Page 19 - GLNG Week 47 2020

GLNG AMERICAS GLNG

Venture Global picks Plaquemines contractor

PROJECTS & US-BASED Venture Global LNG announced time that the design of the trains would enable
COMPANIES this week that it had awarded the engineering, the company to achieve the “fastest construction
procurement and construction (EPC) contract schedule in the LNG industry” while driving risk
for the first phase of the proposed Plaquemines reductions across the entire project.
LNG export terminal in Louisiana to KBR. The company aims to use its experience of
In a November 23 statement, Venture Global constructing Calcaseiu Pass to drive further
said KBR would integrate “highly modularised, improvements at Plaquemines LNG if it goes
owner-furnished equipment” at Plaquemines ahead.
LNG. The equipment is identical to the systems “KBR has an exceptional record in the LNG
currently being installed at Venture Global’s industry, having designed and delivered approxi-
Venture Global is Calcasieu Pass LNG facility, also in Louisana. mately a third of the liquefaction capacity world-
replicating its design There are 18 mid-scale, modular liquefaction wide,” stated Sabel this week. “They recognise
of Calcasieu Pass LNG trains being manufactured in a factory setting that our innovation of mid-scale, modular trains
with the Plaquemines and delivered complete to the Calcasieu Pass manufactured in a factory setting and delivered
project. site for installation. A further 18 trains would complete to site is revolutionising this industry.”
be installed at Plaquemines if that project goes Venture Global has signed binding 20-year
ahead. Both facilities have a design capacity of offtake agreements with Poland’s PGNiG and
10mn tonnes per year (tpy). France’s EDF for a combined 3.5mn tpy of the
For Calcasieu Pass, the trains are being Plaquemines terminal’s capacity, with PGNiG
built by Baker Hughes, and Venture Global committing to 2.5mn tpy and EDF to 1mn
announced earlier in November that the first tpy. The company is currently anticipating a
two 600,000 tpy trains had been delivered to final investment decision (FID) on the pro-
the facility’s site in Louisana’s Cameron Parish ject around mid-2021, with start-up following
ahead of schedule. Venture Global’s executive in 2024. Calcasieu Pass is anticipated to come
co-chairman and CEO, Mike Sabel, said at the online in late 2022.™
ASIA

SSGCL’s suggested gas price

hike draws industry ire

POLICY PAKISTAN’S Sui Southern Gas Company Ltd The APTMA said the UFG adjustment
(SSGCL) has encountered stiff opposition from should remain unchanged, as the SSGCL peti-
local industry over its request that the govern- tion had combined UFG with imported LNG – a
ment hike wholesale natural gas prices by 10.6% separate business segment that must be treated
for financial year 2021-2022. as a petroleum product rather than gas.
The state-run utility has petitioned the Oil The body also SSGCL’s complaints over
and Gas Regulatory Authority (OGRA) to raise unpaid GDS was a problem it needed to resolve
the government-set gas price to PKR822.25 with the government, as GDS was not a fixed
($5.12) per mmBtu ($141.62 per 1,000 cubic tax, rather than trying to pass the issue on to
metres) from PKR743.25 ($4.63) per mmBtu the country’s gas consumers. The APTMA also
($128.07 per 1,000 cubic metres). highlighted inconsistencies with how SSGCL
SSGCL justified the increase by the fact that reported its sales revenues in the government
it was facing a PKR28.24bn ($175.7mn) shortfall petition.
in revenue this year, owing to losses in its piped The industry body argued that if the utili-
gas and imported liquefied natural gas (LNG) ty’s finances needed to be shored up then the
businesses. It also pointed to issues such as the government could slash wellhead gas prices,
government’s outstanding gas development sur- which it claimed were among the highest in the
charge (GDS) payments, which were applicable region. The APTMA said that based upon an oil
prior to 2017-2018, as well as unaccounted-for price of $40 per barrel, Pakistan’s wellhead gas
gas (UFG) losses in both the domestic and price amounted to around $4.08 per mmBtu
imported sides of its business. ($112.85).
However, the All Pakistan Textile Mills Asso- India, for example, cut prices for the
ciation (APTMA) dismissed the utility’s argu- majority of the country’s conventional gas
ment during an OGRA hearing on November production for the six months from Octo-
23, with the industry body accusing SSGCL of ber 1 to $1.79 per mmBtu ($49.51 per 1,000
inflating its costs. cubic metres).™

Week 47 27•November•2020 www. NEWSBASE .com P19