In this issue

 

Steelhead LNG, developer of the near-shore export plant on Vancouver Island, is investigating the pipeline route to bring feed-gas from the Chetwynd area of northeast British Columbia to Sarita Bay. Plans are to build a LNG export facility with initial capacity of 12 mtpa, requiring 1.9 Bcf/d of feed-gas.

Houston-based Kinder Morgan has touted it will supply up to 40% of the gas volumes for future U.S. LNG and pipeline exports, and stays on schedule to start up its own small-scale LNG export venture at Elba Island, Georgia, in Q1-2019.

Development banks of Brazil and Germany, BNDES and KfW Ipex-Bank, have agreed a corporate financing deal worth R$1.76 billion ($471m) for an LNG-fuelled power project at the port of Açu, Brazil. The financing covers 39% of the total project costs of R$4.5 billion, with the 1.3 GW plant to be built by Prumo Logística and Siemens. 

SeaFloat, a barge-mounted power plant based on SGT-800 gas turbine, will be provided by Siemens and the maritime arm of ST Engineering for Bermuda-based Seaboard Corp. The 145 MW power barge, dubbed Estrella del Mar III, will supply the Dominican Republic with electricity at a lower cost than a land-based plant staring from spring 2021. 

The US Department of Energy (DOE) has eased reporting mandates for liquefied natural gas exporters that would keep track of the ultimate end-user of the natural gas shipped overseas. It had become apparent, the DOE said, that it was “impracticable, if not impossible” for exporters to comply with the end-use reporting requirement.

Argentina’s LNG export aspirations may soon be a reality as Exmar, the Belgian shipping firm, has entered a 10-year charter with YPF to deploy a floating LNG liquefaction vessel at Bahia Blanca, about 400 miles south of Buenos Aires. Operations are scheduled to start in Q2-2019, for the first cargo to set sail before year-end. The Exmar FLNG barge is expected to be a quicker route-to-market for excess production from the prolific Vaca Muerta shale gas field than a rival FLNG venture, under evaluation by Transportadora de Gas del Sur (TDS) and Excelerate. 

Wednesday, 02 January 2019

Strong, sustained growth in U.S. gas production is putting downward pressure on Henry Hub spot and futures prices. Dry gas production increased to 83.3 Bcf/d in 2018, according to figures by the U.S. Energy Information Administration (EIA), which forecasts a subsequent fall in Henry Hub spot gas prices to $3.11/MMBtu on average in 2019. 

Tellurian, the US LNG developer founded by ex-Cheniere CEO Charif Souki, has sealed a preliminary deal with Vitol to supply 1.5 mtpa of LNG cargoes for 15 years. The accord is for volumes from the Driftwood project, proposed for the Gulf Coast of Louisiana.

US LNG exports could reach 60 mtpa by the end of 2019, making the Americans the world’s third-largest exporters. Both Cameron LNG in Louisiana and Freeport LNG in Texas are currently being commissioned. The first LNG production from these facilities is expected in the first half of 2019.

SeaFloat, a barge-mounted power plant based on SGT-800 gas turbine, will be provided by Siemens and the maritime arm of ST Engineering for Bermuda-based Seaboard Corp. The 450 MW power barge, dubbed Estrella del Mar III, will supply the Dominican Republic with electricity at a lower cost than a land-based plant staring from spring 2021. 

Boosting upstream investment, Chevron has set aside $3.6 billion for fracking in the Permian Basin out of a total $20 billion of capital spending in 2019. The decision comes as U.S. recoverable shale oil and gas reserves have been assessed at a record high. 

Wednesday, 02 January 2019

As the world’s top oil company, ExxonMobil does not need to worry about size when it comes to snapping up assets. The Texas-based oil giant is tipped as a potential buyer of Endeavor Energy Resources, the largest privately-held oil and gas producer in the U.S. Permian basin – a takeover could cost over $10 billion. 

Hit by a triple-whammy of weak cash flows, meager profits and slumping stock values, CEOs in the oil and gas industry are vary about continuing to invest in increasingly risky fossil fuels. Looking for a quick return, investors want oil majors to prioritize profits over production growth. Some refocus on electricity markets. 

Despite the drop in rig count, the actual output of crude oil and natural gas keeps rising in the United States thanks to advances in technology and drilling techniques. Even with fewer wells U.S. natural gas gross withdrawals increased from about 78.7 billion cubic feet per day (Bcf/d) to 83.4 Bcf/d.

News Nudges

FERC ends plans for Puerto Rico LNG expansion

“Aguirre Offshore GasPort requests that FERC vacate its 2015 order authorizing the construction and operation of LNG import terminal facilities along the southern shore of the Commonwealth of Puerto Rico near the municipality of Salinas,” FERC said, adding: “In its request to vacate, Aguirre stated that it no longer intends to proceed with the project, that no construction has been undertaken, and that no facilities are in service.” The Aguirre project company filed its last status report in June 2018 to the regulator to keep its permit process up to date, but later gave notice that the venture was not proceeding. The FERC notice has finally pulls the curtain down for now on plans for LNG expansion in Puerto Rico. Excelerate Energy had previously agreed to provide a floating storage and regasification unit (FSRU) for the Aguirre project in 2019, but was forced to cancel its contract with the bankrupt Puerto Rico Electric Power Authority. The FSRU was to have been deployed offshore Salinas and would also have had a 6.4 kilometres pipeline to provide regasified LNG to the Aguirre power station.