LNG JOURNAL PUBLICATION 6 March 2018

LNG Unlimited

Texas LNG Brownsville, the lique-faction and export plant proposedfor the Gulf Coast, said the USCoast Guard issued a recommen-dation to the US Federal EnergyRegulatory Commission confirmingthe suitability of the BrownsvilleShip Channel for the facility's marine traffic in terms of safetyand security.

Texas LNG is an independent,Houston-based export companyfounded by two international andUS oil and gas industry veterans,Vivek Chandra who is Chief Exec-utive, and Langtry Meyer who holds the post of Chief OperatingOfficer.

LocationRegulators, led by FERC, are con-sidering the plans by the companyto construct a liquefaction planton a 625-acre site located at theSouth Texas Port of Brownsville'sdeepwater ship channel.

The plant will enable the export of 4 million tonnes perannum of LNG to established anddeveloping markets using abun-dant nearby pipeline feed-gas resources.

Texas LNG said full FERC ap-proval and a final investment de-cision for the development of theliquefaction project in Brownsvilleare expected in 2019.

The first phase of production of 2 MTPA of LNG is expected tobegin in 2023.

Texas LNG said it had securedlong-term offtake term sheetsfrom LNG buyers in China, South-

east Asia and Europe, and is plan-ning to begin pre-FID detailed en-gineering in 2018 upon closing ofits current funding round.

In its review of Texas LNG'ssuitability, the Coast Guard ad-dressed public comments thatraised a number of issues, includ-ing safety, security, potential envi-ronmental impacts, economics andthe physical characteristics of theship channel.

In addition, the Coast Guardconsidered not only Texas LNG'sexpected carrier traffic, but alsorecognized other traffic transitingthrough the Channel, includingoffshore rigs, aircraft carriers,fishing vessels, recreational ves-sels and traffic from other pro-posed LNG projects.

"The Coast Guard concludedthat the waterway is suitable tohandle current and anticipated in-cremental traffic from the TexasLNG facility," said Texas LNG.

The plant and export terminalwill be designed to accommodateLNG carriers with capacities of upto 180,000 cubic metres.

The Brownsville Ship Channelhas a current depth of 42 feet

(12.8 metres), with full US Congressional authorization todeepen the channel to 52 feet(15.8 metres).

The total inbound transit fromthe Gulf of Mexico sea buoy (pilotboarding area) to the future TexasLNG terminal berth is approxi-mately seven miles (11km).

"This is a notable advantageover most other proposed US LNGprojects in Texas, as well those inLouisiana, where transit distancescan be significantly longer," thecompany said.

PartnersTexas LNG has already signed upother project participants, includ-ing leading technical, commercial,financial and legal experts.

These include plant builders,South Korea's Samsung Engineeringand KBR of the US and LNG equip-ment-maker and Air Products.

Samsung Engineering is also a minority equity owner in Texas LNG and strategic partner(with KBR) responsible for all engineering, construction andprocurement.

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Entrance to Brownsville Ship Channel from Gulf of Mexico

US Coast Guard issued

a recommendation to

FERC on suitability of

liquefaction plant access

LNG Journal editor

UNLIMITED

AGENDA

Canadian project

in Nova Scotia

hires banks for

project finance

3

FINANCING

UPSTREAM

IMPORTS

Gladstone LNG

to make major

investment in

CSG resources

6

January cargoes

for China rise

to record levels

from Australia

5

Singapore LNG

terminal to open

fourth storage

tank to expand

7

STORAGE

DEVELOPMENT

INVESTMENT

ExxonMobil plans

LNG investments

to help meet

Asian demand

8

Texas LNG Brownsville plan moves forward after channel site cleared

Sempra still plans

to transform Costa

Azul terminal to

handle exports

2

Sempra Energy, the California-based utility transforming the USCameron LNG terminal inLouisiana into an export plant, is still planning a Mexican LNG export venture with nationalPetroleos Mexicano (Pemex) firststudied three years ago.

Sempra is proposing the pro-ject through its IEnova infrastruc-ture subsidiary operating inMexico, and whose senior execu-tives confirmed the plans werestill on when they recently pre-sented IEnova's annual results.

TransformingThe Mexican export plant would bea transformation venture using theexisting Energia Costa Azul LNGimport terminal completed in 2008on the Pacific Coast of Mexico.

San Diego-based Sempra con-structed the terminal to receiveimports from Asian LNG producerIndonesia and its Tangguh exportproject, operated by BP of the UK,when the US still required LNG

imports before the shale-gas boom.Now Sempra and Pemex are

again pursuing the Mexican exportplan at Costa Azul.

“We received the three majorMexican permits that are requiredand we are moving forward withdiscussions to better understanddemand and size the project ap-propriately,” said IEnova VicePresident Tania Ortiz Mena.

“We expect to make substantialprogress on defining the projectthroughout this year,” stated OrtizMena during a results presentation.

The Sempra subsidiary signedan agreement with its Costa Azulpartner Pemex in 2015 to begindeveloping a liquefaction facilityat the terminal, which is near En-senada in the northwest Mexicanstate of Baja California.

Costa Azul when it was com-pleted was the first LNG importterminal to operate on the WestCoast of North America and is oneof three such facilities in Mexico.The other two are at Manzanilloon the Pacific Coast and Altamiraon the Gulf of Mexico.

Manzanillo mainly receives car-goes from Peru LNG and SabinePass in the US, while Altamira re-ceives Sabine Pass shipments andcargoes from countries such asNigeria.

Costa Azul was built to meetdemand 10 years ago in both Mex-ico and the US state of California.

IEnova and Pemex said theywere now looking to reconfigureCosta Azul to export LNG to mar-kets in Asia and South America.

Mexico is a net natural gas im-porter from the US and the biggestregional customer for LNG. TheMexicans are promoting the ideaof using pipeline gas from the USand liquefying it at Costa Azul forexport.

The terminal is isolated fromMexico’s main gas pipeline net-work and only has a feeder gasline to other inter-connections.

However, the nearby Rosaritopipeline links directly to two bor-der-crossing points and indirectlyto a third with inter-connectionswith pipelines near San Diego.

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Sempra Energy still plans to transform CostaAzul terminal for exports like Cameron LNG

l NEWS LNG Unlimited 6 March 20182

US Commonwealth LNG venture proposed forCameron Parish makes regulatory advanceCommonwealth LNG, the US pro-posed LNG export plant for the westside of the Calcasieu Ship Channelnear Johnson Bayou in LouisianaCameron Parish has been the sub-ject of a notice of intention fromthe US Federal Energy RegulatoryCommission FERC to prepare an en-vironmental impact statement.

The liquefaction facility wouldhave a peak production capacityof 9 million metric tonnes of LNGper year.

“The Commission will use thisEIS in its decision-making processto determine whether the projectis in the public interest,” said theFERC notice.

“This notice announces theopening of the scoping process theCommission will use to gatherinput from the public and inter-

ested agencies,” it added. TheCommonwealth project wouldconsist of eight separate sets offacilities, including a 3.7-mile-long natural gas receivingpipeline, extending from existingpipelines operated by KineticaPartners and Bridgeline Holdings.

There would also be four gaspre-treatment units and eight liq-uefaction trains, each with a nom-inal LNG production capacity ofaround 1 MTPA.

There would additionally be sixLNG storage tanks, each with a ca-pacity of 40,000 cubic metres.

The adjacent electric plantwould be powered by an 80-megawatt gas turbine and therewould be boil-off gas handling sys-tems, utilities, and communica-tions system.

The marine berth would havethe size to accommodate LNG car-riers with capacity up to 215,000cubic metres.

The FERC explained that mem-bers of the public and interestedparties could make a difference byproviding specific comments orconcerns about the venture.

“Your comments should focus onthe potential environmental ef-fects, reasonable alternatives, andmeasures to avoid or lessen envi-ronmental impacts,” said the FERC.

“Individual verbal commentswill be taken on a one-on-onebasis with a court reporter. Thisformat is designed to receive themaximum amount of verbal com-ments, in a convenient way duringthe timeframe allotted,” addedthe Commission.

The Commonwealth project developers announced in January2018 that the Japanese bank Sumit-omo Mitsui Banking Corp. would actas its financial advisor to help raisecapital and advance the venture.

Commonwealth LNG Presidentand Chief Executive Paul Varellosaid the company was ready tomove forward with its innovativeLNG investment.

“SMBC’s experience and repu-tation in capital asset advice andmanagement will help ensure thestability and predictability of ourdevelopment project in southwestLouisiana,” said Varello.

The Commonwealth venture isaiming for construction to begin asearly as 2019, with operations tocommence by 2022.

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The Costa Azul import terminal in Ensenada in Mexico

LNG Journal editor

Pembina Pipeline Corp., the Cana-dian energy infrastructure com-pany, said it was making progresswith a range of natural gas pro-jects in North America, includingthe Jordan Cove LNG export plantplanned for the northwest USstate of Oregon.

Pembina gave its latest project updates as it postedfourth-quarter and full-yearearnings of C$445 million(US$350M) and C$891M, whichwere respectively 240 percentand 91 percent higher than in theprevious year.

Pembina closed its acquisitionin October 2017 of Canadian com-pany Veresen Inc., inheriting the

US Jordan Cove LNG project and is pushing ahead with it. Veresenoperations contributed $214M inoperating margin in the fourthquarter.

“Pembina continues to progressits proposed Jordan Cove liquefiednatural gas export terminal andrelated natural gas pipeline pro-ject,” the company said in itsearnings statement.

“Pembina has committed a2018 capital budget of C$135M toprogress Jordan Cove to a final in-vestment decision, pending thereceipt of the necessary regula-tory approvals and other require-ments,” it added.

Jordan Cove officially filed its

application with the US FederalEnergy Regulatory Commission inSeptember 2017 with the companyexpecting an outcome during thesecond half of 2018.

Jordan Cove if approved wouldbe constructed at Coos Bay in Ore-gon to produce 7.8 million tonnesper annum of LNG for export toAsian markets.

The plant would be the onlyLNG export facility on the US WestCoast and proposals include therelated Pacific Connector GasPipeline to transport natural gasfrom the Malin Hub in southernOregon to the Coos Bay exportplant.

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6 March 2018 LNG Unlimited NEWS l 3Canadian Atlantic Coast project hires banks to raise US$10 billion

Pieridae Energy, the Canadiancompany developing the GoldboroLNG project in the Atlantic Coastprovince of Nova Scotia, has re-tained bankers to raise US$10 bil-lion in equity and projectfinancing.

Pieridae said it had engaged USinvestment bank Morgan Stanley &Co and a subsidiary of French bankSociete Generale, SG Americas Se-curities, to serve as financial advi-sors for the Goldboro venture.

Progress“We are extremely proud to havepartnered up with such prestigiousorganisations as Morgan Stanleyand Societe Generale,” said AlfredSorensen, Chief Executive of Pieridae

“The project is a testament tothe creditability of Pieridae En-ergy’s progress to date,” addedSorensen.

The Goldboro LNG project pro-poses to build an LNG processingfacility, storage tanks, a powerplant and marine jetties in Guys-borough, Nova Scotia.

Pieridae has ratified labouragreements to secure tradesmenfor the building of the Goldboroplant to produce 10 million tonnesper annum of LNG.

The Canadian company has alsosigned a deal with German utilityand energy company Uniper for 50percent of Goldboro’s initial ca-pacity pursuant to a 20-year, take-or-pay contract.

The Goldboro facility will belocated at the Goldboro IndustrialPark after the company earlier ac-

quired 265 acres of land from themunicipality of the District ofGuysborough.

Goldboro will also have at leasttwo full containment LNG storagetanks, each with a capacity of upto 230,000 cubic metres and thefacility is expected to enter pro-duction by 2022.

Another LNG export project inNova Scotia is the Bear Head ven-ture being developed by LNG Ltdof Australia.

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Goldboro LNG project planned for province of Nova Scotia

Magnolia LNG will move to construction once deal doneAustralia-listed LNG Ltd said itwas in a strong competitive po-sition in the mid-scale industrywith two North American pro-jects close to construction, Magnolia LNG in Louisiana andBear Head LNG in the Canadianprovince of Nova Scotia, and keydecisions could be expected in2018.

“The Magnolia LNG projectenters 2018 shovel ready andfirst in-line to satisfy demandfor new LNG supply,” said thecompany in its earnings withlosses widening by 2 percent to$13.60 million from $13.31M.

It said earnings reflected thecompany’s liquidity manage-ment plan and sole focus oncompleting the marketing ofMagnolia LNG’s offtake capacity.

“Administration expendituredecreased from $6.4M (2016) to$5.0M, reflecting full initiationof the company’s cost-reductionprogram,” it stated.

“Our team is solely focusedon completing our marketing ofMagnolia LNG’s offtake capacityin order to take a financial in-vestment decision,” LNG Ltdsaid.

“The project has all requiredUS Federal Energy RegulatoryCommission and US Departmentof Energy permits and ap-provals, has construction pricecertainty through its industrycompetitive LSTK engineering,procurement, and constructioncontract price,” it added.

Magnolia has a contract withUS energy engineers KBR andSouth Korea’s SK Engineering &Construction.

The company additionallynoted that it had “certainty ofgas supply” and equity via acommitment from Stonepeak In-frastructure Partners, as well asdebt financing to be led byFrench bank BNP Paribas.

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LNG Journal editor

Canadian energy company Pembina makes progress on US Jordan Cove

25 - 26 APRIL 2018 I BEIJING, CHINA

6 March 2018 LNG Unlimited NEWS l 5

China imported a record amountof LNG in January, breaking theprevious record set in December,as cold winter weather set in andnatural gas replaced coal and cokein northern cities under a statecampaign to reduce air pollution.

Chinese LNG imports in Jan-uary rose 51.1 percent comparedwith the same month last year.

Customs dataShipments last month amountedto 5.18 million tonnes comparedwith 3.43MT in January 2017, ac-cording to figures from the Gen-eral Administration of Customs.

Imports of LNG in Decemberhad risen by 34.8 percent to theirprevious monthly record of 5.03MTcompared with the 3.73MT loggedin December 2016.

The LNG shipments to China'snetwork of 16 import facilities forall of 2017 were up 46.3 percentcompared with the previous yearto 38.13MT, also a record.

The Customs data as well asshipping information showed thatcargoes arrived from many LNG

producing nations, including Aus-tralia, Qatar, the US, Indonesia andAfrican countries such as Angola.

The LNG surge was spurred bya government-led campaign aimedat ending winter air pollution in30 northern cities and supplierspointed their cargoes at China inDecember and January because ofhigher prices.

Chinese overall natural gas im-ports in the form of pipeline sup-plies from the Central Asianrepublics of the former SovietUnion and LNG shipmentsamounted to a combined 7.70MTlast month, about 33 percenthigher than a year ago.

Among the African LNG ship-

ments, the 160,500 cubic metrescapacity vessel "SonangolBenguela" delivered a cargo onJanuary 3 to the Zhuhai terminal,operated by China National Off-shore Oil Corp. in the southeastprovince of Guangdong, from An-gola LNG in southwest Africa.

Shipments also rose from Aus-tralia's increased LNG production.

For example, the 174,400 cubicmetres capacity carrier "CesiGladstone" unloaded a shipmenton January 7 at the Tangshan im-port facility in the northern Hebeiprovince from the Gladstone ex-port plant in the east Australianstate of Queensland.

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Chinese LNG imports hit record levels helped by Australia surge

NEWSNUDGES

LNG Journal editorFERC clearsgas shippersA US Federal Energy RegulatoryCommission inquiry has re-vealed no evidence of anti-competitive withholding ofnatural gas pipeline capacity onthe Algonquin Gas Transmissionpipeline by New England ship-pers. The Commission said itwould take no further action onthe matter. “The inquiry aroseout of allegations made by theEnvironmental Defense Fund inan August 2017 white paper,which asserted that local gasdistribution companies in NewEngland had engaged in prac-tices to withhold pipeline ca-pacity on the Algonquin systemto drive up prices in the re-gion,” FERC explained. “Com-mission staff took theseallegations very seriously andconducted an extensive reviewof both publicly available andnon-public data.

Spanish gasfor FranceSpain has been supplying addi-tional supplies of natural gas toFrance through pipeline inter-connections between the twocountrfies during the currentcold snap sweeping Europe.Spanish network operator Ena-gas, which itself receives natu-ral gas in the form of pipelinesimports from North Africa andLNG shipments, said its sup-plies to France come at a timewhen there is a low level ofstorage in Europe due to recentdemand.

Flex LNGearningsFlex LNG, the Norwegian com-pany whose shareholders in-clude a fund controlled byshipping magnate John Fredrik-sen, reported fourth-quarterrevenues of $7.9 million com-pared with $9.8M in the previ-ous quarter.

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PetroChina import and regas facility at Tangshan

Novatek confirms Saudi Aramco interest in joining Arctic LNG-2Novatek, the main shareholder inthe Yamal LNG export project inSiberia and one of Russia’s largestnatural gas producers, confirmedthat Saudi Arabia’s energy com-pany, Saudi Aramco, was inter-ested in joining its Arctic LNG-2export project as a partner.

“We see high prospects of mu-tually beneficial strategic partner-ship with Saudi Arabia,” saidNovatek Chairman Chief ExecutiveLeonid Mikhelson.

“Our company has reserves ofnatural gas and the unique experi-ence of implementing LNG pro-jects in Arctic Russia.

“Novatek’s strategy providesfor growth of LNG production at aquick rate with engagement of in-

ternational partners and we wel-come interest of such a globallysignificant company as SaudiAramco in cooperation on theglobal gas markets,” statedMikhelson.

The Arctic LNG-2 project isscheduled to begin production in2023 if construction starts by theend of 2019.

The Novatek statement fol-lowed talks in the Saudi capitalRiyadh last week between SaudiArabian Energy Minister Khalid Al-Falih with his Russian counterpartAlexander Novak.

The Saudis have previously saidthey were considering investing inNovatek’s future LNG project inthe Arctic region as part of a Saudi

plan to use more domestic gas-fired plants for electricity genera-tion.

Novatek is already working onits second LNG project afterYamal LNG, called the Arctic LNG2 venture to be located on theGydan peninsula in Siberia.

Novatek Chairman LeonidMikhelson had previously saidplanning would start on the ArcticLNG-2 project once the Yamal LNGproject came on stream, whichhappened three months ago.

The Arctic LNG-2 venture en-visages the installation of threegravity-based structures (GBS) inOb Bay and construction of theLNG plant on these platforms.

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l NEWS LNG Unlimited 6 March 20186

Gladstone LNG, the coal-seam-gas-to-LNG plant in the easternAustralian state of Queensland,plans to invest A$900 million(US$700M) in upstream develop-ment to underpin production andexports.

Shareholders in the GLNGplant, including France’s Total,Australia’s Santos, Malaysian en-ergy company Petronas and KoreaGas Corp. will be providing thefunding to tap into new CSG resources.

Inland basinsThe GLNG plant receives its feed-gas from the Surat and BowenBasins of southeast Queensland,via a 420-kilometre undergroundgas transmission pipeline to servethe two-train liquefaction facilityon Curtis Island, near the port ofGladstone.

GLNG has been supplying coun-tries such as China and SouthKorea since starting commercialoperations in October 2015.

LNG plants using CSG from on-shore fields, known as tenements,need supplies from several thou-sand wells over the lifespan of theliquefaction and export facilities.

“As operator, Santos is focused

on building gas supply by drillingmore wells to increase production,seeking opportunities to extractvalue from our infrastructure anddriving efficiencies to operate atlowest cost,” said the company.

GLNG is targeting upstream de-velopments in the Maranoa andWestern Downs regions of south-west Queensland.

“As well as upstream develop-ments around the Fairview, Scotiaand Arcadia fields, this investmentincludes the first year of fundingfor the new $750M Roma East pro-ject which will be developed overthe next three years,” said Santos.

Brett Woods, Vice President ofOnshore Upstream activities forSantos, joined the Queensland

Minister for Mines and Energy, Anthony Lynham, at a ceremony to launch the Roma East project,following the drilling of the firstof 430 new wells.

“This important project willcreate up to 400 construction jobsand local business opportunities inthe Roma area, helping to sustainand boost the benefits of Santos’and GLNG’s earlier investments inthe region,” said Woods.

“Roma East will also add nearly50 petajoules a year to gas pro-duction in Queensland in 2020,equivalent to about 8 percent ofexpected East Coast domestic gas demand this year,” accordingto Woods.

“This is great news for both the

domestic gas market and our LNGexports,” he added.

Lynham said the investment bySantos and its partners in theRoma East Field would mean jobs,business opportunities, and royal-ties for Queenslanders as well asmore gas supply for the Australianmarket and for LNG exports.

“We welcome this sign of confi-dence by Santos in Queensland asan investment destination,” addedthe state minister.

The Roma East project will involve bringing on line another480 wells including drilling around430 new wells, connecting existingappraisal wells, and drilling pre-development wells in the sur-rounding areas.

The project will also includearound 420 kilometres of water,gas gathering and other pipelines.

A new water-handling facilityfor irrigation and over 200hectares of additional irrigation inthe Roma area will improve live-stock carrying capacity for somelocal landholders.

“Santos and its GLNG partnershave already invested almost $20billion in regional Queenslandsince 2011 and this new invest-ment is a huge vote of confidencein the state,” said the company.

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Gladstone LNG project partners to make major investment in upstream CSG resources

Santos-operated liquefaction plant on Curtis Island

LNG Journal editor

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6 March 2018 LNG Unlimited NEWS l 7Singapore LNG terminal to open fourth storage tank to expand

Singapore LNG Corp., operator ofthe city-state's import and re-ex-port facility on Jurong Island, saidits fourth storage tank is scheduledto be completed in the next coupleof months as the facility broadensits activities as a regional hub.

The fourth tank has even largercapacity than the other three at260,000 cubic metres and willoffer LNG traders more optionsand flexibility.

ServiceThe facility currently has threestorage tanks in service, each witha capacity of 188,000 cubic metresand 540,000 cubic metres in total.

The terminal is owned by theSingapore Energy Authority and islocated on a 40-hectare plot atthe southern tip of Jurong Island.

It has been in operation since2013 and can handle the largestLNG carriers from Qatar.

When it started up it becamethe first open-access, multi-user

LNG regasification terminal in Asia.Its current services include re-

ceiving shipments for Singapore'sown energy needs and additionallyoffering storage and re-loading forexports.

SLNG is also building a fuelbunkering business in cooperationwith the Maritime and Port Au-thority of Singapore.

The terminal works in close co-operation with Pavilion Energy,owned by the Singapore wealthfund Temasek.

Pavilion has rights to accesstank capacity on a segregatedbasis for LNG storage and reload-ing services.

This supports higher volume ofLNG trading activities, small-scaleLNG opportunities, LNG breakbulkand vessel cool-down services.

Pavilion is working with industryplayers to trade LNG indexed tothe Sling, the Singapore Exchange'sLNG Index Group, to support moretrades based on the index.

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PNG LNG plantremains closed after earthquake and tremorsAustralian energy company Santos said that natural gas production at the Papua NewGuinea LNG’s Hides gas condi-tioning plant and the Kutubugas facilities in the PNG High-lands was shut down as a pre-cautionary measure, along withthe liquefaction plant, follow-ing a major earthquake and aseries of aftershocks.

The company has been ad-vised by US major ExxonMobil,the operator of the PNG LNG export plant that receives itsfeed-gas from the Highlands andis located just northwest of thecapital Port Moresby, that nostaff or contractors have beeninjured as a result of these seis-mic events.

“Production will remain shut-down whilst a full assessment ofthe impact of the earthquake ismade,” said Santos.

Operator Exxon declined tocomment on March 2 onwhether it had invoked “‘forcemajeure” to temporarily deliv-ery commitments.

Stakeholders later said theproduction plant could beclosed for several weeks.

The earthquake struck onFebruary 26 and was 7.5 in mag-nitude. Its epicentre was a re-mote forested region in theSouthern Highlands of the na-tion with a population of around7 million people.

“The Papua New Guinea De-fence Force has been mobilisedto assist with the assessmentand the delivery of assistanceto affected people as well asthe restoration of services andinfrastructure,” said Isaac Lu-pari, the Chief Secretary to theGovernment.

The PNG LNG production facil-ity recently logged an annualizedoutput rate of 8.6 million tonnesper annum and mainly suppliesJapan, China and Taiwan.

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LNG terminal is located at southern tip of Jurong island

LNG Journal editor

Hoegh LNG of Norway notes increase in FSRUs new tenders Hoegh LNG, the Norwegian fleetowner and project developer, saidimports through floating storageand regasification units (FSRUs)continued to rise with China,Turkey and Pakistan contributingand there were 13 other globaltenders currently pending.

“LNG imports through FSRUsrose 3 percent to 33.5 milliontonnes in 2017,” said Hoegh as it presented its fourth-quarterearnings.

At the start of 2018 there were35 countries importing LNGthrough regasification plants witha capacity greater than 0.5 milliontonnes per annum, including 14countries using FSRUs.

Hoegh said overall tenderingactivity remained high, and newprojects continued to come to

market with requests for interestin providing FSRUs.

“Such projects, which havebeen mentioned in the public do-main and find themselves in vari-ous stages of development,include projects in markets suchas Australia, Brazil, Colombia,Cote d’Ivoire, Croatia, Cyprus,Hong Kong, Lebanon, Mexico, Pak-istan, Turkey, the UAE and theUK,” added Hoegh.

The FSRU fleet consisted of 28units at start of 2018. Of these,five are converted LNG carriersbuilt in the 1970s and 1980s. TheFSRU order book stands at 12units, with delivery dates fromApril 2018 through 2021.

Hoegh reported fourth-quarterprofits after tax of $19.96 millioncompared with $828,000 in the

same three months of the previ-ous year. It also posted recordgross earnings of $43M for thequarter, including $5.6M in higherrevenue recognition following theconclusion of a contractual auditof reimbursable amounts under anexisting time charter.

Total revenue for 2017amounted to $279.3M versus$232.9M in 2016. Annual profitscame to $41.05M compared with$14.01M the previous year.

“So far in 2018 we have deliv-ered ‘Hoegh Giant’ on a hybridLNGC/FSRU contract with Gas Nat-ural Fenosa (Spain), which shouldhave a positive effect on our fi-nancial performance from the nextquarter,” said President and ChiefExecutive Sveinung J.S. Stohle.

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l NEWS LNG Unlimited 6 March 20188

ExxonMobil, one of the world’sleading liquefied natural gas pro-ducers with a stake in more than62 million tonnes of the 77MT ofLNG produced annually by Qatar,is planning more investment in theGulf state and has productionplans elsewhere from Mozambiqueto Papua New Guinea.

The US major’s annual reporthas given more details of its pro-duction and investment plansworldwide.

Ventures“Through our joint ventures withQatar Petroleum, ExxonMobil’s netacreage totaled 65 thousand acresoffshore,” said ExxonMobil of theNorth Field in the Persian Gulffrom where Qatar plans to expandfuture LNG output to 100 milliontonnes per annum.

ExxonMobil said it participatedin 62.2MT of gross LNG capacityand 2.0 billion cubic feet per dayof flowing gas capacity at the endof 2017.

At the same time ExxonMobilhas noted that there were con-cerns about the lack of new LNGproject approvals over the pasttwo years even as many ventureswere cancelled for economic orregulatory reasons.

“At year-end 2017, approxi-mately 7.3 billion oil-equivalentbarrels (GOEB) of ExxonMobil’sproved reserves were classified asproved undeveloped,” ExxonMobilsaid of its worldwide position.

“This represents 34 percent ofthe 21.2 GOEB reported in provedreserves. This compares to the 6.2 GOEB of proved undevelopedreserves reported at the end of

2016,” it added. “During the year,ExxonMobil conducted develop-ment activities that resulted inthe transfer of approximately 0.7GOEB from proved undevelopedto proved and developed reservesby year end,” it said.

The ExxonMobil LNG activitiesincluded consolidation of the de-velopment of the Gorgon projecton Barrow Island offshore WesternAustralia.

“The largest transfers were re-lated to the start-up of the Gor-gon field and Longford GasConditioning Plant in Australiaand drilling activity in the UnitedStates, the United Arab Emirates

and Kazakhstan,” it said. Exxon-Mobil noted that the third Trainof the Chevron-operated Gorgonproject started up in 2017, takingoutput to 15.6 MTPA and 280 mil-lion cubic feet per day at a do-mestic gas plant located onBarrow Island.

“Also, purchases, primarily inthe United States and Mozam-bique, resulted in the addition ofapproximately 0.9 GOEB of provedundeveloped reserves,” it added.

In December 2017, Italian en-ergy company Eni completed itssale to ExxonMobil of a 25 percentinterest for an initial $2.8Bln inthe Area 4 licence block in theRovuma Basin of Mozambique.

Under the agreement, Exxon-Mobil will run all other venturesafter the first floating LNG projectis completed in the Coral Southfield.

The shuffling of the Mozam-bique shareholdings now gives Eni35.7 percent, ExxonMobil 35.7percent and China NationalPetroleum Corp. 28.6 percent.

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ExxonMobil plans more LNG investments in Qatar and elsewhere to meet Asian demand

APA Group of Australia signs pipeline deal forQueensland-to-south markets amid LNG plansAPA Group, Australia’s leading en-ergy infrastructure business withnatural gas pipelines spanningevery Australian state, said it hadentered into a new agreement forgas transportation and storage ser-vices from Queensland to southernmarkets amid plans by severalother companies to set up LNG regasification terminals to re-distribute supplies.

“This is the 16th contract en-tered into by APA in the East Coastmarket since 1 August 2017 and Iam very pleased to see this agree-ment come together and facilitatethe flow of more gas into the EastCoast domestic market,” said APA’sManaging Director Mick McCormack.

“We work very closely with ourcustomers as our interests arealigned to their requirements. The

gas industry is focused on deliver-ing affordable and reliable gas toend users,” stated McCormack.

“This type of deal is a primeexample of the energy industryworking together and respondingto market conditions.

“The flexibility provided byAPA’s interconnected grid and ser-vice offerings allows the industryto provide cost effective solutionsfor Australia’s energy challenges,”the MD added.

APA said it would earn totalrevenues of around A$40 million(US$31M) over the contracted pe-riod of three years from 2018.

APA’s latest pipeline deal fromQueensland to the South comes asa consortium including twoJapanese companies said theywere planning an LNG regasifica-

tion terminal near Sydney in NewSouth Wales.

Japanese companies MarubeniCorp. and Jera Co. Inc. havejoined an Australian investmentand energy company, the MinderooGroup and its Squadron Energysubsidiary, to propose the plan.

Minderoo is controlled by Aus-tralian billionaire Andrew Forrestand includes a one-third stake inAustralian iron ore exporterFortescue Metals.

Marubeni, Jera and Squadronhave signed a memorandum of un-derstanding to conduct a jointfeasibility study regarding estab-lishing the terminal and gas supplyin New South Wales.

Another Australian companyAGL Energy has sought LNG supplyproposals for its import terminal

project in the southeast Australianstate of Victoria.

AGL has chosen Crib Point atWestern Port in Victoria as thepreferred site for its regasificationterminal and import jetty with anaffiliated pipeline.

Australia has huge reserves ofnatural gas that it exports fromthe states of Western Australiaand Queensland and is on track tobecome the largest LNG exporter,overtaking Qatar by 2019.

However, domestic supplies forthe East Coast natural gas market,including parts of Queensland,South Australia, New South Walesand Victoria has become a politi-cal issue in the country because of rising prices and warnings of future shortages.

n

Carriers lifting cargoes at Ras Laffan complex in Qatar

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