Eversheds Sutherland LNG Law Blog
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Tokyo Gas Signs HOA for LNG Canada Purchases

Platts reports that Tokyo Gas Tuesday has signed a heads of agreement (HOA) with Diamond Gas International, the trading arm of Mitsubishi Corporation, to purchase LNG from the proposed LNG Canada project in British Columbia. According to the report, the HOA provides that Tokyo Gas will purchase up to 0.6 million metric tonnes/year from LNG Canada for a period of 13 years, from April 2026 to March 2039, delivered on an ex-ship basis with destination...
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FERC Initiates Pre-Filing Environmental Review for Galveston Bay LNG Project

FERC has issued a letter granting Galveston Bay LNG, LLC’s request to initiate the pre-filing environmental review process for the proposed Galveston Bay LNG export facility within the city of Texas City, Texas, at a site on Galveston Bay known as Shoal Point. The export facility would include three LNG liquefaction trains, each with a nominal capacity of 5.5 million tonnes per annum. Galveston Bay LNG is also developing the Header System Pipeline, a 42-inch-diameter, 97-mile-long pipeline header system crossing Waller, Fort Bend, Brazoria, and Galveston Counties, Texas as part of the...
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TransCanada to Construct Pipeline to Feed LNG Canada Facility

TransCanada Corporation announced today that it will proceed with construction of the Coastal GasLink pipeline project to serve LNG Canada’s proposed liquefaction and LNG export facility in Kitimat, British Columbia (B.C.). Today, LNG Canada announced a positive final investment decision to move forward with the project.  According to the press release, “Coastal GasLink is a 670-kilometre (420 mile) pipeline designed to transport natural gas from the Montney gas-producing region near Dawson Creek, B.C. to the LNG Canada facility in Kitimat. The pipeline will have an initial capacity of...
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FERC Releases Draft EIS for Port Arthur LNG Facility

FERC Staff has released the draft environmental impact statement (DEIS) for the proposed Port Arthur LNG liquefaction and LNG export facility in Jefferson County, Texas, and interconnected pipelines. The DEIS concludes that “approval of the proposed projects, with the mitigation measures recommended in the DEIS, would have some adverse environmental impact; however, these impacts would be avoided or reduced to less-than-significant...
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LNG Canada Announces a Positive Final Investment Decision

LNG Canada today announced that its joint venture participants – Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS – have taken a Final Investment Decision (FID) to build the LNG Canada liquefaction and LNG export facility in Kitimat, British Columbia. According to the press release, “[e]ach joint venture participant will be responsible to provide its own natural gas supply and will individually offtake and market its share of LNG. The FID is for two processing units or ‘trains,’ with first LNG expected before the middle of the next...
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China Sets 10% Tariff on U.S. LNG Imports

Reuters reports that China has imposed a 10% tariff on U.S. LNG imports effective September 24, 2018. The tariff is less than the expected 25% China had announced earlier. According to the report, the smaller than expected tariff helped lift the stock prices of Cheniere Energy and Golar LNG.
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Cheniere and Vitol Sign 15-Year LNG Sale and Purchase Agreement

Cheniere Energy, Inc. announced today that its subsidiary Cheniere Marketing, LLC (Cheniere Marketing) has entered into an LNG sale and purchase agreement (SPA) with Vitol Inc. (Vitol).  Under the SPA, Vitol has agreed to purchase approximately 0.7 million tonnes per annum of LNG from Cheniere Marketing on a free on board basis for a term of approximately 15 years beginning in 2018.  The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.  ...
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