

producer a step closer to sanctioning its Corpus Christi Stage III

expansion project

PROJECTS & LEADING US LNG exporter Cheniere Energy Basin and British Columbia’s Montney shale
COMPANIES announced last week that it had struck a 15-year play – which is perhaps surprising given the
supply deal with Tourmaline Oil, the largest variety of gas supply options available closer
WHAT: producer of natural gas in Canada. The deal is to Corpus Christi LNG. However, Cheniere
Cheniere and Tourmaline aimed at supporting a proposed expansion of sources its feedstock gas from numerous loca-
has signed a 15-year gas Cheniere’s Corpus Christi LNG export terminal tions and has frequently talked up the variety of
supply deal. in Texas. It is also notable for the considerable supply options available to it. Tourmaline said
distance involved between the upstream opera- it had secured long-term firm transportation
WHY: tions and the liquefaction terminal. with TC Energy on existing pipeline systems for
The deal is aimed at At the same time, though, the deal illustrates moving the gas to Texas, for total tolls of $0.86
supporting Cheniere’s that LNG giant Cheniere continues to move for- per mmBtu ($23.79 per 1,000 cubic metres).
proposed expansion of ward with its expansion plans. It may perhaps Cheniere said it would pay Tourmaline an
its Corpus Christi LNG also suggest that a lack of LNG exports from LNG-linked price for its gas, based on the Platts
terminal. Canada’s West Coast is making the country’s Japan Korea Marker (JKM), after deductions for
producers look elsewhere for buyers of their fixed LNG shipping costs and a fixed liquefac-
WHAT NEXT: output – despite a new LNG terminal being tion fee. Tourmaline said the deal would effec-
The deal brings an FID proposed in Canada this week. tively cover one LNG cargo per month.
closer, but Cheniere has Cheniere has struck similar gas supply
previously indicated that Deal details agreements at prices linked to JKM with EOG
it will prioritise marketing Under the deal, Tourmaline will supply Cheniere Resources and Apache – both of which produce
its existing output. with 140,000mn British thermal units (3.9mn gas in locations that are far closer to the com-
cubic metres) per day of gas to Corpus Christi pany’s liquefaction terminals. This marks a shift
LNG from 2023. This will be converted to away from Cheniere’s previous gas supply agree-
roughly 850,000 tonnes per year (tpy) of LNG, ments, which have tended to be linked to the US’
and will be marketed by Cheniere. Henry Hub benchmark.
The gas will be supplied from Alberta’s Deep “This latest IPM [integrated production

Tourmaline said it had
secured long-term firm
transportation with
TC Energy on existing
pipeline systems for
moving the gas to
Texas.

P8 www. NEWSBASE .com Week 29 23•July•2021