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NFE to deliver LNG to two Brazilian fertiliser plants
PROJECTS & COMPANIES
US-BASED New Fortress Energy (NFE) revealed earlier this week that it had agreed to deliver LNG to two fertiliser plants owned by Unigel Participações, a major Brazilian chemi- cal company.
In a statement, NFE said it had signed gas supply agreements (GSAs) with the Unigel sub- sidiaries that operate the Unigel Agro-BA plant in Bahia state and the Unigel Agro-SE plant in Sergipe state. The GSAs also give Unigel the option of working with NFE to ensure gas deliv- eries to its chemical plant in Candeias, a city in Bahia state, it noted.
The GSAs call for NFE to deliver LNG to import terminals in Suape and Sergipe, where it can be regasified and loaded into local pipe- lines for delivery to the Unigel plants. The ship- ments will be carried out over a period of five years beginning in the first quarter of 2022. The US-based company is slated to supply the Brazil- ian company with up to 1.4mn gallons per day of LNG – equivalent to slightly more than 832,350 tonnes per year (tpy) – during this period.
The Unigel fertiliser plants will use the regasified LNG as feedstock for the produc- tion of urea. Currently, these two facilities are capable of turning out more than 3,000 tonnes
per day (1.095mn tpy) of urea.
Wes Edens, the chairman and CEO of NFE,
said he expected the GSAs to benefit his com- pany. “We are excited to become the strategic gas supply partner of Unigel, one of the premier industrial companies in Brazil,” Edens com- mented. “This partnership demonstrates the value our LNG import terminals will provide to customers in Brazil as we bring affordable, relia- ble energy supply and support industry through- out Brazil.”
Andrew Dete, NFE’s managing director, agreed. “NFE is proud to partner with Unigel to support domestic fertiliser production in north- eastBrazil,”hesaid.“Theseagreementsaregreat examples of NFE’s mission to partner with lead- ing industrial customers in Brazil to provide reli- able energy supply.”
Meanwhile, Unigel CEO Roberto Noronha Santos described the GSAs as a means of ensur- ing regular deliveries of raw materials to the fertiliser plants. “We believe that this five-year term agreement with NFE will provide a more reliable, stable operation for our plants in the long run, which is key to improve our compet- itiveness and solidify our commercial presence in Brazil,” he stated.
ASIA
Eni to supply carbon-neutral cargo to Taiwan
ENERGY TRANSITION
ITALY’S Eni announced this week that it had agreed to supply a carbon-neutral LNG cargo to Taiwan’s CPC. News of such cargoes – while still comparatively unusual – have gradually become more commonplace over the past year or so amid the accelerating energy transition.
Eni said the LNG for the cargo would be sourced from Indonesia’s Bontang liquefaction terminal, under the Italian company’s contract with Eni Muara Bakau, the joint venture that owns and operates the Jangkrik gas field. Eni is the operator of the joint venture.
The cargo will be delivered to the Yung An receiving terminal in Taiwan.
The company said that the cargo’s emissions would be calculated using its own proprie- tary methodology, and would be certified as carbon-neutral under the PAS2060 standard. Emissions stemming from the entire value chain of the cargo – from production, liquefac- tion and shipping to regasification, distribution and end use – will be offset via the retirement of
“high-quality” nature-based credits.
For this cargo, the credits will be sourced
from two REDD+ projects – the Luangwa Com- munity Forest project in Zambia and the Kulera Landscape REDD+ project in Malawi. US-based Verra will certify the carbon dioxide (CO2) vol- umes that the projects will offset.
The delivery is part of Eni’s long-term decarbonisation strategy, which envisions the company reaching net zero GHG emissions by 2050. The target includes Scope 3 emissions – those stemming from the use of Eni’s products by its customers. Decarbonisation targets that incorporate Scope 3 emissions are consid- ered more ambitious and more challenging to achieve than goals limited to Scope 1 and 2 – respectively direct emissions and indirect ones associated with the use of electricity, heating or cooling.
Eni has intermediate targets across all three scopes of emissions – to reduce them by 25% rel- ative to 2018 levels by 2030 and 65% by 2040.
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