Page 11 - GLNG Week 02

GLNG
NEWS IN BRIEF
GLNG
AMERICAS
New Fortress Energy
announces $800mn term
loan facility
New Fortress Energy announced today that
it has executed a fully committed $800mn term loan facility provided by certain funds and accounts managed by affiliates of Apollo Global Management. The term loan facility has a three-year term, and loans issued under the facility will bear interest at an annual rate equal to LIBOR plus 6.25%, subject to a 1.50% LIBOR floor and annual increases in the interest rate spread.
Net proceeds of the loan will be used to fund the development and construction of New Fortress’s energy infrastructure projects around the world, and to repay the Company’s existing $500 million term loan facility in full.
“This transaction provides additional capital for us to continue to build LNG terminals and infrastructure around the world,” said New Fortress Chairman and
CEO Wes Edens. “Our investments in new terminals and modern power infrastructure bring significant economic and environmental benefits to customers. Apollo has a great track record of success with funding innovative projects around the world, and we’re excited to have their support.”
Apollo is a leading global alternative investment manager with approximately $323 billion of assets under management as of September 2019 in credit, private equity and real assets funds invested across a core group of nine industries where Apollo has considerable knowledge and resources.
“Apollo is pleased to support the growth of New Fortress Energy, a market-leader that is having a tangible impact on driving the transition to clean energy and whose
business strategy closely aligns with our ESG commitment and goals,” said James Zelter, Co-President of Apollo. “Over the last decade, Apollo has built one of the largest alternative credit businesses in the world, with more than $200bn of Assets Under Management invested across a diverse spectrum of more than 20 different strategies. This transaction represents the type of creative financial solutions Apollo is uniquely qualified to deliver.”
NEW FORTRESS ENERGY, January 13, 2020
Kinder Morgan ready to
start up fourth Elba LNG
train
Kinder Morgan has asked US regulators for permission to put the fourth liquefaction train into service at its Elba Island LNG export plant in Georgia. The company said it expects one 300,000 tonne per year (tpy) train to enter service roughly each month up to
the summer, by when all 10 trains should be operating.
According to a January 13 filing with the US Federal Energy Regulatory Commission (FERC), Kinder Morgan said Train 2 would be ready for service on January 16. The train would be the fourth train to enter service
at the plant, as trains 1, 3 and 4 are already operational. The first train at the project entered service in early October 2019 after several delays during the start-up process.
The first export cargo from Elba Island
left in December. Royal Dutch Shell is the sole offtaker from the facility, under a 20-year contract. The nearly $2bn Elba Island project is 51% owned by units of Kinder Morgan
and 49% by EIG Global Energy Partners. It
is smaller than other new US LNG export projects, with a capacity to liquefy about 2.5mn tpy of LNG.
EIA forecasts LNG export growth
The US Energy Information Administration (EIA) forecast in its latest short-term energy outlook that the country’s LNG exports would rise to 6.5 bcf per day in 2020 and 7.7 bcf per day in 2021 from an estimated 5.0 bcf per day in 2019.
Rising LNG exports played a major role in transforming the US from a net importer of natural gas as recently as the first quarter of 2017, the EIA said. Overall, the US was a net exporter of gas in 2019, with net exports averaging 5.3 bcf per day, up by 2.0 bcf per day y/y, according to the agency. The EIA expects net US gas exports to rise to average 7.3 bcf per day in 2020 and 8.9 bcf per day in 2021 – with LNG accounting for the majority of these volumes.
ASIA
Indonesian regulator targets lower output from Bontang LNG, higher Tangguh production
Output from Indonesia’s Bontang LNG
plant is targeted at 89.6 cargoes this year, regulator SKK Migas’ deputy of finance and monetisation, Arief Setiawan Handoko, said on January 13. He told Reuters that output from the Tangguh LNG plant was targeted at 122.3 cargoes this year. Indonesia produced 111.7 cargoes from Bontang and 117.4 cargoes from Tangguh last year, according to SKK Migas data.
FSRU for Indonesia’s Jawa-
1 gas-to-power project
62.5% complete
Construction of the floating storage and regasification unit (FSRU) that will serve Indonesia’s Jawa 1 gas-fired power project is now 62.5% complete and progressing ahead of schedule, state-owned operator Pertamina said in a January 13 statement. The FSRU is being built by Samsung Heavy Industries.
Pertamina is developing the 1.76-GW project, which is located in West Java Province, alongside Japanese firms Marubeni
Week 02 16•January•2020
w w w. N E W S B A S E . c o m
P11