Friday 23 February 2024

Woodside To Sell 15.1% Scarborough Interest To JERA

Woodside has broadened its strategic relationship with JERA through a transaction that involves three core elements: equity in the Scarborough Joint Venture; LNG offtake; and collaboration on opportunities in new energy and lower carbon services. 

Woodside has executed a binding sale and purchase agreement with JERA for the sale of a 15.1% non-operating participating interest in the Scarborough Joint Venture (JV) for an estimated total consideration of US$1,400 million.2 This comprises the purchase price of approximately $740 million, and reimbursement to Woodside for JERA’s share of expenditure incurred from the transaction effective date of 1 January 2022. Completion of the transaction is expected in the second half of 2024. 

Woodside and JERA have also entered into a non-binding heads of agreement for the sale and purchase of six LNG cargoes on a delivered ex-ship basis per year for 10 years commencing in 2026 from Woodside’s global portfolio. 

A non-binding agreement for new energy collaboration including potential opportunities in ammonia, hydrogen, carbon management technology and carbon capture and storage was also signed to support common decarbonisation ambitions. 

Woodside CEO Meg O’Neill welcomed the broadened strategic relationship with JERA. 
“Woodside welcomes Japan’s largest utility, JERA, into the Scarborough Joint Venture. This builds on a long history of collaboration, starting in 1989 with LNG sales from the North West Shelf to JERA’s parent companies Tokyo Electric and Chubu Electric. “JERA’s participation in the Scarborough Joint Venture, which will also include LNG Japan, is a further demonstration of the importance of the project to Japanese customers and confidence in long-term demand.

“Scarborough is a world-class project which will provide reliable energy for our customers in the Asian region, including in Japan. LNG continues to be an important energy source for Japan and one which supports the country’s decarbonisation ambitions. 

“In Australia, the Scarborough Energy Project will provide local jobs and contracting opportunities and deliver tax revenue to State and Federal Governments. 

“We are also looking forward to exploring new energy and business opportunities alongside JERA. These have the potential to further our shared ambitions to develop new energy value chains between Australia and Japan,” she said. 

Yukio Kani, JERA Global CEO and Chair said, “Solving the world's energy issues requires deep collaboration to tackle challenges one by one with reliable partners. I am grateful for the open and engaging dialogue I have had with Woodside CEO Meg O’Neill. I look forward to further developing our relationship with Woodside, a global player in LNG, and to promote new initiatives to achieve decarbonisation.” 

Completion of the Scarborough equity transaction is subject to conditions precedent including Foreign Investment Review Board approval, National Offshore Petroleum Titles Administrator approvals, Western Australian Government approvals and satisfaction of requisite financing approvals. 

The transaction also includes an option for JERA to acquire a 15.1% non-operating participating interest in the Thebe and Jupiter fields as well as a non-binding agreement that outlines a long-term collaboration to pursue opportunities for additional feed gas and joint investment in offshore gas fields for future tieback to the Pluto LNG facility via Scarborough infrastructure. A non-binding agreement has also been signed for Woodside to provide carbon management services to assist JERA to meet its obligations associated with its share of carbon emissions from the Scarborough Joint Venture. 

Following completion of the sale of equity to JERA, Woodside will hold a 74.9% interest in the Scarborough Joint Venture and remain as operator.

About Scarborough 
The Scarborough Energy Project comprises the Scarborough Joint Venture, the Pluto Train 2 Joint Venture and modifications to Pluto Train 1 to process Scarborough gas. The Scarborough Joint Venture includes the Scarborough field and associated offshore and subsea infrastructure. 

The Scarborough field is located approximately 375 km off the coast of Western Australia and the reservoir contains less than 0.1% carbon dioxide. Scarborough gas will be processed at the Pluto LNG facility, where Woodside is currently constructing Pluto Train 2. Woodside is operator of Pluto LNG and Pluto Train 2. 

In August 2023, Woodside entered into a sale and purchase agreement with LNG Japan for the sale of a 10% non-operating participating interest in the Scarborough Joint Venture.

Thursday 15 February 2024

Chesapeake Energy Corporation, Delfin LNG And Gunvor Sign Long-Term LNG Liquefaction Offtake Agreement Indexed To Japan Korea Marker

Chesapeake Energy Corporation (NASDAQ: CHK, together with certain of its subsidiaries, collectively, "Chesapeake"), Delfin LNG LLC ("Delfin") and Gunvor Group Ltd, through Gunvor Singapore Pte Ltd ("Gunvor"), today announced the entrance into a liquefied natural gas (LNG) export deal that includes executed Sales and Purchase Agreements ("SPA") for long-term liquefaction offtake.

Under the SPA, Chesapeake will purchase approximately 0.5 million tonnes ("mtpa") of LNG per annum from Delfin at a Henry Hub price and contract targeted start date in 2028 then deliver to Gunvor on an FOB basis with the sales price linked to the Japan Korea Marker ("JKM") for a period of 20 years. These volumes will represent 0.5 mtpa of the previously announced up to 2 mtpa HOA with Gunvor.

Nick Dell'Osso, Chesapeake President and CEO, said, "Today's announcement cements an important step on our path to 'Be LNG Ready' and is further recognition of the depth of our portfolio and strength of our financial position. We are pleased to formalize our agreement which provides diversification and access to global LNG pricing while enabling the delivery of affordable, reliable, lower carbon energy to markets in need."

Dudley Poston, Delfin CEO, said: "We are excited to partner with a premier company like Chesapeake. We believe our unique liquefaction solution provides Chesapeake with commercial flexibility with a reduced environmental footprint, while providing a much-needed source of additional supply to key US allies and the global LNG market."

Kalpesh Patel, Co-Head of LNG Trading and a member of the Executive Committee of Gunvor, said, "This deal represents an important step in finalizing the 0.5 mtpa out of our total of 2.0 mtpa arrangement with Chesapeake, while expanding our existing cooperation with Delfin. We continue to provide reliable and competitive logistics services to our partners by utilizing our fleet consisting of vessels procured via term charters and equity ownership. Gunvor looks forward to establishing additional agreements with the companies in the near future."

Friday 9 February 2024

VNG H&V signs gas supply contract with Algerian state-owned energy company SONATRACH

Leipzig-based gas trader VNG Handel & Vertrieb GmbH (VNG H&V), a 100% subsidiary of VNG AG, and the Algerian state-owned energy company SONATRACH have reached an important milestone with the signing of a medium-term gas supply contract. The agreement was signed on February 8, 2024 in Algiers, Algeria, and underscores the close cooperation between the two companies.

Ulf Heitmüller, Chairman of the Board of Management of VNG AG, commented on the conclusion of the contract: "We are delighted that we have successfully concluded a gas supply contract with Sonatrach. VNG is thus the first German company to purchase pipeline gas from Algeria. The contract lays the foundation for a trusting supply relationship, opens up new perspectives and strengthens the German-Algerian energy partnership. In addition to natural gas from Algeria as an important raw material for the energy transition, the long-term goal is to establish a hydrogen partnership with Sonatrach and to import green hydrogen from Algeria to Germany in the future. The purchase and transit of Algerian pipeline gas to Germany is an additional diversification of our supply portfolio, underlines our position as a reliable partner for our customers and makes an important contribution to security of supply."

Rachid Hachichi, CEO of SONATRACH, said: "We are very pleased to strengthen our energy partnerships with Europe through the landmark agreement with VNG. It marks the beginning of natural gas deliveries to Germany. We see great potential to further expand this cooperation and expand it to other areas of the energy value chain, such as hydrogen, in the future."

Monday 5 February 2024

Grain LNG signs new deal with Venture Global further strengthening the security of supply of LNG to the United Kingdom

 Today (5 February), Grain LNG and Venture Global have announced the execution of a binding long-term terminal use agreement (TUA) enabling the regasification and sale of LNG from all of Venture Global’s LNG terminals in Louisiana, including CP2 LNG, subject to obtaining necessary federal permits.

Under the agreement, Venture Global will have the ability to access 3 million tonnes per annum (3MTPA) of LNG storage and regasification capacity at the Isle of Grain LNG receiving terminal for sixteen years beginning in 2029, equivalent of up to 5% of average UK gas demand.

This is the second agreement from Grain LNG’s competitive auction process which was launched in September 2023. The successful outcome of the auction further secures the future of Europe’s largest LNG import terminal into the mid 2040s.

Currently undergoing a significant expansion, Grain LNG will soon have enough regasification capacity to service approximately one third of the UK’s gas demand, serving as a gateway to the UK energy market as well as the broader European region. The UK has recently seen a significant rise in LNG imports as Europe has diversified its LNG sources.

With volumes across its projects - Calcasieu Pass, Plaquemines LNG and CP2 LNG - this investment will bolster Venture Global’s status as a strategic supplier to Europe. This flexibility and access to Venture Global’s volumes will be critical to the UK and Europe’s efforts to replace LNG volumes from other suppliers. To date, Venture Global has exported about 75% of its cargoes to Europe.

Katie Jackson, President of National Grid Ventures said: “I’m delighted that we are today able to announce the second result from our September auction, commencing a long term partnership with Venture Global. LNG imports play a critical role in making sure the whole of the UK has the gas it needs, when it needs it, providing a flexible and reliable supply of gas to heat peoples’ homes.

The UK has recently seen a significant rise in LNG imports as Europe has sought alternative energy sources. The addition of our first US customer further diversifies our supplier base, underpins UK consumers’ energy security and guarantees the future of our world-class site out to 2045.”

Mike Sabel, CEO of Venture Global said: "Venture Global is thrilled to announce our first investment in LNG infrastructure outside of the United States, bolstering our ability to supply LNG from all our projects. The Grain LNG terminal is an important gateway to the broader European market, and we look forward to supplying the region through this new access point for years to come.”

Monday 29 January 2024

Excelerate Energy Signs 15-Year LNG Supply Deal with QatarEnergy

Excelerate Energy, Inc. (NYSE: EE) (the Company or Excelerate) and QatarEnergy announced today the execution of a 15-year liquefied natural gas (“LNG”) Sales and Purchase agreement (“SPA”). Under the SPA, Excelerate has agreed to purchase up to 1.0 million tonnes per annum (“MTPA”) of LNG from QatarEnergy on a delivered ex-ship basis in Bangladesh for 15 years, beginning January 2026. Excelerate will purchase 0.85 MTPA of LNG in 2026 and 2027 and 1.0 MTPA from 2028 to 2040.

“This inaugural long term supply agreement with the world’s largest LNG supplier marks a new milestone in our collaboration with QatarEnergy. Qatar delivers approximately 10 percent of its current annual LNG production through Excelerate FSRUs and we are pleased to unlock further new demand in the markets where we operate,” said Steven Kobos, President and Chief Executive Officer of Excelerate. “This agreement highlights our ability to secure critical and affordable LNG volumes for our customers with increasing natural gas demand, while driving stable, long-term economic uplift on our existing infrastructure.”

Commenting on this occasion, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: “We are pleased to sign this agreement with Excelerate for the supply of up to one million tons per annum of LNG to Bangladesh. This new agreement will further strengthen our relationship with Excelerate while also supporting the energy requirements of the People’s Republic of Bangladesh and its stride towards greater economic development.”

As a leading provider of flexible LNG infrastructure and integrated solutions, Excelerate Energy is helping to enhance energy security for countries around the world, while supporting their transition to a clean energy future.

Tuesday 23 January 2024

Wison New Energies Spearheads the Design validation and Pre-FEED for two 3MTPA FLNG Projects in Nigeria

The Design validation and Pre-FEED phase for two 3MTPA FLNG Projects of Ace Gas and FLNG (“ACE”), and Transoceanic Gas and Power (“Transoceanic”)officially commences. In this project, Wison New Energies is entrusted with the FLNG design and EPC. The contract has been successfully signed, and mobilization funds have been disbursed for this phase of the project.

The agreement is to provide the design validation and engineering studies for the design of a 3MPTA facility to support the "design one and build two strategies "to be applied across Ace and Transoceanic projects in offshore Escravos and offshore Pennington respectively. The FLNG will produce, store and offload 3MPTA LNG and associated LPG and condensates for transport to market.

Commenting on the milestone, Mr. Chris Nwokolo - Group CEO from Ace Gas and FLNG said "We’re excited about the collaboration with Wison New Energies. We thank our team, partners and the government for their efforts and support in ensuring this project becomes a reality.”

Mr. Fan Jian, Country Manager of Nigeria from Wison New Energies, remarked “Wison is excited to see the project has been officially entering into the pre-FEED stage. We’re confident that our FLNG EPCIC experience will guarantee a successful and efficient delivery. We are excited about advancing to the next stage in the near future.”

Friday 12 January 2024

EQT Announces Tolling Agreement with Texas LNG

EQT Corporation (NYSE: EQT) ("EQT" or the "Company") today announced it has entered into a Heads of Agreement ("HOA") for liquefaction services from Texas LNG's facility in Brownsville, Texas to produce 0.5 million tons per annum of LNG under a 15-year tolling agreement. Final terms remain subject to negotiation of a definitive agreement between the parties. Texas LNG, a subsidiary of Glenfarne Energy Transition, LLC, anticipates a final investment decision on the project in 2024, with first cargo deliveries expected in 2028.

Toby Z. Rice, President and CEO, said, "This HOA with Texas LNG highlights continued momentum behind EQT's differentiated LNG strategy, which is focused on achieving the best combination of upside exposure and downside risk mitigation. Our tolling capacity gives us direct connectivity to end users of natural gas globally, allowing for end-market structuring flexibility and superior downside protection."

Rice continued, "EQT's low-cost structure, peer-leading core inventory depth and environmental attributes uniquely position us to compete and win in the global energy arena and we believe the international market will increasingly covet our molecules as a long-duration secure supply source that can drive meaningful emissions reductions via coal displacement."

Woodside To Sell 15.1% Scarborough Interest To JERA

Woodside has broadened its strategic relationship with JERA through a transaction that involves three core elements: equity in the Scarborou...