Pacific Rubiales Energy (PRE) acting through its wholly owned subsidiary Pacific Stratus Energy Colombia, and Belgium based EXMAR NV have signed a 15 year Agreement for the Liquefaction, Regasification, Storage and Offloading of Gas/LNG.
The Agreement calls for EXMAR to build, operate and maintain a Floating Liquefaction, Regasification & Storage Unit (FLRSU) to be located in the Caribbean coast of Colombia. The Agreement grants PRE exclusive guaranteed rights to liquefy up to 72 mmscf/d (million standard cubic feet per day) under a tolling scheme. The FLRSU will have a storage capacity of 14,000 m³ of LNG and will be able to also accommodate a 140,000 m³ Floating Storage Unit (FSU). Commercial operations of the FLRSU are estimated to start in the fourth quarter of 2014.
Ronald Pantin, CEO of PRE , commented: “ We are very happy with this agreement as it not only opens new markets for the company but also reinforces our view that Colombia has enough gas resources to become a reliable LNG supplier for the region ”.
As part of the project, PRE will build a 18” pipeline with a length of 88 km from the La Creciente gas field to the unit at the Caribbean coast. The pipeline will have an initial design transportation capacity of 100 mmscf/d.
With this project PRE targets markets in Central America and the Caribbean, aiming mainly to replace heavy fuel oil and diesel oil used for power generation. The project will create opportunities for industries and households in these countries, while putting in place new incentives to develop the large gas resources in Colombia.
Nicolas Saverys, CEO of EXMAR , added: “ We are proud to assist PRE in reducing the carbon footprint of Central America and the Caribbean “.
This FLRSU will be the world’s first operational floating LNG production unit. The unique technology on board is the result of EXMAR’s innovative leadership in the LNG industry.
[mappress] Source: EXMAR, March 28, 2012