Eversheds Sutherland LNG Law Blog
content top

Magnolia LNG to Supply Proposed Vietnamese Power Plant

Magnolia LNG’s parent company, Liquefied Natural Gas Limited, and Delta Offshore Energy (DeltaOE) have announced an alliance with the Bac Lieu Provincial Government in Vietnam to deliver an LNG-to-power project for the province. Magnolia LNG is the developer of a proposed liquefaction and LNG export terminal at Lake Charles, La. The DeltaOE led power project includes the construction and operation of an LNG import terminal, 3,200-megawatt combined-cycle power plant and delivery of power generation to the Bac Lieu Province. The integrated project is expected to commence operations in 2023...
Continue Reading

Cheniere Energy Signs Gas Supply Deals Linked to Asian Spot LNG Prices

Reuters reports that Cheniere Energy subsidiaries Corpus Christi Liquefaction and Cheniere Corpus Christi Liquefaction Stage III have signed long-term gas supply deals with shale producer EOG Resources, with some of the gas tied to Asian spot LNG prices. This is the second instance of Cheniere Energy buying gas linked to spot LNG prices. According to the report, the total quantity will start at 140,000 MMBtu/day, or about 0.85 million tonnes/year, and increase to 440,000 MMBtu/day.  The LNG produced from the initial 140,000 MMBtu/day of gas supply will be owned and marketed by Cheniere...
Continue Reading

Lake Charles LNG Requests 2025 In-Service Deadline

Lake Charles LNG has filed a request with FERC for an extension of time, to December 16, 2025, to construct and place into service its proposed liquefaction and export terminal facilities at its existing LNG import terminal at Lake Charles, La. FERC’s order authorizing the construction and operation of the liquefaction and export terminal facilities imposed a December 16, 2020 deadline to place the facilities into service.  The requests states that a final investment decision could occur as early as the end of 2020....
Continue Reading

CME Group to Launch U.S. LNG Futures Contract

Reuters reports that CME Group will launch a futures contract on October 14, 2019, for LNG that is physically delivered at Cheniere Energy’s Sabine Pass export terminal in Cameron Parish, La. The contract will have 24 delivery months, “meaning a market participant in October could buy an August 2020 LNG cargo and trade it up until the delivery date.”...
Continue Reading

Cheniere Announces Substantial Completion of Train 2 at the Corpus Christi Liquefaction Project

Cheniere Energy, Inc. announced that Substantial Completion of Train 2 of the Corpus Christi liquefaction project in Corpus Christi, Texas, was achieved on August 28, 2019. “Commissioning is complete and Cheniere’s EPC partner Bechtel Oil, Gas and Chemicals, Inc. (“Bechtel”) has turned over care, custody, and control of Train 2 to Cheniere.” The press release states that under sale and purchase agreements (“SPAs”) with Électricité de France, S.A., Iberdrola, S.A., Naturgy Energy Group S.A., PT Pertamina (Persero), and Woodside Energy Trading Singapore Pte Ltd, the date of first...
Continue Reading

Freeport LNG Ships First Commissioning Cargo

Yesterday, Freeport LNG announced that it has shipped the first LNG commissioning cargo from Train 1 from its liquefaction facility located on Quintana Island in Freeport, Texas. According to the press release, Freeport’s Train 2 is advancing pre-commissioning to support an in service date of January 2020. Train 3 is nearing completion to support an in service date of May 2020....
Continue Reading

U.S. LNG Exports Now 10% of Global Market

Reuters reports that U.S. exports of LNG now amount to 10% of the global market and, at 22 million tonnes so far this year, are equal to the total volumes exported in 2018. The report states that for the past two months the world’s largest exporters are Australia, Qatar, the United States, Russia and Malaysia. Further, the “U.S. supply surge has depressed global LNG prices, and with it, European benchmark gas prices, closing the arbitrage for cargoes between the Atlantic and Pacific basins.”...
Continue Reading