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QGC creates 11,600 Jobs

Details: Published on Friday, 24 May 2013 07:14

QGC has announced today that more than 11,600 people are working with QGC and its major contractors, with more than 15 people hired every day during the past six months.

In QGC’s latest six-monthly report to Queensland’s Coordinator-General on Australian industry participation, QGC said investment in construction, exploration and operations since January 2010 had passed A$14.9 billion.

This included spending by both QGC and the Queensland Curtis LNG Project.

QGC said about A$12 billion – or 80% of the total A$14.9 billion – had been invested with Australian firms since 1 January 2010.

Queensland firms had received 64.5%, or A$9.6 billion, of the total.

The report covers 1 October 2012 to 31 March 2013.

QGC Managing Director Derek Fisher said more than 115,300 Australian businesses had registered their interest in doing business with QGC since 2010.

“QGC will be operating in Queensland for decades to come and our QCLNG Project is delivering economic and social benefits from the Surat Basin to Gladstone and across Queensland,” Mr Fisher said.

“In the six months to the end of March, QGC and our contractors hired more than 2800 people – or 15 people a day.

“A snapshot of current contracts shows we are investing nearly A$1 billion in Gladstone and about A$684 million in the Western Downs region.”

Mr Fisher said 249 indigenous people were working with QGC and its major contractors. The number of training courses for staff and contractors had increased to 22,994 from 13,900 in the previous reporting period.

“Training people to work safely and efficiently is a priority as we ramp up construction ready for first LNG in 2014,” he said.

“Work to prepare our teams who will operate QCLNG is already underway.”

The report showed 342 apprentices, graduates, cadets and trainees were working with QGC and its major contractors and that QGC had invested a total of A$212 million in research and development.

InterOil, Pacific LNG in talks with ExxonMobil PNG

Details: Published on Friday, 24 May 2013 06:23

InterOil Corporation and its joint venture partner, Pacific LNG Group have entered into exclusive negotiations with ExxonMobil Papua New Guinea Ltd. on the development of Petroleum Retention License 15 (PRL 15), which comprises the Elk and Antelope fields in the Gulf Province of Papua New Guinea. The transaction has been discussed with the Government of PNG and any future agreement will be subject to their final approval according to an InterOil statement released today.

Items under consideration include:

InterOil and Pacific LNG selling ExxonMobil Papua New Guinea Ltd. an interest in PRL 15 that is sufficient to supply gas to develop an additional LNG train at ExxonMobil Papua New Guinea Ltd.'s Konebada site. There will be staged payments before and after production commences.

InterOil and Pacific LNG will be funded to drill additional delineation wells in the Elk and Antelope fields, which will be followed by recertification of the resource.

InterOil and Pacific LNG will have the optionality to either independently develop a second LNG project in the Gulf Province that may also use gas from PRL 15 and potentially other discoveries, such as Triceratops, or pursue further development with ExxonMobil Papua New Guinea Ltd.

Osaka Gas Acquires Natural Gas Licenses in Papua New Guinea

Details: Published on Thursday, 23 May 2013 08:19

Osaka Gas announced they have reached an agreement with Horizon Oil Limited for its acquisition of part of the licenses in Papua New Guinea currently held by Horizon Oil to develop condensate and natural gas resources.

Osaka Gas stated through this agreement they will acquire part of the interest held by Horizon Oil in its three licenses in the country. The acquisition is subject to approvals of the PNG government and the existing joint venture partners in the licenses.

With acquisition of the interest in the licenses, Osaka Gas plans to participate in exploration activities with Horizon Oil and its joint venture partners. The company also intends to conduct studies to examine opportunities for developing an LNG project in the country with them.

The decision of Osaka Gas to participate in the project has been made as part of its long-term business vision ‘Field of Dreams 2020’ in which the company intends to broaden its scope of activities along the energy value chain in international energy markets. The company believes that its involvement in the project in PNG would bolster its efforts to gain stable revenue and to achieve economical procurement of LNG over the long term.

April 2013 Sabine Pass Liquefaction Project Progress Report

Details: Published on Wednesday, 22 May 2013 15:31

Cheniere Energy, Inc. recently submitted to the U.S. Federal Energy Regulatory Commission the April 2013 progress report for the Sabine Pass Liquefaction Project in Cameron Parish, Louisiana

The report stated overall engineering is now 55.9% complete; procurement is 48.5%; subcontract and direct hire construction work are 18.4% and 1.0% complete. The Overall project progress is 29.6% complete. The project is slightly ahead of the target EPC schedule.

Site activities for April 2013 focused on soil improvement, pile driving, and foundation pours. Structural steel erection started for Train 2 while Train 1 continued. Construction poured structural concrete in both Trains 1 and 2. Temporary construction offices were also assembled and fitted-out.

The overall project schedule is progressing ahead of the contractual schedule basis. The dates for Train 1 substantial completion and Train 2 substantial completion are February, 2016 and June, 2016, respectively.

Procurement continues to focus on delivering pipe, valves, and fittings to the pipe fabricators to maintain the pipe fabrication schedule, as well as delivering necessary civil / structural items to support construction activities at the jobsite.

Exheat awarded contract for PETRONAS FLNG

Details: Published on Wednesday, 22 May 2013 08:20

Exheat announced they have been awarded a contract to supply the hazardous area electrical heaters and control solutions for the PETRONAS floating liquid natural gas facility.

Kevin Tyrrell, General Manager of Exheat said "Our selection as the supplier of choice to the PETRONAS FLNG project is a key award for Exheat and serves as continued testimony by our clients of our commitment in providing world class, high quality electric heating solutions to meet the most demanding requirements"

PETRONAS’ first floating LNG facility scheduled for deployment in 2015. With a 1.2 million tonnes per annum capacity, it is expected to operate at Kanowit gas field, 180km offshore Bintulu.

Exheat is a designer and manufacturer of electric process heating and control systems.

Cheniere Engages financial institutions to assist in the structuring and arranging of credit facilities

Details: Published on Wednesday, 22 May 2013 07:26

Cheniere Energy Partners, L.P. announced today that its wholly owned subsidiary, Sabine Pass Liquefaction, LLC, has engaged 17 financial institutions to act as Joint Lead Arrangers to assist in the structuring and arranging of credit facilities. Cheniere noted the Credit Facilities will be used to fund the remaining debt portion needed for the costs of developing, constructing and placing into service the first four trains of the liquefaction project being developed adjacent to the Sabine Pass LNG terminal and for general business purposes. Cheniere noted they will amend and upsize the existing Term Loan A Credit Facility that was entered into last year for the financing of the first two trains, extending the available capacity to accommodate four liquefaction trains.

Obtaining debt financing is one of the last steps to complete before proceeding with construction of Trains 3 and 4 of the liquefaction project according to a Cheniere statement. Closing of the Credit Facilities and issuing a notice to proceed to Bechtel Oil, Gas and Chemicals, Inc. for Trains 3 and 4 is expected to occur within the upcoming weeks.

Jordan Cove Files Application to the Federal Energy Regulatory Commission

Details: Published on Wednesday, 22 May 2013 06:58

The Jordan Cove Energy Project today announced they have filed applications to the Federal Energy Regulatory Commission (FERC) to construct and operate a LNG export facility on the North Spit of the International Port of Coos Bay.

“This is a major milestone for Jordan Cove as we continue to move through the public permitting process,” said Elliot Trepper, President of Jordan Cove.

The public permitting process allows for public comment prior to a final decision, and more than 10 public agencies will evaluate specific aspects of the project.

According to a Jordon Cove Energy Project statement, Jordan Cove has received all local land use approvals necessary for the project, and is now seeking construction, operation and export permits from the FERC and the U.S. Department of Energy. Following receipt of all approvals, construction of the export facility and supporting power plant is anticipated to span 42 months with an average workforce of 900 and a peak workforce of approximately 2,000. As the single largest private investment in Oregon to date, tax revenue and infrastructure improvements associated with Jordan Cove will bring economic growth to a region that has seen more than 20 years of high unemployment.

“Jordan Cove will enhance the Port of Coos Bay and Southern Oregon’s infrastructure, helping our region attract new business and create new jobs,” commented State Senator Arnie Roblan. “The redevelopment and modernization of the Port of Coos Bay’s facilities will provide cornerstone enhancements to attract new industrial economic development on the North Spit in Coos Bay.”

Audubon Announces Dominion LNG Contract

Details: Published on Tuesday, 21 May 2013 15:42

Audubon Chief Executive Officer Lee Beckett announced today that Audubon Engineering has been named Owner's Engineer for the proposed Dominion Cove Point LNG construction project, located in Lusby, Md., on the Chesapeake Bay.

Audubon Engineering previously provided Owner's Engineer services during the front-end engineering design phase of the project, the results of which were accepted by Dominion in March 2013.

"Traditionally, the owner's engineer is the owner's advocate during the entire engineering, procurement, construction (EPC) process," noted Beckett. "Audubon has proven experience and a history of success in major projects requiring detailed design, procurement, construction, commissioning, and startup. We further ensure quality by monitoring contractor's work and that of any third-party vendors to our stringent quality standards," Beckett said.

Subject to regulatory approvals, Dominion plans to start construction on the 5.25-MTPA (million tons per annum) facility in 2014 and put the liquefaction facilities in service in 2017.

Pacific NorthWest LNG Awards FEED Contracts for Canadian LNG Export Facility

Details: Published on Tuesday, 21 May 2013 14:13

Pacific NorthWest LNG Ltd. announced today they have awarded Front-End Engineering and Design contracts for its proposed liquefied natural gas facility in British Columbia to three international engineering contractors - Bechtel, KBR/JGC joint venture, and Technip/Samsung Engineering/China Huanqiu joint venture.

The Pacific NorthWest LNG proposed facility will comprise an initial development of two LNG trains of six million tonnes per annum (mtpa) each, and a subsequent development of a third train of six mtpa. Pacific NorthWest LNG is principally owned by PETRONAS. The facility will be on Canada's West Coast at Lelu Island in Port Edward, nearPrince Rupert, British Columbia.

As part of the Front-End Engineering and Design process, and in order to build Canadian LNG engineering expertise, Pacific NorthWest plans to recruit and hire up to 30 Canadian engineers who will be temporarily embedded with the FEED contractors over the next one to two years according to Pacific NorthWest LNG Ltd.

"This world-class engineering and design work provides a tremendous opportunity to begin the process of creating an LNG knowledge center here in Vancouver," said Greg Kist, President of Pacific NorthWest LNG. "Hiring Canadian engineers and placing them in companies with decades of international experience in LNG engineering will ultimately pay long-term dividends in establishing a base of Canadian LNG engineering expertise in our British Columbia operations."

The FEED and Engineering, Procurement, Construction and Commissioning bid is expected to be complete by August 2014. At the end of 2014 Pacific NorthWest LNG partners PETRONAS and Japex, plan to make the final investment decision on the project.

"LNG development is a once-in-a-lifetime opportunity to gain a foothold in a global industry, create well-paying jobs for British Columbians today, and keep us on the path to a debt-free B.C.," says British Columbia's Premier Christy Clark. "Pacific NorthWest LNG's announcement of its FEED contracts is another positive step forward towards growing this industry and creating lasting benefits for generations to come."

Höegh LNG receives commitment letters for a USD 299 million Limited Recourse Facility for the financing of its Lampung FSRU Project in Indonesia

Details: Published on Tuesday, 21 May 2013 07:14

Höegh LNG today announced they have received commitment letters from five international banks for a USD 299 million Limited Recourse Facility for the financing of a LNG Floating Storage and Regasification Unit and Mooring system to be located offshore Labuhan Maringgai, in the Lampung province, at the south east coast of Sumatra, Indonesia

The facility includes USD 237 million in long term financing for the FSRU, and USD 62 million in construction financing for the Mooring System. Banks participating in the financing are DBS Bank Ltd, Korea Development Bank, Oversea-Chinese Banking Corporation Limited, Standard Chartered Bank and The Bank of Tokyo-Mitsubishi UFJ, Ltd. 75% of the FSRU loan is covered by a credit guarantee from Korea Trade Insurance Corporation, who has issued a Notice of Acceptance in relation to its guarantee. The facility is subject to final documentation, which is in the progress of being completed.

President and Chief Executive Officer, Sveinung J. S. Støhle, said: "We are very pleased with the structure of this facility. Commercial banks expressed strong interest in participating in the financing of this Project and we had to limit the bank group. In addition, we continue our excellent relationship with K-Sure. During the process we have developed new relationships with regional and international banks with strong presence in the Asia Pacific region. The success of this Project further enhances our competitive position and underscores Höegh LNG's strong position in the FSRU market, which is and will be the core focus for the Company's further growth. The Lampung FSRU project is on schedule in all aspects for its planned start-up in June 2014."

The Project agreement is for a firm 20 year charter of the FSRU with two five year extension options for the charterer. The mooring will be delivered and transferred to PGN at Project completion, which is planned for June 2014. The EBITDA contribution from the FSRU is expected to be approximately USD 40 million p.a. The FSRU is currently under construction at Hyundai Heavy Industries in South Korea.

COSCO Corporation gets LNG Ship Order

Details: Published on Tuesday, 21 May 2013 06:56

The Board of Directors of COSCO Corporation (Singapore) Limited announced today that COSCO (Dalian) Shipyard Co. Ltd., a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co. Ltd., has secured a contract valued over RMB500 million from a Chinese ship owner to build one (1) 28,000 CBM LNG Vessel. According to a COSCO statement the vessel is scheduled for delivery in the first quarter of 2015.