LNG

China National Offshore Oil Corp., the Chinese energy major and with international and domestic LNG interests, has started production at its largest natural gas field in the central Bohai Sea offshore China.

PetroChina, the Chinese-listed and overseas unit of state-owned China National Petroleum Corp. and an LNG project stakeholder in Canada and Mozambique, reported an annual increase in net profits while revenues declined on lower commodity prices.

The Arabian Gulf state of Qatar said it was going ahead with a third huge expansion project for liquefied natural gas called the North Field West (NFW) project to take overall output to 142 million tonnes per annum by the end of the decade.

TC Energy Corp., whose activities include the building and ownership of pipelines in the US, Mexico and Canada and the LNG project called Coastal GasLink in British Columbia, has held an investor day with forecasts of a surge in feed gas for US Gulf Coast LNG and more progress on the spin-off of its liquids business.

TC Energy’s five divisions include Canadian Natural Gas Pipelines, US Natural Gas Pipeline, Mexican Natural gas Pipeline, Liquids Pipeline and Energy and Power Solutions.

François Poirier, TC Energy’s President and Chief Executive, told investors that the Coastal GasLink was completed while its US Southeast Gateway venture was on track for costs and schedule.

TC Energy’s presentation showed that the Calgary-based company was providing 30 percent of US LNG feed gas which is set to surge to 40 billion cubic feet per day of supply for liquefaction in the years ahead.

LNG wave

“We are well positioned to capture the next wave of LNG exports,” said the CEO.

At the start of October 2023 TC Energy completed the sale of 40 percent stakes for a total of C$5.3 billion (US$3.9Bln) in two US assets, Columbia Gas Transmission and Columbia Gulf Transmission, transporters of 20 percent of US LNG feed-gas volumes.

The company confirmed that the Columbia Gas and Columbia Gulf transactions were completed to the buyer, the New York-headquartered asset management firm Global Infrastructure Partners.

The Columbia Gas and Columbia Gulf pipelines span more than 15,000 miles across the North American natural gas network and are underpinned by strong long-term natural gas supplies and a rate-regulated commercial framework.

Southeast Gateway

“The Southeast Gateway Pipeline project continues to progress with its US$4.5Bln cost estimate and schedule,” said the company.

“TC Energy has made significant progress against its 2023 priorities, including project execution, deleveraging and maximizing the value of its asset base, which continues to generate excellent operational and financial results through all points in the economic cycle,” investors were told.

They were also told that the Liquids Pipelines business spin-off would be called South Bow Corp.

“South Bow symbolizes the historical roots of the company in Alberta, Canada, while acknowledging the pipeline system's strategic path southwards to the strongest US refining markets in the Gulf Coast and Midwest,” stated TC Energy.

“After a strong October and reflecting strength in the US dollar, the 2023 comparable EBITDA is now expected to be approximately 8 percent higher than 2022,” the company explained.

2024 priorities

“The company reaffirms its priority areas for 2024 and provides its expected comparable EBITDA growth outlook of 5 percent to 7 percent from 2023 to 2024, excluding any potential impact of its announced asset divestiture program, and prior to giving effect to the spin-off, which is expected to take place in the second half of 2024,” said TC Energy.

CEO Poirier added that over the past few years, TC Energy has been strategically pivoting capital to optimize its portfolio, leveraging core competencies and capturing the long-term growth potential in the natural gas and power businesses.

“Focusing on the value that can be delivered with two distinct strategies, the spin-off will unlock the evident value we see from each company’s unique opportunity set,” the CEO added.

“Subject to the requisite shareholder and regulatory approvals, upon closing of the spin-off transaction, South Bow is poised to be a low-risk liquids transportation and storage business, and with its anticipated investment-grade credit ratings, it can respond quickly in a market where it holds significant competitive advantages,” Poirier declared. 

The Canadian native American Haisla Nation of British Columbia and Pembina Pipeline Corp., who are partners in the development of Cedar LNG, have signed an accord with third parties to move forward with the venture proposed for the Douglas Channel.

TC Energy Corp., whose current ventures include the building of pipelines in the US, Mexico and Canada, said it had made “monumental progress” on the Coastal GasLink in British Columbia linking gas fields to the Shell-led LNG Canada venture and had achieved mechanical completion ahead of the year-end target.

The update came in its earnings as TC Energy reported a quarterly net loss of C$197 million (US$143M) versus a C$841M (US$612M) net profit in the same three months of 2022.

This was largely due to the after-tax impairment charge of C$1.18Bln (US$858M) for the three months to the ended of September 2023 related to TC Energy's equity investment in Coastal GasLink Pipeline partnership project company.

Calgary, Alberta-based TC Energy reported that net income for the nine months from January to September because of the impairment had dropped to C$1.36Bln from C$2.08Bln in the previous year.

“The team’s exceptional safety and construction execution on this challenging project means that we have reached 100 percent pipeline installation, including the successful hydrotesting of the full 670km (Coastal GasLink) pipeline length,” said François Poirier, TC Energy’s President and Chief Executive.

On track

“The project remains on track with the approximately C$14.5Bln cost estimate,” added Poirier.

TC Energy’s five divisions include Canadian Natural Gas Pipelines, US Natural Gas Pipeline, Mexican Natural gas Pipeline, Liquids Pipeline and Energy and Power Solutions.

“We are also delivering on our 2023 strategic priorities, including strengthening the balance sheet with the recent receipt of C$5.3Bln of asset sale proceeds that will be utilized for debt repayment and funding, along with maximizing the value of our assets with the announced intention to spin-off our Liquids Pipelines business,” the CEO explained.

At the start of October 2023 TC Energy completed the sale of 40 percent stakes for a total of C$5.3 billion (US$3.9Bln) in two US assets, Columbia Gas Transmission and Columbia Gulf Transmission, transporters of 20 percent of US LNG feed-gas volumes.

The Calgary, Alberta-based company confirmed that the Columbia Gas and Columbia Gulf stakes was completed to the buyer, the New York-headquartered asset management firm Global Infrastructure Partners (GIP).

US natural gas

The Canadian company described GIP as a “strong and reputable strategic and financial partner” that would help it unlock incremental value on the Columbia gas systems.

The Columbia Gas and Columbia Gulf pipelines span more than 15,000 miles across the North American natural gas network and are underpinned by strong long-term natural gas supplies and a rate-regulated commercial framework.

The company noted in its earnings highlights that quarterly US Gas Pipeline net profits rose to C$782M from C$714M and in the nine months to C$2.57Bln from C$1.73Bln because of US LNG feed-gas deliveries.

TC Energy said that US Natural Gas Pipelines LNG deliveries in the third quarter averaged 3.1 billion cubic feet per day, an increase from the third quarter of 2022.

The US Pipelines division also achieved a new record of deliveries to power generators of 5.2 Bcf on July 28, 2023.

TC Energy said that it delivered approximately 7 percent comparable gross earnings (EBITDA) growth of C$2.6Bln in the third quarter compared with $2.5Bn in the same three months of 2022.

Canada and Mexico

Nova Gas Transmission Ltd. (NGTL), TC Energy’s natural gas gathering and transportation system for the Western Canadian Sedimentary Basin connecting most of the natural gas production in western Canada to domestic and export markets, saw receipts average 14.0 Bcf per day, up 0.5 Bcf/d from the third quarter 2022.

NGTL System daily receipts reached 14.6 Bcf on August 6, 2023, the highest single day average on the pipeline.

TC Energy was also making progress together with Mexico’s Federal Electricity Commission (CFE) on the Southeast Gateway Project.

This consists of the construction of a marine pipeline that will transport natural gas, connecting the supply from Tuxpan, Veracruz, to delivery points in Coatzacoalcos, Veracruz and in Paraíso in Tabasco state.

“The Southeast Gateway Pipeline project continues to progress with its US$4.5Bln cost estimate and schedule,” said the company.

“Land rights and rights of way negotiations have closed and all critical permits for onshore construction have been received. We are advancing construction of onshore facilities and landfalls,” said the company.

“Offshore engineering is complete and offshore installation expected to commence prior to the end of 2023,” it added

In other Mexican projects, TC Energy placed the lateral section of the Villa de Reyes (VdR) pipeline into commercial service.

TC Energy also successfully completed two open seasons on Marketlink, supporting the sustained demand for Canadian crude on the Keystone Pipeline and Marketlink systems.

TC Energy Corp., whose current projects include the building of the Coastal GasLink pipeline for LNG Canada, has completed the sale of 40 percent stakes for a total of C$5.3 billion (US$3.9Bln) in two US assets, Columbia Gas Transmission and Columbia Gulf Transmission, transporters of 20 percent of US LNG feed-gas volumes.

TC Energy Corp., whose main current project is the building of the Coastal GasLink pipeline for the LNG Canada venture, has agreed to sell 40 percent stakes for C$5.2 billion (US$3.9Bln) in the two US assets, Columbia Gas Transmission and Columbia Gulf Transmission, the transporters of substantial US LNG feed-gas volumes.

Canadian liquefied natural gas will be in the spotlight as the world’s energy leaders take the stage at LNG2023, the pre-eminent meeting of the international LNG industry set to take place soon in Vancouver in British Columbia.

The LNG and natural gas industry will meet from July 10 to July 13 for a conference and exhibition hosted by the Canadian Gas Association (CGA) and which is the 20th edition of the largest triennial LNG event.

Up to 15,000 delegates and stakeholders from more than 85 countries are expected to attend LNG2023.

The organisers said that the event would feature more than 250 speakers and 150 exhibitors, providing delegates an essential voice in the “vital discourse on LNG’s role in ensuring future energy stability, sustainability and affordability” in the years to come.

“Canada is on the cusp of becoming an LNG exporting leader in a world demanding reliable, sustainable sources of responsibly produced energy,” says Jason Klein, the Chief Executive of LNG Canada, the Shell-led project in BC. Klein will open the conference on July 10 with a leadership dialogue session.

Global security

Klein intends to talk about ways the LNG Canada joint venture under construction in Kitimat on the traditional territory of the Haisla Nation can help provide global energy security while reducing global greenhouse-gas emissions by supplying LNG to displace coal as an energy source in Asia.

“Our future LNG business will provide security of supply for global markets that rely on Canada’s natural gas reserves to fuel their economies, reduce global GHG emissions as natural gas replaces the use of coal and brings significant economic growth and stability to British Columbia,” Klein explained.

Along with the many Canadian delegates and exhibitors, several Canadian industry and Indigenous leaders will represent the country at the global event.

Crystal Smith, Chair of the First Nations LNG Alliance, and Sharleen Gale, Chief Councillor of the Fort Nelson First Nation, will join energy leaders in discussing the important role LNG projects play in Indigenous reconciliation.

Also set to speak is Greg Ebel, CEO of Canada-based Enbridge Inc., which is a leading pipeline natural gas company and a growing supplier of North American LNG feed gas. Ebel will discuss LNG’s role in “facilitating an orderly” energy transition.

Mike Rose, President and CEO of energy company Tourmaline, has said he will focus on how the environmental impact of the LNG supply chain has been reduced through innovations in methane and carbon emissions mitigation.

The Canadian Gas Association said it intended to showcase Canadian organizations and innovations in a dedicated Canadian industry pavilion.

“CGA members include energy distribution and transmission companies, equipment manufacturers, and suppliers of goods and services to the industry and meet 38 percent of Canada’s energy needs,” the body noted.

Essential forum

Mel Ydreos, Executive Director of LNG2023, said the event would be an essential forum to understand the evolving policy environment and the latest technological advances.

“LNG will be crucial to resolving the global energy crisis and securing a reliable pathway to deeper decarbonisation,” stated Ydreos.

LNG2023 is presented by the International Gas Union (IGU), GTI Energy and the International Institute of Refrigeration (IIR).

For information or tickets visit www.lng2023.org

The Dutch Gate LNG import terminal in Rotterdam said that UK major BP and a subsidiary of Chinese major PetroChina would each separately acquire 2 million cubic metres per annum of regasification and corresponding storage capacity as part of the expansion plans of the facility in the Netherlands.