LNG

Santos Ltd, the Australian operator of two liquefied natural gas export plants and a main shareholder in Papua New Guinea LNG assets, has seen its shares surge on take-over speculation, separately involving the Saudi Arabian Oil Company and Abu Dhabi National Oil Company.

Saudi Arabia, the latest entrant into the LNG market with two supply contracts signed in Texas, has discovered seven more oil and gas fields in the Kingdom’s Eastern Province and in the Empty Quarter.

Saudi Energy Minister Prince Abdulaziz bin Salman said Saudi Arabian Oil Company (Aramco) had just discovered “two unconventional oil fields, a reservoir of light Arabian oil, two natural gas fields, and two natural gas reservoirs” in recent weeks.

Two unconventional oil fields and one reservoir were discovered in the Saudi Eastern Province while the two natural gas fields and two gas reservoirs are in the Empty Quarter.

The “Ladam” unconventional oil field was discovered in the Eastern Province after the flow of very light Arabian oil in the Ladam-2 well at a rate of 5,100 barrels per day, accompanied by about 4.9 million standard cubic feet of gas per day.

In addition to having much more oil and gas than Texas, Aramco was still happy to sign to supply agreements with the Port Arthur LNG project and the Rio Grande LNG joint venture.

Discoveries list

Outlining its own recent discoveries, Aramco added that the “Al-Farouk” unconventional oil field was discovered in the Eastern Province after Arab ultra-light oil flowed from the Al-Farouk-4 well at a rate of 4,557 barrels per day, accompanied by about 3.79 million standard cubic feet of gas per day.

The “Unayzah” reservoir was discovered in the “Mazalij” field in the Eastern Province, after Arab Light oil flowed from the Mazalij-62 well at a rate of 1,780 barrels per day, accompanied by about 0.7 million standard cubic feet of gas per day.

The “Al-Jahaq” resources were found in the Empty Quarter after natural gas flowed from the “Al-Arab-C” reservoir in Al-Jahaq-1 well at a rate of 5.3 million standard cubic feet per day, and from the “Al-Arab-D” reservoir in the same well at a rate of 1.1 million standard cubic feet per day. 

The Empty Quarter is the largest continuous sand desert in the world and is almost the size of France, covering about 650,000 square kilometres of arid and inhospitable terrain - containing nothing but oil and gas.

The “Al-Katuf” field was discovered in the Empty Quarter after natural gas flowed into Al-Katuf-1 well at a rate of 7.6 million standard cubic feet per day, accompanied by about 40 barrels per day of condensate.

The “Hanifa” reservoir was found in the “Asikra” field in the Empty Quarter after natural gas flowed in the Asikra-6 well at a rate of 4.9 million standard cubic feet per day.

LNG deals

Aramco has signed a second US LNG accord to receive volumes from another Texas export, the Port Arthur liquefaction joint venture in Texas being developed by Sempra Infrastucture, and has followed up on a deal signed earlier in June with the Rio Grande export project in the Port of Brownsville.

Sempra has signed a non-binding Heads of Agreement as part of a 20-year deal for Aramco to offtake 5 million tonnes per annum from the Port Arthur LNG Phase Two expansion.

The accord also contemplates Aramco taking a 25 percent participation in the project-level equity of Phase Two.

The Aramco deal with the Port Arthur project follows an earlier accord signed by the Saudis in mid-June 2024 with NextDecade Corp., the developer of the Rio Grande LNG export plant in Texas.

Aramco and NextDecade confirmed a non-binding accord for the supply of cargoes from the future Train 4 of the Rio Grande plant being constructed at the Port of Brownsville.

That Heads of Agreement was for 20 years and was also with the upstream division of Aramco.

The Rio Grande project is located on 984 acres of land which has been leased long term and includes 15,000 feet of frontage on the Brownsville Ship Channel. 

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.

Technip Energies, the leading European energy and liquefied natural gas project engineers, reported increased net profits and revenues as the backlog was also boosted by Middle East LNG contract awards in the United Arab Emirates and in Oman.

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.

Sempra, the US utility company with power and natural gas services centred on California and Texas and LNG developments in the US and Mexico through the Sempra Infrastructure subsidiary, posted solid third-quarter earnings and said it expected to increase capital investment by up to 20 percent above the current $40 billion over the next five years.

Chart Industries Inc., the liquefied natural gas equipment-maker and industrial gas and energy technology company, posted solid third-quarter results including record operating income and backlog of orders.

Sempra Infrastructure, the owner of the Cameron LNG plant in Louisiana and with other LNG interests in the US and Mexico, has named Tania Ortiz Mena has President of the company.

Sept 22 (LNGJ) - Sempra Infrastructure, the US LNG plant owner and developer and an offshoot of utility company Sempra, said the US Federal Energy Regulatory Commission had approved the permit authorizing the Port Arthur LNG Phase II expansion project proposed for Jefferson County in Texas where the first phase is already proceeding. The latest FERC permit allows for the construction of two additional liquefaction Trains producing up to 13.2 million tonnes per annum of LNG and doubling overall output to around 26.4 MTPA from four Trains of around 6.6 MTPA of capacity.

   The expected start-up dates for the Port Arthur first phase of Train 1 and Train 2 are in 2027 and 2028. “Sempra Infrastructure is committed to investing in infrastructure opportunities that help enable a cleaner and more secure energy future,” said Justin Bird, Chief Executive of Sempra Infrastructure. “The FERC order is a significant step, creating an opportunity to double the amount of secure and reliable US natural gas that Port Arthur LNG can help deliver to global markets,” Bird added.