U.S. liquefaction plant developer Venture Global sees LNG-fuelled power generation as “a counter” to China’s building spree of new coal power units. By turning to LNG, utilities can “regain control of the energy transition in the post-Covid-19 era," Venture Global co-founder Michael Sabel told the Gastech Virtual Summit.
Fossil fuels will make up 54 percent of the world’s primary energy supply in 2025, and much of this supply will come from natural gas, as it becomes the world’s largest energy source from the mid-2020. However, just 13% of that natural gas will be decarbonised in 2050.
Singapore-based Keppel Shipyard has been contracted to convert an LNG carrier to a floating storage and regasification unit (FSRU) for use at El Salvador’s first LNG-to-power project. The FRSU will be installed in the second half of 2021, for the power plant to start operating before year-end.
The contract was awarded by FSRU Development Pte, a joint venture company between BW Gas and Invenergy Investment. The latter is a major investor in Energia del Pacifico (EDP), developer of the LNG-to-power project at Port of Acajutla.
Keppel said its two latest contract wins, for the FSRU and for a US hopper-dredger, were worth around S$200 million (US$147m).
FSRU capacity pegged at 137,000 cbm
BW Group did not disclose which carrier Keppel will convert to an FSRU, but market observers expect the capacity will be around 137,000 cubic meters. The Norwegian ship-owner has five carriers with similar capacities that may be used for the conversion.
For Keppel the conversion order is the fifth so far. It previously delivered Hilli Episeyo, the world’s first floating LNG vessel and is currently converting Gimi for its second FLNG conversion and Singapore’s first LNG bunkering vessel.
Lead time under 24 months
Financial close was reached in December 2019, in time for the integrated LNG regas and power project to be built, commissioned and ready for operational start within 24 months. The project brings approximately $1 billion foreign direct investment for the Central American nation, making it the largest private investment ever in the country.
The FSRU for the Acajutla power plant will permanently moored offshore to convert a steady stream of LNG to natural gas as fuel for power generation. Once regasified, the gas fuel will be transported from the FSRU to the power plant through a sub-sea pipeline to be built by Boskalis.
The overall Acajutla LNG-to Power project will consist of a 378 MW gas-fired power plant, the FSRU and a 44 kilometre electric transmission line that will link the plant with the Central American Electrical Interconnection System which links the grid of six countries.
Shell agreed to supply LNG for the power project under a long-term contract with EDP, El Salvador’s incumbent energy company.
Though travel restrictions are still in place in the Dominican Republic to contain the coronavirus, Siemens is striving to deliver a barge-mounted power plant, based on SGT-800 gas turbine, on time and on budget. The 145 MW Estrella del Mar III is due to start operations by spring 2021.
At the time of writing, 37 cargoes (2.48mmt) shipped since mid-August remain in transit, with 15 (0.99mmt) still lacking confirmed destinations within the Pacific and Atlantic Basins.
Elba Island LNG
Elba Island LNG has exported a rare cargo in late August, its first since January this year. The 0.07mmt cargo aboard the Maran Gas Hector arrived at Chile’s Quintero terminal on 15th September. Elba Island suffered a temporary setback to start operations at full capacity due to a fire in mid-May.
Exports from Cameron LNG declined significantly between July and September, our data shows. Whereas July exports amounted to 0.63mmt (94pct utilisation), total shipments had decreased by 0.14mmt (-22pct) to 0.49mmt in August (74pct utilisation). We did not record any Cameron LNG exports in September. At the time of writing, the plant had only one cargo still in transit – a projected 0.05mmt delivery via the Diamond Gas Rose to Tianjin – Nangang LNG around 10th October.
Cove Point LNG
Cove Point LNG maintained shipped volumes in July/August at almost nameplate capacity but saw a significant decrease in exports in September. July shipments amounted to 0.43mmt (98pct utilisation) with their August equivalent coming in at 0.42mmt (96pct utilisation). However, September exports decreased by 0.17mmt to just 0.25mmt (-40pct). There are currently four Cove Point cargoes in transit – two headed for the Pacific and Ogishima in Japan and two to Rotterdam and Europe.
Freeport LNG slashed exports between March and July but recovered in August and September. Whilst July only saw one shipment via the Castillo de Merida, exports in August climbed to 0.23mmt (31pct utilisation) and reached 0.55mmt (74pct utilisation) September. The plant still had five cargoes amounting to 0.36mmt in transit at the end of September, 15mmt (42pct) of which are expected to arrive in China and South Korea whilst the remaining 0.21mmt (58pct) are due in Europe.
Corpus Christi LNG
In line with most of its fellow exporting plants, the facility in Texas saw utilisation recover from 25pct in July to 110pct on 0.82mmt shipped in September. As in May-June, Corpus Christi continued to ship the majority of its LNG – 0.80mmt (56pct) – to destinations in the Pacific and the Far East. Only 0.44mmt (31pct) are earmarked for Brazil and Europe, which leaves 0.11mmt shipped to the Middle East.
Sabine Pass LNG
Sabine Pass LNG’s exports stood at just 0.60mmt in July and 0.61mmt in August, pegging capacity utilisation at only 32pct over the two months. This contrasted starkly to the full utilisation seen in March-April. Although Sabine Pass’s exports improved markedly by showing 0.48mmt (79pct) month-on-month growth to 1.09mmt in September, this still left the plant at only 58pct utilisation for the month. Sabine Pass exports were mainly headed to the Far East (36pct), with South Korea taking up the lion share of 0.61mmt.
Petrobras is to review Hygo's (formerly Golar Power) participation in a tender for an import terminal to be built at Salvador in the light of bribery allegations against its CEO.