LNG

Italian oil and gas and LNG project engineering company Saipem, which has extensive global subsea and pipeline expertise, said it reached “new and important project” landmarks by contributing to the start of production of the Payara field, offshore the tiny nation of Guyana in the northeast corner of South America.

The start of production of the offshore oil field is the third project to which Saipem has contributed in the Stabroek Block

The field is operated by a consortium comprising US major ExxonMobil Corp, New York-based Hess Corp., currently being acquired by Chevron Corp., and the Chinese major China National Offshore Oil Corp.

Saipem contributed to the project development by providing engineering, procurement, construction and installation of the underwater facilities.

Saipem installed over 130 kilometres of thick rigid pipelines and risers in about 2,000 metres of water depth.

Guyana reserves

Guyana is among the leading oil and gas reserve holders in Latin America and will be a future large exporter of hydrocarbons along with Argentina, Brazil and Mexico as well as LNG producers Peru and Trinidad and Tobago.

The contract was fully released in 2020 by ExxonMobil Guyana and Saipem said its leading subsea assets such as “FDS2” and “Saipem Constellation” were deployed to carry out the project.

Furthermore, Saipem used its fabrication facility in Georgetown, Guyana, for the fabrication of 48 rigid jumpers, ensuring important local activity and jobs and enhancing sustainable investment in the country.

“Saipem has a consolidated presence in the country, having previously contributed to the development of the two phases of the Liza Project and to the start of the Yellowtail Project,” said the Milan-based company.

Guyana economic boost

The International Energy Agency noted that oil will be required for vehicle transport in the South American and Caribbean region well through 2050.

“Oil production has been rising in Brazil and Guyana, while it is in decline in Venezuela and Mexico,” said the IEA.

“Increased demand and prices for liquefied natural gas has also shone a spotlight on the important role played by LNG exporters such as Trinidad and Tobago and Peru in easing market tightness,” the Paris-based agency added.

Oil currently accounts for 86 percent of energy consumption today in the Latin American transport sector compared with 91 percent globally.

“The share of oil in road transport will decline below 80 percent by 2030 to around 40 percent by 2050,” said the IEA, forecasting that 60 percent of bus and other vehicle transport will come from the “growing use of electricity and bioenergy” vehicles.

“However, rising incomes also prompts an increase in the ownership of appliances and air conditioners, which are the main drivers of electricity consumption growth,” it added.

Thailand’s new Nong Fab LNG regasification terminal in Rayong province, the nation’s second import facility, has received first volumes of LNG for commissioning and is on track for full commercial start-up in 2022.

PTT Group, the national energy company of Thailand, is behind the Nong Fab project.

PTT is expanding regasification capacity and LNG imports after completing several expansions at the single existing Thai import terminal at Map Ta Phut, which can now handle 11.5 million tonnes per annum.

The Nong Fab terminal is adjacent to the Map Ta Phut industrial area in Rayong and will have total regasification capacity of 7.5 MTPA.

Thailand has opted for the more permanent onshore LNG terminals rather that a floating storage and regasification unit (FSRU), seen mainly as a fast-track energy solution.

The new terminal is currently being completed by Italian energy engineering firm, Saipem, and Taiwan-based CTCI Corp.

Saipem and CTCI were awarded the engineering, procurement and construction contract for the facility four years ago and with an estimated cost of around $900 million.

Experienced

It was Milan-based Saipem who announced the first volumes of LNG being introduced into the Nong Fab facility. The company is one of the world's most experienced LNG engineering firms with expertise in subsea, liquefaction and regasification projects.

“Saipem is pleased to inform that on 18 June the Nong Fab LNG regasification terminal, located in the Mueang Rayong district in Thailand and executed by Saipem in a joint venture with its partner CTCI, began offloading the first LNG from a carrier moored at the terminal jetty,” said the Saipem statement.

Saipem added that the scope of the work for the project, which began in July 2018, included two 250,000 cubic metres capacity LNG storage tanks, the regasification and pipeline eqipment and a six-kilometre trestle unloading facility as well as an administrative building.

“It is a particularly significant project which is marked by its tank capacity (the largest ever executed in Thailand) and by the world’s largest trestle in the LNG sector,” explained Saipem.

“The offloading of the first LNG was achieved thanks to the expertise, quality and efforts of Saipem’s team in Thailand as well as the strong support of the client, PTT LNG,” the company added.

Saipem stated that full commissioning and start-up were expected before year-end and would provide the country with a stable and reliable energy supply in response to increasing power demand in Thailand.

“The project, confirms Saipem’s role in the LNG and regasification sectors, thanks to its long-standing expertise in complex projects, which are always executed applying the highest safety standards,” Saipem declared.

Renergen, the emerging South African domestic natural gas and helium producer with LNG production plans, has awarded the front-end engineering and design work to Italian energy contractor Saipem for the downstream development of the Virginia Gas project in the Free State.