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Sempra Energy’s Energía Costa Azul LNG (ECA LNG) subsidiary reached a final investment decision (FID) to build its $2-billion Phase 1 natural gas liquefaction export project in Baja California, Mexico. ECA LNG, a joint venture between Sempra LNG and its Mexico subsidiary IEnova, is the only LNG export project to reach FID in 2020, and is slated to be the first on the Pacific Coast of North America. The facility will connect natural gas supply from Texas and the western US to Mexico and other countries across the Pacific Basin. First production from Phase 1 is expected in late 2024. The company secured a 20-year supply agreement with Mitsui and an affiliate of Total for the purchase of 2.5 mtpa and is working with Total for a potential equity investment in the facility.
ADNOC LNG signed a supply agreement for up to 6 years with Vitol for the sale of 1.8 mtpa of post-2022 LNG volumes, and a 2-year supply agreement with Total for 0.75 mtpa of 2021 and 2022 LNG volumes. The agreements continue ADNOC’s transition to a multi-customer strategy that began in 2019, and follow its investment partnership with Vitol in global storage terminal owner and operator VTTI. Since then, the company shifted from supplying 90% of its LNG to Japan to supplying 90% of LNG to clients in more than eight countries from across southern and southeast Asia. The agreement is also in line with its 2030 gas strategy to deliver value for UAE and meet global demand, which is expected to grow by up to 5% annually over the next 20 years. ADNOC LNG, owned by ADNOC (70%), Mitsui & Co (15%), BP (10%), and Total (5%), produces about 6 mtpa of LNG from its Das Island facilities off the coast of Abu Dhabi.
This is the second EPC contract Bechtel signed for Port Arthur LNG. Final investment decision is expected this year. The agreement comes 8 months after Saudi Aramco agreed to take a 25% ownership interest in the southeast Texas project. Phase 1 of the project is expected to produce 11 mtpa of LNG. The deal with project developer Sempra includes Saudi Aramco netting 5 mtpa of LNG offtake and a 25% equity stake in Phase 1 of the export terminal, which may reach FID later this year.
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Train 7 is scheduled for commissioning by 2024 and would bring total capacity of Nigeria LNG’s complex to 30 mtpa. OTC announces Distinguished Achievement Awards for 2020. Eni credits an integrated work model for the startup just 3 weeks after completion. Under the model, various disciplines worked in parallel from the exploration phase and synergies with existing production facilities were leveraged. After failing to meet a previous 2018 deadline, the owners of the Bonny Island plant say they are close to sanctioning the expansion project following the signing of a letter of intent to a consortium of Saipem Chiyoda and Daewoo for EPC services.
The Mozambique LNG project expects to achieve financial close in Q3. The W-Industries contract comes 2 months after Worley was awarded a master service agreement for services on the Mozambique LNG project. The Rovuma LNG project in Mozambique was expected to reach FID later this year, with startup in 2025. The Eni-operated project will be the first FLNG vessel deployed in a deepwater field offshore the African continent upon its projected 2022 startup. Samsung Heavy Industries completed the operation at its shipyard in Geoje, South Korea.
The Mozambique LNG project expects to achieve financial close in Q3. The W-Industries contract comes 2 months after Worley was awarded a master service agreement for services on the Mozambique LNG project. Proposal requests were sent to companies to solicit partnerships for the project with ADNOC and ADPower. The Eni-operated project will be the first FLNG vessel deployed in a deepwater field offshore the African continent upon its projected 2022 startup. Samsung Heavy Industries completed the operation at its shipyard in Geoje, South Korea.
Cyberhawk will provide drone inspection, surveying, data visualization services, and inspection reports. The LNG project includes development of offshore gas fields in Mozambique’s Area 1 and a liquefaction plant with a capacity in excess of 12 mtpa. The gas turbines are slated for delivery in the 2H 2021 and 1H 2022, and the compressors are expected in 2021. Bechtel will design the LNG facility with a final contract price proposal by spring 2021. If built, Goldboro LNG would be the largest megaproject in Nova Scotia’s history.