LNG

With five liquefied natural gas import terminals in operation, France has now assumed the role of a leading regasified LNG supplier to the European Union, especially Germany and other neighbours, as gas from Russia’s Gazprom has been easily replaced with increasing gas flows from West to East in the EU.

The French port of Le Havre has again become a liquefied natural gas importation point for the first time since the 1980s as commissioning activities were starting for the floating storage and regasification unit (FSRU) “Cape Ann” after its safe arrival in the face of protests.

GRTgaz, the French gas grid company with three liquefied natural gas import terminals under its control, began transporting pipeline gas to Germany after reversing the normal flow on the only link between the two nations and since then European Union day-ahead spot gas prices have dropped, though other influences have been at play.

GRTgaz, the French natural gas transmission company with three liquefied natural gas import terminals under its control, said LNG would help it through the winter season and was working on reversing flows to Germany following the cut-off of pipeline supplies from Russia to the European Union.

France is moving ahead with its fifth LNG import terminal with a floating storage and regasification unit (FSRU) being deployed at the port of Le Havre on the northeast coast of Normandy where there had previously been an onshore facility that handled deliveries of LNG from Algeria for Gaz de France.

GRTgaz, the French natural gas transmission company, said LNG terminal subsidiary Elengy received 176 cargoes in 2021 at the three terminals in Western and Southern France as it gave an overview of last year’s gas transportation and storage activities.

HAM Group, the Spanish LNG fuel provider and filing station developer, has signed a truck-loading agreement with a French truck-loading import terminal near Marseilles because of expected unavailability in Spain through gas network company and LNG terminal operator Enagás.

Engie of France, whose widespread operations include utilities, gas networks and a liquefied natural gas business, has named Catherine MacGregor as its new Chief Executive after she had previously been lined up to head the LNG engineering spin-off from TechnipFMC.

French energy major Total has signed an agreement to renew its partnership in the field of liquefied natural gas with the North African state of Algeria as Italian energy company Eni also advances with projects.

The accord between Total and Algerian oil and gas company Sonatrach allows the extension of the existing supply contracts for three additional years.

This will provide 2 million tonnes per annum of Algerian LNG to the French market, primarily through the LNG import terminal at Fos Cavaou, located east of the Mediterranean port of Marseilles.

Total said that the agreement also included the sub-charter of one of its LNG carriers to Sonatrach.

“This agreement is part of the long history of cooperation between Total and Sonatrach,” said Laurent Vivier, President for gas at Total.

“Thanks to the quality of our relationship we were able to conclude it in an extremely volatile market environment,” added Vivier.

“This new contract further enhances the flexibility of Total's LNG portfolio and strengthens our position as a major partner of Sonatrach,” he stated.

Total noted it was a historic player in the energy sector in Algeria for almost 70 years.

The group is active in oil and gas exploration and production, participating interests in the TFT II and Timimoun gas fields and in the oil fields of the Berkine Basin in southeast Algeria.

In addition, Total and Sonatrach have launched engineering studies for a petrochemical project in Western Algeria.

Algerian LNG exports have been falling and in the most recent official annual figures dropped by over 18 percent to about 10 million tonnes compared with 12.34MT the previous year from its two liquefaction plants at Skikda and Arzew on the Mediterranean Coast.

Italian energy company Eni and Sonatrach have completed the construction of the natural gas pipeline connecting the Bir Rebaa Nord and Menzel Ledjmet Est fields in the Berkine Basin.

The completion comes as Algeria is making three-pronged marketing efforts to direct new gas finds into domestic industry, for export as pipeline gas to Europe and as LNG to mostly European markets amid low prices and high global volumes.

The new Berkine Basin pipeline is 185 kilometres in length and 16 inches in diameter and will transport capacity of 7 million standard cubic metres of gas per day to markets.


That project will allow for the export of the associated gas produced in Block 403 and the development of the gas fields of the blocks of North Berkine, where the drilling of the first four wells have already been completed and linked.

Sonatrach has been increasing the capacity of its export infrastructure like the Medgaz gas pipeline to Spain, and building a new LNG jetty at the Skikda liquefaction plant.

GRTgaz, the French natural gas network operator and owner of LNG import terminals, has issued a report on gas flows and imports and exports during the Covid-19 crisis and the evolution of consumption and demand as gas-fired power stations begin to restart.