Puerto Rican watchdog oks revised LNG contract with NFE
Puerto Rico’s financial oversight board has approved a revised LNG supply agreement between Puerto Rico Electric Power Authority (PREPA) and New Fortress Energy affiliate NFEnergía. The revision is expected to save the country more than $4 billion in fuel costs over the duration of the contract.
First cargo arrives at Egypt’s FSRU in Damietta
Arrival of the first cargo marks the launch of EGAS’ new floating storage and regasification unit (FSRU) in Damietta. The ‘Energos Winter’, a 138,250-cubic-metre vessel, has been chartered at an estimated cost of $3 million per month, complementing the existing FSRU at Ain Sokhna.
NFE withholds LNG shipments to Puerto Rico in tactical move
New Fortress Energy (NFE) is withholding shipments to Puerto Rico over disputed payment terms. The withheld cargoes undermine the island’s ability to meet electricity demand, raising the risk of blackouts during the peak summer season.
North American LNG exports forecast to double by 2028
As the Department of Energy (DOE) issued the first LNG export permit to non-FTA countries following a month-long pause, analysts forecast North America’s LNG export capacity could double by 2028 – if projects under construction begin operations as planned. The DOE just granted a permit to New Fortress Energy’s floating liquefaction plant offshore Altamira.
NFE had to delay shipment of the first cargo in July but subsequently exported several LNG cargoes from Altamira to countries with a free trade agreement (FTA) in place. Now, NFE has been authorized to also export LNG to countries that have no free trade agreement with the United States, which include all EU member states as well as Japan and India, among others. The permit is expected to boost Altamira’s exports to up to 1.4 million metric tons through to August 2029, a potential 3% rise.
Commenting on the recent permit for NFE’s Altamira LNG export terminal, assistant DOE secretary or the Office of Fossil Energy and Carbon Management, Brad Crabtree, noted: “These re-exports can diversify global LNG supplies and improve energy security for U.S. allies and trading partners.”
Despite this positive development, it needs to be said that NFE initially requested for their export term to last until the end of 2050 – twenty years longer than what they were granted by the regulator. This term will be re-evaluated in time, allowing NFE to file for an extension after a minimum of two years.
What’s in the making
North America’s total LNG export capacity is on track to more than double from 11.4 billion cubic feet per day (Bcf/d) last year to 24.4 Bcf/d in 2028. Over the coming four years, EIA analysts estimate LNG export capacity will grow by 0.8 Bcf/d in Mexico, 2.5 Bcf/d in Canada, and 9.7 Bcf/d in the United States from a total of 10 new projects that are currently under construction in these three countries.
Five US projects, with 9.7 Bcf/d capacity combined, that are currently under construction include Plaquemines (Phase I and Phase II), Corpus Christi Stage III, Golden Pass, Rio Grande Phase I, and Port Arthur Phase I. Developers expect to produce the first LNG from Plaquemines LNG and Corpus Christi LNG Stage III and ship first cargoes from these projects by the end of 2024.
In Canada, three projects with 2.5 Bcf/d capacity combined are in the making in British Columbia on Canada’s west coast – all supplied with natural gas from western Canada. Developers of the massive 1.8 Bcf/d LNG Canada plan to export a first cargo from Train 1 in the summer 2025. The 0.3 Bcf/d Woodfibre LNG terminal targets aims for a 2027 start-up while the 0.4 Bcf/d Cedar FLNG project reached a final investment decision (FID) in June 2024 and expects to start LNG exports in 2028.
New Fortress boost
July 19 (LNGJ) - New Fortress Energy has achieved first LNG for its initial “Fast LNG” production asset located offshore Altamira in the Gulf of Mexico. NFE’s proprietary “Fast LNG” design is the first of its kind, pairing the latest advancements in modular liquefaction technology with jack-up rigs or similar offshore infrastructure to enable a faster deployment schedule than traditional liquefaction facilities.
The facility has production capacity of 1.4 million tonnes per annum. “This represents a transformative moment for our company and the industry as a whole, and reaffirms our position as a fully integrated leader in the global LNG market,” said Wes Edens, Chairman and Chief Executive of NFE. The company stated that the FLNG production success added more than $2 billion of infrastructure to the company’s asset base, “greatly improving the operational capabilities, financial flexibility and credit profile” of NFE.
QatarEnergy graduation ceremony highlights quality value chain developed on back of increasing LNG exports
QatarEnergy, the leading LNG exporter and developer of major new liquefaction projects, has celebrated the graduation of a new group of Qatari nationals who have successfully completed their academic studies and training programmes to join the workforces of QatarEnergy and other companies established in the expanding sector.
QatarEnergy signs another block of partnership and cargo deals with Chinese major for Gulf LNG expansion
QatarEnergy has signed a second partnership and supply agreement with China Petroleum and Chemicals Corp. (Sinopec) for Qatar’s North Field South (NFS) expansion project in the Arabian Gulf after Sinopec had previously taken a stake in the other Qatar expansion, the North Field East (NFE) joint venture.
Baker Hughes awarded LNG order from QatarEnergy for the North Field South expansion project
Baker Hughes, the US liquefied natural gas equipment-maker and energy services company, was awarded a major LNG order from QatarEnergy for the North Field South expansion project.
