Page 11 - GLNG Week 32
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GLNG AmERiCAs GLNG
the process of commissioning and the third is under construction. First production from train 2 was reported in June. Substantial completion is anticipated in the third quarter, while train 3 at Corpus Christi should start up in the second half of 2021.
e Stage 3 plan at Corpus Christi involves a plan for up to seven midscale trains, which would add around 9.5mn tpy of capacity.
Competition
tellurian also posted its second-quarter results last week. the company is backed by Charif Souki, who was instrumental in Cheniere’s pro- gress – until being ousted in late 2015 amid a dis- pute with activist investor Carl Icahn.
Where Cheniere has a number of plans underway, tellurian is still working towards an FID on its Dri wood LNG plan, targeted for this year. During the quarter, tellurian signed up a $500mn equity investment from total in the Dri wood LNG plan, in addition to a supply agreement. e facility will have up to 27.6mn tpy of capacity.
tellurian also said it had completed binding
open seasons for a number of pipelines – the Permian Global Access Pipeline (PGAP), the Haynesville Global Access Pipeline (HGAP) and the Delhi Connector Pipeline (DCPL). Pre- ling with the Federal Energy Regulatory Commis- sion (FERC) would begin on the PGAP in the next quarter.
Noting the show of con dence from total, tellurian’s president and CEO, Meg Gentle, said the US company had “executed a thor- ough set of documents and we are using those as a template to secure further agreements with partners. We are preparing to launch the pro- ject nance debt syndication, which we expect [will] take the remainder of the year.” Assum- ing FID takes place this year, construction could also start, with operations beginning in 2023.
Earlier this year, it was reported that Cheniere was suing Souki, and another colleague at tel- lurian, over an alleged failure to repay a $46mn loan. Cheniere has said that the Dri wood LNG plan is substantially the same as a project Souki was working on when it employed him. tellurian has denied the claim.
AUstRAlAsiA
New Caledonia plans LNG imports
invEstmEnt
NEW Caledonia, a French island in the Paci c Ocean, is seeking LNG supplies for 15 years, according to a report from Bloomberg. the news agency reported that it was seeking around 200,000 tonnes per year (tpy) of LNG, under a project backed by Nouvelle-Caledonie Energie (NCE).
this would involve a floating storage and regasi cation unit (FSRU) and a 200-MW gas- red power plant. e LNG contract should run from the second half of 2023 to the rst half of 2024. LNG will be priced against crude or the US’ Henry Hub, or a combination of the two. Cargoes should come in 40,000 or 80,000 cubic metre amounts.
Submissions are due by August 29, Bloomb- erg said. A request for proposals (RfP) will be issued to short-listed applicants in the second quarter of 2020.
e power facility would replace an existing facility in Noumea, which supplies a nickel plant, owned by Eramet’s Societe Le Nickel (SLN), which has been on the islands for more than 100 years. e nickel producer is also a shareholder in the NCE venture. According to a document from the government in 2018, SLN takes the
lion’s share of the power – at 160 MW – while the remainder goes to local needs. e island group is reported to hold 10-20% of the world’s nickel resources.
New Caledonia formulated a plan for its energy transition in 2016, following the Paris Accords. e Doniambo facility currently runs on heavy fuel oil, which is both polluting and expensive. Energy accounts for 35% of SLN’s running costs.
According to Eramet’s 2018 corporate social responsibility (CSR) report, switching SLN’s oil- red power plant to LNG would play a major role in reducing its emissions. “A delay in the implementation of this lever would lead to a 20% reduction in tonnes of CO2 per tonne of outgo- ing product instead of the target of 26%.”
Eramet’s sulphur oxide (SOx) emissions increased by 10% in 2018, largely as a result of greater power generation by SLN in New Caledonia.
Shi ing to LNG should save cash for both the nickel company and for local users. Using gas will also allow it to o set the intermittency problem of renewable energy. e territory has both solar and wind facilities.
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