Generic Hero BannerGeneric Hero Banner
Latest market news

Venture Global LNG picks GE Oil & Gas for technology

  • Märkte: Natural gas
  • 22.02.17

Venture Global LNG has selected GE Oil & Gas to provide technology for its two planned export projects in Louisiana.

The deal would include a comprehensive solution for liquefaction, gas pretreatment and power if one or both facilities are built, Venture Global said yesterday. The agreement provides for delivery of a complete LNG process system with a defined schedule and price.

Venture Global is developing the Calcasieu Pass LNG project in southwestern Louisiana and the Plaquemines LNG facility in the southeastern part of the state, about 30 miles (48km) south of New Orleans.

Plaquemines has an estimated cost of $8.5bn at full build-out. It is slated to come on line in 2022 with baseload capacity of 10mn t/yr, equivalent to 1.4 Bcf/d (40mn m³/d) of gas, and could be expanded to baseload capacity of 20mn t/yr, with peak capacity of 24mn t/yr.

The $4.5bn Calcasieu project would have peak capacity of 12.7mn t/y and baseload capacity of 10mn t/yr. It could start exporting as early as 2019 and reach full production in 2020.

Venture Global plans to use small 1mn t/yr modular liquefaction trains, which could be built off-site and transported to the terminal sites to reduce construction costs.

Venture Global has raised more than $280mn to help pay for engineering, marketing and permitting of its projects. But it would need to sign long-term contracts for most of its capacity to get financing for construction. That has become difficult for US projects to accomplish after the steep fall in oil prices in mid-2014. The economics of US LNG exports are based on a wide differential between domestic gas prices and global oil prices, as most long-term Asian LNG contracts are linked to oil prices.

Shell in February 2016 signed a contract for up to 1mn t/yr of LNG from the Calcasieu project, the only customer deal that Venture Global has announced for far.


Teilen
Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more