LNG

Tamboran Resources, an exploration and production company currently valued at A$391.5 million (US$258M) on the Australian Securities Exchange, is launching an initial public offering of shares in the US for shale-gas assets in Australia’s equivalent of the Marcellus Shale in the Northeast US.

Energy World Corp., the Australian-listed company with LNG and power projects in the Philippines and Indonesia, has launched a capital-raising operation among shareholders and is seeking loans from financial institutions to help complete its various ventures.

Tlou Energy, a UK-listed company focused on delivering natural gas for power in Southern Africa, has reached a landmark in Botswana with work starting on grid connection for its coal-seam gas project, which is used as LNG feed gas in Australia where Tlou Energy is also listed.

March 15 (LNGJ) - Renergen, the South African developer of the Virginia Gas Project in the Free State with helium and LNG production planned, said on March 14 it had lined up Ivanhoe Mines, a Canadian-listed owner of South African mining interests, as a potential strategic partner after it acquired a 4.35 percent stake in Renergen.

   “Ivanhoe is an ideal partner to stand alongside Renergen in the development of its world-class helium reserves at Virginia,” said David King, Chairman of Renergen, which is listed on the Johannesburg and Australian securities exchanges. Ivanhoe’s Platreef project is in South Africa’s northern Limpopo province and is targeting palladium, platinum, rhodium, nickel, copper and gold. The Ivanhoe Co-Chairs are Robert Friedland and Yufeng “Miles” Sun.

Final shareholder and court approvals have been obtained for the US$6.25 billion merger of Papua New Guinea-based energy company Oil Search and Adelaide-based Santos to create a major Asia-Pacific energy player.

Papua New Guinea said it would honour a natural gas agreement with French energy major Total signed with a previous government for the Oceania nation's liquefied natural gas expansion projects after securing some concessions and is now likely to proceed with finalizing a second feed-gas accord.

The decision removes uncertainty over the plan that arose after new Prime Minister James Marape came to power in May 2019 promising to win more benefits from the international oil and gas companies backing the expansion.

The Papua LNG gas agreement is one of two accords needed for Total and its partners, including Exxon Mobil Corp. and Australian-listed Oil Search Ltd and others, to go ahead with the expansion proposals.

“The government has now cleared Total to proceed full steam ahead with the implementation of the Papua Gas Project,” said Petroleum Minister Kerenga Kua in a statement.

Peter Botten, the Managing Director of Oil Search whose headquarters are in PNG, said he was happy with the outcome despite the project delays.

“We are pleased that the PNG Cabinet (National Executive Council), has completed its review of the Papua LNG Gas Agreement and has validated the agreement as executed on 9 April 2019,” stated Botten.

“The next step for the proposed integrated three LNG Train development is the finalization of the P’nyang Gas Agreement,” he added.

Botten explained that once this final step is completed the Petroleum Retention License 15 in the Gulf Province of PNG and the PRL 3 licence in the Western highlands, as well as the overall LNG joint ventures, can proceed into the front-end engineering and design phase of these “nationally important” developments.

Doubts about the gas deal escalated in August when the government suddenly called for talks to revise the agreement.

The minister Kua said Total had made some concessions, promising to prepare a detailed plan outlining how much local equipment and services would be used in the project and to negotiate with any third parties wanting access to the project’s gas pipelines.

Total would also be willing to negotiate for PNG to take a stake in the pipelines after the state has repaid all its loans and costs on the LNG project, and would consider buying LNG carriers in a joint venture with the state.

“Most of these are substantial new concessions on potential future benefits,” state Minister Kua.

The two existing LNG Trains at the plant northwest of Port Moresby have a nominal capacity of 6.9 million tonnes per annum but are actually running close to 9 MTPA.

Three other Trains are planned in the expansion and the five Trains when operational would have an actual capacity of nearly 20 MTPA.

Analysts said the expansion when completed would put PNG into the premier league of global LNG suppliers.

Australian company Liquefied Natural Gas Limited, developer of the US Magnolia LNG project in Louisiana and the Canadian Bear Head venture in Nova Scotia, has decided at a board meeting to re-domicile to the United States and list on the Nasdaq global exchange.

LNG Ltd said that after the vote by the board the company currently listed on the Australian Securities Exchange would proceed to list on the Nasdaq following regulatory and judicial approvals and an affirmative shareholder vote.

“After continued evaluation by the Board and management team and given the Company’s confidence in raising new capital to fund our business and marketing efforts, we believe a US re-domiciling is in the company’s best interest,” said Paul J. Cavicchi, Chairman.

The Magnolia and Bear Head projects have plans for combined production plans of up to 20 million tonnes per annum, 8 MTPA at Magnolia at Lake Charles and as much as 12 MTPA at Bear Head, proposed for Richmond County in Nova Scotia.

“This listing change is expected to benefit LNGL and its shareholders by properly positioning and valuing the Company for future success,” added Cavicchi.

LNG Ltd, based in Sydney, said it believed the US listing change would increase awareness of the stock among North American investors who are familiar with the LNG industry and have significant capital to deploy to such assets.

The company also expected better valuation and better trading liquidity for the stock, given the current valuations for LNG Ltd’s US-listed peers.

LNG Ltd. additionally forecasts that the change would make the company more attractive to potential future business partners.

The company's assets include the OSMR LNG liquefaction process through its subsidiary LNG Technology Pty Ltd.

“LNGL is committed to transparency and regular communication during the re-domicile process,” said Chief Executive Greg Vesey.

“This will ensure that all shareholders, retail and institutional, Australian, or in the US and elsewhere, are able to make fully informed decisions,” added the CEO.

“At this stage we anticipate that a re-domicile transaction could be completed in late 2019 or early 2020,” stated Vesey.

The re-domiciliation process will utilize a Scheme of Arrangement under the Australian Corporations Act pursuant to which LNG Ltd’s shareholders will exchange their stock for shares in a newly incorporated US company based in the state of Delaware.

“To assist with the transition, the company anticipates using a share sale facility, providing eligible existing shareholders an election to either sell or retain their shareholding in accordance with the Scheme of Arrangement,” said LNG Ltd.

Oil Search, the Papua New Guinea-based energy company with liquefied natural gas stakes in the Oceania nation, is moving forwards with its investments in the US state of Alaska.

Oil Search Managing Director Peter Botten, one of the people at the centre of the development of liquefied natural gas in Papua New Guinea, has been awarded Australia’s highest honour, the Companion of the Order of Australia, for eminent service to Australian-PNG relations, particularly in the oil and gas industry.

In the Australian honours system appointments to the Order of Australia confers the highest recognition for outstanding achievement and service to Australia or humanity at large.

Oil Search Chairman Rick Lee congratulated Botten on the award as recognition of his “heartfelt and long-standing commitment to building corporate-community relationships” in Papua New Guinea.

“Mr Botten has led the company with strength and integrity for 25 years,” he said.

“Peter’s leadership is held in very high regard for making a difference in PNG - not only from an industry level but at a very personal level too,” added the Chairman.

The PNG LNG plant, located northwest of Port Moresby is operated by ExxonMobil and Oil Search is one of the shareholders in the plant as well as the gas resources for a planned expansion.

Oil Search is the main player in the PNG oil fields, which also provide associated gas for the LNG plant.

PNG LNG currently produces almost 9 million tonnes per annum from its two existing liquefaction Trains and will more than double output with the addition of three new Trains.

“As managing director, Peter has fostered a culture within Oil Search that focuses on doing the right thing - not just for shareholders but for all stakeholders, especially local communities in PNG,” he explained.

“Under his leadership, Oil Search remains committed to addressing important social issues and aspiring to set the standard for private sector contribution to sustainable development. He has promoted deep relationships between PNG and Australia by championing initiatives that have built trust and understanding in both countries,” stated the Chairman.

The PNG government and the owners of the licences for feed-gas to expand LNG in the Oceania nation are expected to give the go-ahead for the joint venture by the end of March.

Australian Securities Exchange-listed company Oil Search, whose main assets are in PNG, has just outlined the latest plans in its fourth-quarter earnings report.

An accord was signed between the Petroleum Retention License 15 joint venture and the PNG Government in November, detailing the key terms and conditions to apply to the Papua LNG Gas Agreement.

“The Government and the PRL 15 and PRL 3 joint ventures are targeting to finalise both the Papua LNG and the P’nyang Gas Agreements before the end of March 2019, which will enable an integrated front-end engineering and design entry decision to be taken for the proposed three-Train LNG expansion,” said Oil Search.

LNG Ltd, the Australian-listed developer of the Bear Head LNG export project in the Canadian Atlantic province of Nova Scotia, has signed labor agreements to ensure the availability of a skilled workforce at the Strait of Canso site.