LNG

Freeport LNG is continuing the restart of the Texas plant at Quintana Island on a phased basis after Hurricane Beryl damaged some plant equipment while the local Texas power company is hoping to re-connect all customers by July 19.

“We are completing initial repairs on the damage sustained to our fin-fan air-coolers in the hurricane,” said a Freeport spokesperson.

The Freeport plant is located 40 miles to the northeast of the hurricane’s landfall at Matagorda in Texas on July 8.

The company said it was restarting its first LNG Train and intended to re-start the two other liquefaction Trains shortly afterwards for output to progress to the nameplate capacity of 15 million tonnes per annum.

Reduced rates

However, output is expected to be at reduced rates at the plant that is experienced in re-starts after an explosion and fire at the facility in November 2022.  Most of 2023 was then spent carrying out repairs and having them approved after testing.

Regulatory and energy safety bodies are against quick re-starts until full safety checks have been carried out.

The Freeport plant has also had to await the lifting of port restrictions by the US Coast Coast and actions by other state bodies in the hurricane aftermath.

Power supplies across the state are expected to be 98 percent restored by July 17.

CenterPoint Energy, headquartered in Houston, Texas, is the main energy delivery company in the area responsible for electric transmission and distribution and natural gas supplies and has still to fully restore power.

CenterPoint said it had now restored power to 92 percent of impacted customers and remained on track to restore electricity to around 98 percent of impacted customers by the end of the day on Wednesday, July 17.

The company said it then expected to restore power to all customers who can receive it by Friday, July 19.

“We are grateful to our crews who have restored power to our customers at a stronger pace than we have been able to in any hurricane in our history, despite the difficult conditions,” explained Lynnae Wilson, Senior Vice President, Electric Business.

Work teams

“We continue to work around-the-clock to get our remaining customers back online,” she stated.

In addition to damaging CenterPoint's electric infrastructure, the company said that Hurricane Beryl may have caused damage to customer-owned equipment.

Specifically, customers in Texas were being asked to check their weatherhead, the point where power enters the home through an electric service drop, which is often a pipe located on the side of the residence or building.

“If the weatherhead is damaged, crews cannot safely restore service to the home until a licensed electrician has made the necessary repairs,” CentrePoint added.

Freeport LNG, the US export facility on Quintana Island in Texas, is set for regular operations as port restrictions are lifted after Hurricane Beryl and as power supplies across the state are expected to be 80 percent restored by July 14.

The US was taking hurricane protection measures for July 7 and July 8 as the first major storm of the season, Hurricane Beryl, blew past Jamaica and Mexico and entered the Gulf of Mexico as a severe Tropical Storm headed for Texas and Louisiana, the centres of oil and gas and LNG and feed-gas supplies.

Japanese trading house Mitsui and Company Ltd, has purchased more shale-gas assets in Texas and plans to bring them to full-scale development and production as possible feed-gas supplies for LNG output.

Côte d'Ivoire President Alassane Ouattara has outlined plans to boost oil and natural gas output three-fold in the West African nation by 2027 when it would become a major regional energy hub.

President Ouattara told a joint session of Parliament in a major speech that more than $15 billion was expected to be invested in the country's oil and gas sector, adding that output would grow to about 200,000 barrels per day (bpd) by 2027 from 60,000 at the moment.

He said that resources had been boosted by recent oil and gas discoveries including the Baleine and Calao offshore fields and Italy and others and nations would lead the investment to help the nation on the path to economic success.

“It will be a spectacular leap,” Ouattara declared to the legislature.

The Baleine field was discovered by Italian major Eni in 2021 and production started in 2023.

National resources

The Baleine oil and gas project alone will help ensure that the population has access to energy for daily living and the surplus would strengthens the Côte d'Ivoire's position as a regional energy hub.

The Côte d'Ivoire’s regional neighbours to the North, Senegal and Mauritania, are currently developing floating LNG projects and Senegal is starting its first offshore oil project backed by Australian LNG operator Woodside Energy.

Among Côte d'Ivoire’s southern neighbours, Nigeria is an established world-scale LNG and oil exporting nation.

Ouattara said that $10 billion would be invested in developing the Baleine field and this spending was taking place in three phases through 2027.

Certified reserves of the Baleine field, discovered by the Italian energy group in 2021, are estimated at 2.5 billion barrels of oil and 3.3 trillion cubic feet of natural gas.

Eni additionally announced in March 2024 that the Calao field had been discovered with preliminary assessments indicating potential resources ranging between 1 billion barrels of oil to 1.5 billion barrels of oil. 

Another neighbour Cameroon has a small FLNG project in operation, Ghana plans LNG imports and Angola is a major oil and gas nation.

Most recently, the Eni-led FLNG project in the Republic of Congo shipped its first cargo to Italy.

African Investment surge

The Côte d'Ivoire’s mainly oil production has varied significantly over the past two decades as existing fields have become depleted, closed for maintenance or development works and as new discoveries have been made but have needed further investment and development.

Eni’s partner in the Baleine project and other ventures in Côte d'Ivoire is the nation's state energy company, Société Nationale d'Opérations Pétrolières de la Côte d'Ivoire (Petroci).

In addition to the CI-101 block, Eni owns stakes in four other blocks in the Ivorian deepwater.

They are CI-205, CI-501, CI-504 and CI-802, all with the same partner Petroci.

Baleine's initial gas production is destined to boost the domestic market, strengthening access to energy for the people of Côte d'Ivoire. 

April 4 (LNGJ) - The UK is scheduled to receive its first April liquefied natural gas cargo from the US next week at the Dragon import terminal at the Port of Milford Haven in Wales.

   The vessel “Seapeak Arwa” with 165,500 cubic metres capacity is scheduled to discharge the US shipment on April 10 at the Dragon facility, according to shipping data. The cargo was lifted on March 28 from the Cameron LNG plant in Louisiana operated by Sempra.

French major and leading European LNG sector participant TotalEnergies has signed an agreement to acquire 100 percent of US firm Talos Low Carbon and its carbon-capture and storage projects and has also bought some Texas shale-gas assets.

Feb 27 (LNGJ) - The first March LNG cargoes are heading for the UK from Trinidad and the US. The vessel “Magdala” with 173,400 cubic metres capacity is scheduled to discharge a cargo on March 1 at the Dragon import terminal in Milford Haven, according to shipping data. The cargo was lifted on February 19 from the Point Fortin plant in Trinidad.

   The “Maran Gas Vergina” with 173,605 cubic metres capacity is due to berth with a US cargo on March 4 at the South Hook terminal at Milford Haven. The cargo was lifted from the Cameron plant near Lake Charles in Louisiana on February 21.

Sempra Infrastructure, a subsidiary of US utility Sempra and whose projects included Cameron LNG in Louisiana, Port Arthur LNG in Texas and Costa Azul LNG in Mexico, has signed a collaboration accord with the state-backed Japan Bank for International Cooperation (JBIC) covering future financial structuring opportunities.

Sempra said that through the memorandum of understanding, Sempra Infrastructure and JBIC aimed to further project structuring to improve the global energy supply chain through LNG and other decarbonization efforts in both the US and Japan.

“Sempra Infrastructure is thrilled to expand its collaboration with JBIC as we look forward to advancing projects that lower the carbon intensity of our energy delivery assets in North America,” said Justin Bird, Chief Executive of Sempra Infrastructure.

“We have built our relationships with customers and the export credit agencies in Japan over the past decade and are excited to expand our relationship with JBIC as we continue developing projects in support of our net-zero business,” Bird explained.

JBIC LNG role

“This collaboration will help us continue advancing our mission of developing energy infrastructure that provides access to safe, secure and affordable energy to our global partners,” the CEO declared.

Sempra noted that it had partnered in various ways with Japanese companies for many years.

“More recently, these partnership efforts are reflected in Sempra Infrastructure's Cameron LNG facility and a recently announced strategic collaboration with a Japanese consortium, which calls for an evaluation of potential enhancements of the energy supply chain through e-natural gas,” said Sempra.

“In addition, the company is developing the Hackberry Carbon Sequestration Project, which contemplates the participation of two Japanese companies. Both development projects are in close geographical proximity to the Cameron LNG facility,” Sempra stated.

As Japan's policy-based financial institution, JBIC has a mission to continue to financially support the creation of business opportunities for Japanese companies and to underpin the Asian nation’s energy security.

Mexico and Texas plants

Sempra Infrastructure in 2023 completed the sale of a stake in the Port Arthur LNG project in Texas to US asset management firm Kohlberg Karvis Roberts (KKR), which is already a stakeholder in the Infrastructure unit.

KKR now holds a 42 percent indirect, non-controlling interest share of the Port Arthur LNG Phase 1 project.

The transaction resulted in Sempra Infrastructure retaining a controlling 28 percent indirect interest in Port Arthur Phase 1 at the project level, and ConocoPhillips owning the remaining 30 percent interest.

The Sempra Infrastructure unit in 2023 reached a positive final investment decision for Port Arthur Phase 1 and contracted US engineering firm Bechtel Energy to build the facility.

Progress also continues at Energía Costa Azul LNG Phase 1 on the Pacific Coast of Mexico where construction at the Mexican export project remains on track to reach commercial operations by the summer of 2025.

The San Diego, California-based company is also pursuing a Phase 2 development project at the Cameron plant in Louisiana.

Jan 24 (LNGJ) - Two US LNG cargoes are heading for the Netherlands, including the first delivery of February. The vessel “Diamond Gas Metropolis” with 174,100 cubic metres capacity is scheduled to discharge a cargo on January 30 at the Dutch Gate terminal in Rotterdam. Shipping data shows that the cargo was loaded on January 16 at the Cameron export plant in Louisiana, operated by Sempra.

   The carrier “Woodside Rees Withers” with 173,400 of capacity is scheduled to deliver a cargo on February 2 to the Eemshaven floating terminal in Groningen. The cargo was lifted on January 19 from the Cheniere Energy-operated plant at Corpus Christi in Texas.