Woodside’s pricing for Louisiana LNG volumes backfires
Australia’s Woodside Energy is struggling to market volumes from its planned Louisiana LNG terminal, as its higher liquefaction fees put the 16.5 mtpa project at a disadvantage to US rivals.
LNG feedgas demand accelerates US pipeline completions
Rampant feedgas demand for US LNG exports is speeding up the completion of intrastate pipelines, with total capacity now reaching approximately 6.3 billion cubic feet per day (Bcf/d), according to the EIA’s updated Natural gas Pipeline Projects Tracker. About 85%, or 5.3 Bcf/d, of the additional capacity is designed to move shale gas from the Haynesville and Permian formations to the Louisiana Gulf Coast.
Woodside breaks ground on S17.5bn Louisiana LNG project
Woodside Energy gears up to officially break ground on the $17.5 billion Louisiana LNG facility today – the biggest direct foreign investment in the state’s history. Planned production capacity is up to 16.5 mtpa, with first LNG targeted in 2029.
FERC approval for Commonwealth LNG paves way for $11bn project
Federal Energy Regulatory Commission’s (FERC) final order for Commonwealth LNG is affirming the authorisation of its 9.5 mpta LNG export terminal to be built along Calcasieu Ship Channel near Cameron, Louisiana. With FERC’s final order in place the $11 billion project can now go ahead.
Stonepeak to buy 40% stake in Woodside’s Louisiana LNG project
US investment firm Stonepeak has agreed to acquire a 40% shareholding in Woodside Energy’s Louisiana LNG export project and contribute $5.7 billion towards the project’s capital expenditure. Woodside CEO Meg O’Neill called the transaction a material step towards readiness for FID.
French major Total tells LNG19 event about accords to strengthen foothold on US Gulf Coast
French energy major Total said at the LNG2019 conference in Shanghai that it had signed a series of agreements to strengthen its foothold on the US Gulf Coast with equity stakes and additional volumes.
Total said it signed its deals with Tellurian Inc., a company in which it already has shares and the developer of the Driftwood LNG project in Louisiana.
The accords signed were a Heads of Agreement committing Total to invest in the development company Driftwood Holdings and another to take its supply from the venture to 2.5 million tonnes per annum of LNG.
Total said it would make an additional equity investment in the Driftwood LNG joint venture and purchase more offtake.
The final environmental impact statement was issued by the US Federal Energy Regulatory Commission in January 2019 to develop the liquefaction plant to produce around 27.6 million tonnes per annum of LNG.
Tellurian and Total said they planned a sales and purchase agreement (SPA) for a further 1.5 MTPA of LNG from Tellurian Marketing’s offtake volumes from the Driftwood venture.
The sales agreement will be for the purchase of free-on-board (FOB) whereby Total supplies the shipping for a minimum term of 15 years and at a price based on the Platts Japan Korea Marker (JKM).
Total’s equity agreement gives the French company an additional 20 million shares of Tellurian common stock for an amount of $200 million, adding its previous investment.
The agreements are subject to the relevant regulatory approvals and to the final investment decision of the Driftwood project.
“These agreements increase our commitment to Driftwood LNG, a highly cost-competitive project that benefits from the low gas production costs and prices in the US,” said Patrick Pouyanne Chairman and Chief Executive of Total.
“In line with our strategy to become a major LNG portfolio player, this transaction will add 2.5 MTPA of competitive US LNG to Total’s portfolio and strengthen our positions in the US,” added Pouyanne.
Total has been a shareholder in Nasdaq-listed Tellurian since 2017, after the Group acquired 46 million shares for an amount of $207M.
Tellurian said it was expecting to have about six partners-customers when it takes its final investment decision for the first phase of the joint venture near Lake Charles that will cost a total of $30 billion.
The company is expected to take its final investment decision by mid-2019 and would progress to producing the first LNG in 2023 and complete the project in 2026.
German utility RWE signs LNG cooperation accord with Tokyo Gas on supplies and trading
German energy utility RWE has signed a cooperation accord with Tokyo Gas of Japan on procurement of liquefied natural gas as well as trading and shipping activities.
US Driftwood LNG project progresses on the environmental front to be on track for 2023 start
Tellurian Inc, the developer of the Driftwood LNG export plant in Louisiana and its three affiliated pipelines, received a draft environmental impact statement from US regulators to stay on track for a start-up in 2023.
US shipbuilder Conrad Industries delivers US LNG bunkering barge for Florida ships
US shipbuilder Conrad Industries said it delivered the first liquefied natural gas bunkering barge built in North America to provide fuel to LNG-powered ships operating from Florida.
US LNG export data shows Sabine Pass-Cove Point differentials of more than $2 per MMBtu
US LNG export data from the Department of Energy shows that buyers at the Sabine Pass plant in Louisiana paid a maximum of $6.09 per million British thermal units at the export point compared with up to $8.16 per MMBtu at the Cove Point plant in Maryland.
