In this issue

 

Strong seasonal rise in freight rates is unlikely to happen this autumn, as sustained outages at Sempra Energy’s Cameron LNG terminal in Louisiana and at Gorgon LNG Train-2 have caused…
Free ReadUS billionaire investor Warren Buffett is expected to take control of Dominion Energy’s Cove Point LNG export plant in Maryland around November 1, 2020. In return, Dominion will receive about…
Spot price differentials between regional U.S. gas trading hub and the benchmark Henry Hub have narrowed in the first half of 2020 amid lower production and a Covid-19-related plunge in…
Making new pitches to investors, Tellurian Inc. forecasts that 100 million tonnes per annum of additional construction is needed because of LNG capacity constraints by 2021 as demand increases. Market…
Plans for debut trading in Hygo Energy at the US stock exchange NASDAQ have been shelved amid corruption allegations against the company’s CEO Eduardo Antonello. Hygo, a joint venture between…
Free ReadThe Brazilian lower house of the National Congress has approved a bill to further open up the natural gas and LNG terminal market to private competition and break the monopoly…
U.S. liquefaction plant developer Venture Global sees LNG-fuelled power generation as “a counter” to China’s building spree of new coal power units. By turning to LNG, utilities can “regain control…
Fossil fuels will make up 54 percent of the world’s primary energy supply in 2025, and much of this supply will come from natural gas, as it becomes the world’s…
Free ReadSingapore-based Keppel Shipyard has been contracted to convert an LNG carrier to a floating storage and regasification unit (FSRU) for use at El Salvador’s first LNG-to-power project. The FRSU will…
Though travel restrictions are still in place in the Dominican Republic to contain the coronavirus, Siemens is striving to deliver a barge-mounted power plant, based on SGT-800 gas turbine, on…
Monday, 05 October 2020
July - September exports totalling 6.95mmt on 30th September.  Significant month-on-month growth of 0.54mmt (24 pct) in September.  Total shipments down significantly over same three-month period last year.  Avg. US…
Monday, 05 October 2020
At the time of writing, 37 cargoes (2.48mmt) shipped since mid-August remain in transit, with 15 (0.99mmt) still lacking confirmed destinations within the Pacific and Atlantic Basins.
Free ReadElba Island LNG Elba Island LNG has exported a rare cargo in late August, its first since January this year. The 0.07mmt cargo aboard the Maran Gas Hector arrived at…
This summer, the Covid-19 pandemic is driving a global contraction in LNG deliveries – the first seasonal contraction in eight years. US LNG exports are particularly hard hit, with nearly…

News Nudges

Tellurian’s LNG supply accord with India’s Petronet lapses

Tellurian Inc., the developer of the Driftwood LNG plant in Louisiana, has confirmed that a memorandum with Petronet LNG has lapsed. Though the MOU was not renewed when it expired at the end of May, Tellurian stressed, talks with the Indian company were continuing. Tellurian’s accord with Petronet, first signed in Houston in September 2019, covered a possible equity investment in the project of up to $2.5 billion as well as 5 mtpa of supplies. It was seen as a landmark deal for Driftwood LNG to reach FID on the proposed 26 mtpa project on the west bank of the Calcasieu River. However, the Petronet-Tellurian agreement suffered its first setback in February 2020 when it was announced that the informal agreement would become a formal transaction by the start of June 2020. Driftwood LNG still has other supply agreements in place with Total and the global commodities trading house Vitol. As a principal investor, Total agreed to purchase 1 mtpa of LNG from Tellurian ventures and an additional 1.5 mtpa from Tellurian’s offtake volumes from Driftwood. Total's aggregate investment in the Tellurian portfolio will be around $907 million once a FID will be taken, though this looks likely to be delayed. Construction for the Driftwood plant has already been contracted to Bechtel.