LNG

April 15 (LNGJ) - The Panamanian-flagged LNG carrier “Prism Brilliance” is scheduled to deliver a US cargo on April 21 to the UK South Hook import terminal at the port of Milford Haven in Wales. The cargo was lifted by the 180,000 cubic metres capacity ship on March 20 from the Freeport export facility on Quintana Island in Texas, according to shipping data.

Freeport LNG returned a liquefaction Train to service after a brief spell of maintenance, increasing feed-gas demand at the Quintana Island plant in Texas and guaranteeing cargoes for Asian and European buyers..

The ramp-up of the Train at the three-Train Freeport facility came as spot LNG prices for North Asia jumped to $18.46 per million British thermal units for October from $17.240 per MMBtu last week.

US Gulf Coast LNG last day futures prices also soared on the week with the October US GCL free-on-board (FOB) cargo quoted at $16.900 per MMBtu versus the previous week's $15.199 per MMBtu.

With the Freeport Train back on stream, data showed that feed-gas deliveries to the Texas plant increased to just over 2 billion cubic feet per day.

Analysts note that high demand for US LNG from nations like China, Japan and South Korea as well as Brazil in South America has meant very high utilization rates at all six US liquefaction terminals.

The Freeport operating company, whose Chief Executive is the energy entrepreneur Michael Smith, produces around 15 million tonnes per annum of LNG, the equivalent of 130 million barrels of oil.

The Freeport business is now estimated to be on track to book well over $2.5 billion in revenue in 2021 because of higher prices, including the US benchmark Henry Hub over $4 per million British thermal units.

It has use-or-pay liquefaction tolling agreements for most of the output from the three Trains with customers including European and Japanese contract holders, BP of the UK, Germany’s Uniper and Japan’s Jera Co. Inc. and Osaka Gas.

The Freeport plant, which is the only plant in the US that uses exclusively electric motors instead of natural gas turbines to drive the liquefaction compressors, also has permits to develop a fourth processing Train.

The first three Trains were built by a consortium including McDermott International and Zachry Construction Corp. of the US, along with Chiyoda Corp. of Japan.

Freeport only began commercial operations in May 2020 for its third Train with liquefaction services for French major TotalEnergies and South Korean utility and energy company SK E&S under their tolling agreements.

The original Freeport facility was completed as an import terminal in 2008 with one berth and two storage tanks, each of 160,000 cubic metres capacity.

A second loading berth and 165,000 cubic metres capacity of storage were added.

May 4 (LNGJ) - Freeport LNG in Texas said it began commercial operations for its third liquefaction Train with the commencement of liquefaction services for French major Total and South Korean utility and energy company SK E&S under their tolling agreements.

   “The start of commercial operations for Freeport LNG's Train 3 marks the full commercial operation of our $13.5 billion, three-Train facility,” said Michael Smith, Freeport’s founder, Chairman and Chief Executive. “After over five-and-a-half years of construction, which began in December 2014, we are thrilled to now have all three Trains operating safely, and capable of producing in excess of 15 million tonnes per annum, “ added Smith.

The Freeport LNG export plant on Quintana Island in Texas was given permission by the Federal Energy Regulatory Commission to brings a second loading jetty into service to meet increasing cargo numbers.

McDermott International and Zachry Group of the US, along with Chiyoda Corp. of Japan, say that Train 2 at the Freeport liquefaction and export plant on Quintana Island in Texas has begun producing LNG and its first cargo would be shipped soon as Gulf Coast output increases from the plant build-out.

Freeport LNG, the latest US export plant to come on stream at Quintana Island on the US Gulf coast of Texas, said it planned to launch its own LNG cargo sales windows with trading platform provider, Redwood Marketplace.

The US shipped a record 11 liquefied natural gas cargoes in the past week compared with seven in the previous week as the nation’s three facilities ramp up production and three other plants are scheduled to start commercial operations in the next three months.

Toshiba Corp. of Japan said it had decided to cancel a plan to dispose of its US LNG business, including volumes from the Freeport liquefaction and export plant being constructed in Texas, to the Chinese ENN group and to relaunch the bidding process.

Toshiba Corp. said it was facing regulatory hold-ups in its planned off-loading of its US liquefied natural gas business in Texas to a Chinese company, including a tolling agreement for the Freeport LNG project.

The Japanese conglomerate said it was facing complications as the group also attempts to restructure its widespread business operations.

Toshiba, attempting to emerge from a crisis caused by an accounting scandal and massive losses in the nuclear business, is currently in a five-year recovery plan and is set to pay China’s ENN Group to take over a 20-year tolling agreement at the Freeport plant on Quintana Island.

The ENN Group has agreed to accept over $800 million to assume Toshiba’s commitment to the 20-year deal that would amount to 2.2 million tonnes per annum of LNG from the Freeport facility under a liquefaction tolling agreement (LTA) structure.

Under the original plan, the Toshiba-ENN transaction was expected to be completed by the end of March 2019.

Toshiba now says it is facing a delay in securing approval from the Committee on Foreign Investment in the United States, a federal agency that examines the national security implications of foreign investments.

Toshiba had hoped the losses on its LNG investment would not be carried over from the previous fiscal year to the coming business year.

The Japanese group entered the LNG market in 2013 by signing its agreement with Freeport.

ENN Group is a natural gas and LNG market participant listed in Hong Kong.

In China, ENN supplies gas in cities, operates pipelines and engages in gas trading. It is trying to diversify its supply sources by purchasing the Toshiba operations.

Toshiba now say that it hoped to complete the transfer of its interests in the LNG business before the end of April 2019 or shortly thereafter.

The Toshiba deal with ENN involves concluding a purchase and sales agreement for the transfer of all outstanding shares of Toshiba America LNG Corp. to ENN.

Toshiba is making a provision for a 93 billion yen ($838M) loss on its Freeport LNG accord and related activities.