Sometimes, It’s Good to Think Small

Sometimes, It’s Good to Think Small

​With the flurry of large-scale LNG projects currently underway, RMR today is looking at the small-scale facilities that are finding new markets for this fuel on land and offshore.

As recently as May, Pivotal LNG announced start-up operations of JAX LNG—the nation’s first small-scale waterside LNG production facility. Located at the Port of Jacksonville, Fla., JAX LNG offers both marine and truck-loading capabilities and produces 120,000 gallons of LNG per day with more than 2 million gallons of storage. The facility also is the long-term supplier to the world’s first LNG dual-fuel container ships. In addition to marine and trucking companies, JAX LNG is poised to serve other industries as well, including rail, drilling, mining, power generation, commercial and industrial. Exports to Puerto Rico and Caribbean countries are another growing market for small-scale plants.

The industry isn’t exactly new, but more and more LNG companies are springing up with their own business models and proprietary technologies to address the growing demand and applications for LNG here and abroad. What do you think?

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No Longer a Pipe Dream for SCOOP Operators

No Longer a Pipe Dream for SCOOP Operators

Producers in the Anadarko Basin’s SCOOP and STACK plays have suffered the same pipeline labor pains as those in the Permian, albeit to a smaller extent.

Since Okla. City-based Continental Resources announced the first SCOOP discovery well in 2012, other producers followed en masse to find their own gushers in this oil-and-gas rich region of Okla. But just like the Permian and other major basins across the country, the lack of takeaway capacity to keep pace with production hit the Anadarko like a wall.

That’s when Houston-based Candor Midstream seized on a ripe opportunity. In January, this two-year-old startup purchased a 100-mile decommissioned natural gas pipeline in the heart of the SCOOP and went straight to work upgrading the system to offer rich gas-gathering and flow assurances from Okla. to processing facilities in Bridgeport, Texas. Even better, the line is now open for business. With an initial capacity of 200 MMCFD, Candor’s SCOOP-NORTHTX pipeline helps to debottleneck this sub-basin. Well done, Candor. What do you think?

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Meg and Mega

Meg and Mega

Meg Gentle has mega plans for the U.S. LNG industry and one heck of a smart business strategy to launch them.

Tellurian Inc.

Tellurian was founded by Charif Souki and Martin Houston and is led by President and CEO Meg Gentle. Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide. Tellurian is developing a portfolio of natural gas production, LNG trading, and infrastructure that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol “TELL”.

www.tellurianinc.com

As a former executive of Houston-based Cheniere, Gentle now leads LNG-focused Tellurian as CEO. RMR today is following the latest news from Tellurian, which just signed a Memorandum of Understanding with India’s largest LNG importer Petronet. The $7.5 billion deal includes Petronet’s purchase of an 18% equity stake in Tellurian’s Driftwood LNG project and up to 5 million tons per year (mtpa). Driftwood will comprise a 27.6 mtpa export facility near Lake Charles, La., and a 96-mile pipeline that will connect the LNG terminal to the U.S. natural gas market. Petronet is the second international company to invest in Driftwood right behind French energy giant Total earlier this year.

But maybe the larger story is Tellurian’s debt-financing strategy in which LNG buyers will own a stake in the project. That along with the company’s own production of gas supplies to reduce dependence on third-party producers. For Gentle, Driftwood is just the start of her vision for both Tellurian and the U.S. LNG industry. What do you think?

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America’s LNG Industry to Become a Superpower before the Next Decade

America’s LNG Industry to Become a Superpower before the Next Decade

With three LNG projects on the horizon in the Rio Grande Valley near Brownsville, Texas, the U.S. moves closer to securing its position over the next five years as the world’s largest LNG exporter.

RRM today is following the latest news on one of those projects from Houston-based NextDecade, which looks to complete its Rio Grande LNG terminal by 2023. From its 984-acre site in the Port of Brownsville, the facility will offer a capacity of 27 million tons per year. NextDecade yesterday announced a partnership with Canadian-based Enbridge to construct the Rio Bravo dual pipeline. The twin 140-mile pipelines will connect via other pipelines to the Agua Dulce gas hub in Nueces Co., Texas, to transport 4.5 BCF per day of gas originating from the Permian Basin and Eagle Ford. This will be the first LNG export build for NextDecade. Next to come will be its Galveston Bay LNG located in Texas City—a 994-acre site with an expected capacity of 16.5 million tons per year.

What do you think?

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The Shipping News

The Shipping News

Kelcy Warren likes big. He thinks big, buys big, and donates big in quintessential Texas fashion. So, at a time when most energy CEOs are tightening the purse strings to appease financial backers and shareholders, Warren is making deals and opening his wallet big-time.

Energy Transfer

Energy Transfer is one of the largest and most diversified midstream energy companies in the country with more than 86,000 miles of pipelines traversing 38 states transporting the oil and gas products that make our lives possible.

energytransfer.com

RMR is following news from Warren’s Dallas-based Energy Transfer, which just announted it will purchase Tulsa-based SemGroup for $5.1 billion. With 86,000 miles of pipelines spanning the country along with terminals, fractionators, storage, and gas processing and regasification facilities, Energy Transfer has emerged a midstream giant transporting natural gas, NGLs, crude oil, refined products and LNG.

Now with the SemGroup acquisition, Energy Transfer will increase its connectivity with complimentary infrastructure and expand its Gulf Coast presence from one to two terminals. The latter, however, looks to be the crown jewel in the deal as Energy Transfer eyes exporting fuels. Plans are in play to convert the company’s LNG import facility into an export hub, and  SemGroup’s crude and products terminal is one of the largest of its kind on the Houston Ship Channel. And for Warren, bigger is better. What do you think?

www.energytransfer.com

www.semgroup.com

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