Tag Archives: LNG Transport & Storage (TRBC level 5)

New Fortress Energy is betting on Brazilian LNG growth with the acquisition of Hygo | Instant News

RIO DE JANEIRO (Reuters) – US-based New Fortress Energy Inc said on Wednesday it would buy natural gas company Hygo Energy Transition Ltd for $ 2.18 billion to expand its presence in Brazil, the frontier for growth in the burgeoning liquefied natural gas market. developing.

New Fortress, an energy infrastructure company, is among the private sector players turning their sights to Brazil, where demand for super-cooled LNG is increasing, although the market is smaller than in India and China, where power generation is shifting away from more coal. dirty to natural gas.

With Brazil opening up its natural gas industry to private investors, other companies including oil major BP PLC and US-based EIG Global Partners are also planning multibillion-dollar investments in the country.

New Fortress, a growing competitor in the LNG industry, has a small liquefaction plant in Florida and ships LNG throughout the Caribbean. In the past year, its market value has jumped 286% to $ 10 billion, according to Refinitiv Eikon data. The company is building a larger LNG import terminal in Mexico.

The company will acquire all of Hygo’s outstanding shares for 31.4 million shares of NFE Class A common stock and $ 580 million in cash.

Brazil’s annual demand for LNG is expected to grow by more than 80% by 2021, the fastest rate in the world, although its starting point is relatively low compared to large Asian consumers, said Kristen Holmquist, forecasting specialist at Poten & Partners.

Unlike these countries, most of Brazil’s electricity comes from hydropower. This LNG supply is partly intended to replace the supply of natural gas from pipelines originating from Bolivia.

Hygo transports supercooled fuel and has become a key player in Brazil’s natural gas industry as state-controlled Petrobras sells assets, canceling what was almost a monopoly on the market.

Hygo – a 50-50% joint venture between US private equity firm Stonepeak Infrastructure Partners and Golar LNG – has recently invested in a number of LNG projects in Brazil for power generation. The company is also competing to operate a highly desirable LNG import terminal which is leased by Petrobras.

“There is strong growth in Brazil for electricity-powered projects,” Holmquist said in a webinar on Wednesday.

Hygo has told Reuters in 2020 that it plans to use LNG instead of diesel in trucks.

The transaction has a corporate value of $ 3.1 billion and an equity value of $ 2.18 billion, according to the statement.

The Hygo acquisition comes four months after the company’s trading debut in New York was suspended at the last minute after Brazilian federal prosecutors said the then company’s chief executive was appointed in the early stages of a corruption investigation, to activity at the company previously.

The CEO at the time, Eduardo Antonello, had left the company. He hasn’t been charged.

New Fortress also agreed to buy Hygo’s controlling company, Golar LNG Partners LP for about $ 251 million in general equity value and a company value of $ 1.9 billion.

Golar LNG Ltd was up 15% in US trading, while New Fortress Energy was up 10%.

Reporting by Sabrina Valle and Rithika Krishna; Edited by Maju Samuel, Krishna Chandra Eluri, Steve Orlofsky and David Gegoryo


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Pakistan LNG seeks two cargoes for April delivery – documents | Instant News

SINGAPORE, December 31 (Reuters) – Pakistani LNG is seeking two cargoes of liquefied natural gas (LNG) for delivery in April, a tender document posted on the company’s website shows.

The state-run procurement agency is looking for cargo on an ex-ship basis (DES) to be dispatched in the Qasim Port, Karachi, for delivery between April 5 to 6 and April 19 to 20, according to the document.

Tender closes on January 29 and remains in effect until February 12 (Reporting by Jessica Jaganathan; Editing by Christian Schmollinger)


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Petrobras Brazil said it would review Golar’s participation in the LNG terminal tender | Instant News

FILE PHOTOS: Petrobras logo. REUTERS / Sergio Moraes

RIO DE JANEIRO (Reuters) – Brazilian oil producer Petroleo Brasileiro SA PETR4.SA said it will review the participation of liquefied natural gas (LNG) company Golar Power in an ongoing tender to lease a supercooled natural gas import terminal in the state of Bahia.

Petrobras, a Rio de Janeiro-based company designation, said in a statement that it would review Golar’s integrity analysis, a report applied to all of the company’s suppliers. Suppliers deemed to have a high level of integrity risk cannot do business with a state-controlled producer.

Golar Power, a joint venture of Golar LNG GLNG.O and US private equity firm Stonepeak Infrastructure Partners, did not immediately respond to an after-business email request for comment.

The review came when a Golar group executive was quoted in the early stages of the latest stage of Brazil’s six-year corruption investigation known as the Car Wash investigation, Petrobras said. The charges against the executive, Golar Power CEO Eduardo Antonello, are based on testimony from criminals who confessed to pleading bargains. No fees are charged.

Petrobras said it had also asked for information from a former subsidiary and fuel distribution company Petrobras Distribuidora SA BRDT3.SA on its current partnership with Golar Power for LNG distribution.

Reporting by Sabrina Valle; Edited by Muralikumar Anantharaman


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Hygo’s trade was suspended as the named CEO of a Brazilian corruption probe | Instant News

RIO DE JANEIRO / LONDON, Sept. 24 (Reuters) – Trading debuts at Hygo Energy Transition Ltd were suspended on Thursday hours after the chief executive of liquefied natural gas transportation and infrastructure operators was named in a corruption probe in Brazil.

Hygo is led by Eduardo Antonello, a former executive of offshore oil rig firm Seadrill Ltd who has been accused of bribery by Brazilian federal prosecutors in a court filing that outlines a new phase of Car Wash’s massive corruption probe.

Antonello, who is now based in London, did not immediately respond to a request for comment.

Hygo, a joint venture between Golar LNG Limited and US private equity firm Stonepeak Infrastructure Partners whose shares will be divested in New York, did not confirm or deny the cancellation of the IPO, its press office said by email. Stonepeak did not immediately reply to a request for comment.

Golar said the allegations against Antonello “involved preceded behavior and did not, in any way, involve his job at Hygo.”

“However, with great care, Hygo has initiated a review to ensure that there is no deviation from a culture of compliance with respect to Mr Antonello’s service to Hygo,” the company said in a statement.

Hygo’s share price was due on Thursday, but the New York Stock Exchange said they had suspended it without giving a reason.

Golar’s stock was down more than 25% at $ 7.25 in New York morning trade.

Hygo announced in September its plans to raise $ 485 million in an initial public offering, with shares ranging from $ 18- $ 21 each, according to regulatory filings.

As part of the final stage of the Car Wash probe, a corruption probe that in six years saw two former Brazilian presidents and hundreds of executives and politicians imprisoned, Brazilian and Dutch police executed dozens of search warrants on Wednesday.

According to Brazilian federal prosecutors, the current stage involves Seadrill as investigators deepened the ongoing investigation into three contracts worth $ 2.7 billion signed in 2011 by Malaysia’s Sapura Energy Berhad and Brazilian state-controlled oil company Petroleo Brasileiro SA.

Sapura strongly denies involvement in any form of bribery or corruption in its business dealings in Brazil and anywhere in the world, the company said on Thursday in a statement.

The investigation is in its early stages and details were first revealed by Brazil’s federal prosecutors on Wednesday. Nothing is officially billed.

Antonello was working for Seadrill at the time and was responsible for establishing the company’s operations in Brazil. Court documents in Brazil show that his phone was tapped and his email was monitored by police.

Seadrill confirmed its subsidiary Seadrill Servi├žos de Petroleo Ltda was served on Wednesday with a search and seizure warrant from the federal police in Rio de Janeiro. He said it was cooperating fully with the ongoing investigation.

Seadrill shares closed down 6.5% on Thursday in Oslo.

The contract between Sapura and Petroleo Brasileiro, for the construction and leasing of three pipeline support vessels, known as the PLSV, is still in effect today, prosecutors said. (Reporting by Sabrina Valle and Gram Slattery in Rio, and Jonathan Saul in London; Additional reporting by Niket Nishant and Luciano Costa; Editing by Christian Plumb and Daniel Wallis)


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