Poland’s PGNiG Finalizes Contract for Port Arthur LNG Supplies
Posted on Dec 19, 2018
Polish Oil and Gas Company (“PGNiG”) announced that it has signed a 20-year contract with Port Arthur LNG, a subsidiary of Sempra Energy, for the sale and purchase of LNG from the proposed Port Arthur LNG terminal in Jefferson County, Texas. According to the press release, PGNiG will buy 2 million tonnes of LNG annually on a FOB (Free On Board) basis, and will be responsible for shipping the LNG from the Port Arthur terminal to the final destination. PGNiG plans to deliver cargoes to domestic customers in Poland or trade LNG on the global market, once operations...
Continue Reading
FERC Releases Draft EIS for Annova LNG Brownsville Project
Posted on Dec 17, 2018
FERC Staff has released a draft environmental impact statement (EIS) for the proposed Annova LNG Brownsville liquefaction and LNG export terminal project (“Project”) on the Brownsville Ship Channel in Cameron County, Texas. The Project would include a new LNG export terminal capable of producing up to 6.95 million metric tons per year of LNG for export. The draft EIS concludes that approval of the Project would result in some adverse environmental impacts. The draft EIS goes on to note, “[h]owever, with the mitigation measures recommended in the EIS and Annova’s proposed mitigation measures,...
Continue Reading
Tellurian and Vitol sign MOU for 15-year LNG sale
Posted on Dec 17, 2018
Tellurian Inc. (Tellurian) has announced that its subsidiary, Tellurian Trading UK Ltd. (Tellurian Trading), has entered into a Memorandum of Understanding (MOU) with Vitol Inc. (Vitol) to supply 1.5 million tonnes per annum of LNG from Tellurian Trading’s LNG offtake capacity at the proposed Driftwood LNG export terminal on Calcasieu River in Calcasieu Parish, La. The transaction price is based on the Platts Japan Korea Marker (JKM) and is for a minimum term of 15 years. Under the MOU, Tellurian and Vitol have agreed to negotiate a LNG Sale and Purchase Agreement (SPA) under which Vitol...
Continue Reading
First Commissioning Cargo Departs Cheniere’s Corpus Christi Liquefaction Facility
Posted on Dec 11, 2018
Cheniere Energy, Inc. (“Cheniere”) announced today that the first commissioning cargo of LNG “has loaded and departed from its Corpus Christi liquefaction facility in Texas, marking the first export of LNG from the state and from a greenfield liquefaction facility in the lower 48 states.” The Corpus Christi liquefaction facility’s first train produced first LNG in November and is expected to reach substantial completion in the first quarter of 2019. Train 2 is expected to reach substantial completion in the second half of 2019, and Train 3 in the second half of 2021....
Continue Reading
EIA: U.S. LNG export capacity to more than double by the end of 2019
Posted on Dec 11, 2018
The U.S. Energy Information Administration (“EIA”) projects that U.S. LNG export capacity will reach 8.9 Bcf/day by the end of 2019, making it the third largest in the world behind Australia and Qatar. Currently, U.S. LNG export capacity stands at 3.6 Bcf/day, and it is expected to end the year at 4.9 Bcf/day once the Cameron LNG terminal in Cameron Parish, La., and Freeport LNG terminal on Quintana Island, Texas, become...
Continue Reading
Gail India Looking to Exchange Cove Point LNG Cargoes
Posted on Nov 30, 2018
Reuters reports that Gail India is looking to exchange three LNG cargoes during the first quarter of 2019. According to the report, Gail is offering one LNG cargo per month from the Dominion Cove Point LNG terminal in Lusby, Md., for loading in the first quarter of 2019, in exchange for corresponding deliveries to India. Gail India has 20-year deals to buy 5.8 million tonnes per year of U.S. LNG, split between the Cove Point LNG terminal and Cheniere Energy’s Sabine Pass LNG terminal in Cameron Parish, La. The article reports that due to only a few LNG tankers being available to ship the LNG...
Continue Reading
Financing a Challenge to European Imports of U.S. LNG
Posted on Nov 30, 2018
Bloomberg reports that Andree Stracke, chief commercial officer at German company RWE AG’s trading unit, says that one of the challenges in getting U.S. LNG to Europe is a lack of financing. RWE AG is Germany’s biggest power producer which signed two contracts for U.S. LNG supply this year. According to the report, “to minimize price risk, lenders to U.S. projects typically require sales of future production to be based on Henry Hub, the U.S. gas benchmark. But European buyers want rates linked to their markets.” U.S. banks apparently will not lend against European gas...
Continue Reading