McDermott, Chiyoda and Zachry Group Announce First Cargo from Freeport LNG Train 2

First cargo of liquefied natural gas shipped from Train 2 of the Freeport LNG project Project team maintains a continuous focus on safety and quality Accomplishment is a precursor to substantial completion of Train 2 Below is the full press release from McDermott HOUSTON, Dec. 18, 2019 McDermott International, Inc. along with its partners, Chiyoda International Corporation and Zachry Group, announced today that the first commissioning cargo of liquefied natural gas (LNG) has been shipped from Train 2 of the Freeport LNG project on Quintana...

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Cheniere: Innovative deal structuring on Corpus Christi

This year saw one of the first innovative upstream gas supply deals for a US Gulf Coast liquefaction plant. In June, Cheniere had signed a long term gas supply agreement with Apache for its Corpus Christi Stage III trains. The Corpus Christi Stage III project is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of approximately 9.5mtpa. The supply agreement will be for gas volumes of 15mmbtu/day, delivered to Corpus Christi, and more importantly Apache will receive a gas price...

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PGNiG confirms termination of Russian gas imports from end 2022

Poland's PGNiG has notified Gazprom of its intention to terminate imports of Russian pipeline gas from the end of 2022. This will now increase the country's reliant on US LNG (which at this time many US Gulf Coast LNG projects still have to be sanctioned and not guaranteed to come online) and the long awaited Baltic pipeline to take Norwegian gas to Poland. The move is not a big surprise and is completely consistent with all the messages the...

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Blackrock and GIC acquires critical North Sea gas infrastructure

Blackrock and GIC have announced the acquisition of Kellas Midstream from Antin. Antin was expected to launch an auction process for Kellas Midstream at the end of the year and it appears that Blackrock and GIC moved quickly and were able to agree a deal ahead of the formal auction. No sale price was disclosed but believed to be in the range of £1.4-2.0 billion. There will be a number of disappointed parties out there who were lining themselves...

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Is Busta a bust?

Exploration well on the Busta prospect on PL782S has been drilled in 127m of water in the Jotun-Balder area of the Norwegian North Sea. It appears to be a marginal discovery with preliminary resource estimates of 6-60mmboe (vs. pre-drill 50-200mmboe). Two separate gas/condensate and oil-bearing intervals totaling ~25m were encountered -the primary target hitting the reservoir with the secondary target water bearing. Busta is...

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SNE partners buy FPSO

Cairn and FAR have announced a material increase in the capex for the SNE development from USD2.2 billion to USD3.7 billion (plus USD500 million contingency) for Phase 1. This has been driven by the partners' decision to buy an FPSO rather than lease it. This does however bring the opex down, estimated form c.USD14/boe to c.USD11/boe. FID is expected to be taken at the end of 2019 with first oil forecast for late 2022. The development will...

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European gas storage is full

European gas storage is full and Equinor has highlighted three potential catalysts that could provide short term relief for the current super low European gas prices A delay to Nord Stream 2 due to sanctions The lack of a transit agreement with Ukraine A colder than expected winter The Nord Stream 2 project was expected to come onstream on 1 January 2020. However with ongoing concerns that the EU's reliance on Russian gas continues to grow...

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