Industry News – 14 June 2024

Recent USLNG Industry and Select No. American NatGas Industry Developments

Texas LNG: Tax Reduction Adds Funding Leeway (Offshore Energy)
Dragana Nikše (June 07): Glenfarne Energy Transition’s Texas LNG project has received a county tax abatement, providing financial flexibility for the upcoming construction of the natural gas export facility… Construction is slated to begin later this year, with commercial operations anticipated to follow suit in 2028. In March, the firm shared that it received sufficient expressions of interest from project finance banks to move to the execution phase of project financing. Link to Content

Cedar LNG: Pembina to Take FID within Two Weeks (Bloomberg)
Ruth Liao, Chunzi Xu (June 12): Pembina Pipeline Corp. plans to make its FID for the proposed Cedar LNG floating gas-export project in British Columbia within two weeks, according to people familiar with the matter… The US$4 billion project is expected to be financed 60% from debt and 40% from equity, with the Haisla Nation and Pembina each contributing 20%, Cedar LNG said in an emailed statement to Bloomberg News… The financing will also include a $1.5 billion five-year loan for a pipeline connecting to the Shell-led Kitimat project. Link to Content

Rio Grande: NextDecade and Aramco Sign HOA (Aramco Release)
(June 13): Under the HOA, Aramco expects to purchase 1.2 mtpa of LNG for 20 years on a FOB basis, at a price indexed to Henry Hub. Aramco and NextDecade are currently negotiating an SPA, which will be subject to a positive FID on Rio Grande Train 4.

Plaquemines & CP2: Venture Global Announces Ukrainian Deals
Release (June 13): Ukraine’s largest private power producer, DTEK, will begin buying LNG from Venture Global later this year and continuing through the end of 2026. The gas will be supplied from the Plaquemines facility. Kevin Book (ClearView): “This first deal with a Ukrainian customer could underscore that energy security role” for USLNG exporters.” … DTEK also committed to buying up to 2 mtpa from VG’s CP2 project over 20 years. Link to Content

NextDecade: Hanwa Increases Investment (Business Korea)
June 14: Hanwha Ocean USA International plans to use ≈$390 million (raised since March) to acquire shares of NextDecade at the same level as Hanwha Aerospace. This means that Hanwha Group will acquire a 13.66% stake in NextDecade. This is not Hanwha Group’s first investment in NextDecade; Hanwha Impact previously invested in the company and secured a seat on its board of directors. Combined, Hanwha Impact, Hanwha Aerospace, and Hanwha Ocean will hold over a 15% stake in NextDecade. Link to Content

Venture Global: Must Share Confidential Data with Customers (Bloomberg)
Ruth Liao (June 10): FERC on Mon. (July 10) gave VG and its Calcasieu Pass customers 45 days to agree on a framework for sharing VG documents related to the terminal’s commissioning. If they don’t reach an agreement, an administrative law judge will issue a protective order for sharing the material. Link to Content

Freeport: Company Sues EPC Contractors (Reuters)
Liz Hampton, Scott Disavino (June 06): Freeport LNG has initiated legal action against Zachry, Chiyoda, and CB&I over alleged installation defects at its Texas LNG export plant, claiming major damage and seeking over $1 million in damages. Link to Content

NET Power: A Natural-Gas Billionaire Bets on Greener Fossil Fuel (WSJ)
Benoît Morenne (June 06): Danny Rice helped build EQT and became a billionaire. In his newest venture, he is still betting on natural gas—but this time as part of an unusual process that aims to clean up gas-fired power generation… NET Power, a company that Rice took public in 2023 in a $1.5 billion SPAC deal, has developed a gas plant with a different process, one that will eliminate almost all CO2 emissions. Link to Content