Image Courtesy: Atlantic LNG
Atlantic LNG’s production dropped 23.2 percent year on year in September. This marked as the first monthly decline this year. Atlantic LNG currently operates 4 liquefaction trains in its Point Fortin facility.
Rise of US Oil and Gas Output
In its annual World Energy Outlook report, the IEA said its main projection scenario through to 2040 foresees the US accounting for nearly 75% and 40% of global oil and gas growth, respectively, over the next six years. The agency said that demand growth through 2025 should be driven by China and from the late 2020’s to 2040 by India and the Middle East. The report also highlighted that governments will have a very critical role to play in determining the future of energy systems and policies.
The application of hydraulic fracturing and horizontal drilling has propelled US’s position as a major player in the oil and gas industry. The boom of shale oil and LNG exports has helped US transition from a net importer to a net exporter of energy. Earlier this month the US Energy Department said that US oil production had climbed to a record 11.3 million barrels per day. Roughly half of this can be accounted towards oil produced from shale plays.
Fig 1. US Field Production of Crude Oil
Sources
World Energy Outlook Report, IEA EIA Website
Cheniere Signs Train 6 EPC Deal
Image Courtesy: Cheniere
The long awaited Sabine Pass Train 6 has reached a major milestone after Cheniere confirms the EPC deal with Bechtel.
Jack Fusco, Cheniere’s CEO said, “We have finalized the Sabine Pass Train 6 EPC contract with Bechtel, and we are releasing Bechtel to commence early engineering, procurement, and construction activities for Train 6 ahead of making a final investment decision.”
Sabine Pass LNG started shipping the chilled fuel in early 2016, currently Trains 1 to 4 are operational and Train 5 is undergoing commissioning activities.
Corpus Christi LNG Plant Update
Image Courtesy: Cheniere
Another Cheniere project nearing completion and further advancing US LNG exports.
According to Cheniere’s CEO Jack Fusco, “Corpus Train 2 continues to progress on an accelerated schedule and we expect substantial completion in the second half of next year.”
Corpus Christi is a three train liquefaction project where each train is capable of producing 4.5 million tonnes of LNG per annum. Cheniere also owns and operates its Sabine Pass LNG export terminal.
APLNG and QCLNG Agree to Share Infrastructure
Image Courtesy: Bechtel
Sharing infrastructure could be an increasingly growing trend among LNG plants that are in the same region. It would be interesting to see if this would become popular among the booming LNG plants in the US Gulf Coast.
S&P Global Platts: Contractors Express Caution On Bidding For New US LNG Export Projects
Facing unprecedented “pressure to sign engineering, procurement and construction deals for the lowest possible amount,” engineering, procurement, and construction firms (EPCs) are reported to vocalize their concerns.
“From my perspective, the way we hear about dollars per ton this and dollars per ton that. The answer is not the lowest dollar per ton. The answer is we have collaborated and innovated to make sure we have the best possible cost, the best possible schedule and the best possible certainty of outcome.
-Bechtel President Aladair Cathcart”