French gas and power utility Engie SA has pulled out of a major U.S. LNG import deal after government concerns about its environmental implications.
Late last month the French government had asked Engie to hold off from signing the deal with NextDecade Corp. amid growing scrutiny of the effects of shale gas extraction methods such as fracking and their impact on climate change through methane emissions.
"Engie has decided not to pursue commercial negotiations with NextDecade about this gas supply project," an Engie spokeswoman said, confirming a report in French daily Le Monde.
The contract, estimated to be worth $7 billion, was for the import of shale gas via a Texas-based terminal as part of a project called Rio Grande LNG.
RELATED:
Recommended Reading
Exclusive: FireBird Energy Prowling Permian for Midland Basin M&A
2023-05-15 - After selling FireBird Energy LLC to Diamondback last year, the same team is searching for deals to develop another asset in the Midland, and possibly the Delaware Basin, too.
Quantum-backed FireBird II Raises Over $500MM for Permian Deals
2023-04-22 - After FireBird Energy LLC sold to Diamondback for $1.75 billion last year, FireBird II was formed to pursue more deals in the Permian Basin.
Riley Permian Announces Quarterly Cash Dividend
2023-04-14 - Riley Exploration Permian’s board of directors approved a cash dividend of common stock of $0.34 per share to be paid to stockholders on record as of the close of business on April 25.
NGP Backs Permian Mineral, Royalty Firm with $100MM Investment
2023-04-24 - NGP is financially backing Wing Resources on a seventh partnership aimed at acquiring oil and gas minerals and royalties in the Permian Basin.
Matador Declares $0.15 Per Share Quarterly Cash Dividend
2023-04-20 - Matador Resources’ quarterly cash dividend of $0.15 per share will be payable on June 1 to shareholders on record as of May 11.