LNG Canada shows 'proof of concept' in funding large LNG export projects

The financing model that brought the roughly $31 billion LNG Canada project to a final investment decision could signal a shift toward funding the next wave of North American LNG projects with equity investments instead of relying on debt. "It tilted the whole scale in favor of this project," said Kenneth Medlock, senior director of the Center for Energy Studies at Rice University's Baker Institute for Public Policy. "That's going to be more the norm as we go forward. ... There will be variations on the theme, but that's the basic idea."

Review board scraps public hearing for Pieridae's Goldboro LNG project

The Nova Scotia Utility and Review Board canceled a public hearing to address an aboriginal group's concerns about Pieridae Energy Ltd.'s Goldboro LNG export project after the group formally withdrew its objections to the proposed C$10 billion export terminal. "Sipekne'katik is satisfied that any aboriginal and treaty rights of Sipekne'katik will not be diminished nor impinged," Michael Sack, chief of the Sipekne'katik First Nation, said in a letter to the board.

Tokyo Gas inks nonbinding deal to acquire LNG Canada supply

The Tokyo-based natural gas provider Tokyo Gas Co. Ltd. signed a nonbinding agreement to acquire liquefied natural gas from the LNG Canada export project through a subsidiary of Mitsubishi Corp., a participant in the Royal Dutch Shell PLC-led project. Under the heads of agreement, Tokyo Gas looks to procure around 600,000 tons of LNG per annum from the Mitsubishi unit Diamond Gas International Pte. Ltd., with the shipments to be delivered on an ex-ship basis.

Japanese gas distributor signs nonbinding deal to buy supply from LNG Canada

The Japanese natural gas distribution company Toho Gas Co. Ltd. signed a nonbinding agreement to purchase LNG from the recently sanctioned LNG Canada export project through a Mitsubishi subsidiary. Under the heads of agreement, Toho looks to buy about 300,000 tons of LNG per year from Mitsubishi's Diamond Gas International for 15 years, starting in 2024.

Total US gas consumption drops amid dip in gas use for power generation

U.S. natural gas consumption saw a small decrease in the week that ended Oct. 3 as gas use for power generation decreased week over week, the U.S. Energy Information Administration reported in its Oct. 4 "Natural Gas Weekly Update." Four LNG vessels with a combined carrying capacity of 14.2 Bcf left the U.S. from Sept. 27 through Oct. 3. All of the tankers left from Cheniere Energy Inc.'s Sabine Pass terminal in Louisiana.