Natural Gas Daily: September 7th, 2020
Woodside-operated North West Shelf (NWS) LNG project could have up to 7mn metric tons/year of spare capacity available by 2027, according to a Wood Mackenzie note. This equates to 40% of the project's nominal capacity.
- The Scarborough and Browse developments, both operated by Woodside, are the most likely backfill options due to their size, WoodMac said, adding that other possible candidates, such as Clio-Acme, or excess gas from Greater Gorgon field development, now look unlikely.
China's Sinopec has selected Qatari LNG exporter Qatargas as the winner of a tender for 1mn mt/yr of LNG supply over a 10-year period starting in 2023, Reuters reported on September 4 citing sources.
- Qatar touts itself as the world's lowest-cost LNG exporter, giving it greater room to outbid its competitors.
- It is looking to drive home its advantage by expanding its liquefaction capacity from 77mn mt/yr at present to 110mn mt/yr by 2025 and 126mn mt/yr by the late 2020s.
Chinese gas imports via pipeline and in the form of LNG were up 3.3% yr/yr in the first eight months of the year, marking a significant slowdown in growth as a result of the Covid-19 pandemic's impact on demand.
- In contrast, Chinese gas imports surged 10.3% yr/yr in the first eight months of 2019.
LNG exports from projects located on the Australian east coast stood at 1.67mn metric tons in August, down 7.2% yr/yr, according to data published by Gladstone Ports Corporation. Exports were unchanged month on month.
- The three LNG export projects – the ConocoPhillips-Origin Energy Australia Pacific LNG, Shell’s Queensland Curtis LNG, and the Santos-led Gladstone LNG – shipped 1.23mn mt of LNG to China last month compared with 1.44mn mt in the same month of last year.
The development of carbon capture and storage (CCS) technology has reached the point where large-scale projects make financial sense and this could trigger up to $35bn in development spending between now and 2035, Oslo-based Rystad Energy said in a report.
- "For CCS to have a significant future, it’s therefore important that Northern Lights and Acorn run through their pilot stages to show that this can be a proven technology," Rystad's head of energy service research, Audun Martinsen, said.
General Electric (GE) and Taiwanese contractor CTCI Corp have won a contract to provide five combined-cycle gas-fired power generating units with a combined capacity of 6,500 GW for two power plants in Taiwan.
- The new units are due to come online in phases from 2024, helping Taiwan reach its goal of expanding the share of gas in its power mix to 50% by 2025.