In this issue

 

US equity fund Kohlberg Kravis Roberts (KKR), alongside Alberta Investment, has sealed a deal to purchase a 65 percent equity interest in the Coastal GasLink Pipeline. Spanning over 416 miles,…
Free ReadFreeport LNG in mid-December shipped its first cargo from the second liquefaction Train at the export facility on Quintana Island in Texas. The cargo was apparently lifted by the 138,000…
American oil and gas producers are shying away from building major pipelines in the Appalachian Shale as production has slowed down in the current low-price environment. “No exit pipelines will…
A flurry of pipeline projects has been proposed throughout the United States. The U.S. government counts 134 active projects but only 46 entered service this year, adding 16-17 billion cubic…
Petronet, the operator of India’s Dahei and Kochi LNG import terminals, has managed to push down the price for LNG cargoes from North America. Houston-based Tellurian Inc agreed to deliver…
Free ReadAtlantic basin LNG producers, notably at the US Gulf Coast, can achieve a better netback value at the Spanish Virtual Balancing Point (PVB) than elsewhere in Europe. However, offtake obligations…
Shipments of LNG from Cheniere’s Sabine Pass liquefaction and export facility in Louisiana were sold at prices as low as $4.27 per million British thermal units (MMBtu) this year, notching…
Rampant US gas supply has been outpacing demand growth for the past year, slashing prices in Europe and Asia. Some US exporters are considering shutting in production as record low…
Free ReadU.S. dry gas production will rise to an all-time high of 91.63 billion cubic feet per day (bcfd) this year, the U.S. Energy Information Administration (EIA) said, forecasting a fall…
The Center for Liquefied Natural Gas, a US industry group, expects five export projects along the U.S. Gulf Coast will take a final investment decisions in the next 12 months,…
Sempra Energy’s Cameron LNG export plant in Louisiana has received regulatory permission to start commissioning the second processing Train at the facility on the Calcasieu Ship Channel and commercial operations…
Golar Power is moving ahead with an integrated LNG-to-Power project in Brazil’s northern state of Para, after securing a 25-year power purchase agreement (PPA) from the Brazilian authorities. The 605…
Free ReadAustralian-listed LNG Ltd, developer of the Magnolia LNG project in Louisiana, is striving to sign a full sales and purchase agreement (SPA) with Delta Offshore Energy. The first LNG cargo…
Flows of natural gas from the Appalachian Shale Basin to the rest of the U.S. keeps growing as production averaged over 16 billion cubic feet per day last month, pushing…

News Nudges

Tellurian’s LNG supply accord with India’s Petronet lapses

Tellurian Inc., the developer of the Driftwood LNG plant in Louisiana, has confirmed that a memorandum with Petronet LNG has lapsed. Though the MOU was not renewed when it expired at the end of May, Tellurian stressed, talks with the Indian company were continuing. Tellurian’s accord with Petronet, first signed in Houston in September 2019, covered a possible equity investment in the project of up to $2.5 billion as well as 5 mtpa of supplies. It was seen as a landmark deal for Driftwood LNG to reach FID on the proposed 26 mtpa project on the west bank of the Calcasieu River. However, the Petronet-Tellurian agreement suffered its first setback in February 2020 when it was announced that the informal agreement would become a formal transaction by the start of June 2020. Driftwood LNG still has other supply agreements in place with Total and the global commodities trading house Vitol. As a principal investor, Total agreed to purchase 1 mtpa of LNG from Tellurian ventures and an additional 1.5 mtpa from Tellurian’s offtake volumes from Driftwood. Total's aggregate investment in the Tellurian portfolio will be around $907 million once a FID will be taken, though this looks likely to be delayed. Construction for the Driftwood plant has already been contracted to Bechtel.