Centrica and Delfin Midstream Inc. today announced the signing of a Heads of Agreement to purchase 1.0 million tonnes per annum (MTPA) of Liquefied Natural Gas (“LNG”) for 15-years on a Free on Board (“FOB”) basis at the Delfin Deepwater Port, located 40 nautical miles off the coast of Louisiana.
This agreement provides Delfin with another key foundation customer which will facilitate a Final Investment Decision (FID) for the first floating LNG export facility in the United States by the end of this year, with operations expected to commence in 2026.
"We are very pleased to enter into this agreement with Centrica and continue to rapidly advance Delfin’s position as a leading source of reliable low-cost energy from the safety of the US at compelling prices. Market demand for long-term LNG continues to be strong and buying activity from Europe and various other geographies has accelerated over the past few months. As a modular project that can make FID in 3.5 MTPA increments, this agreement materially advances our first vessel’s path towards FID later this year"
Dudley Poston, CEO of Delfin
Against a challenging geopolitical and macroeconomic environment Centrica has been working to bolster the UK and Ireland’s energy security both now and over the longer term. Last month Centrica signed an additional £4bn supply agreement with Equinor to supply 4.5 million UK homes through to 2025, and this £7bn agreement with Delfin, which starts in 2026, will underpin the expansion of US LNG export capacity, an increasingly important source of stable, reliable future gas supply.
"Natural gas has now been recognised as an essential transition fuel on the path to net zero just at the point geopolitical uncertainty is impacting the global gas market. Additional US gas export capacity will help increase UK, European and global energy security, reflecting the increasing importance of LNG in the global gas supply chain. I’m delighted to sign this Heads of Agreement with Delfin as we continue to deliver our new strategy, growing Centrica’s LNG portfolio and ensuring that we increase our access to a diversified range of reliable gas supplies for our customers."
Chris O’Shea, Centrica Group Chief Executive
"A key component of our Energy Security Strategy is that natural gas is a key transition fuel on the road to clean, affordable, home-grown energy. From renewables to nuclear, we have ambitious plans for greater energy independence, but we are also realistic about our energy needs now and in the years ahead. That means we need to secure more diverse and reliable sources of natural gas from friends, allies and strategic partners. Today’s deal between Centrica and Delfin is positive news for the UK, helping to ensure our diversity of supply from reliable sources - like our friends in the United States - for many years to come."
Kwasi Kwarteng MP, UK Secretary of State for Business and Energy
Thursday 18 August 2022
Wednesday 10 August 2022
EemsEnergyTerminal in Eemshaven completely 'sold out’: ENGIE becoming its new shipper
Gasunie subsidiary EemsEnergyTerminal has sold the remaining capacity of the LNG terminal in Eemshaven to ENGIE SA who purchased the last 1 billion cubic metres (bcm). Earlier contracts were signed with ČEZ (Czech Republic) and Shell Western LNG B.V. The total 8 bcm available in the Eemshaven is now 'sold out'. The first delivery of LNG through the terminal is expected to take place as early as mid-September.
With these new capacities added to its existing LNG portfolio, ENGIE -through its business entity ‘Global Energy Management & Sales’- will strengthen its energy diversification strategy and increase its ability to supply LNG toward Europe.
Ulco Vermeulen, member of the Executive Board of Gasunie, is pleased that the conclusion of the contracts has led to this result "In a period of just three months, the floating LNG terminal is now completely sold out. In the coming weeks, all attention will be focused on the technical preparation of the location for the floating terminal. This too will take place at record speed.”
According to Marc Pannier, Executive Committee Member of ENGIE’s business entity ‘Global Energy Management & Sales’: “These new capacities are part of ENGIE's strategy to secure the supply for our customers and support the energy independency in Europe.”
Until this year, the Netherlands only had an LNG terminal in the port of Rotterdam. The expansion in Eemshaven and the optimisation of the Rotterdam terminal will double the LNG import capacity. The new LNG terminal in Eemshaven will consist of two floating FRSUs (Floating Storage and Regasification Units): the Exmar S188 and the Golar Igloo. They are expected to arrive at Eemshaven in early September.
Over the next five years, the floating terminal will convert liquid natural gas into gaseous natural gas in Eemshaven, after which it can be fed into the national natural gas network. In total, an additional 8 billion cubic metres of natural gas (8 bcm) can be brought to the Netherlands.
With these new capacities added to its existing LNG portfolio, ENGIE -through its business entity ‘Global Energy Management & Sales’- will strengthen its energy diversification strategy and increase its ability to supply LNG toward Europe.
Ulco Vermeulen, member of the Executive Board of Gasunie, is pleased that the conclusion of the contracts has led to this result "In a period of just three months, the floating LNG terminal is now completely sold out. In the coming weeks, all attention will be focused on the technical preparation of the location for the floating terminal. This too will take place at record speed.”
According to Marc Pannier, Executive Committee Member of ENGIE’s business entity ‘Global Energy Management & Sales’: “These new capacities are part of ENGIE's strategy to secure the supply for our customers and support the energy independency in Europe.”
Until this year, the Netherlands only had an LNG terminal in the port of Rotterdam. The expansion in Eemshaven and the optimisation of the Rotterdam terminal will double the LNG import capacity. The new LNG terminal in Eemshaven will consist of two floating FRSUs (Floating Storage and Regasification Units): the Exmar S188 and the Golar Igloo. They are expected to arrive at Eemshaven in early September.
Over the next five years, the floating terminal will convert liquid natural gas into gaseous natural gas in Eemshaven, after which it can be fed into the national natural gas network. In total, an additional 8 billion cubic metres of natural gas (8 bcm) can be brought to the Netherlands.
Monday 8 August 2022
Eni acquires the Tango FLNG to produce and export LNG from the Republic of Congo
Eni informs that it has acquired the company Export LNG Ltd, which owns the Tango FLNG floating liquefaction facility, from Exmar group. The facility will be used by Eni in the Republic of Congo, as part of the activities of the natural gas development project in the Marine XII block, in line with Eni's strategy to leverage gas equity resources.
The Tango FLNG, built in 2017, has a treatment capacity of approximately 3 million standard cubic meters/day and an LNG production capacity of approximately 0.6 million tons per year (about 1 billion standard cubic meters/year). The acquisition of this facility allows the development of a fast-track model capable of seizing the opportunities of the LNG market. In addition, the high flexibility and mobility characteristics of the Tango FLNG will favour the development and enhancement of Eni's equity gas by accelerating production start-up time.
Tango FLNG will begin its activity in Congo in the second half of 2023, following the completion of mooring and connection works necessary to tie with the Marine XII network and infrastructure. LNG production from Marine XII is expected to begin in 2023, and when fully operational it will provide volumes in excess of 3 million tons/year (over 4.5 billion cubic meters/year).
The Tango FLNG, built in 2017, has a treatment capacity of approximately 3 million standard cubic meters/day and an LNG production capacity of approximately 0.6 million tons per year (about 1 billion standard cubic meters/year). The acquisition of this facility allows the development of a fast-track model capable of seizing the opportunities of the LNG market. In addition, the high flexibility and mobility characteristics of the Tango FLNG will favour the development and enhancement of Eni's equity gas by accelerating production start-up time.
Tango FLNG will begin its activity in Congo in the second half of 2023, following the completion of mooring and connection works necessary to tie with the Marine XII network and infrastructure. LNG production from Marine XII is expected to begin in 2023, and when fully operational it will provide volumes in excess of 3 million tons/year (over 4.5 billion cubic meters/year).
Friday 5 August 2022
Freeport LNG and Pipeline Hazardous Materials Safety Administration Enter Into Consent Agreement
Freeport LNG Development, L.P. (Freeport LNG) and the Pipeline Hazardous Materials Safety Administration (PHMSA) have entered into a Consent Agreement related to the June 8 incident at Freeport LNG’s liquefaction facility. Freeport LNG has a long history of commitment to safety and safe operation and overall, the obligations under the Consent Agreement are intended to ensure that Freeport LNG can safely and confidently resume initial LNG production and thereafter ultimately return to full operation of all liquefaction facilities.
In the near term, the Consent Agreement includes certain corrective measures, many of which are currently underway, that Freeport LNG is to take to obtain PHMSA approval for an initial resumption of LNG production from its liquefaction facility. Freeport LNG continues to believe that it can complete the necessary corrective measures, along with the applicable repair and restoration activities, in order to resume initial operations in early October. Those initial operations are expected to consist of three liquefaction trains, two LNG storage tanks and one LNG loading dock, which the company believes will enable delivery of approximately 2 BCF per day of LNG, enough to support its existing long-term customer agreements. In addition to the repair and replacement of Freeport LNG’s physical infrastructure that was damaged in the incident, and as part of the corrective measures under the Consent Agreement, the company is evaluating and advancing initiatives related to training, process safety management, operations and maintenance procedure improvements, and facility inspections.
In the near term, the Consent Agreement includes certain corrective measures, many of which are currently underway, that Freeport LNG is to take to obtain PHMSA approval for an initial resumption of LNG production from its liquefaction facility. Freeport LNG continues to believe that it can complete the necessary corrective measures, along with the applicable repair and restoration activities, in order to resume initial operations in early October. Those initial operations are expected to consist of three liquefaction trains, two LNG storage tanks and one LNG loading dock, which the company believes will enable delivery of approximately 2 BCF per day of LNG, enough to support its existing long-term customer agreements. In addition to the repair and replacement of Freeport LNG’s physical infrastructure that was damaged in the incident, and as part of the corrective measures under the Consent Agreement, the company is evaluating and advancing initiatives related to training, process safety management, operations and maintenance procedure improvements, and facility inspections.
Excelerate Energy Signs Gas Sales MOU with Bulgaria’s Overgas
Excelerate Energy, Inc. (NYSE: EE) (“Excelerate”) and Bulgaria’s Overgas Inc. AD (“Overgas”) announced today that the two Parties signed a Memorandum of Understanding (“MOU”), in Sofia, Bulgaria on July 14, 2022 relating to the sale of regasified liquefied natural gas (“LNG”) downstream of Excelerate’s planned Vlora LNG terminal in Albania.
Under this MOU, the two Parties will enter into a negotiation for Overgas to purchase up to 1.0 billion cubic meters of regasified LNG annually for ten years from Excelerate (or an affiliated entity) via the Vlora Terminal and the proposed Vlora-Fier Pipeline which is expected to interconnect with existing natural gas infrastructure in Europe’s Southern Gas Corridor. The MOU expands the scope of Excelerate’s Vlora Terminal project to include downstream sales of regasified LNG into Europe and has the potential to bring much needed supply diversification not only in Bulgaria, but also in neighboring countries in the region.
“For many countries in Europe’s Southern Gas Corridor, flexible access to LNG remains critical to ensuring their energy security,” said Oliver Simpson, Commercial Vice President of Excelerate. “Integrated LNG projects like the Vlora Terminal are a logical solution for meeting the urgent energy needs of Bulgaria and other Balkan and European countries linked to the Southern Gas Corridor. We look forward to working with Overgas and believe this agreement is the first of several that will address the lack of supply diversity in the region.”
Svetoslav Ivanov, Executive Director of Overgas said, “We are excited to begin working with an industry leader such as Excelerate. The signing of this agreement is a phenomenal example of the EU’s progress towards energy diversification and energy security in the Union, and especially in the Balkans.”
This agreement follows previous MOUs between Excelerate, Snam S.p.A (Snam), and Albgaz Sh.a (Albgaz) and between Overgas and Albgaz to explore potential cooperation for the construction of a natural gas pipeline from the Vlora Terminal to other natural gas infrastructure in Albania.
Under this MOU, the two Parties will enter into a negotiation for Overgas to purchase up to 1.0 billion cubic meters of regasified LNG annually for ten years from Excelerate (or an affiliated entity) via the Vlora Terminal and the proposed Vlora-Fier Pipeline which is expected to interconnect with existing natural gas infrastructure in Europe’s Southern Gas Corridor. The MOU expands the scope of Excelerate’s Vlora Terminal project to include downstream sales of regasified LNG into Europe and has the potential to bring much needed supply diversification not only in Bulgaria, but also in neighboring countries in the region.
“For many countries in Europe’s Southern Gas Corridor, flexible access to LNG remains critical to ensuring their energy security,” said Oliver Simpson, Commercial Vice President of Excelerate. “Integrated LNG projects like the Vlora Terminal are a logical solution for meeting the urgent energy needs of Bulgaria and other Balkan and European countries linked to the Southern Gas Corridor. We look forward to working with Overgas and believe this agreement is the first of several that will address the lack of supply diversity in the region.”
Svetoslav Ivanov, Executive Director of Overgas said, “We are excited to begin working with an industry leader such as Excelerate. The signing of this agreement is a phenomenal example of the EU’s progress towards energy diversification and energy security in the Union, and especially in the Balkans.”
This agreement follows previous MOUs between Excelerate, Snam S.p.A (Snam), and Albgaz Sh.a (Albgaz) and between Overgas and Albgaz to explore potential cooperation for the construction of a natural gas pipeline from the Vlora Terminal to other natural gas infrastructure in Albania.
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