Page 7 - GLNG Week 16 2021

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.”™

Week 16 23•April•2021 www. NEWSBASE .com P7