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January 2020
LNG
NEWS
Qatar
Qatar Petroleum and
Kuwait Petroleum Corp.
sign LNG agreement
Q
atar Petroleum has signed a long-term sale and purchase
agreement (SPA) with Kuwait Petroleum Corp. (KPC) for
the supply of up to 3 million tpy of LNG to Kuwait.
Under the terms of the 15-year agreement, LNG deliveries
to Kuwait’s new world class LNG receiving terminal at
Al-Zour Port will commence in 2022. The fuel will be used
to help meet Kuwait’s growing energy needs and demand,
especially in the power generation sector.
Saad Sherida Al-Kaabi, the Minister of State for Energy
Affairs, and the President and CEO of Qatar Petroleum,
said: “We are pleased and proud to join hands with
Kuwait Petroleum Corp., and we look forward to providing
reliable LNG supplies to our brothers in the State of Kuwait
for decades to come.”
“This agreement extends Qatar’s long standing LNG supply
relationship with Kuwait well into the 2030s and highlights
our commitment to meeting Kuwait’s LNG requirements.
We are confident that the exceptional reliability of our LNG
supplies will provide KPC with the required flexibility and
supply security to fuel the State of Kuwait’s impressive growth.”
Khaled A. Al-Fadhel, the Minister of Oil and the Minister
of Electricity & Water, the Chairman of the Board of KPC,
added: “The state of Kuwait is embarking on an ambitious
path of economic growth, which requires cleaner energy
sources such as natural gas that will contribute to reducing
emissions and improving local air quality. Whilst KPC is
working towards increasing local natural gas production,
there remains a pressing need to secure imports of natural
gas supplies.”
USA
Cameron LNG Train 2
begins production
S
empra LNG, a subsidiary of Sempra Energy, has announced
that Cameron LNG has begun producing LNG from the
second liquefaction train of the export facility in Hackberry,
Louisiana, US.
Lisa Glatch, Chief Operating Officer of Sempra LNG and
board chair for Cameron LNG, said: “We are pleased to reach
this important milestone in the development of the liquefaction
facility.”
According to the statement, Trains 2 and 3 are expected to
commence commercial operations under Cameron LNG’s tolling
agreements in 1Q20 and 3Q20, respectively. The facility’s first
liquefaction train started commercial operations in August
last year. Phase 1 of the Cameron LNG export project includes
the first three liquefaction trains, which will enable the export
of approximately 12 million tpy of LNG, or approximately
1.7 billion ft³/d.
Sempra Energy is also developing other LNG export projects
in North America, including: Cameron LNG Phase 2, which
was previously authorised by the Federal Energy Regulatory
Commission (FERC) and could include up to two additional
liquefaction trains, as well as up to two additional LNG storage
tanks; Port Arthur LNG in Texas; and Energía Costa Azul (ECA)
LNG Phase 1 and Phase 2 in Mexico.
Development of any of these LNG projects depends
upon obtaining binding customer commitments, completing
the required commercial agreements, securing all necessary
permits, obtaining financing, other factors, and reaching
final investment decisions. In addition to this, the ability
to successfully complete construction projects, such as the
Cameron LNG export project, is subject to a number of risks
and uncertainties.
USA
FERC grants extension for Golden Pass to complete its
LNG project
T
he US Federal Energy Regulatory Commission (FERC) has
issued an order granting Golden Pass LNG Terminal LLC
an extension – from 21 December 2019 to 30 November 2026
– to complete the construction of its proposed LNG project,
and make it ready for service.
The project is located in the vicinity of Sabine Pass,
Texas, US.
According to FERC, Golden Pass LNG cited delays in
obtaining the necessary authorisations, both from the
commission as well as from the Department of Energy’s
Office of Fossil Energy (DOE/FE), and the resulting uncertainty
as reasons for needing an extension.
In response to this request, FERC stated: “Therefore,
applicants are hereby granted an extension of time until and
including 30 November 2026 to complete the construction of
the project and make it available for service.”