LNG

The US Cameron LNG export plant, developed by California-based utility Sempra Energy and partners, is suffering some technical problems though said it was managing to stick to its cargo shipping schedule.

Australian company Western Gas said its Equus project in Western Australia was on track for first gas in 2024 following the completion of the upstream and LNG development plans as the company seeks a partner and starts financing activities.

Chart Industries, the US LNG equipment maker, said it received full notice to proceed for the production of cold boxes and brazed aluminum heat-exchangers for Venture Global’s Calcasieu Pass liquefied natural gas export project.

Calcasieu Pass will produce more than 10 million tonnes per annum of LNG and is expected to come on stream in 2022, along with associated facilities, including the TransCameron Pipeline.

Arlington, Virginia-based Venture Global is also advancing with the Plaquemines LNG export venture sited near river mile-marker 55 on the west side of the Mississippi River, 30 miles south of New Orleans.

Chart noted that this week Venture Global announced the final investment decision and the closing of the project financing for its Calcasieu Pass facility in Cameron Parish, Louisiana.

At the end of March 2019, Chart booked the full equipment order of $135 million for the Calcasieu project from Baker Hughes-GE.

BH-GE had been awarded a contract and granted notice to proceed on the construction of a comprehensive LNG technology solution for the Calcasieu Pass project.

Chart will deliver the equipment on a multi-year schedule in conjunction with BH-GE and Kiewit.

“We are proud to be part of Venture Global’s unique and innovative Calcasieu Pass project and overall LNG model,” stated Jill Evanko, Chart’s President and Chief Executive.

“In conjunction with our strong partners on this project, we will provide the highest quality cold boxes and heat exchangers on schedule from our Wisconsin and Louisiana facilities,” added Evanko.

Venture Global is controlled by former investment banker Michael Sabel and lawyer Robert Pender, who act as joint chief executives.

They are additionally making progress with a third project, the Delta plant with a site also on the Mississippi River.

The Delta liquefaction facility and its associated pipeline would have output capacity of 24 MTPA.

The proposed Delta and Plaquemines plants are stand-alone projects with no shared facilities and are under different development schedules.

US engineering companies McDermott International and Baker Hughes-GE said they were awarded subsea contracts to provide field development services for the feed-gas needs of the Ichthys LNG export plant in the Northern Territory of Australia.

Baker Hughes-GE, the energy services company and LNG equipment supplier, reported sluggish first-quarter earnings even as it logged two important turbomachinery contracts for projects in West Africa and the US Gulf Coast.

US energy engineering company KBR was awarded the preliminary front-end engineering contract by BP of the UK for the second and third phases of the Tortue natural gas project being pursued with Kosmos Energy of the US that will underpin floating LNG production on the maritime border between the West African nations of Senegal and Mauritania.

KBR Inc., the US energy and LNG engineering company, has selected Baker Hughes-GE to supply gas turbine driver technologies for the ongoing development of KBR's standardized design for a mid-scale LNG liquefaction plant.

Venture Global LNG said it planned to expand the scope of its LNG development business on the US Gulf Coast to 60 million tonnes per annum of production based on customer demand, almost doubling current plans for 32 MTPA of output.

McDermott International and Baker Hughes-GE, the US energy services companies, have been awarded substantial subsea contracts by BP to develop the Greater Tortue-Ahmeyim natural gas fields that will underpin several floating LNG projects offshore Mauritania and Senegal.

The initial subsea infrastructure supplied will connect the first four of 12 wells consolidated through production pipelines leading to a floating production, storage, and offloading (FPSO) vessel.

From here liquids are removed and the export gas is transported via a pipeline to the FLNG production hulls where the gas is liquefied.

McDermott defines a substantial contract as between $500 million and $750M. The contract award will be reflected in McDermott's first-quarter 2019 backlog.

McDermott and BH-GE said the contract follows an initial front-end engineering and design (FEED) phase awarded in March 2018 when both companies worked together to define the technology and equipment scope for a four-well development phase.

Project management and engineering teams from BP, BHGE and McDermott will remain co-located at McDermott's London offices for this next phase.

McDermott and BH-GE will supply subsea umbilicals, risers and flowlines (SURF) and subsea production systems (SPS) equipment.

McDermott said it planned to use its upgraded “Amazon” vessel, “DLV 2000”, “North Ocean 101” and third-party vessels to support the installation scheduled to begin in late 2020.

“The ‘Amazon’ modifications are scheduled to be completed before the installation campaign begins and will include a multi-joint (hex) J-Lay system to handle the most challenging ultra-deepwater projects as well as the addition of a multi-joint facility, dual pipe loading cranes and additional power generation,” explained McDermott.

McDermott-designed pipeline and riser structures will be fabricated at its yard in Batam, Indonesia.

BH-GE will provide five large-bore deepwater horizonal xmas trees (DHXTs), a 6-slot dual bore manifold, a pipeline end manifold, subsea distribution units (SDUs), three subsea isolation valves (SSIVs), diverless connections and subsea production control systems, specifically designed to enable the future integration of additional wells for the first phase of the development.

“This contract marks a number of firsts. Our first significant subsea EPCI project in West Africa, the first project using our state of the art pipelay vessel ‘Amazon’ and our support of BP's first entry into Senegal and Mauritania,” said Tareq Kawash, McDermott's Senior Vice President in the region.

“Our collaboration with BH-GE allows us to offer BP an integrated approach that builds on our proven solutions. We look forward, along with BHGE, to delivering this landmark project to BP with the highest levels of safety and quality,” stated Kawash.

Graham Gillies, BH-GE's Vice President for Subsea Production Systems, said the company aimed to deliver the best-in-class solution to BP with cost-efficiency and industry-leading safety.

“This major deepwater gas development is strategically important for Mauritania and Senegal's domestic and global gas supply, and supports the industry's drive for a more sustainable, lower carbon future,” added Gilles.

BH-GE has also signed an agreement to become a “Country Partner” of “Invest in Africa's (IIA) Senegal chapter”, of which BP is a founding member.

The IIA helps local suppliers to connect with international oil and gas companies, increasing the opportunities for local businesses to support large-scale projects, and training African suppliers on core business skills and entrepreneurship.

Baker Hughes-GE, the US energy services and equipment company, said it was awarded the contract to supply turbomachinery for the construction of the Golden Pass LNG export facility in Texas following the recent decision by Qatar Petroleum and ExxonMobil to go ahead with the venture.