Eversheds Sutherland LNG Law Blog
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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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FERC Releases Draft EIS for Driftwood LNG

FERC Staff has released the draft environmental impact statement (EIS) for Tellurian’s proposed Driftwood LNG export terminal and interconnected pipeline in Evangeline, Acadia, Jefferson Davis, and Calcasieu Parishes, La. (the Project). The Project would produce up to 26 million tonnes per annum of LNG for export. The draft EIS concludes that approval of the Project would result in adverse impacts on the environment, and with the exception of the visual impact on the nearby Driftwood Community which the draft EIS concludes would be significant, the environmental impacts would be reduced to...
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DOE Official Identifies Physical Constraints to U.S.-EU LNG Supply

Yesterday, the U.S. Senate Committee on Energy and Natural Resources held a hearing to examine the role of U.S. LNG in meeting European energy demand.  In his prepared statement, Steven E. Winberg, Assistant Secretary for Fossil Energy at the U.S. Department of Energy (DOE), stated that despite the availability of U.S. LNG imports into Europe, there are constraints affecting the amount of LNG imported, including: (1) the fact that the European Union’s (EU) LNG import capacity of approximately 20 Bcf/day has a utilization rate of only approximately 20%; and (2) most Central and South-Eastern...
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U.S. House Approves Bill Authorizing Small-Scale LNG Exports

Last week, the U.S. House of Representatives passed a bill that would amend the Natural Gas Act to provide that applications for the importation or exportation of not more than 0.17 Bcf/day of natural gas and which do not require and environmental impact statement or environmental assessment shall be granted without modification or delay The bill’s provisions are similar to a final rule the U.S. Department of Energy issued in late July 2018. The bill is now before the U.S....
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Alaska and ExxonMobil Sign Agreement for Alaska LNG Supplies

Alaska Gasline Development Corporation, sponsor of the Alaska LNG Project, has announced that it has signed a Gas Sales Precedent Agreement with ExxonMobil Alaska Production Inc. (ExxonMobil) that covers certain key terms, including price and a volume basis, for a Gas Sales Agreement.  According to the press release, the parties anticipate finalizing long-term gas sales agreements to purchase ExxonMobil’s share of 30 Tcf of gas from the Prudhoe Bay and Point Thomson units.  ExxonMobil operates the Point Thomson field where the company has a 62.75 percent share. ExxonMobil also has a 36.4...
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FERC Permits Introduction of Feed Gas for Sabine Pass Train 5 Commissioning

FERC has issued a letter order permitting the introduction of feed gas for the commissioning of Train 5 at Sabine Pass LNG’s liquefaction and export facility at Cameron Parish, La.
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