NextDecade targets 2027 FID on Rio Grande LNG Train 6
NextDecade is preparing for a 2027 final investment decision (FID) for Train 6 at its Rio Grande LNG project, as offtake interest already exceeds the facility’s planned capacity.
French major TotalEnergies updates LNG and production and downstream indicators for next earnings
French major TotalEnergies has provided revised key indicators for the forthcoming second-quarter earnings where oil and gas production and the LNG, power and downstream businesses would be affected.
Australian LNG operator Santos sees shares surge on reports of takeover interest from the Middle East
Santos Ltd, the Australian operator of two liquefied natural gas export plants and a main shareholder in Papua New Guinea LNG assets, has seen its shares surge on take-over speculation, separately involving the Saudi Arabian Oil Company and Abu Dhabi National Oil Company.
While Saudis have signed LNG deals with Texas they have again proved they have much more oil and gas
Saudi Arabia, the latest entrant into the LNG market with two supply contracts signed in Texas, has discovered seven more oil and gas fields in the Kingdom’s Eastern Province and in the Empty Quarter.
Saudi Energy Minister Prince Abdulaziz bin Salman said Saudi Arabian Oil Company (Aramco) had just discovered “two unconventional oil fields, a reservoir of light Arabian oil, two natural gas fields, and two natural gas reservoirs” in recent weeks.
Two unconventional oil fields and one reservoir were discovered in the Saudi Eastern Province while the two natural gas fields and two gas reservoirs are in the Empty Quarter.
The “Ladam” unconventional oil field was discovered in the Eastern Province after the flow of very light Arabian oil in the Ladam-2 well at a rate of 5,100 barrels per day, accompanied by about 4.9 million standard cubic feet of gas per day.
In addition to having much more oil and gas than Texas, Aramco was still happy to sign to supply agreements with the Port Arthur LNG project and the Rio Grande LNG joint venture.
Discoveries list
Outlining its own recent discoveries, Aramco added that the “Al-Farouk” unconventional oil field was discovered in the Eastern Province after Arab ultra-light oil flowed from the Al-Farouk-4 well at a rate of 4,557 barrels per day, accompanied by about 3.79 million standard cubic feet of gas per day.
The “Unayzah” reservoir was discovered in the “Mazalij” field in the Eastern Province, after Arab Light oil flowed from the Mazalij-62 well at a rate of 1,780 barrels per day, accompanied by about 0.7 million standard cubic feet of gas per day.
The “Al-Jahaq” resources were found in the Empty Quarter after natural gas flowed from the “Al-Arab-C” reservoir in Al-Jahaq-1 well at a rate of 5.3 million standard cubic feet per day, and from the “Al-Arab-D” reservoir in the same well at a rate of 1.1 million standard cubic feet per day.
The Empty Quarter is the largest continuous sand desert in the world and is almost the size of France, covering about 650,000 square kilometres of arid and inhospitable terrain - containing nothing but oil and gas.
The “Al-Katuf” field was discovered in the Empty Quarter after natural gas flowed into Al-Katuf-1 well at a rate of 7.6 million standard cubic feet per day, accompanied by about 40 barrels per day of condensate.
The “Hanifa” reservoir was found in the “Asikra” field in the Empty Quarter after natural gas flowed in the Asikra-6 well at a rate of 4.9 million standard cubic feet per day.
LNG deals
Aramco has signed a second US LNG accord to receive volumes from another Texas export, the Port Arthur liquefaction joint venture in Texas being developed by Sempra Infrastucture, and has followed up on a deal signed earlier in June with the Rio Grande export project in the Port of Brownsville.
Sempra has signed a non-binding Heads of Agreement as part of a 20-year deal for Aramco to offtake 5 million tonnes per annum from the Port Arthur LNG Phase Two expansion.
The accord also contemplates Aramco taking a 25 percent participation in the project-level equity of Phase Two.
The Aramco deal with the Port Arthur project follows an earlier accord signed by the Saudis in mid-June 2024 with NextDecade Corp., the developer of the Rio Grande LNG export plant in Texas.
Aramco and NextDecade confirmed a non-binding accord for the supply of cargoes from the future Train 4 of the Rio Grande plant being constructed at the Port of Brownsville.
That Heads of Agreement was for 20 years and was also with the upstream division of Aramco.
The Rio Grande project is located on 984 acres of land which has been leased long term and includes 15,000 feet of frontage on the Brownsville Ship Channel.
NextDecade confirms non-binding accord with Saudis for supply of LNG from future fourth liquefaction Train
NextDecade Corp., the developer of the Rio Grande LNG export plant in Texas, confirmed a non-binding accord with Saudi Arabia for the supply of cargoes from the future Train 4 of the plant being constructed at the Port of Brownsville.
The Heads of Agreement (HoA) was for 20 years with the upstream division of the Saudi Arabian Oil Company (Aramco).
The Rio Grande project is located on 984 acres of land which has been leased long term and includes 15,000 feet of frontage on the Brownsville Ship Channel.
The venture has received all necessary approvals and authorizations required for construction, including those from the Federal Energy Regulatory Commission, which allow for development, construction and operation of up to five Trains and 27 million tonnes per annum of LNG exports.
Under the terms of the HoA, Aramco expects to purchase 1.2 MTPA of LNG at a price indexed to the US benchmark Henry Hub price.
The NextDecade-Aramco accord would be subject to a positive final investment decision on Train 4.
Finalising terms
“We look forward to finalizing the terms of a long-term LNG offtake agreement with NextDecade, as we explore opportunities to expand our presence in international energy markets,” said Nasir K. Al-Naimi, Aramco Upstream President.
“We expect LNG to play an important role in meeting the rising demand for secure and efficient energy,” added Al-Naimi.
Matt Schatzman, NextDecade Chairman and Chief Executive, said he was pleased with the Saudi accord.
“We look forward to finalizing the LNG Sale and Purchase Agreement with Aramco and to pursuing other opportunities together,” Schatzman stated.
NextDecade is targeting an investment decision on Train 4 in the second half of 2024, subject to finalizing and entering into an engineering, procurement and construction (EPC) contract, gaining appropriate commercial support, and obtaining adequate financing to construct Train 4 and related infrastructure.
The Phase 1 construction at the Rio Grande plant includes three liquefaction Trains with a total nameplate capacity of 17.61 MTPA of LNG production, two 180,000 cubic metres full containment LNG storage tanks and two jetty berthing structures designed to load LNG carriers up to 216,000 cubic meters in capacity.
Phase 1 also includes associated site infrastructure and common facilities including feed gas pre-treatment facilities, electric and water utilities, two totally enclosed ground flares for the LNG tanks and roads and levees surrounding the entire site.
Leading US engineering and construction company Bechtel Energy hosts hiring events for Port Arthur LNG
Bechtel Energy, the leading US and global liquefied natural gas engineering and construction company, said it was looking to hire for more than 500 roles for the Port Arthur LNG export project in Texas as building gets underway.
Mubadala Energy of UAE makes second substantial natural gas discovery with LNG potential offshore Indonesia
Mubadala Energy, the international company headquartered in Abu Dhabi in the United Arab Emirates, has made a second large natural gas discovery with LNG potential in the Andaman Sea offshore Indonesia.
Pipelines operator Enbridge reports solid earnings amid LNG advances and asset sales and acquisitions
Enbridge, the North American pipelines and energy transportation company, reported a decline in earnings as it completed sales and acquisitions to swap around its assets and proceeded with natural gas ventures meeting LNG processing demand on the US Gulf Coast.
NextDecade CEO Schatzman says US Rio Grande LNG begins to take shape and gives comprehensive update
NextDecade Corp., the company developing the Rio Grande LNG export plant on the north shore of the Brownsville Ship Channel in South Texas, has given an update on strategic activities through the early second quarter of 2024.
Eagle Ford gas sale
April 8 (LNGJ) - TotalEnergies has agreed to acquire the 20 percent interest held by Lewis Energy Group in the Dorado leases operated by EOG Resources in the Eagle Ford shale gas basin, increasing its natural gas production capacity in Texas and further strengthening its business integration in the US LNG value chain.
“The Dorado field will allow TotalEnergies to increase its net US natural gas production by 50 million cubic feet a day in 2024, with the potential for an additional 50 Mcf per day by 2028,” the French company said.“TotalEnergies was the No. 1 exporter of US LNG with 10 MTPA with its 16.6 percent stake in the Cameron LNG plant in Louisiana and several long-term purchasing agreements,” it added. The Paris-based company also has a stake in the Rio Grande LNG project in Texas.
