This week

Australian watchdog questions lack
of LNG price transfer and exploration

The 2020 supply-demand outlook in the Australian East Coast gas market has improved and LNG netback prices have decreased, though domestic prices remain high and there is uncertainty about future supplies, while states should encourage more exploration and production.

Latest News
Qatar Gas Transport Co., the Gulf nation’s shipping company, posted annual revenues of over US$1 billion as it acquired several more ships for the Gulf LNG exporting…
New Fortress Energy, the owner of liquefied natural gas facilities in Florida and in Jamaica and projects in Puerto Rico, has signed an agreement to supply LNG…
Japanese LNG engineering company JGC Corp. said it was moving forward with its contracts in the southeast African nation of Mozambique and with the LNG Canada joint…
UK-listed upstream natural gas company Sound Energy said it planned to set up a small LNG production project in the North African kingdom of Morocco from its…
Free ReadA growing number of LNG suppliers, including commodities trading firms such as Trafigura and national oil companies in the Middle East and elsewhere, have received “force majeure”…
The US Federal Energy Regulatory Commission plans a statement on February 20 on the application to build the Jordan Cove LNG export terminal at Coos Bay in…
US spot natural gas prices have reached their lowest in real terms for almost four years as front-month futures on the New York Mercantile Exchange have also…
Free ReadExmar, the Belgian shipping company with more than 40 vessels in its fleet now mostly focused on the liquefied petroleum gas business, said the outbreak of the…
NextDecade Corp. of the US and North American pipeline company Enbridge Inc. of Canada, entered into a definitive agreement whereby Enbridge would acquire the Rio Bravo Pipeline…
Woodside, the Australian LNG plant operator and Kitimat LNG shareholder in Canada, said it received a decision from the International Court of Arbitration of the International Chamber…

UK-Dutch prices edge up

Feb 18 (LNGJ) - LNG cargoes continue to head for the UK and arrivals will include the 266,000 cubic metres capacity Q-Max carrier “Mekaines”, which will deliver a shipment on February 23 to the South Hook terminal at Milford Haven in Wales from Ras Laffan in Qatar. The 180,000 cubic metres capacity “Adriano Knutsen” will then arrive at South Hook with another shipment on February 24 from Cheniere Energy’s Corpus Christi plant in Texas.

   Shipments are heading for the UK and other European destinations just as prices start to recover from historic lows. The UK National Balancing Point price was last at around $2.90 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), was at the equivalent of $2.95 per MMB

Japan shipping deal

Feb 17 (LNGJ) - Japanese companies Hiroshima Gas Co., Tokyo Gas and Tokyo LNG Tanker Co. have signed an LNG transportation agreement. Under the agreement, some of the LNG procured by Hiroshima Gas and Tokyo Gas from the Russian liquefaction plant on Sakhalin Island in the Far East will be transported at the same time on LNG carriers owned and managed by Tokyo LNG Tanker for a period of eight years through fiscal 2017. “The agreement was made possible with the cooperation of Sakhalin Energy Investment, a company contrlloed of Gazprom, and a long-term supplier of Hiroshima Gas and Tokyo Gas,” said the companies.

Ship rates drop again

Feb 13 (LNGJ) – Shipping charter rates for LNG carriers in the spot market dropped again in the past week as demand declined again amid abundant supply. Rates were quoted at an average of between $53,000 per day to $58,000 per day West of Suez and $47,000 per day to $52,000 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters for vessels of between 155,000-160,000 cubic metres capacity were seen at around $68,000 per day.

Nigerian Galp deal

Feb 13 (LNGJ) - Nigeria LNG has signed a deal with the trading arm of Portuguese company Galp Energia for one million tonnes per annum. The volumes will be supplied on a delivered ex-ship basis for 10 years from Trains 1, 2 and 3 of the six-Train facility on the on Bonny Island on the Niger Delta. The transaction follows a similar deal with Italy’s Eni and France’s Total announced in January and deal with commodity trader Vitol signed in December for 500,000 tonnes per annum.

Annova LNG permit

Feb 13 (LNG) - Annova LNG, the small export project planned for the Port of Brownsville in south Texas, has received a 20-year permit from the Department of Energy to export cargoes to nations without a Free Trade Agreement with the US. The liquefaction plant will produce around 7 million tonnes per annum of LNG.

   “This authorization from the DoE allows us to reach more customers worldwide and is another milestone accomplished as we make progress towards a final investment decision,” said Omar Khayum, Chief Executive of Annova. 

Kosmos-BP LNG deal

Feb 12 (LNGJ) - Kosmos Energy of Dallas, a shareholder in the two floating LNG projects being developed off Mauritania and Senegal in West Africa, has signed a Sale and Purchase Agreement with BP Gas Marketing, a wholly owned subsidiary of BP, the operator of the FLNG venture and the Greater Tortue Ahmeyim gas project. The SPA is for 2.45 million tonnes per annum LNG from Phase 1 of the BP-led project for an initial term of up to 20 years.

Trinidad LNG for UK

Feb 11 (LNGJ) - The UK will receive several cargoes of LNG this week from across the Atlantic. The 174,000 cubic metres capacity “Gaslog Greece” is scheduled to deliver on February 15 to the UK Dragon import terminal in Milford Haven from the Point Fortin plant in Trinidad, according to the port authorities. The 162,000 cubic metres capacity vessel “Shinshu Maru” is expected to arrive on the same day with a shipment from Freeport LNG in Texas for unloading at the South Hook facility at the Welsh port.

   Cargoes are heading for the UK and other European destinations amid record low prices. The UK National Balancing Point price was last at around $2.70 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), was at the equivalent of $2.75 per MMBtu.

Gasum expands role

Feb 10 (LNGJ) - Gasum of Finland, the main Nordic LNG supplier and importer, said that in line with its growth strategy for LNG maritime and trucking fuel it was expanding its role in the Nordic power market by becoming a member of the Nordic power exchange of Nasdaq OMX. The membership provides Gasum with access to direct trading in the power derivatives market. “In recent years, Gasum has been investing purposefully in building the Nordic gas ecosystem. In addition to the gas market, Gasum also aims to respond to customers’ energy needs by operating in an active role in the power market too,” said the company.

Equinor income falls

Feb 6 (LNGJ) - Equinor, the Norwegian operator of the Hammerfest LNG plant and a main supplier of pipeline gas to Europe, posted a net loss of $230M versus a profit of $3.37Bln in the same quarter of 2018. For the full year, net income was $1.85Bln, down from $7.54Bln in 2018. “Record high production, reduced costs and continued strong capital discipline contributed to solid results in a quarter with lower commodity prices,” said the company. 

   “The flexibility in the gas fields was used to defer production into periods with higher expected gas prices,” added Equinor. “The Johan Sverdrup field was put in production in October 2019 and is currently producing more than 350.000 barrels per day from eight wells. The field is expected to reach plateau during the summer of 2020,” it added.

Ship charter rates drop

Feb 6 (LNGJ) – Shipping charter rates for LNG carriers in the spot market dropped further in the week as winter season deliveries slowed down, adding to the market glut. Rates were quoted at an average of between $63,000 per day to $67,000 per day West of Suez and $56,000 per day to $62,000 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters for vessels of between 155,000-160,000 cubic metres capacity were seen at around $70,000 per day.

Low-priced UK LNG

Feb 5 (LNGJ) - Two more LNG cargoes are heading for Milford Haven port in the UK. The 160,000 cubic metres capacity vessel “Golar Kelvin” is scheduled to unload US shipment on February 10 at the Dragon terminal in Milford Haven in Wales from Freeport LNG in Texas, according to shipping data. The 210,185  cubic metres capacity carrier “Al Bahiya” will then deliver a cargo on February 12 to the UK South Hook terminal in Milford Haven from Ras Laffan in Qatar.

   Cargoes are heading for the UK and other European destinations amid record low winter season prices. The UK National Balancing Point price was last at around $3.05 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), was at the equivalent of $3.00 per MMBtu.

Shipments for UK

Feb 4 (LNGJ) - Cargoes continue to head for the UK as record low prices prevail. The next February cargo to unload at the UK South Hook LNG import terminal at Milford Haven in Wales will arrive on February 6 on board the Qatari Q-Flex carrier “Al Nuaman” with 210,000 cubic metres of capacity. A second shipment is scheduled to arrive on February 7 from the US on the 145,700 cubic metres capacity “Stena Blue Sky” and will be unloaded at the Dragon terminal in Milford Haven.

   Cargoes are heading for the UK and other European destinations even as record seasonally low prices prevail because of excess supplies. The UK National Balancing Point price was last at around $3.00 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), was at the equivalent of $2.95 per MMBtu.

Trump LNG signing plan

Feb 3 (LNGJ) - Indian importer Petronet LNG is expected to sign a firm supply agreement with Gulf Coast liquefaction plant developer Tellurian Inc. during the scheduled visit to India on February 24-25 of US President Donald Trump. The initial agreement between Houston-based Tellurian and Petronet for up to 5 million tonnes per annum of US LNG was signed during a visit to the Texan city in September 2019 by Indian Prime Minister Narendra Modi.

   Petronet is also negotiating an equity investment in Tellurian’s Driftwood project proposed for the west bank of the Calcasieu River, south of Lake Charles in Louisiana, and with output of just over 26 million tonnes per annum when completed in 2023.

LNG shipping rates down

Jan 30 (LNGJ) – Shipping charter rates for LNG carriers in the spot market were down again in the week amid a slowdown in deliveries and market over-capacity. Rates were quoted at an average of between $68,000 per day to $72,000 per day West of Suez and $65,000 per day to $70,000 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters for vessels of between 155,000-160,000 cubic metres capacity were seen at around $72,000 per day.

Novatek share buy-back

Jan 29 (LNGJ) - Novatek, the largest independent natural gas producer in Russia and operator of the Yamal LNG export plant in northern Siberia, said that its share buy-back programme during the period from January 20-24, 2020, had resulted in 464,900 ordinary shares (including in a form of Global Depositary Receipts) being purchased in the open market. 

   Novatek is a public joint stock company and the shares are listed in Russia on the Moscow Exchange and on the London Stock Exchange in the UK under the ticker symbol “NVTK”. Companies buy back shares for a number of reasons, including as a means of increasing the value of remaining shares available by reducing the supply, or preventing other existing shareholders from taking bigger stakes.

UK February cargo

Jan 28 (LNGJ) - The first February cargo is heading for the UK South Hook LNG import terminal at Milford Haven in Wales. The shipment will arrive on February 3 on board Qatari Q-Max carrier “Al Ghuwairiya” with 261,700 cubic metres of capacity. Cargoes are heading for the UK and other European destinations even as record seasonally low prices prevail because of excess supplies. The UK National Balancing Point price was last at around $3.60 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), was at the equivalent of $3.40 per MMBtu. 

Magnolia LNG permit

Jan 27 (LNGJ) - The US Federal Energy Regulatory Commission has  prepared a final supplemental environmental impact statement for the Magnolia LNG project proposed for Lake Charles in Louisiana, which has a deal to export shipments to Vietnam. The Magnolia project, owned by Australian-listed LNG Ltd, requested authorization to increase capacity at the previously authorized project from 8 million metric tonnes per annum to 8.8 MTPA. 

   “The increased production capacity would be achieved through the optimization of Magnolia LNG’s final design, including additional and modified process equipment,” the FERC noted. “With the incorporation of the mitigation measures identified in the supplemental EIS, staff concluded the LNG terminal design would include acceptable layers of protection or safeguards,” it added.

LNG charter rates

Jan 23 (LNGJ) - In the spot shipping charter market, LNG carrier spot rates were down again in the week and were quoted at an average of between $75,000 per day to $82,000 per day West of Suez and $70,000 per day to $77,000 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters for vessels of between 155,000-160,000 cubic metres capacity were seen at around $75,000 per day.

More US LNG for UK

Jan 22 (LNGJ) - The 161,870 cubic metres capacity carrier “Maran Gas Apollonia” will become the latest carrier to discharge an LNG cargo at a UK terminal when it unloads a shipment on January 28 at the South Hook facility in Milford Haven. The cargo comes from the Cheniere Energy-owned Sabine Pass plant in Louisiana. The cargoes are arriving amid continued low winter season prices. The UK National Balancing Point price was last at around $3.65 per million British thermal units and the Dutch Title Transfer Facility (TTF) price was at the equivalent of $3.50 per MMBtu.

LNG bunkering order

Jan 21 (LNGJ) - Greek company Probunkers said it had agreed terms with Hyundai Mipo Dockyard of South Korea for the construction of two LNG bunkering vessels, each with 7,600 cubic metres of capacity.

   The accord in the form of a letter of intent came after a long process during which the Greek firm’s technical team reviewed more than 30 ship design proposals. Probunkers said the initial agreement with the Korean yard underlined its aim of bringing quality and reliability to customers.

Malaysia-China deal

Jan 20 (LNGJ) - Malaysian oil and gas company Petronas has signed an agreement with the Chinese state-owned energy firm, Shenergy Group, to supply around 1.5 million tonnes per annum of LNG to Shenergy’s Wuhaogou facilities near Shanghai. 

   The heads of agreement is for a 12-year term starting from 2022 and will involve a shipping collaboration to construct and charter new mid-sized LNG vessels for the cargo deliveries. Petronas has been a major LNG supplier to Shenergy's subsidiary, Shanghai LNG Co., since 2006.

   “The long-term deal, which involves the delivery of mid-sized cargoes to unique LNG receiving terminals, is a testimony of Petronas’s commitment to customer-centricity and market adaptability,” said Adnan Zainal Abidin, the Malaysian company’s Chief Executive for Gas and New Energy.

Freeport BP start-up

Jan 17 (LNGJ) - Freeport LNG has started commercial operations for the second liquefaction Train of its three-Train facility with the commencement of gas deliveries from BP of the UK under its 20-year tolling agreement. Freeport LNG's Train 1 began commercial operations in December 2019, with the commencement of the Osaka Gas and JERA Co. Inc. tolling agreements.

  “We are thrilled to now be providing service to BP, in addition to Osaka Gas, and JERA ,” said Michael Smith, Founder, Chairman and Chief Executive of Freeport LNG. “We are also especially pleased with the performance of our electric motor drive liquefaction units,” added Smith.

   The company added that construction of Freeport's Train 3 is essentially complete. Gas has been introduced to the pre-treatment facilities and the Freeport expects Federal Energy Regulatory Commission approval to bring gas to the liquefaction site in February. Train 3 remains on track for a commercial start date in May.

US natural gas record

Jan 15 (LNGJ) - US dry natural gas production set a record in 2019 to average 92.0 billion cubic feet per day, according to the Energy Information Administration. The EIA forecasts dry natural gas production will rise to 94.7 Bcf per day in 2020 and then decline to 94.1 Bcf per day in 2021.

   “Production in the Appalachian region drives the forecast as it shifts from growth in 2020 to declining production in 2021,” said the EIA short-term forecast.

On pricing, the benchmark Henry Hub natural gas spot price is seen averaging $2.33 per million British thermal units in 2020, down from $2.57 per MMBtu in 2019. It is then expected that natural gas prices will increase in 2021, reaching an annual average of $2.54 per MMBtu.

Turkish LNG fuel

Jan 14 (LNGJ) - Royal Dutch Shell  and Turcas Petrol have opened the first liquefied natural gas filling station in Turkey. The facility was started up under a long-term fuel stations agreement between the two companies. The new filling station is in the town of Sapanca on the Istanbul-Ankara highway, one of the busiest roads for freight trucking to and from southeast and central Europe.

   Turcas Petrol and Shell have had a joint venture accord since 2005 for the development and distribution of fuel products and lubricants in Turkey. They currently have a network of around 1,000 fuel stations in the country.

Spain LNG acquisition

Jan 14 (LNGJ) - HAM Group of Spain, an LNG and compressed natural gas fuel and bunkering services firm, said it acquired FNX Liquid Natural Gas, a small-scale natural gas liquefaction company based in the Basque company of northwest Spain.  

   FNX focuses on the design, manufacturing and installation of mini  liquefaction plants, also including equipment for processing natural gas from wells and other sources. FNX has its own manufacturing facilities in the North of Spain for the design, construction and design of equipment. 

“Specialized in the manufacture of equipment for liquefaction, FNX offers a wide range of project management services, being able to carry out the complete management of the customer’s facility, if requested,” said HAM.

Qatar veteran honoured

Jan 14 (LNG) - Qatar Petroleum hosted a farewell in honour of Issa Shahin Al-Ghanim who joined Qatar Petroleum's Corporate Planning Department in 1990 before the first LNG Train came on stream at Ras Laffan seven years later in 1997.

   Al-Ghanim became the director of the department in 1993, after which he was appointed as director of Strategic Planning and Policy in 2009. He also represented the State of Qatar in the Organization of Petroleum Exporting Countries (OPEC) from 2000 until 2018.

   Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President and CEO of Qatar Petroleum, attended the farewell along with senior executives. Al-Kaabi voiced appreciation of Al-Ghanim's “valuable contributions during three decades of service at Qatar Petroleum”.

Indian LNG buildout

Jan 13 (LNGJ) - The International Energy Agency said in its energy policy review of India that the Asian nation was likely to have around 16 LNG import terminals in operation over the next seven years. The IEA said it welcomed India’s ambition to increase the share of natural gas in the country’s energy mix to 15 percent by 2030 from 6 percent today.

“India has five operating terminals for liquefied natural gas. Projects under construction could result in up to 11 additional terminals over the next seven years,” said the report. “The role of gas has grown in India’s residential and transport sectors but fallen in power generation, where imported natural gas remains squeezed by cheap renewables and coal,” explained the IEA.

“The government is committed to further liberalising the country’s natural gas market. Strengthening regulatory supervision of upstream, midstream and downstream activities should be part of the market reforms, as it is likely to bring greater efficiency and drive up demand for gas and investment in gas transport infrastructure,” said the report.

UAE-Korea energy talks

Jan 10 (LNGJ) - South Korea, the third-largest LNG importer,  said it planned to forge closer ties with the United Arab Emirates in the energy sector. Joo Young-joon, Deputy Minister for Energy and Resources at the South Korean Ministry of Trade, Industry and Energy, is visiting LNG exporter Abu Dhabi for talks. South Korea receives 70 percent of its crude oil supplies and 38 percent of its LNG from Middle East nations. 

Bulgaria LNG imports

Jan 9 (LNGJ) - The Bulgarian Prime Minister Boyko Borissov said at the opening of US-Bulgarian trade talks that the Balkan nation planned to buy a 20 percent stake in a floating liquefied natural gas import terminal off northern Greece.

   Borissov said that the Bulgarian stake in the terminal would be the same as that of Greece’s state energy company DEPA and would be held by gas company Bulgartransgaz. The terminal is being developed by Greek company Gastrade off the Greek port of Alexandroupolis. The LNG terminal stake would give Bulgaria an alternative source of gas supplies to the recently started Turkstream pipeline from Russia via Turkey.

GTT tanks for newbuild

Jan 8 (LNGJ) - Gaztransport and Technigaz (GTT), the French LNG storage technology firm, said it received an order from the Korean shipyard Daewoo Shipbuilding and Marine Engineering (DSME) concerning the tank design for a new LNG carrier with 174,000 cubic metres capacity from an as yet unnamed European ship-owner.

   GTT said that its membrane containment tank system, the No. 96 GW,  had been selected for the design. The delivery of the ship is scheduled for early 2022. “We are very pleased to continue our partnership of excellence with DSME with this new order,” said Philippe Berterottière, Chairman and Chief Executive of GTT.

LNG for UK South Hook

Jan 7 (LNGJ) – Three LNG shipments are headed for the UK port of  Milford Haven in Wales over the next week. The cargoes are arriving amid continued flat winter season prices. The UK National Balancing Point price was last at around $4.30 per million British thermal units and the Dutch Title Transfer Facility (TTF) price was at the equivalent of $4.00 per MMBtu. 

   The 173,400 cubic metres capacity vessel “BW Lilac” will deliver on January 9 to the South Hook terminal from the Cheniere Energy’s Corpus Christi plant in Texas. The 210,100 cubic metres capacity  Q-Flex carrier “Fraiha” will then deliver to the South Hook facility on January 12 from Ras Laffan in Qatar. The third shipment for Milford Haven is scheduled for  January 14 when the 170,050 cubic metres capacity vessel “Hoegh Giant” unloads a cargo from Cheniere’s Sabine Pass plant in Louisiana.

Turkstream gas for EU

Jan 6 (LNGJ) - The Bulgarian natural gas network firm, Bulgartransgaz, said Russian company Gazprom had started European gas deliveries via the new TurkStream pipeline to Turkey, providing more competition for LNG. The capacity flows are about 3 billion cubic metres of gas to Bulgaria via TurkStream, replacing a route that formerly passed through Ukraine and Romania.

   “Russian gas deliveries not only for us but also for Greece and North Macedonia are being carried through the new entry point,” said Bulgartransgaz Chief Executive Vladimir Malinov.

   Gazprom is building TurkStream in two pipelines, each with an annual capacity of 15.75 Bcm. The first pipeline is aimed at supplying Turkey and the second would run further from Bulgaria to Serbia and Hungary. The Bulgarians said they hoped to be able to make shipments to Serbia by May 2020 and complete the whole section by year-end.

Elba Island LNG moves

Jan 3 (LNGJ) - The US Elba Island LNG export plant near Savannah in Georgia developed by pipeline company Kinder Morgan has had its request granted by the US Federal Energy Regulatory Commission to introduce feed-gas into the fifth liquefaction Train at the 10-Train facility.

   “This approval is based on FERC staff inspections of the applicable facilities and review of the information filed through December 23, 2019, and subsequent discussions,” said the FERC. Elba Island has nameplate output of 2.5 million tonnes per annum and is the smallest of the six US export plants currently on stream. The project is using Royal Dutch Shell's Movable Modular Liquefaction System. According to the FERC-approved schedule, Trains 1-6 at Elba Island are all entering service by early January followed by Trains 7-10 .

LNG cargoes for Europe

Jan 2 (LNGJ) – LNG cargoes were pointing at European terminals in the week ahead even amid lower prices, with the UK National Balancing Point (NBP) at the equivalent of $4.15 per million British thermal units and the Dutch Title Transfer Facility (TTF) price at the equivalent of $3.95 per MMBtu. The “Ribera del Duero Knutsen” was unloading a cargo at the UK Isle of Grain terminal near London from the US Sabine Pass plant in Louisiana. The 210,000 cubic metres capacity Q-Flex vessel “Al Nuaman” was scheduled to unload a Qatargas shipment on January 2 at the Turkish Marmara Ereglisito terminal for Botas.

   The 137,230 cubic metres capacity carrier “LNG Sokoto” will deliver a shipment on January 3 to the Portuguese terminal at Sines from the Bonny Island plant in Nigeria. The 138,000 cubic metres capacity “Fuwairit” will unload a Qatargas cargo on January 4 at the Cartagena terminal in southeast Spain. The 140,000 cubic metres capacity vessel “Arctic Voyager” will deliver a cargo on January 7 to Baltic port of Klaipeda in Lithuania from the Hammerfest plant in Norway operated by Equinor. The 172,000 cubic metres capacity carrier “Eduard Toll” will deliver a Yamal LNG cargo on January 8 to the Montoir-de-Bretagne terminal in Western France for the terminal operator Elengy.

GAIL cargoes from US

Dec 31 (LNGJ) - Gas Authority of India (GAIL), the state-owned utility and the holder of a tolling agreement at the US Cove Point plant in Maryland and a supply accord with Cheniere Energy’s Sabine Pass plant in Louisiana, said it planned to import 90 cargoes from the US in the next fiscal year from April 2020 to March 2021. This will be more than the 75 cargoes, or around 5 million tonnes of US cargoes, GAIL was expected to import during the current fiscal year.

Shell FLNG tie-back

Dec 30 (LNGJ) - Royal Dutch Shell has confirmed a significant natural gas and condensate discovery within the Shell-owned title AC-P64 in the Browse Basin off the northwest coast of Western Australia with feed-gas potential for the Prelude floating LNG hull deployed in the basin.

   “This discovery is located 160 kilometres northeast of the Shell operated Prelude FLNG facility and presents an opportunity for a future tie-back to Prelude,” said Shell. “It supports Shell’s growth plans for more and cleaner energy, with LNG being the predominant focus for Shell in Australia,” said the Anglo-Dutch major.

Magnolia LNG boost

Dec 27 (LNGJ) - LNG Ltd., the Australian-listed developer of the Magnolia LNG export plant in Louisiana, said it was grateful to the Vietnamese government for including Delta Offshore Energy’s LNG-to-power project in the Asian nation’s latest Power Development Plan.

   The approval clears the way for Delta Offshore to negotiate and finalize a 25-year power purchase agreement to underpin its LNG-to-power project in Vietnam’s Bac Lieu Province. It also empowers the Magnolia LNG export venture to finalize a binding sale and purchase agreement for delivery of 2 million tonnes per annum of US LNG to Vietnam.

LNG for coal carriers

Dec 27 (LNGJ) - Japanese utility Kyushu Electric Power Co. said it signed long-term transport agreements for the world’s first LNG-powered large coal carriers with the shipping companies, Nippon Yusen Kabushiki Kaisha (NYK Line) and Mitsui OSK Lines.

   The two newbuild vessels will be delivered from Japanese shipyards in 2023 to import coal for Kyushu Electric’s coal-fired power plants. The LNG will be supplied to fuel the coal carriers at the loading facility of Kitakyushu LNG Co., a Kyushu Electric subsidiary. “NYK, MOL and Kyushu Electric aim to positively collaborate for sustainable marine transportation of coal, with the reduction of its environmental impact,” they said.

US LNG points to UK

Dec 26 (LNGJ) - As the US LNG export plant build-out continues and the volumes of shipments grow, the UK Port of Milford Haven in Wales is scheduled to receive three shipments from the Gulf Coast in the next five days.

   The 155,000 cubic metres capacity vessel “Gaslog Savannah” is scheduled to deliver a cargo on December 29 from the Cameron export facility on the shore of the Calcasieu Ship Channel in Louisiana to the UK South Hook terminal, according to port authorities.

   Then on December 31, the 138,000 cubic metres capacity carrier “Iberica Knutsen” will unload a shipment from Cheniere Energy’s Sabine Pass plant in Louisiana at the Welsh port’s Dragon regasification terminal. The third cargo also comes from Sabine Pass and will be delivered by the 174,000 cubic metres capacity carrier “Flex Rainbow” on the last day of 2019 to the South Hook terminal.

Mitsubishi LNG engines

Dec 24 (LNGJ) - Mitsubishi Shipbuilding Co. said it delivered the first LNG fuel supply system for dual-fuel marine engines. This system will be installed onboard the first LNG-powered pure car carrier (PCC) built in Japan. The vessel is currently under construction at Shin Kurushima Toyohashi Shipbuilding in Aichi Prefecture on Honshu Island. The Fuel Gas Supply System (FGSS) has been developed by Yokohama-based Mitsubishi Shipbuilding utilizing LNG and vaporized gas-handling technology.

“The FGSS consists of LNG fuel tanks, LNG fuel gas supply units and control units and is delivered in modules, which is expected to contribute to the optimum design of the cargo space and help the shipyard to shorten the installation period,” said Mitsubishi. “Mitsubishi Shipbuilding has also provided the shipbuilding yard with the engineering service and technical support relating to the gas-handling of the ship,” it added.

Cove Point LNG deal

Dec 23 (LNGJ) - Dominion Energy of the US said it completed the sale for $2.1 billion of a 25 percent non-controlling stake in Cove Point LNG in Maryland to Brookfield Super-Core Infrastructure Partners, a fund managed by Brookfield Asset Management Inc. of Canada.

Dominion’s Cove Point LNG unit owns the liquefaction plant and storage facilities located on the western shore of Chesapeake Bay as well as a 136-mile pipeline that interconnects the facility with the inter-state pipeline system.

Shell updates on LNG

Dec 20 (LNGJ) - Royal Dutch Shell updated its fourth-quarter 2019 outlook with estimates of the LNG and Integrated Gas Division output expected to be between 920 and 970 thousand barrels of oil equivalent per day. LNG liquefaction volumes are forecast to be between 8.8 million tonnes and 9.4MT. However, Shell’s quarterly LNG sales volumes will be larger as they also include traded cargoes and most recently rose by 9 percent to 18.9MT for the third quarter.

“As per previous disclosures, more than 80 percent of our term contracts for LNG sales were oil price-linked with a price-lag of typically 3-6 months,” said Shell. “The impacts presented here may vary from the actual results and are subject to finalisation of the fourth-quarter 2019 results which are scheduled to be released on January 30, 2020,” added the Anglo-Dutch company.

CNOOC Canada permit

Dec 20 (LNGJ) - China National Offshore Oil Corp, one of the nation’s main LNG importers and terminal owners, has made progress in Canada with Atlantic drilling plans. The Canadian Federal Minister of Environment and Climate Change, Jonathan Wilkinson, has given the proposed CNOOC Flemish Pass Exploration Drilling Project offshore Newfoundland a permit to proceed. CNOOC had bid C$300 million (US$228M) for two offshore exploration licences.

   However, the Impact Assessment Agency of Canada has established 101 legally-binding conditions that CNOOC must follow for the duration of the project. The Chinese company already has other Canadian energy assets in oil sands, shale gas and offshore.

Korean order for GTT

Dec 19 (LNGJ) - French LNG tank technology firm GTT said it received an order from the South Korean shipyard, Hyundai Samho Heavy Industries, for the tank design for a newbuild. The vessel will offer a capacity of 174,000 cubic metres and will be fitted with GTT's Mark III Flex membrane containment system. “It will be built on behalf of an Asian ship-owner whose name remains confidential at this stage. The delivery will take place during the first quarter of 2022,” said GTT.

Novatek licence award

Dec 18 (LNGJ) - Novatek, the Yamal LNG plant operator, said its subsidiary Novatek-Yurkharovneftegas won the auction for the geological survey, exploration and production licence for the East-Ladertoyskiy subsoil area located on the Gydan Peninsula in the Yamal-Nenets Autonomous Region of Arctic Russia. The licence area has estimated hydrocarbon resources of 184 billion cubic metres of natural gas and 32 million tons of liquids, or 1.5 billion barrels of oil equivalent, according to the Russian resource classification system. The licence term is 25 years.

   The new licence area borders Novatek’s Ladertoyskiy, Nyavuyahskiy, West-Solpatinskiy and Central-Nadoyakhskiy subsoil areas on the Gydan Peninsula, where the company’s Arctic II LNG project is being developed. Novatek said the licence acquisition is in line with the company’s strategy to expand its resource base on the Yamal and Gydan peninsulas.

Cyprus LNG project

Dec 16 (LNGJ) - The Cypriot Government said a Chinese-led consortium had entered into a 290 million euros ($323M) contract with the Cyprus Natural Gas Infrastructure Co. (Etifa) to develop the first LNG import terminal for the Greek-speaking part of the Mediterranean island. The consortium is led by China Petroleum Pipeline Engineering and also includes Hudong-Zhonghua Shipbuilding, Greek company Metron and Norwegian firm Wilhelmsen Ship Management.

   The LNG terminal, which will include a floating storage and regasification unit (FSRU), is expected to be completed by the end of 2021 or early 2022. The project has secured 101M euros in grants from the European Union under the Connecting Europe Facility (CEF), while the Cyprus Electricity Authority will contribute 43M euros to have a 30 percent stake in the project.

Norway gas field award

Dec 12 (LNGJ) - The Europe-based offshore development company Subsea 7 SA has been awarded a contract by Aker BP for the Aerfugl Phase 2 natural gas field development, located about 210 kilometres west of Sandnessjoen in the Norwegian Sea. Norway is one of the largest pipeline natural gas suppliers to Western Europe, along with Russian company Gazprom, and both sources compete with LNG shipments.

   The Subsea 7 engineering, procurement, construction and installation contact is a long-distance tie-back involving the application of Subsea 7’s Electrically Heat Traced Flowline (EHTF) technology for a distance of 13.5km from the subsea location to the existing Skarv infrastructure. Subsea 7 has a long-term subsea alliance agreement with Aker BP.

   “This award acknowledges Subsea 7 as a key partner in the delivery of pioneering technology, underlining our proven track record of safe and successful project execution in some of the harshest offshore environments,” said Monica Th. Bjokmann, Vice President of Subsea 7 Norway.

Jera US LNG boost

Dec 11 (LNGJ) - Jera Co. Inc., the largest Japanese LNG buyer for the nation’s leading utilities, said it was pleased with the recent start-up of commercial operations on Train 1 at the Freeport export plant on Quintana Island in Texas. The facility when completed will have three Trains with 15 million tonnes per annum of capacity and has permission to build a fourth Train.

   Jera will ship about 2.32 MTPA of LNG under its 20-year liquefaction tolling agreement and Osaka Gas of Japan will take 2.32 MTPA from a similar deal. “Through the procurement of LNG from the project, Osaka Gas and Jera will each secure LNG without destination restrictions, diversify their supply sources and price indices, and enhancing the stability and flexibility of their LNG procurement,” said Jera.

GTT bunkering order

Dec 10 (LNGJ) - Gaztransport and Technigaz (GTT), the French LNG technology designer of containment systems, confirmed its growing portfolio of contracts for LNG bunkering vessels. The Chinese company Hudong-Zhonghua Shipbuilding will use GTT-designed tanks for the latest vessel ordered by Japanese shipping company Mitsui OSK Lines.

   The vessel will have total cargo tank capacity of 18,600 cubic metres and will have GTT’s Mark III system. It will be delivered in the fourth quarter of 2021 and be chartered by French energy major Total.

  “This new LNG bunker vessel project demonstrates strengthened interest from ship-owners for the use of LNG as marine fuel and contributes to the development of the associated supply chain,” said Philippe Berterottière, Chairman and Chief Executive.

LNG for bulk carrier

Dec 9 (LNGJ) - The American Bureau of Shipping has granted approval in principle to Finnish company Deltamarin and French LNG storage tank firm GTT for a dual-fuel Newcastlemax bulk carrier design with LNG capability. Deltamarin, GTT and ABS have been cooperating on the development of this LNG-fueled bulk carrier. It is intended to meet current and future environmental targets by introducing GTT membrane-type LNG tanks with LNG fuel stored at atmospheric pressure and designed to ABS Class.

   ABS said that the approval addressed the design’s introduction of a membrane fuel tank sited in the aft of the vessel. The tank design is intended to maximize cargo capacity, with the additional tank having zero impact on available cargo space or the vessel’s hull dimensions. “A design such as this would allow owners and operators to capitalize on the potential of LNG as marine fuel to help meet emissions reduction objectives without having to compromise on cargo load,” said Patrick Janssens, ABS Vice President for Global Gas Solutions.