LNG

SEA-LNG, the coalition established to demonstrate the commercial and environmental benefits of LNG and the pathway it provides for cleaner shipping, has signed up Nikkiso Clean Energy and Industrial Gases (Nikkiso CEIG) is the latest member company.

Nikkiso supplies equipment, technologies and engineering services to support the safe operation of LNG as a marine fuel.

“SEA-LNG’s membership will open up networking and collaboration opportunities for Nikkiso to support its work on cryogenic pumps and process systems as well as broader cryogenic services,” said a statement.

The group also works on heat exchanger systems and Nikkiso Turboexpander systems and has experience in boil-off-gas management for LNG fuelled vessels, methane slip mitigation, and integrated LNG fuel gas supply systems.

Wide options 

Peter Keller, Chairman of SEA-LNG, said that to achieve its cleaner shipping targets the industry would require a basket of fuels and technology options.

“Collaboration across the entire LNG value chain, with companies like Nikkiso, ensures that LNG will have a place as a key part of that basket,” added Keller.

“As an important marine fuel, LNG can deliver on decarbonisation now with immediate greenhouse-gas emissions reductions and that provides a low risk, incremental pathway for decarbonisation through bio-LNG and renewable synthetic e-LNG,” he stated in looking well into the future.

Peter Wagner, Chief Executive of the Nikkiso CEIG, said the the group aimed to encourage the shipping industry to swiftly adopt LNG as a marine fuel, because it provides a readily and immediately available low-carbon clean energy.

“The fuel also has the physical properties to facilitate a more efficient ship construction integration compared to alternative fuels,” added Wagner.

“This enables the maritime industry to lower emissions by a further 20 percent on the basis of clean energy and efficient ship designs,” he said.

Gradual process

Steve Esau, Chief Operating Officer of SEA-LNG, concluded that the carbon-neutral fuel solutions would not arrive in a “big-bang” process and instead there would be incremental decarbonisation of existing assets as fuel production, transportation, storage and bunkering infrastructure and engine technologies develop.

“We are excited to welcome another new member whose innovative technology and engineering expertise supports the cost-effective operation of LNG as a marine fuel today,” stated Esau.

SEA-LNG is a UK-registered not-for-profit collaborative industry foundation serving the needs of its member organisations and is committed to furthering the use of LNG as an important, environmentally superior maritime fuel.

It has members across the entire LNG value chain including providers of the product, users, engine and asset suppliers and class societies.

French major Total SA has changed its name to Total SE on global stock markets to identify as a European rather than a French company just after it confirmed that project financing was in place for the Mozambique LNG project using Area 1 feed-gas in the Rovuma Basin.

“Total has registered with the Trade and Companies Register of Nanterre (near Paris) as a European Company,” said Total.

The new SE addition means “Societas Europaea (SE)”, Latin for European company. The Total name was previously followed by the French term “Société anonyme (SA)” , meaning a public limited company, the equivalent of Plc in English.

“This follows negotiations with employees’ representatives in 25 countries of the European Economic Area,” added Total, which has a global workforce of around 100,000 people.

It noted that members of the Special Negotiating Body for management and unions had approved and signed an agreement relating to the procedures for the involvement of employees in this new European Company.

“The Company will now be listed as Total SE on stock markets trading its shares and American Depositary Shares,” explained Total.

However, its identifying ticker on the Paris Euronext exchange (FP) and New York Stock Exchange (TOT) will remain unchanged.

The shares were last trading at €33.83 per share, down 1.75 percent, and valuing the company at around €88.45 billion ($101Bln).

The change to Total's name was announced as the energy major's Chief Financial Officer Jean-Pierre Sbraire said that he was pleased with the signing of the $14.9-billion senior debt financing agreement for Mozambique LNG.

The joint venture includes the development of the Golfinho and Atum natural gas fields located in Offshore Area 1 concession and the construction of a two-Train liquefaction plant with a total capacity of 13.1 million tonnes per annum.

“The signing of this large-scale project financing, less than one year after Total assumed the role of operator of Mozambique LNG, represents a significant achievement and a major milestone for the project,” declared CFO Sbraire.

“It demonstrates the confidence placed by the financial institutions in the long-term future of LNG in Mozambique,” he added.

“This key milestone has been reached thanks to the dedication of the Mozambique authorities and the financial partners of the project,” stated the CFO.

Total said that the African venture represented a total post-financial investment decision outlay of $20Bln.

“The project financing amounts to $14.9Bln, the biggest ever in Africa, and includes direct and covered loans from eight Export Credit Agencies (ECAs), 19 commercial bank facilities and a loan from the African Development Bank,” Total explained.

The ECAs that participated in the financing included Export Import Bank of the United-States (US-Exim), Japan Bank for International Corporation (JBIC), Nippon Export and Investment Insurance (NEXI), UK Export Finance (UKEF), Servizi Assicurativi del Commercio Estero of Italy (SACE), Export Credit Insurance Corp. of South Africa (ECIC), Atradius Dutch State Business (Atradius) and Export-Import Bank of Thailand (EXIM Thailand).

The Area 1 shareholding has Total as operator with a 26.5 percent participating interest alongside Mozambican state energy company ENH (15 percent).

Japan’s Mitsui & Co. owns 20 percent, India’s ONGC Videsh, Bharat PetroResources and Beas Rovuma Energy each hold 10 percent and Thailand’s PTTEP 8.5 percent. 

TC Energy Corp. has completed project financing and the sale of a 65 percent equity interest in the Coastal GasLink pipeline project to supply feed gas for LNG shipments to Asia from the Canadian province of British Columbia.

Asian Infrastructure Investment Bank (AIIB), backed by the Chinese government, said it was investing $500 million in an LNG import project near Tianjin port in northeast China to help support efforts to reduce air pollution.

Dominion Energy, the owner of the Cove Point liquefied natural gas export plant on Chesapeake Bay in Maryland, has secured $3 billion in lending commitments from over 20 banks for a three-year term loan that underscored that bankability of LNG.

The continuation of a trend towards smaller volumes and shorter tenures for liquefied natural gas supply contracts highlights the growing commoditization of the global LNG market even as it raises troubling questions about future supply, according to a US analysis.

Oct 31 (LNGJ) - Chart Industries, one of the leading makers of LNG equipment, said it intended to offer $225 million of Convertible Senior Subordinated Notes due in 2024 in a private placement to institutional investors. Chart also intends to grant to the initial purchasers a 13-day option to purchase up to an additional $33.75M of the notes. Chart intends to use a portion of the net proceeds of the offering to pay the cost of hedge transactions and may repurchase other outstanding debts.

Sept 19 (LNGJ) - Cheniere Energy, owner of the US Sabine Pass LNG export plant, completed its latest fund-raising exercise in a transaction with several of its pipeline and investment affiliates. The Houston-based company said it entered into a purchase agreement with Swiss investment bank Credit Suisse Securities for $1.5 billion of senior debt Notes with principal if 5.25 percent and due in 20205. “On September 18, 2017, the partnership closed the sale of the notes pursuant to the purchase agreement. The Notes were sold on a private placement basis,” said Cheniere.

March 16 (LNGJ) - Anadarko Petroleum Corp., the developer of the Mozambique LNG export plant in southeast Africa, is the latest company to raise more funds to weather the slump in energy prices. It is offering $3 billion in senior notes comprised of $800 million in notes due in 2021 with interest of 4.85 percent, $1.1Bln due in 2026 with 5.55 percent in interest and $1.1Bln for 2046 with a rate of 6.60 percent. Anadarko expects to close the offering on March 17. Joint book-running managers include Barclays Capital Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Mizuho Securities, Deutsche Bank Securities and J.P. Morgan.