Gas Processing News
Wärtsilä awarded EPC contract for Antigua LNG terminal
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Antigua Power Co. Ltd. has awarded Wärtsilä an EPC contract to build a new LNG terminal on the island nation of Antigua. The project—being developed by U.S.-based Eagle LNG—combines a 46-MW dual-fuel power plant and an LNG terminal, storage and regasification facility. The plant will operate with five Wärtsilä 34DF dual-fuel engines capable of operating with both gas and light fuel oil. The new power plant will help satisfy increasing power demand on the island. The plant is expected to begin operations in 3Q 2023.
Tellurian begins construction on Driftwood LNG project
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In late March, Tellurian gave the greenlight to EPC firm Bechtel to begin limited construction on the 27.6-MMtpy Driftwood LNG project. Located near Lake Charles, Louisiana (U.S.), the multibillion-dollar project will export U.S. natural gas to international destinations. Current Phase 1 construction includes site preparation and laying foundations. Once financing is secured, Tellurian plans to moves forward with additional Phase 1 activities, including completing the construction of two LNG trains with a total processing capacity of 11 MMtpy. The operator plans to begin LNG exports in 2026.
NextDecade aims at FID for Rio Grande LNG project in 2H 2022
In March, NextDecade has signed a Heads of Agreement (HoA) contract with Chinese energy provider Guangdong Energy. The energy company agreed to purchase 1.5 MMtpy of LNG from NextDecade’s Rio Grande LNG terminal. The HoA contract brings NextDecade one step closer to reaching FID on the project, which the company intends to do in the second half of this year. If greenlighted, Train 1 operations are expected to commence in 2026.
Woodfibre LNG to commence construction
Woodfibre LNG plans to begin construction on the $1.6-B LNG export terminal in 2023. The 2.1-MMtpy facility will be located southwest of Squamish, British Columbia, Canada and will be built by McDermott—the company was awarded an engineering, procurement, fabrication and construction contract in late 2021. The terminal is scheduled to start commissioning in 2027.
Italy to possibly use two FSRUs to cut Russian dependence
To help wean off Russian natural gas supplies, Italy may install two floating storage and regasification units (FSRUs). The two vessels, with a total capacity of 10 Bm3y, will be in the Tyrrhenian Sea and the Adriatic Sea. At the time of this publication, a final investment decision has not been made on these projects.
Italian oil and gas company, Eni, has also announced a deal to source additional natural gas supplies from the Congo Republic. Eni plans to import an additional 4.5 Bm3y of natural gas from the African nation and will ramp up natural gas production within the Congo Republic—the company is part of an LNG project that is set to begin operations in 2023.
To mitigate Russian natural gas supplies, Italy has also signed new natural gas imports deals with Angola, Algeria and Egypt.
South Africa to build LNG terminal in Richards Bay
Transnet National Ports Authority (TNPA) has announced that a tender to build a new LNG import terminal in Richards Bay, South Africa has been sent out to potential companies around the world. Once it is operational in 2026, the terminal will help import additional natural gas feedstock to help mitigate electricity shortages within the country.
Germany to lease up to four FSRUs to satisfy domestic natural gas demand
To help wean off natural gas imports from Russia, Germany has announced plans to lease up to four FSRUs. These floating vessels will aid the country in importing natural gas until new terminals are built. At the time of this publication, three of the FSRUs are scheduled to begin operations by early 2023.
Germany has also announced plans to invest more than $3 B to build four LNG import terminals over the next decade.
TC Energy and GreenGasUSA to collaborate to build RNG transportation hubs
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TC Energy and GreenGasUSA have partnered to explore the development of a network of natural gas transportation hubs. These transportation hubs will provide centralized access to existing energy transportation infrastructure for renewable natural gas (RNG) sources, wastewater treatment facilities and landfills. RNG is a clean and reliable fuel that is often made from animal waste. According to TC Energy, as animal waste breaks down, it produces methane. The methane is captured—eliminating it from the atmosphere—and then processed to use as an energy source.
According to the JV’s announcement, GreenGasUSA will process RNG to pipeline quality and transport it to the RNG hub. TC Energy will build, own and operate the RNG transportation hubs. Combining TC Energy’s vast energy distribution network with GreenGasUSA’s extensive experience in gas compression, compressed natural gas (CNG) transportation and pipeline injection is expected to further increase methane capture and the use of renewable fuels within the energy mix. These transportation hubs are expected to be under development in several states along TC Energy’s 32,700-mi U.S. natural gas pipeline system within the next 4 yr. The first hub is targeted for service in 2Q 2023.
Cheniere begins Stage 3 work on Corpus Christi LNG terminal
Cheniere has awarded Bechtel a lump-sum EPC contract for Stage 3 operations at the company’s Corpus Christi Liquefaction terminal in Corpus Christi, Texas (U.S.). Stage 3 operations include the construction of seven mid-scale LNG trains, each with a processing capacity of nearly 1.5 MMtpy. Once built, Stage 3 will increase the terminal’s capacity by more than 10 MMtpy, reaching a total installed capacity of approximately 25 MMtpy. The expansion project is scheduled start LNG shipments in 2025. GP
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