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Released March 29, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Tellurian Incorporated (NYSE:TELL) (Houston, Texas) said Monday it has issued a limited notice to proceed with construction of Phase I of its Driftwood liquefied natural gas (LNG) terminal near Lake Charles, Louisiana, while it completes financing for the facility.
Despite starting construction without securing full financing, "the energy security concerns raised by the Ukraine conflict will make that just a matter of when, not if, they will receive full financing," said Shane Mullins, Industrial Info's vice president of product development for the energy markets. For related information, see March 8, 2022, article - U.S. LNG to the Rescue? Cheniere, Other Firms Add Liquefaction Capacity.
"I would add that Europe is fast-tracking additional LNG import terminal capability to diversify away from Russian energy dependence, another reason Tellurian's recent move makes sense," Mullins continued. "The Driftwood project already has secured three 10-year, long-term contracts from Vitol (Geneva Switzerland), Shell Plc (NYSE:SHEL) (London, England) and Gunvor Group Limited (Geneva) for LNG and can certainly play its part to assisting the Biden administration's goals to improve Europe's energy security, while lowering global greenhouse gas emissions using responsibly sourced natural gas by early 2026."
For related information, see March 21, 2022, article - Europe Ups Ante on LNG Terminals to Defy Russia's Energy Dominance.
Industrial Info is tracking 10 projects, worth more than $15 billion, that are tied to the liquefaction and export terminal. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a list of detailed project reports.
Tellurian plans to fund the initial work with proceeds from shale wells in northern Louisiana, according to Bloomberg.
Tellurian issued the notice to proceed to engineering, procurement and construction (EPC) firm Bechtel Corporation (Reston, Virginia). Bechtel's first activities include demolition, civil site preparation and construction of critical foundations, Tellurian said. Baker Hughes Company (Houston) will progress with the manufacture of two of the natural gas turbines for Phase I.
U.S. exports of LNG set a record high in 2021, averaging 9.7 billion cubic feet per day (Bcf/d), according to the U.S. Energy Information Administration's (EIA) Natural Gas Monthly report. U.S. LNG exports increased by 50% from 2020, driven by increased demand in both Europe and Asia, along with expanding U.S. liquefaction capacity. In 2021, liquefaction at the six U.S. LNG export terminals averaged 102% of nameplate capacity and 89% of peak capacity.
U.S. LNG exports to Asia increased by 1.5 Bcf/d, or 51%, last year, according to the EIA. The U.S. became the third-largest LNG supplier to Asia, accounting for 12% of all LNG imports into Asia, after Australia (29%) and Qatar (21%).
South Korea and China were nearly tied as the top two destinations for U.S. LNG exports, at 1.2 Bcf/d each. Since China lowered tariffs on imports of LNG from the U.S. from 25% to 10% in 2019, U.S. LNG imports to China have increased, the EIA said. Japan was the third-largest importer of U.S. LNG in 2021, at 1.0 Bcf/d. Combined, these three countries accounted for 35% of all U.S. LNG exports in 2021.
European countries received 3.3 Bcf/d of LNG imported from the U.S. in 2021, an increase of 0.8 Bcf/d (32%) from 2020.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Despite starting construction without securing full financing, "the energy security concerns raised by the Ukraine conflict will make that just a matter of when, not if, they will receive full financing," said Shane Mullins, Industrial Info's vice president of product development for the energy markets. For related information, see March 8, 2022, article - U.S. LNG to the Rescue? Cheniere, Other Firms Add Liquefaction Capacity.
"I would add that Europe is fast-tracking additional LNG import terminal capability to diversify away from Russian energy dependence, another reason Tellurian's recent move makes sense," Mullins continued. "The Driftwood project already has secured three 10-year, long-term contracts from Vitol (Geneva Switzerland), Shell Plc (NYSE:SHEL) (London, England) and Gunvor Group Limited (Geneva) for LNG and can certainly play its part to assisting the Biden administration's goals to improve Europe's energy security, while lowering global greenhouse gas emissions using responsibly sourced natural gas by early 2026."
For related information, see March 21, 2022, article - Europe Ups Ante on LNG Terminals to Defy Russia's Energy Dominance.
Industrial Info is tracking 10 projects, worth more than $15 billion, that are tied to the liquefaction and export terminal. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a list of detailed project reports.
Tellurian plans to fund the initial work with proceeds from shale wells in northern Louisiana, according to Bloomberg.
Tellurian issued the notice to proceed to engineering, procurement and construction (EPC) firm Bechtel Corporation (Reston, Virginia). Bechtel's first activities include demolition, civil site preparation and construction of critical foundations, Tellurian said. Baker Hughes Company (Houston) will progress with the manufacture of two of the natural gas turbines for Phase I.
U.S. exports of LNG set a record high in 2021, averaging 9.7 billion cubic feet per day (Bcf/d), according to the U.S. Energy Information Administration's (EIA) Natural Gas Monthly report. U.S. LNG exports increased by 50% from 2020, driven by increased demand in both Europe and Asia, along with expanding U.S. liquefaction capacity. In 2021, liquefaction at the six U.S. LNG export terminals averaged 102% of nameplate capacity and 89% of peak capacity.
U.S. LNG exports to Asia increased by 1.5 Bcf/d, or 51%, last year, according to the EIA. The U.S. became the third-largest LNG supplier to Asia, accounting for 12% of all LNG imports into Asia, after Australia (29%) and Qatar (21%).
South Korea and China were nearly tied as the top two destinations for U.S. LNG exports, at 1.2 Bcf/d each. Since China lowered tariffs on imports of LNG from the U.S. from 25% to 10% in 2019, U.S. LNG imports to China have increased, the EIA said. Japan was the third-largest importer of U.S. LNG in 2021, at 1.0 Bcf/d. Combined, these three countries accounted for 35% of all U.S. LNG exports in 2021.
European countries received 3.3 Bcf/d of LNG imported from the U.S. in 2021, an increase of 0.8 Bcf/d (32%) from 2020.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
