Page 7 - GLNG Week 16 2021
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GLNG                                           AMERICAS                                               GLNG


       Energy secretary outlines Argentina’s plans




       to secure gas supplies for the winter




        POLICY           ARGENTINA’S Energy Secretary Dario Mar-  extra gas ahead of the winter, he explained.
                         tinez stated last week that the administration of   He also noted that upstream operations at
                         President Alberto Fernandez was working with  fields in the Vaca Muerta shale formation had
                         upstream operators to ensure that the country  slowed as a result of labour unrest in Neuquen
                         had adequate supplies of natural gas for the com-  Province, where healthcare workers demanding
                         ing heating season.                  higher pay began blocking the roads that lead to
                           Martinez acknowledged ongoing con-  the oil and gas fields on April 7. The government
       Officials have arranged   cerns about the possibility of shortages, say-  is keen to resolve the matter, as Vaca Muerta sites
       for the installation   ing during an online interview with the Oil  account for more than half of the country’s gas
       of a second LNG   Club, a Buenos Aires-based trade association:  output, and Martinez said that the Fernandez
       regasification facility   “This is not going to be an easy year.” He also  administration was willing to hear the protest-
       off the coast so that   stressed, though, that gas producers were rac-  ers out.
       Argentina can import   ing “against the clock” to raise output levels at   “We are going to collaborate in any way we
       more LNG this winter.  domestic fields.                can to reach a resolution,” he was quoted as say-
                           Developers have responded positively to  ing by S&P Global Platts.
                         the government’s creation of new incentives for   In the meantime, Martinez said, the Fernan-
                         raising production, such as the establishment  dez administration is taking other measures
                         of a system of auctions for 70mn cubic metres  to boost gas supplies. For example, he stated,
                         per day in long-term gas supplies, equivalent to  officials in Buenos Aires have arranged for the
                         about half of Argentina’s average consumption  installation of a second LNG regasification facil-
                         levels, he added. Even so, the system has only  ity off the coast so that the country can import
                         been in place since December, and companies  more LNG this winter. The new terminal is due
                         have not had enough time to extract and store  to begin operating on May 25, he noted.™




       NFE completes acquisition of Hygo, GMLP





        INVESTMENT       US-BASED New Fortress Energy (NFE) has  Brazilian gas and power facilities. It is build-
                         expanded its Brazilian gas portfolio by complet-  ing two other FSRU terminals at other sites in
                         ing the acquisition of Hygo Energy Transition, a  the South American country that will support
                         50:50 joint venture between Bermuda-registered  gas-burning TPPs with a generating capacity of
                         Golar LNG and a subsidiary of the US private  about 1,200 MW. Additionally, it has two oper-
                         equity fund Stonepeak Infrastructure Partners,  ating LNG carriers.
                         and of Golar LNG Partners (GMLP).      Meanwhile, the deal for GMLP gives NFE
                           In a statement, NFE said its consideration  control of Golar LNG. This acquisition promises
       This acquisition of Hygo   for Hygo had consisted of $580mn in cash  to expand the former company’s fleet and asset
       gives NFE control over   and 31,372,549 shares of its own stock. It also  portfolio, as the latter owns four LNG carriers
       that company’s assets   reported that it had paid cash for 100% of shares  and six FSRUs, as well as a 50% stake in Trains
       in Brazil – including the   in GMLP, with the price set at $3.55 per share  1 and 2 of the Hilli Episeyo, a floating LNG
       Golar Nanook FSRU.  of common stock, but did not reveal the exact  (FLNG) unit.
                         amount paid for this asset.            Wes Edens, the chairman and CEO of NFE,
                           The combined value of these two deals  said earlier this year that the acquisitions would
                         amounts to $5.1bn in enterprise value and  benefit his company. “With a strong presence
                         $2.43bn in equity value, the statement said.  in Brazil and a world-class LNG shipping busi-
                           This acquisition of Hygo gives NFE control  ness, Hygo and GMLP are excellent additions
                         over that company’s assets in Brazil – including  to our efforts to accelerate the world’s energy
                         the Golar Nanook, a new-build floating storage  transition,” he was quoted as saying in a separate
                         and regasification unit (FSRU) that is being used  company statement. “The addition of Hygo will
                         to import LNG via the port of Sergipe. They also  quickly expand our footprint in South America
                         include a 50% stake in a 1,500-MW thermal  with three gas-to-power projects in Brazil’s large
                         power plant (TPP) known as Centrais Eletricas  and fast-growing market. With GMLP, we gain
                         de Sergipe (Celse) that burns gas imported via  LNG ships and world-class operators that are an
                         the FSRU under a 26-year supply agreement,  ideal fit to support our existing terminals and
                           Hygo also has stakes in several other  robust pipeline.”™



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