In this issue

 

Restart of operations at Freeport LNG in early November will bring some relief to tight European gas markets as utility buyers seek to keep the lights on this winter. Freeport…
Free ReadBuyers’ quest for US LNG has slowed down markedly from a highpoint in July, when 14 formal and tentative offtake agreements were sealed, as rampant inflation and rising interest rates are…
America gears up to become Europe’s top gas supplier, covering 40 percent of the bloc’s future gas demand. Assuming no gas trade between Russia and the EU, up to 136…
Though Canada agreed to export green hydrogen to Germany, Chancellor Olaf Scholz does not want to give up the option of building LNG terminals on the Canadian Atlantic coast within…
Free ReadRestrictions on Russian gas exports have accelerated US LNG projects: Spending on greenfield LNG projects totalled $27 billion this year and will peak at $42 billion in 2024, Rystad Energy…
On cold winter days, New England imports LNG when key pipelines freeze up but shipments of the pricy super-chilled fuel increasingly get displaced by domestic dry gas and Canadian gas.…
US utilities keep burning more gas to produce electricity despite a stark rise in fuel prices, limiting volumes available for liquefaction and export.
Monday, 03 October 2022
Free Read• August-September exports at 12.47mmt at time of writing • Down 1.41mmt (-10pct) over May-June period • Shipments up 0.67mmt (6pct) over period year-on-year • Avg. US capacity utilisation at 87pct for reporting…
Monday, 03 October 2022
Period between 01 August 2022 and 29 September 2022, inclusively. 
US oil major Chevron has taken steps to boosts its position in global LNG trading, having just signed cargo supply agreements with Cheniere Energy and newcomer Venture Global. With the latter,…
US government analysts expect natural gas spot prices to rise again this month and stay high through the rest of 2022 due to low inventories and higher gas-burn in the…
Free ReadTarga Resources Corp., one of the largest US independent midstream infrastructure companies, has agreed to acquire Lucid Energy, a natural gas gathering and processing services company in the Delaware Basin…
Venture Global LNG, owner of the newest US export plant at Calcasieu Pass in Louisiana and with three other projects in development, has signed two long-term supply agreements with a…
Pressure is building up to close down Russian oil, gas and coal deliveries to Europe, worth an estimated $150 billion in 2021 and over $500 million each day so far…

News Nudges

Dark clouds hang over Driftwood LNG

Doubts are cast on Tellurian’s ability to complete the Driftwood LNG project on time, or at all, after the company withdrew a proposed public offering which could have raise $1 billion, and later cancelled two sales agreements (SPAs) with Shell and Vitol. CEO Octávio Simões said the public offering was called off due to “uncertain conditions in the high-yield market.” Instead, Tellurian is now looking for equity partners to help finance the project. “The potential corporate and strategic partners we are seeking may want liquefied natural gas volumes that they can sell globally and now we have some capacity to offer that option,” he said. The search for new partners may slow down the project. “It sets us back, definitely. It puts in jeopardy the ability to deliver gas on the schedule that we were hoping to stick to,” explained Chairman Souki. In another blow, Tellurian said that three SPAs covering offtake from Driftwood had been terminated: notable two 3 mtpa deals with Shell and one with Vitol for the same amount. Shell ended its SPAs, while the Vitol agreement was cancelled by Tellurian, according to a regulatory filing. Construction on Driftwood LNG is progressing, funded by Tellurian’s cash and operating cash flow – notably from the Haynesville shale gas sale. CEO Simões also aims to raise $1 billion by selling bonds but the main focus is now to find a strategic investor for the $12 billion project, planned to be operational in 2026 and with regulatory approvals for 27.6 mtpa of output.