Two New U.S. LNG Projects Pick Up Funding

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

There's enough interest to move forward with the pipeline phase of a project that could eventually see LNG delivered from Alaska. Developers of another plant in Louisiana have reached a final investment decision.

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Alaska LNG Phase I Ready to Go

Glenfarne Alaska announced Monday that ConocoPhillips, Exxon Mobil Corporation, Hilcorp Alaska and Great Bear Pantheon LLC, a subsidiary of Pantheon Resources--all major North Slope producers--together signed a 30-year supply agreement to feed the first phase of the project. According to Industrial Info Resources data, the Alaska liquefied natural gas (LNG) project would need such substantial funding to move forward.

Industrial Info Resources is tracking 17 projects related to Alaska LNG, totaling more than US$30 billion of investment. Industrial Info Resources offers more information on the massive project in its Global Market Intelligence (GMI) Oil & Gas Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and project report.

"All major North Slope producers have now committed enough natural gas to support a Phase I final investment decision," said Adam Prestidge, the president of Glenfarne Alaska. "Today's milestone agreement establishes the commercial terms for ConocoPhillips to supply gas and help Phase I of Alaska LNG provide energy security for Alaska."

Glenfarne split the development into two phases earlier this year. The first phase would include a 739-mile, 42-inch pipeline that would be constructed in four sections, with potential tie-backs to existing midstream infrastructure. It will be difficult, however, to build a pipeline in the Alaskan tundra given a construction window shortened by a looming El Nino, which is expected to bring a warm winter to the region later this year.

U.S. President Donald Trump has advocated hard for a build-up of the domestic LNG sector. But as of now, the LNG Canada facility in Kitimat, British Columbia, is the only operational facility capable of delivering the super-cooled gas from the western shores of North America, helping with Canadian efforts to diversify its trade. Readers can learn more about LNG Canada from a detailed plant profile.

Alaska LNG, however, is already supported by offtake agreements from Japanese energy company JERA and others. If the LNG export phase is completed, it would deliver 3 million tons per annum (MTPA) of gas in the liquid form.

By the Numbers

• 3 MPTA from Alaska LNG
• 9.3 MTPA from Commonwealth

Commonwealth Reaches FID

For the southern U.S. Gulf Coast, meanwhile, Caturus LLC recently announced it had made a final investment decision (FID) on the Commonwealth LNG facility in Louisiana after closing on $9.75 billion in financing.

According to Industrial Info Resources data, Commonwealth LNG will be a liquefaction and export facility located on the west bank of the Calcasieu Ship Channel at the mouth of the Gulf of Mexico near Cameron, Louisiana. It would draw on natural gas from regional interconnectors and chill it to 9.3 MTPA for exports. Readers can learn more about Commonwealth LNG from a detailed project report.

"Global gas demand is unquestionably accelerating, and Caturus is positioned to be a differentiated leader across the value chain from upstream production to LNG export," said David Lawler, the chief executive officer (CEO) of Caturus.

Caturus is a spinoff of a Texas natural gas division of Kimmeridge and Lawler was its CEO. He also serves on the board of directors for the American Petroleum Institute.

His comments on accelerating demand reflect supply-side issues stemming from the conflict in the Middle East. Qatar, one of the world leaders in LNG exports, curtailed production because of damage incurred during the height of the fighting.

It's the U.S. that's the world leader in LNG production, and both facilities will ensure that position. Export capacity already has increased this year with the start of operations at the Golden Pass terminal, operated by a joint venture between QatarEnergy and Exxon Mobil Corporation, and more is expected when new liquefaction units come online at the Corpus Christi facility, operated by Cheniere Energy.

Total U.S. LNG export capacity is on pace to increase 12.5% from year-ago levels to average 17 billion cubic feet per day, according to the U.S. Energy Information Administration.

Key Takeaways

• Alaska LNG ready for pipeline phase
• Commonwealth LNG reaches FID

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).