Page 9 - NorthAmOil Week 50 2021

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Cheniere reported to have struck

July supply deal with NFE

AMERICAS US LNG producer Cheniere Energy reached a in Puerto Rico, Mexico and Nicaragua. It did not
six-year supply deal with an affiliate of New For- disclose the seller or sellers involved at the time
tress Energy (NFE) in July, a recently released but said that together with previous purchases
letter to the US Department of Energy (DoE) for its Jamaica operations, it had now bought
has shown. enough volumes to cover 80% of its needs across
Under the terms of the sales and purchase its portfolio.
agreement (SPA), Cheniere is set to deliver Then, in July, the company said that it had
between 600,000 and 1mn tonnes per year signed an LNG supply agreement that would
(tpy) to NFE North Trading from the Corpus cover its remaining demand across its gas and
Christi LNG terminal in Texas on a free-on- electricity businesses until the end of 2027.
board (FOB) basis. The agreement also allows Again, NFE did not disclose the seller at the time,
Cheniere to deliver LNG to NFE from other but noted that its portfolio consisted of five ter-
sources, including its Sabine Pass terminal in minals and related assets across the Caribbean,
Louisiana. Mexico and Central America, which would be
According to the DoE letter, which was dated joined by four terminals in Brazil from 2022.
August 11, the agreement was first struck in The company, which supplies LNG to power
December 2020, and subsequently amended in plants and industrial customers, said in July that
July to include an additional year of supplies and it anticipated securing additional volumes for
higher volumes. those new Brazilian terminals later in the year.
Further terms, including the pricing, were not For Cheniere, the deal is the second to be
disclosed. disclosed via a letter to the DoE since Novem-
NFE announced in December 2020 that it ber, when it emerged that the company had also
had signed two long-term LNG supply agree- signed a medium-term supply agreement with
ments to serve its gas and electricity operations France’s Engie over the summer.™

Venture Global to start commissioning

second Calcasieu Pass block

LOUISIANA THE US Federal Energy Regulatory Commis- replicate the design at the 20mn tpy Plaquemines
sion (FERC) this week gave Venture Global LNG LNG project, on which construction has already
permission to begin commissioning liquefaction begun, with a final investment decision (FID)
systems at a second block at the company’s Cal- anticipated before the end of the year. Plaque-
casieu Pass liquefaction plant. mines is estimated to cost around $8.5bn, with
This follows approval to begin commission- the project expected to enter production in 2024.
ing liquefaction systems at the first block in early A further two 20mn tpy projects – Delta LNG
November. and CP2 LNG – have also been proposed. If both
Calcasieu Pass is comprised of 18 modular projects receive the necessary approvals and go
liquefaction trains configured into nine blocks. on to be built, Venture Global will end up with
Each train has a capacity of 626,000 tonnes per 70mn tpy of liquefaction capacity on Louisiana’s
year of LNG, and the entire facility will have a Gulf Coast.
capacity of 10mn tpy. The plant is anticipated to On its website, Venture Global says that it
begin producing LNG in test mode before the anticipates its design model soon becoming
end of the year, entering commercial service in the industry standard, replacing the traditional
early 2022. large-scale, custom-built liquefaction plant con-
Venture Global has not disclosed the cost figurations in the US. This has yet to play out, but
of building Calcasieu Pass, but analysts have at least one US LNG player, Cheniere Energy, is
estimated it at about $4.5bn. The company has making a shift from its 5mn tpy trains to mid-
touted its factory-built, mid-scale, modular plant scale modular trains during the next phase of
design, saying it significantly reduces execution expansion at its Corpus Christi plant in Texas.
risks and installation times. Indeed, it intends to An FID on that expansion is expected in 2022.™

Week 50 16•December•2021 www. NEWSBASE .com P9