Page 8 - GLNG Week 08 2021

GLNG AMERICAS GLNG

Cheniere sees loss shrink

on recovering LNG demand

PERFORMANCE LEADING US LNG producer Cheniere Energy colder-than-expected weather and certain sup-
has posted a net loss of $194mn for the fourth ply and transport bottlenecks.
quarter of 2020. While this was a decrease on Cheniere said it exported 130 cargoes of LNG
a net profit of $939mn in the fourth quarter of in the fourth quarter of 2020 – unchanged from
2019, it marked an improvement on a loss of the fourth quarter of 2019. Over the whole of
$463mn in the third quarter of 2020. 2020, however, the company’s exports totalled
The result illustrates how demand for LNG 391 cargoes, down from 429 in the prior year.
is recovering after a downturn last year that was Exports notably fell over the summer of 2020, as
largely caused by the first wave of the coronavirus a number of buyers cancelled cargoes scheduled
(COVID-19) pandemic and the lockdowns that for loading from US terminals. Cheniere, as the
were brought in globally in an effort to slow the largest US exporter of LNG, was hit the hardest
spread of the virus. by these cancellations.
The company also expressed confidence However, the company said that last week’s
over the trajectory of the recovery, saying it was winter storm had “no material impact” on its
raising its forecast for adjusted earnings before assets or operations. Cheniere kept both its
interest, tax, depreciation and amortisation export terminals operating throughout the
(EBITDA) to $4.1-4.4bn, up from a previous period, unlike the two other exporters on the
projection of $3.9-4.2bn. Gulf Coast, though its feed gas volumes report-
“A slow return towards normal is expected to edly fell to around 25% of what they were
occur in the coming months, depending on the previously.
speed of vaccine rollout within regions, and the Separately from its quarterly results, Cheniere
speed and shape of economic recovery across announced that it would start providing its LNG
the LNG-importing nations,” Cheniere said. Its customers with greenhouse gas (GHG) emis-
comments came after demand already improved sions data associated with each LNG cargo pro-
in Asia this winter, thanks to a combination of duced at its terminals from 2022.™

ASIA

Pavilion, Chevron sign LNG supply deal

ENERGY SINGAPORE’S Pavilion Energy announced this emissions reduction and collaboration on the
TRANSITION week that it had signed a six-year sale and pur- methodology. It appears that both the QP and
chase agreement (SPA) with Chevron, covering Chevron deals have resulted from this tender.
the delivery of 500,000 tonnes per year (tpy) of In a February 22 statement, Pavilion said it
LNG to the Asian city-state from 2023. was now developing the methodology for quan-
Pavilion noted that each cargo of LNG sup- tification and reporting of GHG emissions along
plied under the agreement would be accom- with its partners.
panied by a declaration of its greenhouse gas “As we proactively promote GHG emissions
(GHG) emissions, measured “from wellhead to reduction and offsets, we are thrilled to be joined
discharge port”. This follows a similar 10-year by Chevron,” commented Pavilion’s group CEO,
deal involving the reporting of GHG emissions Frédéric Barnaud. “I am confident that a bold,
that Pavilion struck with Qatar Petroleum (QP) ambitious and uncompromising industry col-
in November. (See: Qatari deals come amid push laboration will boost our own efforts towards
for LNG dominance, page 4) achieving a meaningful impact,” he said.
Pavilion, which is owned by Singapore state- Chevron, for its part, said it was embracing a
owned investment company Temasek Holdings, low-carbon future.
has previously stated its desire to eventually inte- The deal comes as the idea of carbon-neutral
grate carbon neutral LNG into its portfolio. The LNG is slowly taking off against the backdrop of
company is gradually moving towards this goal, the accelerating energy transition. Royal Dutch
having called in April 2020 for offers to jointly Shell has led the way in shipping a handful of
develop a quantification and reporting method- carbon-neutral LNG cargoes, and it increasingly
ology for emissions. looks as though other companies are keen to do the
At the time, Pavilion opened up bidding same. Some have expressed concern, though, that
comprised of three components – supply of up the higher cost of carbon-neutral cargoes could be
to 2mn tpy of LNG for Singapore, ideas for GHG a deterrent to more widespread adoption.™

P8 www. NEWSBASE .com Week 08 26•February•2021