By CS LNG, Apr 11 2019 08:33AM
1. QP ANNOUNCES MAJOR CONTRACTS FOR QATAR’S LNG EXPANSION PROJECT
Qatar Petroleum announced that it has awarded a number of contracts related to Qatar’s LNG expansion project designed to enhance its capabilities by increasing LNG production capacity from 77 to 110mtpa by 2024. The contracts were announced by H E Saad bin Sherida Al Kaabi, the Minister of State for Energy Affairs and President & CEO of Qatar Petroleum, in a speech at the 19th International Conference & Exhibition on Liquefied Natural Gas in Shanghai (LNG2019). The Minister announced awarding the fabrication and installation of the offshore jackets to McDermott; and the contract for early site works required to prepare the site of the four new 8 mtpa LNG mega-trains in Ras Laffan Industrial City to a joint venture between Consolidated Contractors Company and Teyseer Trading and Contracting Company. H E the Minister also said: “We are in the tendering phase for 8 rigs for the development drilling. The Front End Engineering and Design of the Onshore Facilities with Chiyoda will be completed in the next few days. The main Invitations to tenders for the Engineering, Procurement and Construction of the Onshore Facilities will be issued before the end of this month. In a few weeks, qualified ship yards will be invited to participate in a tender for the provision of LNG ship construction slots for the LNG shipping fleet required for the LNG expansion project.” Minister Al Kaabi said: “The State of Qatar is partnering with many countries around the world to ensure the security of their energy supplies and the sustainability of their economic growth. As the largest LNG producer we are also expanding our capacity in many parts of the world. This includes adding 16 MTA from our Golden Pass LNG export project in the United States with our long-term strategic partner ExxonMobil. This project is under construction and should be in operation by 2024. It is worth noting that Qatar Petroleum and ExxonMobil have established Ocean LNG, which is an international joint venture marketing company that will be responsible for marketing all Golden pass LNG production.”
[Source: The Peninsula 03/04/2019]
CS LNG comment: And so the rush begins to dump another 50million tons of LNG into the market.
2. TOTAL INVESTS MORE IN TELLURIAN, DRIFTWOOD LNG
French energy major Total said it will invest more than $700 million in Houston-based Tellurian and its Driftwood liquefied natural gas export project in Louisiana. The deal, which includes the additional purchase of more LNG by Total, increases Total's already sizable interest in Tellurian and the roughly $30 billion LNG export and gas pipelines project. Total, which also is a major investor in the Cameron LNG project in Louisiana, is the world's second-largest LNG player after Royal Dutch Shell. Tellurian is focused on an integrated gas project, which includes piping gas all the way from West Texas' booming Permian Basin, processing the gas in Louisiana and exporting the LNG worldwide, especially to growing Asian markets. "The cost to produce natural gas in the U.S. continues to fall, as the engine of American innovation finds more efficient ways to apply technology to producing its vast energy resources," said Patrick Pouyanné, Total's Chairman and CEO said. "The Tellurian team has an established track record of developing and constructing energy infrastructure on time and at the lowest cost." Tellurian was co-founded by its chairman, Charif Souki, who founded and led Houston-based Cheniere Energy until his ouster. Cheniere is the nation's modern LNG export pioneer. As part of the deal, Total is making a $500 million equity investment in the Driftwood LNG project near Lake Charles, La. Total also will purchase about 20 million additional shares in Tellurian stock for $200 million, further upping Total's existing ownership stake. Total also agreed to buy 2.5 million metric tons of additional LNG from Tellurian per year for 15 years, based on the Japan-Korean LNG price marker. Tellurian expects to make a final investment decision and start construction on Driftwood LNG later this year. The goal is to start selling LNG in 2023 and to fully complete the project by 2026.
[Source: Houston Chronicle 03/04/2019]
CS LNG comment: Total clearly has faith in this project and definitely does not want to let Shell have all its own way in the US Gulf.
3. WOODSIDE, CHEVRON TO EXPAND CANADA’S KITIMAT LNG JV
Woodside Energy and Chevron Canada have applied for a new licence for their Kitimat LNG plant in northern British Columbia that could see it nearly double in size to produce 18mtpa, Chevron says. The companies submitted the application to Canada’s National Energy Board on Monday, with a revised plant design that may include up to three LNG trains, instead of two. “Chevron and Woodside have re-evaluated the originally proposed 2-train, 10mtpa LNG plant development concept, with a focus on improving Kitimat LNG cost of supply competitiveness relative to other global LNG projects,” Chevron said in a statement on Wednesday. The Kitimat LNG application follows the approval last October of the massive LNG Canada project, also located in Kitimat. That project is led by Royal Dutch Shell and will initially produce 14mtpa, with the option to increase to 28mtpa. A growing LNG industry in northern British Columbia would be a boon for western Canadian natural gas producers that would supply the projects, analysts said. “While very early days, the new LNG export licence application by Chevron Canada for its Kitimat LNG project could represent a nice source of long-term demand for domestic gas in Western Canada,” BMO Capital Market analyst wrote in a research note. Chevron and Woodside, which have a 50:50 joint venture in the project, have not yet set a date for a final investment decision for Kitimat LNG or disclosed cost estimates.
[Source: The West Australian 04/04/2019]
CS LNG comment: And just where is all of the new LNG actually going to go?