LNG

Jan 25 (LNGJ) - Matador Resources of the US has signed a deal to acquire Advance Energy Partners Holdings and natural gas and oil-producing properties and undeveloped acreage in Texas and New Mexico as assets in the LNG-producing region of the US Gulf Coast increase in value.

   Matador, based in Dallas, said the transaction consisted of an initial cash payment of $1.6 billion plus additional cash considerations of $7.5 million for each month during 2023 in which the average oil price as defined in the securities purchase agreement exceeds $85 per barrel. Advance is a portfolio company of EnCap Investments L.P. The acquisition comes after HighPeak Energy, based in Fort Worth, Texas, said a potential sale of the company and its Permian Basin assets was under consideration.

Mexico, a future LNG exporter to Asia with three plants being developed on the Pacific Coast, has revealed plans that are a hidden part of the future energy policies of many resource-rich nations that it will stop exporting oil in 2023 and keep the oil for itself to guarantee fuel supplies.

Sempra Infrastructure, the US company controlling Sempra LNG and its Cameron export plant at Hackberry in Louisiana and related assets in Mexico, has sold a 10 percent stake to the Abu Dhabi wealth fund in the United Arab Emirates.

NextDecade Corp., the Houston-based developer of the Rio Grande LNG export plant in the Texan port of Brownsville, will have five liquefaction Trains instead of six while maintaining annual output of 27 million tonnes per annum.

Tellurian Inc. has delayed as expected its scheduled start of construction of the proposed Driftwood LNG export plant on the west bank of the Calcasieu River, south of Lake Charles in Louisiana, until 2021 and will study the economics of its Permian Basin feed-gas pipeline.

Texas LNG Brownsville, the mid-scale export plant proposed by industry veterans Vivek Chandra and Langtry Meyer, has been handed a ruling by the Texas Commission on Environmental Quality that it would issue an air permit allowing the construction and operation of the liquefaction facility.

The project is one of three being developed around the South Texas port and will be built on a 625-acre site located on the Port of Brownsville's deepwater ship channel near plentiful natural gas supplies and pipelines.

Texas LNG plans to ship 4 million tonnes per annum of cargoes to established and emerging markets.

“We appreciate the hard work and effort from TCEQ and are pleased to have reached this important achievement that paves the way for a 2021 final investment decision and construction of an LNG facility consistent with all air emission regulations,” said the project’s joint founder Chandra who is Chief Executive.

“Though current LNG markets are unusual in terms of pricing and supply dynamics, Texas LNG is confident that its low-cost, flexible commercial model, and realistically-sized production volumes will be key differentiators, ideally suited for global customers when operations begin in 2025,” explained the CEO.

The other two projects planned for the Brownsville Ship Channel area are Rio Grande LNG run by Houston-based NextDecade Corp. and Annova LNG whose backers include Chicago-based power company Exelon Corp.

The Rio Grande venture plans to produce 27 MTPA while Annova is aiming for 6.95 MTPA.

Langtry Meyer, the other co-founder of Texas LNG Brownsville and who is Chief Operating Officer said his company was committed to operating in an environmentally responsible manner.

“This includes the use of electric motors instead of conventional gas turbine compressors to minimize air emissions, making the facility one of the world’s cleanest LNG liquefaction plants,” Meyer explained.

“By delivering clean, safe, low-cost Texas natural gas energy to our customers around the world, Texas LNG can contribute to a cleaner global environment,” he stated.

The TCEQ air permit adds to the November 2019 authorization from the Federal Energy Regulatory Commission to proceed with the project.

Other permits received include one from Department of Energy to export US-sourced LNG to any country with which trade is not prohibited by federal law or policy.

Texas LNG will aim to source low cost and abundant Permian Basin feed gas using third-party pipeline infrastructure and an efficient modular construction design for the plant.

Tellurian Inc., the developer of the Driftwood LNG export project in Louisiana,  said it intended to reduce corporate spending and reorganize financing for its 2019 term loan as it prepares for uncertain market conditions.