In this issue

 

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…
California-based Sempra Energy has decided to sell its equity interests two utilities in Chile and Peru to focus on its LNG export ventures in North America. Sempra CEO Jeffrey W.…
Britain is strong market for sellers looking to home excess gas supply this winter, National Grid said when announcing a record send-out of its Grain LNG import terminal. A robust…
Free ReadNextDecade Corp. envisages reaching financial close on the 27 mtpa Rio Grande liquefaction and export project in Texas in the third quarter of this year. The project remains subject to…
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.…
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…
Free ReadDevelopment 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,…
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…
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…
Free ReadArgentina’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…
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…
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…
Free ReadUS 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…
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…

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.