LNG Limited to Boost Production Capacity at Louisiana Export Terminal

LNG Limited, an Australian company has been seeking permission from federal regulators to boost the production at its proposed Magnolia LNG export terminal in Louisiana. The company has already been authorized to produce 8 million metric tons of liquefied natural gas per day, but has made a request to increase the capacity to 8.8 million metric tons per year.

"LNG Limited is committed to building the safest low-cost and most efficient LNG export facility on the U.S. Gulf Coast," LNG Limited Chief Executive Greg Vesey said in statement. "We thank FERC for their previous diligence on Magnolia and are ready for the continued engagement as the agency performs analysis on Magnolia's capacity increase best answered through the preparation of a supplemental EIS."

A notice of intent to prepare a supplemental environmental impact statement for the production capacity increase was issued by Federal Energy Regulatory Commission on last Monday. The company is still waiting on its first supply contracts and a final investment decision on the Magnolia LNG project.


Louisiana Sabine Pass 6 LNG Export Train to Be Built by Cheniere

The biggest supplier of U.S. LNG is planning to build a sixth liquefaction train at its Sabine Pass LNG export terminal in Louisiana, Cheniere Energy said on Monday.

The company has a $2.5 billion contract with Bechtel, the lead contractor building its LNG terminals. It gave Bechtel the notice to proceed with the construction of Sabine 6 and expects the unit to enter service in 2023.

Cheniere’s subsidiary, Cheniere Energy Partners LP has entered into five-year, $1.5 billion senior secured credit facilities with 29 banks and financial institutions to fund a portion of Sabine 6 and a third LNG berth at the plant.

Also all remaining necessary regulatory approvals for the project is expected to receive by the end of 2019, the company said.


Aramco to Buy LNG from Sempra

Saudi Arabian Oil Co., also known as Aramco, under a 20 year agreement, will begin buying 5 million tons of liquid natural gas per year from San Diego based Sempra Energy. As part of the deal, Aramco also will make a 25% equity investment in an LNG export facility under development in Port Arthur, Texas.

"With global demand for LNG expected to grow by around 4% per year ... we see significant opportunities in this market and we will continue to pursue strategic partnerships which enable us to meet rising global demand for LNG," Amin Nasser, the company's CEO said in a news release.

"At Sempra Energy, we are developing one of the largest LNG export infrastructure portfolios in North America, with an eye towards connecting millions of consumers to cleaner, more reliable energy sources," said Jeff Martin, CEO of Sempra, in a statement. He added that partnering with Aramco will help develop the facility and enable the export of American natural gas to global markets.

Sempra Energy recently received authorization for the Port Arthur LNG facility from Federal Energy Regulatory Commission to construct and operate the facility and related pipelines.


Cameron LNG Reaches Final Stage of Train 1 Commissioning

Sempra Energy's Cameron LNG export terminal in Louisiana has reached the final stage of the startup process known as commissioning for its first production unit. The company is planning to construct three production units in total, which are known in the industry as trains at the Cameron LNG export terminal.

Joint venture with the general contractors McDermott International and Chiyoda International Corp. have started introducing natural gas from a pipeline feeding the facility into Train 1 of the liquefied natural gas plant, which signals the end of the construction phase of the project and is regarded as a precursor of LNG production.

"We are extremely proud of the Cameron LNG project team for this achievement and their remarkable safety performance," McDermott International Senior Vic President Mark Coscio said in a statement. "Their accomplishment is more than just a project milestone; it is an impressive feat of engineering and construction. Once Train 1 is fully operational, it will have the capacity to produce 4 million tonnes of LNG per year."

Cameron LNG began commercial operations in July 2009 as a $900 million LNG import terminal, but later Sempra Energy decided to take advantage of record natural gas production from U.S. shale basins to redevelop the Hackberry, Louisiana facility into an export terminal.

In addition to Cameron LNG, the company is also developing the Energia Costa Azul LNG facility in Baja California, Mexico and is seeking to develop the Gulf Coast LNG terminal near Port Arthur.


FERC Approves Commissioning of $13 Billion Freeport LNG’s Export Plant

Federal regulators on Thursday approved a commissioning step for the Freeport LNG’s $13 billion Freeport liquefied natural gas (LNG) export plant in Texas. FERC approved Freeport’s request to introduce hazardous fluids to commission the liquefaction flare pilot system, a step in the process LNG terminals go through as they prepare for service.

According to U.S. engineering firm McDermott International Inc., which is building the plant, expects the first train at Freeport to enter commercial service in the third quarter, Train 2 to enter service in the first quarter of 2020 and Train 3 in the second quarter of 2020. Williams Cos Inc., is building a pipe to connect the plant to the interstate gas system.

Each train at Freeport will have the capacity to produce about 5 million tons per annum (MTPA) of LNG or around 0.7 billion cubic feet per day (bcfd) of natural gas. In addition, Freeport is developing a fourth 5-MTPA liquefaction train at the facility and could make a final investment decision on the train in the second quarter of 2019 with the plant entering service in 2023 or 2024.


$15 Billion Rio Grande LNG Gets Green Light from PHMSA

According to PHMSA’s Deputy Associate Administrator Massoud Tahamtani, the proposed Rio Grande liquefied natural gas export terminal project complies with federal pipeline safety standards. He noted that the facility is being designed to withstand winds up to 150 miles per hour, in a letter of determination made public early Tuesday morning.

FERC will use PHMSA's review to determine if the facility will receive a permit to start construction on six production units that will be able to make more than 16 million metric tons of LNG per year. A final permit decision by FERC is expected in July.

NextDecade Corp will be developing Rio Grande LNG which is one of two proposed export terminals being developed by the company. The company is also in the process of seeking state and federal approval to build the Galveston Bay LNG export terminal in Texas City.

NextDecade is expecting to make a final investment decision on the project during the third quarter, if approved by federal regulators. The liquefied natural gas export terminal and the supporting Rio Bravo pipeline are expected to result in more than $15 billion of private investment and create more than 5,000 construction jobs.


Lake Charles LNG: Final Investment Decision Taken by Energy Transfer and Shell

Energy Transfer and Shell announced that they had signed a project framework agreement to advance the proposed Lake Charles LNG export terminal and that they plan to issue an invitation to tender for engineering, procurement and contracting companies to start bidding on the project, in a joint statement released on Tuesday morning.

“We are pleased to be moving forward with Shell in progressing this major LNG export project," Lake Charles LNG President Tom Mason, President said in a statement. "We believe the combination of our assets and Shell's LNG experience will create a platform for exporting natural gas from the U.S. Gulf Coast to the global marketplace that is unmatched."

Shell entered into a 50-50 joint venture with Energy Transfer in 2016 to develop a liquefaction plant that can produce up to 16.45 million metric tons of LNG per year. Under the terms of their joint venture, Energy Transfer will own and finance the proposed liquefaction facility while Shell will oversee engineering, design and construction work as well as operate the terminal once it is complete.

"Lake Charles presents a material, competitive liquefaction project with the potential to provide Shell with an operated LNG export position on the U.S. Gulf Coast by the time global supply is expected to tighten in the mid-2020's," Shell Vice President Frederic Phipps said in a statement.

If built, the export terminal project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational. Shortly after the shale revolution in 2015 that created a surplus of natural gas in the United States, Energy Transfer got permission from Federal Energy Regulatory Commission to build an export terminal at the site in 2015. The facility site was originally developed as an LNG import terminal in 2006.


Train 5 of Sabine Pass Liquefaction Project Achieves Substantial Completion

In a statement released by Cheniere Energy Partners, L.P, the company has achieved Substantial Completion of Train 5 of the Sabine Pass liquefaction project in Cameron Parish, Louisiana.

According to the statement, commissioning has been completed and Cheniere Partners’ EPC partner Bechtel Oil, Gas and Chemicals Inc. has turned over care, custody, and control of Train 5 to Cheniere Partners.

Under sale and purchase agreements (SPAs) with Centrica plc and Total Gas & Power North America, Inc., the date of first commercial delivery is expected to occur in August 2019, upon which the term of each of these SPAs commences.

Cheniere Partners and Bechtel have now declared Substantial Completion on five liquefaction trains at the SPL Project ahead of each train’s guaranteed completion date and within project budgets.

Financial results of LNG sales from Train 5 going forward will be reflected in the statement of operations of Cheniere Partners and its applicable affiliates with the achievement of Substantial Completion.


$10 Billion Alaska Stand Alone Pipeline Gains Key Federal Approval

Alaska Gasline Development Corp (AGDC) received the last major federal permit needed on March 4th for its proposed $10 billion Alaska Stand Alone Pipeline (ASAP) to supply natural gas to in-state consumers, the company said on Wednesday.

The ASAP is a 733-mile project designed to deliver gas from Alaska’s North Slope to customers in Fairbanks, Anchorage and other parts of the state.

ASAP is part of state-owned AGDC’s proposed $43.4 billion Alaska LNG project. It is designed to liquefy 3.5 billion cubic feet per day of gas for sale to customers in the Asia-Pacific region from a facility to be built in Nikiski on the Kenai Peninsula south of Anchorage, which includes an 807-mile pipeline.

“We see Alaska Stand Alone as a backup plan. We are mostly focused on Alaska LNG,” said AGDC spokesman Tim Fitzpatrick.

The company has planned to make a final investment decision to build the LNG project in early 2020 that would enable it to enter service in 2025, said AGDC in the past.


$18 Billion LNG Deal Expected Between Cheniere Energy and China's Sinopec

The Wall Street Journal and S&P Global Platts reported that the Cheniere Energy is close to signing an $18 billion long-term LNG supply deal with China's state-run oil company Sinopec.

The Journal reported that the deal could be announced end of March as part of a broader US-China trade deal at a summit between U.S. President Donald Trump and Chinese President Xi Jinping.

Recently FERC gave Cheniere the green light to put the first production unit at its Corpus Christi LNG unit into service and begin exports.

Cheniere signed two LNG supply deals with PetroChina International Co. a year ago and weeks after Trump’s trade mission to China in November 2017.

The Wall Street Journal also reported that the deal with Sinopec could also include financing from state-owned Chinese banks for Cheniere to further expand its export capacity.


FERC Approves $680M Project: 200-Mile Pipeline Moving NatGas from Oklahoma to Gulf Coast Will Connect to Kinder & Boardwalk Pipe

Cheniere Energy and a Washington D.C. private equity firm have received approval from the Federal Energy Regulatory Commission on Wednesday to build the 200-mile Midship Pipeline. The project will move natural gas from Oklahoma to destinations along the Gulf Coast and southeastern United States in Oklahoma.

In a statement issued by the companies, $680 million in financing was secured for the 36-inch diameter natural gas pipeline and a notice was issued for contractors Strike LLC, M.G. Dyess, TRC Pipeline Services and Cenergy LLC to proceed with construction.

The Midship Pipeline is designed to move 1.4 billion cubic feet of natural gas per day from Oklahoma's SCOOP and STACK shale plays to delivery point just north of the Red River near Bennington, Oklahoma. The project is expected to be placed in service by the end of the year.

The pipeline will connect to Kinder Morgan's Midcontinent Express Pipeline and the Boardwalk Pipeline Partners-owned Gulf Crossing Pipeline, allowing natural gas from Oklahoma to move to the TexOk Hub near Atlanta, Texas and the Perryville Hub near Tallulah, Louisiana.


Plans for Building Five 100,000-Gallon LNG Storage Facility by Delmarva Power

Delmarva Power submitted a request to the state utility for permission to build a liquefied natural gas storage facility in northern Delaware.

 The company is proposing to build five 100,000 gallon gas storage tanks, which would improve the reliability of its natural gas supply and distribution operations.

The company said this will eliminate the need to renew several expiring interstate pipeline contracts. Also there is a possibility of adding five more to meet future customer demands.

The facility would be built on property near Red Lion that is already home to a Delmarva Power substation and a Bloom Energy fuel cell generation facility, according to a docket filing last week.

Delmarva customers would save an estimated $124 million over 30 years after the construction and operation of the storage facility, company said.


Kinder Morgan Entering LNG Business, FERC Gives Green Light for Elba Island LNG Startup

FERC officials issued an order on Tuesday giving permission to Kinder Morgan to start introducing chemicals into loading pumps. The process will feed a liquefied natural gas storage tank in its Elba Island LNG export terminal in Savannah, Georgia.

This will make Kinder Morgan one step closer to starting up the first of ten production units and mark the company's entrance into the LNG business. "This FERC order brings us one step closer to completing the required commissioning activities for the first unit at Elba Island," Kinder Morgan spokeswoman Katherine Hill said in a statement.

Shell has partnered with Kinder Morgan in a 20-year deal to market and export all the LNG produced at the Georgia facility. The facility will be able to produce up to 2.5 million metric tons of LNG a year.

After the first production unit is online, Kinder Morgan expects to start up the remaining nine productions one by one over nine months’ time. Those ten smaller and modular liquefaction plants will supercool natural gas and condense it to a liquid form that makes it easier to ship.


Exxon, Qatar Petroleum Investing $10 Billion in Texas LNG Export Plant Expansion

Exxon is teaming up with Qatar Petroleum through a $10 billion project to expand a liquefied natural gas export plant in Texas.

The Golden Pass LNG project in Sabine Pass, Texas is expected to begin early this year as 16 million tonnes of LNG production capacity will be added after the projected 2024 start date.

 “Golden Pass will provide an increased, reliable, long-term supply of liquefied natural gas to global gas markets, stimulate local growth and create thousands of jobs,” Exxon Chief Executive Darren Woods said of the final investment decision.

U.S. Secretary of Energy Rick Perry added, “The deal is proof that two of the world’s top energy producers can work together and “support rather than subvert an open energy marketplace,”

Exxon will hold a 30 percent stake in the Golden Pass and Qatar Petroleum will hold 70 percent.

Exxon has also signed an agreement to buy a 12.4 percent interest in the existing terminal and a pipeline from ConocoPhillips, subject to regulatory approvals.


Cheniere Energy To Begin Exporting LNG to Corpus Christi

Cheniere Energy will export its first shipment of liquefied natural gas from Corpus Christi. The company will receive natural gas from the Eagle Ford Shale, Permian Basin and other sources through pipeline, and then liquefy the gas and use tankers to export it to customers in Europe, Latin America and Asia.

Although the first shipment’s destination is not yet clear, the export terminal’s customers will hail from Europe, Asia, and Australia.

The company expects a second processing unit known as Train 2 to be completed during the first quarter of 2019 in Corpus Christi.

Crews with general contractor Bechtel began constructing a third processing unit known as Train 3 during the summer.

Houston Chronicle

Enable Midstream Launches Nonbinding Open Season for New Gulf Coast Gas Pipeline

Enable Midstream Partners out of Oklahoma City, launched a nonbinding open season to gather additional interest for natural gas transportation capacity on the Gulf Run Pipeline, a planned interstate transportation project designed to connect US gas supplies to LNG export markets on the Gulf Coast.

The project is backed by an unnamed cornerstone shipper for a 20-year, 1.1 bcfd of firm capacity service, according to the Oil & Gas Journal.

Up to an estimated 165 miles of large-diameter pipeline will be constructed from northern Louisiana to Gulf Coast markets.

The project is designed to utilize the company’s transportation system to provide access to gas-producing regions, including the Haynesville, Marcellus, Utica, and Barnett shales as well as the Midcontinent region.

The project is expected to be placed into service in 2022.

The open season continues through Oct. 26.

Oil & Gas Journal
Seeking Alpha

OPEC Urges Canada to Increase Infrastructure or Risk Losing Investments

The president of OPEC has urged Canada to further invest in its infrastructure to move oil and gas or risk losing some of their investment to the United States.

“If you don’t have the major infrastructure, investors are going to go to your neighbor, where infrastructure is not an issue,” said the OPEC president. “Act and act quickly if you want to retain those investors. I am being frank because I want to be a true friend to the Canadians.”

He added that he did not want Canada to lose opportunities.

The Canadian government agreed to buy the Trans Mountain oil pipeline as well as a related expansion project from Kinder Morgan Canada in May. The purchase highlighted the lengths it deemed necessary to overcome stiff opposition to such projects.

“The Solution is LNG and pipelines to export that natural gas. If you provide optionality for the gas, it’s going to fix itself,” the OPEC president added.

LNG Canada is a proposed C$40 billion export facility for the British Columbia coast that is being reviewed by its joint venture partners ahead of a final investment decision.


800-Mile Trans-Alaska Pipeline to Experience Shutdowns in Summer for Maintenance

The 800-mile Trans-Alaska oil pipeline will shut down three times this summer for scheduled maintenance starting June 15, according to the pipeline system's operator.

Alyeska Pipeline Service Co said the three shutdowns along the pipeline that moves oil from the North Slope to the company's terminal in Valdez will allow for several maintenance tasks to happen at once.

The pipeline shutdowns should last between 12 and 18 hours and be complete after July 6.

President of Alyeska Pipeline Service Tom Barrett said in a statement that major maintenance on the line plays a critical role in sustaining the pipeline for the future.

The state could see an additional 800-mile LNG pipeline project in the coming years as Alaska Gasoline Development Corp works to get approval for a proposed natural gas pipeline from the North Slope for sale abroad.


Cheniere Decides to Move Forward with Third LNG Unit in Corpus Christi

Cheniere Energy is moving forward with building a third unit to process liquefied natural gas at its export facility that is currently under construction in Corpus Christi.

Cheniere said this will be the first commitment to build new U.S. liquefaction capacity since 2015.

Bechtel is Cheniere's builder for this third unit and had started limited construction on it last year.

Two long-term deals to sell LNG to PetroChina International sparked Cheniere's decision to construct the third processing unit. The sale contracts extend through 2043.

Cheniere has been exporting natural gas through its Sabine Pass facility in Louisiana since 2016 and continues to expand in order to support more production and exports.

The number of foreign markets that receive LNG imports from the U.S. has been increasing. Freeport LNG and Kinder Morgan are scheduled to begin exporting LNG later this year.

Fuel Fix

800-Mile Alaska LNG Pipeline is Still Moving Forward, Says Project Head

The head of an 800-mile Alaska LNG pipeline project said he is done convincing skeptics that the project is legitimate and is moving forward despite pending approvals and other hurdles to clear.

Keith Meyer said this week in Anchorage at a public meeting of about 200 people that the project is real and that he is done "preaching" to those who doubt the project. He added that the state needs to be getting ready for the $43 billion project to begin.

Staff members of the Alaska Gasoline Development Corporation have been holding public meetings across Alaska to give information on the project as well as answer questions the public may have.

Alaska Gasoline Development Corporation has estimated that the project will create 12,000 jobs at peak construction.

The 42-inch LNG pipeline is designed to have a maximum daily capacity of 3.3 billion cubic feet and will transport natural gas from the North Slope to Southcentral Alaska.

Regulatory approval for the pipeline is still a couple years away.

Houston Chronicle