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 BASF (“BASF”).
Under the SPA, BASF has agreed to purchase up to approximately 0.8 million tonnes per annum (“mtpa”) of LNG 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 in mid-2026 and, subject to a positive Final Investment Decision with respect to the first train (“Train Seven”) of the Sabine Pass Liquefaction Expansion Project (“SPL Expansion Project”) in Louisiana, will increase to approximately 0.8 mtpa upon the start of commercial operations of Train Seven. The term of the SPA extends through 2043.
“We are pleased to enter into this long-term relationship with BASF, a global leader in the chemical industry,” said Anatol Feygin, Cheniere’s Executive Vice President and Chief Commercial Officer. “This SPA demonstrates the critical role US natural gas plays in providing long-term secure, sustainable and affordable energy for Europe. With this agreement, we are supporting the objectives of one of Europe’s key industrial end-use consumers to ensure stability of its supply chain.”
“By establishing our own dedicated LNG supply chain with Cheniere, we are diversifying our energy and raw materials portfolio at a time of critical changes in the European gas market, which is marked by increased demand and volatile prices for LNG,” said Dr. Dirk Elvermann, BASF’s Chief Financial Officer. “While we are reducing our dependence on fossil fuels to reach our goal of net zero CO2 emissions by 2050, this agreement will ensure reliable supply of natural gas at competitive terms.”
The SPL Expansion Project is being developed for up to approximately 20 mtpa of total 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 National Environmental Policy Act.
Tuesday, 22 August 2023
Monday, 7 August 2023
Air Products’ LNG Liquefaction Technology and Equipment Selected for NextDecade’s Rio Grande LNG Project
Air Products (NYSE: APD), the world’s leader in liquefied natural gas (LNG) technology and equipment, today announced it has signed agreements with Bechtel Energy Inc. to supply its proprietary LNG process technology and equipment to NextDecade’s Rio Grande LNG Phase 1 Project in the Port of Brownsville, Texas. The project will include three natural gas liquefaction trains employing Air Products’ liquefaction equipment with a production capability of approximately 17.6 million tonnes per annum (MTPA) of LNG.
Air Products’ coil-wound heat exchangers (CWHEs) and AP-C3MR™ LNG Process technology have been selected for their proven reliability for large-scale LNG production. The CWHEs will be manufactured at Air Products’ world-class LNG equipment manufacturing facility in Port Manatee, Florida.
“We are pleased to be selected to provide our LNG technology and equipment for the Rio Grande LNG project with its focus on sustainability. Air Products’ LNG processes and equipment provide for low emissions and carbon intensity with the AP-C3MR LNG Process being the industry standard and used to produce more LNG than any other process in the world. Additionally, this project enables us to further support the growing North American LNG market,” said Dr. Samir J. Serhan, Air Products’ Chief Operating Officer.
“We’re proud to partner with Air Products, who like Bechtel bring a proven track record of excellence to the Rio Grande LNG project,” said Paul Marsden, President of Bechtel Energy. “Using Air Products’ state-of-the-art liquefaction technology, we look forward to delivering an exactingly engineered, world-class plant that will enable NextDecade to produce lower carbon-intensive LNG, contributing to energy security and supporting the energy transition.”
Air Products’ LNG equipment manufacturing facility opened in January 2014 and completed a 60% expansion in October 2019 to meet the needs of the ever-growing LNG industry. In October 2018, a new LNG equipment test facility (ETF) was dedicated, which enables Air Products to continually improve the reliability and yield produced from its LNG equipment, and to design new equipment.
Air Products’ proprietary LNG process technology and equipment, vital to helping meet the world’s increasing energy needs and desire for clean energy, processes and cryogenically liquefies valuable natural gas for consumer and industrial use. For over 50 years Air Products has manufactured LNG heat exchangers, which currently operate in over 100 LNG trains in 20 countries around the world.
Typically, an LNG heat exchanger can be as large as over 15 feet (5 meters) in diameter and 180 feet (55 meters) long. A finished unit can weigh as much as 500 tons.
Air Products’ LNG process technology and equipment is the heart of an LNG production plant. The technology, in place at some of the most remote locations around the world, takes natural gas and unlocks its value by liquefying it and making it possible to ship it economically. Typically, the LNG is eventually re-gasified for energy uses.
The majority of total worldwide LNG is produced with Air Products’ technology. In support of the LNG industry, Air Products provides process technology and key equipment for the natural gas liquefaction process for large export plants, small and mid-sized LNG plants, floating LNG plants and LNG peak shavers. Upstream, Air Products provides both nitrogen and natural gas dehydration membrane systems for offshore platforms. Downstream, Air Products provides membrane nitrogen generators for LNG carriers and land-based membrane and cryogenic nitrogen systems for LNG import terminals and baseload LNG plants.
Air Products’ coil-wound heat exchangers (CWHEs) and AP-C3MR™ LNG Process technology have been selected for their proven reliability for large-scale LNG production. The CWHEs will be manufactured at Air Products’ world-class LNG equipment manufacturing facility in Port Manatee, Florida.
“We are pleased to be selected to provide our LNG technology and equipment for the Rio Grande LNG project with its focus on sustainability. Air Products’ LNG processes and equipment provide for low emissions and carbon intensity with the AP-C3MR LNG Process being the industry standard and used to produce more LNG than any other process in the world. Additionally, this project enables us to further support the growing North American LNG market,” said Dr. Samir J. Serhan, Air Products’ Chief Operating Officer.
“We’re proud to partner with Air Products, who like Bechtel bring a proven track record of excellence to the Rio Grande LNG project,” said Paul Marsden, President of Bechtel Energy. “Using Air Products’ state-of-the-art liquefaction technology, we look forward to delivering an exactingly engineered, world-class plant that will enable NextDecade to produce lower carbon-intensive LNG, contributing to energy security and supporting the energy transition.”
Air Products’ LNG equipment manufacturing facility opened in January 2014 and completed a 60% expansion in October 2019 to meet the needs of the ever-growing LNG industry. In October 2018, a new LNG equipment test facility (ETF) was dedicated, which enables Air Products to continually improve the reliability and yield produced from its LNG equipment, and to design new equipment.
Air Products’ proprietary LNG process technology and equipment, vital to helping meet the world’s increasing energy needs and desire for clean energy, processes and cryogenically liquefies valuable natural gas for consumer and industrial use. For over 50 years Air Products has manufactured LNG heat exchangers, which currently operate in over 100 LNG trains in 20 countries around the world.
Typically, an LNG heat exchanger can be as large as over 15 feet (5 meters) in diameter and 180 feet (55 meters) long. A finished unit can weigh as much as 500 tons.
Air Products’ LNG process technology and equipment is the heart of an LNG production plant. The technology, in place at some of the most remote locations around the world, takes natural gas and unlocks its value by liquefying it and making it possible to ship it economically. Typically, the LNG is eventually re-gasified for energy uses.
The majority of total worldwide LNG is produced with Air Products’ technology. In support of the LNG industry, Air Products provides process technology and key equipment for the natural gas liquefaction process for large export plants, small and mid-sized LNG plants, floating LNG plants and LNG peak shavers. Upstream, Air Products provides both nitrogen and natural gas dehydration membrane systems for offshore platforms. Downstream, Air Products provides membrane nitrogen generators for LNG carriers and land-based membrane and cryogenic nitrogen systems for LNG import terminals and baseload LNG plants.
Woodside To Sell 10% Scarborough Interest to LNG Japan
Woodside has established a strategic relationship with LNG Japan which involves three elements: equity in the Scarborough Joint Venture, potential LNG offtake and collaboration on opportunities in new energy.
Woodside has entered into a sale and purchase agreement with LJ Scarborough Pty Ltd (LNG Japan) for the sale of a 10% non-operating participating interest in the Scarborough Joint Venture (the Transaction).
The purchase price is US$500 million, subject to adjustments. LNG Japan will reimburse Woodside for its share of expenditure for the Scarborough project from the Transaction effective date of 1 January 2022. On completion of the Transaction, expected in the first quarter of 2024, the estimated total consideration comprising the purchase price, reimbursed expenditure and escalation is approximately US$880 million.
Completion of the Transaction is subject to conditions precedent including Foreign Investment Review Board approval, National Offshore Petroleum Titles Administrator approvals and Western Australian Government approvals.
As part of the broader strategic relationship, Woodside and LNG Japan Corporation have entered into a non-binding heads of agreement for the sale and purchase of 12 LNG cargoes per year (approximately 0.9 million tonnes per annum) for 10 years commencing in 2026.
Woodside has also entered into non-binding agreements to collaborate with Sumitomo Corporation and Sojitz Corporation on global opportunities in new energy which could include ammonia, hydrogen, carbon capture and storage (CCS) and carbon management technology.
Following completion, Woodside will hold a 90% interest in the Scarborough Joint Venture and remain as operator. Scarborough gas will be processed at the Pluto LNG facility, where Woodside is currently constructing Pluto Train 2. Woodside is also operator of the Pluto Train 2 Joint Venture and holds a 51% participating interest.
Thursday, 13 July 2023
Announcement Related to Lake Charles LNG Signing Heads of Agreements for a Total of 3.6 MTPA
Energy Transfer LP announced today that it has entered into three non-binding Heads of Agreement (HOAs) related to long-term LNG offtake from its Lake Charles LNG project for an aggregate of 3.6 mtpa. One of the HOAs specifies that a Japanese consortium would purchase 1.6 mtpa for a 20-year term, subject to an option to convert the offtake arrangement to an equity participation providing for the same volume of LNG. Under one of the HOAs, Chesapeake Energy Marketing LLC would supply to Lake Charles LNG volumes of natural gas sufficient to produce 1.0 mtpa of LNG for a period of 15 years and, post liquefaction, Gunvor Singapore Pte Ltd would purchase LNG from Chesapeake at a price indexed to the Japan Korea Marker (JKM) for a period of 15 years. The other HOA is with a U.S. customer and relates to a tolling arrangement for 1.0 mtpa for a 15-year term. The HOAs are subject to the negotiation and execution of definitive agreements.
“We are pleased with the continued confidence of our customers in the Lake Charles LNG project,” said Tom Mason, President of Lake Charles LNG. “These HOAs are important for the successful development of the project, along with the continuation of certain pre-FID work with one of our EPC contractors.”
“We are pleased with the continued confidence of our customers in the Lake Charles LNG project,” said Tom Mason, President of Lake Charles LNG. “These HOAs are important for the successful development of the project, along with the continuation of certain pre-FID work with one of our EPC contractors.”
NextDecade Announces Positive Final Investment Decision on Rio Grande LNG Phase 1
NextDecade Corporation (NextDecade, the Company) (NASDAQ: NEXT) is proud to announce it has made a positive final investment decision (FID) to construct the first three liquefaction trains (Phase 1) at the Company’s 27 million tonnes per annum (MTPA) Rio Grande LNG (RGLNG) export facility in Brownsville, Texas.
Today, the Company:
In conjunction with making a positive FID, RGLNG issued the notice to proceed (NTP) to Bechtel Energy Inc. (Bechtel) to begin construction of Phase 1 under its lump-sum turnkey engineering, procurement, and construction contracts (EPC). The final EPC cost at NTP is approximately $12.0 billion. The remaining expected project costs to be covered by the financing that closed today are: owner’s costs and contingencies of approximately $2.3 billion, dredging for the Brazos Island Harbor Channel Improvement Project, conservation of more than 4,000 acres of wetland and wildlife habitat area and installation of utilities of approximately $600 million, and interest during construction and other financing costs of approximately $3.1 billion.
Phase 1, with nameplate liquefaction capacity of 17.6 MTPA, has 16.2 MTPA of long-term binding LNG sale and purchase agreements (SPAs) with TotalEnergies, Shell NA LNG LLC, ENN LNG Pte Ltd, Engie S.A., ExxonMobil LNG Asia Pacific, Guangdong Energy Group, China Gas Hongda Energy Trading Co., Galp Trading S.A. and Itochu Corporation.
“Achieving FID and issuing NTP on RGLNG Phase 1 is a landmark event reflecting years of hard work and dedication by NextDecade’s employees, shareholders, construction partners, equipment suppliers, and customers,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “I want to specifically recognize the Rio Grande Valley community, the Port of Brownsville and the countless leaders and officials at the local, state, and federal levels that have supported us throughout the development of RGLNG Phase 1.”
“Achieving FID is an important milestone in NextDecade’s mission of becoming a reliable supplier of low-carbon LNG that will replace coal with a cleaner source of energy,” said Bayo Ogunlesi, Chairman and Chief Executive Officer of Global Infrastructure Partners. “Our investment in RGLNG affirms GIP’s commitment to promoting decarbonization, energy security and energy affordability.”
“We are delighted with this final investment decision that enables us to launch the construction of this new LNG liquefaction plant in the United States, to which TotalEnergies will contribute its expertise in the development of major LNG projects,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies. “This project gives TotalEnergies access to competitive LNG thanks to its low production costs. LNG from this first phase will boost TotalEnergies U.S. LNG export capacity to over 15 MTPA by 2030, and thus our ability to contribute to European gas security, and to provide customers in Asia with an alternative form of energy that is half as emissive as coal.”
“Today’s announcement marks a pivotal milestone in Mubadala’s enduring partnership with NextDecade in the development of RGLNG,” said Khaled Abdulla Al Qubaisi, Chief Executive Officer of Mubadala’s Real Estate & Infrastructure Investments platform. “Mubadala is delighted to welcome GIP, GIC and TotalEnergies into the partnership as RGLNG enters its next phase of development.”
“NextDecade is on a mission to produce lower-carbon intensive LNG for its customers, and we’re honored to be their partner,” said Paul Marsden, President of Bechtel Energy. “Today, as we commence engineering, procurement, and construction on the first phase of this project, we reaffirm our commitment to the community through quality jobs, training, and support for the supply chain and small businesses.”
Under the joint venture agreement executed today, NextDecade will hold equity interests that entitle the Company to receive up to 20.8% of the cash flows generated by Phase 1 during operations. Financial Investors and TTE will hold equity interests that entitle them to a minimum of 62.5% and 16.7% of the cash flows generated by Phase 1 during operations, respectively.
As part of the transaction, Financial Investors and TTE each have options to invest in RGLNG Train 4 and Train 5 equity, and options to invest in the planned carbon capture and sequestration project at RGLNG. TTE’s right to invest in Train 4 and Train 5 is conditioned on exercising their LNG purchase rights of 1.5 MTPA in each of Train 4 and Train 5. The Company believes these options with its partners will enable NextDecade to deliver the full FERC-approved five-train RGLNG project over time.
"We look forward to delivering this important LNG project that will supply the world with reliable, and lower-carbon intensive LNG, while proudly supporting the Rio Grande Valley community by investing billions of dollars and creating thousands of much needed and well-deserved jobs,” said Schatzman. “Now our focus turns to safely constructing Phase 1 on time and on budget and progressing commercial negotiations on RGLNG Train 4 and Train 5 to further expand our LNG platform and grow NextDecade shareholder value.”
Latham & Watkins LLP acted as lead outside counsel to NextDecade on the project financing transactions. MUFG Bank, Ltd. acted as financial advisor to NextDecade in connection with the debt financing and Macquarie Capital (USA) Inc. acted as financial advisor to NextDecade in connection with the equity financing.
Kirkland & Ellis LLP acted as legal counsel to GIP, Jones Day acted as legal counsel to TotalEnergies, Sidley Austin LLP acted as legal counsel to GIC, White & Case LLP acted as legal counsel to Mubadala and Norton Rose Fulbright US LLP acted as legal counsel to the lenders.
Today, the Company:
- Executed and closed a joint venture agreement for Phase 1 which included approximately $5.9 billion of financial commitments from Global Infrastructure Partners (GIP), GIC, Mubadala Investment Company (Mubadala), (collectively, the Financial Investors), and TotalEnergies (NYSE: TTE);
- Committed to invest approximately $283 million in Phase 1 including $125 million of pre-FID capital investments into Phase 1;
- Closed senior secured non-recourse bank credit facilities of $11.6 billion, consisting of $11.1 billion in construction term loans and a $500 million working capital facility; and
- Closed a $700 million senior secured non-recourse private placement notes offering.
In conjunction with making a positive FID, RGLNG issued the notice to proceed (NTP) to Bechtel Energy Inc. (Bechtel) to begin construction of Phase 1 under its lump-sum turnkey engineering, procurement, and construction contracts (EPC). The final EPC cost at NTP is approximately $12.0 billion. The remaining expected project costs to be covered by the financing that closed today are: owner’s costs and contingencies of approximately $2.3 billion, dredging for the Brazos Island Harbor Channel Improvement Project, conservation of more than 4,000 acres of wetland and wildlife habitat area and installation of utilities of approximately $600 million, and interest during construction and other financing costs of approximately $3.1 billion.
Phase 1, with nameplate liquefaction capacity of 17.6 MTPA, has 16.2 MTPA of long-term binding LNG sale and purchase agreements (SPAs) with TotalEnergies, Shell NA LNG LLC, ENN LNG Pte Ltd, Engie S.A., ExxonMobil LNG Asia Pacific, Guangdong Energy Group, China Gas Hongda Energy Trading Co., Galp Trading S.A. and Itochu Corporation.
“Achieving FID and issuing NTP on RGLNG Phase 1 is a landmark event reflecting years of hard work and dedication by NextDecade’s employees, shareholders, construction partners, equipment suppliers, and customers,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “I want to specifically recognize the Rio Grande Valley community, the Port of Brownsville and the countless leaders and officials at the local, state, and federal levels that have supported us throughout the development of RGLNG Phase 1.”
“Achieving FID is an important milestone in NextDecade’s mission of becoming a reliable supplier of low-carbon LNG that will replace coal with a cleaner source of energy,” said Bayo Ogunlesi, Chairman and Chief Executive Officer of Global Infrastructure Partners. “Our investment in RGLNG affirms GIP’s commitment to promoting decarbonization, energy security and energy affordability.”
“We are delighted with this final investment decision that enables us to launch the construction of this new LNG liquefaction plant in the United States, to which TotalEnergies will contribute its expertise in the development of major LNG projects,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies. “This project gives TotalEnergies access to competitive LNG thanks to its low production costs. LNG from this first phase will boost TotalEnergies U.S. LNG export capacity to over 15 MTPA by 2030, and thus our ability to contribute to European gas security, and to provide customers in Asia with an alternative form of energy that is half as emissive as coal.”
“Today’s announcement marks a pivotal milestone in Mubadala’s enduring partnership with NextDecade in the development of RGLNG,” said Khaled Abdulla Al Qubaisi, Chief Executive Officer of Mubadala’s Real Estate & Infrastructure Investments platform. “Mubadala is delighted to welcome GIP, GIC and TotalEnergies into the partnership as RGLNG enters its next phase of development.”
“NextDecade is on a mission to produce lower-carbon intensive LNG for its customers, and we’re honored to be their partner,” said Paul Marsden, President of Bechtel Energy. “Today, as we commence engineering, procurement, and construction on the first phase of this project, we reaffirm our commitment to the community through quality jobs, training, and support for the supply chain and small businesses.”
Under the joint venture agreement executed today, NextDecade will hold equity interests that entitle the Company to receive up to 20.8% of the cash flows generated by Phase 1 during operations. Financial Investors and TTE will hold equity interests that entitle them to a minimum of 62.5% and 16.7% of the cash flows generated by Phase 1 during operations, respectively.
As part of the transaction, Financial Investors and TTE each have options to invest in RGLNG Train 4 and Train 5 equity, and options to invest in the planned carbon capture and sequestration project at RGLNG. TTE’s right to invest in Train 4 and Train 5 is conditioned on exercising their LNG purchase rights of 1.5 MTPA in each of Train 4 and Train 5. The Company believes these options with its partners will enable NextDecade to deliver the full FERC-approved five-train RGLNG project over time.
"We look forward to delivering this important LNG project that will supply the world with reliable, and lower-carbon intensive LNG, while proudly supporting the Rio Grande Valley community by investing billions of dollars and creating thousands of much needed and well-deserved jobs,” said Schatzman. “Now our focus turns to safely constructing Phase 1 on time and on budget and progressing commercial negotiations on RGLNG Train 4 and Train 5 to further expand our LNG platform and grow NextDecade shareholder value.”
Latham & Watkins LLP acted as lead outside counsel to NextDecade on the project financing transactions. MUFG Bank, Ltd. acted as financial advisor to NextDecade in connection with the debt financing and Macquarie Capital (USA) Inc. acted as financial advisor to NextDecade in connection with the equity financing.
Kirkland & Ellis LLP acted as legal counsel to GIP, Jones Day acted as legal counsel to TotalEnergies, Sidley Austin LLP acted as legal counsel to GIC, White & Case LLP acted as legal counsel to Mubadala and Norton Rose Fulbright US LLP acted as legal counsel to the lenders.
Wednesday, 12 July 2023
Centrica signs major LNG supply agreement
Centrica and Delfin Midstream Inc. today announced the signature of a long-term Sale and Purchase Agreement for 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 will see Centrica take delivery of around 14 LNG cargoes per year and could provide enough energy to heat 5% of UK homes for 15 years.
The deal, with a market value of $8bn, marks an additional move by Centrica to build further resilience in the UK's energy security. It follows a three-year supply agreement with Equinor that will heat 4.5m UK homes through to 2024 and the reopening of the Rough gas storage facility in October 2022. Rough now provides half of the UK's total gas storage capacity with the potential to store over 50 billion cubic feet (bcf) of gas, enough to heat almost 10% of UK homes throughout winter.
As a foundation customer of the Delfin LNG project, Centrica's offtake underpins investment in the next wave of incremental LNG supply from the US. It will complement a diversified and flexible LNG portfolio.
Chris O'Shea, Group Chief Executive, Centrica said:
"This agreement is good news for our customers and the country. The last year has demonstrated the critical importance of investing in the UK's energy security. Addressing the immediate impact of the energy crisis on our customers has been one of our biggest priorities, but I'm acutely aware that we also need to look ahead to manage future risks and secure our supplies.
Natural Gas is an essential transition fuel in the move to net zero and securing international agreements such as this are vital to the UK's energy security. As well as strengthening the trade links between the UK and US, this deal - alongside reopening Rough and our major deal with Equinor - shows that Centrica is investing heavily to future-proof the UK's energy supply and address one of the underlying causes of the energy crisis. We stand ready to invest several billion pounds in additional projects, creating thousands of new UK jobs, with the right regulatory framework."
Dudley Poston, CEO of Delfin said:
"We are excited to finalize this SPA with Centrica, converting our previously announced Heads of Agreement and reaching another important milestone for our Deepwater Port LNG Export Facility.
"There is growing global demand for long-term, scalable LNG supply. With the off-take capacity for Delfin's first FLNG Vessel now sold, we continue to move towards Final Investment Decision and bring this important project forward, becoming a partner to countries like the U.K. as it continues to make progress bolstering national energy security and driving down prices with clean, reliable LNG."
The deal follows a Heads of Agreement between Centrica and Delfin in August 2022. Operations and first LNG are expected to commence at the Delfin Deepwater Port in 2027.
The deal, with a market value of $8bn, marks an additional move by Centrica to build further resilience in the UK's energy security. It follows a three-year supply agreement with Equinor that will heat 4.5m UK homes through to 2024 and the reopening of the Rough gas storage facility in October 2022. Rough now provides half of the UK's total gas storage capacity with the potential to store over 50 billion cubic feet (bcf) of gas, enough to heat almost 10% of UK homes throughout winter.
As a foundation customer of the Delfin LNG project, Centrica's offtake underpins investment in the next wave of incremental LNG supply from the US. It will complement a diversified and flexible LNG portfolio.
Chris O'Shea, Group Chief Executive, Centrica said:
"This agreement is good news for our customers and the country. The last year has demonstrated the critical importance of investing in the UK's energy security. Addressing the immediate impact of the energy crisis on our customers has been one of our biggest priorities, but I'm acutely aware that we also need to look ahead to manage future risks and secure our supplies.
Natural Gas is an essential transition fuel in the move to net zero and securing international agreements such as this are vital to the UK's energy security. As well as strengthening the trade links between the UK and US, this deal - alongside reopening Rough and our major deal with Equinor - shows that Centrica is investing heavily to future-proof the UK's energy supply and address one of the underlying causes of the energy crisis. We stand ready to invest several billion pounds in additional projects, creating thousands of new UK jobs, with the right regulatory framework."
Dudley Poston, CEO of Delfin said:
"We are excited to finalize this SPA with Centrica, converting our previously announced Heads of Agreement and reaching another important milestone for our Deepwater Port LNG Export Facility.
"There is growing global demand for long-term, scalable LNG supply. With the off-take capacity for Delfin's first FLNG Vessel now sold, we continue to move towards Final Investment Decision and bring this important project forward, becoming a partner to countries like the U.K. as it continues to make progress bolstering national energy security and driving down prices with clean, reliable LNG."
The deal follows a Heads of Agreement between Centrica and Delfin in August 2022. Operations and first LNG are expected to commence at the Delfin Deepwater Port in 2027.
Baker Hughes to Supply 3 Liquefaction Trains for NextDecade’s Rio Grande LNG Project
Baker Hughes (NASDAQ: BKR), an energy technology company, announced Thursday it has been awarded an order by Bechtel Energy Inc. (Bechtel) – to be booked in the second quarter of 2023 – to supply three Main Refrigerant Compressors (MRCs) for NextDecade’s Rio Grande LNG project in the Port of Brownsville, Texas.
In total, Baker Hughes will supply six Frame 7 gas turbines paired with 18 centrifugal compressors across Rio Grande’s first three LNG trains in a parallel configuration arrangement, providing more operational flexibility – for a nameplate capacity of 17.61 MTPA.
“This order builds on our longstanding relationship with Bechtel and is a significant milestone in our partnership with NextDecade, supporting them on this key LNG project,” said Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes. “We are delighted that our proven and reliable technology solution will support the production of LNG in the U.S., which is crucial in balancing energy affordability, security and sustainability globally.”
The Baker Hughes gas technology solution chosen for Rio Grande LNG provides NextDecade with the highest production levels for the plant’s design, as well as operational flexibility and high availability. The Frame 7 gas turbine is well-proven for its energy efficiency, availability, reliability and maintainability.
Packaging of the turbine/compressor train, a unique Baker Hughes offering, as well as assembly of the compressors and testing of the trains, will take place at Baker Hughes’ facilities in Italy.
Building on almost 40 years of experience in the LNG space, Baker Hughes continues to help meet global energy demand by providing advanced, efficient and reliable solutions for the U.S. natural gas export sector. The announcement follows another recent contract awarded by Bechtel to Baker Hughes to supply two liquefaction trains for another LNG project in Texas, announced in March 2023.
In total, Baker Hughes will supply six Frame 7 gas turbines paired with 18 centrifugal compressors across Rio Grande’s first three LNG trains in a parallel configuration arrangement, providing more operational flexibility – for a nameplate capacity of 17.61 MTPA.
“This order builds on our longstanding relationship with Bechtel and is a significant milestone in our partnership with NextDecade, supporting them on this key LNG project,” said Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes. “We are delighted that our proven and reliable technology solution will support the production of LNG in the U.S., which is crucial in balancing energy affordability, security and sustainability globally.”
The Baker Hughes gas technology solution chosen for Rio Grande LNG provides NextDecade with the highest production levels for the plant’s design, as well as operational flexibility and high availability. The Frame 7 gas turbine is well-proven for its energy efficiency, availability, reliability and maintainability.
Packaging of the turbine/compressor train, a unique Baker Hughes offering, as well as assembly of the compressors and testing of the trains, will take place at Baker Hughes’ facilities in Italy.
Building on almost 40 years of experience in the LNG space, Baker Hughes continues to help meet global energy demand by providing advanced, efficient and reliable solutions for the U.S. natural gas export sector. The announcement follows another recent contract awarded by Bechtel to Baker Hughes to supply two liquefaction trains for another LNG project in Texas, announced in March 2023.
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