LNG

Black & Veatch (B&V) will use Baker Hughes’ LM9000 gas turbine and compression technology as part of a standard module capable to produce up to 2 mtpa of LNG. The intention is to utilize PRICO technology to produce up to 2 mtpa of LNG per train.

Chart Industries, the US LNG equipment-maker and industrial gases company, has received a key order from the Cedar floating LNG project being developed in the Canadian Pacific province of British Columbia.

Baker Hughes, the US liquefied natural gas equipment-maker and energy services company, reported a first-quarter rise in orders, revenues and operating income as liquefaction projects advanced to construction.

Delfin LNG, the US floating liquefaction and export project proposed for offshore and onshore Louisiana and with a recently signed supply deal with global commodities firm Vitol, has filed with the Federal Energy Regulatory Commission for a fourth extension of permits to complete the venture’s onshore facilities.

The US Delfin floating LNG export project proposed for offshore Louisiana has finalized a binding sale and purchase agreement with the US subsidiary of global commodities firm Vitol.

The deal was between Delfin Midstream Inc. and Vitol Inc. and also includes “strategic investment” by Vitol in the US export project.

Under the SPA, Delfin will supply 500,000 tonnes per annum of LNG on a free-on-board (FOB) basis for 15 years at the Delfin Deepwater Port to be established 40 nautical miles off the coast of Louisiana.

“The SPA is indexed to Henry Hub benchmark. The agreement is valued at approximately $3 billion in revenue over 15 years,” said a statement.

Dudley Poston, Chief Executive of Delfin, said that recent events had accelerated the need for a wider array of potential buyers to source reliable low-cost energy from the safety of the US at “compelling” prices.

“After evaluating multiple projects and running an extensive diligence process, Vitol’s decisions to invest demonstrates the strong trust they have in our ability to deliver a reliable source of LNG,” added Poston.

Delfin added that it had signed other accords and term sheets that are being finalized into fully termed supply agreements.

Modular project

The company declared that as modular project requiring between 2 MTPA and 2.5 MTPA of long-term contracts to begin construction, Delfin is on schedule to make final investment decision on the first FLNG vessel by the end of 2022.

“We are delighted to conclude this agreement with Delfin,” said Pablo Galante Escobar, Global Head of LNG and European Gas and Power at Vitol.

“Global LNG demand is experiencing tremendous growth and Vitol continues to strengthen its position to safely and reliably deliver cost effective, flexible solutions to our customers around the world,” added Escobar.

Vitol’s commitment and investment grade rating will help Delfin on its path to financial close of this exciting project,” he stated. 

Delfin has completed the engineering and design phase of the venture for the vessels being built at South Korea’s Samsung Heavy Industries shipyard and the liquefaction equipment and technology is being provided by Kansas-based company Black & Veatch.

UTOS pipeline

At the outset of the project planning Delfin had purchased the UTOS pipeline, the largest natural gas pipeline in the Gulf of Mexico, and submitted its deepwater port licence application way back in 2015.

The UTOS pipeline is the only 42-inch pipeline in the GoM and was formerly owned and operated by Enbridge Inc.

Delfin then proposed to activate the formerly abandoned offshore pipeline for the FLNG project and construct new connecting pipelines, a compressor station and associated facilities.

Wouter Pastoor, Chief Operating Officer of Delfin, explained that the company had completed permitting work with a positive record of decision from the Maritime Administration and had been granted its Department of Energy export licence.

“Delfin has completed front-end engineering and design with Samsung and Black & Veatch which puts us on pace to execute our project this year and to commence operations in 2026,” he stated.

US energy and liquefaction technology firm Black & Veatch has selected Mario Azar as the new Chairman and Chief Executive for the company after the decision to retire after 44 years at the helm of Steve Edwards.

The successor to Edwards as CEO and Chairman is currently serving as president of the Energy & Process Industries division at the Overland Park, Kansas-based company.

One of Black and Veatch’s most recent LNG contract awards was for the Cedar FLNG project proposed by Pembina Pipeline Corp and the Haisla First Nation in British Columbia in Western Canada.

Black and Veatch was chosen with South Korean shipbuilder Samsung Heavy Industries for the front-end engineering and design of the project's proposed floating liquefaction, storage and offloading units.

the Cedar project expects to make a final investment decision in 2023 following completion of the environmental assessment process.

The FLNG facilities will be located in the Douglas Channel and have a liquefaction capacity of up to 4 million tonnes per annum of LNG.

On its leadership change, Black and Veatch said that Azar’s appointment was only the eighth senior leader in the founder, managing partner or chair role in the US Midwest company’s 107-year history.

Critical markets

“As global megatrends reshape the critical infrastructure markets we serve, the Black and Veatch Board of Directors is thrilled to select Mario based on his vast global experience, proven leadership capabilities, innovative and collaborative approach and strong focus on client relationships,” said outgoing CEO and Chairman Edwards.

“Since joining the company in 2018, Mario has been the architect of an effort that is repowering the power industry as well as in the strategic repositioning of our company to address the megatrends our clients and the world faces,” stated Edwards.

Black and Veatch said that Azar’s leadership experience spanned more than 32 years in the energy and industrial fields, much of it in engineering and construction solutions.

Prior to joining Black & Veatch in 2018 as the president of the global power business, Azar served in multiple executive roles and led large global businesses at Germany’s Siemens and previously Westinghouse of the USA.

“It is a true honor to be selected to lead Black and Veatch, a company with such deep history and a stellar reputation built by a world-class team of global professionals,” said Azar.

“The portfolio of solutions Black and Veatch offers, coupled with our transformed business model aligning positions us to continue fulfilling our mission,” he declared.

The company said it would name a successor to fill Azar’s current role in the near future.

Before embarking on his engineering career, Azar earned a Bachelor of Science in electrical engineering from the University of North Carolina at Charlotte.

Pembina Pipeline Corp., the Canadian energy transportation company and joint venture partner in the Cedar Floating LNG project in British Columbia, said it had appointed former Chief Financial Officer Scott Burrows as the company's permanent President and Chief Executive and had concluded an executive search process.

The leader of the Haisla First Nation in British Columbia, Chief Councillor Crystal Smith, along with Pembina Pipeline Corp. Interim President and Chief Executive Scott Burrows and the Cedar LNG CEO Doug Arnell have spoken with optimism about the future development of the Cedar LNG project as it awarded an engineering contract.

Chief Councillor Smith and Pembina's Burrows said the 50-50 partnership’s joint venture had reached critical points in developing the floating LNG export plant near Kitimat in BC.

The FLNG project will be located in the Douglas Channel  and is expected have a liquefaction capacity of up to 4 million tonnes per annum of LNG.

Feed gas for Cedar FLNG will be sourced from the prolific Montney natural gas resource play in northeast BC.

Cedar LNG said it was pleased to announce an agreement with liquefaction technology firm Black & Veatch and South Korean shipbuilder Samsung Heavy Industries (SHI) for the front-end engineering and design (FEED) of the project's proposed floating liquefaction, storage and offloading units.

“Cedar LNG is rooted in meaningfully creating a low-carbon, Indigenous-led business that respects local values and protects the environment,” said Cedar's CEO Arnell.

“The project's low-carbon footprint, coupled with the use of Black & Veatch and Samsung's expertise and technology will result in a state-of-the-art facility the Haisla Nation, British Columbia and Canada can be proud of,” he stated.

FID in 2023

Cedar LNG expects to make a final investment decision in 2023 following completion of the environmental assessment process.

Subject to additional factors, including regulatory and other approvals, the expected in-service date for the project is 2027.

Both Smith and Burrows said their venture was strategically positioned to leverage Canada's abundant natural gas supply and “provide a critical, Indigenous-partnered solution” to support the global clean energy transition.

With recent advancements in the project's regulatory and engineering development, Smith outlined what it meant for the region.

“The Cedar LNG project will be the largest First Nation-owned infrastructure project in Canada, creating jobs, contracting and other economic opportunities for the Haisla Nation, the community of Kitimat, neighbouring Indigenous Nations, and the local region,” stated Smith.

“Cedar LNG represents long-term growth for our region in a way that protects our land and environment, and we are excited to see the project move forward in its environmental assessment process with innovative technology and reduced environmental footprint,” she explained.

Review phase

The application for an Environmental Assessment Certificate (EAC) was recently submitted to the British Columbia Environmental Assessment Office, moving the project into the 180-day application review phase.

This key landmark follows detailed engineering studies and engagement with Indigenous and local communities.

“The submission of our application for an EAC represents another significant step forward in exporting Canadian LNG to overseas markets, while supporting long-term prosperity for the Haisla Nation and the region,” explained Pembina’s Burrows.

“Each time we've returned to our design, whether to include community input or account for leading technology, we've made important improvements that have resulted in a superior project that respects the values of the local community and minimizes environmental effects,” declared the Pembina Interim CEO.

Delfin LNG, the US floating liquefaction and export project proposed for offshore Louisiana, has filed with the Federal Energy Regulatory Commission for a third extension of permits to complete the venture.

June 4 (LNGJ) - Black and Veatch of the US, the Kansas-based supplier of LNG and energy equipment and solutions, has been selected to conduct a technical, engineering and commercial study for the Andes Energy Terminal project in the South American nation of Colombia. The gas-to-power venture would be centred on Buenaventura in Colombia’s Aguadulce Peninsula.

   “The study will build on commercial and technical work previously completed by the sponsors and focus on the development of an LNG regasification facility and 400 megawatts of natural gas-fired power generation for cities in central and southwestern Colombia,” said the company.