LNG

Diamondback Energy, the Texas-based company listed on the Nasdaq global exchange, has agreed to acquire privately-held Endeavor Energy Resources in a transaction valued at $26 billion to create a premier operator in oil and associated natural gas in the Permian Basin of West Texas and New Mexico.

Tellurian Inc., the owner of the Driftwood LNG export plant in Louisiana that has sealed supply deals with commodities trading firms Gunvor and Vitol, is transferring the listing of its own shares from the Nasdaq to the NYSE American, formerly known as the American Stock Exchange (AMEX) and now the third-tier exchange for US investors.

“Transferring our stock listing to the NYSE American allows us to leverage the exchange’s prestigious trading platform for our shareholders’ benefit,” said Tellurian Executive Chairman Charif Souki.

Tellurian said it expected its common stock to begin trading on the NYSE American on November 2, 2021 and will remain under the current ticker symbol “TELL”.

Trading of Tellurian shares on Nasdaq was expected to end at close of business on November 1, 2021.

The Houston, Texas-based company is moving towards the LNG plant construction phase after signing the Gunvor and Vitol LNG sales agreements in late May and early June 2021 for a combined 6 million tonnes per annum of cargoes from the Driftwood facility.

Each of the agreements is for a period of 10 years with the supply indexed to a combination of the Japan-Korea Marker for Asian spot cargoes and the European benchmark Dutch Title Transfer facility (TTF) price.

The engineering, procurement and construction contract has already been agreed with Bechtel Inc., the leading global builder of LNG export facilities.

The Driftwood plant with production capacity of around 27 MTPA and will be built on the west bank of the Calcasieu River, just south of Lake Charles.

Reasoning

In announcing the switch from Nasdaq to the NYSE American, Tellurian Chairman Souki said it comes at a time of “global natural gas shortages” and recent “history-making” prices

“This indicates the pressing need for additional liquefaction export capacity in the United States,” added Souki.

“Tellurian is poised to contribute to America’s status as an energy superpower, having achieved both regulatory permits and commercial success for Driftwood LNG phase one development,” he explained.

“We have turned our focus to putting together a world-class banking group and have started site preparation, in advance of giving our partner Bechtel notice to proceed with construction expected in the first quarter 2022,” stated Souki.

The Nasdaq and the NYSE American have different stock trading profiles.

Nasdaq (the National Association of Securities Dealers Automated Quotations) holds a higher trading volume per day than any other stock exchange in the world.

Nasdaq joined forces with AMEX in 1998 to create the Nasdaq-Amex Market Group. However, the merger was short-lived and the AMEX regained its independence in 2004.

Now called the NYSE American, the exchange includes the second-largest options trading market, though is now mainly regarded as a platform for small-cap and mid-cap stocks and derivatives.

“We’re excited to welcome Tellurian as it transfers to NYSE American and joins our community of innovators and disruptors,” said John Tuttle, Vice Chairman and Chief Commercial Officer of the NYSE Group.

“We look forward to working with Tellurian as it supplies the world with a reliable, clean energy supply,” added Tuttle.

Golar LNG Ltd shares plunged almost 8 percent after Chief Executive Iain Ross resigned after nearly four years with the Norwegian-founded LNG shipping and projects company as it was completing the sell-off of assets to US LNG-for-power projects company New Fortress Energy.

Petróleo Brasileiro, the Brazilian oil and gas company known as Petrobras, said it would review the participation of the Golar Power joint venture company in a tender process to lease the liquefied natural gas import terminal at Salvador in the northeast state of Bahia.

Tellurian Chief Executive Meg Gentle said the Houston company is lean, resolved and focused on delivering the Driftwood LNG export project near Lake Charles in Louisiana.

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 California ports of Los Angeles and Long Beach, which in the past were short-listed as possible West Coast LNG import terminal locations, are now using more than 100 gas-powered trucks for port transportation and fueled by the leading developer of LNG filling stations, Clean Energy Fuel Corp.

Chart Industries, the US LNG and industrial gases equipment provider, is planning an underwritten public offering of 4.9 million shares to fund a portion of the purchase price of its pending acquisition of Harsco Corp.’s Industrial Air-X-Changers business.

Dec 18 (LNGJ) - Stabilis Energy, one of the leading small-scale US LNG distribution companies, is merging with Nasdaq-listed American Electric Technologies. The combined business will include the Stabilis LNG production and distribution businesses as well as AETI’s existing international units. When the transaction closes the owners of Stabilis will hold 89 percent of the combined company and AETI shareholders will own 11 percent. James Reddinger, current President and Chief Executive of Stabilis, will serve as President and CEO of the merged company, whose main operating asset is a 120,000 LNG-gallon per day production plant in George West, Texas, and a transportation fleet. “We believe the combination of Stabilis and AETI will create a leading platform for growth and consolidation in the North American small-scale LNG industry,” said Reddinger.

Tellurian Inc., developer of the Driftwood LNG export plant in Louisiana, said it advanced the sale of LNG and Driftwood partnership interests with around 35 customers and potential partners conducting due diligence and would announce the investor and buyer list by year-end.