Oil and gas industry news: 26 November 2014

Canada

Enercom’s Oil&Gas 360 reports that the Canada oil and gas provinces of Alberta, Saskatchewan and Manitoba placed among the top jurisdictions in the world for oil and gas investment, according to an independent survey. Alberta remains the most attractive province for oil and gas investment in Canada, according to the Fraser Institute’s annual Global Petroleum Survey of oil and gas executives.

Kenneth Green, senior director, Fraser Institute’s Center for Natural Resources said, ‘Alberta’s wealth of petroleum reserves continues to attract investment, which creates jobs for scores of Canadians. Alberta ranked second in the world behind Texas among jurisdictions with large oil and gas reserves. And of the 69 global jurisdictions with small proven oil and gas reserves, Saskatchewan and Manitoba ranked number two and three respectively.

Freeport LNG

Freeport LNG Expansion, LP has announced that its subsidiaries, FLNG Liquefaction, LLC and FLNG Liquefaction 2, LLC have successfully closed on debt and equity financing commitments of approximately US$ 11 billion in capital required for the development of the initial two trains of Freeport LNG’s natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas, making it the largest fully non-recourse construction project financing ever. Commitments in excess of the anticipates US$ 9.64 billion in project costs, inclusive of financing costs, provide significant buffers for contingencies and cost overruns to ensure successful completion.

With closing on financing, Freeport LNG has completed all milestones and issued a full notice to proceed to CB&I, Inc. and Zachry Industrial, Inc. to construct the first two liquefaction trains of the Freeport LNG liquefaction project. Financing and commencement of construction on the third liquefaction train is expected in second quarter 2015. The first liquefaction train is expected to start operations in the third quarter of 2018, with the second liquefaction train expected to commence operations five months after.

Michael S. Smith, CEO, Freeport LNG said, ‘we are excited to bring together a diverse group of the world’s most sophisticated investors, lenders, LNG industry participants, and governmental institutions to support the advancement of the Freeport LNG liquefaction project, and look forward to completing a successful construction of the initial two trains and beginning commercial exports in 2018.’

HM Revenues & Customs

Two suspected diesel laundering plants, capable of evading an estimated £ 12 million in duty between them, have been dismantled by HMRC in Essex and Mersyside. The discovery of the plants, which are capable of producing 20 million ltrs of illicit fuel a year, is connected to activity by Kent police, investigating the theft of fuel from commercial pipelines in the UK.

During a series of multi agency operations on 20 November, HMRC, accompanies by officers from Merseyside police, searched commercial premises in the Bootle area where they discovered a laundering plant in an industrial unit. In coordinated activity, HMRC and officers from Kent Police searched a number of commercial premises in the Upminster and West Thurrock areas of Sussex and uncovered a second fuel laundering facility.

Pat Curtis, National Oils Coordinator, HMRC said, ‘every illegal diesel laundering operation typically generates tonnes of toxic waste and robs UK taxpayers by evading fuel duty. Taxpayers are not only missing out on the stolen tax that ends up in the pockets of criminals, but will have to pay the substantial clean up and disposal costs. Buying illicit fuel not only funds crime, it supports and encourages these dangerous activities within our communities and we will continue to work with our partners in the police to target this criminality, which costs millions in lost taxes every year.’

Investigations into the seizures are continuing.

Edited from various press releases by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/26112014/oil-gas-industry-news-26-nov/