This week

Japan believes the pace of rising
LNG demand is still to be assessed

Japanese natural gas market analysts have returned from meetings in the US with the impression that supply-side companies have restored their bullishness about the gas market as sentiment has turned around because business conditions have grown brighter in the wake of crude oil prices staying above $70 per barrel.

Latest News
The Papua New Guinea LNG plant, operated by ExxonMobil Corp. under a joint venture with several other companies and the government, has signed a medium-term sales agreement…
Chevron Corp., the US major and leading LNG plant operator, was granted a motion to dismiss a global-warming lawsuit filed against it by the City of New…
Japanese liquefied natural gas imports plunged last month along with imports of thermal coal for power generation with only LNG shipments from the Middle East remaining stable…
Singapore LNG cargo indices eased to just over US$9.00 per million British thermal units, with North Asia stronger at around $9.50 per MMBtu as front-month crude oil…
Chart Industries, the US manufacturer of engineered equipment for the industrial LNG, natural gas and energy industries reported a 34 percent rise in second-quarter sales and the…
Kinder Morgan, the US pipeline and terminals company, said its LNG export project at Elba Island near Savannah in the state of Georgia is running slightly behind…
Australian LNG producer Woodside Petroleum made progress in the second quarter on a plan to process third-party feed-gas through the North West Shelf LNG plant in Western…
Santos, the Australian stakeholder in three Asia-Pacific LNG production plants, reported strong first-half revenue growth even as an earthquake in February shut the ExxonMobil-run Papua New Guinea…
Baker Hughes-GE, the LNG equipment-maker and oil and gas services company created by the merger of General Electric with the US company famous for its rig counts,…
US LNG export project investors and potential foreign importers of the fuel have been informed by the US government that non-Free Trade Agreement permits are valid for…
US LNG equipment-maker and industrial gas operator Air Products has confirmed that its new global headquarters would be built in Lehigh Valley in Pennsylvania near where it…

Six US cargoes leave

July 20 (LNGJ) - US LNG exports were unchanged in the past week with six cargoes amounting to 21.7 billion cubic feet being shipped through July 18. The six vessels all departed from the Sabine Pass liquefaction facility in Louisiana, according to a report from the Energy Information Administration. Day-ahead natural gas prices were lower and the benchmark Henry Hub fell 12 cents to $2.72 per million British thermal units. “Outside of the Rocky Mountain region, temperatures were generally higher than normal in much of the country, but they didn’t have a significant effect on prices,” said the EIA. At the Algonquin Citygate serving Boston, prices were little changed at $2.70 per MMBtu. Shale-gas prices that normally trade at a significant discount to the Henry Hub were last at $2.25 per MMBtu on the Tennessee Zone 4 Marcellus pipeline system.

UK cargo on July 26

July 19 (LNGJ) - The 266,000 cubic metres capacity Q-Max carrier “Bu Samra” will unload a cargo on July 26 at the UK Milford Haven import terminal in Wales from the Ras Laffan plant in Qatar, according to the Port Authority. The delivery was heading for the UK as the National Balancing Point benchmark natural gas price was at the equivalent of $7.60 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was slightly lower at the equivalent of $7.55 per MMBtu.

LNG player wins case

July 18 (LNGJ) - Kosmos Energy, the Dallas-based partner of BP of the UK in the development of floating LNG projects offshore Senegal and Mauritania in West Africa, has been successful in an arbitration case brought by its subsidiary in another West African country, Ghana, against Tullow of the UK. The dispute was over responsibility for expenditure stemming from termination of the West Leo drilling rig contract in Ghana. The tribunal’s final award in the arbitration was delivered to the parties by the International Chamber of Commerce. As a consequence of the arbitration award, Kosmos will not be required to fund its portion of Tullow’s liability to Seadrill, estimated by Tullow to be around $50.8 million. “Kosmos will also be reimbursed by Tullow for approximately $14 million plus interest, related to amounts previously paid under protest as well as certain costs and fees of pursuing the arbitration,” said the US company.

Enagas reports profit

July 17 (LNGJ) - Enagas, the Spanish natural gas network and LNG terminal operator, posted a net profit for the first-half of 219.8 million euros ($258M), a slight rise of 1 percent on the same period of 2017. The company reported that demand for natural gas in Spain grew by 5.9 percent in the first six months of 2018. “This growth is mainly due to the positive evolution of conventional demand, which rose by 7.8 percent as the consequence of lower-than-normal temperatures at the start of the year,” said Enagas. During the first-half, Enagas noted that it invested the equivalent of $120M in the Trans-Adriatic Pipeline (TAP) in which it holds a 16 percent stake.

Greeks order four ships

July 17 (LNGJ) - South Korean shipbuilder Hyundai Heavy Industries said it received an order amounting to US$745 million to build four liquefied natural gas carriers for a Greek shipping group, according to a filing with the Korean Stock Exchange. The world's biggest shipbuilder by sales said it obtained the order to build four LNG carriers for the Greek-owned Marinakis Capital Gas Carrier Corp. The vessels are to be completed by the end of June 2021. HHI said that in the January-June period it had received orders worth $2.87 billion. Daewoo Shipbuilding and Marine Engineering, the second-largest Korean shipbuilder, said earlier in July that it received an order from Greek LNG fleet owner Maran Gas Maritime for a vessel with capacity of 173,400 cubic metres for delivery in the first half of 2021. DSME said it had received US$3.4Bln of orders for 27 vessels of all categories so far in 2018.

European deliveries

July 16 (LNGJ) – The 75,000 cubic metres capacity “Berge Arzew” is scheduled to unload an Algerian shipment on July 17 at the Fos sur Mer facility near the French port of Marseilles, according to shipping data. The 148,471 cubic metres capacity “LNG Kano” will deliver a cargo on July 17 to the Huelva terminal in southwest Spain from the Bonny Island plant in Nigeria. The 210,100 cubic metres capacity Q-Flex vessel “Al Sheehaniya” will deliver on July 19 to the French Dunkirk terminal from Ras Laffan in Qatar. The 145,700 cubic metres capacity “LNG Benue” will unload a Nigerian shipment on July 21 at the Portuguese Sines terminal, located south of Lisbon. The 147,200 cubic metres capacity vessel “Arctic Princess” will deliver cargo on July 22 to the Baltic port of Klaipeda in Lithuania from the Hammerfest plant in Norway operated by Equinor.

US LNG exports rise

July 13 (LNGJ) - US LNG exports increased in the past week as six vessels departed through July 11 carrying a combined 22.4 billion cubic feet of natural gas. Four of the cargoes were shipped from the Sabine Pass facility in Louisiana and two from Cove Point in Maryland, said the Energy Information Administration. The Henry Hub spot price fell in the week to $2.84 per million British thermal units. “After record-high temperatures were experienced in the Northeast and Midwest last week, temperatures in most of the Lower 48 states decreased, reducing natural gas demand for electric power generation for air conditioning,” said the EIA. Northeast prices also fell. At the Algonquin Citygate for Boston prices dropped 48 cents to $2.70 per MMBtu. At the Transcontinental Pipeline Zone 6 for New York, prices decreased 14 cents to $2.92 per MMBtu. At the Chicago Citygate prices declined to $2.75 per MMBtu and shale-gas on the Tennessee Zone 4 Marcellus system fell 8 cents to $2.09 per MMBtu.i

FLNG stake transfer

July 13 (LNGJ) - Golar LNG Partners, the Nasdaq-listed US affiliate of the carrier fleet operator Golar LNG Ltd, has completed the acquisition from Golar of a half share in the LNG production vessel, the “Hilli Episeyo”, deployed offshore Cameroon in West Africa. The Golar FLNG hull began its production activities in mid-March 2018 off the port of Kribi in a venture also involving European energy company Perenco and the Cameroon state energy firm ENH. Perenco and Cameroon have an eight-year liquefaction tolling agreement with the “Hilli Episeyo” to process feed-gas from the offshore Sanaga Sud and Ebome gas fields.

Flex LNG carrier

July 12 (LNGJ) - Flex LNG, the Oslo-listed operator of a growing fleet, said it completed a sale-leaseback transaction for the 1740,000 cubic metres capacity carrier, the “Flex Rainbow”, after taking delivery of the vessel from the Samsung Heavy Industries shipyard in South Korea. “The ‘Flex Rainbow’ is the company's fourth LNG carrier on the water while four (other) carriers are currently under construction,” said Flex. The ship has electronically-controlled, gas-injection (MEGI) propulsion provided by German engine-maker MAN Energy Solutions.

Ophir Energy quest

July 12 (LNGJ) - Ophir Energy, a stakeholder in the stalled Fortuna floating LNG project offshore Equatorial Guinea in West Africa, is still looking for a new CEO after the departure of Nick Cooper in May from the UK company. “Our search for a new CEO is making good progress and a number of highly experienced and qualified external candidates have been identified,” said Alan Booth, Interim CEO of Ophir. “The Board will of course provide further updates as and when appropriate,” he added. Booth said that since stepping into the role of interim CEO he had defined several goals, including to “explore every avenue to create value from our Fortuna FLNG project.”

US natural gas demand

July 12 (LNGJ) - Feed-gas for US liquefied natural gas exports is competing with rising domestic demand from natural gas-fired power plants. US electricity generation this summer (June, July, and August) is expected to be close to last year’s summer record, according to the Energy Information Administration. “The share of electricity generation supplied by natural gas-fired power plants has increased over the past decade, while the share supplied by coal has fallen, primarily as a result of sustained low natural gas prices, increases in natural gas-fired capacity and retirements of coal-fired generating capacity,” said the EIA. “Over the three-year period from 2015 to 2017, the cost of natural gas delivered to electric generators averaged $3.16 per million British thermal units (MMBtu), compared with $7.69/MMBtu between 2006 and 2008,” it added.

Asia cargo deliveries

July 11 (LNGJ) - The 217,000 cubic metres capacity Q-Flex vessel “Al Huwaila” will unload a shipment on July 17 at the Himeji terminal in Japan, operated by Kansai Electric, from the Ras Laffan plant in Qatar. The 160,400 cubic metres capacity vessel “Cubal” will deliver a cargo on July 19 to the Chinese Tangshan terminal, operated by PetroChina in the northeast Hebei province, from the Angola plant at the port of Soyo in southwest Africa. The 165,500 cubic metres capacity vessel “Woodside Donaldson” will deliver a shipment on July 19 to the Japanese Hachinohe terminal, owned by JX Nippon Oil, from the Dampier export terminal in Western Australia operated by Woodside Petroleum. The 155,000 cubic metres capacity carrier “British Sapphire” will deliver a cargo on July 28 to the Indian Dahej terminal from the Atlantic LNG plant at Point Fortin in Trinidad. The 173,400 cubic metres capacity carrier “Ribera Del Duero Knutsen” is scheduled to unload a shipment on August 8 at the Dalian terminal in the northeast Chinese province of Liaoning from the Sabine Pass plant in Louisiana.

US LNG fuel ships

July 11 (LNGJ) - MAN Energy Solutions, the German marine propulsion maker, has won an order to equip two LNG-powered containership for US shipping company Pasha Hawaii that operates in US Jones Act trading. MAN, based in Augsburg, Germany, said it would supply a speciality power package in the form of an electronically-controlled, gas-injection (MEGI) engine. The vessels will be constructed at the US Keppel AmFELS shipyard in Brownsville, Texas to Keppel's proprietary design. “With some 200 engines on order or already in service, the ME-GI’s popularity continues to grow,” said MAN Energy. “This is yet another order within the container segment and cements the ME-GI concept,” it added. Doosan Engine will build the main engines in South Korea and the MAN Augsburg works will build the auxiliary engines for delivery in 2019.

Egypt LNG exports

July 10 (LNGJ) - The 155,000 cubic metres capacity carrier “Gaslog Santiago” is scheduled to arrive on July 12 in ballast at the Egyptian export plant at Idku that has been shipping occasional cargoes for Royal Dutch Shell as Egypt ramps up its domestic production. The liquefaction facility at Idku began exporting small volumes of LNG again in late 2016 and through 2017 and early 2018 after operator Shell reached an agreement for limited feed-gas supplies from Egyptian Natural Gas Holding Company. Idku, located east of the port of Alexandria, loaded its first cargo in May 2005.

Equinor trading boost

July 9 (LNGJ) - Equinor, the Norwegian energy company and LNG producer, has acquired energy trading firm Danske Commodities, based in Aarhus in Denmark. The Danish gas and power trading firm has 284 employees. Equinor said that last year Danske Commodities traded 389 terawatt hours of natural gas across 18 countries, around one third of total Norwegian gas production. “Danske Commodities’ trading platform and geographic footprint will support our strategy through leveraging DC’s material trading position in electricity and natural gas,” said Jens Okland, Equinor’s Executive Vice President for Marketing, Midstream and Processing. “Their success has been due to their agility, entrepreneurialism and speed to market. We look forward to welcoming their talented workforce,” added Okland.

US pipelines advance

July 6 (LNGJ) - The Federal Energy Regulatory Commission gave updates on two pipelines to serve LNG export plants. “Corpus Christi Pipeline received authorization to place into service its Corpus Christi Pipeline Project in San Patricio and Nueces Counties, Texas, which will provide 2,250 million cubic feet per day of capacity and bi-directional flow to the proposed Corpus Christi LNG terminal,” said the FERC. Natural Gas Pipeline Company of America (NGPL) has also requested authorization for its Sabine Pass Compression Project, including a 22,490 compressor station in Cameron Parish, Louisiana, and interconnections to its existing lines and laterals, connecting the new compressor station to the Sabine Pass LNG export facility.

LNG ship movements

July 5 (LNGJ) - The 159,980 cubic metres capacity vessel “Yari LNG” was unloading a cargo on June 5 at the Indian Hazira terminal, operated by Shell India, from the Oman LNG plant in the Arabian Peninsula, according to shipping data. The vessel 165,500 cubic metres capacity carrier “Magellan Sprit” is scheduled to lift a cargo on July 7 from the US Dominion Energy Cove Point plant in Maryland. The 141,000 cubic metres capacity carrier “LNG Adamawa” will deliver a shipment on July 18 to Turkey for the Marmara Ereglisi terminal, operated by energy company Botas, from the Nigerian export plant at Bonny Island. The 156,000 cubic metres capacity carrier “Wilforce” will deliver a cargo on July 18 to the Taiwanese Yung-An terminal from the US Sabine Pass plant in Louisiana. The 216,200 cubic metres capacity Q-Flex carrier “Tembek” will deliver a shipment on July 20 to the Thai terminal at Map Ta Phut from Ras Laffan in Qatar. The 155,000 cubic metres capacity vessel “British Sapphire” is scheduled to unload a cargo on July 28 at the Indian Dahej facility from the Caribbean Atlantic LNG plant in Trinidad.

UK cargo due July 20

July 4 (LNGJ) - The 266,000 cubic metres capacity Q-Max carrier “Al Mayeda” will unload a cargo on July 20 at the UK Milford Haven import terminal in Wales from the Ras Laffan plant in Qatar, according to shipping data. The delivery was heading for the UK as the National Balancing Point benchmark natural gas price was at the equivalent of $7.40 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was slightly higher at the equivalent of $7.60 per MMBtu.

Cheniere LNG funds

July 3 (LNGJ) - Cheniere Corpus Christi Holdings, the Cheniere Energy subsidiary overseeing the development of the Texas LNG export plant and associated facility by the Sabine Pass LNG plant owner, has signed an amended banking agreement to raise working capital to $1.2 billion from $850 million. Cheniere said the banking facility would be used for the payment of gas purchases, transportation and storage expenses and the funding of debt service reserves. “Up to $250 million may be used for general corporate purposes and the entire amount of the facility will be available for the issuance of letters of credit,” said Cheniere.

LNG ship movements

July 2 (LNGJ) - The 145,000 cubic metres capacity carrier “Methane Nile Eagle” is lifting a cargo for Asia on July 2 from the Queensland Curtis LNG plant in Queensland, owned by Royal Dutch Shell, according to shipping data. The 147,200 cubic metres capacity vessel “Arctic Princess” will deliver a cargo to the Dutch Gate terminal Rotterdam on July 7 from the Hammerfest plant in Norway operated by Equinor. The 145,000 cubic metres capacity carrier “Milaha Qatar” will deliver a cargo on July 11 to the Adriatic import facility offshore Italy from Ras Laffan in Qatar. The 155,000 cubic metres capacity “Gaslog Singapore” is scheduled to unload a shipment on July 13 in Tokyo purchased by Japanese importer Jera Co. Inc. from the Wheatstone export facility in Western Australia. The 165,500 cubic metres capacity vessel “Meridian Spirit” will deliver a shipment on July 21 to the Indian Dahej terminal from the US Sabine Pass plant in Louisiana.

GNF is now Naturgy

June 29 (LNGJ) - Gas Natural Fenosa, the Spanish utility and LNG market participant with international pipeline networks as well, has changed its name to Naturgy to take on additional challenges. “This new name will cover the company’s businesses in Spain and internationally and the new brand of the parent company will be Naturgy Energy Group S.A,” said Naturgy. Other energy companies have recently rebranded to signal environmental awareness, including Norwegian oil and gas company Statoil that changed its name to Equinor. The new ticker for the Naturgy shares will appear in the Spanish IBEX35 exchange as NTGY. “We are highly aware that the world is changing,” said Chief Executive Francisco Reynes. “The company is not starting from zero. We are already acknowledged as a friendly energy company that is committed to its customers,” added Reynes.

Alaska LNG equity plan

June 29 (LNGJ) - Alaska Gasline Development Corp (AGDC), the state-owned developer of the Alaska LNG export project, is preparing an equity offering and said it was open to engaging with joint venture partners, including international energy companies. Alaska LNG involves an 800-mile pipeline built from the North Slope in Northern Alaska to the site of a proposed liquefaction plant on the Kenai Peninsula with an initial 20 million tonnes per annum of output. The LNG project has informal accords with three potential customers and investors in China. They are China Petroleum and Chemical Corp., known as Sinopec, as an LNG purchaser, Bank of China as a financier and China Investment Corp. as an equity investor.

Hong Kong LNG plan

June 28 (LNGJ) - Japanese shipping company Misui OSK Lines (MOL) signed an accord to deploy a floating storage and regasification unit (FSRU) in Hong Kong to provide supplies for two gas-fired power plants. The company said it planned to deploy the “MOL FSRU Challenger”, the world’s largest FSRU completed in 2017 with a storage capacity of 263,000 cubic metres. The FSRU is expected to enter service around the end of 2020 and will supply the Black Point Power Station located in the New Territories and the Lamma Power Station on Lamma Island to improve air quality and the environment in Hong Kong, which was returned to Chinese sovereignty in 1997 after 156 years of British rule.

LNG cargo deliveries

June 27 (LNGJ) - The 266,000 cubic meters capacity Q-Max vessel “Rasheeda” will deliver a cargo on June 28 to the Chinese Tangshan terminal at Caofeidian Port in northeast Hebei province from Ras Laffan plant in Qatar, according to shipping data. The carrier 177,000 cubic metres capacity “Spirit of Hela” will deliver a shipment on June 29 to the Higashi Oghishima terminal in Japan from Papua New Guinea. The 151,700 cubic metres capacity vessel “Al Areesh” will deliver a Qatargas cargo on June 29 to the Adriatic LNG facility offshore Italy. The 161,880 cubic metres capacity vessel “BW Pavilion Leeara” will deliver a shipment on July 1 to the Manzanillo terminal on the Pacific Coast of Mexico from the Cove Point export plant in Maryland. The 152,300 cubic metres capacity carrier “Seri Begawan” will deliver a cargo on July 3 to the Pengerang regasification terminal in Malaysia from the Gladstone plant in Queensland, Australia. The 148,300 cubic metres capacity vessel “LNG Ondo” will unload a cargo on July 7 at the Huelva facility in southwest Spain from the Nigerian plant at Bonny Island. The 173,400 cubic metres capacity carrier “Flex Endeavour” will deliver a shipment from Qatar on July 7 to the Zeebrugge terminal in Belgium.

Freeport LNG sales

June 26 (LNG) - Freeport LNG, the US export plant being constructed on Quintana Island in Texas, has signed a binding mid-term sales and purchase agreement with global commodities trading company Trafigura for 500,000 tonnes per annum over three years from July 1, 2020. The plan's first three Trains will be brought on stream in sequence, between the end of 2018 and the third quarter of 2019, giving around 15.3 MTPA of output. About 13.4 MTPA of capacity from the first three Trains has been contracted to European and Japanese contract holders, BP of the UK, Germany’s Uniper and Japan’s Jera Co. Inc. and Osaka Gas. The Texas venture, led by US energy entrepreneur Michael Smith, has also entered the authorization process of the Federal Energy Regulatory Commission to construct a fourth Train with 5.1 MTPA of output and with operations starting as early as 2022.

Rhode Island LNG

June 26 (LNGJ) - The US Federal Energy Regulatory Commission has prepared an environmental assessment for the Fields Point liquefaction project at an existing storage facility at Providence, Rhode Island. The project is being developed by the US subsidiary of the UK’s National Grid, which has pipeline and supply operations in the US Northeast. The liquefaction train, including heat exchangers cooled by a closed-loop nitrogen refrigeration cycle, is part of an improvement project for an existing peak-shaving facility to guarantee supplies during peak demand periods in the winter. “LNG is crucial to meeting the demand for gas on the coldest winter days,” said the UK-based company. “The facility has been located here to provide safe and reliable service to customers for over 40 years,” it added.

GTT LNG tank order

June 26 (LNGJ) - French maritime LNG storage tank technology company GTT received an order from South Korean shipbuilder Samsung Heavy Industries to equip a new LNG carrier with the GTT Mark III Flex membrane containment system. The tanks will be installed on a 180,000 cubic metres capacity vessel ordered by Monaco-based LNG fleet owner GasLog and scheduled for delivery in the third quarter of 2020. “We are very pleased with this order, which celebrates the quality of our relationship with these major players in the shipping industry,” said Philippe Berterottiere, GTT Chairman and Chief Executive. “The choice, once again, of our Mark III Flex technology shows that this system perfectly matches the current needs of the market,” added the CEO.

LNG ship movements

June 26 (LNGJ) - The 171,800 cubic metres capacity carrier “Stena Clear Sky” will lift a cargo on July 1 from the Sabine Pass plant in Louisiana, owned by Cheniere Energy, according to shipping data. The 160,000 cubic metres capacity vessel “Arctic Aurora” will deliver a shipment on July 3 to the import facility in the Mediterranean island state of Malta from the Hammerfest plant in Norway, operated by Equinor. The 210,000 cubic metres capacity Q-Flex vessel “Al Khattiya” is scheduled to unload a shipment on July 8 at the Portuguese import terminal at Sines from the Ras Laffan plant in Qatar. The 261,700 cubic metres capacity Q-Max carrier “Lijmiliya” will unload a Qatargas shipment on July 8 at the South Korean Incheon terminal. The 165,000 cubic metres capacity carrier “Marib Spirit” will deliver a cargo on July 12 to the Kuwaiti Mina Al Ahmadi import facility from the Nigerian export plant at Bonny Island. The 165,500 cubic metres capacity vessel “Meridian Spirit” is scheduled to deliver a cargo on July 21 to the Dahej terminal in India, owned by Petronet, from the US Sabine Pass plant.

KBR at Oman LNG

June 25 (LNGJ) - US engineering company KBR was awarded a project management consultancy services contract by Oman LNG for a new 120 megawatts gas engine power plant aimed at reducing fuel gas consumption and emissions while maintaining LNG output at the liquefaction Trains located in the port of Sur. Under the terms, KBR will assist Oman LNG in the selection and management of the successful engineering, procurement and construction contractor for the project over a three year period. “We are proud of the pivotal role that KBR has played in the development of this project during the pre-FEED and FEED phases and are excited to continue to grow our substantial presence in the Middle East,” said Jay Ibrahim, KBR regional President.

Alaska gas pipeline

June 25 (LNGJ) - Alaska Gasline Development Corp., the state body leading the Alaska LNG project, said the US Army Corps of Engineers has released a final environmental impact statement for Alaska’s stand-alone pipeline project. The Alaska pipeline will be 733 miles long and connect a conditioning facility at Prudhoe Bay in North Alaska to the city of Fairbanks. Design work began in 2010 to address potential gas shortages in Alaskan towns and cities. “The project is the culmination of extensive engineering and environmental work conducted under the management of AGDC,” said AGDC President Keith Meyer. The pipeline approval is separate from the proposed larger diameter pipeline and export facility for Alaska LNG. “The AGDC elected to continue to pursue the pipeline regulatory process to completion to have an assured alternative to provide gas to Alaskan communities, and to help expedite approval of Alaska LNG,” added Meyer.

US exports rise

June 22 (LNGJ) - US LNG exports increased to five cargoes in the past week versus four shipments the previous week. Carriers carrying a combined 18.7 billion cubic feet of natural gas departed from the United States from June 14 through June 21. Three carriers left from the Sabine Pass plant in Louisiana and two from the Cove Point terminal in Maryland. according to the Energy Information Administration. Spot prices rose at most locations, with the benchmark Henry Hub at $2.95 per million British thermal units. “Most areas east of the Mississippi River were warmer, with parts of the East Coast averaging up to 10 degrees Fahrenheit higher,” said the report. Total US natural gas consumption, led by electrical power generation needs, rose by 4 percent. “Net injections to working gas totaled 91 Bcf for the week. Working natural gas stocks are 2,004 Bcf, which is 27 percent lower than the year-ago level and 20 percent lower than the five-year average,” said the EIA.  

Cove Point pricing

June 21 (LNGJ) - The Intercontinental Exchange (ICE), the leading operator of commodities, futures and share trading platforms, has launched a physical trading product to reflect the change at the Dominion Energy Cove Point LNG facility in Maryland from an import terminal to an export plant. The new Dominion Energy Cove Point product reflects the physical market for natural gas deliveries into the plant for liquefaction and export. The previous Cove Point market, which had been set up for receiving natural gas from LNG imports, was delisted simultaneously by the ICE. The new Cove Point price was last at $3.110 per million British thermal units.

Croatian gas deal

June 21 (LNGJ) – Future LNG importer Croatia has purchased control of nine Northern Adriatic and Marica area gas fields offshore the Balkan state from Italian energy company Eni. The Croatia state-backed company INI has agreed to buy Eni Croatia BV and become the 100 percent owner and sole operator of the fields. The transaction covers production of almost 380,000 cubic metres per day of gas and marks Eni’s exit from Croatian exploration and production. Eni and INA had previously worked in a 50-50 joint venture since 1996 under a production-sharing agreement with the Croatian government. Eni said the sale of gas to Italy from the Marica area would continue under a commercial agreement. Other stakeholders in INA are the Croatian government with 44.8 percent and private and institutional investors with just over 6 percent. The Hungarian MOL energy group owns 49.1 percent of INI.

Cargo delivery schedule

June 20 (LNGJ) - The 147,000 cubic metres capacity carrier “Dapeng Moon” will unload a shipment on June 22 at the Chinese Shenzhen Diefu terminal in southern Guangdong province from the Dampier export facility of Woodside Petroleum in Western Australia, according to shipping data. The 210,100 cubic metres capacity Q-Flex carrier “Al Ruwais” will deliver a cargo on June 26 to the Indian Hazira terminal, operated by Shell India, from the Ras Laffan plant in Qatar. The 176,300 cubic metres capacity vessel “Rioja Knutsen” will deliver a Nigerian shipment on June 29 to the Dahej terminal in India, owned by Petronet. The 160,000 cubic metres capacity “Asia Endeavour” will unload a cargo on July 4 at the South Korean Boryeong terminal, owned by SK and GS Energy, from the Chevron-operated Wheatstone export plant in Western Australia. The 170,000 cubic metres capacity carrier “Sonangol Sambizanga” will deliver a shipment on July 9 to the Mina Al Ahmadi import facility in Kuwait from Angola in southwest Africa. The 156,000 cubic metres capacity vessel “Wilforce” will unload a shipment on July 18 at the Yung-An import terminal in Taiwan from the Sabine Pass plant in Louisiana, owned by Cheniere Energy.

LNG cargo deliveries

June 19 (LNGJ) - The 155,000 cubic metres caapcity vessel “Gaslog Saratoga” will deliver a cargo on June 22 to the Tong-Yeong import terminal in South Korea, operated by Korea Gas Corp., from the Gorgon plant on Barrow island in Western Australia, according to shipping data. The 147,200 cubic metres capacity carrier “Arctic Princess” will deliver a cargo on June 24 to the Bilbao import terminal in northwest Spain from the Hammerfest plant in Norway operated by Equinor. The 172,000 cubic metres capacity vessel “Boris Vilkitsky” will deliver a shipment on June 25 to the French Montoir-de-Bretagne terminal on the Atlantic coast from the Russian Yamal plant in Siberia. The 137,230 cubic metres capacity vessel “LNG Sokoto” will unload a cargo on June 25 at the Marmaris Ereglisi import terminal in Turkey from the Nigeria plant on Bonny Island.

Egypt-Morocco gas

June 18 (LNG) - SDX Energy Inc., the UK-based exploration company, has made another natural gas discovery in Egypt at its South Disouq concession. The well was drilled to a total depth of 7,806 feet and encountered 89 feet of net conventional natural gas pay. SDX also completed a test programme at its LMS-1 well in the Lalla Mimouna Nord permit in Morocco. Egypt is seeking to end LNG imports amid abundant domestic gas supply while Morocco has one LNG import project in development. “Overall we are very pleased with our recent drilling activity. In Morocco we had seven successful results from our nine well program and in Egypt we have had three successes out of the four wells drilled,” said SDX Chief Executive Paul Welch. “I am looking forward to updating our shareholders on the well test results and progress we are making on our development activity,” he added.

US weekly exports fall

June 15 (LNGJ) - US LNG exports decreased to four cargoes in the past week versus six shipments the previous week. Carriers carrying a combined 14.6 billion cubic feet of natural gas departed from the Sabine Pass plant in Louisiana and none left from Cove Point in Maryland, according to the Energy Information Administration. Spot prices rose at most locations, with the benchmark Henry Hub at $2.94 per million British thermal units. “Citygate prices in California rose with increased electricity demand because of warmer weather,” said the report. The price for next-day delivery at the SoCal Citygate increased 54 cents to $3.36 per MMBtu. Northeast prices were mixed. “At the Transcontinental Pipeline Zone 6 trading point for New York City, prices increased 12 cents to $2.79/MMBtu,” said the EIA. Natural gas stocks were at 1,913 Bcf after weekly net injections of 96 Bcf. The stocks are 29 percent lower than a year ago and 21 percent below the five-year average for the week.

Mozambique survey

June 14 (LNGJ) - The French firm Compagnie Generale de Geophysique (CGG) has completed a 15,400 square kilometres 3D marine seismic survey in the deepwater Zambezi Delta Basin offshore central Mozambique to help in future energy block auctions. The southeast African nation is currently developing two LNG export projects for its Rovuma Basin natural gas reserves of an estimated 70 trillion cubic feet and more resource exploration licenses will be issued for other areas. The CGG survey covers blocks Z5-C and Z5-D and surrounding non-held acreage in the Mozambique Channel. It follows an agreement reached between CGG and Mozambique’s National Petroleum Institute (INP) to examine the hydrocarbon potential of the Zambezi Delta.

Magnolia LNG boost

June 13 (LNGJ) - LNG Ltd, the Australian-based developer of the Magnolia LNG project in Louisiana and the Canadian Bear Head venture in Nova Scotia, has completed a share placement with a new Chinese investor, IDG Energy Investment Group. The shares of LNG Ltd are listed on the Australian Securities Exchange and the share placement with IDG raised A$28.2 million (US$21.5M). IDG was formerly known as Shun Cheong Holdings and is registered in Bermuda as well as being quoted on the Hong Kong stock exchange. LNG Ltd said the proceeds from the placement would be used to support offtake marketing efforts, focused on Magnolia LNG, and for general corporate purposes.

Cargo for UK June 15

June 12 (LNGJ) - The 266,000 cubic metres capacity Q-Max carrier “Bu Samra” will unload a cargo on June 15 at the UK Milford Haven import terminal in Wales from the Ras Laffan plant in Qatar, according to the port authorities. The delivery was heading for the UK as the National Balancing Point benchmark natural gas price was at the equivalent of $7.45 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was slightly lower at the equivalent of $7.40 per MMBtu.

LNG ferries for BC

June 12 (LNGJ) - The American Bureau of Shipping said that the “Spirit of British Columbia”, one of two ferries classed by ABS that will use LNG as fuel, has completed its conversion and is back in operation for BC Ferries of Canada. “The conversion of these vessels to operate on LNG is an important milestone for BC Ferries and the region, supporting more efficient and environmentally-friendly transportation,” said ABS Vice President for Global Gas Solutions, Patrick Janssens. “With the increased pressure for environmental compliance, LNG as fuel is a practical option for many marine owners and operators,” added Janssens. ABS said the “Spirit of British Columbia” was the first to undergo conversion while its sister vessel, the “Spirit of Vancouver Island”, is expected to complete its conversion in the first quarter of 2019 at the Remontowa Ship Repair Yard in the Polish port of Gdansk.

LNG cargo deliveries

June 11 (LNGJ) - The 216,200 cubic metres capacity Q-Flex carrier “Tembek” was unloading a cargo on June 11 at Poland’s Swinoujscie import terminal on the Baltic coast from Ras Laffan in Qatar, according to shipping data. The 145,000 cubic metres capacity vessel “Ejnan” will deliver a cargo on June 15 to the Barcelona terminal in northeast Spain from Qatar. The 177,000 cubic metres capacity vessel “Gigira Laitebo” will unload a shipment on June 17 at the Chinese Tianjin terminal in the northeast province of Hebei province from the Papua New Guinea plant. The 210,100 cubic metres capacity carrier “Umm Al Amad” will deliver a Qatargas cargo on June 20 to the Chinese Shanwei terminal in the southern Guangdong province. The 172,636 cubic metres capacity vessel “Fedor Litke” will unload a shipment on June 21 at the Mugardos terminal near the northwest Spanish port of El Ferror from the Yamal plant at Sabetta port in Russia.

US LNG exports rise

June 8 (LNGJ) - US LNG exports rose in the past week as six carriers departed with total cargoes of 21.8 billion cubic feet compared with four shipments the previous week. Four carriers left Cheniere Energy’s Sabine Pass export plant in Louisiana between May 31 through June 6, while two vessels departed from the Cove Point facility in Maryland owned by Dominion Energy, according to the weekly report of the US Energy Information Administration. One other tanker was lifting a cargo on June 7 at the Sabine Pass plant. The EIA said spot US natural gas prices were mixed with the benchmark Henry Hub rising to around $2.85 per million British thermal units. At the Pacific Gas and Electric Citygate in Northern California prices fell 8 cents to $2.95 per MMBtu. At the Algonquin Citygate, which serves the Boston area, prices declined 3 cents to $2.51 per MMBtu. Shale-gas prices were also mixed. At Dominion South in northwest Pennsylvania prices fell 4 cents to $2.36 per MMBtu.

PNG LNG well test

June 7 (LNGJ) - Oil Search, the Australian-listed company with a stake in the Papua New Guinea LNG plant, has completed work at the Kimu II gas well to test the potential resource upside for possible inclusion in the PNG expansion project. “Kimu II reached a total depth of 1,943 metres. The well successfully encountered gas in the target Alene reservoir,” said Oil Search. “The provisional interpretation at this location is that it has similar reservoir properties to Kimu 1. Evaluation of the well data acquired has now commenced and will be used to help assess options for the potential commercialisation of the Kimu field,” the company added.

TechnipFMC contract

June 6 (LNGJ) - TechnipFMC, the energy project engineering company, was awarded a contract by Australian LNG operator Woodside Petroleum to upgrade the water treatment system for the Pluto platform offshore Western Australia. Woodside is the operator of two onshore liquefaction and export plants, the North West Shelf plant and Pluto LNG, and both are served by offshore feed-gas resources. “The contract includes the engineering, procurement, construction, installation and commissioning of the Pluto water handling module. This module, to be installed on the existing Pluto Alpha Gas Production Platform, will consist of facilities for water separation and treatment, together with upgraded power generation units,” said TechnipFMC.

LNG ship movements

June 6 (LNGJ) - The 210,100 cubic metres capacity vessel “Al Ghariya” is unloading a Qatargas cargo on June 6 at the Dapeng import terminal in the southern Chinese province of Guangdong and operated by China National Offshore Oil Corp. The 174,000 cubic metres capacity carrier “Gaslog Greece” will lift a cargo on June 8 from the US Sabine Pass plant in Louisiana, owned by Cheniere Energy. The 216,000 cubic metres capacity vessel “Al Hamla” will unload a Qatari shipment on June 9 at the Japanese Himeji terminal. The 165,000 cubic metres capacity “LNG Fukurokuju” will deliver a shipment on June 17 to the Chinese Dalian terminal in the northeast province of Liaoning  from the Australia Pacific LNG plant in Queensland. The 141,000 metres capacity carrier “LNG River Niger” will deliver a cargo on June 23 to the Indian Hazira terminal, operated by Shell India, from the Bonny Island plant in Nigeria.

June cargo deliveries

June 5 (LNGJ) - The 154,900 cubic metres capacity carrier “Trinity Arrow” will deliver a shipment on June 5 to the Zeebrugge terminal in Belgium from the Ras Laffan plant in Qatar. The 210,100 cubic metres capacity Q-Flex vessel “Fraiha” will deliver a Qatargas shipment on June 7 to the Aliaga facility near Izmir in Turkey. The 155,000 cubic metres capacity vessel “British Ruby” will deliver a cargo on June 9 to the Pakistani Port Qasim import facilities near Karachi from the Trinidad plant at Point Fortin in the Caribbean. The 147,200 cubic metres capacity carrier “Arctic Princess” will unload a shipment on June 10 at the Baltic port of Klaipeda in Lithuania from the Hammerfest plant in Norway, operated by Equinor. The 160,400 cubic metres capacity carrier “Soyo” will unload a shipment on June 12 at the Indian Hazira terminal, operated by Shell India, from the Angola plant in southwest Africa. The 176,800 cubic metres vessel “LNG Lagos II” is scheduled to unload a shipment on June 25 at the Map Ta Phut terminal in Thailand from the Nigerian export plant on Bonny Island.

Cargo for UK June 8

June 4 (LNGJ) - The 210,185 cubic metres capacity Q-Flex carrier “Al Bahiya” will unload a cargo on June 8 at the UK Milford Haven import terminal in Wales from the Ras Laffan plant in Qatar, according to the port authorities. The delivery was heading for the UK as the National Balancing Point benchmark natural gas price was at the equivalent of $7.60 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was slightly lower at the equivalent of around $7.45 per MMBtu.

US LNG exports fall

June 1 (LNGJ) - US LNG exports decreased last week as four carriers departed with cargo capacity of 14.4 billion cubic feet compared with five shipments the previous week. The carriers left the Sabine Pass export plant in Louisiana between May 24 through May 30, while another vessel was preparing to lift a cargo from the Cove Point facility in Maryland owned by Dominion Energy, according to the weekly report of the US Energy Information Administration. The EIA said spot natural gas prices fell across the Lower 48 states with the benchmark Henry Hub dropping to around $2.83 per million British thermal units. At the Chicago Citygate, prices declined to $2.66 per MMBtu and prices at Pacific Gas and Electricity Citygate in Northern California were also down at around $3.03 per MMBtu. Shale-gas prices at Dominion South in northwest Pennsylvania rose 17 cents from $2.23 per MMBtu to $2.40 per MMBtu.

Hoegh profits rise

May 31 (LNGJ) - Hoegh LNG posted improved first-quarter earnings of $38.1 million compared with $36.7M in the same quarter of 2017, while net profits amounted to $13.2M versus $11.4M in the same three months of the last year. “We are pleased to deliver another quarter with strong operational results,” said President and Chief Executive Sveinung J. S. Stohle. “Our eighth FSRU, ‘Hoegh Esperanza’, was delivered in April and is now set to start a three-year time charter,” added the CEO. “Meanwhile, we continue to compete for the most attractive FSRU projects for our two uncommitted newbuildings,” said Stohle. The “Hoegh Esperanza” was vetted for LNG trading and entered a spot charter under which it loaded its maiden cargo on 21 May 2018 at the Queensland Curtis LNG plant in Australia. Hoegh said the charter for “Hoegh Esperanza” would ensure a minimum utilisation of the unit in FSRU mode and for the balance of the year it would be in conventional LNG carrier mode.