Page 11 - NorthAmOil Week 17

NorthAmOil PROJECTS & COMPANIES NorthAmOil
Sempra introduces feed gas to third Cameron LNG train
LOUISIANA
SEMPRA LNG, a subsidiary of US-based Sempra Energy, announced on April 22 that it had started introducing pipeline feed gas to the third liquefaction train at its Cameron LNG project on the Louisiana Gulf Coast. This marks the start of the final commissioning stage for Phase 1 of the three-train project, the company noted.
Feed gas deliveries to the third train are being ramped up after Sempra received authorisation from the US Federal Energy Regulatory Com- mission (FERC) to introduce the gas. Commer- cial operation of Train 3 remains on track to begin in the third quarter of 2020, the company said.
The three trains that comprise Phase 1 of the project have a combined capacity of 12mn tonnes per year (tpy) of LNG, or around 1.7bn cubic feet (48mn cubic metres) per day. Sempra experienced some delays in initially bringing the facility online, partly in relation to Hurricane Harvey, which hit the Gulf Coast in 2017. Train 1 entered commercial service in August 2019, with Train 2 following in March 2020.
A second phase of development at Cameron LNG has been proposed, comprising two addi- tional trains, but given collapsing demand and global oversupply, it appears unlikely that Sem- pra will pursue the second phase anytime soon. The company recently announced that it was delaying a final investment decision (FID) on its proposed Costa Azul LNG project in Mexico by a quarter, to the second quarter of 2020. The firm is also no longer committing to a third-quarter FID on its Port Arthur LNG project in Texas, having previously been targeting that quarter for a decision.
“The current economic environment may impact the schedule,” Sempra LNG’s president, Justin Bird, said on a conference call in late March. However, he added that the company remained confident in long-term demand for LNG and had commitments for about 70% of Port Arthur’s output.
Sempra Energy indirectly owns 50.2% of Cameron LNG. The company’s share of full-year run-rate earnings from Phase 1 is anticipated to be $400-450mn per year starting in 2021.™
ExxonMobil modifies operations to make hand sanitiser
LOUISIANA
EXXONMOBIL announced last week that it had reconfigured its manufacturing operations in Louisiana to make medical-grade hand san- itiser for donation to coronavirus (COVID-19) response efforts in several US states.
The super-major said initial production of 160,000 gallons (605,666 litres) of sanitiser was being distributed to medical providers and first responders in Louisiana, New Jersey, New Mex- ico, New York, Pennsylvania and Texas. This initial volume is sufficient to fill nearly 5mn 4-ounce (118-ml) bottles of sanitiser. Additional donation locations were being planned, Exxon- Mobil noted.
This comes after the company announced in mid-April that it had increased production of “critical” raw materials for the COVID-19 response, including isopropyl alcohol for hand sanitiser and specialised polypropylene for med- ical masks and gowns. ExxonMobil said it had increased its capacity to manufacture the spe- cialised polypropylene by about 1,000 tonnes per month, which it noted was enough to enable
production of up to 200mn medical masks or 20mn gowns. Meanwhile, isopropyl alcohol output had been ramped up by 3,000 tonnes at the company’s chemical manufacturing facility in Baton Rouge, Louisiana. Now in order to pro- duce, package and distribute hand sanitiser itself, ExxonMobil has purchased additional ingredi- ents and modified equipment in Baton Rouge and at a lubricants plant in nearby Port Allen.
“To stand up an entirely new process and sup- ply chain in a matter of weeks, while maintaining ExxonMobil’s high standards for safety and qual- ity and in compliance with [US Food and Drug Administration] requirements is truly remark- able,” ExxonMobil Chemical’s president, Karen McKee, said in the company’s April 24 statement.
ExxonMobil noted last week that it is also participating in a technology collaboration with the Global Center for Medical Innovation. The collaboration is aimed at rapidly redesigning and manufacturing re-usable personal protective equipment (PPE), such as medical face shields and masks.™
Week 17 30•April•2020 w w w . N E W S B A S E . c o m P11