In this issue

 

Oil Search, a stakeholder in the Papua New Guinea LNG plant and the joint venture planning its expansion, has released mixed results from the latest field drilling for additional feed-gas resources onshore the Oceania nation. 

The Myanmar government is planning an international tender during the second quarter for the Asian nation to acquire its first LNG import facility in the form of a floating storage and regasification unit. 

Our North America editor in New York

The Canadian province of British Columbia still holds out hope of developing a liquefied natural gas industry while welcoming plans by pipeline company TransCanada to ship its gas to cities like Toronto and to compete in the US for now instead of shipping LNG cargoes to Shanghai and Tokyo. 

Ineos, one of the largest global chemical companies and the importer of the first US shale-gas cargo into the UK, is now broadening its presence in British shale gas exploration to lessen its future reliance on imports. 

Our Asia-Pacific editor

Australian engineering company WorleyParsons, whose past projects have included working on the Singapore LNG import terminal and liquefaction plants in Western Australia such as Wheatstone LNG, has signed a long-term, multi-regional agreement with Chevron for engineering and procurement services. 

AG&P and French company plan to plug scale gaps in LNG value chain

Our Asia-Pacific editor

Atlantic Gulf and Pacific Co., the LNG module maker and fabrication yard operator based in the Philippines, has signed an accord to cooperate with the engineering unit of French industrial gases company Air Liquide to develop small-scale LNG infrastructure and distribution across Asia. 

Our Europe editor

US major ExxonMobil and Italian energy company Eni signed an agreement to enable ExxonMobil to acquire from Eni a 25 percent interest in the Area 4 block of the Rovuma Basin where LNG projects are planned for a cash price of around $2.8 billion.

The Fortuna floating liquefied natural gas project offshore Equatorial Guinea in West Africa remains firmly on schedule for a final investment decision in the next few months. 

Our Asia-Pacific editor

Malaysian energy company Petronas has signed an LNG supply agreement with Japanese utility Hokkaido Electric Power for a period of 10 years that will see shipments delivered to one of Japan’s newest and expanding import terminals. 

Gas Authority of India (GAIL), the state-run natural gas and transmission network operator and LNG importer, has signed a procurement agreement with global commodities trading company Gunvor based on a swap transaction linked to US and spot volumes. 

Australian liquefied natural gas exports and income have surged with the second of three LNG Trains at the Gorgon plant on Barrow Island in Western Australia being ramped up and shipments rising from coal-seam-gas-to-LNG plans in eastern Australia. 

Our Asia-Pacific editor

Japan said the average price of delivered spot liquefied natural gas cargoes in February 2017 jumped to their highest level in two years to reach $8.80 per million British thermal units, $1.90 per MMBtu higher than the $6.90 per MMBtu price logged in the same month a year ago. 

Tokyo Electric Power Co. and Chubu Electric Power, the two largest users and importers of LNG in Japan, are discussing the full integration of their thermal power operations as part of Japanese energy and power deregulation and as the nation this week marks the sixth anniversary of the Fukushima disaster on 11 March 2011 that changed the nation’s energy outlook. 

Our Asia Pacific editor

WorleyParsons, the Australian energy and engineering and construction company noted for working on the Singapore LNG import terminal and liquefaction plants in Western Australia, is the subject of takeover speculation after a Middle East group based in the United Arab Emirates acquired a substantial stake and said it could buy more shares. 

News Nudges

Vitol-Gazprom LNG deal

Swiss-based global commodities company Vitol has signed a multi-year LNG purchase agreement for the Russian player Gazprom Marketing and Trading (Singapore) to supply around 300,000 tonnes of LNG per annum from 2018. The supply will come from Gazprom’s diversified LNG portfolio. “We are delighted to be working with Gazprom Marketing and Trading, a subsidiary of Gazprom, the world’s largest producer of natural gas,” said Pablo Galante Escobar, Head of LNG at Vitol. “Vitol is an established participant in LNG markets globally and this development will strengthen our offering to customers worldwide,” he added.


Spanish firm is on track

Gas Natural Fenosa of Spain, one of Europe’s main LNG players with a supply agreement at Sabine Pass in the US, has held its annual shareholder meeting in Barcelona. Chief Executive Rafael Villaseca highlighted the company’s business performance, which was above the average for comparable companies in Europe. Villaseca said that GNF last year obtained 75 percent of its gross earnings from the regulated activities of gas and electricity distribution and the remaining 25 percent from liberalized power generation and natural gas marketing activities.


ABS starts in Houston HQ

The American Bureau of Shipping, one of the leaders of the development of the LNG industry in the US, has broken ground on its new global headquarters in Houston, Texas, comprising a 10-storey building and 326,800 square feet of office space. Completion of the ABS HQ, is scheduled for the end of 2018.