In this issue

 

Petroleos Mexicanos (Pemex), the Mexican oil and gas company, says its 2% month-on-month rise in its natural gas production is aimed at reducing the country’s dependency on pipeline gas and…
Energy trade between Mexico and the United States has undergone massive change. The value of U.S. exports of petroleum products nearly tripled from $10.4 billion in 2008 to a record…
Free ReadGlobal energy majors should take action to help governments promote the use of LNG and clean energy sources to meet national carbon emission targets, says Woodside Petroleum CEO Peter Coleman.…
Considering a future German LNG terminal in Brunsbüttel, northern Germany, local grid operators are seeking to realize the first industrial-scale Power-to-Gas project nearby. Called HySynGas, the project will turn renewable…
Chevron Corp. has pulled out of the bidding battle for Anadarko Petroleum and its Mozambique liquefied natural gas stake and US assets, leaving the way clear for Occidental Petroleum to…
Free ReadCommercial success of the much-delayed Shell-led C$40 billion LNG Canada venture is becoming more and more certain after Japan’s JERA Co Inc. signed a Heads of Agreement (HoA) to offtake…
Chevron’s $33 billion takeover of Anadarko – one of the world’s largest independent oil companies – will boost its lead in the Permian Shale, and grow its midstream and LNG…
Natural gas future prices for May at the U.S. benchmark Henry Hub have firmed to $2.535/MMBtu due to increased demand from the power sector and for feedgas from a growing…
The U.S. Energy Information Administration (EIA) expects natural gas prices at the benchmark Henry Hub will fall to an average $2.82/MMBtu this year, and decline further in 2020. The bearish…
Free ReadThe International Finance Corporation (IFC), a multilateral development agency and part of the World Bank Group, has said it provided a 15-year loan over $228 million to fund LNG-to Power…
The French energy major Total has signed two Heads of Agreements (HoA) with Tellurian Inc., the developer of the Driftwood LNG project in Louisiana, committing to invest in Driftwood Holdings…
Sempra Energy has at last seen progress in the commissioning of its Cameron LNG project, a former regas terminal being transformed into a liquefaction and export terminal. Feed-gas is now…
NextDecade, the developer of the Rio Grande LNG project in Texas, has signed an innovative 20-year sale and purchase agreement (SPA) with Shell. Around three-quarters of the purchased LNG volumes…
Free ReadStriving to remove perceived export barriers, three U.S. Senators have reintroduced the License Natural Gas (LNG) Now Act. It is aimed at revamping the current system put in place by…

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.