In this issue

 

Wednesday, 01 February 2017
Egypt and Jordan joined the LNG-buyers’ club by using an FSRU in 2015, which offers a faster, cheaper alternative to land-based regas terminals. In the long run Egypt will develop…
Uncertainty and speculation about US President Donald Trump’s connection with Russia has been fuelled by his appointment of Rex Tillerson, the former ExxonMobil CEO, as Secretary of State. This choice…
Wednesday, 01 February 2017
Just like Egypt, Jordan’s gas needs far exceed its production and supply from Egypt has been interrupted since a 2011 blast that destroyed the pipeline linking Jordan with Egypt. Looking…
Australia’s Texas LNG, the midscale LNG projects planned for the port of Brownsville, has entered into its second marketing phase after signing up customers from China and Southeast Asia. 
Lake Charles-based 8 mtpa Magnolia LNG, under development in Louisiana, has signed a Heads of Agreement (HoA) with Vessel Gasification Solutions Inc. (VGS) in relation to shipping cargoes to India.…
Is it cheaper to pay for the price spikes of spot LNG cargoes during the winter season or for building new pipelines in New England? That is the key question…
NextDecade, the US project developer run by former Shell executive Kathleen Eisbrenner, has signed land agreements for a 1,000 acres site with deep water access to the Gulf of Mexico…
The Point Comfort near-shore LNG project in Calhoun County, Texas., run by Lloyds Energy Group, has submitted an application to the US Department of Energy (DoE) to export shipments to…
Wednesday, 01 February 2017
Air Products, a leading US LNG equipment maker, has made a takeover approach to Yingde Gases – the largest gas services company in China. With this move, Air Products seeks…
Australia’s Liquefied Natural Gas Ltd, whose ventures include the Magnolia LNG plant in Louisiana and the Bear Head facility planned for Nova Scotia, has been asked by the Australian Securities…
A project aimed at importing liquefied natural gas cargoes into the UK natural gas market at the port of Barrow-in-Furness in Cumbria, northwest England, from Louisiana on the US Gulf…
Swing supply sets the price of oil and significantly influences that of natural gas. Though OPEC members seem to have finally overcome internal rifts and are starting to implement production cuts…
Wednesday, 04 January 2017
To quote an American saying – and President-elect Donald Trump just got lucky with the discovery of the vast Wolfcamp Shale in Texas that holds oil and gas reserves worth…
Manzanillo, a regasification plant at the Mexican Pacific Coast, has recently received a few cargoes from Sabine Pass. Cheniere, having exported it first cargo to Manzanillo in August for $4.23/mmBtu,…

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.