In this issue

 

Canada’s first export of LNG is understood to be soon heading overseas from a port in Louisiana. Cheniere Energy is considering the liquefaction and export of natural gas sources as…
Vivek Chandra and Langtry Meyer, co-founders of the Texas LNG Brownsville project have selected Samsung Engineering and KBR to provide a detailed engineering report – as the basis for deciding…
Monday, 03 April 2017
Cleveland-based Chart Industries Inc. is about to carry out a series of management changes as part of a wider succession plan that will also see its corporate headquarters move to…
A bipartisan bill, launched by US Congressman John Garamendi (D – CA), calls for up to 30 percent of exports for liquefied natural gas and crude oil to be transported…
‘Vaca Muerta’, Spanish for ‘Dead Cow’, is the name of a pilot shale gas project in Argentina’s Neuquen province that Shell agreed to develop together with the state energy company,…
Reversing last year’s slight drop, the production of US dry natural gas is seen average 73.7 billion cubic feet per day (Bcf/d) in 2017, a rise of 1.4 Bcf/d year-on-year…
Reluctance of buyers to commit to sign firm offtake agreements with project developers due to the abundance of supply has inevitable consequences, with today over 80% of new-build capacity being…
Grappling with opposing signals on gas supply security, the state of California and energy companies are starting to embrace a “new level of resourcefulness,” says Callie Kolbe, analyst at Point…
British Petroleum (BP) agreed to collaborate with Alaska LNG project partners and set out terms for a tolling structure with a view to attract project financing. An accord to that…
Dwindling resources in Trinidad & Tobago – once a stalwart LNG exporter – combined with attacks on Nigeria’s gas export infrastructure, have cut short supply into the Atlantic Basin. This…
Investors fear that a proposed US border adjustment tax could slam earnings of oil and gas companies in the Canadian province of Alberta. Industry leaders are wary about a possible…
Spain is expected to take the lion’s share of US LNG in Europe as Gas Natural has started to offtake more cargoes on a regular basis in 2017, according to…
With global LNG markets poised to see around a third in LNG supply growth over the next five years – the next wave of supply will be slowly forthcoming. Spencer…
SK E&S, a leading South Korean gas and power company, has become the frontrunner in burning imported shale gas from the United States to generate electricity at its 1,800 MW…

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.