LNG

In this issue

 

The US Federal Energy Regulatory Commission (FERC) has given the green light to Cameron LNG to build two additional liquefaction Trains and five in total for almost 25 mtpa in…
Within hours of the opening of the first booking period, the Panama Canal Authority (ACP) has filled all 25 available slots. First commercial transit through the expanded Canal is due…
The first cargo of US LNG to head for Europe is expected to land in Portugal. Galp Energy purchased the cargo shipped from Cheniere’s Sabine Pass terminal which is expected…
Passing of “The Energy Policy Modernization Act” in the US Senate by a vote of 85-12 was hailed by LNG project developers as a ‘watershed moment’. The bill will speed…
With the first ever US LNG cargo having set sail from Sabine Pass in February, the share of LNG from North America will continue to grow and is forecast to…
Despite relatively low prices, production of US natural gas production reached a record high level of 79 Bcf/d in 2015, up 5% year-on-year, according to EIA figures. Five states –…
A decline in engineering quality is jeopardizing timely proceedings and project management for new LNG ventures, Neeraj Nandurdikar, analyst at Independent Project Analysis (IPA) of Ashburn told the LNG18 conference.
Not only will Iran’s oil exports rise, once sanctions are untangled, the Islamic Republic is also gearing up to boost natural gas and liquids production. EIA analysts anticipate Iran’s non-crude…
Once sanctions are lifted, Iran aims to sell gas to Persian Gulf states, notably Oman, for export as LNG to global markets. The head of National Iranian Gas Export Co.…
LNG Ltd has received the Federal Energy Regulatory Commission (FERC) authorization to site, construct, and operate facilities to liquefy and export domestically produced natural gas from its Magnolia LNG terminal…
The US Department of Energy (DoE) has granted an authorization to Kansas-based Flint Hills Resources to export around 120,000 gallons per day of LNG over a 20-year period from an…
Supporters of a proposed $6 billion LNG export venture on the Columbia River have decided to call an end to the project, known as Oregon LNG. They told regulators they…
Frustration seems to have given way to open threats as Malaysia’s Petronas has set an ultimatum on March 31, piling pressure on the Canadian federal government to approve the contested…
The 130-acre site of the Dominion Cove Point LNG terminal in Lusby, Maryland, is undergoing a significant transformation. Built in 1978 as a regas terminal, the site is now integrating…

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.