A supply surplus remains in the LNG market overall, though in the past two years there has been robust demand in emerging countries for spot volumes. This is causing spot prices to remain high as China will continue to be a key destination for shipments in the Northern Hemisphere winter.
About 290 million tonnes of LNG imported last year was transacted on a spot or short-term basis. The definition of spot or short-term transaction is “volume delivered under contracts with a duration of 4 years or less.”
Despite the positive recent developments and future outlook, natural gas has arguably not yet achieved the most optimistic growth projections.
Asia-Pacific spot liquefied natural gas prices have retreated recently, through the combination of rapid demand growth in China, coupled with insufficient facilities for seasonal gas storage, is expected to maintain upward pressure on the spot market during the Northern Hemisphere winters.
If the Mediterranean Sea becomes an Emissions Control Area (ECA) countries on its coastlines will have to prepare assets that will provide the fuel to conform with regulations.
Among the large volume LNG production facilities that have been proposed recently, some owners favor multiple mid-scale trains, while others lean toward the more traditional large-scale trains to meet similar production requirements.
Two factors have recently had a positive influence on the demand in the floating storage regasification unit (FSRU) market.
Sept 21 (LNGJ) – US liquefied natural gas exports decreased by one shipment on the week to five cargoes, four from the Sabine Pass plant in Louisiana and one from Cove Point in Maryland. Three more carriers were lifting cargoes, two at Sabine and one at Cove Point. “Cove Point LNG facility received an LNG vessel on September 16, two days after the landfall of Hurricane Florence in North Carolina,” noted the weekly report from the Energy information Administration. US domestic natural gas prices rose with the benchmark Henry Hub spot price increasing 13 cents to $3.06 per million British thermal units, its highest since the end of January 2018 when prices averaged $3.21 per MMBtu. Other price increases were logged at the Chicago Citygate at $3.00 per MMBtu and at the Algonquin Citygate serving the Boston area where prices were 16 cents higher at $2.91 per MMBtu. Appalachian prices in shale-gas basins also rose, with the Tennessee Zone 4 Marcellus spot price up 36 cents to $2.55 per MMBtu.
Sept 20 (LNGJ) - Woodside Energy Trading, a unit of the Australian liquefied natural gas producer based in Singapore, said it signed a preliminary agreement with Germany energy company Uniper for the supply of up to 600,000 tonnes of LNG.The Australian company, operator of the North West Shelf and Pluto LNG plants in Western Australia and a stakeholder in the Chevron-operated Wheatstone plant, said the heads of agreement was for a period of four years starting from 2019. The LNG would be supplied from Woodside’s Asia-Pacific portfolio to Uniper subsidiary Uniper Global Commodities for buyers in Europe and Asia. Woodside said the accord was conditional on the execution of a fully termed LNG sales and purchase agreement.
Sept 20 (LNGJ) - Wison Offshore and Marine of China said its 300-megawatt floating storage, regasification and power generation barge that will use regasified LNG has been approved by Lloyd's Register, the UK maritime classification society. “With a total storage capacity of 170,000 cubic metres in GTT membrane cargo tanks, it can receive full cargoes, keeping the cost of LNG supply low,” said Wison. “LNG will be loaded through a ship-to-ship transfer and regasified, feeding the gas turbines. Waste heat from the turbines is recovered to generate steam, which in turn feeds the steam turbine generator. Electric power is stepped up to high voltage before transmission to shore,” explained Wison.
Sept 19 (LNGJ) - Russian natural gas and LNG producer Novatek has boosted the changes of its Arctic II LNG joint venture progressing by making two new discoveries in the Utrenneye field in the Gydan Peninsula in Siberia. The existing Yamal LNG plant operator said the discoveries are estimated at 405 billion cubic metres of natural gas and 40 million tons of gas condensate and would further underpin a new liquefaction and export plant in the region. The resources are within the Utrenneye licence area owned by the Arctic LNG II project. “The new deposits expand the reserve potential of the field and open additional opportunities for implementing the Arctic LNG II project,” said Novatek Chairman Leonid Mikhelson.
Sept 18 (LNGJ) - Spanish engineering company Sener has signed a contract with Venice-based Italian port and services company Rimorchiatori Riuniti Panfido to deliver basic engineering and technical assistance in the construction of a liquefied natural gas barge transporter to operate in the Adriatic. Panfido is a leading tug and barge owner in Europe and the barge transporter project is co-funded by the European Union. Sener said the unit’s design is a combination of an LNG-fueled tractor tug and an LNG bunkering non-propelled pontoon with 4,000 cubic metres capacity. The deal is one of many contracts being announced this week at the Gastech 2018 exhibition and conference in the Spanish city of Barcelona.
Sept 18 (LNGJ) - The 210,000 cubic metres capacity Q-Flex carrier “Al Kattiyah” will deliver a cargo on September 20 to the Dutch Gate terminal in Rotterdam from the Ras Laffan plant in Qatar, according to the shipping data. The 173,400 cubic metres capacity vessel “Ribera del Duero Knutsen” will deliver a shipment on September 20 to the Mexican Manzanillo terminal on the Pacific Coast from the US Sabine Pass plant in Louisiana. The 174,900 cubic metres capacity carrier “LNG Abuja II” will deliver a cargo on September 27 to the French Montoir-de-Bretagne terminal from the Bonny Island plant in Nigeria. The 174,100 cubic metres capacity carrier “Cesi Lianyungang” will unload a shipment on September 27 at the Zhuhai terminal owned by China National Offshore Oil Corp. from the Gladstone export facility in Queensland. The 160,000 cubic metres capacity carrier “Arctic Aurora” will unload a cargo on September 30 at the Mina Al-Ahmadi facility in Kuwait from the Hammerfest plant in Norway operated by Equinor. The 217,000 cubic metres capacity Q-Flex vessel “Al Huwaila” will deliver a Qatargas shipment on October 5 to the Chinese Qidong terminal in southeast Jiangsu province.
Sept 17 (LNGJ) - Pieridae Energy of Canada, developer of the Goldboro LNG export project in the Atlantic coast province of Nova Scotia to supply German customers, has named Melanie Litoski as its Chief Financial Officer from the start of October. Litoski succeeds Mario Racicot who has just retired from the post. Alfred Sorensen, Chief Executive of Pieridae and who is himself a chartered accountant, said he would assume the responsibilities of the CFO during the interim period until September 30. “We are pleased to welcome Melanie to our leadership team. She has extensive financial, operational and strategic experience which will be instrumental in advancing the upcoming phases of our projects,” said Sorensen.
Sept 17 (LNGJ) - With about a dozen new liquefied natural gas supply projects under serious development, particularly on the Gulf Coast of the US, there have been 33 new LNG carriers ordered so far this year, mostly from shipyards in South Korea. That newbuild total compares with 19 LNG vessels ordered in the whole of 2017 and six the previous year. “Owners have been tempted by higher spot and short-term charter rates, still-low newbuilding prices and rapidly growing LNG trade,” according to a report from energy consultants Wood Mackenzie. It said that new LNG supply was being absorbed far more easily than many expected by booming demand in Asia. Wood Mackenzie currently forecasts that 114 million tonnes per annum of new LNG capacity would take final investment decisions between 2018 and 2021. However, the report said these pre-FID projects would not provide any new LNG to the market until at least 2023.
Sept 14 (LNGJ) - US LNG exports were steady in the week as six vessels departed compared with five the previous week. Four ships left Sabine Pass in Louisiana and two departed from Cove Point in Maryland. Two more carriers were lifting cargoes from Sabine Pass, according to the Energy Information Administration weekly report. “Dominion Energy, the operator of the Cove Point plant, activated a Severe Weather Plan in response to approaching Hurricane Florence,” said the EIA. The report noted that total US consumption of natural gas fell by 1 percent on the week and pipeline exports to Mexico decreased 7 percent. The Henry Hub spot price was last at $2.93 per million British thermal units. “Temperatures were cooler than normal across most of the country, but slightly warmer than normal west of the Rockies and in the Southeast,” said the report. At the Chicago Citygate, spot natural gas prices decreased 15 cents to $2.72 per MMBtu. California prices also fell to around $3.09 per MMBtu on the Pacific Gas and Electric citygate.
Sept 13 (LNGJ) – The 160,500 cubic metres capacity vessel “Sonangol Benguela” will unload a shipment on September 15 at the Tong-Yeong terminal in South Korea from the Angolan liquefaction plant at Soyo in southwest Africa. The 160,400 cubic metres capacity vessel “Cubal” is scheduled to unload a cargo from Angola on September 22 at the Yung-An terminal in Taiwan. The 155,000 cubic metres capacity vessel “British Ruby” will deliver a cargo on September 22 to the Map Ta Phut terminal in Thailand from Atlantic LNG plant in Trinidad. The 161,880 cubic metres capacity vessel “BW Pavilion Vanda” will deliver a cargo on September 18 to the South Korean Boryeong terminal, reloaded from Singapore. The 171,800 cubic metres capacity vessel “Papua” will deliver a shipment on September 21 to the Qingdao terminal, owned by Sinopec, in northeast Shandong province from Papua New Guinea. The 145,000 cubic metres capacity carrier Methane Heather Sally will deliver a shipment on September 30 to the Chinese Zhoushan terminal, operated by Enn Group, in eastern Zhejiang province, from Ras Laffan in Qatar.
Sept 12 (LNGJ - The 145,000 cubic metres capacity vessel “Seri Angkasa” is scheduled to deliver a cargo on September 13 to Brazil, reloaded at the Zeebrugge terminal in Belgium on August 26, according to shipping data. The 160,000 cubic metres capacity carrier “Cool Runner” will unload a shipment on September 14 at the Salvador import facility in the northeast Brazilian state of Bahia, reloaded from the Cartagena regasification terminal in Spain on August 23. The 155,000 cubic metres capacity vessel “Tangguh Hiri” will deliver a shipment on September 15 to the Chinese Tangshan terminal at Caofeidian Port in northeast Hebei province from the Gorgon plant on Barrow Island in Western Australia. The 153,000 cubic metres capacity carrier “Gaslog Chelsea” will unload a cargo on September 16 at the Pyeong-Taek terminal in South Korea from the Wheatstone plant operated by Chevron in Western Australia. The 155,900 cubic metres capacity carrier “Clean Planet” will deliver a cargo on September 17 to the Belgian Zeebrugge terminal from the Yamal plant in Russia. The 137,230 cubic metres capacity carrier “LNG Rivers” will deliver a shipment to the Spanish port of Bilbao September 25 from the Bonny Island plant in Nigeria.
Sept 11 (LNGJ) - The 140,000 cubic metres capacity carrier “Arctic Voyager” will deliver a cargo on September 12 to the Dutch gate terminal in Rotterdam from the Hammerfest plant in Norway, operated by Equinor. The 210,100 cubic metres capacity carrier “Al Ruwais” will unload a cargo on September 13 at the Hazira terminal near Mumbai, operated by Shell India, from Ras Laffan in Qatar. The 141,000 cubic metres capacity carrier “LNG Adamawa” will unload a shipment on September 16 at the Portuguese Sines terminal from the Bonny Island plant in Nigeria. The 160,000 cubic metres capacity vessel “Asia Vision” will unload a cargo on September 18 at the Incheon terminal in South Korea from the Wheatstone export plant in Western Australia operated by Chevron. The 141,000 cubic metres capacity vessel “LNG Cross River” will deliver a Nigerian cargo on September 19 to the Indian Dahej terminal, operated by Petronet. The 155,000 cubic metres capacity “British Sapphire” will deliver a shipment on September 22 to the Singapore import terminal on Jurong Island from Atlantic LNG in Trinidad.
Sept 11 (LNGJ) - Gaztransport and Technigaz (GTT), the French LNG storage tank technology firm, said it received an order from Hyundai Heavy Industries of South Korea to design tanks for four new LNG carriers to be built for the Greek shipowner Capital Gas Carriers, a subsidiary of the Capital Group of Evangelos Marinakis. GTT said its Mark III Flex technology had been selected for the tanks on the four ships, each with 174,000 cubic metres of capacity. The delivery of the vessels is scheduled for between the end of 2020 and mid-2021. “We are pleased with the long-term partnership of excellence developed with HHI,” said Philippe Berterottiere, Chairman and Chief Executive of GTT. “This new order represents a major project to which we are proud to contribute,” he added.
Sept 10 (LNGJ) - The Egyptian Zohr natural gas field in the East Mediterranean, which is allowing Egypt to cease LNG imports, has reached new high production levels of 2 billion cubic feet per day and higher rates are expected in 2019. “This outstanding result has been achieved only a few months after the first gas in December 2017 and one year before the schedule of the plan of development,” said Italian energy company Eni, the field operator. “The latest achievement reinforces the exceptional development path of the Zohr project, one of Eni’s seven record-breaking projects, which is playing a fundamental role in supporting Egypt’s independence from LNG imports,” said Eni. “Eni, its partner, Egyptian Natural Gas Holding Company (EGAS) and their joint venture company Petrobel aimed to reach a plateau in excess of 2.7 bcf per day in 2019,” added Eni.
Sept 7 (LNGJ) - US LNG exports declined in the past week to five shipments from seven the previous week. All five cargoes departed from the Sabine Pass liquefaction plant in Louisiana, while no vessels were loaded at the Dominion Energy facility at Cove Pont in Maryland. According to the Energy Information Administration natural gas report, the total US supply of domestic natural gas remained the same as in the previous week, averaging 87.9 billion cubic feet per day. Average net weekly imports from Canada decreased by 7 percent. “Overall demand is down with decreases in the electric power sector,” said the EIA. Total US consumption of natural gas fell by 2 percent on the week while natural gas exports to Mexico increased by 2 percent. Henry Hub spot natural gas prices edged lower from $2.96 per million British thermal units to $2.94 per MMBtu. The Tennessee Zone 4 Marcellus spot price for shale gas increased from $2.36 per MMBtu to $2.49 per MMBtu.
Sept 6 (LNGJ) - Rolls-Royce has launched its latest in a series of liquefied natural gas-fuelled marine engines at the international maritime exhibition in the German port city of Hamburg. The company said power output of the LNG-fuelled B36:45 engine is identical to that of the liquid-fuelled B33:45 at 600kW per cylinder at 750 revs per minute. “This new engine builds on the success of the Bergen B35:40-series engine and offers a variety of new benefits to our customers, including rapid response to changes in load and speed, high reliability and clean burning,” said Kjell Harloff, Senior Vice President for Rolls-Royce Commercial Marine Engines.
Sept 6 (LNGJ) - Equinor of Norway, the state-controlled energy company whose assets include the main natural gas pipeline supplies to Europe from the Norwegian Continental Shelf, has carried out a capital markets transaction for US$1 billion. The company, also the owner of the Hammerfest LNG export plant in northern Norway, sold the 10-year Notes at 3.625 percent and the offering was fully subscribed. “The net proceeds from the issue of the Notes will be used for general corporate purposes which may include repayment or purchase of existing debt or other purposes. The transactions will increase the financial flexibility of the company,” said Equinor.
Sept 5 (LNGJ) - Hoegh LNG has entered into a time charter contract with Naturgy Energy Group of Spain, formerly Gas Natural Fenosa, for its ninth floating storage and regasification unit. The 15-month time charter commences in December 2018, immediately after the delivery of the unit and a positioning voyage from Hyundai Heavy Industries in South Korea. “We are pleased to further develop our strong relationship with Naturgy, a highly reputable and ambitious LNG portfolio player and a long-time business partner of Hoegh LNG,” said Sveinung J.S. Stohle, President and Chief Executive of Hoegh. “ This charter party will cover the period from delivery until planned start-up for prospective FSRU projects, and it further demonstrates once again the premium trading qualities of our FSRUs,” stated Stohle.
Sept 5 (LNGJ) – The 145,000 cubic metres capacity carrier “Ejnan” was unloading a cargo on September 5 at the Adriatic LNG facility offshore northeast Italy from the Ras Laffan plant in Qatar, according to shipping data. The 210,100 cubic metres capacity Q-Flex carrier “Al Sheehaniya” will unload a Qatargas shipment on September 6 at the Swinoujscie terminal on the Baltic Coast of Poland. The 172,636 cubic metres capacity carrier “Fedor Litke” is scheduled to arrive on September 9 at the Zeebrugge terminal in Belgium with a shipment from the Yamal plant in Russia. The 145,000 cubic metres capacity vessel “Al Thakhira” will deliver a Qatargas cargo on September 10 to the Barcelona terminal in northeast Spain. The 137,230 cubic metres capacity vessel “LNG Sokoto” will unload a cargo on September 13 at the Portuguese Sines terminal from the Bonny Island plant in Nigeria.
Sept 4 (LNGJ) – The 177,000 cubic metres capacity vessel “Gigira Laitebo” was unloading a cargo on September 4 at the Qingdao terminal in eastern Shandong province from the ExxonMobil-operated Papua New Guinea plant, according to shipping data. The 148,470 cubic metres capacity carrier “LNG Kano” will unload a shipment on September 12 at the Japanese Joetsu terminal, operated by Chubu Electric, from the Nigerian plant at Bonny Island. The “Asia Endeavour” was scheduled to deliver a shipment on September 17 to the Hachinohe terminal in Japan, operated by Nippon Oil, from the Gorgon export plant on Barrow Island in Western Australia. The 210,100 cubic metres capacity vessel “Fraiha” will unload a cargo on September 19 at the Chinese Dalian plant in the northeast Liaoning Province from Ras Laffan in Qatar. The 160,400 cubic metres capacity carrier “Cubal” will deliver a cargo on September 22 to the Yung-An terminal in Taiwan from the Angola plant at Soyo in southwest Africa.
Sept 3 (LNGJ) - The 145,000 cubic metres capacity carrier “Methane Nile Eagle” was unloading a shipment on September 3 at the Japanese Ohgishima import terminal at the port of Yokohama from the Woodside Petroleum Dampier export facility in Western Australia, according to shipping data. The “Maran Gas Agamemnon” was unloading a cargo on September 3 at the Altamira terminal on the Gulf Coast of Mexico from the US Sabine Pass export plant owned by Cheniere Energy. The 171,866 cubic metres capacity carrier “Tessala” was scheduled to unload a cargo on September 4 at the French Fos sur Mer terminal near Marseille from the Arzew plant in Algeria, operated by Sonatrach. The 165,500 cubic metres capacity vessel “Woodside Donaldson” left the Pluto LNG jetty at Dampier port in Western Australia bound for the Japanese Himeji terminal where it is due to unload on September 12. The 174,100 cubic metres capacity vessel “Cesi Qingdao” is scheduled to deliver a cargo on September 14 to the Tianjin terminal in northeast China, owned by Sinopec, from Australia Pacific LNG in Queensland.
Aug 31 (LNGJ) - The 138,000 cubic metres capacity carrier “Madrid Spirit” is scheduled to deliver a cargo on September 1 to the Huelva terminal in southwest Spain from the Atlantic LNG plant in Trinidad, according to shipping data. The 127,600 cubic metres capacity “Northwest Stormpetrel” will deliver a cargo on September 4 to the Japanese Tobata facility, operated by Kitakyushu LNG, from the Dampier export terminal in Western Australia, owned by Woodside Petroleum. The 170,200 cubic metres capacity vessel “Pskov” will unload a shipment on September 7 at the Dutch Gate terminal in Rotterdam from the Russian Yamal plant in Siberia. The 145,000 cubic metres capacity carrier “LNG Enugu” will deliver a cargo on September 8 to the Aqaba terminal in the Kingdom of Jordan from the Bonny Island plant in Nigeria. The 148,300 cubic metres capacity carrier “LNG Imo” will unload a Nigerian cargo on September 10 at Port Qasim in Pakistan. The 172,000 cubic metres capacity carrier “Boris Vilkitsky” will deliver a shipment on September 11 to the Montoir de Bretagne facility in Western France from the Russian Yamal plant.
Aug 31 (LNGJ) - US LNG exports increased in the past week to six shipments, including five from Cheniere Energy’s Sabine Pass facility in Louisiana and one from the Dominion Energy Cove Point plant in Maryland. One further LNG carrier was lifting a cargo from Cove Point for imminent departure, according to a report from the Energy Information Administration. The benchmark Henry Hub natural gas spot price declined on the week to $2.96 per million British thermal units. Appalachian shale-gas prices and Permian Basin prices saw their discounts to the Henry Hub widen in the week because of flat demand. “Tennessee Zone 4 Marcellus spot prices decreased 25 cents from $2.61 per MMBtu to $2.36 per MMBtu. Prices at Dominion South in southwest Pennsylvania fell to $2.62 per MMBtu,” said the EIA. “Permian Basin spot prices at the Waha Hub in West Texas, which is located near the Permian, declined and are now at record lows compared to the Henry Hub,” it added. “Prices at the Waha Hub averaged $1.27 per MMBtu, $1.69 per MMBtu lower than Henry Hub prices. This decrease is the largest differential between Waha and Henry Hub prices since at least 2013,” stated the EIA.
Aug 30 (LNGJ) - The US Pipeline and Hazardous Materials Administration (PHMSA) is expected to take a more prominent role in evaluating the suitability of sites for proposed LNG projects under the new process being formulated to speed up applications for facilities while maintaining standards. The PHMSA will have more input of its expertise in pipelines and infrastructure such as LNG storage tanks when sites are being considered. The Federal Energy Regulatory Commission will still lead the applications, though other agencies such as the PHMSA can have wider roles in areas where safety standards must be maintained or can be improved.
Aug 29 (LNGJ) – The 140,000 cubic metres capacity carrier “Arctic Voyager” is unloading a shipment at the Bilbao terminal in northwest Spain from the Hammerfest plant in Norway operated by Equinor, according to shipping data. The 155,000 cubic metres capacity vessel “British Diamond” will deliver a cargo on August 30 to the Japanese Ishikari terminal, operated by Hokkaido Gas, from the Papua New Guinea export plant operated by ExxonMobil. The 160,500 cubic metres capacity “Sonangol Sambizanga” will unload a shipment on September 1 at the Dahej terminal in India, operated by Petronet, from the Anglo plant at Soyo in southwest Africa. The 210,000 cubic metres capacity Q-Flex vessel “Al Oraiq” will deliver a cargo on September 6 to the Shanwei terminal in the southern Guangdong province of China from the Ras Laffan plant in Qatar. The 145,000 cubic metres capacity carrier “LNG Jupiter” will unload a shipment on September 15 at the Incheon terminal in South Korea from the Oman plant at Sur on the Arabian peninsula.
Aug 28 (LNGJ) – Eight US Republican Senators have sent a letter to Kevin J. McIntyre, Chairman of the Federal Energy Regulatory Commission, calling on the FERC to approve pending LNG export project applications in a timely manner. The letter included Senators from the main energy producing states and sought information regarding the agency’s approval process and its available resources. “We are pleased that you and the other Commissioners share our dedication to making sure that the second wave of US LNG export project applications moves forward in a timely manner. We look forward to continuing to work closely with the Commission to meet that objective,” stated the Senators. The signatories were: Lisa Murkowski of Alaska, Bill Cassidy of Louisiana, John Barrasso of Wyoming John Kennedy of Louisiana, Ted Cruz of Texas, Cory Gardner of Colorado, James Inhofe from Oklahoma and James Risch of Indiana.
Aug 27 (LNGJ) - French energy major Total has signed an agreement to sell 500,000 tonnes per annum of LNG to Royal Dutch Shell over five years on a delivered basis to supply the markets of India and neighbouring countries. “The deliveries will be sourced from Total’s global LNG portfolio and are expected to begin in 2019,” said the French company. The deal is in addition to Total signing an accord with Shell for the sale of its 26 percent minority equity stake in the Hazira import terminal on the West Coast of India, near Mumbai. “This deal enables Total to capture value through an asset disposal, while the LNG sales contract allows us to maintain the balance of our LNG portfolio,” said Philippe Sauquet, Total’s President of Gas, Renewables and Power. “We remain committed to supply the Indian subcontinent, which is a key market experiencing strong growth in LNG demand.”
Aug 27 (LNGJ) - The 210,100 cubic metres capacity Q-Flex carrier “Al Ghariya” will unload a cargo on September 1 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 $7.90 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was higher at around $8.20 per MMBtu.
Aug 24 (LNGJ) – ExxonMobil and Burkhard Compression have agreed to collaborate on delivering high performance lubricants and technical services for reciprocating compressor systems. The aim is to optimize plant reliability, increase productivity and reduce costs.
South Korean state owned Korea Gas Corp (KOGAS) is said to be in talks to buy 12 LNG cargoes for delivery this winter.
The company was thought to be still in discussion with sellers and is yet to award the contract, a local source told Reuters.
ExxonMobil Corp was believed to have offered to sell an LNG cargo from the Gorgon LNG plant in Australia for August to September delivery.
Bids were thought to be valid until last Wednesday.
Gorgon’s operator Chevron completed planned maintenance at the plant’s Train 2 in early June.
On 7th August, K Line and Tokyo Century Corp held a naming ceremony for the newly-built LNGC for domestic energy giant JERA.
The LNGC, which is 293 m in length and has a beam of 48.9 m, was named ‘Enshu Maru’ at Kawasaki Heavy Industries’ Sakaide Shipyard.
To be operated by LNG Marine Transport, she will mainly lift gas at the US Freeport LNG project for Japan following her delivery.
‘Enshu Maru’ has a capacity of 164,700 cu m and a boil off rate of 0.08% per day. Her propulsion system includes a reheat steam turbine.
July 30 (LNGJ) – Russia’s state-owned holding Rostec has developed a mobile power plant on the basis of gas reciprocating units of Russian make. Running on LNG, the power plant can provide up to 1.4 MW of electricity and is employed to power remote settlement and oil upstream operations.
July 27 (LNGJ) - Wison Offshore and Marine, the Chinese engineering and shipbuilding company with facilities in the ports of Nantong and Shanghai, has signed a technical service agreement with Canadian company Western LNG for a new floating project to be developed in British Columbia. Wison will come up with a basic design for the vessel and carry out front-end engineering and design. Western said its development activities are supported by certain funds of the US private equity firm, Apollo Global Management. “The team at Western, with the support of Apollo, is looking forward to continuing work with Wison and our other partners to successfully deliver a mid-scale greenfield LNG export facility,” said Davis Thames, the Western company’s President and Chief Executive.
July 27 (LNGJ) - US LNG exports are maintaining their current momentum, with six cargoes departing in the past week and two more being lifted through July 26 at the Sabine Pass plant in Louisiana and the Cove Point facility in Maryland. The six LNG carriers had capacity for 21.4 billion cubic feet and four left from Sabine Pass and two from Cove Point, according to a US Energy Information Administration report. Of the two other loading tankers with a combined 6.8 Bcf of capacity, one was at each of the terminals. The EIA report said that US natural gas spot prices rose at most locations. The Henry Hub price was last at $2.77 per million British thermal units. At the Algonquin Citygate for Boston, prices went up 11 cents to $2.82 per MMBtu and at the Transcontinental Pipeline Zone 6 trading point for New York City prices rose 5 cents to $2.88 per MMBtu. The Tennessee Zone 4 Marcellus shale-gas prices continued to trade at a discount to the Henry Hub at $2.26 per MMBtu.
July 26 (LNGJ) - Fluor Corp., the US energy engineering company whose recent LNG project awards include the LNG Canada project in British Columbia, has held a ceremony in Shanghai to celebrate 40 years of its involvement in China. “Our projects, clients and partners in China have been a significant part of Fluor’s growth over the past 40 years,” said Ken Choudhary, president of Fluor’s Energy and Chemicals business in the Asia-Pacific. “Our legacy in China includes some of the country’s marquee capital projects, which have helped improve the lives of millions of people,” stated Choudhary. Fluor is part owner and operator of the Zhuhai Fabrication Yard in the southern Guangdong province with China National Offshore Oil Corp. and where work is carried out on oil, gas and terminal projects.
July 25 (LNGJ) - Italian energy engineer Saipem, one of the company’s retained for the Nigerian LNG expansion front-end engineering and design contest, posted first-half revenues of 3.79 billion euros ($4.42Bln) and adjusted operating profit for the period of 255 million euros versus 260M euros in the first half of 2017. “We recorded a substantial volume of new contracts in all business sectors, especially in Offshore and Onshore Engineering and Construction, in which we are achieving a balance between oil and non-oil related projects as well as penetration in new geographical areas,” said Stefano Cao, Saipem Chief Executive. “We expect that commercial activity will maintain its momentum in the second half,” added the CEO. “We have also approved a new phase of reorganisation, which will be fully operative by the end of the year,” he stated.
July 24 (LNGJ) - The 210,185 cubic metres capacity “Al Bahiya” will deliver a partial cargo on July 25 to the Malta import facility from Ras Laffan in Qatar, according to shipping data. The 145,000 cubic metres capacity “Al Thakira” will unload a Qatargas shipment on July 28 at the Revithoussa import terminal in Greece. The 148,300 cubic metres capacity vessel “LNG Imo” will deliver a cargo on August 2 to the French Montoir-de-Bretagne terminal on the Atlantic Coast from Bonny island plant in Nigeria. The 150,000 cubic metres capacity carrier “Seri Camellia”, owned by Malaysia International Shipping Corp., is scheduled to arrive on August 2 at the Cove Point export plant in the US East Coast state of Maryland to lift a cargo. The 155,000 cubic metres capacity carrier “British Sapphire” will deliver a shipment on August 9 to the Map Ta Phut terminal in Thailand from the Trinidad export plant in the Caribbean.
July 23 (LNGJ) – Russia and Qatar are delivering cargoes in the next week to Europe, the Middle East and China. The 170,200 cubic metres capacity carrier “Pskov” will unload a shipment on July 28 at the French Dunkirk terminal from the Yamal Peninsula plant at Sabetta in Siberia, according to shipping data. The 210,100 cubic metres capacity Q-Flex carrier “Um Al Amad” will unload a shipment on July 29 at the Mina Al Ahmadi facility in Kuwait from Ras Laffan in Qatar. The 210,000 cubic metres capacity Q-Flex vessel “Al Oraiq” will unload a Qatargas shipment on July 30 at the Zeebrugge terminal in Belgium. The 172,600 cubic metres capacity carrier “Christophe de Margerie” is scheduled to deliver a cargo on July 31 to the Tangshan terminal in the northeast Hebei province of China from the Russian Yamal plant.
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.
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.
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.
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.
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.
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.
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
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.
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.
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.”
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.