LNG

European Commission competition regulators are still seeking responses from market players one year after the European Energy Exchange (EEX) announced plans to buy the European power trading and clearing business of the Nasdaq global exchange.

NextDecade Corp., the developer of the Rio Grande LNG export project on the Brownsville Ship Channel in Texas, has amended its engineering contract agreement with US company Bechtel Energy to extend the price validity.

The engineering, procurement and construction contract with Bechtel for the building of the first three liquefaction Trains has been extended to June 15, 2023.

“NextDecade currently estimates the aggregate lump-sum EPC cost to construct Trains 1-3 of the Rio Grande Facility at approximately $11.5 billion,” said NextDecade in a statement to the Nasdaq global exchange.

“The final EPC lump-sum contract pricing for Trains 1-3 of the Rio Grande facility will be determined prior to a final investment decision and is subject to change, including if RGLNG does not issue a full notice to proceed to Bechtel on or before June 15, unless extended by mutual agreement of the parties thereto,” the company explained.

NextDecade said that it was currently targeting a positive FID on Trains 1-3 of the Rio Grande project before the end of the second quarter of 2023, with FIDs on the remaining Trains to follow later.

Houston, Texas-based Next Decade has ultimate plans and permits to produce up to 27 MTPA of LNG from five liquefaction Trains at the Rio Grande facility.

Numerous delays

The Rio Grande project has been delayed on numerous occasions over the years and was originally expected to start producing LNG in 2023.

NextDecade signed about half a dozen sales and purchase agreements (SPAs) in 2022, the most recent being a volume increase in December with ENN LNG of Singapore, a trading unit of the Chinese ENN Natural Gas Group.

Under the 20-year SPA, ENN will now purchase 2.0 MTPA of LNG. NextDecade said this was a 500,000 tonnes per annum increase from the original 1.5 MTPA SPA announced earlier in 2022.

All volumes of LNG are indexed to the US benchmark Henry Hub natural gas price and will be supplied from the first three Trains at the Rio Grande facility.

Portugal deal

NextDecade earlier in December 2022 signed an SPA with Galp Trading S.A. of Portugal.

This was its fifth deal of the year and the increase of volumes for ENN Group was its sixth volume sign-up.

NextDecade has made progress with other SPAs during 2022, including one with ExxonMobil Corp.

The US major signed a 20-year supply deal with NextDecade at the end of July 2022 through its trading subsidiary in Asia.

NextDecade has also signed three supply agreement with Chinese companies, including a 20-year deal with China Gas Hongda Energy Trading Co., a wholly-owned subsidiary of China Gas Holdings, the ENN Group and with Guangdong Energy Group Natural Gas.

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.

Clean Energy Fuels Corp., the California-based supplier of liquefied natural gas and natural gas fuel made from waste and 540 filling stations across the US and Canada, said it had signed deals for over 58 million gallons of its Redeem brand as its customer base extends.

US Rio Grande LNG project developer NextDecade has issued a corporate update saying it has resources to maintain operations through 2021 and has delayed its final investment decision until next year on the venture proposed for the Port of Brownsville in Texas.

Australian company Liquefied Natural Gas Limited, developer of the US Magnolia LNG project in Louisiana and the Canadian Bear Head venture in Nova Scotia, has decided at a board meeting to re-domicile to the United States and list on the Nasdaq global exchange.

LNG Ltd said that after the vote by the board the company currently listed on the Australian Securities Exchange would proceed to list on the Nasdaq following regulatory and judicial approvals and an affirmative shareholder vote.

“After continued evaluation by the Board and management team and given the Company’s confidence in raising new capital to fund our business and marketing efforts, we believe a US re-domiciling is in the company’s best interest,” said Paul J. Cavicchi, Chairman.

The Magnolia and Bear Head projects have plans for combined production plans of up to 20 million tonnes per annum, 8 MTPA at Magnolia at Lake Charles and as much as 12 MTPA at Bear Head, proposed for Richmond County in Nova Scotia.

“This listing change is expected to benefit LNGL and its shareholders by properly positioning and valuing the Company for future success,” added Cavicchi.

LNG Ltd, based in Sydney, said it believed the US listing change would increase awareness of the stock among North American investors who are familiar with the LNG industry and have significant capital to deploy to such assets.

The company also expected better valuation and better trading liquidity for the stock, given the current valuations for LNG Ltd’s US-listed peers.

LNG Ltd. additionally forecasts that the change would make the company more attractive to potential future business partners.

The company's assets include the OSMR LNG liquefaction process through its subsidiary LNG Technology Pty Ltd.

“LNGL is committed to transparency and regular communication during the re-domicile process,” said Chief Executive Greg Vesey.

“This will ensure that all shareholders, retail and institutional, Australian, or in the US and elsewhere, are able to make fully informed decisions,” added the CEO.

“At this stage we anticipate that a re-domicile transaction could be completed in late 2019 or early 2020,” stated Vesey.

The re-domiciliation process will utilize a Scheme of Arrangement under the Australian Corporations Act pursuant to which LNG Ltd’s shareholders will exchange their stock for shares in a newly incorporated US company based in the state of Delaware.

“To assist with the transition, the company anticipates using a share sale facility, providing eligible existing shareholders an election to either sell or retain their shareholding in accordance with the Scheme of Arrangement,” said LNG Ltd.

New Fortress Energy, a US company seeking to develop the Shannon LNG import project in the southwest corner of the Republic of Ireland, is expecting an Irish High Court ruling on February 15 on whether the venture can go ahead in its present form.

The company, which started the first LNG import terminal at Montego Bay in the Caribbean nation of Jamaica, is now expanding to gain a foothold in Europe.

The Irish court ruling is likely to determine whether New Fortress can proceed to build the plant or whether it will have to apply for a new planning permission or abandon its plans altogether.

If Shannon LNG goes ahead, the project would support 400 construction jobs and dozens of full-time positions when operations begin.

The terminal project could begin operations as early as 2020 or 2021.

The project was first granted planning permission in 2008 but has been affected by delays. Its supporters believe a positive court ruling would help revitalise the economy of North Kerry, though environmentalists have expressed opposition.

The Irish environmentalists are opposed to the importing of US LNG cargoes as they are against hydraulic fracturing, or fracking, for shale-gas in America.

New Fortress itself became a listed company in the US at the end of January 2019.

The company conducted an initial public offering and raised more than $280 million in the sale of shares to investors as it listed on the Nasdaq global exchange.

New Fortress sold 20 million shares at $14.00 each, which was below earlier price indications. The shares were last trading on February 12 at $14.06 each.

New Fortress last year entered into an agreement to buy Shannon LNG, a project company that owns the rights to develop and operate the terminal and a combined heat and power plant on the Shannon estuary near Ballylongford.

New Fortress was co-founded by Wes Edens, who started the private equity company Fortress Investment and who has retained a majority stake after the Nasdaq listing.

Edens is the co-owner of two sports franchises, the US Milwaukee Bucks basketball team and UK’s Aston Villa Football Club.

His company is looking at two other LNG projects in the Caribbean, in Puerto Rico and the Dominican Republic, as well as one in Mexico.