In this issue

 

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…
Despite rising oil prices and production levels U.S. gas fracking companies are continuing to lose money, according to a review of the Institute for Energy Economics and Financial Analysis (IEEFA).…
Following eight years of global economic growth, economists agree a downturn is simply a matter of when and how deep. The worst case scenario, according to Wood Mackenzie, would be…
Free ReadThe spread in natural gas spot prices between the Henry Hub in Louisiana and the Appalachian region continued to narrow over the year just past. Prices fell at Henry Hub…

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.