Shale

Fracking ban would have little immediate impact

Recent analysis by Rystad Energy suggests a potential fracking ban, as suggested by at least one U.S. presidential candidate, would result in a widespread shift of capital from federal to private and state-owned acreage in a bid to replace any lost oil volumes. In other words, a fracking ban would likely have little immediate impact on nationwide oil and gas production.

"Even in the long-term, the impact might be quite negligible as seen from the greater industry perspective," said Artem Abramov, head of shale research at Rystad. "However, the effects of such a ban could have stronger negative effects on one key shale producing region in particular: the New Mexico portion of the prolific Permian Delaware Basin."

From a valuation perspective, a fracking ban would theoretically affect the full acreage potential and hence negatively impact the total portfolio value for some E&Ps. Rystad indicated as much as $36.5 billion in upstream asset value could be lost in New Mexico alone.

For more information, visit www.rystadenergy.com or call +47 24 00 42 00.

TC Energy expanding access to Gulf Coast, other markets

TC Energy Corp. has approved two new expansion projects totaling $1.3 billion on its wholly owned natural gas pipeline systems. The $0.9 billion 2023 NGTL Intra-Basin System Expansion will deliver natural gas from western Canada to Alberta, while the $0.3 billion Alberta XPress project will see the expansion of the ANR Pipeline to provide a seamless path for access to markets including the Gulf Coast.

Speaking about the expansions, TC Energy President and CEO Russ Girling said, "These new investments within our existing system footprints supplement our ongoing $30 billion secured capital program and demonstrate the long-term need across North America."

Applications for approvals to construct and operate the ANR facilities will be filed with FERC in 2020. Pending receipt of FERC approvals, construction will commence as early as the third quarter of 2021.

For more information, visit www.tcenergy.com or call (800) 661-3805.

New Fortress signs long-term LNG supply agreement

New Fortress Energy LLC has signed a long-term supply agreement for the purchase of 27.5 MMBtu per annum of LNG, or approximately eight cargoes a year, at a price indexed to Henry Hub through January 2030. This agreement will support the company's plans to develop LNG terminals and natural gas infrastructure in order to reach international markets.

"We evaluated a broad range of competitive offers to meet the expansion of our LNG terminals across international markets," said New Fortress Chairman and CEO Wes Edens.

For more information, visit www.newfortressenergy.com or call (212) 798-6128.

DOE issues non-FTA export approvals

The DOE has issued four long-term orders authorizing the export of domestically produced LNG from four proposed export projects in Texas: Annova LNG, Rio Grande LNG and Texas LNG -- all located in Brownsville -- and Corpus Christi LNG's Stage III.

"The Trump administration recognizes the importance and increasing role U.S. natural gas has in the global energy landscape," said Secretary of Energy Dan Brouillette. "The export capacity of these four projects alone is enough LNG to supply over half of Europe's LNG import demand. With today's authorizations, we are paving the way for more U.S. natural gas exports to bring energy security and prosperity to our allies around the world."

The four named companies are authorized to export LNG from their respective projects by ocean going vessel to any country with which the U.S. does not have a free trade agreement requiring national treatment for trade in natural gas and with which trade is not prohibited by U.S. law or policy. FERC authorized the siting, construction and operation of the export projects in November 2019.

For more information, visit www.energy.gov or call (202) 586-5000.