LNG

TechnipFMC, the energy projects and subsea company, said its Technip Energies division had third-quarter revenues of $1.60 billion and benefited from the continued ramp-up of Novatek’s Arctic LNG II joint venture in Russia and gave updates on other projects.

Tellurian Inc., the developer of the Driftwood LNG plant in Louisiana, has confirmed that its prestigious accord with India’s Petronet LNG for volumes and investment first signed in the presence of Indian Prime Minister Narendra Modi has now elapsed.

May 20 (LNG) - LNG and energy engineering company, KBR of the US, has signed a joint venture agreement with NIPIneftegas JSC to establish a new engineering and support services company in Kazakhstan, the former Soviet Republic which is a big supplier of pipeline natural gas to China.

   “With support from KBR and NIPIneftegas, the venture called KBR-NIPILLP, will provide engineering, procurement, design and related services for projects across the upstream, midstream and downstream oil and gas sectors, within the Republic of Kazakhstan,” said a statement. Kazakhstan supplied 7.5 billion cubic metres of natural gas to China last year and plans to gradually increase this total to 10 Bcm per annum. 

Texas LNG Brownsville, the mid-scale export plant proposed by industry veterans Vivek Chandra and Langtry Meyer, has been handed a ruling by the Texas Commission on Environmental Quality that it would issue an air permit allowing the construction and operation of the liquefaction facility.

The project is one of three being developed around the South Texas port and will be built on a 625-acre site located on the Port of Brownsville's deepwater ship channel near plentiful natural gas supplies and pipelines.

Texas LNG plans to ship 4 million tonnes per annum of cargoes to established and emerging markets.

“We appreciate the hard work and effort from TCEQ and are pleased to have reached this important achievement that paves the way for a 2021 final investment decision and construction of an LNG facility consistent with all air emission regulations,” said the project’s joint founder Chandra who is Chief Executive.

“Though current LNG markets are unusual in terms of pricing and supply dynamics, Texas LNG is confident that its low-cost, flexible commercial model, and realistically-sized production volumes will be key differentiators, ideally suited for global customers when operations begin in 2025,” explained the CEO.

The other two projects planned for the Brownsville Ship Channel area are Rio Grande LNG run by Houston-based NextDecade Corp. and Annova LNG whose backers include Chicago-based power company Exelon Corp.

The Rio Grande venture plans to produce 27 MTPA while Annova is aiming for 6.95 MTPA.

Langtry Meyer, the other co-founder of Texas LNG Brownsville and who is Chief Operating Officer said his company was committed to operating in an environmentally responsible manner.

“This includes the use of electric motors instead of conventional gas turbine compressors to minimize air emissions, making the facility one of the world’s cleanest LNG liquefaction plants,” Meyer explained.

“By delivering clean, safe, low-cost Texas natural gas energy to our customers around the world, Texas LNG can contribute to a cleaner global environment,” he stated.

The TCEQ air permit adds to the November 2019 authorization from the Federal Energy Regulatory Commission to proceed with the project.

Other permits received include one from Department of Energy to export US-sourced LNG to any country with which trade is not prohibited by federal law or policy.

Texas LNG will aim to source low cost and abundant Permian Basin feed gas using third-party pipeline infrastructure and an efficient modular construction design for the plant.

McDermott International, the US LNG and energy engineering company, is set to emerge from Chapter 11 bankruptcy protection after the US Bankruptcy Court for the Southern District of Texas approved the sale of its Lummus Technology business to New York equity funds.

McDermott International, the US LNG and energy engineering company overhauling its finances after Chapter 11 bankruptcy protection proceedings, said it was moving forward with the previously agreed sale of its Lummus Technology business.

McDermott said it had received no higher bids for Lummus and would now execute the previously announced share and asset purchase agreement to sell all of Lummus to a joint partnership between The Chatterjee Group, the New York-based investment fund, and Rhône Capital, a global private equity firm with offices in London and New York.

“McDermott did not receive a higher or better bid during the solicitation period, and the auction previously scheduled for Monday, March 9, 2020, will not occur,” explained the Houston-based company .

Subsidiaries of McDermott had entered into an agreement in January 2020 to sell Lummus to The Chatterjee Group and Rhône Capital for a base purchase price of $2.72 billion, subject to higher or otherwise better bids received through the court-supervised auction process. 

Under the terms of the agreement, McDermott will have the option to retain or purchase, as applicable, a 10 percent common equity ownership interest in the entity purchasing Lummus Technology.

McDermott said the sale hearing to confirm the sale of Lummus Technology to the joint partnership will take place on Thursday, March 12, 2020, at 9:00 am.

The equity-for-debt plan agreed with the court would eliminate more than $4.6Bln of McDermott’s debt.

The restructuring transaction has been implemented through a pre-packaged Chapter 11 process, which under US law gives protection from bankruptcy.

It is being financed by a debtor-in-possession (DIP) financing facility of $2.81 billion. 

“Proceeds from the sale of Lummus Technology are expected to repay McDermott's DIP financing in full, as well as fund emergence costs and provide cash to the balance sheet for long-term liquidity,” said the company.

McDermott is involved in some of the world’s leading LNG construction projects, including several on the US Gulf Coast and the North Field Expansion in Qatar.

Currently McDermott is working with other firms on both the Cameron LNG project at Hackberry in Louisiana and the Freeport export facility at Quintana Island in Texas.

McDermott has additionally been engaged as a contractor on the Golden Pass LNG export project for Qatar Petroleum and ExxonMobil venture in Texas.

The company has suffered financial problems since it completed the $6 billion deal in 2018 to buy LNG rival engineering, procurement and construction company Chicago Bridge & Iron (CB&I).

The restructuring transaction will strengthen its balance sheet and normalize its trade debt.

All of McDermott's businesses have operated as normal during the financial restructuring.

Baker Hughes Company, the oil and gas services and equipment provider, posted lower fourth-quarter profits while pushing ahead with the provision of liquefaction plant equipment, winning a major order for Mozambique LNG in southeast Africa.

American Bureau of Shipping Chairman and Chief Executive Christopher J. Wiernicki gave the US view on the future of the marine fuels market and the use of more liquified natural gas from 2020 onwards in a major speech at a shipping event in China.

McDermott International, said it had received unsolicited approaches to sell all or part of its Lummus Technology business with a valuation exceeding $2.5 billion and analysts said this could be the starting point for a corporate overhaul.

Sept 3 (LNGJ) - Cheniere Energy said it had achieved substantial completion of Train 2 of the Corpus Christi liquefaction plant in Texas. “Commissioning is complete and Cheniere’s EPC partner Bechtel Oil, Gas and Chemicals has turned over care, custody and control of Train 2 to Cheniere,” said the Houston-based company.

   “Cheniere, its subsidiaries and Bechtel have now declared substantial completion on seven liquefaction trains at the Corpus Christi liquefaction project and the Sabine Pass liquefaction project ahead of each train’s guaranteed completion date and within project budgets,” said Cheniere.

   “Under sale and purchase agreements with Electricité de France, Iberdrola and Naturgy Energy Group of Spain, Pertamina of Indonesia and Woodside of Australia, the date of first commercial delivery is expected to occur in May 2020, upon which the term of each of these SPAs commences,” explained Cheniere.