In this issue

 

The developer of the Driftwood LNG export plant in Louisiana is still awaiting new investors to take stakes in the delayed venture since Indian company Petronet LNG withdrew as a…
Free ReadIt has become clear that the German government was ready to pay over €1 million to the Trump administration to avert US sanctions and proceed with construction of the Nord…
Fitch Ratings has warned fossil fuel exporters face a growing risk of loss of GDP, government revenue and export receipts as more upstream assets are downgraded, or become stranded, as…
Though ExxonMobil had to write down billions on its American gas assets, the oil major seeks to boost profits from its Permian Basin shale activities. “In 2020, capital expenditures in…
Cheniere Energy, the largest US LNG exporter from the Sabine Pass plant in Louisiana and the Corpus Christi facility in Texas, said the global LNG market had strengthened significantly in…
Free ReadUS pipeline operator Kinder Morgan said a minority stake of 25 percent had been sold in the 9,000-mile Natural Gas Pipeline Company of America, which supplies city gas to Chicago…
Modelling how fast US energy demand will recover after the pandemic, analysts say the consumption of natural gas will increase faster than other fossil fuels. Electricity use is expected to…
The US Energy Information Administration (EIA) expects crude oil prices to rise from $50 per barrel in December 2020 to $56/bbl in the first quarter of 2021, caused by demand…
Free ReadCorpus Christi Liquefaction, the Cheniere Energy subsidiary operating the export plant in Texas, has asked the Federal Energy Regulatory Commission to start full commercial service from the third LNG Train…
NextDecade, developer of the Rio Grande liquefied natural LNG export project in Texas, has decided not to proceed with another venture called Galveston Bay LNG because part of the project…
Southern LNG Company, the operator of the Elba Island LNG export plant near Savannah in Georgia, is to host a full inspection of the facility by regulators just after the…
January-February exports at 10.14mmt on 28th February - Down 1.90mmt (16pct) over November-December period - Shipments up 0.81mmt (9pct) over period year-on-year - Avg. US capacity utilisation at 82pct for report period
Free ReadMonthly US LNG Exports (MMt) as oof 4th March for the period between 1st January and 28th February, inclusively.   Elba Island LNG Elba Island LNG exported two cargoes, amounting to…
Freight rates for shipping US LNG to Asia will fall once the Panama Canal congestion eases in early February 2021. However, analysts expect Northeast Asia’s call on US supply will…

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.