Cheniere Cargo Cancellation Tied to LNG Glut
Below is a recap of Rigzone’s top stories tied to the downstream oil and gas industry from the past week.
Thanks to a global glut of liquefied natural gas (LNG), prices for the fuel have fallen dramatically. Given the slump, market-watchers had expected LNG customers to cancel U.S. cargoes, this article from the Bloomberg news service states. In this case, Spanish utility owner Naturgy Energy Group SA reportedly decided against taking delivery of two shipments from Cheniere Energy Inc. – the top U.S. LNG exporter.
For two decades, TechnipFMC and BP Petrochemicals have maintained an alliance that has enabled the former to engineer approximately 8 million tons per year of purified terephthalic acid (PTA) – an ingredient in polyester fibers and plastic materials. As this article points out, that longstanding alliance recently expanded to include a new BP technology designed to make an unrecyclable type of plastic recyclable.
During President Trump’s state visit to India this week, cryogenic manufacturer and designer Chart Industries, Inc. signed an agreement with a unit of Exxon Mobil Corp. and Indian Oil Corp. clearing a path for expanding access to LNG in India. The firms agreed to cooperate to pioneer virtual LNG pipelines in India. The concept calls for delivering LNG via road, rails and waterways in areas lacking physical pipeline access.
A master limited partnership formed by Phillips 66 next week will close on a deal to acquire a 50-percent stake in the Liberty Pipeline, a $1.6 billion oil pipeline project that will link the Rockies and Bakken production areas to the oil storage hub at Cushing, Okla. Phillips 66 Partners will acquire one-half of Liberty for $75 million, funded with a mix of cash and credit. The 24-inch-diameter pipeline is expected to begin service during the first half of 2021.
As this Bloomberg article notes, the U.S. Supreme Court was set to hear arguments this week regarding a critical permit allowing Dominion Energy, Inc.’s planned Atlantic Coast natural gas pipeline to pass beneath the Appalachian Trail. The case reached the Supreme Court after a federal appeals court threw out a permit that the U.S. Forest Service had issued. The high court is expected to rule by June, and the decision could have broad implications for pipeline operators seeking permission to cross the hiking trail that extends from Maine to Georgia.
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