In this issue

 

All eyes are on China’s economic and energy demand growth. But with the U.S. election looming large in November, it is unlikely that President Trump will facilitate real breakthroughs on…
Free ReadLawmakers in the U.S. Congress are preparing to hit European investors in the Nord Stream 2 pipeline with a new set of sanctions in an effort to derail the project…
Natural gas prices at Henry Hub are forecast to stay lower than $4 per million British thermal units (MMBtu) through 2050 amid an abundance of low-cost resources, primarily in the…
Growth in exports of U.S. gas production will nearly double over the next two years, as new liquefaction facilities are placed in service and new gas interconnectors to Mexico begin…
Stranded gas wells at the Marcellus Basin in Pennsylvania, U.S., are being tapped via mobile trailor-mounted liquefaction units. Initial operations were launched and are set to last until at least…
Free ReadRail tankers will soon transport LNG to power generators across the United States, as the regulator seeks to advance the use of this cleaner-burning fuel in decentralized location like the…
The Federal Energy Regulatory Commission (FERC) has refused re-hearing requests from environmental groups for the rehearing of its orders authorizing construction and operation of the Texas LNG Brownsville and Annova…
Sempra Energy's Mexican subsidiary IEnova has seen fourth quarter earnings rise 22 percent to $253.4 million as the South Texas-Tuxpan pipeline went in service. However, these gains were partially offset…
Free ReadNew Fortress Energy (NFE), the owner of LNG facilities in Florida and in Jamaica and projects in Puerto Rico and the US northeast, said it signed a long-term LNG supply…
Monday, 02 March 2020
January - February exports at 9.06mmt on 27 February Total shipments more than doubled over same period last year US capacity utilisation at 97% overall US LNG exports for the…
Elba Island LNG Elba LNG shipped has shipped two cargoes totalling 0.12mmt since the beginning of January, pegging capacity utilisation at 64%. However, these shipments concentrated on January, with February…
Free ReadShell Eastern Trading will be the first supplier of LNG cargoes to Hong Kong for use in the 2.5 Gigawatt Black Point and 3.7 GW Lamma Island Power Stations. Under…
Global market are flush with new supply from the latest round of US LNG project build-out, but the prevailing ‘tolling’ model makes offtaker exposed to a significant downside risk. LNG…
The latest U.S. Government Short-Term Energy Outlook (STEO) anticipates natural gas production will grow much less in 2020 because of the lag between changes in price and changes in future…

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.