The government of Croatia announced that it will spend EUR 100 million from the state budget for the first phase of the construction of the Krk LNG terminal in 2019 and 2020. The estimated value of the project, EUR 234 million, includes a specific vessel, that is the Floating Storage and Regasification Unit (EUR 160 million) and the construction of the infrastructure necessary for receiving, storing, reloading and regasification of liquefied natural gas (EUR 60 million), while the compensation for the expropriation of the land will need EUR 14 million. In 2017, the European Commission approved a EUR 102 million grant for this floating LNG terminal of Krk, a PCI project.- The remaining amount of 32.6 million will be provided by the founders of the LNG Croatia company, the HEP national electricity provider, a CEEP member, and the Plinacro gas network operator. Energy and Environment Protection Minister of Croatia, Tomislav Coric, said: "The implementation of the LNG terminal should be perceived through its security component and through its geopolitical significance for Croatia and the European Union". He added that the LNG Krk project remains the government's dominant energy project. The LNG Croatia company has received binding offers for the lease of 520 million cubic metres of gas from the future LNG terminal on Krk and two conditional offers for the non-binding lease of 300 million cubic metres, the company said in mid-December. Source: [...]
In the below interview, the CEO of EPSO-G, Rolandas Zukas, explains the impact of the regional cooperation on the energy sector from Lithuania, as well as describing the achievements from the last months in terms of security of supply, gas and electricity. From the LNG terminal in Lithuania’s Klaipėda port, to under-the-sea energy bridge with Sweden NordBalt as well as electricity link with Poland. What do you want to accomplish as a CEEP member? Nowadays when the future is happening faster than ever, we all in the energy sector have no other option than to work closer to tackle shared strategic energy challenges, but opportunities as well. In this respect, we see our membership in the independent industry body, CEEP, as a way to assist the EU once it takes legislative moves towards further diversification of its energy routes and sources, particularly across Central and Eastern Europe and the Baltic countries. Which should be CEEP’s priorities for the next years from your perspective? EPSO-G, Lithuania‘s state run holding of electric energy and gas transportation systems, has long been looking for efficient ways to diversify from what it used to be a historical dependence on monopoly gas supply from the East and isolation of its electricity and gas networks from the neighboring European markets. The situation has drastically changed over the past 18 months. Lithuania welcomed the arrival of the „Independence”, a floating liquefied natural gas import (LNG) terminal that marked the end of country‘s reliance on gas supplies from a single source. That affected positively gas prices for consumers and businesses. The under-the-sea energy bridge with Sweden NordBalt as [...]
As discussed in last month’s CEEP Report, the United States has five LNG export projects that are already under construction, which could produce 68.4 million tonnes per annum (mtpa) of LNG when all 14 “trains” come online before the end of 2019. (Currently, only two trains are operational.) In this second of our threepart series, we discuss the U.S. LNG export projects which are at or near the end of their U.S. governmental reviews, and thus, can be characterised as “near development.” Elba Island. Kinder Morgan—one of North America’s premiere midstream oil and gas companies—is adding liquefaction capabilities to an existing modest-scale LNG import terminal, located in Savannah, Georgia. This project will have the capacity to create up to 2.5 million tonnes per annum (mtpa) of LNG, and has received initial approval to proceed from the U.S. Federal Energy Regulatory Commission (FERC), one of the U.S. agencies that regulates LNG projects. In a news release (Oct. the 19th, 2016), Kinder Morgan stated that construction on the liquefaction facility would begin on Nov. the 1st, 2016, even though the FERC order remains under appeal, and a licence which has not yet been obtained (but is expected) from the U.S. Department of Energy (DOE), to allow the export of LNG to nations that do not have free trade agreements (FTAs) with the United States. Construction is expected to be complete by the end of 2018, when all 10 of Shell’s Moveable Modular Liquefaction Systems are online. Lake Charles LNG. Another large U.S. midstream player—Energy Transfer—also has plans to convert an existing LNG import terminal to a bi-directional facility by adding three [...]
The United States joined the ranks of natural gas exporting nations in February 2016, when cargoes of liquefied natural gas (LNG) began to be shipped from Cheniere Energy’s Sabine Pass liquefaction project in south-western Louisiana. The first liquefaction ’train’ at Sabine Pass (Train 1) has continued to operate since then, with 20 cargoes loaded, as of July the 31st. Since that date, LNG from Sabine Pass has been exported to 10 nations in four global regions, with most cargoes heading to South America (See Charts 1 and 2). Over the next three years, the volume of LNG produced in the United States, will grow dramatically, as 13 additional liquefaction trains come online at the five U.S. projects already under construction. Here’s a project-by-project breakdown: Sabine Pass. Train 2 at Sabine Pass started producing LNG on July the 28th, and on September the 16th, Cheniere announced that it had “taken control” of Train 2 from Bechtel (its EPC contractor). The turnover is being done in co-ordination with a previously planned outage, to improve the performance of the flare systems at Sabine Pass, as well as to perform scheduled maintenance to Train 1 and other facilities. Under a sale and purchase agreement (SPA) with Gas Natural Fenosa, the date of the first commercial delivery for Train 2 of the project, is expected to occur in August, 2017, upon which, the SPA’s 20-year term commences. (Shell controls the commercial cargoes from Train 1, under a 20-year SPA). Trains 3 and 4 at Sabine Pass are expected to be “substantially complete” by the third quarter of 2017. Train 5 is to be completed [...]
The United States can support Europe, especially Central Europe, by influencing its energy security policy. When it comes to the EU-11’s gas dependency on one supplier, the trade role that the US can play will be an integral part of a better and fairer world. This was argued by Marcin Bodio, the CEO of CEEP, at the 3rd Transatlantic Energy Conference, that took place on April the 4th, 2016, in Washington, D.C. This conference edition focused on the theme: ‘American gas for Europe’. In his well-received speech, Mr. Bodio broadly covered the topic of LNG, as well as touching upon such areas as the EU’s proposed Energy Union, the TTIP, and the crucial North–South Corridor. He also looked at how gas markets are developing globally, including Gazprom’s response to the ongoing changes. The EU-11’s gas dependency on one supplier was also highlighted, whilst all of these topics were underpinned by the subject of energy security. “This is something of a European fixation, but a vitally important one. As energy is the universal cornerstone of our civilisation, Europe is, and will remain in the foreseeable future, a net importer of energy, one of the biggest in the world. Europe has always been concerned with energy and energy security policy, and has constantly been in search of new sources of energy, to fuel the growth and well-being of its societies. So, as the US has a lot to offer Europe, in that respect, it comes as no surprise that energy and the security of energy supply have been subjects of the transatlantic debate for a long time,” Mr. Bodio proclaimed. It [...]
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