Saturday, May 13, 2017

China Trade Deal to Fuel Carlyle Group's LNG Assets

U.S. Commerce Secretary Wilbur Ross announced a China trade deal that could benefit his fellow billionaire private equity underwriting (PEU) brethren.  Chicago Tribune reported:

The United States would also allow U.S. companies to ship liquefied natural gas to China as part of the bilateral agreement reached following President Donald Trump's meeting with Chinese President Xi Jinping in April.
The Carlyle Group has at least two affiliates in the LNG space.  4Gas had this to say on the company's website:

4Gas is the world’s only independent LNG-terminaling company with a global reach. Our objective is to establish a terminal network that will play a crucial role in fulfilling the increasing needs of countries and companies for access to natural gas and that will provide LNG producers access to multiple markets on a global scale. The company is developing terminals in continental Europe, North America and Asia.  
The day before the Trump administration announced the China-U.S. trade deal Carlyle had its own LNG newsPEHub reported Carlyle affiliate Neptune Energy will buy oil/gas assets from a French company:

The EPI business that would be acquired by Neptune includes significant North Sea operations in Norway, including operatorship of the Gjøa field, in the Netherlands where EPI is the #1 offshore operator and the UK, with operatorship of the recently commissioned Cygnus gas field, as well as onshore Germany, and the Jangkrik LNG project in Indonesia. In all, EPI operates some sixty producing oil and gas fields. It also includes the large Touat gas development underway in Algeria, where ENGIE would retain a substantial interest alongside Neptune. 
Law360 reported

“Engie remains a major gas player in Algeria through its LNG activity, and Engie’s experience in Algeria is considered key to bring the first gas to the Touat project.” 
Carlyle inked a deal on LNG assets in Southeast Asia the day before the Trump team opened doors into China.  That's timing!  Carlyle co-founder David Rubenstein should thank President Trump the next time they meet at Mar-a-Lago.
President Trump and Commerce Secretary Wilbur Ross want to help more than Carlyle's founding billionaires.  Trump Advisor Stephen Schwarzman can win as well.  Schwarzman's Blackstone Group is also in the LNG business.  Yes, under President Trump the rich can get much richer.

Update 5-17-17:  ZeroHedge ran an OilPrice piece on a coming LNG boom.

Update 5-21-17:  Alaskan LNG has historically been exported to Asia and Alaska Governor Bill Walker has big plans for LNG.  With BP, ConocoPhillips and ExxonMobil dropping out Walker needs a new developer for the $45 billion project.  Walker petitioned President Donald Trump for $40 billion in federal loan guarantees.  Will Carlyle enter the Alaska LNG picture and help Governor Walker and President Trump get a big infrastructure win?  Watch the news.  Chess pieces are being moved for LNG to boom in Alaska.

Update 6-29-19:  LNG is the latest weapon for U.S. imperialism and nobody does imperialism better than Carlyle.

Update 5-28-20:  S+P Global reported "London-based Neptune Energy announced Wednesday several delays to upstream oil and natural gas projects it is involved in in the North Sea, including with BP and Norway's Equinor, along with more spending cuts intended to weather the fall in commodity markets."  Neptune's Executive Chair said market turmoil would make the company cautious about acquisitions.