Page 13 - GLNG Week 08

GLNG
NEWS IN BRIEF
GLNG
AMERICAS
Flex LNG Q4, 2019 earnings release
Flex LNG today reports unaudited financial results for the fourth quarter and year ended December 31, 2019.
Øystein M Kalleklev, CEO of Flex LNG Management AS, commented: “2019 was an eventful and productive year for Flex LNG. We continue to build our organization with exceptional people, most recently with today’s announcement of the recruitment of Ben Martin who will join us from Trafigura as
our chief commercial officer. Furthermore, we are taking a greater responsibility of the management of our fleet with Flex LNG Fleet Management currently managing four of
our six vessels on water. Ship management continues to perform excellent with no loss time injuries recorded for the second year in a row.
We took delivery of two LNG carriers in June and August 2019, and these two vessels were put directly into a strong spot market in the second half of 2019. Given the fact that we positioned our fleet for a stronger winter market we were able to achieve trading results in fourth quarter of 2019 similar to what we did in the fourth quarter of 2018, when rates were at all-time high. We are thus pleased
to announce the best-ever financial results
for Flex LNG with net income of around
$24 million for the fourth quarter. Based on fixtures to date, we anticipate the TCE for the first quarter 2020 to be close to $70,000 per day, despite the demand slump in the first quarter due to a record warm winter and the recent coronavirus outbreak.
We are also pleased that several of our charterers are returning customers, with recent contract extensions for both Flex Ranger and Flex Enterprise, as well as the
long-term charter announced with Gunvor for the newbuilding Flex Artemis due for delivery this summer. During the year we were also successful in securing about $1.3bn of attractive long-term financing, which boosted our liquidity position and enables us to run our ships at industry low cash break- even levels.”
FLEX LNG, February 26, 2020
New Fortress Energy
advances construction of
LNG terminal in Mexico
New Fortress Energy continues to advance construction of a liquefied natural gas (LNG) receiving and regasification terminal in the port of Pichilingue, Baja California Sur, Mexico.
Over the past months, marine work has been underway at the site of the terminal. With all the necessary permits obtained for onshore construction of the power plant, additional equipment, materials, and workers will be deployed to the site to expedite completion of the project.
“The BCS government is in full readiness to achieve an energy transition that promotes new public and private investments in this sector, under a sustainability scheme that helps to avoid harming the environment,” said Governor Carlos Mendoza Davis.
The facility is being constructed with power generation to provide low-cost electricity and truck loading bays for the supply of LNG to local hotel and industrial customers.
“With the project well underway, we are closer to introducing more affordable and cleaner energy for Baja California Sur,” said New Fortress Chairman and CEO Wes Edens. “We have witnessed how LNG supply can become a catalyst for energy diversification
and economic development and look forward to seeing similar results.”
LNG is an alternative source of clean and safe fuel that helps to improve energy efficiency, reduce costs and emissions over other fossil fuel sources. It also provides opportunities for job creation, training of a new, more specialised workforce, economic development and improved environmental management.
“The LNG terminal at Pichilingue port is an important infrastructure project that will undoubtedly bring significant benefits to Baja California Sur,” said José López Soto, director of Port Authority Administration of Baja California Sur.
LNG is natural gas that under a cooling process reaches a liquid state at -161° C and
is stored at atmospheric pressure. Cooling natural gas to its liquid state allows its transport in safe conditions throughout
the world. LNG is one of the safest fuels to transport and to handle, as well as the cleanest available fossil fuel.
NEW FORTRESS ENERGY, February 26, 2020
Tellurian and Petronet extend MoU timing for up to 5mn tonnes of LNG and equity investment in Driftwood
Tellurian announced today it has extended
its memorandum of understanding (MoU) with Petronet LNG Limited pursuant to which Petronet and its affiliates intend to negotiate the purchase of up to 5mn tonnes per annum (5 mtpa) of liquefied natural gas (LNG) from the Driftwood project, concurrent with an equity investment in Driftwood Holdings. The MoU signed in September 2019 previously contemplated that transaction agreements would be finalised by March 31, 2020. The timing has been extended to May 31, 2020 to support Petronet’s consultative review process.
President and CEO Meg Gentle said: “Tellurian was in India this week meeting with Petronet and affiliates to progress negotiations, and we are very supportive of Petronet’s process to ensure their robust project review. With India’s LNG demand increasing 27% year over year, and the HE Prime Minister Narendra Modi’s plans
for $60bn of investments in natural gas infrastructure, India is perfectly poised to benefit from strategic project agreements such as Petronet’s equity investment in Driftwood.” TELLURIAN, February 27, 2020
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