Delfin Signs LNG Sale and Purchase Agreement with Hartree

 Delfin Midstream Inc. (“Delfin”) announced today that its wholly owned subsidiary Delfin LNG LLC (“Delfin LNG”) has finalized a binding Liquified Natural Gas (“LNG”) Sale and Purchase Agreement (“SPA”) with Hartree Partners Power & Gas Company (UK) Limited (“Hartree”), a wholly owned subsidiary of Hartree Partners, LP. 

Under the SPA, Delfin LNG will supply 0.6 million tonnes per annum (“MTPA”) on a free on-board (“FOB”) basis at the Delfin Deepwater Port, 40 nautical miles off the coast of Louisiana, to Hartree for a 20-year period. The SPA is indexed to the Henry Hub benchmark. 

“We are excited about partnering with Delfin LNG and to strengthen their progress toward reaching Final Investment Decision and look forward to a successful and collaborative long-term relationship,” Stephen Hendel, one of Hartree Partners’ Founding Managing Directors said. “This deal will also support our wider strategy of delivering low cost, tailor-made and reliable LNG supply chain solutions that meet the specific requirements of our customers.” 

The 20-year binding SPA with Hartree serves as an additional milestone for Delfin and builds on the company’s previously announced long-term agreements with strong, strategic counterparties. Delfin has now secured commitments for 3.1 MTPA of LNG sales which 

is sufficient to make Final Investment Decision (“FID”) on the first Floating LNG (“FLNG”) vessel for the Delfin Deepwater Port LNG Export Facility. Delfin expects to make FID in mid-2023. 

“The signing of this long-term SPA with Hartree represents another significant milestone for our company and signifies the beginning of a strong, mutually beneficial relationship with a world-class trading company such as Hartree,” Dudley Poston, CEO of Delfin, said. 

Delfin has appointed Citi as its exclusive financial structuring advisor and is well advanced in securing project level equity and debt for the first FLNG vessel.

“The Delfin project’s ability to make FID one vessel at a time is attracting significant interest from buyers, and Delfin is already in advanced discussions for marketing LNG for its second FLNG vessel,” continued Mr. Poston. 

Wouter Pastoor, COO of Delfin, added, “With strong commercial and financial progress, Delfin is finalizing construction contracts for multiple identical liquefier vessels which will offer material cost savings and position us to make FID on our second FLNG vessel by the end of this year.”

Eni inaugurates Congo LNG project in the Republic of the Congo

The President of the Republic of the Congo, Denis Sassou Nguesso, and the Chief Executive Officer of Eni, Claudio Descalzi, today laid the foundation stone of Congo LNG, the country's first natural gas liquefaction project and one of Eni's core supply diversification initiatives. The project is expected to reach an overall liquefied natural gas (LNG) production capacity of 3 million tons per year (approximately 4.5 billion cubic meters/year) from 2025.

Congo LNG will exploit the huge gas resources of Marine XII, fulfilling the country’s power generation needs while also fuelling LNG exports, supplying new volumes of gas to international markets focusing on Europe.

The project, made though an accelerated development schedule and a zero-flaring approach, will see the installation of two floating natural gas liquefaction plants (FLNG) at the Nenè and Litchendjili fields – already in production – and at the fields yet to be developed. The first FLNG plant, currently under conversion and with a capacity of 0.6 million tonnes per year (MTPA), will begin production in 2023. The second FLNG plant – already under construction – will become operative in 2025 with a capacity of 2.4 MTPA.

Claudio Descalzi, Eni's Chief Executive Officer, commented: "Today we celebrate the launch of one of Eni's main projects, made possible by the collaboration with the Republic of the Congo and destined to significantly contribute to both Italy and Europe’s energy security and industrial competitiveness. This outcome speaks to the importance of long-term collaboration with our African partners at a time when important strategic choices need to be made in regards to future diversification of supply routes and European energy mixes, in the direction of energy accessibility and availability and progressive decarbonisation.”

Eni has been operating in Congo for over 50 years and – to date – is the only company active in the development of its gas resources, guaranteeing 70% of national electricity production through the Centrale Electrique du Congo (CEC).

Eni is strongly committed to promoting energy transition in the country. Recently, the Oyo Center of Excellence for Renewable Energy and Energy Efficiency was handed over to the Ministry of Higher Education, Scientific Research and Technological Innovation of the Republic of the Congo, which will manage it together with UNIDO (United Nations Industrial Development Organization). Furthermore, the company is developing agri-feedstock production initiatives destined for biorefining and not in competition with the food supply chain.

Técnicas Reunidas and FCC in consortium with Entrade GMBH win the contract to develop a large regasification terminal in Germany

Hanseatic Energy Hub GmbH is developing an import terminal that will contribute to secure Germany’s supply of LNG and green gases while preparing for the market ramp-up of hydrogen. The German company has awarded the design and development of an emission free regasification terminal to a consortium led by Técnicas Reunidas and made up of the Spanish company FCC and Entrade GMBH.

This is an EPC (Engineering, Procurement and Construction) contract for the execution of a new storage and regasification terminal for liquified gases in the river port of Stade, which is part of the metropolitan region of Hamburg (Germany).

The land on which the facility will be built belongs to the large chemical company Dow Chemicals, which is participating in the project as one of the development partners. The terminal will utilize Dow’s industrial waste heat and therefore will be able to regasify the gases without additional CO2 emissions.

The new terminal will have a capacity of 13.3 Bm3 nominal per year and will involve a total investment of close to 1,000 million euros, of which approximately 500 million euros will correspond to the scope of Técnicas Reunidas and the other 500 million euros to FCC and Entrade GMBH.

The project has been divided into two phases, a first stage of preliminary works and engineering with a duration of 5 months; and a second stage, that constitutes the main contract, which is subject to HEH Final Investment Decision scheduled for summer 2023.

Técnicas Reunidas will design the regasification terminal and the two storage tanks, each with a capacity of 240,000 cubic meters, and will undertake all the equipment and materials supply work for the project. The project is part of Técnicas Reunidas’ long experience and know-how in the design and development of this type of plants, aimed at optimizing performance and minimizing environmental impact.

FCC has extensive experience in the construction of Liquefied Natural Gas (LNG) tanks and will build the tanks. In addition, it will carry out all site preparation and civil works activities for the plant. The company has designed, built and commissioned several LNG storage plants in Spain, Finland and Chile. Specifically, in Spain, it has executed 8 LNG facilities with a capacity to supply 1.53 million homes thanks to the storage of 1.1 Mm3 LNG.

Entrade GMBH, a subsidiary of ENKA, one of the strongest engineering and construction companies in the world and with work in progress near Stade, will be in charge of the electromechanical assembly activities.

The complete execution of the plant is estimated to take place around 2027

This terminal is an important element of Germany’s current energy policy, as one of its main objectives is to diversify its natural gas supply with liquefied natural gas (LNG) and green gases while preparing for the market ramp-up of hydrogen.

Hanseatic Energy Hub has stressed that “the hub is a future-flexible modular system for the green energy transition that utilizes the diverse opportunities of the Stade energy region. The terminal, port, industrial park and connecting infrastructure are designed so that a conversion can take place in a modular way”.

Qatargas Supplies Commissioning LNG Cargo To India’s Dhamra Terminal

Qatargas recently supplied a commissioning liquefied natural gas (LNG) cargo to India's newest LNG receiving terminal, “Dhamra", on the vessel 'Milaha Ras Laffan' in April 2023.

Qatargas sold the LNG on a Delivered Ex-Ship (DES) basis to the French multi-energy Company TotalEnergies, who delivered it to its 50-50 joint venture with Adani Group “Adani Total Private Limited".

Commenting on this achievement, Khalid bin Khalifa Al Thani, Qatargas CEO, said:

"Delivery of this commissioning LNG cargo to India's Dhamra terminal is an important milestone for our company and for Qatar's LNG industry. We are committed to meeting the growing demand for cleaner energy in India and around the world. Our reliable and safe supply of LNG will help India meet its energy needs and contribute to its economic growth. Qatargas remains committed to operating sustainably and to delivering value to our customers, partners, and stakeholders."

He added: "I would like to thank our valued partner, TotalEnergies, for their contribution to this successful delivery. Our partnership has been instrumental in helping us achieve this feat, and we look forward to continuing to work together to deliver cleaner and reliable energy to the world."

"We are pleased to have completed the first delivery of LNG to the new Dhamra LNG terminal with a cargo from Qatargas, our long-standing strategic partner," said Thomas Maurisse, Senior Vice President LNG at TotalEnergies. “This new LNG terminal will contribute to India's security of energy supply and is in line with TotalEnergies' ambition to support India's energy transition and its goal of increasing the share of natural gas to 15% of its energy mix by 2030."

Dhamra is home to India's seventh operational LNG terminal, the second of its kind on the east coast of the country. It is Adani Total Private Limited's first LNG import terminal with a capacity of five million tonnes per annum (MTPA) and it is expected to boost gas utilisation in the east coast of India. Once fully commissioned, Adani and TotalEnergies will provide regasification services to their downstream Indian customers.

​The terminal features two tanks of 170,000 cubic metres (CBM) capacity each. The facility's jetty is capable of handling LNG carriers from 70,000 to 265,000 CBM capacity. It also offers breakbulk services, enabling reloading of LNG to smaller vessels for further distribution and an LNG truck loading facility.

Vitol delivers first LNG cargo into Finland’s new Inkoo terminal

On Sunday Vitol delivered the first LNG cargo into Finland’s new Inkoo terminal. The cargo was ordered by Elenger, the largest privately owned energy company in the Finnish-Baltic region.

The cargo originates from Vitol’s portfolio of US origin LNG, specifically the Venture Global Calcasieu Pass facility, and was transported in the Vivit Americas LNG, a modern LNG tanker which is part of the Vitol fleet. The tanker, sailing under the flag of Malta and built in 2020, is 299 meters long and 46 meters wide. It can hold 174,062 m3 of liquefied gas.

Vitol has a global LNG portfolio with long term sourcing contracts from producers in the USA, Middle East, Africa and Asia. In 2022 Vitol traded over 17.5 million toe of LNG with around 67% of this volume being supplied to Europe.

Pablo Galante Escobar, Head of LNG & European Gas and Power, Vitol said: “Vitol is delighted to deliver the first LNG cargo to Elenger via Finland’s Inkoo terminal. The opening of the terminal will enhance energy security in Finland and the Baltic region, facilitating the flow of LNG from around the world to European industry and consumers.”

“As one of the few energy companies operating in the region, we purchase gas directly from the Western sources, this allows us to offer our customers greater security and better prices, and has significantly increased our market share in Finland and the Baltic countries over the past year,” said Pasi Näkki, CEO of Elenger Finland.

“Until today we have used the port of Klaipeda in Lithuania to bring gas from the United States and Norway, now we start cooperation with the Inkoo terminal too and also with a new supplier in addition to our current partner Equinor from Norway – a global energy company Vitol,” said Näkki.

Elenger has signed agreements with LNG terminals to deliver a total of ten cargoes by the fall of this year – three deliveries have already arrived in Lithuania’s Klaipeda port in January and March, and a total of seven deliveries will arrive in Finland’s Inkoo port in the spring and summer. Last year, Elenger procured five large shiploads of gas for its customers through the port of Klaipeda.