The week saw a variety of movement in gas-sector deals, from major supply contracts inked, like Qatar Energy's 7.5 mtpa to India, to the agreement between Centrica Energy and Repsol for supply of 1 mt LNG between 2025 and 2027.
However, on the M&A front, the highlight — or lowlight in this case — was the parting of ways between Santos and Woodside.
Elsewhere, Germany looks on track to receive its first supplies of pipeline natural gas from Algeria — here's the rest of what you need to catch up with on the top deals that went down this week.
EIG subsidiary MidOcean Energy has agreed a deal to acquire a 20% interest in Peru LNG (PLNG) from current owners SK Earthon.
Financial details of the deal have not been disclosed by either party. PLNG owns and operates the first LNG export plant in South America, located in Pampa Melchorita, 170km south of Lima, Peru.
The project’s assets include a natural gas liquefaction plant with 4.45 mtpa processing capacity as well as a fully owned 408 km-long pipeline with 1,290 MMcf/d capacity and two 130,000 m3 (4,5 Mmcf) storage tanks.
Australian gas heavyweights Santos and Woodside confirmed Wednesday they had called off talks on a potential USD 52 billion merger, despite protracted discussions and information exchange between the two parties since late last year.
In an announcement, Woodside CEO Meg O’Neill said the Perth-headquartered LNG supplier had conducted thorough due diligence on a potential deal, but would only pursue a transaction that was “value accretive” for its shareholders.
US oil and gas producer Devon Energy has approached Enerplus, a peer with a market value of USD 3 billion, with an acquisition offer, people familiar with the matter said on Thursday.
Australia’s Woodside Energy is in talks to buy liquefied natural gas from several US export terminals, including Energy Transfer LP’s Lake Charles project in Louisiana, according to people familiar with the matter.
Lake Charles, which isn’t yet under construction, is one of the projects affected by the Biden administration’s pause on granting new LNG export approvals as it weighs environmental and economic concerns. Energy Transfer’s request to extend its existing permit for the plant was denied last year.
Repsol has agreed to provide Centrica with 1 mt of LNG between 2025 and 2027, in a move set to improve the UK’s energy security in the coming years.
The cargoes are expected to be delivered to the Grain LNG import terminal in Kent.
The deal marks an additional move by Centrica to build further resilience in the UK’s energy security, following a 15-year, USD 8 billion deal with Delfin Midstream in July 2023, a three-year supply agreement with Equinor that will heat 4.5m UK homes through to 2024 and the reopening and expansion of the Rough gas storage facility in October 2022 and June 2023 respectively.
The charter agreement with Santos Shipping Singapore starts in the first quarter of 2024.
The vessel is set to undergo LNGe upgrades to cut back on emissions.
QatarEnergy has entered into a 20-year LNG agreement with Petronet LNG to supply of 7.5 mtpa of LNG to India.
In line with the terms of the sale and purchase agreement, the contracted LNG volumes from Qatar will be delivered ex-ship to terminals across India onboard QatarEnergy’s vast LNG fleet starting May 2028.
Germany will receive its first supplies of pipeline natural gas from Algeria under a medium-term contract signed between a subsidiary of trader VNG AG and state-owned oil and gas firm Sonatrach, the companies said on Thursday.
Vital Energy is moving ahead with the second acquisition of additional working interests in producing assets associated with the recent asset acquisition from Henry Energy LP, Moriah Henry Partners LLC and Henry Resources LLC for USD 78 million.
The move would increase Vital Energy’s working interest in 54 producing, low-decline wells by an average of 67%, increasing the Company’s estimated 2024 production by approximately 1,850 Boe/d (51% oil) and estimated 2024 free cash flow by around USD 25 million.
Sri Lanka is set to receive LNG supply via Petronet LNG from the start of 2025, to help increase power capacity to 300 MW.
LNG will initially be supplied through containers, followed later by a floating storage re-gasification unit.
The merger now creates a technology-focused firm, Crypopeak Energy Solutions Corp.
In addition, Crypoeak has acquired all LNG assets from Campus Energy Partners Infrastructure LP, including the regional LNG production facility located in Dawson Creek, British Columbia.
The firm will manage all three LNG facilities in Western Canada.