One of the goals of any business or entrepreneur is to secure new business opportunities. These business opportunities would enhance your business revenues and profitability. In the oil and gas industry, LNG projects provide you with such opportunities. You might ask; what are the upcoming LNG projects?
There are numerous LNG projects expected to commence operations across the world in the coming years. The projects have been initiated to meet a strong demand for cleaner-burning fuel.
As governments open up development opportunities, and companies invest heavily in new areas, a wealth of potential has opened up.
17 Upcoming LNG Projects in the World
The following are the top 17 biggest upcoming LNG projects based on their processing capacity in millions tons per annum (mtpa)
- Qatar LNG expansion project – 32mtpa
- Driftwood LNG LLC – 27mpta
- Rio Grande LNG – 27mtpa
- Orca Floating – 24mtpa
- Nikiski LNG Project – 20mtpa
- Arctic-2 – 19.8mtpa
- Kitimat LNG in Canada – 14mtpa
- Baltic LNG Liquefaction Plant
- Abadi LNG Project
- Tanzania LNG Liquefaction Plant
- Rovuma LNG Liquefaction Plant
- Ogidigben Gas Revolution Industrial Park (GRIP)
- Mozambique LNG Project
- Etan & Zabazaba Oil Fields
- Namibe Refinery Complex
- Dangote Refinery and Polypropylene Plant
- Alaska LNG Liquefaction Plant
Here is a closer look at some of the upcoming LNG projects currently in development across the world.
Biggest Upcoming LNG Projects in the World
Qatar LNG expansion project – 32mtpa
The Qatar LNG expansion project is the world’s biggest upcoming LNG project that is planned to have a processing capacity of 32mtpa. The project, which will be operated by Qatar Petroleum, is planned to commence production by 2023.
Estimated to cost $32bn, the expansion project aims to increase LNG production capacity of the North gas field from 77mtpa to 100mtpa.
Driftwood LNG LLC – 27mpta
Driftwood LNG LLC, owned by Tellurian Inc., is developing a liquefied natural gas (LNG) production and export terminal on the west bank of the Calcasieu River, south of Lake Charles, Louisiana. Once complete, the terminal will be able to export up to twenty-seven million, six hundred thousand tonnes of LNG per year to customers worldwide.
Rio Grande LNG – 27mtpa
The Rio Grande LNG project is located in Brownsville, Texas, US, the project is estimated to cost more than $15bn. BECHTEL, a global leader in project management, engineering, and construction, has been awarded the engineering, procurement, and construction (EPC) contract by NextDecade for the first phase of the Rio Grande liquefied natural gas (LNG) project.
NextDecade’s subsidiary Rio Grande LNG will develop and operate the LNG export terminal long the northern shore of Brownsville Ship Channel in the Cameron County.
As one of the upcoming LNG projects also includes construction of feed gas pipeline, which will be built and operated by Rio Bravo Pipeline, another subsidiary of NextDecade. The terminal, which is scheduled to be commissioned in 2023, will comprise a total of six liquefaction trains, each with a capacity of 4.5mtpa.
Orca Floating – 24mtpa
The Orca Floating is the third world’s biggest upcoming LNG projects, which is planned to be built by Orca LNG in Canada.
The Canadian LNG project, which is estimated to cost $15.8bn, was announced in 2014. Currently, the project is at the feasibility stage. To be developed in the British Columbia province, the Orca LNG gas gathering and liquefaction facility is targeted to begin operations in 2026. As per the plans, Orca LNG will operate six floating facilities in the form of converted barges near Prince Rupert in Kaien Island.
Each of the floating facilities of the LNG export project will be designed to have a production of four to five million metric tons of LNG per year. The floating liquefaction storage and offloading (FLNG) vessels of the project are planned to be moored permanently near-shore.
All the FLNG vessels of the project will have liquefaction capabilities to go along with 250,000 cubic meters of LNG storage capacity. Furthermore, the vessels will be designed to transfer LNG to off-taking LNG carriers through a ship-to-ship process.
In mid-2015, the Orca LNG Terminal secured a 25-year natural gas export licence for a maximum term quantity of 901 billion cubic meters from the Canada’s National Energy Board (NEB).
Nikiski LNG Project – 20mtpa
The Nikiski LNG project is a 20 mtpa liquefaction plant that will be built in Nikiski in the US, as part of the $45bn integrated gas infrastructure development project the Alaska LNG project, which is being developed by the Alaska Gasline Development Corporation (AGDC). The integrated gas project will also have a gas treatment plant in Prudhoe Bay and a 1,287km long pipeline to transport natural gas from the North Slope to Southcentral Alaska.
Currently in the approval stage, the $13bn Nikiski liquefaction plant, which is targeted to begin production between 2023 and 2025, will have three LNG trains, each having a capacity of 6.70mpta. It will also feature two storage tanks with a capacity of 240,000 cubic meters, terminal facilities and marine services, and two loading berths to station LNG carriers up to 217,000 cubic meters. The Nikiski liquefaction plant is expected to serve the growing Asia Pacific LNG market.
AGDC expects a final approval from the Federal Energy Regulatory Commission (FERC) for the Alaska LNG Project in June 2020. As one an upcoming LNG projects, it is backed by oil and gas giants BP and ExxonMobil, which signed a pact with AGDC in March 2019, to help in moving it forward.
Arctic-2 – 19.8mtpa
The Arctic LNG 2 project, to be located in the Gydan Peninsula in northern Siberia,
Russia, will be developed by Novatek. The $21bn LNG project will comprise three liquefaction trains, each with a capacity of 6.6 Mt/y. It will be fed with more than seven billion boe of resources estimated to be held in the Utrenneye onshore gas and condensate field. Saipem and Turkish firm Renaissance hold a €2.2bn onshore engineering and construction contract for the Arctic LNG 2 project, which is expected to begin operations in 2023.
Siemens was awarded a contract to deliver compressor equipment, which includes three feed gas compressors and six boil-off gas compressors, for the three liquefaction trains of the Russian LNG project.
Earlier this year, French oil and gas major Total signed a deal with Novatek to acquire 10% direct stake in the project for an undisclosed price. A final investment decision on the Arctic LNG 2 project is due to be taken in the second half of 2019.
TechnipFMC has been awarded a major EPC engineering, procurement and construction contract by Russia’s Novatek and its partners for the Arctic 2 liquefied natural gas project in western Siberia.
It said the consolidated contract value to TechnipFMC for Arctic LNG-2 was $7.6 billion and consists of three LNG trains, each with a capacity of 6.6 million tons per annum (Mtpa).
Kitimat LNG in Canada – 14mtpa
LNG Canada is a major liquified natural gas (LNG) project currently under construction on the west coast of Canada. It is expected to deliver its first LNG shipment before the middle of the next decade.
Location: Kitimat, British Columbia, Canada
Interest: Shell (40%), PETRONAS (25%), PetroChina (15%),
Mitsubishi Corporation (15%) and KOGAS (5%)
Operator: LNG Canada Development Inc.
Production capacity: 14 million tonnes per annum (mtpa) from the first two trains, with the potential to expand to four trains in the future
In October 2018, Shell along with four joint venture participants, took a final investment decision to develop LNG Canada, a major liquified natural gas processing facility located in Kitimat, British Columbia.
LNG Canada will initially consist of two trains, or processing units, that will receive and process natural gas, converting it into LNG ready for shipping. These two units will have the capacity to produce 14 million tonnes of LNG per year.
There is the possibility of expanding the facility to include up to four processing units in the future.
Kitimat was chosen as the ideal location for the facility due to the easy access to abundant, low-cost natural gas from British Columbia’s vast resources.
The location also benefits from a relatively short shipping distance to north Asia, one of the fastest growing gas markets in the world. The shipping route is approximately 50% shorter than from the US Gulf of Mexico and avoids the Panama Canal.
Since it is one of the upcoming LNG projecs, itt has strong support from the local community, including indigenous First Nations, as well as from the local government. The project partners are also working to ensure that sustainable development is considered in every aspect of the project.
For example, LNG Canada has been designed to achieve the lowest carbon intensity of any LNG project in operation today, aided by the partial use of hydropower.
Baltic LNG Liquefaction Plant
Longstanding plans for the Baltic LNG Liquefaction Plant were finalised by Gazprom in April 2019, with the project to be built in Ust-Luga, Leningrad Oblast, Russia.
The proposed plant is expected to produce a capacity of 13 mtpa of LNG as well as 4 mtpa of ethane and 2.2 mtpa of liquefied petroleum gases. Two liquefaction trains will be built, with gas coming from the Achimov and Vlaanginian fields of the Nadym-Pur-Taz region. Gazpom hope to have the first train in operation by the second half of 2023, and the second in late 2024. The facility will cover an area of 1,400 hectares.
The project is a major one for the Russian government, with the Deputy Finance Minister committing 900 billion rubles ($13.87 billion) from the National Wealth Fund.
9. Abadi LNG Project
Inpex Corp received approval for its revised plan of development (POD) for the Abadi LNG project from the Indonesian government on 16th July 2019. The revised plans changed the proposal from a floating LNG development to an onshore one.
The facility will be located on the Tanimbar Islands, around 150km from the Abadi gas field, and will have a planned capacity of 9.5mtpa, with around 150 MMcf/d of gas available for domestic consumption.
Inpex will next be working with Shell to begin necessary preparations of a FEED stage, following which a final investment decision (FID) will be made. The FID is expected in 2021, with commercial operations beginning in 2026.
Top Oil, Gas and Upcoming LNG Projects in Africa
Africa’s Oil & Gas landscape is vastly different compared with a few years ago. The significant resources found across the continent coupled with a relatively low price environment have made it a prime region for investment both from local and international sources.
1. Tanzania LNG Liquefaction Plant
Cost: $30 billion
The Tanzania Liquefied Natural Gas Project (TLNGP), also known as Likong’o-Mchinga Liquefied Natural Gas Project (LMLNGP) has been since the country’s first gas discovery in 2010.
It’s believed that Tanzania’s proven natural gas reserves total 57 trillion cubic feet, with a further 29.5 trillion cubic feet located far offshore. Plans were made for the construction of an LNG liquefaction facility spanning 5,119 acres in Likong’o Village, outside the town of Lindi.
Two LNG trains are to be constructed initially at the facility, each with a capacity of 5 million tonnes per annum. It’s expected that up to five trains could be constructed in total. A gas pipeline to Uganda was also announced in May 2016.
The project has been delayed several times due to governmental complications, but the owners Equinor, Shell, ExxonMobil, Ophir Energy and Pavilion Energy continue to make development plans. In May last year, the government announced plans to begin construction in 2022, with the facility coming on line in 2028.
2. Rovuma LNG Liquefaction Plant
Cost: $22.4 billion
Mozambique’s Rovuma LNG project is one of our top 10 Oil & Gas projects to watch in 2021.
Africa’s largest ever private project is being operated by ExxonMobil and is part of a series of major projects set to transform the country’s natural gas industry over the next five years.
The Rovuma LNG facility will have an initial cost of $500 million for construction of the initial two liquefaction trains and associated onshore facilities, with further construction due after. It’s expected that each train will output 8.2 million tonnes of LNG per year, with the facility due to operate for at least 30 years.
A final investment decision on the project is expected later this year, with production due to begin in 2025.
3. Ogidigben Gas Revolution Industrial Park (GRIP)
Cost: $20 billion
A downstream refinery and petrochemical complex known as the Gas Revolution Industrial Park (GRIP) has been long planned for Ogidigben, in the Delta region of Nigeria. The complex is fully owned by the Nigerian National Petroleum Corporation (NNPC) and will include a batch of new chemical plants that use Nigeria’s abundant natural gas as a feedstock.
18 trillion cubic feet of gas reserves are located in the nearby Odidi, Okan and Forcados fields, all located within a 50km radius. Further gas will be supplied by Nigeria’s most dominant gas pipeline network – ELPS.
As a government-owned project, the GRIP has been designated a tax-free zone to enable faster planning and open up a wider range of resources. Chemical plants, refineries, petrochemical plants, fertiliser factories and aluminium plants are all to be constructed – generating 250,000 direct and indirect jobs.
The project has seen a series of delays, with “security challenges” given as a primary reason by the Nigerian government. However, State Minister for Petroleum Resources, Chief Timipre Sylva has given fresh assurances in recent months that the project will go ahead as planned.
4. Mozambique Upcoming LNG Projects
Cost: $15 billion
Like the Rovuma project, Mozambique LNG is a massive undertaking that will shape the country’s economic future and create thousands of jobs over several years.
A consortium including Total, Mitsui & Co, ONGC, ENH, Bharat PetroResources, PTTEP and Oil India Ltd. are involved in the development, with Total leading the project after taking over Anadarko’s 26.5% interest in September 2019.
Related: What is Mozambique Area-1 LNG Project?
The Mozambique LNG project will involve a staged construction process beginning with a two-train liquefaction plant with a capacity of 12.9 million tonnes per year. Two LNG storage tanks, each with a capacity of 180,000 cubic metres, condensate storage, a multi-berth marine jetty and associated facilities and infrastructure will also be constructed. More than 60 trillion cubic feet of gas resources are thought to be in place, to be developed by these initial trains.
Subsequent phases are being considered which would see the addition of extra trains to increase the volume of LNG that could be exported from the facility.
The Plant will derive its natural gas feedstock predominantly from the fields of the Area 1 block such as Golfinho-Atum Complex and the Prosperidade Complex. It is expected that the Mamba Complex and Coral FLNG will also supply natural gas to the Plant.
A final investment decision was reached in June 2019 and it’s hoped the project will come online by 2024. The initial construction, operation and maintenance stages are expected to create 15,000 jobs.
5. Etan & Zabazaba Oil Fields
Location: Offshore Nigeria
Cost: $13.5 billion
The Etan & Zabazaba fields are located in the deepwater OPL 245 block in the Gulf of Guinea, off the coast of Nigeria. In water depths of 1,200m – 2,400m, the fields together contain up to 500 million barrels of oil equivalent, with additional exploration upside to be investigated in future years.
The Etan field was the first discovery, back in 2005 when the Etan-1X discovery well was drilled to a total depth of 4,575m in 1,720m of water and logged 120m of hydrocarbon-bearing sands.
Zabazaba was discovered in 2007, 40km from Etan on the other side of a subsea canyon.
An integrated development project is being jointly launched by Eni and Shell, with plans to use the ZabaZaba FPSO to tap both fields in a phased development. The FPSO will be spread-moored with a capacity of 120,000 barrels per day.
6. Namibe Refinery Complex
Cost: $12 billion
An investment vehicle set up by two Russian groups (75% investment by Rail Standard Service and 25% by Fortland Consulting Company) and local partners proposed in 2017 a new 400,000 barrel per day refinery to be built in Namibe, Angola.
The planned complex will have a staged construction, with a refinery and rail link to be built in the first phase along with integrated infrastructure and followed by construction and management of a residential area and power plant.
The first phase will include the production of 28,000 barrels of refined oil within three and a half years and 364,000 barrels per day in the final phase within 11 years.
A JV was approved by the Angolan President the same year, with the government committing to buying 364,000 barrels per day of petrol and other fuels as production increases over an 11 year period. The project partners laid the first stone in July 2017.
The project is expected to start up in 2028.
7. Dangote Refinery and Polypropylene Plant
Cost: $11 billion
Nigerian based Dangote Group, Africa’s largest industrial conglomerate, are developing a major downstream facility in Nigeria’s Lekki Free Trade Zone. The 650,000 barrel per day oil refinery will produce 153,000 barrels per day of gasoline, 104,000 barrels per day of diesel, 73,000 barrels per day of jet fuel, 4,109 barrels per day of LPG and 12,300 barrels per day of fuel oil.
It will be able to process different grades of crude including shale oil.
Construction is underway, with the refinery thought to be 75% complete, with the petrochemical unit 60% complete. The completed refinery will include a crude distillation unit (CDU), a single-train residual fluid catalytic cracking (FCC) unit, diesel hydrotreating, continuous catalyst regeneration unit, alkylation unit, polypropylene unit, utilities and off-sites, including a captive power plant and infrastructure for a single-point mooring terminal for crude oil and product handling.
The petrochemical complex will be located alongside the refinery and will include a mixed feed cracker with a capacity of 1.1 million tonnes per annum (tpa) of ethylene and 350,000 tpa of propylene. The plant will also comprise a 750,000 tpa polypropylene plant.
The plant will also include a fertiliser unit.
The first production is due for the beginning of 2021, with full capacity expected to be reached halfway through the year.
Upcoming LNG Projects and Terminals in the USA
The growth in liquefied natural gas (LNG) has had an incredible impact on the oil and gas industry over the last few years, with over 284 million tonnes of LNG being produced annually – and demand increasing. Though the USA only made its first export in 2016, growth of the global marketplace – particularly in Asia – is making this an increasingly vital part of the energy sector.
With this growth come new opportunities. Major oil and gas companies are now investing significant amounts in increasingly large liquefaction plants and export terminals. With each of these investments comes new jobs for engineering and technical professionals in the surrounding areas during the construction, installation and operational phases.
A conventional LNG terminal includes liquefaction plants, storage facilities and export hubs. With new onshore and offshore terminal developments being planned throughout the world there are too many to list in one place. But here are just a few of the biggest global LNG terminal projects that are being planned for construction over the next few years and will be creating thousands of engineering jobs.
1. Alaska LNG Liquefaction Plant
One of the biggest LNG mega-projects in the world, the Alaska integrated natural gas project is expected to deliver an average of 3.5 billion cubic feet of gas per day from the North Slope gas fields.
The liquefaction plant, located in Nikiski, is just one part of this mega project, which also includes a gas treatment plant and 800 mile pipeline. The three-train LNG liquefaction plant will have a capacity of 20mtpa, and is expected to receive 2.8 bcf/d to liquefy.
The facility will require construction of three LNG trains, two 240,000 cubic meter storage tanks, terminal facilities and marine services and two loading berths capable of accommodating Q-Flex LNG carriers up to 217,000 cubic metres. 100,000-150,000 tons of steel will be required for the construction.
The liquefaction plant project is currently in the Pre-FEED stage. As of July 2019, the plant is undergoing a public comment period following a draft environmental impact statement that concluded that the project’s significant impact would be offset by many economic benefits. The public comment period will close in October, after which it’s hoped that Federal approval will be granted in March 2020 and construction can begin shortly after, with Q4 of 2025 eyed for a startup.
At peak construction, the LNG liquefaction facility will require a workforce of 3,500-5000 people, while a shipping and storage terminal will require 1,000-1,500 workers.
2. Main Pass Energy Hub LNG Export Terminal
The Main Pass Energy Hub (MPEH) project will be located 16 miles offshore Louisiana and is intended to use two GLS Liqui-Max Vessels (LMVs) to liquefy, store and offload up to 12 million tonnes per year each of LNG.
The project is in the advanced engineering phase, with a FID expected later this year. Baker Hughes has been selected to provide the project with rotating equipment, while Siemens and Sembcorp Marine will build and deliver the first LMV.
Existing structures previously used for sugar and salt domes will form the basis of the offshore terminal, although significant construction will be required to build new facilities and salt storage caverns. The facility will also create jobs for the construction, installation and operation of floating liquefaction storage and offloading (FLSO) vesself to be used for the on-site liquefaction and exportation of LNG. Each of the six proposed FLSO vessels will need to be capable of producing 4mtpa.
Construction is aimed to be completed for a Jan 2023 start up.
In conclusion, terminals are an important part of the supply chain in the import and export of LNG. The upcoming LNG projects will add to the global LNG supplies and capacity.
With new upcoming LNG projects being sanctioned and expected to become on-stream in a few years, there will be huge business and job opportunities in the oil and gas industry.
As demand for LNG continues to grow, new projects are being commissioned around the world every day.
Frequently Asked Questions
What is LNG Re-Gasification?
Regasification is the process of converting LNG gas from liquid state to gaseous state.
Heat exchangers are used to regasify the LNG after it is removed from the tanks and pressurized between 70-100 bars.
Generally sea water is used for the re-gasification process along with high pressure pumps for transferring LNG
What is an LNG export terminal?
Liquefied natural gas terminal is a structure for liquefied natural gas to store. LNG is the form used to transport natural gas over long distances, often by sea.
In most cases, LNG terminals are purpose-built ports used exclusively to export or import LNG
How is LNG obtained?
The gas stream is typically separated into the liquefied petroleum fractions (butane and propane), which can be stored in liquid form at relatively low pressure, and the lighter ethane and methane fractions.
These lighter fractions of methane and ethane are then liquefied to make up the bulk of LNG that is shipped.
Who Invented LNG?
Early contributors to LNG industry include Lee Gaumer and Chuck Newton who invented the all mixed refrigerant cycle and the C3-MR cycle for air products LNG process.
The Wilkes Barre cryogenic facility has manufactured the coil wound LNG Main Cryogenic Heat Exchangers (MCHE) since late 1960s.
Is LNG clean energy?
LNG is considered energy of the future. LNG is the cleanest fossil fuel.
In the context of the current energy transition, it represents an excellent alternative to reduce greenhouse gas emissions and help combat global warming.
Is LNG better than oil?
LNG generates 30% less carbon dioxide (CO2) than fuel oil and 45% less than coal, with a two-fold reduction in nitrogen oxide (N0x) emissions and almost no environmentally-damaging sulphur dioxide (SO2) emissions.
What are the Functions of an LNG Terminals
A conventional terminal has four functions:
- Berthing of LNG tankers and unloading or reloading of cargoes,
- Storage of LNG in cryogenic tanks (-160°C),
- Regasification of LNG,
- Send-out of this gas into the transmission grid.
What is Berthing and unloading of LNG?
On arrival at the LNG terminal, the tankers (length 200 to 350 m) are moored to the unloading berth.
Articulated arms are connected to the LNG carrier to unload its cargo and transfer LNG to the terminal storage tanks. The LNG flows through pipes specially designed to withstand very low temperatures (-160°C).
This operation takes at least 12 hours. A volume of boil-off gas is sent back from the terminal storage to the LNG tanker in order to maintain the pressure inside its cargo tanks.
How is LNG Stored?
LNG is stored in cryogenic tanks (designed for low temperatures) capable of withstanding temperatures of -160°C to maintain the gas in liquid form.
The outer walls of the storage tanks are made of pre-stressed reinforced concrete. They are insulated to limit evaporation.
Despite the high-quality insulation, a small amount of heat still penetrates the LNG tanks. This causes slight evaporation of the product. The resulting boil-off gas is captured and fed back into the LNG flow using compressor and recondensing systems.
This process prevents the occurrence of venting natural gas from the terminal under normal operating conditions.
During maintenance periods, boil off gas can no longer be recovered and is burnt off by the flare stack. It is preferable to burn the methane than to release it into the atmosphere (reduced impact on the greenhouse effect.