In this issue

 

Tuesday, 05 July 2022
Free ReadPeriod between 01 May 2022 and 29 June 2022, inclusively.  Elba Island LNG Elba Island LNG reduced utilisation from full-scale in March-April to 75pct in May-June to date. Elba Island’s…
Fitch Rating anticipates more US LNG cargoes will continue to be shipped to Europe as higher netbacks earned here than in China make cargo diversions “more competitive”, while more liquefaction capacity…
The French utility Engie has agreed to purchase 1.75 million tons per annum of LNG on a free-on-board basis from NextDecade’s Rio Grande LNG export project on the Brownsville Ship…
Energy Transfer, owner of assets in the Permian Basin and Haynesville Shale, has signed supply accord with the global commodities trader Gunvor for 2 mtpa from the Lake Charles LNG…
Free ReadMore than 900 drilling permits for new horizontal wells have recently been awarded in the Permian Basin, spurred by high oil prices. “This is a clear signal that operators in…
Adding no interstate gas pipeline capacity in the United States through to 2050 risks to severely limit gas flows from the Appalachia production region to the Midwest.
El Salvador has imported its maiden LNG cargo in early April when Shell shipped roughly 0.06 million tons of super-chilled gas to FSRU Tatjana near the Port of Acajutla. The…
Free ReadWoodfibre LNG, the mid-scale project near the town of Squamish in British Columbia, has issued a notice to proceed to US engineering contractor McDermott to move the projects towards major…
Carbon capture and storage (CCS) will substantially curtail the carbon footprint of future LNG projects. LNG players in the US, who benefit from the 45Q tax credit, will likely be…
Helmerich & Payne (H&P), North America’s largest land drilling solutions provider, have invested $33 million into Galileo to use their technology on drill pads. Galilieo’s technology can capture natural gas…
Monday, 09 May 2022
• March-April exports at 14.7mmt  • Up 0.88mmt (6pct) over January-February period • Shipments up 1.88mmt (15pct) over period year-on-year • Avg. US capacity utilisation at 117pct for report period 
Monday, 09 May 2022
Free ReadPeriod between 01 March 2022 and 30 April 2022, inclusively. Elba Island LNG Elba Island LNG produced flat out and exported a total of six cargoes amounting to 0.45mmt in…
Venture Global has set the pace for how quickly new US LNG export capacity can come to market. The 10 million tons of LNG per annum Calcasieu Pass project in…
By 2050, approximately 25 percent more natural gas will be produced than consumed in the United States, according to government projections. However, more than 35 percent of gross additions will…

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.