Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) and Cheniere Energy Partners, LP (“Cheniere Partners”) (NYSE American: CQP) announced today that Sabine Pass Liquefaction Stage V, LLC (“SPL Stage 5”) has entered into a long-term Integrated Production Marketing (“IPM”) gas supply agreement with ARC Resources U.S. Corp. (“ARC Resources”), a subsidiary of ARC Resources Ltd. (TSX: ARX), a leading natural gas producer in Canada.
Under the IPM agreement, ARC Resources has agreed to sell 140,000 MMBtu per day of natural gas to SPL Stage 5 for a term of 15 years, commencing with commercial operations of the first train (“Train 7”) of the Sabine Pass Liquefaction Expansion Project (“SPL Expansion Project”). SPL Stage 5 will pay ARC Resources an LNG-linked price for its gas, based upon the Dutch Title Transfer Facility (“TTF”) price, after deductions for a fixed regasification fee, fixed LNG shipping costs and a fixed liquefaction fee. The IPM agreement is subject to, among other things, a positive Final Investment Decision with respect to Train 7. The LNG associated with this gas supply, approximately 0.85 million tonnes per annum (“mtpa”), will be marketed by Cheniere Marketing International LLP (“Cheniere Marketing”, a subsidiary of Cheniere).
“This is the second long-term IPM agreement between Cheniere and ARC Resources, and further progresses the commercialization of the SPL Expansion Project. This agreement will enable Cheniere to deliver increased quantities of Canadian natural gas to Europe, where energy security has never been more important,” said Jack Fusco, Cheniere’s President and CEO. “We are pleased to build upon our existing long-term relationship with ARC Resources, and further demonstrate Cheniere’s ability to construct innovative solutions that help meet the needs of customers and counterparties along the LNG value chain while delivering value to our stakeholders.”
“Canadian natural gas can play a critical role in helping to meet growing global energy demand,” said Terry Anderson, President and Chief Executive Officer, ARC Resources. “Through this agreement, we are advancing our LNG strategy and delivering low-cost, low-emission natural gas to consuming regions in Europe – the first long-term arrangement of its kind for a Canadian producer. We are pleased to further our long-term partnership with Cheniere and bring more responsibly produced Canadian energy to the world.”
In addition to the IPM agreement announced today, Cheniere Marketing has entered into an LNG sale and purchase agreement (“SPA”) with OMV Gas Marketing and Trading GMBH (“OMV”), a wholly-owned subsidiary of OMV AG. Under the SPA, Cheniere Marketing will supply OMV with up to 12 LNG cargoes per year, or approximately 0.85 mtpa of LNG, at a TTF-linked price commencing in late 2029. The LNG will be sold to OMV on a delivered ex-ship (“DES”) basis at the Gate LNG Terminal in the Netherlands where OMV holds regasification capacity.
The SPL Expansion Project is being developed with a production capacity of up to approximately 20 mtpa of total LNG capacity, inclusive of estimated debottlenecking opportunities. In May 2023, certain subsidiaries of Cheniere Partners entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission under the National Environmental Policy Act.
Wednesday 29 November 2023
Monday 27 November 2023
Mexico Pacific Awards Sierra Madre Pipeline EPC Contract to GDI SICIM PIPELINES and BONATTI
Mexico Pacific, GDI Sicim Pipelines and Bonatti announced today they have executed the Engineering, Procurement, and Construction (“EPC”) contract for the Sierra Madre pipeline project. The 500-mile Sierra Madre pipeline will be utilized as the primary natural gas supply path for the transportation of up to 2.8 Bcf/d natural gas from the U.S. border to the first phase of Mexico Pacific’s 15 million tonne per annum (“MTPA”) Saguaro Energia liquefied natural gas (“LNG”) export facility located in Puerto Libertad, Sonora, Mexico.
Under the lump-sum-turnkey EPC contracts, the GDI Sicim Pipelines and Bonatti joint venture will engineer, procure and construct the Sierra Madre pipeline with Bonatti’s scope extending to the required compressor stations.
“We are pleased to be partnering with GDI Sicim Pipelines and Bonatti. A team of best-in-class international pipeline contractors with proven track records of pipeline execution and delivery in Mexico” said Ivan Van der Walt, Chief Executive Officer of Mexico Pacific. “Execution of our pipeline EPC contracts represents yet another important inflection point for our project as we prepare to move into construction. We look forward to working with GDI Sicim Pipelines and Bonatti in delivering a project that will bring transformational value to Mexico and critically needed cleaner energy supply to global markets.”
“GDI Sicim Pipelines is very pleased to participate in this project and being part of this team. We are committed to the successful execution of the Sierra Madre Pipeline Project and will provide the best of our resources and experience to achieve this goal.”
“Bonatti is extremely proud to be part of this flagship project and to keep contributing to the development of Mexico’s energy infrastructure. We are committed to delivering this challenging project together with our partners.”
About Mexico Pacific
Mexico Pacific’s anchor project, the 15 MTPA Saguaro Energia LNG Facility, is the most advanced LNG development project on the West Coast of North America. The Saguaro Energia LNG Facility achieves significant cost and logistical advantages resulting in the lowest landed price of North American LNG into Asia by, leveraging low-cost natural gas sourced from the nearby Permian Basin, and a significantly shorter shipping route avoiding Panama Canal transit risk for Asian markets.
Under the lump-sum-turnkey EPC contracts, the GDI Sicim Pipelines and Bonatti joint venture will engineer, procure and construct the Sierra Madre pipeline with Bonatti’s scope extending to the required compressor stations.
“We are pleased to be partnering with GDI Sicim Pipelines and Bonatti. A team of best-in-class international pipeline contractors with proven track records of pipeline execution and delivery in Mexico” said Ivan Van der Walt, Chief Executive Officer of Mexico Pacific. “Execution of our pipeline EPC contracts represents yet another important inflection point for our project as we prepare to move into construction. We look forward to working with GDI Sicim Pipelines and Bonatti in delivering a project that will bring transformational value to Mexico and critically needed cleaner energy supply to global markets.”
“GDI Sicim Pipelines is very pleased to participate in this project and being part of this team. We are committed to the successful execution of the Sierra Madre Pipeline Project and will provide the best of our resources and experience to achieve this goal.”
“Bonatti is extremely proud to be part of this flagship project and to keep contributing to the development of Mexico’s energy infrastructure. We are committed to delivering this challenging project together with our partners.”
About Mexico Pacific
Mexico Pacific’s anchor project, the 15 MTPA Saguaro Energia LNG Facility, is the most advanced LNG development project on the West Coast of North America. The Saguaro Energia LNG Facility achieves significant cost and logistical advantages resulting in the lowest landed price of North American LNG into Asia by, leveraging low-cost natural gas sourced from the nearby Permian Basin, and a significantly shorter shipping route avoiding Panama Canal transit risk for Asian markets.
Seatrium Delivers Greece’s First FSRU
Seatrium Limited (Seatrium, or the Group), today announced the successful delivery of the Floating Storage and Regasification Unit (FSRU) Alexandroupolis, which has completed its near shore testing works and set sail to Greece for final gas commissioning of the regasification system.
The project was successfully delivered to GAS-fifteen Ltd, a wholly-owned subsidiary of GasLog LNG Services with a high safety standard, achieving a remarkable feat of 2.9 million man-hours without any recordable injury and loss-time incident.
Mr Chris Ong, CEO of Seatrium said, "We are pleased to support Gaslog and contribute towards Greece’s energy future with the delivery of the first FSRU for the country through the Alexandroupolis Independent Natural Gas System (INGS) project. This project marks a significant milestone for Seatrium, affirming our position as a global player with industry-leading engineering expertise in the gas value chain. We look forward to delivering more of such innovative solutions to meet our clients' evolving needs."
As the first FSRU for Greece, the INGS project will become a critical energy gateway, supporting its energy security while advancing the energy transition trajectory of Southeastern Europe. Seatrium’s scope of work for this project includes refurbishment and life extension works, engineering and procurement, fabrication, and installation of a new regasification skid, as well as supporting systems such as boilers, offloading, electrical and automation systems.
When completed, FSRU Alexandroupolis will be deployed in waters some 17 kilometres southwest of the Port of Alexandroupolis, Northern Greece, and will have an overall delivery capacity of approximately 5.5 billion cubic metres (cbm) per year, with a peak send out of 22 million cubic metres per day. The 155,000-cbm LNG carrier, recently reflagged to the Hellenic Register, is the first FSRU conversion under the Greek Flag for operation in the Thracian Sea. The FSRU will eventually be owned and managed by GASTRADE S.A, a consortium of key players in the wider region’s energy market, and will supply the markets of Southeastern European with natural gas.
Seatrium is committed to driving cleaner and more sustainable solutions for the offshore, marine and energy industries. The Group supports the decarbonisation efforts of its customers through the construction, conversion and retrofit of energy-efficient vessels. Compared to a newbuild FSRU, a converted FSRU has a smaller carbon footprint, is more cost-effective, and is faster-to-market.
Seatrium has an extensive track record in the conversion of vessels. In addition to converting the world’s first FSRU in 2008, Seatrium converted the world’s First Floating Production Storage and Offloading vessel (FPSO) in 1981, and the world’s first floating liquefaction vessel (FLNG) in 2017.
Wednesday 22 November 2023
First Gen awards contract to Trafigura Pte Ltd for an LNG cargo following a successful tender
Please be advised that First Gen Corporation (FGEN) concluded its international tender for an LNG cargo by awarding a contract to Trafigura Pte Ltd (Trafigura). Trafigura will supply one (1) LNG cargo of approximately 154,500 m3 (subject to an operational tolerance of +/- 3%) within the required delivery window of November 25 to December 25, 2023, on a Delivered Ex Ship (DES) basis to FGEN’s wholly-owned subsidiary, First Gen Singapore Pte. Ltd (FGEN Singapore).
The LNG cargo to be provided by Trafigura will be delivered by an LNG carrier which will be unloaded into the storage tanks of the BW Batangas FSRU that is currently berthed at the First Gen Clean Energy Complex (FGCEC) in Batangas City. The LNG will be utilized by FGEN’s existing gas-fired power plants also located in the FGCEC.
FGEN has a portfolio of four (4) existing gas-fired power plants with a combined capacity of 2,017 MW that have been supplied for many years with gas from the Malampaya field, an indigenous offshore gas field. FGEN LNG Corporation has constructed its Interim Offshore LNG Terminal Project and executed a 5-year Time Charter Party for the charter of the BW Batangas, which will provide LNG storage and regasification services as part of the project. The FGEN LNG Terminal will accelerate the ability to introduce LNG to the Philippines, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN’s affiliates. FGEN believes the FGEN LNG Terminal will play a critical role in ensuring the energy security of the Luzon Grid and the Philippines.
Cheniere and Foran Energy Group Sign Long-Term LNG Sale and Purchase Agreement
Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE American: LNG) announced today that Cheniere’s subsidiary, Cheniere Marketing, LLC (“Cheniere Marketing”), has entered into a long-term liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”) with Foran Energy Group Co. Ltd. (“Foran”).
Under the SPA, Foran has agreed to purchase approximately 0.9 million tonnes per annum (“mtpa”) of LNG for 20 years from Cheniere Marketing on a free-on-board (“FOB”) basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will commence upon the start of commercial operations of the second train (“Train Eight”) of the Sabine Pass Liquefaction Expansion Project (“SPL Expansion Project”) in Louisiana and are subject to, among other things, a positive Final Investment Decision with respect to Train Eight.
“We are pleased to build upon our existing long-term relationship with Foran, one of the fastest growing natural gas companies in China, with the signing of our second 20-year SPA that secures increased LNG volumes for Foran for the long term,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “This 20-year SPA further supports China’s commitment to growing natural gas as a primary energy source and provides Foran with a flexible and reliable LNG solution for its operations. The SPA is also expected to support the SPL Expansion Project, and represents the first contract signed in connection with the project’s second train.”
The SPL Expansion Project is being developed for up to approximately 20 mtpa of LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, L.P. (NYSE American: CQP) entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission.
Under the SPA, Foran has agreed to purchase approximately 0.9 million tonnes per annum (“mtpa”) of LNG for 20 years from Cheniere Marketing on a free-on-board (“FOB”) basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will commence upon the start of commercial operations of the second train (“Train Eight”) of the Sabine Pass Liquefaction Expansion Project (“SPL Expansion Project”) in Louisiana and are subject to, among other things, a positive Final Investment Decision with respect to Train Eight.
“We are pleased to build upon our existing long-term relationship with Foran, one of the fastest growing natural gas companies in China, with the signing of our second 20-year SPA that secures increased LNG volumes for Foran for the long term,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “This 20-year SPA further supports China’s commitment to growing natural gas as a primary energy source and provides Foran with a flexible and reliable LNG solution for its operations. The SPA is also expected to support the SPL Expansion Project, and represents the first contract signed in connection with the project’s second train.”
The SPL Expansion Project is being developed for up to approximately 20 mtpa of LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, L.P. (NYSE American: CQP) entered the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission.
Wednesday 15 November 2023
Snam and the Municipality of Ravenna join forces to present projects on the territory and their economic and employment implications
Snam, the leading European operator in the transport, storage, and regasification of natural gas committed to energy transition, and the Municipality of Ravenna today presented the company's projects in the area through a press conference in the municipal council chamber.
The Mayor of the city, Michele de Pascale, CEO Stefano Venier, and Snam's Chief Operating Officer Massimo Derchi introduced the company's activities in the area, focusing on the connection works to the national gas network to enable the link with the FSRU BW Singapore, the second regasification terminal purchased by Snam, expected to be operational by the end of 2024. This ship will provide the country with an additional 5 billion cubic meters of gas, in addition to those already supplied by the FSRU Golar Tundra, operational in Piombino since July 2023.
On this occasion, the agreement regarding the compensatory works related to Snam's responsibility for all activities connected to the positioning and connection of FSRU BW Singapore was signed. These works will enable the Municipality to carry out significant interventions in various areas, from urban regeneration to sustainable mobility, from reforestation to energy saving, with a total commitment of 10 million euros. At the peak of activities, more than 1,200 people will be employed, involving over 100 suppliers from the province of Ravenna and the Emilia Romagna Region, with contracts assigned to local companies in the Ravenna area amounting to over 300 million euros.
All project information is available on the website https://fsruitalia.it/.
During the conference, Snam also provided an update on the progress of the works for the first Carbon Capture and Storage (CCS) project, which will make the Ravenna hub one of the world's largest sites for CO₂ storage and the largest in the Mediterranean. The works for the first phase have reached a progress of 60%, and the first CO₂ molecules are expected to be injected in the early months of 2024.
The Mayor of the city, Michele de Pascale, CEO Stefano Venier, and Snam's Chief Operating Officer Massimo Derchi introduced the company's activities in the area, focusing on the connection works to the national gas network to enable the link with the FSRU BW Singapore, the second regasification terminal purchased by Snam, expected to be operational by the end of 2024. This ship will provide the country with an additional 5 billion cubic meters of gas, in addition to those already supplied by the FSRU Golar Tundra, operational in Piombino since July 2023.
On this occasion, the agreement regarding the compensatory works related to Snam's responsibility for all activities connected to the positioning and connection of FSRU BW Singapore was signed. These works will enable the Municipality to carry out significant interventions in various areas, from urban regeneration to sustainable mobility, from reforestation to energy saving, with a total commitment of 10 million euros. At the peak of activities, more than 1,200 people will be employed, involving over 100 suppliers from the province of Ravenna and the Emilia Romagna Region, with contracts assigned to local companies in the Ravenna area amounting to over 300 million euros.
All project information is available on the website https://fsruitalia.it/.
During the conference, Snam also provided an update on the progress of the works for the first Carbon Capture and Storage (CCS) project, which will make the Ravenna hub one of the world's largest sites for CO₂ storage and the largest in the Mediterranean. The works for the first phase have reached a progress of 60%, and the first CO₂ molecules are expected to be injected in the early months of 2024.
Tuesday 14 November 2023
Cedar LNG Executes Heads of Agreement with Samsung Heavy Industries, Black & Veatch
The Haisla Nation and Pembina Pipeline Corporation (“Pembina”) (TSX: PPL; NYSE: PBA), partners in the development of the proposed Cedar LNG Project (“Cedar LNG” or the “Project”), are pleased to announce the signing of a heads of agreement (“HOA”) with Samsung Heavy Industries (“SHI”) and Black & Veatch.
The HOA provides Cedar LNG, on an exclusive basis with SHI and Black & Veatch, secure access to shipyard capacity to meet Cedar LNG’s target commercial operations date. The parties expect to finalize a lump sum engineering, procurement, and construction agreement in December of this year.
“This exclusive relationship with SHI and Black & Veatch to lock in shipyard capacity for the construction of the Cedar LNG FLNG vessel is a major step forward for our project,” said Doug Arnell, Cedar LNG Chief Executive Officer. “Through this agreement we are accessing world class expertise in the construction and delivery of floating LNG production vessels, which, together with renewable power from the BC Hydro grid, will result in an environmentally leading, state-of-the-art facility for Cedar LNG, with one of the lowest carbon footprints in the world.”
This agreement builds further momentum for the Project and follows receipt of all major regulatory approvals and the signing of memorandums of understanding for long-term liquefaction services with investment grade counterparties for the Project’s total LNG capacity.
Target Final Investment Decision (FID) continues to be by the end of 2023, however, given the complexity and sequencing of aligning the multiple work streams, which are required to facilitate Project financing, FID may move into early 2024.
The HOA provides Cedar LNG, on an exclusive basis with SHI and Black & Veatch, secure access to shipyard capacity to meet Cedar LNG’s target commercial operations date. The parties expect to finalize a lump sum engineering, procurement, and construction agreement in December of this year.
“This exclusive relationship with SHI and Black & Veatch to lock in shipyard capacity for the construction of the Cedar LNG FLNG vessel is a major step forward for our project,” said Doug Arnell, Cedar LNG Chief Executive Officer. “Through this agreement we are accessing world class expertise in the construction and delivery of floating LNG production vessels, which, together with renewable power from the BC Hydro grid, will result in an environmentally leading, state-of-the-art facility for Cedar LNG, with one of the lowest carbon footprints in the world.”
This agreement builds further momentum for the Project and follows receipt of all major regulatory approvals and the signing of memorandums of understanding for long-term liquefaction services with investment grade counterparties for the Project’s total LNG capacity.
Target Final Investment Decision (FID) continues to be by the end of 2023, however, given the complexity and sequencing of aligning the multiple work streams, which are required to facilitate Project financing, FID may move into early 2024.
Wednesday 8 November 2023
Excelerate Energy and Petrobangla Sign Long-Term LNG Sale and Purchase Agreement
Excelerate Energy, Inc. (NYSE: EE) (Excelerate or the Company) today announced that it has signed a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) with the Bangladesh Oil, Gas & Mineral Corporation (Petrobangla). Under the SPA, Petrobangla has agreed to purchase 0.85 to 1.0 million tonnes per annum (MTPA) of LNG from Excelerate for a term of 15 years beginning January 2026. Excelerate will deliver 0.85 MTPA of LNG in 2026 and 2027 and 1 MTPA from 2028 to 2040.
“Bangladesh is one of the most dynamic LNG markets in the world, and Excelerate has been a key player since the country began importing LNG. Natural gas is important to Bangladesh’s economy, and we look forward to partnering with Petrobangla to help the country meet its rapidly growing energy needs,” said Steven Kobos, President and Chief Executive Officer of Excelerate. “Long-term LNG offtake agreements like this SPA are an essential part of our integrated growth strategy. Our ability to secure long-term SPAs is expected to result in ratable economic uplift on our existing infrastructure and meaningful value creation for our shareholders.”
This long-term SPA represents the next phase of Excelerate’s plan to integrate its business in Bangladesh. Excelerate first opened the Bangladesh market to LNG in 2018 with the development of its integrated Moheshkhali LNG floating storage and regasification unit (FSRU) terminal. In the years since, the Company deployed a second FSRU terminal to the Bay of Bengal and has utilized its infrastructure position to win spot LNG cargos sales into Bangladesh. Today, Excelerate's two FSRUs in Bangladesh deliver approximately 25% of the country’s natural gas supply.
“Bangladesh is one of the most dynamic LNG markets in the world, and Excelerate has been a key player since the country began importing LNG. Natural gas is important to Bangladesh’s economy, and we look forward to partnering with Petrobangla to help the country meet its rapidly growing energy needs,” said Steven Kobos, President and Chief Executive Officer of Excelerate. “Long-term LNG offtake agreements like this SPA are an essential part of our integrated growth strategy. Our ability to secure long-term SPAs is expected to result in ratable economic uplift on our existing infrastructure and meaningful value creation for our shareholders.”
This long-term SPA represents the next phase of Excelerate’s plan to integrate its business in Bangladesh. Excelerate first opened the Bangladesh market to LNG in 2018 with the development of its integrated Moheshkhali LNG floating storage and regasification unit (FSRU) terminal. In the years since, the Company deployed a second FSRU terminal to the Bay of Bengal and has utilized its infrastructure position to win spot LNG cargos sales into Bangladesh. Today, Excelerate's two FSRUs in Bangladesh deliver approximately 25% of the country’s natural gas supply.
Monday 6 November 2023
New Fortress Energy Signs FSRU Charter to Start Operations of LNG Import Terminal in Santa Catarina, Brazil in January 2024
New Fortress Energy Inc. (NASDAQ: NFE) announced that it has executed a definitive agreement to charter the Floating Storage and Regasification Unit (“FSRU”) Energos Winter from Petrobras starting in December 2023. The FSRU Energos Winter will be immediately deployed to Terminal Gas Sul (“TGS”), NFE’s newest LNG import terminal in Santa Catarina, Brazil which will start commercial operations ahead of schedule in January 2024.
“We are extremely pleased to reach this agreement with Petrobras and begin operations at the TGS terminal in Santa Catarina, Brazil ahead of schedule in January 2024. The TGS terminal is a unique, high-growth opportunity for NFE, as connection to the pipeline system in south Brazil offers a diverse and near-term set of opportunities across power and gas supply," said Andrew Dete, Managing Director of New Fortress Energy.
The Energos Winter will be sub-chartered by NFE through the remaining term of the Petrobras charter with Energos infrastructure and then direct-chartered by NFE on a long-term basis with Energos. This will enable NFE to commence commercial operations at TGS in January 2024 and continue uninterrupted service on a long-term basis. Energos Infrastructure, the owner of the Energos Winter, is owned 80% by funds managed by Apollo and 20% by NFE.
The transactions described in this press release are subject to customary terms and conditions.
“We are extremely pleased to reach this agreement with Petrobras and begin operations at the TGS terminal in Santa Catarina, Brazil ahead of schedule in January 2024. The TGS terminal is a unique, high-growth opportunity for NFE, as connection to the pipeline system in south Brazil offers a diverse and near-term set of opportunities across power and gas supply," said Andrew Dete, Managing Director of New Fortress Energy.
The Energos Winter will be sub-chartered by NFE through the remaining term of the Petrobras charter with Energos infrastructure and then direct-chartered by NFE on a long-term basis with Energos. This will enable NFE to commence commercial operations at TGS in January 2024 and continue uninterrupted service on a long-term basis. Energos Infrastructure, the owner of the Energos Winter, is owned 80% by funds managed by Apollo and 20% by NFE.
The transactions described in this press release are subject to customary terms and conditions.
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