LNG Movement Not Slowing Down

April 2009 Vol. 236 No. 4

Movement on the LNG front is certainly not abating with agreements concerning LNG projects taking the spotlight in Iran, China, Japan and Indonesia.

Iran LNG Company (ILC) has executed a contract worth $US3.35 billion with a Chinese consortium for the full implementation of the second phase of the Iran LNG project. The Chinese are committed for construction of Iran LNG project trains 3 and 4 with the production capacity of 10.5 MMt/a of LNG.

The project’s second phase includes liquefaction, utility and offsite, tank and jetty units as well as compressors and special heat convertors for the LNG plant. The contracts for the LNG storage tanks and associated facilities have been awarded. The Chinese contractors will complete implementation of the first train in 39 months and the second train in 41 months.

In other news, Indonesia’s PT Medco Energi International has signed an agreement to supply 2 MMt/a of LNG to Chubu Electric Power and Kansai Electric over a period of 15 years. Medco will sell 1 MMt/a from the Donggi-Senoro LNG plant on Sulawesi Island to each Japanese buyer. The plant should be operational by 2013.

Meanwhile, China Shipping Development has formed a joint venture with PetroChina for the transportation of LNG to China. China Shipping Development will hold a 90% interest in the joint venture – China Northern LNG Transportation and Investment – with PetroChina holding the remaining 10%.

And Qatargas Operating Company is in the final stages of commissioning and starting up the first new LNG train for its Qatargas 2 gas processing facilities, which will supply primarily the United Kingdom, Europe and Asia.

Qatargas CEO Faisal Al Suwaidi said, “We are prepared to start up our first mega-train. Train-4 will be capable of producing 7.8 MMt/a of LNG. The Qatargas 2 venture is unprecedented as a fully integrated LNG project and incorporates more than 40 new or step-out technologies to achieve massive economies of scale.”

The company said that Qatargas 3 Train-6 is expected to become operational in 2010, as is Qatargas 4 Train-7.

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