Page 16 - GLNG Week 48 2020

GLNG EUROPE GLNG

Centrica seeks buyer for LNG business

INVESTMENT UK energy group Centrica is seeking a buyer for Centrica’s LNG business could attract new-
its portfolio of LNG supply contracts and other comers looking to quickly build up an estab-
assets, the Wall Street Journal (WSJ) reported on lished position in the market. But a lot depends
November 26, citing sources familiar with the on whether a recent rally in global gas prices con-
matter. tinues into 2021, following a year-long decline to
According to the paper, the company wants historic lows in June.
to streamline its operations amid volatile LNG The business includes a supply contract with
prices. How much Centrica is looking to fetch US exporter Cheniere Energy Partners. It also
from a deal is unclear, although similar recent comprises a deal signed last year with Tokyo Gas
transactions suggest the company may instead on the joint purchase of 2.6mn tonnes per year
have to pay a buyer to take the LNG business off (tpy) of LNG from the Total-led Mozambique
its hands, the WSJ said. Indeed, France’s Total LNG project. Mozambique LNG is due to start
received $800mn last year for taking over the up in 2024.
supply and transportation contracts of Japan- Centrica secured its first long-term contract
based Toshiba. in China earlier this year, agreeing to deliver
Centrica, which was saddled with a 0.5mn tpy of LNG to Shenergy Group, also
GBP135mn ($169mn) statutory loss in the first beginning in 2024.
half of the year, offloaded its North American Centrica’s LNG division performed well in the
energy supply, services and trading subsidi- first half of the year, helping to raise the operating
ary Direct Energy to US firm NRG Energy in income of the company’s marketing division by
July, raising $3.63bn. The company has plans almost fourfold to GBP115mn ($154mn). How-
to divest some of its other assets, including its ever, Centrica’s 20-year gas deal with Cheniere,
nuclear business and its majority share in North first signed in 2013, no longer has any intrinsic
Sea-focused producer Spirit Energy. But it said value. Its worth depends on how large the differ-
during the summer it would put those disposals ence is between gas prices in the US and in the
on hold until financial and commodity markets UK and Asia. A surge in gas supplies this year has
had stabilised. narrowed those spreads.™

MIDDLE EAST

Turkey boosts LNG imports in first half

PERFORMANCE THE share of LNG in Turkey’s gas imports
increased from 27% in the first half of 2019 to
43% for the same period of this year, state-run
news service Anadolu Agency quoted Yunus
Emre Icik of crude oil and natural gas pipeline
trading company BOTAS as saying.
Icik confirmed a total daily send-out capacity
of more than 120mn cubic metres from Turkey’s
two land-based LNG terminals and its two float-
ing storage regasification units (FSRU).
“From this infrastructure, Turkey has been
able to benefit from low LNG prices to supply
almost half of its peak daily natural gas demand,”
Icik said.
The country’s LNG imports rose sharply,
most particularly in May when LNG prices
dropped to very low levels. Turkey’s first FSRU was launched in Aliaga,
Turkey supports its energy supply security Izmir in December 2016. In early February 2018,
through its LNG and FSRU terminal infrastruc- a second FSRU with 20mn cubic metres of send-
ture and meets nearly 45-50bn cubic metres out capacity per day was launched in the coun-
(bcm) of annual consumption. try’s southernmost Hatay province.
Turkey’s Marmara Ereglisi LNG Terminal Turkey plans to expand its LNG storage
has a capacity of 5.9mn tonnes while the Aliaga capacity by adding a third FSRU in Saros Bay,
Egegaz LNG Terminal has an annual capacity of north of the Gallipoli Peninsula in northwestern
4.4mn tonnes. Turkey, by 2021.™

P16 www. NEWSBASE .com Week 48 04•December•2020