LNG

Following substantial completion of Train 6 of Corpus Christi Liquefaction Stage 3 project, Cheniere is rushing to finalise the full seven-train, 10 mtpa expansion later this year. The project will raise CCL’s liquefaction capacity to more than 25 mtpa.

Cheniere Energy has signed a contract with Bechtel, valued at $4.69 billion, for engineering, ​procurement and construction of the first phase of its Sabine Pass ‌LNG expansion, a project centred on Train 7 with more than 6 mtpa liquefaction capacity.

ABB has been contracted by Bechtel to deploy an automation platform for Trains 4 and 5 of the Rio Grande LNG project in Brownsville, Texas, as the plant moves to its full 30 mtpa production capacity.

Baker Hughes has secured a contract from Bechtel Energy to supply liquefaction equipment for Phase 2 of Sempra’s Port Arthur LNG project in Jefferson County, Texas. The new equipment supports a nameplate capacity of 13 mtpa.

Chart Industries Inc., a leading global engineering design and manufacturer of highly engineered equipment with LNG and industrial gas applications, is furthering its partnership with Canadian cleantech company Kathairos.

US LNG engineering company Bechtel was awarded a front-end engineering and design contract to study a proposed unified system between the onshore gas processing plant of the West Delta Deep Marine gas fields in the Mediterranean offshore Egypt and the LNG export plant located at Idku east of the Egyptian port of Alexandria.

Australian oil and gas developer, Woodside Energy and engineering company Bechtel have started to build the Pluto Train 2 project. 

The Deputy Premier of Western Australia, the Hon Roger Cook MLA, officially launched the construction at a ceremony in Karratha, Western Australia yesterday. 

Pluto Train 2 will be the second LNG train at Woodside’s Pluto LNG onshore facility and will process gas from the Scarborough development. The Pluto Train 2 site is within the existing Pluto LNG boundary. 

July 20 (LNGJ) - Baker Hughes, the liquefied natural gas equipment-maker and energy services company, posted a second-quarter operating loss of $25 million compared with a profit of $194M in the prior-year period. However, the company led by Chairman and Chief Executive Lorenzo Simonelli recorded strong orders from its Turbomachinery and Process Solutions (TPS) division as the LNG order cycle continued to unfold.

   “TPS secured a major contract from Bechtel to provide seven mid-scale LNG trains to support the Stage 3 expansion project of Cheniere’s Corpus Christi Liquefaction facility,” said the company. “Also in LNG, TPS continued to support New Fortress Energy’s (NFE) ‘Fast LNG’ facilities project with a contract for two main refrigerant turbo-compressor strings in offshore. NFE will deploy Baker Hughes technology in various offshore projects across the globe,” added Baker Hughes

Woodside, the Australian LNG plant operator, has completed the sale of a 49 percent non-operating participating interest in the second Pluto LNG train under development to Global Infrastructure Partners (GIP), one of the world’s leading specialist energy infrastructure investors.

Tellurian Inc., the developer of the proposed Driftwood LNG export plant in Louisiana, is making new pitches to investors and buyers as it pointed to a likely surge in demand in China and India as well as nations in Southeast Asia as it pledged to have feed-gas at a price lower than the Henry Hub.

In its latest report filed with the US Securities Exchange Commission, Tellurian forecasts that 100 million tonnes per annum of additional construction is needed because of LNG capacity constraints by 2021 as demand increases.

Analysts said the company may be keen to still bring India’s Petronet LNG on board or other potential investor-buyers from Asia or elsewhere.

“Haynesville shale gas production of 46 million cubic feet per day from current assets of 1.2 trillion cubic feet will enable Driftwood to supply LNG at a free-on-board (FOB) price of $3.50 million tonnes per annum,” said Tellurian in its presentation

“Haynesville gas can be supplied at a lower cost than Henry Hub at $2.00 per MMBtu and delivered to the plant regardless of Henry Hub market index prices,” said Tellurian.

“The company’s model for investors ensures interest alignment for joint venture partners who own their share of the LNG at a cost of $3.50 per MMBtu, comprising $2.00 per MMBtu for gas delivery, $0.75 of operating expenses and $0.75 for debt service,” explained the Houston-based company listed on the Nasdaq global exchange.

Tellurian stated that its integrated model would help avoid the effects of price volatility.

“Driftwood LNG will come at a lower cost and will have less price volatility than other LNG price indexes,” the company noted.

Tellurian’s Driftwood facility would provide more than 27 MTPA of supply to meet new demand, particularly in China and India.

“China and India LNG demand is resilient and imports were up 8 percent and 21 percent respectively through July 2020 on a year-on-year basis,” said Tellurian.

The company stated that new Asian markets will also see demand growth of around 41 MTPA by 2025 and these emerging markets could add the equivalent of another South Korean market in the next four years.

Bangladesh, Malaysia, Pakistan and Thailand are facing domestic gas demand increases because of the need for power amid declining indigenous gas production and strong economic growth prospects.

The Philippines, Taiwan, Vietnam and Indonesia so far have only 17 percent gas market penetration and with growing gas demand for power, especially as coal and nuclear options fall out of favour.

Tellurian additionally expressed its confidence in engineering, procurement and construction contractor Bechtel Inc. of the US, which had also invested $50M in the project.

The company said its fully-wrapped EPC contract had already seen 30 percent of engineering completed and the project was shovel-ready.

The presentation stated that the Driftwood project would be brought to fruition by an experienced team, several of whom helped develop Cheniere Energy’s Sabine Pass LNG export plant, the largest in the US.

The executives listed are Executive Chairman and co-founder of Tellurian Charif Souki, who launched Cheniere in 1996 and Meg Gentle, the current President and Chief Executive of Tellurian.

They will be aided by former UK BG Group head of LNG, Martin Houston, who is also a co-founder and Vice Chairman of Tellurian.

Another key member of the management team is named as Keith Teague, Chief Operating Office and another recruit from Cheniere.