In this issue

 

US LNG developer Tellurian has ended 2021 with more than $300 million in liquidity and over $360 million in discounted future net cash flows of proved gas reserves in Haynesville Shale.…
The Impact Assessment Agency of Canada (IAAC) has made funding available to Canadians and Indigenous groups to participate in the approval process for an LNG export project proposed for Pearse…
• January-February exports at 13.61mmt • Up 0.10mmt (1pct) over November-December period • Shipments up 3.31mmt (32pct) over period year-on-year • Avg. US capacity utilisation at 108pct for report period.
Monday, 07 March 2022
Free ReadPeriod between 01 January 2022 and 28 February 2022, inclusively. Elba Island LNG Elba Island LNG produced flat out and exported a total of six cargoes amounting to 0.42mmt in…
Sky-high European gas demand has caused US LNG exporters to divert cargoes – initially sold to Asian buyers – to northeast Europe. With the start-up of Nord Stream 2 held up…
Fitch Ratings warns of a “highly uncertain” situation in global oil and gas markets as the fast spread of the Omicron variant could result in renewed lockdowns, travel restrictions and…
Free ReadUnphased by record high gas prices and a looming supply shortage, the German regulator BNetzA has halted the approval process of Nord Stream 2 – the controversial Russian interconnector through…
Japan’s largest power plant operator JERA has bought a 25.7% stake in the US liquefaction terminal Freeport LNG together with Global Infrastructure Partners. The deal broadens JERA's gas supply sources…
Siemens Energy has secured a turnkey contract to build GNA II, a 1.7 GW integrated LNG-to-Power plant at Port of Açu, in the Brazilian state of Rio de Janeiro. Customer…
NextDecade, the US developer of the Rio Grande LNG export project along the Brownsville Ship Channel, has confirmed that a final investment decision for the venture would again be delayed,…
Free ReadVegas-based Southwest Gas Holdings is rejecting continued attempts by activist investor Carl Icahn to buy up outstanding stock for $75 per share, calling the move opportunistic and not in the best…
US LNG exports are forecast to be almost 85 percent higher in 2023 than they were in 2020 as nation’s natural gas production increases. “We estimate that US LNG exports…
Coal has staged a surprise return in the global power gen market in the face of sky-high LNG prices, but this phenomenon will be short-lived, the International Energy Agency (IEA)…
Thursday, 13 January 2022
• November-December exports at 13.49mmt • Up 1.27mmt (10pct) over September-October period • Shipments up 1.70mmt (14pct) over period year-on-year • Avg. US capacity utilisation at 107pct for report period

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.