Page 168 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - MARTIOS 2023

ADV OCTOMBER 2015_Layout 1 5/10/2015 9:42 πμ Page 1
COMMODITIES

ING, which expects that Chinese demand will not Smith, Freeport LNG Founder, Chairman and CEO.
return to 2021 levels. “Over the past eight months, we implemented
The restart of the Freeport LNG plant (20bcm enhancements to our processes, procedures, and
per year) could provide some relief to a tight LNG training to ensure safe and reliable operations and
market, particularly if a stronger-than-expected significantly increased staffing levels with exten-
Chinese demand is recorded. There appears to be sive LNG and petrochemical operating experi-
some progress on the regulatory front for the plant’s ence to reduce overtime, enhance operational
restart, but the market may have to wait a while excellence, and improve quality assurance and
longer for exports to resume, according to ING. business performance. Eight months of diligence,
discipline and dedicated efforts by our teams
India’s ambitious goal working collaboratively alongside the regulatory
India is seeking long-term deals on LNG imports agencies and local officials have positioned us to
in a bid to reduce the use of coal in its energy mix. resume LNG production and commence ramp-up
According to a Bloomberg report, Petronet, the to the safe establishment of commercial opera-
country’s top gas importer, is trying to secure tions of our liquefaction facility.”
long-term deals for an additional 12 million tonnes
of LNG per annum. This figure corresponds to 2/3 China-Qatar mega-deal
of India’s total annual LNG imports. China National Petroleum Corp (CNPC) is about
New Delhi wants to increase the share of natural to finalise a deal to buy LNG from the Qatari
gas in its energy mix from 6% to 15% by 2030 energy giant QatarEnergy over the next 30 years.
and considers long-term deals the safest way to According to international press reports, the LNG
achieve this. In this context, Petronet is increasing supplied to China by QatarEnergy will come from
its LNG supplies from Qatar by 1 million tons per Qatar’s North Field expansion project, in which
year, notes Reuters. Qatar is looking to increase output.
India is expanding its gas distribution network When sealed, this will be the second deal
in cities, which will lead to higher demand. That between Qatar and the world’s second-largest
demand will be met by increasing the capacity LNG importer, as Beijing is trying to increase the
of LNG import terminals in ports by 53% in the share of gas in its energy mix by reducing coal use.
coming years. It is noted that last November, QatarEnergy
signed a 27-year deal to supply China’s Sinopec
Freeport LNG returns to service with 4 million tons of LNG a year for the next 27
Freeport LNG recently announced that it had years, the lengthiest LNG agreement that Qatar
received regulatory approval to commence com- has signed to date.
mercial operations of its natural gas liquefaction
and export facility. The authorisation provides for China’s appetite a risk for the energy market?
the immediate return to full service of one liq- As China’s LNG demand rebounds, the coun-
uefaction train, which has already restarted, and try is seeking to increase its LNG imports from
the incremental restart and return of a second June 2023 to June 2024, causing worldwide con-
train to full service. The restart and return of cerns over the market’s delicate equilibrium. A
Freeport LNG’s third liquefaction train to ser- Bloomberg report focuses on the possibility of a
vice will require subsequent regulatory approval price game between Asia and Europe as the two
once certain operational conditions are met. A continents compete for LNG supplies.
conservative ramp-up profile to establish three- Beijing aims to revive the Chinese economy as
train production of approximately 2.0 billion cubic it enters a period when its zero-tolerance policy
feet per day is anticipated over the next several against the pandemic is a thing of the past. Thus,
weeks as stable operation of each incremental analysts and market circles predict increased
train is established and maintained. Operations LNG imports by China, the world’s largest fossil
are initially utilising two of Freeport LNG’s three fuel importer.
LNG storage tanks and one of its two LNG berths. In this context, the LNG market is walking a tight-
The second LNG berth and third LNG storage rope. Europe, having replaced its dependence on
tank are expected to return to service in May. Russian natural gas with a reliance on LNG car-
First LNG production and ship loading from the goes, depends on sea transport to meet its needs.
facility began on February 11. However, the market’s current shortfall in supply
“Returning to liquefaction operations is a signifi- versus demand makes a significant increase in
cant achievement for Freeport LNG,” said Michael LNG prices within the year seem highly probable.

168