Hydrocarbon Processing - August 2021 - GP-4

GAS PROCESSING NEWS
A. BLUME, Editor-in-Chief
LNG's share of Indian gas demand to rise to 70% by 2030
The share of LNG in India's gas
consumption could rise to 70% from
the present 50% in 10 yr, and new
import terminals are needed, according
to LNG import terminal operator
Petronet LNG Ltd. Prime Minister
Narendra Modi has set a target to raise
the share of natural gas in the country's
energy mix to 15% by 2030 from 6.3%
to cut its carbon footprint.
To meet that target, India's gas
consumption must rise to 640 MMsm3
from 155 MMsm3
d. Indian companies
are investing billions of dollars to strengthen gas infrastructure, including laying 15,000 km of pipelines to supply
cleaner fuel to households and industries. India has 17,000 km of gas pipeline network at present.
Furthermore, LNG projects with a collective capacity of 19 metric MMtpy are under construction, and plans
are in the works to increase the use of LNG in trucks and buses. Replacing approximately 30% of India's crude
oil imports with LNG would save $10 B at a global oil price of $74/bbl.
Excelerate Energy FSRU Returns
to Bahia Blanca
U.S. approves
Enable's Louisiana
Gulf Run pipeline
The U.S. Federal Energy
Excelerate Energy LP's floating storage and regasification unit
(FSRU) Exemplar has begun operations in Bahia Blanca, a port city
located 400 mi south of the Argentine capital Buenos Aires. The
Exemplar, with a storage capacity of 150,900 m3
, will deliver LNG for the
2021 winter season in Argentina, providing reliability and stability to the
country's energy system despite operating in the challenging conditions
of the South Atlantic.
The return of Excelerate's FSRU comes after the company won an
international, competitive tender for seasonal regasification service in
Bahia Blanca. In 2008 Excelerate developed the Bahia Blanca GasPort,
South America's first LNG import terminal, and has also operated GNL
Escobar, an LNG import terminal along the Paraná River, since 2011.
Panama announces
$1-B gas plant
Panama intends to construct
a $1-B plant for electricity
generation, using natural gas, as
the Central American country
seeks to increase its share of
cleaner energy. Consortium
Consorcio Group Energy Gas
Panama, made up of private
companies InterEnergy Group
and AES Panama, as well as the
government, will be responsible
for the construction, development
and operation of the plant.
Called Gatun, the plant will
be located at Isla Telfers near
the port of Colon and have the
capacity to produce 670 MW. The
plant will start operations in late
2023 or early 2024.
Pembina Pipeline
to buy 50% stake
in Cedar LNG
Pembina Pipeline Corp.
has agreed to buy a 50% stake
in Canada's proposed $2.4-B,
3-MMtpy Cedar LNG project to
develop the floating LNG facility in
British Columbia in partnership with
indigenous group the Haisla Nation.
The FID is expected in 2023.
Pembina, which will acquire
the equity interests in Cedar LNG
from PTE Cedar LP and Delfin
Midstream Inc., will operate the
project going forward. Haisla
will own the remaining 50%
stake. Cedar LNG lies within the
traditional territory of the Haisla
Nation and aims to provide LNG to
Asia-Pacific markets.
4 JULY/AUGUST 2021 | GasProcessingNews.com
Regulatory Commission (FERC)
approved Enable Midstream
Partners' request to build the
Gulf Run natural gas pipeline
in Louisiana, according to a
filing. However, in what has
become a recurring theme in
pipeline approvals, the FERC
commissioners differed on how
the Commission should consider
greenhouse gas emissions from
proposed projects.
FERC Chairman Richard
Glick and Commissioner Allison
Clements said they dissented
on the Gulf Run decision, in
part because they said the
FERC should have prepared a
supplemental environmental
impact statement to examine
the effect that greenhouse gas
emissions caused by the project
will have on climate change.
Most of the gas transported
on Gulf Run will go to Qatar
Petroleum/ExxonMobil Corp.'s
Golden Pass LNG export plant
under construction in Texas. The
first liquefaction train at Golden
Pass is expected to enter service
in 2025. The Gulf Run project
includes about 134 mi (216 km)
of new pipe and other facilities
that will provide about 1.7 Bft3
d
of transportation service from
Enable's existing Westdale
compressor in Red River Parish,
Louisiana, to an interconnect with
the Golden Pass Pipeline near
Starks, Louisiana.
Enable previously estimated
the cost of Gulf Run at $540 MM
and anticipated the project could
be placed into service in late
2022, subject to FERC approval. In
its filing, the FERC estimated the
cost of the project at $1.2 B.
d
LNG trade rises
to record in 2020
Global LNG trade volumes rose
to a record last year, led by Asia,
although growth was marginal as
demand was slammed by COVID19-induced
restrictions, according
to a report by the International
Gas Union (IGU).
Overall, LNG trade increased to
356.1 metric MMt in 2020, up by
1.4 metric MMt, or about 0.4%, from
2019, mostly driven by increased
exports from the U.S. and Australia.
This was smaller than the growth
of 40.9 metric MMt, or 11.5%, in
2019. However, LNG was one of
the few commodities that saw an
increase in trade in 2020.
Extended lockdowns and the
increased share of renewables
in the energy mix reduced LNG
net imports into Europe by
4.3 metric MMt. COVID-19 also
severely impacted liquefaction
development, with companies
delaying FIDs on projects to 2021
and later because of the uncertain
economic climate. A total of 87.3
metric MMtpy of liquefaction
capacity were expected to be
sanctioned in 2020, but only one
project of 3.25 metric MMtpy in
Mexico was approved.
New regasification projects in
China and India will continue to
support gas demand, while new
projects under construction in
Ghana, El Salvador, Cyprus and
Nicaragua are expected online
over the next 2 yr.
Saipem awarded
gas plant project
Saipem received a letter of
award from ADNOC Sour Gas, a
subsidiary of Abu Dhabi National
Oil Co. (ADNOC), for a new
contract related to the Optimum
Shah Gas Expansion (OSGE) and
Gas Gathering project in the UAE.
The $510-MM EPC contract covers
the expansion and upgrade of the
existing Shah gas plant.
The project will increase the
daily gas treatment capacity
of the Shah gas plant by 13%,
from the current production
capacity of 1.28 Bsft3
Bsft3
d to 1.45
d, representing a cumulative
increase to 145% of the original
design capacity of the plant.
The Shah gas plant is the
largest sour gas plant in the
world. Due to a higher sulfur
content, the plant requires specific
technologies to ensure safety
and respect for the environment.
The technologies utilized also will
ensure continuity of production
during maintenance work and
minimize downtime.

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Hydrocarbon Processing - August 2021

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