Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
New Player In Lake Charles LNG Project: China Gas’ First Long-Term Agreement with Energy Transfer
06/08/2022![New-Player-In-Lake-Charles-LNG-Project-China-Gas-First-Long-Term-Agreement-with-Energy-Transfer](https://images2.rextag.com/public/blog/69Blog_Energy_Transfer_Lake_Charles_LNG_06_2022 (1).png)
According to a June 5 press release, China Gas Hongda Energy Trading Co. Ltd., a subsidiary of China Gas Holdings Ltd., has made an LNG sale and purchase agreement (SPA) with Energy Transfer LNG Export, LLC, a subsidiary of Energy Transfer LP, concerning its Lake Charles LNG project.
In the course of the 25-year contract, Energy Transfer LNG will provide 0.7 million tonnes per annum (mtpa) of LNG to China Gas on a free-on-board basis. The purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge, with first deliveries expected as early as 2026.
Being a premier natural Chinese gas distribution company, China Gas enchants Energy Transfer LNG to sign the 25-year LNG offtake agreement.
As Tom Mason, the president of Energy Transfer admitted, SPA would bring the total amount of LNG contracted from Lake Charles LNG export facility to approximately 6.0 mtpa and it would be an important step towards the goal of reaching FID [final investment decision] later this year.
To become fully effective, the agreement will go upon the satisfaction of the conditions precedent, including Energy Transfer LNG reaching FID.
From the direction of China Gas, it will be a significant step along the way to realizing China’s carbon peaking and carbon neutrality goals as it is their first long-term agreement.
This company is based in Hong Kong and owns a total of 652 city and township gas projects with concession rights, 32 natural gas long-distance pipeline transmission projects, 113 LPG distribution projects, and 554 CNG/LNG refilling stations for vehicles, also it has the license to import and export LNG and other fuel products in China.
Concerning Energy Transfer, it is a publicly-traded limited partnership based in Dallas with core operations that include complementary natural gas midstream, intrastate, and interstate transportation, and storage assets: crude oil, NGL, refined product transportation, and terminalling assets; and NGL fractionation, with assets in every major U.S. basin.
Their Lake Charles Project is fully permitted for three 5.5 mpta liquefaction trains that will utilize existing infrastructure. It will also benefit from abundant natural gas supply and proximity to major pipeline infrastructure, including Energy Transfer’s vast pipeline network. The project is estimated to create up to 5,000 jobs during construction and 200 full-time positions when fully operational.
This permit-ready project will add 240 acres to Lake Charles LNG’s overall footprint which will allow for the development of a liquefaction and export facility. It is the only brownfield project among those in the pre-FID process.
Moreover, the technology proposed for the project is designed to make it one of the most efficient and cleanest operating LNG facilities in the United States with air emissions expected to be well below both U.S. and Louisiana state limits.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Tokyo Gas Is Set to Buy Rockcliff Energy: One of the Top Haynesville's Producers
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/114Blog_Tokyo_Gas_Wants_to_Acquire_Rockcliff_Energy_01_2023.png)
On January 3, U.S. natural gas producer Rockcliff Energy from private equity firm Quantum Energy Partners was set to be sold to a unit of Tokyo Gas Co. Ltd. for roughly $4.6 billion, including debt. The all-cash agreement with Houston-based TG Natural Resources, which is 70% possessed by the Japanese energy firm, is decided to be claimed this month, according to anonymous resources, as the discussions were requested to be confidential. Castleton Commodities International (CCI) owns the rest of TG Natural Resources.
Pembina's Stake in Key Access Pipeline System Is Sold to Stonepeak Partners
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/124Blog_Pembinas_Stake_in_Key_Access_Pipeline_System.png)
Canadian pipeline operator Pembina Pipeline Corp.'s joint venture with KKR & Co. is selling for C$662.5 million ($484.89 million) its 50% stake in the Key Access Pipeline System to private equity firm Stonepeak Partners. The agreement allows Stonepeak to maintain a pipeline system that conveys NGL to processing facilities for export to Asia, a market with a raising appetite for North American LNG as it refuses to use coal and as the decrease in Russian exports leaves a void in global supply.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/297_Blog_Keystone XL Pipeline Controversy and Wildlife Disaster From Trump's Green Light to Biden's Red Light on the 15 Billion Project.jpg)
The pipeline industry in the USA faced and still faces a range of regulatory challenges, including permitting delays, environmental requirements, and public opposition to pipeline projects. In recent years, pipeline projects like the Keystone XL and Dakota Access pipelines had legal and regulatory obstacles that delayed or canceled their construction. Keystone XL Pipeline, proposed by TransCanada in 2008, aimed to transport crude oil from Canada (around Calgary and Edmonton) to refineries on the Gulf Coast (Port Arthur). The project faced opposition from environmental groups and indigenous communities, who argued that it would contribute to climate change and pose a risk to water resources. In 2015, President Obama rejected the project, citing concerns about its environmental impact. However, in 2017, President Trump revived the project, leading to further legal challenges. In June 2021, U.S. President Joe Biden officially canceled the project on his first day in office.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/282_Blog_Renewable Natural Gas How RNG Changes the Industry.jpg)
The renewable natural gas (RNG) industry in the United States is showing promising signs of growth. As of 2019, the U.S. consumed 261 billion cubic feet (BCF) of RNG, primarily utilized by independent power producers, electric utilities, and various commercial and industrial entities. However, this figure represents only a small fraction of its potential. Research indicates that the U.S. could theoretically produce up to 2,200 BCF of RNG through anaerobic digestion alone, which would equate to about 11% of daily national natural gas consumption.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/295_Blog_Renewable Efforts Lag as Global Oil and Gas Demand Continues to Rise.jpg)
Recently, the progress toward an energy transition is hitting a snag. Sales of electric vehicles are decelerating, and the growth in wind and solar power needs to be keeping pace with expectations. To make matters more challenging, electricity prices are climbing when they were expected to fall. Amidst these setbacks, the oil and gas sectors are proving resilient. According to BP's latest energy outlook, not only are these energy mainstays here to stay, but their demand is expected to remain relatively high even after reaching a peak. Interestingly, BP forecasts that oil demand will reach its zenith next year, marking a critical moment in energy consumption trends. This isn't the first time BP has projected a peak in oil demand. Back in 2019, their review anticipated a decline in demand growth, but the prediction fell flat. Instead, oil demand surged to unprecedented levels following the end of the global pandemic lockdowns, defying previous forecasts and underscoring the enduring dominance of traditional energy sources in the global market.