LNG

In this issue

 

Energy Transfer and Shell plan to move towards a potential final investment decision on the 50-50 joint venture and have started seeking engineering, procurement and construction (EPC) companies, while intending…
Free ReadThe U.S. Federal Energy Regulatory Commission (FERC) has delivered a final environmental impact statement for the Texas LNG export project, giving the green light for proposed project in the Port…
Optimism has been expressed by Peter Altmaier, the German economy minister, that two regasification terminals will be built on the northern Germany coastline “in the foreseeable future” to enable LNG…
Though no firm offtake agreement is in place, Qatar Petroleum and ExxonMobil have taken FID on their 15.2 mtpa Golden Pass LNG venture and announced they will jointly invest over…
Free ReadNatural gas will become the fastest-growing energy source in the coming decades, displacing coal as a fuel for power plants and heavy industries, Royal Dutch Shell said in its 2019…
Pieridae Energy, developer of the German-backed Goldboro LNG export project in the Canadian province of Nova Scotia, has entered into agreements for a private placement of shares with a group…
Steelhead LNG has stopped construction on the Kwispaa LNG project in Sarita Bay on Vancouver Island’s west coast, casting doubt on the future of the joint venture. Developers said the…
Free ReadMexico’s state-run electric utility Comisión Federal de Electricidad (CFE) is aiming to renegotiate take-or-pay clauses it had agreed with North American gas pipeline developers, including TransCanada and Sempra’s IEnova. CFE…
Rapidly evolving exports of LNG and liquid fuels will turn the United States into a net energy exporter next year. As gas demand grows in Asia and Henry Hub prices…
Seasonal imports of LNG help meet peakload gas demand in New England’s industrial and power sector. During a freeze in the first week of February, more than 800,000 million cubic…
Free ReadThough trade tensions with the U.S. affected China’s GDP figures in the fourth quarter, demand growth in China’s gas and electricity sector is still “phenomenal,” Wood Mackenzie says. Total electricity…
Pembina Pipeline Corp., the Canadian owner of the Jordan Cove LNG export project reported progress on the US liquefaction venture and expects a decision from the U.S. federal energy regulator…
US regulators are advancing with the Pointe LNG project proposed for the East Bank of the Mississippi River, which would be the second riverbank export facility in the south of…
Free Read2019 could be a ‘year of incongruity’, as developers are rushing to reach financial close on an array of LNG export projects despite a backdrop of a market tipping into…

News Nudges

Chesapeake suspends dividends and hires debt advisors

Chesapeake Energy has slashed payment of dividends to zero. The Oklahoma-based oil and gas developer had started this year with $8.92 billion in debt but stressed the suspension of dividends does not imply it will default under any of the company's debt instruments. Whiting Petroleum became the first U.S. upstream company to file for bankruptcy on April 1. Others are not far off, notable Chesapeake Energy and Denbury Resources which are understood to have hired debt advisors. Chesapeake is struggling with a debt burden of nearly $9 billion, up 900 million from the previous year due to the acquisition of Wildhorse Resource Development. The risk of bankruptcies looms large among U.S. fracking companies which struggle with demand destruction as the coronavirus pandemic has brought major economies worldwide to a halt. Gradual relaxation of lockdowns and an agreement of OPEC+ to reduce oil production are hoped to lift prices starting from the second quarter.


Magnolia LNG faces financial crunch

The Australian-listed developer of the US Magnolia export plant in Louisiana with an agreement to supply cargoes to Vietnam said a takeover bid by a Singapore-based private company has been pushed back to mid-April, while its own temporary financing is not now forthcoming from a US equity and capital fund. “LNGL’s existing funding is sufficient to meet all of LNGL’s commitments until late April 2020, but LNGL needs to secure additional funding urgently to continue operating beyond then,” the company disclosed. LNG Ltd, which is also developing the Bear Head LNG project in the Canadian province of Nova Scotia, said the formal bid would now be lodged in several weeks at the Australian Securities and Investments Commission (ASIC) regulator and then dispatched to shareholders by late April 2020. “The delay from the indicative timeline in the Bid Implementation Agreement is principally due to challenges from and the unavailability of relevant personnel as a result of the global impact of COVID-19,” said LNGL. LNGL added that it would now issue its target’s statement as soon as practicable (and no later than 15 days) after the bidder’s statement from the unnamed Singapore entity, known only as LNG9 Pte Ltd, goes to shareholders.