Hydrocarbon Processing - February 2021 - GP-4

GAS PROCESSING NEWS
A. BLUME, Editor-in-Chief

U.S. FERC approves
Alaska LNG
import project
U.S. energy regulators
approved a plan by Marathon
Petroleum Corp.'s Trans-Foreland
Pipeline Co. LLC unit to convert
the Kenai LNG export plant in
Alaska into an import terminal.
Trans-Foreland has 2 yr to put
the proposed project into service.
The facility would import
up to four tanker loads of LNG
per year and use its boil-off gas
management system to deliver
imported gas to the adjacent
Kenai refinery. The Kenai LNG
export plant entered service in
1969, but it has not exported
LNG since 2015.

Nikkiso Cryogenic
sells turbo line
to Air Liquide

Nikkiso Cryogenic Industries'
Clean Energy and Industrial Gases
Group, part of Nikkiso Co. Ltd.
of Japan, announced the sale
of its Turboexpander Business
Line to Air Liquide in January.
The Turboexpander Business
Line designs, manufactures and
sells turboexpanders within the
industrial gas and NGL industries.
Nikkiso's Cryogenic Service
unit will remain an authorized
service company and will
continue to provide aftermarket
services, including repair and
servicing of ACD designed and
built turboexpander machines,
while Air Liquide will provide
service activities to its plants and
its third-party plant customers.
The acquisition was effective
January 1, 2021.

Double E seeks
approval for
Texas-New Mexico
gas pipeline

Double E Pipeline LLC has
asked U.S. energy regulator FERC
for permission to start building
its natural gas pipeline project in
Texas and New Mexico. Double
E is owned by units of Summit
Midstream Partners LP (70%) and
ExxonMobil Corp. (30%).
Double E Pipeline LLC plans to
build a 135-mi (217-km) pipeline
to transport 1.35 Bft3d of gas
from the Delaware Basin in the
Permian Shale in New Mexico and
Texas to the Waha Hub in West
Texas. Double E is one of several
pipelines proposed to transport
Permian gas and is expected to
enter service in 2021.

ADNOC, Total mark first unconventional gas from UAE
The unconventional
gas was delivered from the
Ruwais Diyab unconventional
gas concession, located
200 km west of Abu Dhabi
city, in November 2020.
The achievement marks a
significant milestone toward
future full field development
and is an important step
toward ADNOC's target of
producing 1 Bsft3d of gas from
the concession before 2030,
ultimately enabling gas selfsufficiency for the UAE.
The unconventional gas is
delivered through a purposebuilt gas pipeline and centralized early production facility in the Diyab field, which enables distribution
through ADNOC's gas network. The accelerated progress and strong collaboration between ADNOC and
Total enabled the companies to fast-track the exploration of the unconventional gas resources while tailoring
operations to the UAE's shale play type.
The milestone builds on ADNOC's continuous efforts to de-risk unconventional gas resources across
Abu Dhabi since 2016 and comes just over a year after the country announced the discovery of 160 Tsft3 of
unconventional gas recoverable resources.

Sempra to move forward
with Costa Azul LNG
Sempra Energy's ECA
Liquefaction subsidiary will
build the Costa Azul LNG export
plant in Mexico, the only LNG
export project in the world to
get a final investment decision
(FID) in 2020. The government
awarded the export permit on
the condition that the project will help offset an oversupply of gas
in the area. Sempra had been waiting for the export permit all year,
due to delays caused by the spread of the COVID-19 pandemic.
ECA Liquefaction is a JV between Sempra LNG and Sempra's
Mexican subsidiary, Infraestructura Energética Nova SAB de CV
(IEnova). The $2-B terminal is expected to produce first LNG in late
2024. The plant, which will have a nameplate capacity to produce
about 3.25 metric MMtpy of LNG, already has 20-yr agreements
with units of Mitsui & Co. Ltd. and Total SE for the purchase of
2.5 metric MMtpy from the project's first phase.
Costa Azul's Pacific Coast location gives it an advantage over
competing U.S. Gulf Coast export plants because it is closer to growing
Asian markets. U.S. terminals usually ship LNG to Asia through the
Panama Canal.

O&G industry commits to new
methane emissions reporting

In a move that will help tackle one of the largest and most solvable
contributors to the climate crisis, 62 major players in the oil and gas
industry that represent 30% of global oil and gas production have agreed
to report methane emissions with a new, higher level of transparency.
The Oil and Gas Methane Partnership (OGMP) is a Climate and Clean
Air Coalition initiative led by the UN Environment Program, the European
Commission and the Environmental Defense Fund. At the core of the
effort is a comprehensive, measurement-based methane-reporting
framework (OGMP 2.0) that will make it easier for officials, investors
and the public to accurately track and compare performance across
companies in ways that have not been possible to this point.
Crucially, the OGMP 2.0 includes not only a company's own
operations, but also the many JVs responsible for their production.
The OGMP 2.0 framework applies to the full oil and gas value chain,
including midstream transportation and downstream processing and
refining. To support the realization of global climate targets, OGMP 2.0
aims to deliver a 45% reduction in the industry's methane emissions
by 2025, and a 60%-75% reduction by 2030.

4 JANUARY/FEBRUARY 2021 | GasProcessingNews.com

Azerbaijan
starts gas exports
to European
market
Azerbaijan has started
commercial natural gas supplies
to Europe via the Trans Adriatic
Pipeline (TAP), beginning its push
into the lucrative energy market
dominated by Russia. The project
has the backing of the European
Commission as part of efforts to
curb Europe's dependence on
Russian energy. Russia controls
34% of Europe's gas market
and plans to raise gas exports
to Europe, including Turkey,
to 183 Bm3 in 2021 from the
171 Bm3-172 Bm3 expected
for 2020. Europe's annual
consumption stands at around
500 Bm3, used mostly in
power generation.
TAP is a part of the $40-B
Southern Gas Corridor, stretching
3,500 km from Azerbaijan
to Europe and drawing from
Azerbaijan's giant Shah Deniz
II field in the Caspian Sea.
Azerbaijan aims to supply
European gas markets with 10
Bm3y of gas, including 8 Bm3 to
Italy and a combined 2 Bm3 to
Greece and Bulgaria. It already
supplies gas to Turkey.
Azeri gas is unlikely to
change Russia's dominant
position in Europe, but it still
poses some threat to Russia's
share of the EU gas market.
Russia, meanwhile, is seeking to
complete its subsea Nord
Stream 2 gas pipeline project
to Germany, which stalled a
year ago due to U.S. sanctions.

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Hydrocarbon Processing - February 2021

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