In this issue

 

Florida-based Eagle LNG has announced it started the construction of its Florida liquefaction plant in the port city of Jacksonville to supply the marine fuels market and other sectors from…
Dredging works are progressing at Freeport LNG to accommodate a second ship dock. Works began in early February 2016 and once completed in 2018, the Freeport facility will be able…
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…

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.