Gas Processing News

Lee Nichols, Gulf Publishing Company

Nord Stream 2 ready for commissioning

GP News Nord Stream 2

Russia’s Gazprom announced in late December that the $11-B Nord Stream 2 pipeline is ready to start sending natural gas to Germany. The natural gas pipeline, which will span the length of the Baltic Sea, will run approximately 1,200 km from Western Russia to Greifswald, Germany. Once commissioned, the pipeline will send 55-Bm3y of natural gas to Western Europe. However, Russia’s actions against Ukraine may delay the start of natural gas flows to Europe—at the time of this publication, Germany regulators have yet to sign off on the project and announced they may not approve the pipeline until 2H 2022. Once approved, Nord Stream 2 will help satisfy natural gas demand in Western Europe.

New Fortress Energy to develop an energy hub in western Africa

New Fortress Energy (NFE) signed a Memorandum of Understanding (MoU) with the government of Mauritania to develop an energy hub in the country. The hub will utilize the country’s offshore natural gas reserves to develop natural gas, power, LNG and blue ammonia projects.

According to NFE, the company will deploy its Fast LNG liquefaction technology to produce LNG for local gas and power markets, as well as international exports. NFE will also supply natural gas to the 180-MW Somolec power plant and a new 120-MW combined-cycle power plant that is planned to be built. The MoU will also support the development of blue ammonia projects in the country.

Shell to supply CO2 capture technology for Calpine’s energy center

Shell Catalysts & Technologies will provide its Cansolv CO2 technology for a natural gas combined-cycle power plant at Calpine’s Deer Park Energy Center in Deer Park, Texas (U.S.). The post-combustion CO2 capture facility will be designed to capture approximately 5 MMtpy of CO2. Shell, along with TechnipEnergies, will also provide FEED work for the project. The FEED study is expected to be completed in early 2023. The Deer Park Energy Center supplies a baseload capacity of more than 1,100 MW to the Texas grid system.

U.S. to become largest LNG exporter this year


According to data by the U.S. Energy Information Administration (EIA), the U.S. became the third-largest LNG exporter in 2020 and will become the world’s largest LNG exporter once additional trains at Sabine Pass and Calcasieu Pass begin operations this year.

By the end of 1Q, Cheniere plans to start Train 6 at its Sabine Pass LNG site in Louisiana. Once operational, the 5-MMtpy Train 6 will increase total LNG production capacity to 30 MMtpy.

Venture Global also plans to start exporting LNG out of its Calcasieu Pass LNG facility in the first half of this year. The $10-B project, located in Louisiana, consists of 18 liquefaction trains.

The completion of these two projects will increase U.S. LNG export capacity to nearly 14 Bft3y. Additional U.S. LNG projects are also being developed. Gulf Energy Information’s Global Energy Infrastructure database is tracking more than 350 MMtpy of active LNG liquefaction projects in the U.S. However, many of these projects have not reached final investment decision (FID). According to the International Gas Union, the U.S. accounts for nearly 40% of pre-FID capacity globally.

Mitsui and Vopak to own/operate largest FSRU

Mitsui and Vopak have signed an agreement to jointly own and operate the FSRU Challenger, which upon completion, will be the largest FSRU in operation. The FSRU, which will be located approximately 25 km offshore Hong Kong Island, will have a storage capacity of 263,000 m3 and a regasification capacity of 800 MMft3d. The vessel is scheduled to begin operations in mid-2022. Once operational, the FSRU will provide natural gas to domestic power plants.

JERA retires four LNG power plants, seeks to build three new ones

JERA, Japan’s largest power generator, announced that it has retired four old LNG-fired power plants at its Anegasaki power station near Tokyo, Japan. The retirement of the older plants will make way for three new, less-polluting LNG plants. JERA said that the new LNG units will start operations in 2023.

Höegh LNG to provide FSRU for São Paulo

To help satisfy Brazilian natural gas demand, Höegh LNG has signed a charter deal with Brazilian gas trading and distribution company Compass Gas and Energia. Höegh LNG plans to install the 170,000-m3Höegh Gannet floating storage and regasification unit (FSRU) at Compass Gas and Energia’s subsidiary—Terminal de Regaseificacao de GNL de São Paulo—in São Paulo. The FSRU is part of a planned 4-MMtpy import terminal at the site.

The new FSRU, one of five LNG imports planned for Sao Paulo, is scheduled to begin operations in late 2022/early 2023.

Venice Energy to build LNG facility at Port Adelaide

Venice Energy has received approval from the Australian government to build an LNG import facility in Port Adelaide, South Australia. The more than $180-MM Outer Harbor LNG project plans to install an FSRU to supply natural gas to South Australia. Construction is scheduled to begin in mid-2021, with operations to commence in late 2023/early 2024. This LNG import project is one of several LNG import projects being developed in Australia. Most LNG import projects in Australia are in the states of New South Wales and Victoria.

Petronas awards FEED contract for Sabah LNG project

Petronas awarded two front-end engineering design (FEED) contracts for the 2-MMtpy Sabah LNG project. The FEED contracts were awarded to Saipem SpA and the JGC Corp.-Samsung Heavy Industries JV. The winner of this dual-FEED contract competition will be awarded the engineering, procurement, construction and commissioning contract. The new near-shore LNG terminal will be built near the Sipitang Oil and Gas Industrial Park in Sipitang, Sabah, Malaysia. It will receive natural gas feedstock from the offshore Sabah gas fields. If built, the Sabah LNG facility will begin operations by 2027, increasing Malaysia’s total LNG production to approximately 4.7 MMtpy.

QatarEnergy awards major contract for North Field expansion project

GP News Qatarenergy

QatarEnergy awarded an EPCI contract to McDermott to help expand North Field natural gas operations in Qatar. According to McDermott, the contract includes 13 normally unmanned wellhead topsides, in addition to various connecting pipelines and the shore approaches for the North Field East pipelines, beach valve stations and buildings. The jackets and the pipelines for the North Field South project will be subject to a separate tender, which is expected to be awarded in the first half of this year.

The expansion project will enable Qatar to increase domestic LNG liquefaction capacity from 77 MMtpy to 126 MMtpy by 2030. This increase in capacity will be possible through additional natural gas feedstock from the North Field East and North Field South expansion projects. First LNG is expected to be produced in 2025.

Novatek’s Arctic LNG 2 project secures financing

Novatek announced that its nearly 19-MMtpy Arctic LNG 2 project has secured financing. The $21-B, three-train LNG export facility is being developed on the Gydan Peninsula in Northern Russia. FID on the project was reached in 2019. The first train is scheduled to begin operations in 2023. All trains are expected to be operational by 2027. The LNG facility will provide natural gas to Asia and Europe.

Maire Tecnimont awarded engineering works by Eni for a carbon capture plant

Maire Tecnimont announced that its subsidiary, NextChem, has been awarded an engineering contract from Eni for a carbon capture plant at the natural gas plant of Casalborsetti, Italy. The plant’s goal is to separate carbon dioxide (CO2) from emissions from the natural gas plant’s turbo compressor, purify and compress it. The new plant is designed to capture 25,000 tpy of CO2.

New LNG terminal to be built in Karnataka, India

LNG Alliance, the Government of Karnataka and New Mangalore Port Trust plan to build a large-scale LNG import terminal in Karnataka, India. The facility’s first phase includes the construction of a 4-MMtpy LNG import facility, with the potential to double to 8 MMtpy, if needed. The LNG import terminal plans to utilize a $290-MM FSRU to import natural gas that will be used to satisfy increasing demand in the state of Karnataka. Additional infrastructure will include an LNG truck loading facility and an LNG bunkering facility. This additional infrastructure will enable the facility to provide LNG supplies to the state’s transportation sector and marine vessels.

Petronas delivers Hiroshima Gas’ first carbon neutral LNG cargo

Petronas’ subsidiary, Malaysia LNG, delivered a carbon neutral LNG cargo to Japanese gas company Hiroshima Gas Co. According to CME Group, carbon-neutral LNG involves offsetting the carbon emissions
from the LNG supply chain through the purchase of carbon offsets.

Siemens awarded major power contract in Brazil

GP News Brazil GNA 1 Construction

Siemens has been awarded a turnkey construction contract for a combined-cycle power plant in Brazil. The UTE GNA 2 power plant is part of the integrated LNG-to-power project GNA 2—GNA 1 began commercial operations in late 3Q 2021. The power plant will be in the Port of Açu, approximately 290 km from Rio de Janeiro in the Brazilian state of São Paulo. The more than $1.13-B project will add an additional 1.7 GW of power, and includes the construction of a second combined-cycle power plant, an LNG regasification terminal (FSRU) and transmission infrastructure.

Global gas and LNG: Six trends to watch in 2022

In the report “Six things to watch for in 2022,” Wood Mackenzie provided insights into six major trends affecting the global natural gas and LNG sectors in 2022. One, the start of operations of Russia’s Nord Stream 2 pipeline could lower natural gas prices for Western Europe; however, tensions between the regions could hamper pipeline flows. Two, oil-indexation levels are expected to rise, potentially reaching 12% of a weighted average basis. Three, there is a momentum behind new LNG projects that could lead to several projects taking FIDs. Four, the priority shifts from offsetting CO2 emissions to material carbon reduction; however, FIDs on capital-intensive measures (e.g., carbon capture and sequestration) are not likely. Five, global gas demand will remain resilient in the short term. Finally, natural gas is considered a transitional investment in the European Union taxonomy.

Canadian Natural Resources to raise capital spending this year

Canadian Natural Resources announced it will increase capital spending this year. The company cited sustained oil recovery and gas prices from pandemic-driven historic lows. Canadian Natural Resources will increase spending to more than $3.4 B. The company also announced it will increase production.

BCCK awarded contract for Marcellus-Utica gas facility

BCCK Holding Co. was awarded an EPC contract to improve overall project economics at a cryogenic gas facility in the Marcellus-Utica Basin in southeastern Ohio (U.S.). According to BCCK, the company has developed an effective modification that will improve on the existing cryogenic plant design and equipment, increasing propane recovery and associated revenue in the process. The project will utilize a skidded BCCK patent-pending design, which will be available to enhance propane recoveries at many of the existing 200-MMsft3d facilities operating throughout the U.S.

Fincantieri begins construction on largest U.S. LNG barge

Fincantieri Bay Shipbuilding has started construction on the largest LNG bunkering barge ever built in the U.S. The 416-ft, 12,000-m3 vessel is scheduled to be completed in late 2023.

Once completed, the vessel will be under contract with Crowley, the largest independent operator of tank vessels in the U.S. Crowley will operate the vessel under a long-term charter with Shell. The vessel was designed by Crowley Engineering Services, the company’s naval architecture and marine engineering solution group.

The ship will be used along the U.S. East Coast to expand current LNG network capacity and satisfy demand for cleaner energy sources for ships. LNG fuel is one way to help decarbonize the shipping industry.

McDermott wins major construction contract for Scarborough project

GP News Pluto LNG Plant

In January, Woodside awarded McDermott an engineering, procurement, construction, installation and commissioning (EPCIC) contract for a floating production unit for the $12-B Scarborough LNG project. The floating production unit will process natural gas from offshore fields. It includes gas separation, dehydration, compression, mono-ethylene glycol regeneration and produced-water handling.

According to McDermott, the integrated scope also includes the design, fabrication, integration, transportation and installation of the hull and topsides. The 30,000-t topside will be fabricated by McDermott’s JV fabrication yard, Qingdao McDermott Wuchuan, in China. The project scope includes a battery energy storage system to reduce emissions on the topsides and support Woodside’s net emissions reduction targets.

Designed for a production capacity of up to 1.8 Bsft3d, the topside will be connected to the semi-submersible hull and pre-commissioned prior to transportation and installation in a water depth of 3,100 ft (950 m), nearly 250 mi offshore Western Australia.

According to Woodside’s website, the Scarborough project will extract natural gas from the Carnarvon Basin offshore Western Australia and deliver it via a 430-km pipeline to a proposed second LNG train (Pluto Train 2) at the Pluto LNG facility.

TotalEnergies signs agreements for the development of low-carbon natural gas projects in Oman

TotalEnergies has signed several agreements with the Sultanate of Oman for sustainable development of the country’s natural gas resources. According to TechnipEnergies, the agreements include:

  • The development of Marsa LNG, an integrated company between TechnipEnergies (80%) and Oman National Oil Co., OQ (20%). The JV includes the possible development of a low-carbon LNG plant in Sohar to produce LNG bunker fuel.
  • The development of Block 10 natural gas fields in the western side of the country. Marsa LNG will hold a 33.19% interest in Block 10, with the project partners OQ and Shell Integrated Gas Oman B.V. holding the rest.
  • A gas sales agreement under which Marsa LNG will sell natural gas from Block 10 to the government of Oman for a duration of 18 yr or until the startup of the Marsa LNG plant.

Brazil imports record LNG in 2021

According to Petrobras, Brazil imported 23 MMm3d of LNG in 2021. This is a 200% increase in total LNG imports vs. 2020. Severe droughts in the country led to a deficit in power generation by hydroelectric power. To satisfy energy demand, Brazil was forced to import natural gas from countries like Trinidad and Tobago, the U.S. and Qatar. These supplies help supplement deficits for power generation.

Borouge to help power Egyptian Decent Life project

As part of Egypt’s $38-B Decent Life project, Borouge is collaborating with Egypt Gas to provide energy and infrastructure solutions to power thousands of households in Egypt. Borouge will provide gas distribution pipes to help Egypt build a safe and reliable gas distribution network. GP


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