LNG

US company Argent LNG, with plans to develop a liquefaction plant at Port Fourchon in Louisiana, has selected Chart Industries to supply modular processing equipment.

Argent is proposing a facility at a 144-acre site west of Belle Pass on the Louisiana Gulf Coast with an initial capacity of 10 million tonnes per annum which could be doubled.

The Argent plant will feature modules and the volumes produced would be targeted at the LNG maritime fuel market.

These include the next-generation of LNG-powered Offshore Supply Vessels (OSVs) in the Gulf of Mexico.

Atlanta, Georgia-based Chart will be supplying its Integrated Pre-Cooled Single Mixed Refrigerant (IPSMR®) processing technology to the Louisiana plant.

Advantages

“Chart’s IPSMR sets a new standard for efficiency and performance in liquefaction, surpassing conventional technologies and enabling Argent LNG to tailor its liquefaction systems precisely to site-specific conditions,” explained Chart.

Chart said that its equipment has the capability to optimize the matching of gas turbine power with single cold box capacity, ensuring maximum operational efficiency and cost-effectiveness.

“We are excited to embark on this transformative journey with Chart Industries,” said Jonathan Bass, CEO at Argent LNG.

“Their mid-scale modular model perfectly aligns with our vision for an agile and efficient LNG facility,” stated Bass.

“The technology's superior performance will empower us to optimize operations and deliver a compelling, competitive solution to the market, which is scheduled to come online in 2029-2030,” added Bass.

Chart has listed the advantages of its technology including cost and the ease of fine-tuning system configuration while maintaining high performance standards.

Engineering start

“We are excited to partner with Argent LNG to provide our IPSMR® technology, brazed aluminum heat exchangers, coldboxes and air coolers,” stated Jill Evanko, Chart’s Chief Executive and President.

“Argent is strategically optimising a 20 MTPA LNG facility by moving entirely to modular, resulting in a smaller footprint, higher efficiency and less cost, and therefore offering their customers the most efficient and effective solution,” Evanko added.

Chart said it had begun engineering work related to the Argent project and anticipated booking an IPSMR® technology and equipment order in 2025.

The founder and executive Chairman of the Commonwealth LNG project in Louisiana, Paul Varello, has announced his retirement while also selling control of his company to the New York-based Kimmeridge asset management firm.

Gunvor Group, the Swiss-based global commodities firm and trader in oil, petroleum products and liquefied natural gas with future LNG supply deals in Texas and Louisiana, posted a 47 percent drop in annual net profits as prices declined across the energy spectrum.

Tellurian Inc., the developer of the Driftwood liquefied natural gas export plant near Lake Charles in Louisiana, has ousted co-founder Charif Souki as Executive Chairman and has chosen Souki’s long-time business partner Martin Houston as the new Tellurian Chairman.

Kinder Morgan Inc. (KMI), the leading US pipeline feed-gas company for liquefied natural gas plants and a key energy infrastructure operator and developer, has issued increased financial forecasts for 2024.

Baker Hughes, the US liquefied natural gas equipment-maker and energy services company, posted increased third-quarter revenues and earnings backed by liquefied natural gas and subsea contracts.

TotalEnergies, the French major with multiple energy and LNG projects under development, has pledged at a two-day meeting of the board to maintain a multi-energy strategy with current Chairman and Chief Executive Patrick Pouyanné at the helm.

The company said the board met on September 20-21 in Paris to review the strategic outlook in the context of “changing energy markets because of the energy transition and evolving geopolitical” events.

TotalEnergies has oil and gas interests from Argentina to Asia and is a leading global LNG market participants. Its immediate LNG plans include developing the huge onshore Mozambique LNG export project,  expanding LNG production in Papua New Guinea and taking part in the liquefaction build-out in Qatar.

Relevance

The board noted the relevance of the company’s balanced multi-energy strategy considering the developments in the oil, gas and electricity markets. 

“Thanks to refocusing the oil and gas portfolio on assets and projects with low breakeven and low greenhouse gas emissions, and to the diversification into electricity, notably renewable, through an integrated strategy from production to customer, the company is in a very favorable position to take advantage of changing energy markets and prices” the board said in a statement.

With a breakeven anchored below $25 a barrel of oil, TotalEnergies said it was a much more “efficient and profitable company today than it was 10 years ago” at the same oil equivalent price.

The board noted that the company managed to generate an additional $15 billion of cash flow in 2022. 

“Thus, by end-2022, the company benefits from a fortress balance sheet and is positioned to both implement its transition strategy and to guarantee an attractive shareholder return policy,” the board added.

Continuity

The board said that while it was reaffirming its support for the “quality and the relevance” of the strategy, which will be presented to investors on September 27, the Board considers as appropriate to ensure the continuity of the company’s governance and leadership.

“The board, thus, considers that it is highly desirable that Patrick Pouyanné, Chairman and CEO, continues to drive this strategy’s deployment at the helm of the company,” the company declared.

“On the proposal of the Governance and Ethics Committee, it has therefore unanimously decided that the renewal of the mandate of Patrick Pouyanné will be proposed to the General Meeting in May 2024,” it said.

Jacques Aschenbroich, the lead independent director at the French major, underlined and also expressed his confidence in the current leadership.

“Since 2014, Patrick has done an extraordinary job leading TotalEnergies in a complex environment, delivering outstanding financial results and engaging the company in the energy transition quicker and stronger than its peers,” said Aschenbroich. 

“The board unanimously looks forward to his continued leadership and his strategic vision,” stated Aschenbroich.

The US Potential Gas Committee (PGC) has released its long-awaited report showing that the world’s No. 1 liquefied natural gas exporting nation has record natural gas resources in the prime basins in terms of recoverable gas and reserves.

Sempra Infrastructure, the subsidiary of California-based utility and energy company Sempra and with stakes in LNG plants and projects in the US and Mexico, has completed the sale of a stake in the Port Arthur LNG project in Texas to US asset management firm Kohlberg Karvis Roberts (KKR), which is already a stakeholder in Sempra Infrastructure.

Sempra said the sale was complete to KKR on a 42 percent indirect, non-controlling interest basis in the Port Arthur LNG Phase 1 project .

The transaction results in Sempra Infrastructure retaining a controlling 28 percent indirect interest in Phase 1 at the project level, and ConocoPhillips owning the remaining 30 percent interest.

“The closing of this transaction continues the positive momentum of our world-class Port Arthur LNG facility and highlights Sempra Infrastructure's ability to access capital to support the growth of its infrastructure business,” said Justin Bird, Chief Executive of Sempra Infrastructure.

“We remain committed to developing energy infrastructure projects with strong partners to continue growing our portfolio while advancing global decarbonization and energy security,” Bird added.

James Cunningham, a Partner at KKR, said the firm was pleased to proceed with the investment.

“Port Arthur LNG Phase 1 has continued its strong momentum and is on track to meet its objectives of helping to deliver energy security, economic growth and a near-term supply of reliable and cleaner energy,” added Cunningham.

Texas FID

Sempra Infrastructure reached a positive final investment decision for Port Arthur LNG Phase 1 in March 2023 and contracted US engineering firm Bechtel Energy to build the facility.

The company has additionally placed major long-lead time orders with equipment and technology companies Air Products and Baker Hughes.

The $13 billion total estimated capital expenditures for the Port Arthur project are being financed with $6.8Bln of non-recourse project-level debt and $6.2Bln of project-level equity.

The company noted that 100 percent of current contractable capacity for Port Arthur Phase 1 had been secured with long-duration contracts and high-quality counterparties.

“The expected commercial operation dates for Train 1 and Train 2 are 2027 and 2028 respectively,” Sempra said.

Progress also continues at Energía Costa Azul LNG Phase 1 on the Pacific Coast of Mexico where construction at the Mexican export project remains on track to reach commercial operations by the summer of 2025.

The San Diego, California-based company is also pursuing a Phase 2 development project at the Cameron LNG export plant in Louisiana. 

Enbridge Inc, the Canadian-based pipeline and energy company, has agreed to acquire three natural gas businesses from US utility and renewables-focused Dominion Energy in transactions valued at US$14 billion (C$19Bln) to create the largest North American gas utility franchise.