The week in deals: TotalEnergies in Namibia, ADNOC's tech stake, Shell's 20-year SPA

From TotalEnergies pushing up its stake in Namibia, to Shell's 20-year SPA with a Canadian player building a floating unit, the second week of the New Year is already showing an energy sector abuzz with new business.

Gas Matters Today brings you the first of a weekly note of the most significant deals that have gone down in the week. 

If you're spotting more in the week to come, please feel free to drop a note with Penny Sukhraj or Rob Simmons.

In the meantime, here's what we've tracked so far:

South Africa names Vopak to develop Richards Bay LNG terminal 

South Africa has chosen the Vopak Terminal Durban & Transnet Pipelines consortium (VTDNPC) venture as its preferred bidder to develop and operate a new LNG terminal in South Africa’s Port of Richards Bay.  

The appointment follows a procurement process — conducted by state-owned infrastructure entity, Transnet National Ports Authority (TNPA) — and will see the Vopak venture design, develop, construct, finance, operate and maintain the LNG terminal, which is located in the South Dunes Precinct at the Port of Richards Bay for a period of 25 years. 

TotalEnergies bolsters stake in Namibian offshore field near Venus Discovery 

TotalEnergies has agreed a deal with Impact Oil and Gas Namibia to purchase additional participating interests for exploration license blocks within the Orange basin oil field. 

Blocks 2912 and 2913B are located around 290km offshore Namibia, in the northern part of the Orange Basin. The latest investment follows a significant February 2022 discovery by Total of light oil with associated gas on the Venus prospect, in block 2913B. 

ADNOC takes 25% stake in US drilling tech firm via Alpha Dhabi JV 

ADNOC Drilling and Alpha Dhabi Holding PJSC have formally incorporated their joint venture business in the Abu Dhabi Global Market, with Alpha Dhabi contributing a 25% equity stake in Louisiana-based drilling technology firm Gordon Technologies.   

The equity stake addition to the JV has been valued at USD 180 million, with the firm suggesting it will bring “value accretive” returns to both sets of shareholders and will be synergistic with ADNOC Drilling’s business, supporting its long-term dividend growth profile.   

Shell locks in 20-year SPA from 'lowest emitting' FLNG terminal 

Canada-based Ksi Lisims LNG has sealed the first offtake for its floating LNG facility with Shell in a sales and purchase (SPA) deal for around 2 mtpa over 20 years.  

Shell will take delivery on a free-on-board basis under the SPA from the floating facility which is being developed in British Columbia. It is set to be sited on Nisga’a Nation-owned land on the northern tip of Pearse Island.  

Powered by renewable hydroelectricity, the floating LNG unit will be the lowest emission intensity LNG facility in the world, and net-zero ready by 2030, Ksi Lisims said in a statement. The facility will produce 12 mtpa of LNG from two floating LNG production and storage facilities.   

TotalEnergies confirms FID into natural gas, CO2 separation for Brazil’s Mero field 

TotalEnergies has confirmed the green light for a new project to develop a new natural gas and CO2 separation and reinjection unit for use in the Mero offshore field in Brazil.  

The venture, backed by the Libra Consortium — comprising 40% stakeholder Petrobras in partnership with Shell Brazil (20%), TotalEnergies (20%), China National Petroleum Corporation (10%) and China National Offshore Oil Corporation (10%) —  is set to use high-pressure subsea separation (HISEP) technology to separate oil from high CO2 gas at the seabed, allowing the gas to be reinjected directly into the reservoir.    

KN clinches German contract to commercially manage four LNG terminals 

Lithuanian energy terminals operator AB Klaipėdos nafta (KN) has agreed a two-year deal with Deutsche Energy Terminal GmbH (DET) to commercially operate four state-owned LNG terminals.   

The agreement covers two coastal LNG terminals on the North Sea at Wilhelmshaven and one at Brunsbüttel.    

KN will also be responsible for two more terminals, currently under construction at Wilhelmshaven, and in Stade on the Lower Elbe River, which is expected to commence operation in February. 

BlueNord: FID Taken on New Well Expected to Increase Production 

Oslo-based BlueNord announced final investment decision on 12 January on the Harald East Middle Jurassic well (HEMJ), which is expected to be spudded during the summer of 2024. 

The cost of the well is ∼USD 28 million net to BlueNord. The concept for hook-up and potential life extension of Harald will be decided after the well has been drilled.   

If successful, the well could deliver production by the end of 2024. The expected gain from the well is up to 8 mmboe net to BlueNord of which around 80% is gas 

EQT Announces Tolling Agreement with Texas LNG 

EQT Corporation announced it has entered into a HOA for liquefaction services from Texas LNG's facility in Brownsville, Texas to produce 0.5 million tons per annum of LNG under a 15-year tolling agreement. Final terms remain subject to negotiation of a definitive agreement between the parties.

Texas LNG, a subsidiary of Glenfarne Energy Transition, LLC, anticipates a final investment decision on the project in 2024, with first cargo deliveries expected in 2028. 

Finland's Gasum procures LNG cargo for Inkoo terminal from SEFE 

Finnish energy firm Gasum said it is delivering a US cargo of LNG it procured from Germany's SEFE LNG to the Inkoo floating storage regasification unit (FSRU), Reuters reported. 

The LNG cargo is approximately 800 GW, and the fourth large shipment Gasum has delivered to Inkoo since the Balticconnector gas pipeline between Finland and Estonia suffered a rupture and was shut down in early October, it said. 

ReNew signs contract to sell 300 MW solar project at a valuation of USD 199 million 

ReNew, India’s leading decarbonisation solutions company said Monday it had signed a share purchase agreement with India Grid Trust to sell a 300 MW solar project in Rajasthan – ReNew Solar Urja Private Limited (RSUPL) – for a total enterprise value of USD 199 million. Approximately USD 8 million is expected to be additionally received as an earn-out on account of change-in-law proceeds, after the first payment is realised by RSUPL. 

Cedar LNG signs Samsung, Black & Veatch to perform EPC work 

Pembina Pipeline Corp. and the Haisla Nation, partners in development of the proposed 3-million tonne/year Cedar LNG plant, have selected Samsung Heavy Industries (SHI) Co. Ltd. and Black & Veatch to provide engineering, procurement, and construction (EPC) for the design, fabrication, and delivery of the project's FLNG production unit, subject to FID.