In this issue

 

Re-load and re-export of LNG cargoes, notably from the US Gulf Coast, is now possible from the AES Dominicana Liquefied Natural Gas reception terminal after the operator modified the terminal accordingly. 

Dresser-Rand, now part of Siemens Power and Gas, has commissioned its first micro-scale natural gas liquefaction system at the Ten Man LNG facility in Pennsylvania. The modular, portable LNGo technology enables distributed production of LNG and can be installed in a short period of time to meet local gas demand. 

Woodfibre LNG, the privately-held venture firm backed by Indonesian billionaire Sukanto Tanoto and his Pacific Oil and Gas company, has filed for a 40-year export licence to ship cargoes from Canada to Asia. Early works for construction of the 2.1 mpta liquefaction facility are already underway near the town of Squamish, just north of Vancouver. 

Wednesday, 01 February 2017

Egypt and Jordan joined the LNG-buyers’ club by using an FSRU in 2015, which offers a faster, cheaper alternative to land-based regas terminals. In the long run Egypt will develop the Zohr gas field, but in the short-term, it remains reliant on LNG to meet its natural gas demand. At odds, around 82% of the Jordan’s electricity is currently generated via imported LNG and there is still upside – making both countries an outlet for spot LNG cargoes from the United States. 

Uncertainty and speculation about US President Donald Trump’s connection with Russia has been fuelled by his appointment of Rex Tillerson, the former ExxonMobil CEO, as Secretary of State. This choice brings public scrutiny to an “exaggerated Russia and ExxonMobil connection”, says Anna Belova, GlobalData’s senior oil & gas analyst. 

Wednesday, 01 February 2017

Just like Egypt, Jordan’s gas needs far exceed its production and supply from Egypt has been interrupted since a 2011 blast that destroyed the pipeline linking Jordan with Egypt. Looking for an alternative, secure option to import natural gas, Jordan arranged with Golar to set up the country’s first FSRU Eskimo at the port of Aqaba in May 2015, underpinned by a 5-year SPA with Shell.

Australia’s Texas LNG, the midscale LNG projects planned for the port of Brownsville, has entered into its second marketing phase after signing up customers from China and Southeast Asia. 

Lake Charles-based 8 mtpa Magnolia LNG, under development in Louisiana, has signed a Heads of Agreement (HoA) with Vessel Gasification Solutions Inc. (VGS) in relation to shipping cargoes to India. The non-binding HoA between Magnolia and VGS stipulates a future free-on-board (FOB) Sale and Purchase Agreement (SPA) over 20 years of up to 4 mtpa, half of the planned initial capacity at the Louisiana plant. 

Is it cheaper to pay for the price spikes of spot LNG cargoes during the winter season or for building new pipelines in New England? That is the key question to solve surging gas-to-power demand in this unique corner of the United States. 

NextDecade, the US project developer run by former Shell executive Kathleen Eisbrenner, has signed land agreements for a 1,000 acres site with deep water access to the Gulf of Mexico at Shoal Point, Texas, for the development of a “multi-billion dollar” LNG export facility. 

The Point Comfort near-shore LNG project in Calhoun County, Texas., run by Lloyds Energy Group, has submitted an application to the US Department of Energy (DoE) to export shipments to countries with a US Free Trade Agreement (FTA). 

Wednesday, 01 February 2017

Air Products, a leading US LNG equipment maker, has made a takeover approach to Yingde Gases – the largest gas services company in China. With this move, Air Products seeks to expand its foothold in this key market in Asia after completing a company overhaul.

Australia’s Liquefied Natural Gas Ltd, whose ventures include the Magnolia LNG plant in Louisiana and the Bear Head facility planned for Nova Scotia, has been asked by the Australian Securities Exchange (ASX) to explain reasons behind the 23% surge of its shares. 

A project aimed at importing liquefied natural gas cargoes into the UK natural gas market at the port of Barrow-in-Furness in Cumbria, northwest England, from Louisiana on the US Gulf Coast is still alive after an offtake agreement was extended to November 2017. 

News Nudges

Rio Grande LNG gears up for stock market listing

Next Decade is following the trend of US Gulf Coast liquefaction projects to get their project companies listed on the stock exchange. Kathleen Eisbrenner’s NextDecade has signed a letter of intent for a business combination transaction that will allow the privately-held company to become a publicly-listed company. To that end, Eisbrenner is using the services of Harmony Merger Corp. The listing is meant to ease the fund-raising process for Next Decade’s 27 mpta Rio Grande LNG project that is currently advancing through the FERC permitting process. Tellurian Inc., meanwhile, recently completed a reverse takeover of a small oil and gas exploration firm to gain a Nasdaq-listing that is meant to boost the prospects for Driftwood LNG.


Driftwood LNG aims to raise $200m in Nasdaq listing

Preparing a first share offering, Tellurian in mid-March issued a prospectus proposing to sell shares valued up to $200 million on the Nasdaq Capital Markets stock exchange. Tellurian Inc., developer of the Driftwood LNG project in Louisiana, recently chose SG Americas Securities to provide a financial strategy for the venture. SG Americas is the US broker-dealer subsidiary of France's Societe Generale. Charif Souki, Tellurian founder and ex-Cheniere Energy chairman, completed a reverse takeover in February 2017 to get Tellurian listed in a move to efforts of ease fund-raising. Meg Gentle, president and CEO, said that with SG’s expertise at hand, financial structuring of Driftwood LNG would advance swiftly, hence “we anticipate construction in 2018 and first LNG from Driftwood in 2022.”


CB&I ‘optimistic’ for growth

Philip K. Asherman, President and CEO of US engineering and construction company Chicago Bridge and Iron (CB&I) said he was “optimistic” that stability in commodity prices and major capital programs, particularly in North America and the Middle East, “will result in resumption of substantial backlog growth by mid-year of 2017.” CB&I posted an operating loss of $665.6 million last year but Asherman stressed that all proceeds from the divestiture of the company’s Capital Services business will be spent to reduce debt to optimize the balance sheet. The firms Engineering& Construction (E&C) backlog was $9.9 billion in December 2016 versus $12.8 billion at the end of the previous year.


First gas for Kosmos-BP FLNG Train 1 eyed in 2021

Kosmos Energy is drilling an exploration well with total discovered resource of 25 Tcf of feed-gas. The US firm cooperates with BP on plans to produce LNG floating hulls offshore Senegal and Mauritania; to that end it successfully drilled the Teranga-1 exploration well in 2016. First gas from Kosmos-BP FLNG Train 1 is scheduled for 2021, the company said, and the start of FLNG Train 2 is set for 2023.


Sabine Pass Train 3&4 to come onstream in 2017

Cheniere Energy, owner of the Sabine Pass liquefaction plant in Louisiana, the first US LNG export facility, said transition and execution will remain central themes for Cheniere in 2017. “We expect Trains 3 and 4 at Sabine Pass to begin commercial operations, with Train 3 having produced its first commissioning cargo in January,” Jack Fusco, Cheniere's President and CEO stated when presenting the company’s annual report. Once all six Trains come on stream, Sabine Pass will have a have nameplate capacity of 27 mtpa. Corpus Christi LNG, Cheniere’s second venture on the Texas Gulf Coast, is designed to produce an initial 13.5 mtpa, with Trains 1 and 2 expected “to reach substantial completion in 2019.”