Bechtel Oil, Gas and Chemicals Inc. has contracted with Cheniere Energy Partners LP unit Sabine Pass Liquefaction LLC to provide engineering, procurement and construction of the first two liquefaction trains at the Sabine Pass LNG terminal in Cameron Parish, LA. The contract is worth $3.9 billion. Total expected cost for the project before financing costs is estimated at $4.5 billion to $5 billion. Sabine Liquefaction is planning to construct facilities capable of producing 9 million metric tons per year of liquefied natural gas (LNG) in the first phase of its project and selling 7 million metric tons per year of the production under long-term agreements. To date it has contracted half of the production with BG Gulf Coast LNG LLC (see Daily GPI, Oct. 27) and said it will make a final investment decision upon contracting the remaining 3.5 million metric tons per year. Construction is expected to begin in 2012 with LNG exports expected to occur as early as 2015, Cheniere said.
Chemicals
Articles from Chemicals
New York Advisory Panel Puts Off Fracking Report Till 2012
Members of a key advisory panel in New York that would someday govern hydraulic fracturing (fracking) in the state say they won’t meet their Nov. 1 deadline because they need more time to gather critical information and budget requests from state agencies.
Fitch: Shale Gas Big Cost Advantage for North American Chemicals
The boom in natural gas shale exploration and production (E&P) is fueling “significant cost advantages” for North America’s commodity chemicals producers because the costs of gas and oil-based feedstocks remain far apart, according to a report by Fitch Ratings.
NOVA Chemicals Signs Three Deals for Marcellus Ethane
NOVA Chemicals Corp. said Tuesday it had signed agreements with three companies for a long-term supply of Marcellus Shale ethane for its thermal cracker facility in Ontario.
California Fracking Bill Hits Legislative Wall
California’s proposed law (AB 591) dealing with hydraulic fracturing (fracking) was close to being held over as a two-year bill late Wednesday, according to the Western States Petroleum Association (WSPA). With less than two weeks left in this year’s state legislative session, AB 591 has not moved as deadlines have passed in the state Senate Appropriations Committee.
NOVA Chemicals, Statoil Sign MOU on Marcellus Ethane
Statoil Marketing and Trading Inc. (SMT) will supply NOVA Chemicals Corp. with a long-term supply of ethane from the Marcellus Shale play, under the terms of a memorandum of understanding (MOU) announced by the two companies.
NOVA Chemicals Expanding Ethylene Operations
In an effort to capitalize on emerging feedstock opportunities and growing North American demand, NOVA Chemicals Corp. is planning to build new polyethylene lines and expand ethylene production at two facilities, the Canadian chemical giant said Tuesday.
Marcellus Drilling Called Threat to Susquehanna River
Natural gas development in the Marcellus Shale poses a danger to the Susquehanna River and its tributaries, which supply almost half of the fresh water resources in the Chesapeake Bay, American Rivers said Tuesday.
Texas Rail Terminal Planned to Handle Bakken Oil
Port Arthur, TX, is slated to be the site of a new multi-user rail terminal to handle delivery of Bakken Shale crude oil to the Gulf Coast for distribution to pipeline or refining consumers in Texas.
Industry Briefs
New regulations to be implemented in Wyoming by mid-month will give the public more access information about the chemicals used in drilling operations by the natural gas and oil industry. The Wyoming Oil and Gas Conservation Commission (WOGCC) does not plan to compile and present the information to the public, but the information would be available on the website, officials said. Under the new regulations, operators would have to disclose information that would be listed on a well-by-well basis. The disclosures would allow the public to know “exactly” what an operator has pumped into a well if it is hydraulically fractured and would know what the discharges are composed of once well stimulations are completed, said Commission Supervisor Tom Doll.
