NorthPeak22
1 day ago
Small Delfin mention...
The Biden Effect: LNG SPAs Fall 15% in First Half 2024 After Pause
Poten & Partners data show that the total volumes associated with LNG sale and purchase agreements fell by 15% in the first half of 2024 compared to the same period in 2023 following the Biden administration’s LNG pause.
Total volumes associated with LNG sales and purchase agreements (SPAs) are down 15% in the first half of 2024 compared to the same six-month period in 2023 —primarily due to U.S. President Joe Biden’s pause on LNG permitting, according to research by Poten & Partners.
“The number of SPAs completed fell significantly in March following the Biden administration's pause,” Ben Gonzalez, Poten’s head of data analytics, said during a July 2 webinar. A U.S. District judge lifted the LNG export pause on July 1.
“Historically, you do see some lower SPAs during the [same six-month periods, specifically in 2020 and 2021] but, nonetheless yes the Biden pause did impact the market significantly,” Gonzalez said.
During the first half of 2024, gas-linked contracts accounted for 36% of all SPAs signed, according to Poten data. Of that percentage, Henry Hub-linked contracts accounted for 36.5%, Japan Korea Marker or JKM (33.5%), followed by the Canadian benchmark AECO (14%) and Waha (11%).
In comparison, in the first half of 2023, gas-linked contracts accounted for nearly 63% of all SPA volumes.
Oil-based contracts accounted for nearly 60% of the SPAs in the first half of 2024; Brent-linked based contracts accounted for nearly all SPA volumes. In the first half of 2023, oil-linked contracts accounted for 35% of the SPAs.
On Jan. 26, Biden formally paused approvals for new LNG export projects. The move was viewed as a key win for environmentalists in the Democratic Party—and a huge source of frustration for gas players. During the pause, the Department of Energy is assessing the role of climate change in the LNG permitting process.
U.S. Energy Secretary Jennifer Granholm said that she expects the review to take a year, until roughly February 2024, well after the election.
In terms of the total number of SPAs signed and linked to U.S. LNG projects, Gonzalez said they were down 73% in the first-half 2024 compared to first-half 2023.
About half of the SPAs signed to date are supporting the construction of new LNG capacity including Delfin LNG, Rio Grande LNG, Texas LNG, Mexico Pacific LNG, Cedar LNG and Ksi Lisims LNG, Gonzalez said.
Despite the decline in both volumes and numbers related to the signed SPAs, Saudi Arabia’s Aramco has signed heads of agreement (HOA) deals with two U.S. projects: NextDecade Corp.’s Rio Grande LNG Train 4 and Sempra's Port Arthur LNG Phase 2.
“We could see for the second half of the year [that] SPAs increase with the U.S. as these HOA deals are aiming to convert to SPAs given certain conditions,” Gonzalez said.
Plaquemines LNG to spearhead 2024 uptick
Poten expects U.S. LNG exports to pick up this year with the start-up of Venture Global’s Plaquemines LNG, which recently started introducing gas into its plant.
“It should be any time now where they should send out their first cargo,” Gonzalez said.
In April, the U.S. Federal Energy Regulatory Commission granted Venture Global permission to start accepting and processing gas into liquefied form for export at its massive Plaquemines LNG export terminal.
The Plaquemines LNG export facility, in Plaquemines Parish on the Mississippi River, is near the Louisiana Gulf Coast. At full capacity, the plant will export up to 20 million tonnes per annum of LNG.
Gonzalez said Poten expects Golden Pass LNG to start up in the second half of 2025 compared to an earlier estimated start date in 2024 owing to delays related to a bankruptcy filing by the company’s lead contractor, Zachry Industrial Inc.
Poten also expects other U.S. LNG projects to add export volumes over the short term, including from Corpus Christi LNG in 2024 and Rio Grande LNG by 2027.
Dallas-Cowboys
3 days ago
Bloomberg) -- A federal judge halted Joe Biden’s temporary moratorium on new licenses for exports of US liquefied natural gas, though the decision is unlikely to immediately jump start approvals.
US District Judge James D. Cain Jr. in Louisiana issued a preliminary injunction Monday in a lawsuit filed by 16 states, which argued Biden violated federal law by halting licenses in January to assess impact of shipments on climate change. Patrick Morrisey, the attorney general of West Virginia, called the decision “a big win for the country’s energy industry and the millions of jobs it supports.”
Climate activists have argued LNG exports sustain the world’s reliance on fossil fuels and further global warming. But US gas producers and advocates said the halt in licensing threatens to harm allies dependent on American energy supplies as well as billions of dollars in LNG export projects.
The Department of Energy disagrees with the ruling but “continues to review the court’s order and evaluate next steps,” according to a statement from the agency.
In his opinion, Cain said the government’s decision to halt approvals appears to be “completely without reason or logic and is perhaps the epiphany of ideocracy.” States can pursue their legal challenge to the moratorium, he added.
Some $61 billion in pending infrastructure in Louisiana is at risk from the pause, Liz Murrill, the state’s attorney general, said Monday. She called the decision “a major victory for American energy.”
Approvals Halted
Under Biden’s direction, the Department of Energy stopped approving new licenses to export LNG to Asian nations and other countries that aren’t free trade partners with the US, while the agency scrutinized how the shipments affect climate change, the economy and national security.
The pause affected new licenses only. The US is the world’s largest exporter of LNG and has more room to grow under existing licenses.
Although the court order immediately enjoins the pause, the short-term practical effects are likely to be minimal. Under federal law, the Department of Energy vets whether such LNG exports are in the public interest — and it can continue scrutinizing proposals for new export licenses on a case-by-case basis.
The Department of Energy “has the authority — and obligation — to adequately review the true impacts of LNG exports, and we believe they will come to the same conclusion we have,” said Louisa Eberle, a staff attorney with the Sierra Club. That is, “expanded LNG exports are not in the public interest and the pending applications should be denied.”
The case is Louisiana v. Biden, 24-cv-406, US District Court, Western District of Louisiana (Lake Charles).
dinogreeves
3 days ago
I think you will get fills between 12 and 13, the minute you slap the ask, they bid whack to the lowest bidder. Chicken game without a doubt out of spitefulness, nothing more, nothing less. I never go for the ask unless I buy a big load and sit there, like 100,000 plus order. Whoever is selling at the bid, doesn't have level 2, they want to see who is going to join as a team to continue to bid whack taking turns. This is definitely not a market maker, it is someone with a good load and someone with a good load can give you an illusion. Before in 15-18 they were taking turns bid whacking, now it is just one person.
dinogreeves
5 days ago
Severe manipulation. Requires a lot of patience, some of these board members have been here almost 7 years. The rules is, this is "Hotel California" just like lyrics of the classic song, once you are in, you are stuck, otherwise you would have to bid whack, but when that merger hits the wires, this opens at $4.00 and above and runs to 10...15... and possibly even 20 dollars within 3-4 months. Zero dilution and zero dilution since the dawn of times, the last time it was diluted was on Nasdaq, some think, the float is 22 million and I personally think it is around 38 million.
dinogreeves
5 days ago
Why TGLO could possibly be a generational wealth in the making. TEL*L before the announcement of a merger from early 2016 was trading in mid 20 cents area, merger announcement came around early 2017, I may be mistaken, after the merger within 3-4 months time frame it ran somewhere between 19-20 dollars, another example is LN*G, it took LNG 20 years to hit triple dollars. We are comparing apples to apples, virtually the same sector, one is a giant and one wanted to become a giant and just milked their shareholders, one should wonder what is Delfins appetite for this sector, will they become a major player.
https://www.google.com/finance/quote/TELL:NYSEAMERICAN?hl=en&window=MAX
https://www.google.com/finance/quote/LNG:NYSE?hl=en&window=MAX
dinogreeves
5 days ago
"Due to his status as material stockholder of Delfin, which is our controlling stockholder, and his willingness to serve without compensation, we believe Mr. Jones is in the best position to serve as our director until such time that our controlling stockholder determines the direction of the Company.
Frederick Jones, 75, has been involved in international commodity trading, energy infrastructure, real estate, and oil and gas businesses for approximately 49 years. Mr. Jones was one of the early investors in U.S. shale gas. For approximately the past nine (9) years, Mr. Jones has served, and continues to serve, as the Chief Executive Officer of Fairwood Peninsula Energy Corporation (“Fairwood”), a midstream liquefied natural gas company. Fairwood is a material stockholder of our controlling stockholder, Delfin Midstream, Inc. (“Delfin”). Mr. Jones was a founder of Fairwood and is currently a material Delfin stockholder. He was also a founding stockholder in Marc Rich + Co A.G., Switzerland, now known as Glencore Plc.
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Mr. Jones will serve as a director until the next annual meeting of stockholders of the Company and until his successor is duly elected and qualified or until his earlier death, resignation or removal."
dinogreeves
6 days ago
Chen, let me share a story with you, 1996, I had a coffee shop in Quaker town in California called Whittier a few blocks away from Whittier College where President Nixon attended, one morning a little short man in his early 70's walks into the coffee shop and looks at the menu and asks, "Is your coffee good", I said, our coffee is roasted in Italy by Torrefazione, we have different blends, from light roast to dark roast, different regions of Italy, we get compliments all the time", then he said, "If I don't like the coffee, what would you do" to me his accent was like from the East Coast, probably from New York, at least that is what I thought, then I said "lets start with the light roast" he said, "What if I didn't like every roast you give me, what would you do then", I said, "Then we will try out the cappuccino or latte" mind you there were a few established customers inside the coffee and watching and listening to my conversation with this guy, he said, "What if I don't like them too", I said, "Then I will tell you to get the cluck out of my store", he turned around looked at my customers and said " I like this guy, I really like this guy" while motioning his finger at me, with his New York accent, at least that is what I thought his accent was, until he started showing up everyday and we became very good friends although some 40 years apart in age at the time and he told me he was from Boston and moved to Whittier, one morning he walks in and gave me brand new Swiss Army watch as a gift, everyday he would show up and have coffee with me and we would chat about all sort of things and laugh, but one morning he came in complaining about a back pain in the middle, it was around the same time when my dad was visiting from Iran, my mom and my dad had driven down to Whittier to the coffee house, I had a live band playing outside patio, my mom and dad were listening to the live bank, when Nick showed up, I told him that they were my parents, he walked up to my mom and shook her hand and believe or not grabbed my dads hands and pulled him and hugged him so hard and looked him right into his eyes and told him, I will see you soon. That right there caught my dad off guard to point when my dad and I went for a little walk, he asked me, why did that man hug me, I hardly know him and that is odd that he tells me, he will see me soon. Well Chen Nick died from lung cancer a week later and my father went back to Iran and died with cancer of Lymphoma three months later, although he knew he had 6 months to live but would not tell us, God rest his soul, he was my hero and I was pretty devastated by his passing. You see the moral of the story, life is too short. Nick didn't know my dad, just met him once and something told him telepathic that they will see each other on another life. The funny thing is I gave that watch to my mom, when she went back to Iran to see him and be with him for the next 3 months and she buried the watch with him
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JAB65
5 hours ago
wiwineguy
7 hours ago
