The Australian state of Queensland could face the partial shut-down of a third of its LNG export capacity by the middle of the 2020s due to a shortage of feed-gas supplies, together with the increasing need for diversions of natural gas to maintain domestic market security.
Spot liquefied natural gas prices in Asia are expected to decline as additions to global supply capacity outstrip growth in demand and as oil prices ease. The Asian LNG futures curve suggests a modest tapering in spot prices over 2019 and 2020.
US liquefied natural gas exports and pipeline shipments to Mexico are both forecast to increase until 2025, though pipeline export growth to Mexico slows and LNG exports continue rising through 2030.
Even if the massive arrival of US LNG on the markets over the next few years will fundamentally change the configuration of world gas supply, a distinction must nonetheless be made between the short term and the long term, and between the European and Asian markets
Qatar Petroleum and ExxonMobil finally made their investment decision to proceed with development of the Golden Pass LNG export project in Texas and awarded construction contracts to a US-Japanese consortium for work to begin within weeks and for the facility to be operational in 2024.
The Canadian government, along with some provincial administrations, has set policies to cut methane emissions from between 40-45 percent of baseline value by the year 2025 and these regulations will affect pipelines and energy installations, including LNG liquefaction plants.
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Feb 19 (LNGJ) - McDermott International, the US energy and LNG engineering company, has won two sizeable contracts, one from Sarawak Shell Berhad, a natural gas field operator and a unit of Royal Dutch Shell, and one from Sapura Exploration and Production, a Malaysian oil and gas services company, to provide transportation and installation of offshore structures, pipelines and pre-commissioning work for the Pan Malaysia field development located offshore Sarawak in Malaysia. McDermott’s scope of work for Sarawak Shell includes the transportation and installation of jackets, topsides and pipelines for the Gorek gas field. The company’s scope of work for Sapura includes the transportation and installation of jackets, topsides and pipelines for the Larak and Bakong gas fields.
“These two contracts give McDermott the opportunity to strengthen our long-standing relationship with Sarawak Shell Berhad and develop a new relationship with Sapura Exploration and Production,” said Ian Prescott, McDermott’s Senior Vice President for the Asia Pacific region. “They also provide an excellent opportunity for McDermott to execute offshore projects in Malaysia using many of the company’s assets, from our highly-skilled and talented workforce to our marine assets and our global fabrication expertise,” added Prescott.
Feb 18 (LNGJ) - Excelerate Energy, the US operator of floating storage and regasification units, and Norwegian energy company Equinor completed the first ship-to-ship (STS) transfer of liquefied natural gas in The Bahamas. Excelerate said the FSRU “Exemplar” and Equinor’s LNG carrier “Arctic Voyager” conducted the operation while moored at Equinor’s South Riding Point storage and trans-shipment terminal on Grand Bahama.
“Excelerate conducted the industry’s first commercial STS transfer of LNG in 2007 and since then STS transfers have been completed and proven safe in a wide range of environments, now including The Bahamas,” stated Excelerate’s Chief Commercial Officer Daniel Bustos. “This new STS location allows us to provide additional commercial flexibility to our customers and respond to prompt market needs in a safe and reliable manner,” added Bustos.
Feb 15 (LNGJ) - Tellurian Inc., developer of the US Driftwood LNG export plant in Louisiana, said it had signed an accord with Petronet LNG of India whereby Petronet was exploring the possibility of investing in the Driftwood project.
“Petronet is India’s largest LNG importer, operating 20 million tonnes per annum of receiving terminal capacity with an additional 2.5 MTPA of capacity under construction at its Dahej expansion and a further 5 MTPA proposed at Gangavaram, said Tellurian President and Chief Executive Meg Gentle.
The Driftwood projects proposes a plant with 27.6 MTPA of liquefaction and export capacity near Lake Charles in Louisiana along with affiliated pipelines. Tellurian expects to make a final investment decision and begin construction in the first half of 2019
Feb 13 (LNGJ) - Egypt has awarded five natural gas exploration concessions to Royal Dutch Shell, ExxonMobil Corp., Petronas of Malaysia, BP of the UK, and one other to Germany’s DEA and Italian company Eni in its latest round of tenders. The licence areas include the Western Desert, the Nile Valley and the Gulf of Suez. The gas awards mean that 20 wells will be drilled and Egypt expects investments of up to $800 million in the first stage of exploration. In addition to the gas licences there were seven oil exploration concessions in which 39 wells would be drilled. Eni’s discovery of the giant Zohr gas field in 2015 has raised interest in the East Mediterranean. The Zohr find and others have enabled Egypt to meet is rising domestic natural gas demand while arranging for the resumption of LNG exports.
Feb 12 (LNGJ) - Inpex Corp., operator of the Ichthys LNG project in the Northern Territory of Australia, said it had shipped 20 cargoes since commercial operations began in October 2018, including 11 LNG by the year-end. The number was included in the nine-month earnings from April to December 2018 as it posted sales of 700.5 billion yen ($6.3Bln), down 0.4 percent from the same period of 2017. Inpex said its nine-month net income rose by 17.2 percent to 62.6Bln yen ($566 million) compared with 53.4Bln ($483M) in the same period of the previous year.
Feb 8 (LNGJ) - Aker Solutions, the Norwegian energy and LNG engineering company, is getting back on track as it reported fourth-quarter net income of 178 million Norwegian crowns ($20.7M), up on the same three months a year ago. Aker’s full-year net income came in at 554M crowns ($64.45M) versus 239M crowns ($27.8M) in 2017. The company said its order backlog amounted to 35.1 billion crowns ($4 billion) and it forecast good times ahead for the industry.
“We saw a record number of studies and front-end engineering work for larger and more complex projects than previous years, a positive sign of more work to come,” said Chief Executive Officer Luis Araujo. The company said tendering activity remained high in the main subsea and offshore markets. “Aker Solutions is currently bidding for contracts totaling about 45 billion crowns ($5.2Bln). About two thirds of this is in the subsea area and key projects are anticipated to be awarded over the next six to 12 months,” stated Aker.
Feb 4 (LNGJ) - The 173,400 cubic metres capacity carrier “Flex Endeavour” will deliver a re-loaded cargo on February 7 to the UK South Hook import terminal at Milford Haven in Wales from the French Atlantic coast Montoir-de-Bretagne terminal, according to the port authority. The shipment was heading for the UK as the National Balancing Point benchmark natural gas price was at the equivalent of $6.55 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was lower at around $6.35 per MMBtu.
Feb 1 (LNGJ) - Calor, the UK’s leading provider of liquified natural gas for fuel stations, has further enhanced its refuelling network for natural gas-powered trucks by upgrading its Aust LNG facility, near the southwest city of Bristol. As part of the Severn View motorway auto-stop area for the services company Moto, the Aust facility is located off the M48 motorway by the Severn River Crossing.
Calor said it is a vital refuelling stop for LNG-fuelled vehicles using the M4 corridor to travel to London or elsewhere in the UK, and has been upgraded to consider the requirements of mono-fuelled trucks. “As part of this upgrade, the new system uses ‘zero loss’ cooling technology to keep LNG within the storage tank at the ideal temperature and pressure for refuelling vehicles,” said Calor. “Similar work has been carried out at Moto’s Donington Park, Lymm and Grantham service stations, to add to Calor’s growing LNG infrastructure of six public refuelling facilities,” the UK company added.
Mark Gilks, Transport Specialist at Calor, explained that demand for LNG continues to grow in the haulage industry, especially for long-haul vehicles and Calor continues to invest in its LNG refuelling network, which is the largest in the UK. “Leading truck manufacturers are predicting that, by the early 2020s, vehicles powered by natural gas could account for 20 percent of all HGVs sold.,” said Gilks. “This growing market share highlights the obvious benefits of choosing LNG to power long-haul HGVs now and into the future,” he stated.
Jan 30 (LNGJ) - The 147,000 cubic metres capacity vessel “Min Rong” will deliver a cargo on January 31 to the Chinese Fujian terminal from the Tangguh export plant in Indonesia, operated by BP of the UK, according to shipping data. The 174,000 cubic metres capacity carrier “Gaslog Houston” will unload a shipment on February 2 at the Tangshan terminal in northeast China from the Gorgon plant on Barrow Island in Western Australia. The 172,000 cubic metres capacity “Kumul” will deliver a cargo on February 3 to the Chinese Qingdao terminal in eastern Shandong province from the plant in Papua New Guinea.
The 174,100 cubic metres capacity vessel “Cesi Behai” is scheduled to deliver a cargo on Feb 6 to the Chinese Tianjin terminal for Sinopec from the Australia Pacific plant in Queensland. The 155,000 cubic metres capacity “Gaslog Savannnah” is delivering on February 8 to the Qingdao terminal, operated by Sinopec, from the Australia-Pacific plant in Queensland. The 210,185 cubic metres capacity Q-Flex vessel “Al Bahaiya” will unload a cargo on February 10 at the port of Tianjin from Qatargas at Ras Laffan.
In other Asian deliveries, the 155,000 cubic metres capacity “LNG Venus” will deliver a cargo on February 7 to Singapore from Gladstone LNG in Queensland. The 216,000 cubic metres capacity vessel “Al Thumama” will unload a cargo on February 5 at the Map Ta Phut terminal in Thailand from the Qatargas plant at Ras Laffan.
Jan 28 (LNGJ) - The 210,000 cubic metres capacity Q-Flex vessel “Al Oraiq” will unload a shipment on February 4 at the UK Milford Haven 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 lower at the equivalent of around $6.95 per MMBtu.
Jan 25 (LNGJ) - The Gorgon LNG export plant on Barrow Island in Western Australia, operated by Chevron Corp., has entered the second week of a shutdown of one of its three liquefaction Trains. Chevron said Train 3 at the plant had been closed since January 16 because of technical issues. The other shareholders in the Gorgon plant are Royal Dutch Shell and ExxonMobil Corp. The US$54 billion Gorgon facility came on stream in March 2016 with nameplate capacity of 15.6 million tonnes per annum from its three Trains. The plant mainly supplies Japanese customers such as Osaka Gas, Tokyo Gas and Jera Co. Inc.
Jan 24 (LNGJ) - Polskie LNG, the operator of the Polish import terminal at the Baltic port of Swinoujscie, said it had received environmental permits for its planned expansion of regasification capacity, storage and loading, allowing it to complete contract tenders. The Polish terminal began operations in 2009 and can currently receive almost 4 million tonnes per annum of LNG. Two tender procedures are currently in progress for the terminal. “The objective of the first is the selection of the contractor for three key components, construction of the third storage tank, process installations to increase regasification capacity and the LNG-to-rail transhipment installation along with a dedicated railway siding,” said the company. The deadline for the first tender has been extended to February 19. A second tender with a February 26 deadline is for the building of an additional jetty in cooperation with the Szczecin and Swinoujscie Seaports Authority.
Jan 23 (LNGJ) - Indian Oil Corp. is starting the commissioning process for the first East Coast LNG import terminal at Kamarajar Port near Chennai. India's four operating import terminals are all on the West Coast at Hazira, Dahej and Dabhol near Mumbai and at Kochi in the southwest state of Kerala. The terminal at Kamarajar Port, formerly one of India’s main coal ports and previously called Ennore, will handle around 5 million tonnes per annum of imports for Indian Oil, a state-backed refiner and fuel distribution company that is also a shareholder in Petronet LNG. The Kamarajar LNG project is located about 25 kilometres from Chennai Port and initially the imports will supply natural gas to industry in the Manali area, including Madras Fertilizers Ltd., Chennai Petroleum Corp. and Tamil Nadu Petroproducts.
Jan 22 (LNGJ) - Algerian state energy company Sonatrach, a main supplier to southern European LNG imports in France, Spain and Turkey, said it awarded a contract to China Harbor Engineering Co. to study, supply and build an additional marine jetty and port infrastructure at its Skikda LNG export plant on the Mediterranean coast. The Algerians said the contract was valued at 53 billion Algerian dinars ($445 million). The new jetty will allow classes of LNG carriers to dock and lift cargoes. “The project will be commissioned within 28 months after the engineering, procurement, construction contract enters force,” said Sonatrach.
Jan 22 (LNGJ) - The 161,880 cubic metres capacity carrier “BW Pavilion Leeara” will deliver a US cargo on January 29 to the UK South Hook import terminal at Milford Haven in Wales from the Sabine Pass plant in Louisiana, according to the port authority. The shipment was heading for the UK as the National Balancing Point benchmark natural gas price was at the equivalent of $7.50 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was lower at around $7.25 per MMBtu.
Jan 21 (LNGJ) - The 173,400 cubic metres capacity carrier “Patris” will deliver a cargo on January 23 to the UK South Hook import terminal at Milford Haven in Wales from Zeebrugge in Belgium, 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 $7.85 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was lower at around $7.55 per MMBtu.
Jan 18 (LNGJ) - GTT, the French liquefied natural gas storage tank technology company, said it received an order from the South Korean shipyard, Samsung Heavy Industries for the tank design of two LNG carriers on behalf of the Monaco-based fleet owner GasLog. The vessels will have storage capacity of 180,000 cubic metres and will be fitted with the GTT Mark III Flex-plus containment system. The two carriers will be delivered by the Samsung yard in the second and third quarters of 2021. “We are pleased to receive this new order from two long-term partners, SHI and Gaslog, which confirms the success encountered by our latest Mark III technology evolution,” said GTT Chairman and Chief Executive Philippe Berterottiere.
Jan 18 (LNGJ) - The 165,000 cubic metres capacity carrier “Arwa Spirit” will deliver a US cargo on January 21 to the UK South Hook import terminal at Milford Haven in Wales from the Cove Point plant in Maryland, according to the port authority. The shipment was heading for the UK as the National Balancing Point benchmark natural gas price was at the equivalent of $8.00 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was lower at around $7.65 per MMBtu.
Jan 17 (LNGJ) - Dutch shipping line Anthony Veder said its small-scale LNG carrier, the 7,500 cubic metres capacity “Coral Methane”, has successfully carried out its first liquefied natural gas bunkering operation on the world’s first LNG-powered cruise ship at Santa Cruz de Tenerife in the Spanish Canary Islands. The “Coral Methane” fueled the “AIDAnova”, the newest ship from AIDA Cruises, which made history as the cruise industry’s first ship to be powered at sea and in port by LNG. “We believe LNG is today’s most sustainable marine fuel,” said Klaas Kerssemakers, Chief Operating Officer of Anthony Veder. “The delivery of ‘Coral Methane’ as an LNG bunker vessel, in partnership with Shell, underlines our dedication to LNG and marks the next step in our contribution to a sustainable supply chain,” added Kerssemakers.
Jan 16 (LNGJ) - China is receiving ample January LNG shipments as about 20 carriers proceed to the network of import terminals with cargoes from nations such as Qatar, Nigeria, Australia and the US. Among the planned shipments, the 160,000 cubic metres capacity vessel “Arctic Aurora” is scheduled to unload a cargo on January 18 at the Ningbo facility in Zhenjiang province from the Queensland Curtis plant in Australia, according to shipping data. The 174,100 cubic metres capacity “Cesi Gladstone” will unload a shipment on January 21 at the northeast port of Tianjin from the Australia-Pacific LNG plant in Queensland.
The 148,300 cubic metres capacity carrier “LNG Ondo” will deliver a cargo on January 24 to the Qidong terminal in Jiangsu province from the Nigeria LNG plant on Bonny Island. The 170,050 cubic metres capacity carrier “Hoegh Giant” is scheduled to arrive on January 25 at the Chinese port of Tianjin with a cargo from the US Sabine Pass plant in Louisiana. The 266,000 cubic metres capacity Q-Max carrier “Al Dafna” will deliver a cargo on January 25 to PetroChina’s Tangshan terminal in northeast Hebei province from Ras Laffan in Qatar. The 210,100 cubic metres capacity Q-Flex vessel “Al Ruwais” will deliver a Qatargas cargo on January 28 to the Tangshan facility. The 145,700 cubic metres capacity carrier “LNG Benue” is also scheduled to arrive at Tangshan with a Nigerian cargo on January 29.
Jan 15 (LNGJ) - The 210,100 cubic metres capacity Q-Flex carrier “Al Ghariya” will deliver a cargo on January 19 to the UK South Hook import terminal at Milford Haven in Wales from Ras Laffan 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 $7.40 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was lower at around $7.27 per MMBtu.
Jan 14 (LNGJ) - Crowley Maritime Corp. said its new combination LNG-powered container-roll-on roll-off ship, the “Taino”, successfully completed its first voyage to Puerto Rico after receiving fuel for the first time at the Eagle LNG bunkering station in the Florida port of Jacksonville and departing on January 8. “The successful transit puts a historic capstone on the company’s Commitment Class modernization project and begins a new era of world-class supply chain services between the island commonwealth, the US mainland and the Caribbean Basin,” said Crowley. The ship is the second to have entered service after being constructed with LNG propulsion at the VT Halter Marine shipyard in Pascagoula in the state of Mississippi.
Jan 11 (LNGJ) - US LNG exports were stable over the past week as 10 LNG vessels departed from the three liquefaction and export plants in operation, seven from Sabine Pass in Louisiana, two from Cove Point in Maryland and one from Corpus Christi in Texas. The 10 vessels had a combined LNG-carrying capacity of 36.2 billion cubic feet and one other carrier was lifting a cargo from Cheniere Energy’s Sabine Pass through January 10, according to the weekly natural gas report from Energy Information Administration. US LNG exports reached a new record high in December 2018 when 36 cargoes were exported, including the first from the Corpus Christi plant on December 11.
Jan 10 (LNGJ) - Eagle LNG, a subsidiary of Ferus Natural Gas Fuels, said it supplied fuel to the Crowley Maritime Corp. vessel “Taino”, the second of two of the world’s first combination container and roll-on-roll-off ships powered by LNG. The “Taino” was refueled at the Eagle LNG shoreside bunkering depot at Jacksonville port in Florida before starting service on the Puerto Rico trade route. The “Taino”, built at the VT Halter Marine shipyard at Pascagoula in Mississippi, is joining its sister ship “El Coqui” to provide fast and environmentally-friendly shipping between Florida and the US territory in the Caribbean at a cost of $550 million, including port upgrades.
Jan 9 (LNGJ) - TransCanada Corp., the pipeline company with natural gas and other infrastructure in Canada, the US and Mexico has decided to change its name to TC Energy “to better reflect the scope of the company’s operations” as a leading North American energy player. TransCanada’s shareholders will be asked to approve a special resolution to change the name at the company’s next annual meeting to be held in the second quarter of 2019. “TC Energy better reflects the breadth of our business and acknowledges our proud history of safely and responsibly delivering the energy that millions of North Americans rely on every day,” said Russ Girling, TransCanada’s President and Chief Executive. “We believe the name TC Energy clearly articulates our complete business - pipelines, power generation and energy storage operations - and reflects our continued continental growth,” added Girling.
Jan 9 (LNGJ) - The American Bureau of Shipping, the US classification society offering services for vessels and projects in LNG and other sectors, has formally opened its new global headquarters in the town if Spring in Texas. The HQ is a 10-storey, 326,800-sq-ft building housing employees from ABS and its affiliated companies. “This is a significant milestone in our 157-year history and reaffirms our commitment to provide industry-leading safety and practical technology solutions for marine and offshore industry challenges,’’ said ABS Chairman, President and Chief Executive Christopher J. Wiernicki. “A five-year journey that started as an idea has now culminated in a building reflecting our leadership position and our continued vision for growth,” he added.
Jan 8 (LNGJ) - Four Nigerian LNG cargoes will be delivered in the next week to import terminals in Spain and Portugal. The 141,000 cubic metres capacity carrier “LNG River Niger” will unload a shipment on January 10 at the Barcelona terminal from the Bonny Island plant in Nigeria. The 162,000 cubic metres capacity vessel “Esshu Maru” will deliver a cargo on January 11 to the Huleva terminal in southwest Spain and the 148,471 cubic metres capacity carrier “LNG Kano” will unload a shipment on January 16 at the Bilbao terminal in northwest Spain. The 160,400 cubic metres capacity Cubal, which normally delivers shipments from Angola, lifted a Nigerian cargo on January 4 from Bonny Island and will deliver it to the Portuguese Sines facility on January 11.
Jan 7 (LNGJ) - The 210,100 cubic metres capacity carrier “Al Sheehaniya” is scheduled to deliver a cargo on January 12 to the UK Dragon LNG import terminal at Milford Haven in Wales, owned by Royal Dutch Shell and Petronas of Malaysia, according to the port authorities. The shipment is from Qatargas at Ras Laffan in the Gulf. The vessel is scheduled to arrive as the UK National Balancing Point benchmark natural gas price was at the equivalent of $7.75 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was lower at the equivalent of $7.65 per MMBtu.
Jan 4 (LNGJ) - The US Army Corps of Engineers said it awarded a $92 million construction contract to Great Lakes Dredge and Dock Company to deepen and widen the Corpus Christi Ship Channel (CCSC) from the Gulf of Mexico to Harbor Island. The contract work will increase the depth from -47 feet Mean Lower Low Water (MLLW) to -54 ft MLLW from the jetties at the entrance of the ship channel to Harbor Island and will extend the CCSC into the Gulf of Mexico to -56 feet MLLW. “We commend the Army Corps of Engineers for progressing the highly anticipated Corpus Christi Ship Channel Improvement Project, and the selection of Great Lakes Dredge and Dock to perform on this first contract is an extraordinary step forward in positioning the United States as the largest exporter of energy in the world,” said Sean Strawbridge, Chief Executive of the Port of Corpus Christi.
Jan 3 (LNGJ) – Seven cargoes will be unloaded at European terminals in the next week. The 145,000 cubic metres capacity “Methane Rita Andrea” is delivering a shipment on January 3 to the Aliaga facility near the port of Izmir in Turkey from the Trinidad plant in the Caribbean, according to shipping data. The 75,000 cubic metres capacity carrier “Cheik Bouamama” is unloading a cargo on January 4 at the Italian Panigaglia terminal near Genoa from the Skikda plant in Algeria. The 141,000 cubic metres capacity vessel “LNG Cross River” will deliver a cargo on January 4 to the Sines terminal in Portugal from the Nigerian plant on Bonny Island.
The 147,200 cubic metres capacity vessel “Arctic Princess” is scheduled to deliver a shipment on January 5 to the Dunkirk import terminal on the Channel coast of France from the Equinor plant at Hammerfest in Norway. The 216,000 cubic metres capacity vessel “Al Hamla” is scheduled to deliver a Qatargas shipment on January 5 to the Swinoujscie terminal in Poland. The 150,200 cubic metres capacity vessel “Seri Camar” will deliver a cargo on January 9 to the Aliaga facility in Turkey from the US Cove Point plant in Maryland. The 145,000 cubic metres capacity vessel “Milaha Qatar” will unload a Qatargas shipment on January 11 at the Adriatic LNG import facility in Italy.
Jan 2 (LNGJ) - The 138,160 cubic metres capacity carrier “Methane Princess” is scheduled to deliver a cargo on January 8 to the UK Dragon LNG import terminal at Milford Haven in Wales, owned by Royal Dutch Shell and Petronas of Malaysia, from the export plant in Equatorial Guinea, according to shipping data. The vessel is scheduled to arrive as the UK 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 lower at the equivalent of $7.35 per MMBtu.
Jan 1 (LNGJ) - The Thai energy company, PTT Exploration and Production, said it planned to invest 16.17 billion Thai Baht ($490 million) to support the final investment decisions in key projects during 2019, including the Mozambique LNG joint venture in Offshore Area 1 of the Rovuma Basin as well as other foreign projects in Algeria and Vietnam. “During 2019 PTTEP will move forward through a more active strategy, including in the Gas Value Chain business,” said Phongsthorn Thavisin, PTTEP Chief Executive. He added that total capital expenditure during the year would be around $3.25 billion.
Dec 28 (LNGJ) - Daewoo Shipbuilding and Marine Engineering, the world's second-largest shipbuilder by sales, has won an order worth $230 million to build an LNG carrier to transport cargoes from Papua New Guinea to Asian nations. The vessel will have 174,000 cubic metres of capacity and is scheduled to be delivered by the end of 2021. Daewoo said that during December it had received a total of six new orders to construct LNG carriers at its Geoje Island facilities.
Dec 27 (LNGJ) - GasLog Ltd, the Monaco-based LNG fleet owner with 25 ships operating and nine others on order, is chartering more vessels to US LNG producer Cheniere Energy, owner of the Sabine Pass plant in Louisiana and the Corpus Christi facility in Texas. “Cheniere Marketing International has exercised its option for two new charter party agreements, each for a firm period of seven years. To fulfil the charters, two LNG carriers have been ordered from Samsung Heavy Industries in South Korea,” explained GasLog.
Dec 24 (LNGJ) - The 165,500 cubic metres capacity carrier “Magellan Spirit” will deliver a cargo on December 29 to the UK South Hook import terminal at Milford Haven in Wales from the US Sabine Pass plant in Louisiana and lifted on December 16, 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 $8.40 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was lower at around $8.30 per MMBtu.
Dec 21 (LNGJ) - Hoegh LNG, the Norwegian fleet owner and specialist in floating storage and regasification unit projects, said it signed a charter accord with Australian company AGL Energy for the provision of an FSRU for a venture at Crib Point in the state of Victoria. Hoegh said the charter was for 10 years and was conditional on AGL taking a final investment decision for the venture, scheduled for start-up by 2021.
The Norwegian company estimates annual earnings from the charter of between US$29 million and US$31M, depending on technical specifications. “We are delighted to have been awarded the contract with AGL for their new LNG import project,” said Hoegh President and Chief Executive Sveinung J. S. Stohle. “ Our modern FSRU solutions offer our clients the quickest, most cost-efficient and most flexible method of connecting a new market to global LNG trade,” added the CEO.
Dec 21 (LNGJ) - US LNG exports amounted to seven shipments in the past week, six from the Sabine Pass plant in Louisiana and one from Cove Point in Maryland, while one vessel was lifting a cargo at Sabine Pass through December 19, according to the weekly report from the Energy Information Administration. US spot natural gas prices fell at most locations, with the benchmark Henry Hub dropping from $4.20 per million British thermal units over the week to $3.56 per MMBtu as storage concerns receded and the weather turned warmer.
“Prices have declined as temperatures were warmer than normal across the Lower 48 states and much warmer than normal across the Great Plains,” said the EIA. At the Chicago Citygate prices decreased 68 cents to $3.31 per MMBtu. At the Algonquin Citygate serving the Boston area prices dropped by $3.30 per MMBtu from $7.15 per MMBtu on December 12 to $3.85 per MMBtu. Tennessee Zone 4 Marcellus spot prices for shale gas dropped 71 cents to $3.28 per MMBtu. Prices at Dominion South in southwest Pennsylvania fell 75 cents to $3.22 per MMBtu.
Dec 20 (LNGJ) - The Port Arthur LNG project in Texas, a subsidiary of California-based utility Sempra Energy, entered into a definitive 20-year sale and purchase agreement to supply the Polish Oil & Gas Company. “While financial terms were not disclosed, the agreement is for the sale and purchase of 2 million tonnes per annum, or approximately 2.7 billion cubic metres,” said Sempra. The cargoes will be on a free-on-board basis whereby the Poles supply their own shipping from the facility to be constructed in Jefferson County, Texas. The Port Arthur project has yet to take its final investment decision for a plant to produce 11 million tonnes per annum and with three LNG storage tanks, two marine berths and associated facilities. “Last month, we began the commissioning phase of our Cameron LNG liquefaction-export facility in Louisiana,” said Jeffrey W. Martin, Chairman and Chief Executive of Sempra. “This agreement, along with the great progress on Cameron LNG, continue to validate our growth strategy,” he added.
Dec 20 (LNGJ) - LNG Ltd, the developer of the US Magnolia LNG export project in Louisiana, said it had extended the validity period of its current binding engineering, procurement, and construction contract through June 2019 with the joint venture comprising KBR of the US and South Korea’s SK Engineering and Construction. The EPC contract was first signed in November 2015. “Magnolia LNG continues to be well positioned to lead the next generation of US LNG export projects,” said LNG Ltd, noting that the venture was construction-ready, having secured equity financing and notice to proceed from regulators.
Dec 19 (LNGJ) - McDermott International, the US LNG and energy engineering company that completed the takeover of rival firm CB&I in May 2018, has signed a lease for a new corporate headquarters in Houston for 1,700 employees currently dispersed across five locations in the Houston area. McDermott said it would move to Energy Center Five, an 18-story, 524,000-square-foot office tower located at 915 North Eldridge Parkway and will be the sole tenant in the building. “The new, state-of-the-art building will enhance collaboration and productivity among our employees and drive efficiency and cost savings for the company,” said David Dickson, McDermott's President and Chief Executive. “We are also staying in Houston's Energy Corridor, which is strategic for McDermott given the close proximity to many of our customers and partners,” added the CEO. McDermott plans to begin operations from the new building in the third quarter of 2019.
Dec 18 (LNGJ) - Cheniere Energy has signed an LNG sale and purchase agreement with Malaysian energy company Petronas for around 1.1 million tonnes per annum of LNG from the Sabine Pass export plant in Louisiana and its planned sixth liquefaction Train. The cargoes will be delivered on a free-on-board basis for a term of 20 years and whereby Petronas supplies the shipping. The purchase price will be indexed to the Henry Hub benchmark, plus a fee. “Petronas is one of the largest and most experienced participants in the global LNG market and we are pleased to have it as our newest foundation customer at Sabine Pass, supporting Train 6,” said Jack Fusco, Chairman, President and Chief Executive of Cheniere.
Dec 18 (LNGJ) - Stabilis Energy, one of the leading small-scale US LNG distribution companies, is merging with Nasdaq-listed American Electric Technologies. The combined business will include the Stabilis LNG production and distribution businesses as well as AETI’s existing international units. When the transaction closes the owners of Stabilis will hold 89 percent of the combined company and AETI shareholders will own 11 percent. James Reddinger, current President and Chief Executive of Stabilis, will serve as President and CEO of the merged company, whose main operating asset is a 120,000 LNG-gallon per day production plant in George West, Texas, and a transportation fleet. “We believe the combination of Stabilis and AETI will create a leading platform for growth and consolidation in the North American small-scale LNG industry,” said Reddinger.
Dec 17 (LNGJ) - Golar LNG, the fleet owner and project developer, said it was advancing with a contract awarded by the Mauritania-Senegal joint venture partners, BP of the UK and Kosmos Energy of the US, for the provision of a floating liquefaction vessel to serve the Greater Tortue and Ahmeyim gas fields offshore West Africa. Golar said it had received a limited notice to proceed, furthering its previous preliminary agreement and heads of terms for the charter first announced in April 2018. The vessel conversion would take place at Keppel Shipyard after the Singapore yard’s delivery of FLNG hull, “Hilli Episeyo”, using liquefaction technology from Black and Veatch Corp. of the US. “Discussions regarding a minority investment in the vessel are also being progressed,” said Golar.
Dec 17 (LNGJ) - The 216,200 cubic metres capacity Q-Flex carrier “Tembek” will deliver a cargo on December 24 to the UK South Hook import terminal at Milford Haven in Wales from Ras Laffan 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 $8.40 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was lower at around $8.15 per MMBtu.
Dec 14 (LNGJ) - French maritime storage technology company GTT said it received an order from the South Korean shipyard of Hyundai Samho Heavy Industries for the tank designs for two LNG carriers. GTT said the vessel would have capacity of 174,000 cubic metres and have been ordered by the Greek ship-owner, Consolidated Marine Management. Delivery of the carriers is scheduled for between the first and the third quarter of 2021. The LNG tanks for the vessels will be the Mark III Flex containment system developed by GTT. “We are pleased with the long-term partnership of excellence developed with HSHI, and to accompany Consolidated Marine Management for its entry into the LNG world,” said Philippe Berterottiere, Chairman and Chief Executive of GTT.
Dec 13 (LNGJ) - NextDecade Corp., the developer of the Rio Grande LNG export plant proposed for near the port of Brownsville, said the Texas Commission on Environmental Quality voted to issue a series of air permits to the venture with plans to produce 27 million tonnes per annum of LNG. “We appreciate the TCEQ’s commitment to the review of our project to deliver a safe and reliable LNG facility,” said Matt Schatzman, NextDecade’s President and Chief Executive. “We look forward to bringing thousands of jobs to the Rio Grande Valley and communities throughout the State of Texas, and to facilitating access to clean-burning, US-produced natural gas for our customers around the world,” added Schatzman. The US Federal Energy Regulatory Commission plans to issue a final Environmental Impact Statement for Rio Grande LNG by the end of April 2019. NextDecade anticipates making a final investment decision in the third quarter of 2019.
Dec 12 (LNGJ) - The 160,106 cubic metres capacity carrier “Corcovado LNG” is scheduled to deliver a cargo on December 19 to the UK Dragon LNG import terminal at Milford Haven in Wales, owned by Royal Dutch Shell and Petronas of Malaysia, according to the port authority. The carrier had earlier in December docked at the Mugardos terminal in northwest Spain. The vessel is scheduled to arrive as the UK National Balancing Point benchmark natural gas price was at the equivalent of $8.00 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was lower at the equivalent of $7.85 per MMBtu.
Dec 11 (LNGJ) - NYK Line, the Japanese shipping company, said it signed long-term contracts with a subsidiary of Mitsubishi Corp. to charter three LNG carrier newbuilds for North American deliveries. The vessels will be chartered to Singapore-based Mitsubishi fuel subsidiary, Diamond Gas International. NYK previously concluded long-term time-charter deals for three new LNG vessels to ship cargoes from the Cameron LNG plant in the US and these new contracts bring the total to six carriers. NYK said it would be responsible for management of three of the vessels with 174,000 cubic metres capacity ordered from South Korean shipbuilder, Hyundai Samho Heavy Industries. The first LNG carrier, scheduled to be delivered in 2020 will transport LNG from the Cameron plant in Louisiana. The other two vessels are scheduled to be delivered in 2021 and will ship LNG from the Royal Dutch Shell-led LNG Canada project in British Columbia.