TOPICS OF INTEREST
GAS CONVERSION (LNG/GTL)
ExxonMobil Delays FID on Rovuma LNG, Moves Forward With Coral FLNG in Mozambique
The Rovuma LNG project was expected to reach FID later this year, with startup in 2025.
Successful String Test of Calcasieu Pass System Moves Project Forward
The successful string test comes 7 months after the company's FID on the Calcasieu Pass LNG project.
Global Gas Prices Expected To Drop Further Than Expected in 2020
The drop in gas prices, although greater than forecast, will not be to the same extent as oil prices.
Market Conditions Take Shell out of Lake Charles LNG Project
Energy Transfer will look at taking on new partners and possibly reducing the size of the Lake Charles LNG project.
Status Updates of North American LNG Projects Offer a Mixed Bag
Several companies have provided updates on their North American LNG projects, including Pembina, LNG Canada, and Sempra. The outlooks vary from plans to move ahead to others seeking money to stay afloat.
Mexico LNG Project Awards Technip USA a FEED Contract Award
LNG project in Mexico moves closer to FID in 2021.
Leviathan Offshore Platform To Empty Natural Gas
A fault was identified at the Leviathan platform’s production system. This comes a month after a malfunction was discovered at the project’s subsea pipeline.
Freeport LNG Project Introduces Feed Gas to Train 3
Initial production at Freeport LNG Train 3 is expected in the first quarter. The project’s final commissioning stage included feed gas.
Alaska LNG Project Receives Environmental Impact Statement
The Alaska LNG project moves another step closer to a final order, expected in June.
Sempra Energy and Bechtel Units Sign EPC Agreement for Port Arthur LNG
This is the second EPC contract Bechtel signed for Port Arthur LNG. Final investment decision is expected this year.
Cameron LNG Train 2 Starts Commercial Operations 7 Months After Train 1
Train 2 has a projected export capacity of 4 mtpa. Train 3 is expected to reach production in Q2 2020.
Eni Resolves Dispute With Partners To Restart Damietta LNG Plant in Egypt
The Damietta LNG plant is expected online by June 2020. The plant will be owned by ENI, EGAS and EGPC.
AG&P Breaks Ground on Karaikal Port LNG Facility in South India
AG&P breaks ground on Karaikal LNG.
Qatar Delays Western Partnerships for LNG Expansion Project
Qatar has reportedly delayed the selection of Western partners for its massive North Field LNG project.
US Issues Four LNG Export Approvals
Texas facilities get green light to export LNG. US export capacity is expected to almost double over the next 5 years.
Coronavirus Set To Slash Chinese LNG Demand but US LNG Tariff Lift Could Save the Day
The unseasonably warm weather in the northern hemisphere and the rise of the global supply levels has resulted in record-low LNG prices. Adding to that, the coronavirus epidemic in China has reduced business and industrial activity, with January’s LNG imports dropping by about 10% year on year.
Edge LNG’s “Virtual Pipeline” Expands in Marcellus
A producer in the Marcellus Basin selected Edge Gathering Virtual Pipelines 2 to capture and liquefy gas from its stranded wells in Tioga County. Initial operation is underway and is set to be ongoing until at least 2022.
Asian Spot Prices for LNG Take a Dive
Asian spot prices for LNG took a dive to multiyear lows, feeling the pressure of the lack of demand. Holders of previously agreed upon long-term buyer contracts seek renegotiation.
Natural Gas Prices Raise Questions About the Future Energy Mix
Natural gas has emerged as a potentially major player in the energy mix, but what role will price pressures play in sanctioning gas supply projects and in LNG markets?
Venture Global Delays FERC Application Filing Date for Delta LNG
The move allows Venture Global further evaluate pipeline route alternatives that could reduce impacts in tidal marsh environments along the Mississippi River.
Saudi Aramco, Sempra Sign IPPA for Port Arthur LNG
The agreement comes 8 months after Saudi Aramco agreed to take a 25% ownership interest in the southeast Texas project. Phase 1 of the project is expected to produce 11 mtpa of LNG.
First Cargo Shipped From Freeport LNG Train 2
McDermott said the first cargo was a precursor to substantial completion of Train 2. The liquefaction unit began production on 6 December.
US LNG Exports Reach Record Levels in Consecutive Months
Citing shipping data from Bloomberg Finance, the US EIA estimates that LNG exports set consecutive records in October and November 2019. Through the first 11 months of the year, US LNG exports have gone up 61% from their 2018 annual average.
Saudi Aramco Shipping Unit Expresses Interest in LNG Tankers
Bahri, Saudi Arabia's national shipping carrier, is looking into chartering as many as 12 LNG tankers starting in 2025, according to a new Reuters report. The EOI may be part of Saudi Aramco's expansion into LNG trading.
First Deck Stacking Operation Completed for Coral FLNG Topsides Modules
The Eni-operated project will be the first FLNG vessel deployed in a deepwater field offshore the African continent upon its projected 2022 startup. Samsung Heavy Industries completed the operation at its shipyard in Geoje, South Korea.
Shell, Energy Transfer Issue Tender Package for Lake Charles Project
The tender invites EPC contractors to develop a commercial bid for the lump-sum turnkey contract based on a fully developed scope related to design, engineering, technical, and safety specifications for the project. Commerical bids are expected next year.
BP, Total Sign Supply Deals With ADNOC LNG
ADNOC said the agreements will maximize its access to new markets, effectively booking out the majority of its LNG production through the start of 2022.
Woodside Reaches FID on Pluto-NWS Interconnector Pipeline
The pipeline is the first step in developing the infrastructure needed to transport gas between Pluto LNG and the Karratha Gas Plant in Western Australia. Woodside is targeting 2022 startup.
Partners Advance Newbuild FLNG Vessel Development for Gulf of Mexico Project
Delfin Midstream announced advancements in partnership with Samsung Heavy Industries and Black & Veatch. By re-purposing existing offshore pipelines and building the FLNG vessels at Asian shipyards, the total capital costs are projected to be around $500–550/tpa.
TechnipFMC’s Newly Named E&C Player To Focus on LNG
Technip Energies will work on a backlog comprising more than 50% in LNG-related business. Retaining the TechnipFMC name, RemainCo will generate nearly 90% of its revenue outside the US and Canada.
Abu Dhabi Investor Commits $50 Million to NextDecade
NextDecade and Mubadala Investment Co. have reached agreement for Mubadala to purchase $50 million of NextDecade’s common stock in a private placement. The capital buoys the development of the Rio Grande LNG export solution linking Permian Basin associated gas to the global LNG market.
ExxonMobil Agrees To Supply Gas for Alaskan LNG Export Project
The deal sees ExxonMobil provide feed gas from its Point Thomson field to Qilak LNG’s proposed export project, which would use icebreaking carriers to export 4 mtpa of LNG to Asia directly from Alaska’s North Slope.
Elba Island LNG To Be Fully Operational By Mid-2020
Kinder Morgan, the majority owner and operator of the Georgia export terminal, said the oft-delayed project should have all 10 trains running by the first half of next year.
Santos Acquires ConocoPhillips's Australian Assets for $1.39 Billion
The deal for ConocoPhillips’s northern Australian portfolio will help the Australian company boost its position in the country’s gas market, as it gains majority ownership in a set of key assets including Darwin LNG and the Barossa project.
Total Expands Partnership With Adani on India’s Gas Market
The agreement—in which Total will reportedly pay $600 million for a 37.4% stake in the Indian gas conglomerate—boosts the supermajor’s LNG market access in India and neighboring countries. It is the latest move in Total’s aggressive expansion of its LNG portfolio.
FERC Delays Jordan Cove Environmental Review
The US Forest Service, which is working with FERC to prepare the review of the export terminal off the Oregon coast, said it only recently received critical information needed to complete amendments to its land and resource management plans. First gas is scheduled for 2025.
German LNG Terminal Narrows List of Potential EPC Contractors
Four companies are now under consideration for the EPC deal, which will include the building of a jetty with two berths for LNG carriers. Located near the Port of Hamburg, Germany's first LNG terminal is scheduled to start up by the end of 2022.
Japan Pledges $10 Billion in LNG Infrastructure
The decision follows a previous $10-billion investment in LNG the country made in 2017. While that investment focused on outside energy supply sources, this one will be used to develop infrastructure in Southeast Asia and the Indian subcontinent.
Excelerate Energy Approved for Philippines Project
Located offshore the city of Batangas, approximately 2 hours south of Manila, the Luzon LNG project will include a fully integrated turnkey FLNG terminal, arranging the necessary supply of LNG and distribution of natural gas across the island of Luzon.
Tellurian Signs $7.5-Billion Deal With India’s Petronet LNG
India’s Petronet LNG Ltd. signed a $7.5-billion agreement to buy into Tellurian Inc.’s proposed LNG terminal in Louisiana in what is described as potentially one of the largest foreign investments in the US to ship shale gas abroad.
Eagle LNG Receives FERC Approval for Jacksonville Facility
The small-scale facility in northern Florida will support the export of LNG to markets that cannot be served by large LNG carriers, including a number of ports in Caribbean nations. Up to 100 LNG carriers are expected to run through the Jacksonville LNG export terminal each year.
Freeport LNG Launches Private Cargo Trading Storefront
The virtual storefront will allow Freeport LNG to match physical, bilateral transactions with potential offtakers in a variety of trading formats. It is expected to launch this November.
Nigeria LNG Nears FID on Train 7 Project
After failing to meet a previous 2018 deadline, the owners of the Bonny Island plant say they are close to sanctioning the expansion project following the signing of a letter of intent to a consortium of Saipem Chiyoda and Daewoo for EPC services. Train 7 will add 8 mtpa to Bonny Island’s production
Novatek Sanctions Arctic LNG 2 Project
With a production capacity of nearly 20 mtpa, Wood Mackenzie says the project would be the largest single project to reach FID. Novatek plans to spend more than $21 billion to launch the project at full capacity. Startup is scheduled for 2023.
Train 2 at Corpus Christi LNG Plant Complete
Operator Cheniere now has seven completed liquefaction trains under its control, with two trains done at Corpus Christi and five at Sabine Pass. First commercial delivery from Corpus Christi is still on track for May 2020.
FERC Gives Positive Review To Sabine Pass LNG Berth Expansion
The berth project would accomodate an increased number of carriers arriving at the LNG export terminal in Louisiana, minimizing delays caused by adverse weather or ship traffic and removing bottlenecks associated with LNG loading.
Freeport LNG Train 1 Begins Production
Freeport marks the sixth major LNG export facility to start operations in the US. Commercial deliveries are expected to begin in September, with Osaka Gas and JERA taking half of the Train 1’s offtake capacity.
July Marks Record Month for Gas Deliveries To US LNG Export Facilities
The US EIA reports that natural gas deliveries producting LNG for export reached 6.0 Bcf/D in July. Deliveries to LNG export facilities have been the fastest growing among all natural gas consumption sectors this year.
Shenzhen Gas Set to Open New LNG Terminal
The launch will make Shenzhen Gas the second Chinese city gas distributor backed by a local government to own an LNG import facility, following Shenergy Group’s Shanghai import terminal. Eni is set to deliver an initial cargo to the facility.
Australia Set To Become King of LNG Exports
Exports capacity has been rising for a decade and is on track to become the world leader within a year.
Kosmos on Track for Mauritania, Senegal Deal
The E&P company said that a reduction in its interests for projects off the coast of the West African nations should still happen by the end of this year. This includes the large Greater Tortue Ahmeyim LNG project, which is set to start up in 2022.
Price and Cost Risks Drive Race To Secure FID, FEED, and Contractors for Global LNG
Approximately $200 billion in projects worldwide are racing to be approved over the next 2 years. The race is not just to make FIDs on projects, but also to enter FEED work to lock in contractors before others do.
Leviathan Partners Mulling FLNG Facility
The facility would enable exports from one of the world’s largest gas discoveries to new markets, primarily in Europe and Asia. The Leviathan partners have signed deals to export gas to Middle Eastern countries such as Egypt and Jordan.
Vaca Muerta Growth Drives Argentina LNG Exports
Production from the Vaca Muerta now accounts for 23% of Argentina’s natural gas output. With only 4% of the shale play’s acreage in development, the US EIA says the country is in position to boost LNG exports in the coming years.
ADNOC and CNOOC To Collaborate in Upstream, Downstream, and LNG
ADNOC and CNOOC will explore multiple new opportunities for collaboration across the upstream and downstream sectors in the UAE and China.
Freeport LNG Train 1 Enters Final Commissioning Stage
The introduction of feed gas into Train 1 of the natural gas liquefaction and LNG export facility marks the transition from construction to startup. Upon startup, Freeport LNG will become the first world-scale electric LNG liquefaction plant in North America.
Twelve Companies Vie To Build Bangladesh’s First Onshore LNG Import Terminal
The country has scrapped plans to build additional FSRUs, and decided instead on land-based LNG as the mainstay of its energy mix
InfraStrata Considers Deal For UK FSRU Project
The UK-based energy infrastructure development firm has entered an exclusivity agreement with Meridian Holdings for an FSRU project offshore northwest England. The project would include a floating FLNG receiving port.
Africa Takes the Lead in Record Year for LNG
Driven by Mozambique’s Area 1 and Area 4 projects, Africa is poised to become the dominant LNG investment destination by the end of this year, with the continent seeing nearly one-third of total greenfield investment.
US LNG Export Capacity Growth Will Keep Floor Under Natural Gas Prices
With almost 10 Bcf/D of liquefaction capacity scheduled to go into service by 2025, a new report from Moody’s says that US LNG exports should help solidify a floor under natural gas prices as LNG markets see a shortfall in supply.
Anadarko Sanctions Mozambique LNG Project
The $20-billion FID is the largest ever for a sub-Saharan oil and gas project. The project’s location on the African east coast puts it in optimal position to sell LNG to the lucrative Asian market.
Inpex Inks Deal With Indonesia for Abadi LNG Project
The Japanese operator will submit a development plan to the Indonesian government within the next few weeks, with FID for the $20-billion project coming around 2022. Abadi LNG is projected to deliver 9.5 mtpa of LNG.
Shell Ships First LNG Cargo From Prelude
First cargo from the world’s largest floating LNG project comes in the midst of low LNG prices sparked by a global supply boost. Prelude is expected to produce 3.6 mtpa for Shell.
Tank-Capacity Growth Suggests LNG Boom in Ship Fuel
Exponential growth in LNG tank capacity, fueled by the introduction of LNG fuel in shipping sectors, indicates a possible shift in the fuel mix.
Joint-Venture Partners Contract With Anadarko for Mozambique Area 1
Anadarko Petroleum selects JV companies to provide EPC for the onshore LNG development. Saipem scores the biggest contract in its history. Work will begin upon FID, expected this month.
Cheniere Makes FID on Sabine Pass Train 6, Signs Gas Deal With Apache for Corpus Christi Facility
Sabine Pass Train 6 gets the nod, Bechtel gets the go-ahead for construction. Apache Corp. signed a deal with Cheniere to supply natural gas produced from its Permian Basin Alpine High area to the Corpus Christi LNG facility
Freeport LNG Authorized for Additional Exports
The US Department of Energy authorized the export from the terminal’s fourth liquefaction train to countries that have no free trade agreement with the US.
Tariffs Pack a Bigger Punch Than Tax Incentives
Louisiana state granted a tax incentive to LNG Ltd. for its Magnolia project in Lake Charles. Although a beneficial development, it’s a drop in the bucket in the company’s progress toward FID.
Saudi Aramco Buys Into Port Arthur LNG
The deal with project developer Sempra includes Saudi Aramco netting 5 mtpa of LNG offtake and a 25% equity stake in Phase 1 of the export terminal, which may reach FID later this year.
Santos P'nyang Farm-In Advances PNG LNG Expansion
Santos signed a binding letter of intent to acquire a 14.3% interest in Petroleum Retention License 3, which contains the P’nyang natural gas field in Papua New Guinea.
Mozambique Approves Rovuma LNG Development Plan
A final investment decision is expected later this year on the project, which will involve the construction of two trains with a combined annual capacity of more than 15 mtpa of LNG.
Trade War Leaves LNG Projects Vulnerable
The escalation of the trade war between the US and China could jeopardize several LNG megaprojects that are awaiting final approval.
Novatek Moves Closer Toward FID on Arctic LNG 2
The Russian independent will likely sell an ownership stake to an additional partner in the coming weeks, joining Total, CNOOC, and CNPC. FID is expected to take place later this year.
Feds Green-Light Driftwood and Port Arthur LNG Exports
Driftwood is authorized to export up to 3.88 Bcf/D, and Port Arthur gets go-ahead for 1.91 Bcf/D of natural gas as LNG.
US Exceeds One-Year Mark as Natural Gas Exporter
An EIA report shows natural gas exports reaching 4.6 Bcf/D in February, the 13th consecutive month in which the country's natural gas exports exceeded its imports. Exports are projected to reach 7.5 Bcf/D by 2020.
ExxonMobil Signs 20-Year LNG Agreement With Zhejiang Energy
ExxonMobil signed a sales and purchase agreement with Zhejiang Provincial Energy Group for LNG supply. Zhejiang Energy is expected to receive 1 mtpa over 20 years.
Will LNG Drive Asia’s Sustainable Future?
Coal remains the biggest challenge to LNG in Asia.
Shell Departs Gazprom-Led Baltic LNG Project
The move comes weeks after Gazprom announced a final development concept for the project. Other projects Shell is developing with Gazprom, including the Sakhalin 2 export facility, will not be impacted by the decision.
Total, ExxonMobil, Oil Search Sign Papua LNG Agreement
The gas agreement clears the way for the FEED phase; FID expected in 2020.
LNG Market Stands at Infrastructure Crossroads
More flexible approaches to financing, production, and trading are crucial to meeting world’s needs, new study finds.
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