LNG

US company Argent Marine said it was the company behind the specially designed ISO containers that enabled the fast-track start-up of the New Fortress Energy import facility on the Pacific Coast of Mexico.

New Fortress Energy, the US operator and developer of liquefied natural gas projects in the Americas, has reached an agreement for LNG supply that will cover the needs of the existing gas-to-power businesses in Central America and the Caribbean through to the end of 2027, though was still seeking additional volumes for its Brazilian ventures.

New Fortress Energy Inc, the New York-based company with expanding assets after two LNG acquisitions for shipping and Brazilian gas-to-power projects, posted a first-quarter loss as it pursues additional plans for floating LNG and natural gas production.

Golar Power, an affiliate of Golar LNG, has signed an accord with the northeast Brazilian state of Pernambuco to develop an LNG import terminal linked to a power venture, its second such project in the region. Golar will also launch small-scale regional LNG distribution.

The infrastructure for the facility will be constructed at Port of Suape on the Atlantic Coast of the state whose capital city is Recife.

Brazil’s latest LNG import terminal is scheduled to start up in the second half of 2020 in a gas-to-power project with Golar Power’s 50-50 joint venture partner, the US-based investment fund,  Stonepeak Infrastructure Partners.

“The project includes infrastructure for the supply of natural gas and LNG to generate electricity, in addition to meeting the demands of industries, commerce, LNG stations and households,” said Golar.

To this end, Golar said it would work in partnership with the local gas distribution company, Companhia Pernambucana de Gás Natural (Copergás) to bring natural gas to regions of the State that are not yet served by traditional pipeline networks. 

Golar and Stonepeak have already developed one gas-to-power in another  northeast Brazilian state of Sergipe where a Golar floating storage and regasification unit the “Golar Nanook” operates about 8.5 kilometres off the coast. 

The FSRU is connected by pipeline to a combined-cycle gas-fired power plant, the largest in Latin America, owned by Centrais Elétricas de Sergipe S.A. 

The Pernambuco project at the Port of Suape is expected to use the existing port infrastructure owned by the state government.

Pernambuco has a population of around 9.6 million people and the project is aimed at benefiting the economy of cities in the interior of the state.

“Natural gas will be delivered by road using LNG ISO-containers,” said Golar.

“Suape is already Brazil's largest hub for liquid bulk and gases and, now, it will be one of the main LNG distribution hubs in the Northeast, with full integration of sea and land transportation modes,” added the company,based in Bermuda with Norwegian origins.

The Golar Power terminal intends to use an existing LNG carrier, permanently docked at the port of Suape.

“The vessel will act as a supplier to truck mounted LNG ISO-containers. These vehicles will then distribute LNG to cities within a radius of up to 1,000 kilometres, “ Golar explained.

“Initial trucked volumes are estimated at 800 cubic metres of LNG per day, equivalent to approximately 480,000 cubic metres of natural gas per day,” it added.

“LNG will also be distributed from Suape to other states in Brazil, through cabotage using small-scale LNG carriers that will be supplied by trans-shipment and used to transport LNG to other ports in the region,” stated Golar.

Capital requirements for the project are expected to be funded from Golar Power’s internal resources and operating cash flow.

Golar added that the final development decision on the project remains dependent on regulatory approvals and the conclusion of commercial agreements.

Chart Industries, the US liquefied natural gas and industrial gases equipment supplier with a widening international presence in Europe and Asia, has authorized the repurchase of up to $75 million of its common stock over the next 12 months. 

Under the stock repurchase program, Chart may purchase shares of its common stock through various means, including open market transactions, block purchases and privately negotiated transactions in accordance with  federal securities laws.

“This stock buyback program reflects our confidence in our business going forward, and we believe our shares are an attractive investment opportunity,” said Chart’s Chief Executive Jill Evanko.

“Our strong cash flow simultaneously enables us to return value to shareholders, pay down debt, and deploy capital for productivity and growth opportunities,” explained the CEO.

Analysts say that companies usually buy back their shares because management considers them undervalued. 

The company buys shares directly from the market or can offer its shareholders the option of tendering their shares.

A share buyback reduces the number of outstanding shares, which can increase both the demand for the shares and the price.

Chart said that the timing and amount of any repurchases under this program will be determined by Chart’s management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price.

The company, whose headquarters are in the suburbs of Atlantic in Georgia, was been building its business in North America during the LNG plant buildout as well as in Europe with trucking fuel equipment and in Asia with proposed joint ventures.

Chart signed a letter of cooperation in February 2020 with ExxonMobil India LNG Ltd, an affiliate of the US  major, and Indian Oil Corp. to focus on delivering LNG by Indian roads, railroads and waterways to spread gas use in the absence of physical pipelines.

The accord upgrades a previous Memorandum of Understanding between Chart in Indian Oil to promote the development of the LNG market in India.

It stated that the companies would focus on modular liquefaction, regasification applications, LNG bunkering, fueling stations and alternative LNG mobile transportation including ISO containers.  

Chart said the new Letter of Cooperation expanded the reach and potential scale within a significantly growing country that has committed to clean energy options.

New Fortress Energy, the owner of LNG facilities in Florida and in Jamaica and projects in Puerto Rico and the US northeast, posted a third-quarter rise in revenues while its net losses widened to $54.4 million amid continuing start-up costs and other venture expenses.

The US Department of Energy has just published its latest liquefied natural gas export data illustrating the price differences between the three liquefaction plants in operation and also the swing from Asian to European deliveries at the end of the first quarter.

Japanese natural gas utility and supplier Shizuoka Gas Co. has signed an agreement with China Clean Energy to deliver LNG volumes in ISO container tanks from its Shimizu import terminal in western Japan in the first North Asian small-scale, export-import deal.

Crowley Maritime Corp., the Florida-based shipping company for the Caribbean, said its fuels unit had acquired 40 additional cryogenic ISO tank containers to meet growing regional demand for US-sourced liquefied natural gas.

Japanese trading house Mitsui & Co. has entered the bidding battle for Australian natural gas exploration and production company AWE with an offer that trumps two other bids from China and Australia and raises the value of Australian natural gas where the domestic market is competing with LNG for the resource base.