In this issue

 

Chevron Corp., a leading LNG exporter and operator of liquefaction projects in Africa and Australia, has no plans to reduce its oil and gas business in favour of wind and…
Monday, 05 July 2021
• May-June exports at 12.17mmt • Down 0.41mmt (-3pct) over March-April period • Shipments up 6.32mmt (108pct) over period year-on-year • Avg. US capacity utilisation at 97pct for report period
Monday, 05 July 2021
Free ReadPeriod between 1 May and 30 June, inclusively. Elba Island LNG Elba Island LNG exported five cargoes amounting to 0.36mmt in May and June, broadly steady in volume terms compared…
Prospect of dwindling production from Argentina’s Vaca Muerta shale will likely spark a rise in US LNG imports over the coming months to build up reserve prior to the heating…
Flex LNG, the Norwegian shipowner with a fleet of 12 modern vessels, has signed charters with Cheniere Energy of the US, for at least four of its carriers, and with…
The American Bureau of Shipping, the US classification society, has held its annual meeting of members in Houston and recalled a past year of success.
Free ReadThe US Department of Energy has just published its latest LNG export data with the average overall price for the six plants rising with deliveries concentrated on Europe, including the…
WhiteWater Midstream is holding an open season for up to 2 billion cubic feet (Bcf) of firm storage capacity at the Waha Gas Storage in Texas. The bidding process started…
Tellurian Inc., the developer of the US Driftwood LNG export plant in Louisiana, has resumed drilling in the Haynesville Shale basin and considers buying more acreage. Executive chairman Charif Souki…
Free ReadJack Fusco, President and CEO of Cheniere Energy, said global LNG demand was still „very high“ and the North Hemisphere summer slowdown was being offset by South American nations seeking…
Firmer prices at Henry Hub have reduced the gas use for power generation in the United States, but government analysts forecast an increase in natural gas consumption, including for LNG…
The US economy has been badly hit by the Covid-19 pandemic, with gas consumption in 2020 falling to 1.9 Bcf per day below the 2019 high of 85.1 Bcf/d. Analysts…
NextDecade Corp., the developer of the US Rio Grande LNG export project, has signed an agreement with Mitsubishi Heavy Industries of Japan to install post-combustion carbon-capture technology at the facility…
Free ReadNew Fortress Energy (NFE) has agreed to supply the Mexican state-owned power producer CFE with the equivalent of 20,000-40,000 million British thermal units (MMBtu) of LNG via an import terminal,…

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.