Most Wanted: LNG

Most Wanted: LNG

The world’s largest purchaser of LNG has now become a major stakeholder in Houston-based Freeport LNG. Reese Energy Consulting today is following the latest news from Japan’s JERA Co., which will acquire a 25.7% interest in Freeport for $2.5 billion. The deal adds to JERA’s 25% share of Train 1, which supplies 2.32 mtpa of LNG exported to Japan and other importing countries. The country last year imported a combined 74.4 million tons from the U.S., Australia, Malaysia, Qatar, Russia, and Indonesia. Freeport, the nation’s second-largest LNG producer at 15+ mtpa, launched operations on its third train in May 2020 with expansion plans for a fourth that is fully permitted and shovel-ready. Total cost of the facility is estimated at $14 billion. The company also distinguishes itself as the only U.S. LNG producer to use electric motor-driven technology to emit 90% less CO2 compared to gas turbines. JERA was formed in 2014 to promote the country’s transition from coal through global acquisitions and alliances to achieve zero CO2 emissions by 2050. JERA Americas is headquartered in Houston.

What do you think? Learn more about REC and our range of natural gas and LNG services at www.ReeseEnergyConsulting.com.

Freeport LNG

Freeport LNG Development, L.P. was formed in 2002 to develop, own and operate an LNG terminal on Quintana Island, near Freeport, Texas. The terminal started LNG import operations in June 2008 and began LNG export operations in 2019.

freeportlng.com

You Might Also Like…

The Global Energy Situation Now Crowned a Crisis

The Global Energy Situation Now Crowned a Crisis

​Most every descriptor recently used to paint the global energy supply picture—crunch, challenge, problem, oh crap—have now been promoted to just one word: Crisis. The same can be applied on the demand front, where those grappling for every kind of energy are paying skyrocketing prices to meet consumer needs ahead of what many fear to be another brutal winter. Reese Energy Consulting today is following the latest news in the media-verse that would have us believe most parts of the world are in a state of panic to build up storage and nail down long-term contracts for crude oil, natural gas, and LNG. Up until Tuesday, China watched its coal prices rise a staggering 107% since September. Rumors of a government intervention have since dipped futures prices by 8% to $254.44 per ton, but power interruptions and blackouts from its predominantly coal-fired plants are still expected. Russia has “chosen” not to send additional gas supplies to Europe via its Yamal-Europe route, booking only 1.59 BCFD for November vs 3.5 BCFD. Here at home, the EIA predicts our natural gas and electricity costs will rise between 30-50%, and while demand will be high at least supply won’t be an issue.

What do you think? Learn more about REC and our natural gas services at www.ReeseEnergyConsulting.com.

You Might Also Like…