Dow Chemical Co. on Thursday launched a five-year, $4 billion petrochemical buildout, mostly for U.S. projects, that would add a 600,000 metric ton polyethylene unit on the Gulf Coast and expand a new Texas ethylene cracker to create the largest facility of its type in the world.
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Petronas, Indian Oil Said to Be in Montney Shale Talks
Malaysia national oil and gas company Petronas (Petroliam Nasional Berhad) is in negotiations to sell a 10% stake in Canadian shale properties it acquired last year to the state-owned Indian Oil Corp. Ltd. (IOC).
Fuel-Switching Drove CO2 Emissions to Nearly 20-Year Low
Energy-related carbon dioxide (CO2) emissions last year were the lowest in the United States since 1994 at 5.3 billion metric tons due to the increasing reliance on lower-priced natural gas to fuel power generation, according to the Energy Information Administration (EIA). With the exception of 2010, carbon emissions have declined every year since 2007.
Industry Briefs
Britain’s Centrica plc has struck a 20-year sale and purchase agreement with Cheniere Energy Partners LP’s Sabine Pass Liquefaction LLC for 1.75 million metric tons per annum (mmtpa) of liquefied natural gas (LNG) with deliveries to begin as early as 2018. The contracted amount is equivalent to 91,250,000 MMBtu/year and with Sabine’s contract with Total Gas & Power North America Inc. (see NGI, Dec. 24, 2012), brings Train 5 contracted volumes to 3.75 mmtpa. Centrica, Sabine’s sixth LNG export customer, is to buy LNG on a free on board basis at a Henry Hub indexed price, plus a fixed component,. The 20-year contract, contingent on regulatory and financing approvals, begins on the date of first commercial delivery from Train 5 and has an extension option of up to 10 years. Centrica businesses include British Gas, which serves about 12 million homes in Britain, nearly half of the country’s homes, and Direct Energy, which has businesses in natural gas production, power generation and distribution in North America.
UK’s Centrica Signs Up for LNG from Sabine Pass
Britain’s Centrica plc has struck a 20-year sale and purchase agreement with Cheniere Energy Partners LP’s Sabine Pass Liquefaction LLC for 1.75 million metric tons per annum (mmtpa) of liquefied natural gas (LNG) with deliveries to begin as early as 2018.
Chesapeake Clinches 10-Year Supply Agreement with Methanex
Chesapeake Energy Corp. has agreed to supply all of the natural gas supplies over a 10-year period required for Methanex Corp.’s 1 million metric ton/year methanol plant, set to begin operations in late 2014 in Geismar, LA.
Authorization Sought for Alaska LNG Export
The Alaska Gasline Port Authority (AGPA) is seeking authorization to export up to 2.5 Bcf/d (19 million metric tons per year) of liquefied natural gas (LNG) over a 25-year term to countries along the Asian-Pacific Rim with which the United States has or establishes a free trade agreement (FTA).
Authorization Sought for Alaska LNG Export
The Alaska Gasline Port Authority (AGPA) is seeking authorization to export up to 2.5 Bcf/d (19 million metric tons per year) of liquefied natural gas (LNG) over a 25-year term to countries along the Asian-Pacific Rim with which the United States has or establishes a free trade agreement (FTA).
Environmental Group Slams FERC on LNG Exports Review
Looking for a back door into the dispute over exports of liquefied natural gas (LNG), the Sierra Club has attacked FERC’s environmental review of the proposed Sabine Pass Liquefaction LLC facilities, saying it failed to consider the impact on shale development and domestic gas prices.
Industry Brief
Cheniere Energy Partners LP unit Sabine Pass Liquefaction LLC is in talks with Sumitomo Corp. to provide up to 1.5 million metric tons/year of processing capacity at the Sabine Pass LNG terminal in Cameron Parish, LA. Sabine Pass is seeking to add liquefaction capability at the terminal for liquefied natural gas (LNG) export from the United States and has announced nonbinding discussions with several parties for capacity (see Daily GPI, Jan. 21). Sumitomo is an integrated trading and investment company based in Tokyo.