LNG

BP has named Canadian Murray Auchincloss as the new Chief Executive with immediate success after he had been fulfilling the role since September 2023 in an interim basis after the surpise departure of the former CEO.

Samsung Heavy Industries (SHI), the South Korean shipbuilder, has put a value of US$1.5 billion on the floating liquefied natural gas (FLNG) facility recently ordered for the Canadian Cedar LNG joint venture in the Douglas Channel near Kitimat in British Columbia and modelled on an African FLNG vessel.

The Asia-Pacific region is expected to have gradually increasing liquefied natural gas demand, driven by the region's economic recovery and new regasification facilities coming online.

TC Energy Corp., whose activities include the building and ownership of pipelines in the US, Mexico and Canada and the LNG project called Coastal GasLink in British Columbia, has held an investor day with forecasts of a surge in feed gas for US Gulf Coast LNG and more progress on the spin-off of its liquids business.

TC Energy’s five divisions include Canadian Natural Gas Pipelines, US Natural Gas Pipeline, Mexican Natural gas Pipeline, Liquids Pipeline and Energy and Power Solutions.

François Poirier, TC Energy’s President and Chief Executive, told investors that the Coastal GasLink was completed while its US Southeast Gateway venture was on track for costs and schedule.

TC Energy’s presentation showed that the Calgary-based company was providing 30 percent of US LNG feed gas which is set to surge to 40 billion cubic feet per day of supply for liquefaction in the years ahead.

LNG wave

“We are well positioned to capture the next wave of LNG exports,” said the CEO.

At the start of October 2023 TC Energy completed the sale of 40 percent stakes for a total of C$5.3 billion (US$3.9Bln) in two US assets, Columbia Gas Transmission and Columbia Gulf Transmission, transporters of 20 percent of US LNG feed-gas volumes.

The company confirmed that the Columbia Gas and Columbia Gulf transactions were completed to the buyer, the New York-headquartered asset management firm Global Infrastructure Partners.

The Columbia Gas and Columbia Gulf pipelines span more than 15,000 miles across the North American natural gas network and are underpinned by strong long-term natural gas supplies and a rate-regulated commercial framework.

Southeast Gateway

“The Southeast Gateway Pipeline project continues to progress with its US$4.5Bln cost estimate and schedule,” said the company.

“TC Energy has made significant progress against its 2023 priorities, including project execution, deleveraging and maximizing the value of its asset base, which continues to generate excellent operational and financial results through all points in the economic cycle,” investors were told.

They were also told that the Liquids Pipelines business spin-off would be called South Bow Corp.

“South Bow symbolizes the historical roots of the company in Alberta, Canada, while acknowledging the pipeline system's strategic path southwards to the strongest US refining markets in the Gulf Coast and Midwest,” stated TC Energy.

“After a strong October and reflecting strength in the US dollar, the 2023 comparable EBITDA is now expected to be approximately 8 percent higher than 2022,” the company explained.

2024 priorities

“The company reaffirms its priority areas for 2024 and provides its expected comparable EBITDA growth outlook of 5 percent to 7 percent from 2023 to 2024, excluding any potential impact of its announced asset divestiture program, and prior to giving effect to the spin-off, which is expected to take place in the second half of 2024,” said TC Energy.

CEO Poirier added that over the past few years, TC Energy has been strategically pivoting capital to optimize its portfolio, leveraging core competencies and capturing the long-term growth potential in the natural gas and power businesses.

“Focusing on the value that can be delivered with two distinct strategies, the spin-off will unlock the evident value we see from each company’s unique opportunity set,” the CEO added.

“Subject to the requisite shareholder and regulatory approvals, upon closing of the spin-off transaction, South Bow is poised to be a low-risk liquids transportation and storage business, and with its anticipated investment-grade credit ratings, it can respond quickly in a market where it holds significant competitive advantages,” Poirier declared. 

The Premier of the Canadian oil and gas province of Alberta said the provincial government aimed to invoke the sovereignty act to reject Federal clean energy regulations aimed at Alberta’s gas-fired power plants.

McDermott International, the US energy and liquefied natural gas project engineering company, has reached support agreements with more than 75 percent of secured letter of credit facility providers, funded debt creditors and equity holders stemming from its several years of debt woes.

TC Energy, the natural gas pipeline company with assets in the US and Mexico and involved in projects like LNG Canada, expects to appeal court rulings in the US state of Delaware related to the US$13 billion acquisition in 2016 of US Columbia Pipeline Group under TC Energy’s previous name TransCanada Corp.

Irving Oil, the owner of Canada’s largest oil refinery and a former stakeholder in the nation’s only large-scale LNG import terminal, has launched a strategic review that may lead to the full or partial sale of the whole company.

A First Nation-led liquefied natural gas export project proposed for near the port of Prince Rupert on the northern Pacific coast of British Columbia has been awarded a 40-year natural gas export licence.

LNG Canada, the Shell-led project in the province of British Columbia, has named Shell executive Jason Klein as the new Chief Executive of the project, now described as 60 percent complete and also moving onto gas-processing infrastructure development to join with the Coastal GasLink.

Shell said Klein joins LNG Canada from Shell Canada, where he served as Vice President of Canada Integrated Gas. Klein replaces outgoing CEO Peter Zebedee.

The company said Klein brought to the position “a wealth of experience and a deep understanding of LNG, its role in the global energy transition to lower carbon energy and the part LNG Canada will play” in that transition.

The UK-based major noted in the statement that the project at Kitimat in BC was the largest private investments in Canadian history and was a long-life asset with a 40-year export licence that will initially produce 14 million tonnes per annum of LNG for export.

“I’m excited to join the team, especially at this time with construction in Kitimat progressing steadily and safely towards completion and the organization preparing for decades of successful operations,” explained Klein.

“LNG Canada and its joint venture participants are committed to setting the benchmark for economically, environmentally and socially responsible LNG development in Canada, creating a positive and lasting legacy with First Nations, the local community and all British Columbians based on our values of safety, collaboration, respect and transparency,” he stated.

Upstream to LNG

Klein began his career with Shell in 2016, following its global acquisition of BG Group where Jason held assignments in the Middle East, Europe, North America and Australia in roles spanning the legal function, upstream operations and LNG developments over a period of 13 years (starting in 2003).

“Following the BG takeover, Klein became Vice President US LNG within Shell’s Integrated Gas business, responsible for leading its development of the Elba Island LNG project near Savannah, Georgia,” added the Shell statement.

He has a Bachelor of Science in Finance from Trinity University in San Antonio in Texas and a Doctorate in Jurisprudence from the University of Texas School of Law.

“Jason takes over accountability for LNG Canada at a very important and active time,” said Susannah Pierce, Shell Canada President and Country Chairperson.

“He has extensive background in natural gas and LNG and a commitment to ensuring LNG Canada’s relationships with First Nations, communities and other stakeholders remain strong and resilient,” added Pierce.

LNG Canada remains on track and there are currently around 5,000 Canadians employed at its Kitimat site.

A huge natural gas inlet module that will take volumes off the Coastal GasLink pipeline arrived on site in March and marked what the company said was the “next phase” of development.