Page 8 - GLNG Week 28 2021
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GLNG                                            AMERICAS                                               GLNG


       Tellurian, TotalEnergies terminate agreement





        PROJECTS &       US-BASED Tellurian said in a federal filing  likely have to choose between a business model
        COMPANIES        this week that it had terminated stock and  that seeks equity partners or one in which it sells
                         LNG purchase agreements that it had previ-  LNG to buyers such as Vitol and Gunvor.
                         ously signed with France’s TotalEnergies for   “This news is about trying to get this project
                         the proposed Driftwood LNG export terminal  built, because Tellurian is trying to get to final
                         in Louisiana.                        investment decision on this project,” Clearview
                           Tellurian said in the filing that the agreements  Energy’s managing director, Jacques Rousseau,
                         had been terminated because they were “not  was quoted by Reuters as saying. “They must feel
                         consistent” with commercial agreements it had  the best way to get this project built is by selling
                         reached with other counterparties through its  the offtake to traders, rather than [gas-produc-
                         Driftwood LNG subsidiary.            ing] companies.”
                           The company had previously been seeking to   TotalEnergies had initially agreed to buy a
                         finance Driftwood by having partners purchase  19% stake in Driftwood, though in August 2020
                         equity in the facility. In TotalEnergies’ case, the  it said in a regulatory filing that this had been cut
                         French company – then known simply as Total –  to 17.4%. The investment was conditional on Tel-
                         agreed in 2019 to make a $500mn equity invest-  lurian reaching a final investment decision (FID)
                         ment in Driftwood, as well as buying 2.5mn  by July 10, 2021. This has not happened, though
                         tonnes per year (tpy) of LNG from the project.  the company has reported on various steps being
                         But Tellurian appears to have since moved to  taken towards the start of construction, which is
                         simply selling LNG without bringing in new  now being targeted for early 2022.
                         partners, striking two separate 10-year sales and   TotalEnergies had been set to invest up to
                         purchase agreements (SPAs) with commodity  $700mn into Driftwood. There is speculation
                         traders Gunvor and Vitol in recent weeks for  that the French company’s withdrawal frees Tel-
                         3mn tpy each.                        lurian to sell the LNG that TotalEnergies would
                           Analysts have said that the company will  have bought to other companies.™






                                                    AUSTRAL ASIA




       Woodside looks for Pluto LNG investors




        INVESTMENT       AUSTRALIAN independent Woodside Energy  lead items had been awarded for the floating
                         has begun looking for investors to buy into its  production unit (FPU), while tenders were being
                         planned expansion of the Pluto LNG plant as  evaluated for the supply of linepipe for the Scar-
                         well as its feedstock field.         borough export trunkline.
                           Woodside said on July 15 that it was looking   Woodside is reviewing the updated cost esti-
                         to divest an up to 49% stake in Pluto’s second  mates for Scarborough and Pluto Train 2, which
                         train, which will process gas from the offshore  it noted would incorporate value accretive scope
                         Scarborough field. The expansion will modify  changes since November 2019’s cost estimate of
                         the plant’s existing gas processing train in addi-  $11.4bn. This includes greater offshore produc-
                         tion to constructing a second facility.  tion capacity of around 20%, increased onshore
                           At the same time, the developer said it was  processing capacity of Scarborough gas and the
                         also “testing the market” over the sale of equity  fact that the project’s contracting strategy targets
                         in the gas field and that the sale processes were  90% of total project contractor spend structured
                         aligned with its targeted final investment deci-  as lump sum and fixed rate agreements.
                         sion (FID) on Scarborough and Pluto Train 2 in   While the equity sell-down has driven the
                         the second half of this year.        58% collapse last year of the company’s underly-
                           Woodside’s acting CEO, Meg O’Neill, said  ing profit to $447mn, Woodside enjoyed a much
                         the company had made “solid progress” towards  stronger performance in the second quarter of
                         reaching an FID on the expansion project.  this year.
                           The company noted that trunkline bends and   The company reported that revenue in April-
                         deepwater buckle arrestors had been delivered,  June climbed by 67% year on year and 15% quar-
                         while five subsea trees were due for delivery to  ter on quarter to $1.29bn on the back of higher
                         Australia in the third quarter. It added that long  realised oil and gas prices.™



       P8                                       www. NEWSBASE .com                           Week 28   16•July•2021
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