Fluor Corporation announced on June 1 that its joint venture with JGC Corporation, JGC Fluor BC LNG II, received a Limited Notice To Proceed” (LNTP) for the proposed Phase 2 expansion of LNG Canada.
Ksi Lisims LNG LP, the consortium that owns the proposed Ksi Lisims LNG project to be located on the northwest coast of British Columbia, announced on May 27 that it had entered into a Heads of Agreement with Germany’s state-owned SEFE (Securing Energy for Europe) for the sale and purchase of 1 m
TC Energy announced that Coastal GasLink (CGL) and the LNG Canada have agreed to commercial terms with respect to Phase 2 of the CGL pipeline, a key milestone to advancing the project to FID. Phase 2 would double the pipeline's current capacity of approximately 2.1 Bcf/d to deliver feed gas from northeast British Columbia to the Shell-operated LNG Canada export facility on Canada's west coast at Kitimat, B.C. Phase 2 would be developed in conjunction with a doubling of the LNG Canada facility's current export capacity of 14 MMtpa. Among other things, the commercial agreement has LNG Canada leading construction of CGL Phase 2. TC Energy is the operator of the Coastal GasLink pipeline, while Shell is the operator of the LNG Canada facility.
As a part of what the Trump administration has coined as its “Energy Dominance” initiatives, the administration has thrown its support behind several infrastructure projects that have long been on the industry’s radar but, for one reason or another, not come to fruition.
On November 4, the Williams Companies held their third-quarter earnings call. The focus was very much on natural gas, including multiple expansions of the Williams pipelines and storage, diverse both in geography and in the markets served, plus a discussion of the recent Williams investment in Woodside LNG’s Louisiana LNG terminal.
Things are not looking so good in the liquefied natural gas sector. LNG prices--both in the spot market and in contracts linked to oil prices—are very low, LNG demand growth is weak or non-existent, and a flood of new liquefaction capacity is coming online. But as we’re starting to see with crude oil, markets thrown out of whack respond; they try to self-heal. Low LNG prices are spurring demand growth in Europe and attracting some new buyers—Egypt, Jordan and Pakistan among them. The pace of liquefaction-capacity expansions is slowing. And Asia may finally get an LNG hub, which would only improve LNG’s long-term prospects there. Today, we continue our look at the fast-changing international market for LNG with an assessment of demand and destinations.
The six liquefaction “trains” under development at Cheniere Energy’s Sabine Pass liquefied natural gas (LNG) terminal will demand nearly 4 Bcf/d of natural gas on average, the first 650 MMcf/d of that starting within a few months. And the five trains now planned at Cheniere’s Corpus Christi site—yes, now five, not three—will require another 3.2 Bcf/d. Taken together, that’s about 10% of current daily gas production in the U.S.; in other words, a monumental logistical task. Today, we start a series looking at the challenges of securing and moving huge volumes of gas to LNG export terminals, the emerging epicenters of U.S. gas demand.
