Tellurian's $1 billion sale

PLUS: EQT carbon offsets, GM's lithium bet, EnCap sale

Good Morning. This is the Sunya Scoop. The newsletter that takes energy transition news and turns it into an easy-to-read email for you.

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Winner of the Sunya Scoop Bourbon Madness 2023 and a bottle of Blanton’s is…

…a Houston-based New Energy Executive

Given the highly coveted nature of the prize causing security and safety risk, the winner will remain anonymous

  • EQT announces its first nature-based carbon offset initiative

  • Partnership with Wheeling Park Commission, Teralytic (soil analytics company), and Climate Smart Environmental Consulting

  • Forest management projects to generate carbon offsets across 1,000+ acres of forest land at Oglebay and other properties

  • Teralytic's soil probe technology to ensure accurate, transparent quantification of offsets

  • Initiative to support EQT's efforts to reach net-zero Scope 1 and Scope 2 GHG emissions by or before 2025

  • Conservation Practice Standards (CPS) by the U.S. Department of Agriculture's NRCS and alignment to Verra guidelines

  • Advanced soil probe technology to measure project impact on soil health, generating higher quality carbon offsets at lower cost

  • EQT partners with Wheeling Country Day School for educational learning program on soil health

  • Humble Midstream exits joint venture with Enbridge for an undisclosed amount

  • Joint progress made in engineering and capacity marketing for low-carbon ammonia production and export facility at Enbridge Ingleside Energy Center (EIEC) in Texas

  • Yara Clean Ammonia shows interest in engaging directly with Enbridge to jointly develop the project, enhancing its long-term prospects

  • Utility-scale production facility to supply ultra-low-carbon ammonia for growing global and domestic demand

  • Up to 95% of CO2 generated from production to be sequestered in new carbon capture infrastructure

  • We covered the Yara-Enbridge announcement last week

Between this and the Permian sale, last week was a big one for EnCap!

  • Japan seeks G7 agreement to accelerate decarbonization efforts through collaboration at ministers' meeting on climate, energy, and environment

  • Meeting to be held in Sapporo on April 15-16, with Japan as G7 chair this year

  • Japanese industry minister Yasutoshi Nishimura highlights need for energy security and economic growth alongside decarbonization

  • Nishimura notes importance of LNG and natural gas as transition energy sources; differences exist on length of energy transition period

  • G7 ministers expected to confirm commitment to existing sanctions on Russia and reducing dependence on Russian energy

  • Japan continues to buy Russian gas from Sakhalin-2 project, accounting for 10% of its total imports; no requests to reduce dependence on Russian energy from G7 allies

  • Japan engages in resource diplomacy, seeking to diversify energy supplies and maintaining ties with Middle Eastern countries

  • Tellurian to sell 800 acres of land in Louisiana for $1 billion to an undisclosed institutional investor

  • Land was designated for the proposed Driftwood LNG terminal facility

  • Company will lease the land back for 40 years at an 8.75% capitalization rate

  • Deal creates a 40-year liability of $87.5 million annually, escalating 3% yearly

  • Driftwood project faced setbacks, including cancellation of some LNG supply deals

  • Project received regulatory approvals in January to begin construction

  • Expected to produce 27.6 million tonnes per annum of LNG when completed

  • Deal contingent on Driftwood LNG LLC securing financing commitments for Phase 1 of the project on satisfactory terms for the buyer

The LNG financing crunch continues…

  • Harbour Energy and BP to develop the Viking CCS project in North Sea

  • Harbour Energy will remain the operator with a 60% interest

  • BP will acquire a 40% non-operated share

  • The UK has launched the "Track 2" cluster sequencing process for carbon capture and storage

  • Viking CCS is recognized by the government as one of the leading contenders for the process

  • Final investment decision on the project is expected in 2024, subject to the outcome of the Track 2 CCS.

  • General Motors (GM) announces an investment in lithium technology start-up EnergyX to secure long-term supplies of the metal for its electric vehicle batteries.

  • EnergyX is one of several companies developing direct lithium extraction technologies (DLE) that can extract lithium from brine deposits that have been largely ignored by the mining industry.

  • GM plans to lead a Series B round of financing for EnergyX worth $50 million and will have the right of first refusal to buy lithium from any projects that EnergyX develops.

  • GM's scientists will work with EnergyX to commercialize the DLE technology, aiming to extract lithium efficiently from brine sources.

  • EnergyX is building five demonstration facilities in Argentina, Chile, California, Arkansas, and Utah to test its technology.

  • The investment follows GM's $650 million investment in Lithium Americas Corp and its investment in Controlled Thermal Resources Ltd.

  • EnergyX plans to launch an initial public offering by 2024.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.