Swiss-based commodities firm Gunvor reports 47 percent drop in net profits while building future LNG supplies
Gunvor Group, the Swiss-based global commodities firm and trader in oil, petroleum products and liquefied natural gas with future LNG supply deals in Texas and Louisiana, posted a 47 percent drop in annual net profits as prices declined across the energy spectrum.
Gunvor US deal
Nov 28 (LNGJ) - Delfin Midstream, the US LNG project developer, and global commodities firm Gunvor Group, have signed a long-term LNG Sale and Purchase Agreement. Delfin said that under the 15-year SPA, Delfin would supply between 500,000 tonnes and 1 million tonnes of LNG per annum to Gunvor on a free-on-board basis at the Delfin Deepwater Port to be located 40 nautical miles off the coast of Louisiana.
“We continue to support US LNG projects and unlock new sources to meet the growing global LNG demand while further expanding our supply portfolio,” said Kalpesh Patel, Co-Head of LNG Trading at Gunvor. Dudley Poston, Chief Executive of Delfin, said he was pleased to enter into a long-term LNG deal. “This latest sale and purchase agreement further demonstrates our attractiveness as a long-term source of scalable, reliable and clean LNG,” Poston stated.
UK utility and energy company Centrica gives ‘strong operational’ trading update backed by LNG activities
Centrica plc, the UK owner of the British Gas utility business and an liquefied natural gas importer, said in a trading update that it continued to deliver a “strong operational performance” from its balanced portfolio.
US LNG developer Delfin signs firm supply deal with commodities firm Hartree for project offshore Louisiana
Delfin Midstream, the US liquefied natural gas developer, has finalized a binding LNG sale and purchase agreement with a UK subsidiary of commodities and energy firm Hartree Partners.
UK LNG importer and British Gas utility owner Centrica gives trading update ahead of February earnings
Centrica plc, the UK owner of the British Gas utility business and an LNG importer, said in a trading update that it continued to deliver a strong operational performance from its balanced portfolio.
Vitol signs firm supply deal with US Delfin floating LNG venture offshore Louisiana and takes project stake
The US Delfin floating LNG export project proposed for offshore Louisiana has finalized a binding sale and purchase agreement with the US subsidiary of global commodities firm Vitol.
The deal was between Delfin Midstream Inc. and Vitol Inc. and also includes “strategic investment” by Vitol in the US export project.
Under the SPA, Delfin will supply 500,000 tonnes per annum of LNG on a free-on-board (FOB) basis for 15 years at the Delfin Deepwater Port to be established 40 nautical miles off the coast of Louisiana.
“The SPA is indexed to Henry Hub benchmark. The agreement is valued at approximately $3 billion in revenue over 15 years,” said a statement.
Dudley Poston, Chief Executive of Delfin, said that recent events had accelerated the need for a wider array of potential buyers to source reliable low-cost energy from the safety of the US at “compelling” prices.
“After evaluating multiple projects and running an extensive diligence process, Vitol’s decisions to invest demonstrates the strong trust they have in our ability to deliver a reliable source of LNG,” added Poston.
Delfin added that it had signed other accords and term sheets that are being finalized into fully termed supply agreements.
Modular project
The company declared that as modular project requiring between 2 MTPA and 2.5 MTPA of long-term contracts to begin construction, Delfin is on schedule to make final investment decision on the first FLNG vessel by the end of 2022.
“We are delighted to conclude this agreement with Delfin,” said Pablo Galante Escobar, Global Head of LNG and European Gas and Power at Vitol.
“Global LNG demand is experiencing tremendous growth and Vitol continues to strengthen its position to safely and reliably deliver cost effective, flexible solutions to our customers around the world,” added Escobar.
Vitol’s commitment and investment grade rating will help Delfin on its path to financial close of this exciting project,” he stated.
Delfin has completed the engineering and design phase of the venture for the vessels being built at South Korea’s Samsung Heavy Industries shipyard and the liquefaction equipment and technology is being provided by Kansas-based company Black & Veatch.
UTOS pipeline
At the outset of the project planning Delfin had purchased the UTOS pipeline, the largest natural gas pipeline in the Gulf of Mexico, and submitted its deepwater port licence application way back in 2015.
The UTOS pipeline is the only 42-inch pipeline in the GoM and was formerly owned and operated by Enbridge Inc.
Delfin then proposed to activate the formerly abandoned offshore pipeline for the FLNG project and construct new connecting pipelines, a compressor station and associated facilities.
Wouter Pastoor, Chief Operating Officer of Delfin, explained that the company had completed permitting work with a positive record of decision from the Maritime Administration and had been granted its Department of Energy export licence.
“Delfin has completed front-end engineering and design with Samsung and Black & Veatch which puts us on pace to execute our project this year and to commence operations in 2026,” he stated.
