EQT acquisition of Equitrans closes after Mountain Valley pipeline start-up opened way for deal completion
EQT Corp., the largest shale-gas operator in the US Appalachian Basin and a future LNG market stakeholder, has completed the acquisition of Equitrans Midstream earlier than expected after the Equitrans-operated Mountain Valley Pipeline came online in June 2024.
South Korea talks aim to create mega-energy group valued at $75Bln in LNG, oil and city gas and chemicals
South Korean discussions are under way to create the nation’s largest energy company by merging two parts of the SK Group with LNG, oil and gas and chemicals assets into a mega-Korean corporation worth over US$75 billion if completed.
Freeport LNG set for regular operations after hurricane and as Texas power to be nearly restored by July 14
Freeport LNG, the US export facility on Quintana Island in Texas, is set for regular operations as port restrictions are lifted after Hurricane Beryl and as power supplies across the state are expected to be 80 percent restored by July 14.
Federal judge in Louisiana ends US Department of Energy’s pause on the issuance of LNG export permits
A Federal judge in Louisiana has put the US Department of Energy’s pause on liquefied natural gas export permits on hold in a setback for the Biden Administration’s more radical measures to mitigate climate change by curbing gas industry emissions.
Japanese LNG engineers Chiyoda prepare to take earnings hit from bankruptcy of Golden Pass LNG partner
Chiyoda Corp., the Japanese LNG engineering company working on the Golden Pass project in Texas that has been hit by the bankruptcy of the US Zachry construction group, has had to take a hit on its earnings for the fiscal year just ended.
Chiyoda, based in Yokohama, Japan, said it was revising full-year consolidated financial forecasts and was publishing its earnings late.
Zachry Holdings, the lead contractor in the $10 billion project to transform the Golden Pass LNG terminal in Texas into an export plant, filed on May 8, 2024, for Chapter 11 bankruptcy protection.
Chiyoda said its earnings adjustments were because of the withdrawal of Zachry, one of the engineering partners, and amid efforts by Houston, Texas headquartered subsidiary, Chiyoda International Corp (CIC), to reorganise an operational structure with remaining partner, the McDermott unit CB&I LLC.
Earnings forecast
“Under the circumstances, the cost required to complete construction was forecast and recalculated with sufficient margin based on the currently effective contracts,” Chiyoda explained.
“Consequently, sales and operating income are expected to decrease from the previous forecast,” said Chiyoda.
Ordinary income is expected to drop to 5.5 billion Japanese yen ($34.5 million) from 28Bln yen ($175.37M) in the previous forecast.
This is down from the 20.32Bln yen ($127.2M) logged in the previous 2022-2023 fiscal year.
“Short-term and long-term plans to complete construction will be agreed among the three parties Chiyoda, CBI and the Golden Pass (GPX) project) soon after Zachry’s official and formal withdrawal from the project,” said Chiyoda.
Chiyoda stated that it would strive to successfully negotiate a contract with GPX and restore its equity capital by counting the contract money in its financial results to re-estimate reserves for losses on construction contracts in or after the fiscal term of the second quarter of the fiscal year 2024.
Chiyoda's secure finances
“Chiyoda’s cash and cash equivalents on its consolidated financial statements after the end of March 2024 up to the present day is about 100 billion yen ($627M) and there is no risk of harm to its business operations,” the company declared.
The Golden Pass liquefaction facilities are being constructed at the existing terminal located on the Sabine-Neches Waterway in Texas.
Three liquefaction Trains are planned with a combined nameplate capacity of around 16 million tonnes per annum of LNG.
ExxonMobil and QatarEnergy own 30 percent and 70 percent respectively of the venture.
The Train 1 mechanical completion had been scheduled for the end of 2024 and with first LNG in the first half of 2025.
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.
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.
Global LNG prices decline amid mixed EU storage and increasing gas market management attempts by Brussels
European and Asian liquefied natural gas prices declined this week in the absence of geopolitical dramas and as markets adapted to a mixed gas storage picture amid continued market management attempts by the European Union.
US equipment-maker and services firm Baker Hughes warns against US losing its leadership role in LNG sector
Baker Hughes, the US liquefied natural gas equipment-maker and energy services company, said the United States was in danger of surrendering market share in the production and export of LNG to replace coal in Asia and elsewhere to make a cleaner environment.
Glenfarne’s Texas LNG at Brownsville receives last regulatory clearances to open way for investment decision
Texas LNG, the liquefied natural gas export plant to be constructed by New York-based Glenfarne Group in the Port of Brownsville, has received its last regulatory clearances opening the way for a final investment decision.
