In this issue

 

New Fortress Energy (NFE) has chartered the floating storage and regasification unit (FRSU) ‘Höegh Gallant’ from New York-listed Höegh LNG Partners for a period of 10 years from the fourth…
Trinidad and Tobago, the Caribbean nation shipping cargoes from the Atlantic LNG facility at Point Fortin in Trinidad, will have access to more natural gas after UK major BP brought…
Liquefaction demand at US terminals will stay strong through end-October, given that Henry Hub gas prices for the winter strip (November-March 2022) are approaching $5 per million British thermal unit…
Free ReadDespite rising prices for the six US liquefaction and export plants, China and Brazil remain the top destinations for US LNG shipments. Data from the Department of Energy (DoE) shows 97…
The Peru LNG export plant at Pampa Melchorita on the Pacific Coast had just re-started shipping cargoes in September after a two-and-a-half month shutdown for technical issues. Now, it has…
Japan’s largest utility JERA, along with Mitsui and partners, has agreed to sell its entire stake in the Mexican power plant operator MT Falcon Holdings to the British investment fund…
Free ReadVenture Global’s Calcasieu Pass LNG export project has filed its monthly construction report to regulators showing sub-stantial progress as the facility aims to be the next large US LNG export…
Commonwealth LNG, the export venture proposed for Cameron Parish in the US Gulf Coast state of Louisiana, has been informed by the Federal Energy Regulatory Commission of the launch of…
Thursday, 07 October 2021
• August-September exports at 11.83mmt • Up 0.21mmt (2pct) over June-July period • Shipments up 6.74mmt (132pct) over period year-on-year • Avg. US capacity utilisation at 94pct for report period
Thursday, 07 October 2021
Free ReadPeriod between 01 August and 30 September 2021, inclusively. Elba Island LNG Elba Island LNG exported five cargoes amounting to 0.29mmt in August and September, broadly steady in volume terms…
Commissioning is underway for Nord Stream 2 and once the pipeline starts up in late August, or early September, cheap Russian gas supply will likely reduce US LNG exports to…
Natural gas spot price at the US bellwether Henry Hub keeps rising amid growing LNG exports and higher gas industrial consumption. Analysts expect spot prices to reach $2.92 per MMBtu in…
Peak summer LNG shipments to Taiwan has surged due to an earlier-than expected shutdown of the first 990 MW unit at the Kuosheng nuclear power plant, with monthly LNG imports…
Free ReadArgentina’s seasonal LNG imports are increasing following the arrival of Excelerate’s FSRU Exemplar at Bahia Blanca, just south of Buenos Aires. The first commissioning cargo already arrived at the FSRU…

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.