Post Tagged with: "LNG"

Qatargas signs LNG SPA with Kuwait

Qatargas signs LNG SPA with Kuwait

LNG Industry Qatargas has announced the signing of a new, long term LNG sale and purchase agreement (SPA) with Shell to deliver 1 million tpy of LNG to the State of Kuwait, commencing this year. Commenting on the signing of the SPA, Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, said, “We are pleased to announce this new long term agreement between Qatargas and Shell for the supply of LNG to the State of Kuwait, following the recent agreement signed between Qatar Petroleum and Kuwait Petroleum Corporation. These agreements demonstrate our commitment to the State of Kuwait, which is a very important LNG market and is part of our strive to be the LNG supplier of choice for our customers. I would like to take this opportunity to thank our valued partner, Shell, with whom we share a long history of fruitful collaboration and we look forward to[Read More…]

February 11, 2020 - 6:31 am Closing Bell Story, International, LNG
Image Courtesy: Novatek

Russia gives green light for new LNG transshipment terminal

World Maritime News Russia’s federal autonomous institution Glavgosexpertiza has reviewed and approved the design documentation and engineering survey results for the construction of an LNG transshipment terminal in the Kamchatka Territory.  Back in October 2017, the Kamchatka government and PJSC Novatek signed an agreement aimed at developing a sea terminal on the southeast coast of the Kamchatka Peninsula. The terminal is intended for the transshipment of liquefied natural gas delivered from the Yamal Peninsula by ice-class gas carriers and transferred to ordinary gas carriers for further gas transportation to the Asia-Pacific region. According to Glavgosexpertiza, the project will optimize LNG supplies from the Arctic, thereby boosting the development of the Northern Sea Route and trade and economic ties of the Kamchatka Territory. The new transshipment facility is expected to be constructed in five phases. Once the first four stages are complete, the terminal would have an annual cargo turnover of[Read More…]

February 8, 2020 - 8:16 am Closing Bell Story, Energy News, International, LNG
Source: Reuters

Free-falling LNG prices wreak havoc on trade amid coronavirus fears

Reuters SINGAPORE – Record low prices for liquefied natural gas (LNG) are roiling the global gas market, creating havoc as traders rush to find alternative locations for cargoes with Chinese buyers rejecting shipments amidst the coronavirus epidemic. Asian spot prices for LNG have already tumbled to troughs of $3 per million British thermal units (mmBtu) – less than half of what they were at the same time last year. At least one cargo bound for India has already traded below $3/mmBtu, down 30 cents within a week, traders said. Concerns that Chinese companies could back out of contracts because of the impact of the coronavirus outbreak have slowed oil and gas sales into China. Reuters reported on Thursday that China’s top LNG buyer China National Offshore Oil Corporation (CNOOC) declared force majeure on some prompt LNG deliveries with several suppliers. “Prices are free-falling just within this week,” a Singapore-based LNG[Read More…]

Source: Houston Chronicle

Former Cheniere executive now at helm of LNG export project in Mexico

Houston Chronicle Former Cheniere Energy executive Doug Shanda is now at the helm of a Houston company seeking to build an liquefied natural gas export terminal along the Pacific Coast of Mexico. In a Monday morning statement, Houston liquefied natural gas company Mexico Pacific Limited announced that Shanda has been named as president and CEO. Shanda is taking the reins of the company from Josh Loftus, a former GE Oil & Gas executive who had served as president since May 2018. Mexico Pacific Limited is seeking to build an LNG liquefaction plant and export terminal along the Pacific Coast in Puerto Libertad, Sonora. The proposed facility would receive low-cost natural gas from the Waha Hub in the Permian Basin of West Texas through an already existing cross-border pipeline. Primarily focused on the Asian market, shipments from the proposed facility would not need to pass through the Panama Canal, cutting down[Read More…]

February 3, 2020 - 3:30 pm Closing Bell Story, Energy News, LNG, Natural Gas News
Source: Houston Chronicle

Some LNG-powered ships are leaking powerful greenhouse gas

Houston Chronicle One of the shipping industry’s great hopes for improving its environmental performance — engines powered by liquefied natural gas — won’t offer the benefits that many vessel owners are hoping for. That’s the conclusion of a nonprofit that analyzed the emissions from different types of vessels that use the fuel. Some types of LNG-powered ships leak so much methane — a contributor to global heating — that the environmental damage they cause over a 20-year period is far more acute than equivalent vessels run on conventional fuels. The criticism is a brickbat for LNG, a fuel that’s long been viewed as means of helping industries to cut carbon emissions and hit climate goals. The two-decade timeline matters because the most ambitious global climate target is to reach net zero emissions by 2050 in order to keep a temperature increase below 1.5 degrees Celsius compared to pre-industrial times. “Switching[Read More…]

January 28, 2020 - 12:30 pm Closing Bell Story, Energy News, Marine Shipping
Source: Houston Chronicle

Global LNG poised for terrible year as new supply floods market

Houston Chronicle Liquefied natural gas prices are poised to test record lows this year thanks to an onslaught of new supply and warmer winter temperatures curbing consumption. The startup of new export projects from Australia to the U.S. has flooded the market, while brimming stockpiles in Europe and an expected slowdown in Chinese demand have dumped cold water on consumption prospects. LNG for spot delivery to North Asia is on track to hit an all-time low this summer, while gas prices in Europe and the U.S. are trading at the weakest seasonal levels since 1999. “The global oversupply of LNG has been building and building and building,” said Ron Ozer, founder of gas-focused hedge fund Statar Capital LLC in New York. “The gas market can’t stomach the oversupply and warm weather, and it’s getting both.” This is what the rock-bottom prices mean for the industry: American Halt U.S. gas exports[Read More…]

January 24, 2020 - 1:00 pm Closing Bell Story, Energy News, International, LNG, Natural Gas News
Source: Houston Chronicle

Exporting natural gas creates carbon footprint rivaling that of coal, data shows

Houston Chronicle In May, while President Donald Trump toured a new $10 billion plant designed to prepare natural gas for export, he made a vow. Such facilities would be good for the environment, he said, or they won’t get approved. The president has greenlit 11 projects so far, bringing the U.S. total to 18. Environmentalists once touted the fuel, nicknamed “freedom gas” by the Trump administration, as a better energy alternative, but an analysis shows the plants’ potential carbon dioxide emissions rival those of coal. Not all the export terminals are completed and in use, but if they were, simply operating them could spew 78 million tons of CO₂ into the air every year, according to data compiled by Bloomberg from environmental filings. That’s comparable to the emissions of 24 coal plants(3), or 18 gigawatts of coal-fired power—more than Kentucky’s entire coal fleet. And those numbers don’t account for the[Read More…]

January 23, 2020 - 11:00 am Closing Bell Story, Energy News, ESG, LNG, Natural Gas News
Source: Houston Chronicle

Magnolia LNG’s supply deal with Vietnam takes another step forward

Houston Chronicle A liquefied natural gas supply deal between the proposed Magnolia LNG export terminal in Louisiana and the Vietnamese government took a major step forward.   In a Dec. 19 decision, the Vietnamese government added the Bac Lieu LNG-to-Power project to its National Power Development Plan. Under the plan, Singapore-based Delta Offshore Energy will build a natural gas-fired power plant in Bac Lieu province and a supporting offshore LNG import terminal. LNG Limited, the Australia and Houston-based company developing Magnolia LNG export terminal in Lake Charles, landed a 20-year deal in September to supply 2 million metric tons of liquefied natural gas per year to Delta’s 3,200-megawatt power plant. The addition of the project to Vietnam’s National Power Development Plan clears the path for Delta to negotiate and finalize the power purchase agreement for the natural gas-fired power plant, which had originally been planned as a coal-fired facility. Magnolia[Read More…]

December 27, 2019 - 1:15 pm Closing Bell Story, Energy News, LNG
Photo: TechnipFMC

French half of TechnipFMC split reveals new company name

Houston Chronicle Anticipated split will create two publicly traded companies. The French half of Houston and Paris oil field service company TechnipFMC has revealed its new company name months ahead of an anticipated split that will create two publicly traded companies. Created by the July 2017 merger of Paris-based Technip and Houston-based FMC Technologies, TechnipFMC announced in August that the company will be split into two independent and publicly traded companies that were given the placeholder names RemainCo and SpinCo. In a statement released early Wednesday morning, TechnipFMC announced that SpinCo will be renamed as Technip Energies, a nod to the company’s history and its future in a transition to cleaner sources of power. Technip Energies will be headquartered in Paris where it will become an engineering, procurement and construction company specializing in onshore and offshore liquefied natural gas facilities. In an internal letter sent to all employees, Technip Energies[Read More…]

October 30, 2019 - 7:15 am Closing Bell Story, Energy News, LNG, Offshore, Oilfield Services
Photo: Melissa Phillip, Houston Chronicle / Staff Photographer

Sempra Energy, Mitsui enter deal for future expansions of two LNG export terminals

Houston Chronicle San Diego utility company Sempra Energy and Japanese industrial conglomerate Mitsui & Co. have entered into a memorandum of understanding to expand a liquefied natural gas export terminal in Louisiana and another in Baja California. The two companies are part of a consortium building three liquefied natural gas production units during the first phase of development at the Cameron LNG export terminal in southwest Louisiana. Under the memorandum, the companies have agreed to help each other build two more production units as part of a phase 2 expansion. Sempra and Mitsui also agreed to help each other develop an LNG export terminal at the already existing Energia Costa Azul import terminal along the Pacific Ocean south of Tijuana. Mitsui has agreed to buy up to one-third of the available capacity for phase 2 of Cameron LNG. The Japanese company also agreed to buy up to 1 million tons of[Read More…]

October 28, 2019 - 7:45 am Closing Bell Story, Energy News, LNG
Novatek in talks on LNG transhipment after U.S. sanctions China COSCO tankers

Novatek in talks on LNG transhipment after U.S. sanctions China COSCO tankers

Source: Reuters: Russia’s liquefied natural gas (LNG) producer Novatek is in talks to tranship its Yamal cargoes in Norway or Russia’s Murmansk because it is unsure of the impact of U.S. sanctions on the Chinese COSCO tankers it uses, a Novatek official said. The United States imposed sanctions on Sept. 25 on state-owned COSCO’s subsidiaries, COSCO Shipping Tanker (Dalian) Co and COSCO Shipping Tanker (Dalian) Seaman & Ship Management, for allegedly ferrying Iranian crude. U.S.-listed ship owner Teekay LNG said last week its shipping joint venture in Russia, Yamal LNG, had been “blocked” by the U.S. Treasury because its partner China LNG Shipping (Holding) is 50% owned by COSCO Dalian. The Yamal venture owns four operational and two newly built Arc7-class LNG tankers capable of navigating through Arctic ice, making them key to transporting LNG from Novatek’s Yamal LNG plant in northern Russia. “We have nothing to do with the[Read More…]

October 8, 2019 - 9:52 am China, Closing Bell Story, Crude Oil News
Courtesy of Enbridge

Oil Services Firm TechnipFMC to Split Into Two Publicly Traded Companies

From Reuters Franco-American oil services firm TechnipFMC Plc (FTI.N) said on Monday it would spin off its engineering and construction operations into a separate company, leaving it as a technology-focused equipment supplier to oil and gas companies. TechnipFMC, which had a market capitalization of $10.31 billion, said the new Paris-based company will deal with onshore and offshore oil and gas projects. The split is expected to be final in the first half of 2020. The spin-off comes nearly three years after Technip merged with rival FMC Technologies, creating a leading London-based offshore services company with combined revenue of $20 billion. That deal closed near the nadir of an oil-price crash, when U.S. crude futures fell to about $26 a barrel and prompted cutbacks in spending on new offshore oil and gas development projects. Shares of TechnipFMC rose more than 6% before paring gains to 4.3% shortly before the close. Company[Read More…]

An Oryx Midstream facility (source: Oryx Midstream Services)

Qatar May be Losing the Top Spot as World’s Biggest LNG Exporter

From CNBC Qatar will lose its title as the world’s largest exporter of liquefied natural gas (LNG) within the next year, as Australia ramps up production on a slew of multi-billion dollar export projects. “Australia and Qatar continued to jostle for the title of the world’s largest LNG exporter over the first five months of 2019,” the Australian government said in a recent report. Australia exported more LNG than Qatar in November 2018 and April 2019. But now, the U.S Energy Information Administration (EIA) says Australia is on track to consistently export more LNG than Qatar, as recently commissioned projects such as Wheatstone, Ichthys, and Prelude ramp up production. Prelude, Royal Dutch Shell’s floating LNG facility in a remote field northeast of Broome in Western Australia, shipped its first LNG cargo to customers in Asia in June. The landmark facility, capable of holding 175 Olympic-sized swimming pools of LNG in[Read More…]

Trump Calls on U.S. Firms to Exit China as Trade War Escalates

Trump Calls on U.S. Firms to Exit China as Trade War Escalates

From Reuters President Donald Trump on Friday pressured U.S. companies to leave China after Beijing unveiled retaliatory tariffs on $75 billion in U.S. goods, stoking fears their escalating trade war will tip the global economy into recession. Trump, who has accused China of unfair trade practices and pushed for a deal that would rebalance the relationship in favor of U.S. manufacturers and workers, said on Twitter he will issue a response to Beijing’s latest tariff plan on Friday afternoon. The president was meeting with his trade team at midday, a senior White House official told Reuters. “We don’t need China and, frankly, would be far better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP,” Trump tweeted. “Our great American companies are hereby ordered to immediately start looking for an alternative to China,[Read More…]

Source: Cameron LNG

Cameron LNG Commences Commercial Operations

By Tyler Losier, Energy Reporter, Oil & Gas 360 Train 1 of Sempra’s Cameron LNG project commences commercial operations Sempra LNG, a subsidiary of San Diego-based Sempra Energy (stock ticker: SRE), has begun commercial operations under tolling agreements at Train 1 of its Cameron LNG liquefaction-export project in Hackberry, Louisiana. Previously, Sempra’s Cameron LNG facility had shipped its first commissioning cargo at the end of May of this year. The Cameron LNG facility (source: Cameron LNG) “This is an exciting moment for Cameron LNG and for Sempra Energy,” said Carlos Ruiz Sacristan, chairman and CEO of Sempra North American Infrastructure. “Cameron LNG is exporting liquefied natural gas (LNG) to customers in the… Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

UPDATE: Venture Global Announces Final Investment Decision for Calcasieu Pass LNG

UPDATE: Venture Global Announces Final Investment Decision for Calcasieu Pass LNG

UPDATE: Venture Global Announces Final Investment Decision and Financial Close for Calcasieu Pass LNG… Login or click here to subscribe

August 20, 2019 - 5:00 am Closing Bell Story, Finance, LNG, Natural Gas News, Press Releases
Source: Venture Global LNG

Venture Global Closes on Project Financing for Calcasieu Pass LNG

By Tyler Losier, Energy Reporter, Oil & Gas 360 Proceeds from Venture Global’s debt and equity financing will fully fund the construction and commissioning of its Calcasieu Pass LNG facility Venture Global LNG Inc., headquartered in Arlington, Virginia, has closed on the project financing for its Calcasieu Pass LNG facility and associated TransCameron pipeline in Cameron Parish, Louisiana. The proceeds of the debt and equity financing will fully fund the company’s construction and commissioning of the Calcasieu Pass facility, which is expected to reach commercial operations by 2022. Construction on the facility first began in February of 2019. Location of the Calcasieu Pass LNG facility (source: Venture Global) Accordin… Login or click here to subscribe

Source: Cameron LNG Media Kit

LNG Takes up 7 Percent U.S. Gas Production in July

From The Houston Chronicle U.S. LNG exports have expanded to the point they made up 7 percent of total U.S. natural gas production in July, the Energy Information Administration reported Monday. Last month gas deliveries to LNG export facilities reached 6 billion cubic feet a day, as new export facilities come online along the Gulf Coast. “In the first half of 2019, two new liquefaction trains came online: Cameron LNG Train 1 in Louisiana in May and Corpus Christi LNG Train 2 in Texas in June,” the report read. “Two new LNG export facilities—Elba Island LNG in Georgia and Freeport LNG in Texas—plan to place their first trains in service in the next two months.”     Since 2017 the United States has exported more gas than it consumes, both delivering liquefied gas via tanker overseas and through pipelines to Mexico and Canada. Over the first seven months of this[Read More…]

August 19, 2019 - 6:03 am Closing Bell Story, Energy News, LNG, Natural Gas News, Trade
Trade War Impasse Casts a ‘Dark Cloud’ Over Outlook for US Oil Shipments, Analysts Warn

Trade War Impasse Casts a ‘Dark Cloud’ Over Outlook for US Oil Shipments, Analysts Warn

From CNBC An escalating trade war between the world’s two largest economies is negatively impacting the outlook for U.S. crude shipments, energy analysts have warned, amid fears that China could soon dramatically reduce its intake of American oil. Trade tensions between Washington and Beijing prompted some external observers to warn the outlook for China-bound U.S. crude shipments was firmly skewed to the downside. “Casting another dark cloud over the outlook for U.S. crude shipments is the ongoing U.S.-China trade impasse,” Stephen Brennock, oil analyst at PVM Oil Associates, said in a research note. It was around this time last year that China emerged as the biggest buyer of U.S. crude, Brennock said, but Chinese buyers were now seen as a “virtual shoo-in” to halt their intake of American oil. He explained that while losing what was once your biggest customer could hardly be conducive to sustained growth, any drop-off in[Read More…]

Australia Poised to Become World’s Largest LNG Exporter

Australia Poised to Become World’s Largest LNG Exporter

From The Houston Chronicle Within the next 12 months Australia is likely to surpass Qatar as the world’s largest exporter of liquefied natural gas, the Energy Information Administration is forecasting. Australian LNG capacity reached 11.4 billion cubic feet a day this year, more than four times what it was in 2011 and surpassing Qatar’s capacity. Australia “exported more LNG than Qatar in November 2018 and April 2019,” the EIA said in a report Monday. “Within the next year, as Australia’s newly commissioned projects ramp up and operate at full capacity, EIA expects Australia to consistently export more LNG than Qatar.”     With export facilities coming online at a fast clip along the Gulf Coast, the United States is seeking to challenge Australia and Qatar’s dominance in the LNG market. But for now the United States is a distant third, with exports of less than 6 billion cubic feet a[Read More…]

Chevron Starts Burying CO2 off Australia at Huge Gorgon Storage Project

Chevron Starts Burying CO2 off Australia at Huge Gorgon Storage Project

From Reuters Chevron Corp (CVX.N) said on Thursday it has launched one of the world’s largest carbon capture and storage projects, injecting CO2 into a deep reservoir under an island off Western Australia at its Gorgon LNG project. The carbon storage project was delayed by more than two years after Chevron discovered problems with valves and pipeline equipment during commissioning of the A$2.5 billion ($1.7 billion) injection system. Gorgon is the biggest emitter of carbon emissions out of Australia’s 10 LNG plants, with gas from the Gorgon field containing 14% CO2. Growth in LNG exports has been a big contributor to Australia’s rising CO2 emissions, according to the Environment and Energy Department. “We are pleased to reach the first milestone of safely starting the operation of the Gorgon carbon dioxide injection system, one of the world’s largest greenhouse gas mitigation projects ever undertaken by industry,” Chevron Australia Managing Director Al[Read More…]

Japan LNG Buyers Talk Tough as Spot Prices Drop to 3-Year Lows

Japan LNG Buyers Talk Tough as Spot Prices Drop to 3-Year Lows

From Reuters An inexorable decline in spot market prices for liquefied natural gas (LNG) is pushing utilities in Japan to be more aggressive in price reviews built into traditional long-term contracts linked to oil prices, lawyers and analysts said. The utilities are also looking to buy more LNG on the spot market, where prices LNG-AS are plumbing three-year lows and are around half the average contract import price for buyers in Japan, the world’s biggest importer of the fuel for power generation and industrial use. The tougher stance marks a shift for Japanese utilities, which have long favored stability of supply over price, partly because they have been able to pass on costs to consumers. But liberalization in Japan’s energy markets means the old guard utilities are losing customers to new entrants and they are desperate to cut costs. “Given the gas and power markets liberalization and intensifying domestic competition[Read More…]

GE’s Baker Hughes Beats Estimates on International Demand, LNG Drilling

GE’s Baker Hughes Beats Estimates on International Demand, LNG Drilling

From Reuters General Electric Co’s oilfield services arm, Baker Hughes, beat quarterly profit estimates on Wednesday, driven by higher LNG drilling and demand for its oilfield services in international markets, sending its shares up nearly 6%. Revenue in the oilfield services segment, which constitutes a majority of the company’s operations, rose 14% to $3.26 billion in the second quarter, led by growth in the Middle East, North Sea and Europe. Last week, bigger rivals Schlumberger NV and Halliburton Co also posted higher quarterly revenue from regions outside North America, benefiting from an uptick in demand from international markets that helped make up for lower sales to U.S. producers reluctant to spend. On a post-earnings call with analysts, Chief Financial Officer Brian Worell said the company’s outlook for 2019 was unchanged as a substantial number of equipment orders being booked in its turbomachinery and process solutions (TPS) business do not start[Read More…]

Japan’s Osaka Gas to Acquire Haynesville Shale-Focused American E&P

Japan’s Osaka Gas to Acquire Haynesville Shale-Focused American E&P

By Tyler Losier, Energy Reporter, Oil & Gas 360 Japanese company Osaka Gas to acquire Texas-based Sabine Oil & Gas Corporation Osaka Gas, a vertically integrated Japanese energy company, has entered into a definitive agreement with Houston-based Sabine Oil & Gas Holdings to acquire 100% of the outstanding shares of its subsidiary, Sabine Oil & Gas Corporation. Should the deal close as expected, it would mark the first time in history that a Japanese company has purchased a U.S.-based shale gas developer. Source: Sabine Oil & Gas Since July of last year, Osaka has worked to acquire a 35% interest in the eastern half of Sabine’s asset base. With this latest agreement, however, the company will now own all … Login or click here to subscribe

Excelerate Energy’s EXCALIBUR LNG carrier (source: PR Newswire)

YPF Partners with Excelerate on LNG Exports

By Tyler Losier, Energy Reporter, Oil & Gas 360 YPF S.A. reaches preliminary agreement with Excelerate Energy to charter LNG carrier YPF S.A., the state-operated oil company of Argentina, has reached a preliminary agreement with Excelerate Energy, a U.S.-based LNG company, for the charter of a carrier to export LNG produced from YPF’s TANGO floating LNG unit. Both parties will execute the final agreement in the coming days, with the objective of starting operations during the first week of September. Excelerate Energy’s EXCALIBUR LNG carrier (source: PR Newswire) “We continue progressing in our ambition to add value to Argentine natural gas and to export surpluses during those months of low local consumption, to fully e… Login or click here to subscribe

Source: Wintershall Dea

Total Plans $5 Billion of Asset Sales to Future-Proof Business

From Reuters French energy giant Total (TOTF.PA) will sell about $5 billion of assets, mostly from its exploration and production business as it sharpens its focus on low-breakeven projects that can weather weak oil prices, it said on Thursday. The announcement followed a 19% drop in second-quarter adjusted net profit to $2.9 billion, which it attributed to unfavorable market factors including low oil prices, sharp declines in gas and sliding refining margins. Chief Executive Patrick Pouyanne pointed to continuing volatility in markets. Though Brent crude averaged $69 a barrel in the second quarter, up 9% on the previous three months, natural gas prices fell 36% in Europe and 26% in Asia, he said. The company has been on an acquisitions spree as Pouyanne has overseen its expansion in gas and electricity in particular and said it is now preparing for the future by focusing on core strengths in the gas[Read More…]

Source: Freeport LNG

Freeport LNG Train 1 Reaches Final Commissioning Stage

By Tyler Losier, Energy Reporter, Oil & Gas 360 Facility will be able to produce a total of 2.2 Bcf per day upon completion Train 1 of the Freeport LNG project, located on Quintana Island in Freeport, Texas, has reached its final commissioning stage, including the introduction of feed gas into the liquefication facility. The project is being constructed by engineering company McDermott (stock ticker: MDR), in partnership with the Zachary Group and the Japanese-based Chiyoda Corporation. Mark Coscio, McDermott’s senior vice president for North Central and South America noted that the Freeport facility is the “first of its kind in the US, with the largest electric motor driven refrigeration compressors.” “Once Train 1 is … Login or click here to subscribe

EcoStim Energy Solutions provides completion and stimulation services in Argentina's Vaca Muerta shale play.

Seasonal Demand Patterns Give Argentinian LNG a Unique Opportunity

By Tyler Losier, Energy Reporter, Oil & Gas 360 Vaca Muerta production growth leads to LNG exports In the past few years, Argentina’s natural gas production has been steadily rising, mainly due to an increased focus on the Vaca Mueta shale and tight gas play, located in the Neuquén Basin. Currently, production from the Vaca Muerta accounts for 23% of Argentina’s total gas yield, and according to EIA estimates, the play has technically recoverable resources consisting of 308 Tcf of natural gas. In comparison with North American formations, the Vaca Muerta is about on par with the Eagle Ford Basin, located in southern Texas. Source: EIA Despite only 4% of the Vaca Muerta entering into the development phase so far, Argenti… Login or click here to subscribe

Source: Bloomberg

Tropical Storm Barry Puts 70% of Newly Minted U.S. LNG Capacity at Risk

From Bloomberg Sabine Pass, Cameron terminals may be in Barry’s path, U.S. natural gas exports have soared amid shale boom Tropical Storm Barry is highlighting the risks that Gulf of Mexico storms pose to America’s newly expanded liquefied natural gas export capacity. Cheniere Energy Inc.’s Sabine Pass export terminal and Sempra Energy’s just-built Cameron facility are potentially in the path of the storm as it churns toward Louisiana. Together, the terminals account for about 70% of America’s capacity to ship LNG overseas. Two gas tankers are waiting to approach Sabine Pass, while a third recently departed, according to ship tracking data compiled by Bloomberg. Another terminal, Venture Global LNG Inc.’s Calcasieu Pass in Cameron Parish, is under construction. Sabine Pass continues to operate and Cheniere doesn’t expect major impacts to operations from Barry, the company said Thursday. Gas flows to the facility via pipeline have dropped about 20% since July[Read More…]

Source: Royal Dutch Shell

Total Invests $500 Million in Tellurian, Enters Into LNG SPA

By Tyler Losier, Energy Reporter, Oil & Gas 360 Total commits to purchasing an aggregate of 2.5 Mtpa Total S.A. (stock ticker: TOT), through its subsidiaries Total Delaware and Total Gas & Power North America, has entered into a definitive agreement to purchase 1 Mtpa from Tellurian’s (stock ticker: TELL) Driftwood LNG terminal. Total will also invest $500 million in Tellurian subsidiary Driftwood Holdings L.P. In addition, Total Gas & Power has entered into a sales and purchase agreement (SPA) with Tellurian to acquire an added 1.5 Mtpa of LNG offtake volumes from Driftwood. The SPA is for the purchase of LNG free on board at a price based on the Platts Japan Korea Marker. Source: Driftwood LNG The terms of the… Login or click here to subscribe