In this issue

 

Edge Gathering Virtual Pipelines 2, better known as Edge LNG, has been selected by EXCO Resources to capture and liquefy gas from a stranded well in the Marcellus Shale. The…
Free ReadGlenfarne, a privately held energy infrastructure firm, has agreed to buy Magnolia LNG from its parent, Australia's LNG Ltd, for $2.25 million, according to the voluntary administrators appointed to review…
The Vietnamese government has welcomed ExxonMobil’s plan to invest in the country’s energy infrastructure. The U.S. oil major is looking to set up an LNG-to-Power generation supply chain with a…
U.S. Energy Information Administration (EIA) expects a rebound in Henry Hub spot gas prices due to falling production in the Appalachian and Permian Shale, where low oil prices led to…
The 2020 US natural gas storage refill season (April 1 - October 31) has started out strong, exceeded 100 Bcf in four out of the past six weeks. “No other…
Free ReadThough travel restrictions are still in place in the Dominican Republic to contain the coronavirus, Siemens is striving to deliver a barge-mounted power plant, based on SGT-800 gas turbine, on…
Golar Power’s 1.5 GW Sergipe power project in Brazil has received Commercial Operation Date (COD) acceptance which triggers the start of earnings under a 25-year Power Purchase Agreement (PPA) and…
The public regulator in Massachusetts investigates whether the Boston Everett LNG import terminal might have to close, given that the U.S. northeastern state wants to phase out all fossil power…
Free ReadThe California Energy Commission has withdrawn the license for the Palmdale Energy Project, just north of Los Angeles, after the developer Palmdale Energy signaled it was unable to secure a…
Thursday, 02 July 2020
May - June exports at 5.81mmt on 30th June Significant month-on-month drop of 1.41mmt (-39%) in June Total shipments down marginally over same two-month period last year Avg. US capacity…
As markets reel from the coronavirus crisis, prices available to oil and associated gas producers have fallen to single digits in Western Canada and turned negative in parts of North…
Free ReadThough China’s economy and gas demand is picking up, the coronavirus pandemic chocked energy consumption elsewhere. Delivered gas prices into Northeast Asia today fell below $2.40/MMBtu, hence Wood Mackenzie warns…
Debt financiers of U.S. fracking firms are preparing to directly manage distressed energy assets to avoid debt write-offs in the event of bankruptcies. Bank of America, Citigroup, JP Morgan Chase…
OPEC producers and Russia, supported by the U.S. and Mexico, have agreed to cut output by about 10%, or 9.7 million barrels per day, after demand slumped due to coronavirus…

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.