LNG

Shell is weighing options to raise capital for the second phase of its flagship LNG Canada project, including a potential sale of part of its equity stake in the C$40 billion export terminal. People familiar with the talks noted any sell-down is likely to be structured as a project‑level transaction that combines equity and non‑recourse project finance, rather than a full exit from the project.

Saudi Armaco, the world’s largest oil producer, is reportedly preparing to divest up to five plants that currently power its refineries. The sale could generate around $4 billion and is part of the Government’s strategy to streamline Aramco’s operations, cut costs and diversify assets.

Awilco LNG has agreed a term sheet for the refinancing of the two 2013-built 156,000 cu m TFDEs ‘WilForce’ and ‘WilPride’ 

It was signed with a major leasing company based in Asia.

The agreement is structured as a sale/leaseback similar to their current financing and enables a full take out of the sale/leaseback facilities maturing on 31^st December this year on favourable terms.

The facility is expected to close in 4Q19, subject to final credit approval, documentation and customary closing conditions.

Amid rising tensions, PetroChina considers suspending its US LNG purchases for delivery this winter. Location swaps of cargoes might help sort matter, with Japan and South Korea expected to step up imports of American LNG in order to sell some cargoes onward to Chinese buyers.