Total Plans To Purchase LNG From Tellurian’s Driftwood Project

On Wednesday, Tellurian Inc. reported that parts of French oil major Total SA will be buying one million tons per annum (mtpa) of LNG from the $30 billion Driftwood export project in Louisiana. Total plans to purchase an extra 1.5 mtpa of LNG from Tellurian’s off take volumes, invest $500 million in Driftwood Holdings LP, and buy about $200 million of Tellurian shares.

The Driftwood Pipeline LLC, controlled by Tellurian, has been looking into the construction of a pipeline that would deliver gas to the Driftwood LNG facility. It would run 96 miles in length, consisting of 74 miles of 48-inch pipe, and transport 4 bcf/d of natural gas on average to the facility. The expected production by Driftwood is about 4 billion cubic feet per day (bcfd) of natural gas, which is enough energy for about 5 million U.S. homes for a day.

If Tellurian’s final investment decision is made in 2019, the Driftwood plant could begin service in 2023. When the final decision is made, Total’s aggregate investment in Tellurian is estimated to be around $907 million.

According to the U.S. Energy Information Administration, Total’s world demand for LNG is expected to rise by almost 100 mtpa by 2023. Currently their demand sits at a record high of 316 mtpa.

Tellurian is unique among most U.S. LNG export projects as they offer customers the ability to invest in a full range of services, such as production, pipelines and liquefaction.

Pipeline & Gas Journal

$16 Billion LNG Project by Energy Transfer Being Strongly Considered

Energy Transfer is seriously considering pursuing a major import-to-export LNG conversion project near Lake Charles, Louisiana by 2020. The cost is estimated to be $16.45 billion.

The company ultimately envisions having three LNG trains at the site capable of exporting 16.45 million metric tons of LNG per year.

Energy Transfer LP owns and operates plenty of natural gas pipeline networks and storage facilities, but the company has yet to build its own export terminal.

Energy Transfer LP is inching closer and closer towards throwing its hat into the liquefied natural gas exporting ring at a time when the most underutilized assets within Energy Transfer’s operations is its liquefied natural gas import terminal in Lake Charles, Louisiana.

Seeking Alpha

Kinder Morgan Allocates $2.3 Billion in Discretionary Budget to Natural Gas Projects

Kinder Morgan’s Vice President and Chief Financial Officer David Michels gave a peek at the 2019 budget, announcing that nearly $2.3 billion of Kinder Morgan’s $3.1 billion discretionary budget will be allocated to natural gas projects.

Two of their biggest projects are pipelines that will move natural gas from the Permian Basin of West Texas to the Gulf Coast.

Kinder Morgan is leading a joint venture with three other companies to bring the Gulf Coast Express Pipeline into service by October.

The cost of the 42-inch pipeline is $1.75 billion and will move 2 billion cubic feet of natural gas per day from the Waha Hub in the Permian Basin to the Agua Dulce hub near Corpus Christi.

The company is also a lead developer in another 42-inch pipeline, the $2.1 billion Permian Highway Pipeline. It is expected to come into service in Oct. 2020 and move 2 billion cubic feet of natural gas from the Waha Hub to the Katy Hub near Houston.
Kinder Morgan is also eyeing projects to boost its natural gas exports to Mexico and develop other pipelines to support the growing liquefied natural gas industry along the Gulf Coast.

The company plans to put its own Elba Island KNG export terminal near Savannah, Georgia into service by the end of the first quarter.


Tellurian's Driftwood LNG Project in Louisiana Gets Boost After Environmental Approval

Tellurian Inc’s proposed Driftwood LNG project in Louisiana took a major step forward on Friday as a final environmental report was issued by the FERC.

Now the company will await another order from the FERC to allow construction and operation of the 27.6 million tonne per annum liquefaction plant aimed at meeting growing global demand for the supercooled fuel.

A final investment decision is on track for the first half of 2019 with the first LNG expected in 2023.

Tellurian is also planning on developing pipelines to transport gas from shale formations in Texas and Louisiana to LNG terminals and other Gulf Coast customers.

Seeking Alpha

Cheniere’s Corpus Christi Train 2 Gets Approval to Start Operating

Cheniere’s request to introduce gas and begin operation for the Corpus Christi LNG’s Train 2 fuel gas system has been approved by the FERC.

FERC noted that the approval does not grant Cheniere the authority to introduce hazardous fluids into other facilities at the LNG terminal.

The facility in Corpus Christi consists of three large-scale LNG production units and supporting infrastructure. Seven additional smaller trains have also been proposed.

Train 2 is expected to reach substantial completion in the second half of 2019 with Train 3 to follow in the second half of 2021.

LNG World News

Cheniere Energy Requests Permission to Bring Billion Dollar Midship NatGas Pipeline in Oklahoma Into Service

Cheniere Energy Inc asked U.S. energy regulators on Friday for permission to start working on their $1.025 billion Midship natural gas pipeline in Oklahoma.

The company asked the FERC for authorization to start building the proposed 234-mile pipeline in three segments. The project is expected to be complete by early 2019, Cheniere said.

Midship is designed to deliver 1.44 billion cubic feet per day (bcfd) of gas from the Anadarko basin to existing pipelines near Bennington, Oklahoma to transport liquefied natural gas to Gulf Coast and Southeast markets.

Expectation of total U.S. LNG export capacity should rise to 8.3 bcfd by the end of 2019 and 9.6 bcfd by the end of 2020 from 3.8 bcfd now.

Most of the U.S. LNG export terminals are located or being built along the Gulf of Mexico in Louisiana and Texas


$4.8 Billion Allocated to Pipeline as Shell's Massive $31 Billion LNG Project Gets Approved

The $31 billion LNG Canada project led by Royal Dutch Shell was approved on Tuesday, making it the fuel’s first major new project to win approval in recent years.

Construction will start immediately, with first shipments expected before 2025. The aim is to feed the surging demand from Asian buyers, primarily China.

The project will deliver LNG to Asia in about half the time it would take if it was coming from the U.S. Gulf Coast, LNG Canada said.

The project’s $31 billion price tag includes the export terminal, the associated pipeline, pre-construction and site work, contingency and upstream carrying costs.

The Coastal GasLink Pipeline will be in the $4.8 billion range.

Construction on the pipeline is expected in early 2019. Pipeline operator TransCanada Corp will build the pipelines which will carry natural gas from Montney gas-producing region of British Columbia and Alberta to the LNG Canada facility.

The project owners will provide their own natural gas supply and will individually market their share of LNG.

LNG Canada is the biggest greenfield project to be approved globally since Russia’s Yamal LNG in 2013, Dulles Wang, director, North America gas at Wood Mackenzie said in an email note.

Prime Minister Justin Trudeau said that the project, which will be built in the northern community of Kitimat, British Columbia, marks the largest private-sector investment project in Canadian history.

“We can’t build energy projects like we did in the old days where the environment and the economy were seen as opposing forces,” Trudeau said. “They must go together.”


Tellurian's Driftwood LNG Export Terminal on Track for Projected 2023 Start

U.S liquefied natural gas company Tellurian Inc said on Wednesday that construction of its Driftwood LNG export Terminal in Louisiana remains on track to begin operations in 2023.

The company said it was on schedule to announce its $27.5 billion project’s partners in the third or fourth quarter.

Tellurian said it has about 25 customers already interested in partnering with and buying gas from the project. They are one of over two dozen LNG export projects looking to enter service in the next decade.

Tellurian estimated that FERC would approve construction of Driftwood in January 2019, which would enable Tellurian to make a final investment decision and begin building the project during the first half of 2019.

Current partners include Total SA, General Electric Co, and Bechtel.

Driftwood will have the capacity to produce 27.6 million tonnes per annum of LNG or 4 billion cubic feet per day of gas.


Kinder Morgan Delaying Georgia Export Terminal to Fourth Quarter

Kinder Morgan Inc said on Wednesday that their nearly $2 billion Elba liquefied natural gas export terminal in Georgia would have its startup of the first liquefaction unit delayed to the fourth quarter of 2018 instead of the third quarter.

Kinder Morgan also said that they expect the remaining nine units to enter service over a staggered period of time by the third quarter of 2019.

The project would be able to liquefy about 2.5 million tonnes per annum of LNG, which is equal to about 0.35 billion cubic feet per day of natural gas.

In a separate project, Kinder Morgan said it was evaluating if its proposed $2 billion Permian Highway gas pipeline could be turned into a bigger project by using 48-inch pipe instead of 42-inch pipe.

Kinder Morgan said the first phase of the Midland Lateral of its 2-bcfd Gulf Coast Express gas pipeline was expected to enter service on August 1 and the entire $1.75 billion Gulf Coast project to have a scheduled service date of October 2019.