Singapore-based Pavilion Gas Pte Ltd., a unit of of Pavilion Energy, has secured a total of 0.4 million tons per year of liquefied natural gas (LNG) supply from BP plc for a tenure of 20 years beginning in 2019. Some of the LNG is to come from BP's stakes in Cheniere Energy Inc.'s Freeport LNG terminal in Texas. "This deal is part of our continued effort to enhance and diversify our LNG portfolio to deliver sustainable and competitive LNG supply to Asia," said Seah Moon Ming, CEO of Pavilion Energy and Pavilion Gas. Pavilion Energy Pte. Ltd., a US$806.5 million company, was established last year by Singapore's Temasek Holdings Pte. Ltd. with a focus on meeting Asia's growing energy demand, particularly through LNG (see Daily GPI, April 8, 2013). "Supply will be from BP's global portfolio of equity and merchant sources of LNG. This includes the Freeport LNG project in the USA, where BP holds tolling rights [see Daily GPI, Feb. 12, 2013] and which is expected to reach a final investment decision before the end of 2014," said BP’s Paul Reed, CEO of the integrated supply and trading business.
Atco Energy Solutions Ltd. and Petrogas Energy Corp. plan to develop four salt caverns with the capacity to store 400,000 cubic meters of propane, butane and ethylene to serve the natural gas liquids market in Western Canada. The facility would be located at Atco's Heartland Energy Centre near Fort Saskatchewan and connected to Petrogas' existing hydrocarbon truck and rail terminal. "The Petrogas terminal is undergoing expansion to accommodate this storage initiative and provide additional throughput and distribution capacity," said Petrogas CEO Stan Owerko. "This project will support the movement of increasing volumes of Western Canadian LPG [liquefied petroleum gas] production to traditional North American markets as well as key international export markets through Petrogas' West Coast LPG export terminal at Ferndale, WA." Atco would build and operate the facility. Operation of the first two caverns is expected to begin during 2Q2016. Two additional caverns are expected to be completed by 2Q2017.
EnLink Midstream Partners LP and EnLink Midstream LLC have completed Phase II of the Cajun-Sibon natural gas liquids (NGL) expansion project in South Louisiana. Separately, the Bearkat natural gas processing plant and a portion of a rich gas gathering system in West Texas have also been completed. The expanded Cajun-Sibon system connects EnLink's Eunice fractionator in South Louisiana to Mont Belvieu, TX, supply pipelines. Cajun-Sibon pipeline capacity has been expanded by 50,000 b/d of raw-make NGL capacity to 120,000 b/d, and a 100,000 b/d fractionator has been added adjacent to the partnership's Plaquemine gas processing plant. The Bearkat plant in Glasscock County, TX, in the Permian Basin is complete, and a portion of the gas gathering system, which includes 30 miles of high-pressure pipeline that provides gas takeaway capacity for producers in Glasscock and Reagan counties in Texas also is completed. An additional 35-mile, high-pressure pipeline is being constructed.