This week

Japan LNG and energy markets
cope with quake and uncertainty

Japanese energy supplies have returned to normal after the Hokkaido Eastern Iburi Earthquake that struck a month ago and damaged an oil refinery while demonstrating the resilience of LNG and gas-fired infrastructure as well as the nation’s only small-scale liquefaction plant.

Latest News
The American Bureau of Shipping, the US maritime classification society, has granted approval to a deepwater floating liquefied natural gas production hull designed by Hyundai Heavy Industries…
The Japanese Ministry of Economy, Trade and Industry (METI) has opened its seventh LNG Producer-Consumer Conference in the city of Nagoya, marked by Japan initiating more cooperation…
Indian LNG imports rose 3.2 percent in September, the seventh straight month of increases as shipments were received from nations such as Qatar, Angola and Nigeria, while…
China Petroleum and Chemical Corp., also known as Sinopec, is in talks to buy more liquefied natural gas from Papua New Guinea from existing production and from…
Singapore LNG cargo indices, including North Asia and Dubai-Kuwait-India shipments, were steady for deliveries through December as January cargo quotes made an appearance at a high of…
Chart Industries, the US-based global manufacturer of engineered equipment for the LNG, industrial gas and energy industries reported solid third-quarter results and said it expected more LNG…
Japanese liquefied natural gas imports in September increased by 7.8 percent as shipments from the Middle East, Russia, the US and the spot market all rose as…
Woodside Petroleum, the operator of two LNG export plants in Western Australia, posted a 26 percent rise in third-quarter LNG revenue of US$881 million compared with US$697M…
Santos of Australia, a stakeholder in three liquefied natural gas export plants, posted record quarterly LNG sales revenue as its average LNG price soared to US$10.43 per…
Italian energy company Eni said it signed a contract in Mozambique to explore a new offshore block in the Northern Zambezi Basin after its successes in the…
Steelhead LNG, the Canadian project developer, said its Kwispaa floating export venture proposed for Sarita Bay at Vancouver Island has filed for regulatory permits from the provincial…

US LNG and prices

Oct 19 (LNGJ) - US LNG exports increased in the past week as five LNG carriers departed from the Sabine Pass liquefaction plant in Louisiana while one additional vessel was lifting a cargo. “The Cove Point liquefaction terminal did not have any LNG exports last week,” noted the report from the Energy Information Administration “However, the facility has completed its scheduled maintenance, and it resumed receiving natural gas feedstock deliveries by pipeline,” said the EIA. The benchmark Henry Hub natural gas spot price was last at $3.28 per million British thermal units. “Spot prices mostly rose as many regions of the country experienced significantly colder-than-normal temperatures,” added the EIA. At the Chicago Citygate, prices were last at $3.41 per MMBtu and at the Algonquin Citygate serving Boston prices went up 87 cents to $3.92 per MMBtu. “At the Transcontinental Pipeline Zone 6 trading point for New York City, prices increased 47 cents to $3.40 per MMBtu,” it said. Tennessee Zone 4 Marcellus prices increased 26 cents to $3.08 per MMBtu.

Indian gas price down

Oct 18 (LNGJ) - The Indian Ministry of Petroleum and Natural Gas has fixed its latest half-year ceiling price for domestic natural gas output for the period from October 2018 to the end of March 2019 at US$3.36 per million British thermal units on a gross calorific value (GCV) basis. The price for the same October-to-March period issued a year ago had amounted to US$6.30 per MMBtu for gas produced from discoveries in deep water, ultra-deep water and high-pressure areas.

BHP reports on LNG

Oct 17 (LNGJ) - BHP Billiton, the Australian commodities company with substantial oil and gas assets, said its natural gas production increased by 5 percent in the third quarter to 112 billion cubic feet, reflecting increased volumes in Trinidad, an LNG producer. The company also has a 17 percent stake in the oldest Australian LNG export plant, the Northwest Shelf facility in Western Australia, operated by Woodside. BHP said that the Greater Western Flank project to extend LNG production at that facility was now 95 percent complete. BHP is also selling its onshore US shale assets. “Completion of the sale of BHP’s interests in the Eagle Ford, Haynesville and Permian onshore US oil and gas assets to BP America is expected to occur by the end of October 2018,” it stated.

European LNG cargoes

Oct 16 (LNGJ) - The 155,000 cubic metres capacity carrier “British Emerald” was unloading a cargo on October 16 at the UK Isle of Grain LNG terminal in Kent from the Trinidad export plant at Point Fortin in the Caribbean, according to shipping data. The 138,100 cubic metres capacity vessel “Berge Arzew” will unload a shipment on October 18 at the Aliaga facility in Turkey from the Arzew plant in Algeria. The 140,000 cubic metres capacity carrier “Arctic Discoverer” will deliver a cargo on October 21 to the Dutch Gate terminal in Rotterdam from the Hammerfest plant in Norway operated by Equinor. The 147,200 cubic metres capacity carrier “Arctic Lady” will deliver a Norwegian cargo on October 23 to the Montoir-de-Bretagne terminal on the West Coast of France. The 172,000 cubic metres capacity vessel “Boris Vilkitsky” will unload a shipment on October 24 at the Bilbao terminal in northwest Spain from the Yamal plant in Russia where Spanish utility and natural gas supplier Naturgy Energy Group has a long-term contract. The 160,400 cubic metres capacity carrier “Melanje” will unload a shipment on October 25 at the Dutch Rotterdam terminal from the Angolan export plant at Soyo in southwest Africa.

Tohoku LNG sales deal

Oct 15 (LNGJ) - Tohoku Electric, the Japanese utility with 7.6 million individual and corporate customers in six prefectures on Honshu Island, said it signed an agreement to receive cargoes from the onshore Mozambique LNG export project in southeast Africa being developed by US company Anadarko Petroleum with feed-gas from the Area 1 licence block of the Rovuma Basin. The deliveries will amount to 280,000 tonnes per annum for 15 years from the start of 2020s. The shipments will be on a delivered basis whereby the price includes the shipping costs. Anadarko has a 26.5 percent stake in Mozambique Area 1 and Japanese trading house Mitsui holds 20 percent. Three Indian companies, Bharat Petro Resources, ONGC Videsh and Oil India Ltd., hold a further 30 percent. The other stakeholders in Area 1 are the Thai energy company PTT Exploration and Production and the Mozambique state-owned oil and gas firm ENH.

Q-Flex LNG for UK

Oct 15 (LNGJ) - The 216,200 cubic metres capacity Q-Flex carrier “Al Gharrafa” will unload a cargo on October 20 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 $8.70 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was higher at around $8.90 per MMBtu.

US LNG and spot prices

Oct 12 (LNGJ) - US LNG exports amounted to four shipments for a second week, a relatively low figure because of maintenance activities at the Cove Point plant in Maryland. The four vessels departed from the Sabine Pass plant in Louisiana while a fifth carrier was lifting a cargo at the facility through October 11, according to the weekly report from the Energy Information Administration. “There were no LNG exports from the Cove Point liquefaction terminal last week and no natural gas feedstock deliveries by pipeline as the facility continues its scheduled maintenance,” the EIA noted. The report said Henry Hub natural gas spot prices rose 11 cents to $3.37 per million British thermal units. “This week marks the fourth week of a Henry Hub price increase,” explained the report. “Persistent low storage levels, coupled with high power burn because of warmer-than-normal temperatures and record nuclear outages, have contributed to higher Henry Hub prices,” it said. Prices also increased at other markets. At the Chicago Citygate, prices rose 19 cents to $3.37 per MMBtu, while at the Pacific Gas and Electric Citygate in Northern California prices jumped 27 cents to $3.77 per MMBtu.

LNG-powered event

Oct 11 (LNGJ) - AET, one of the leading petroleum and chemical tanker owners and operators, has named its first LNG dual-fuelled Aframax vessels “Eagle Brasilia” and “Eagle Bintulu” in a ceremony at Samsung Heavy Industries shipyard in Geoje, South Korea. “Both vessels have been taken on long-term charter by Shell International Trading and Shipping Co, primarily for operations in the Atlantic Basin,” said AET, a subsidiary of the Malaysian shipping line MISC Berhad. “The vessels are equipped with conventional single-screw propulsion with a two-stroke main engine, three auxiliary engines and two auxiliary boilers, all equipped for LNG dual-fuel capability,” added AET. The LNG fuel is supplied through two type-C tanks of 850 cubic metres each arranged on the main deck aft port and starboard. The vessels are designed to receive fuel from LNG bunkering vessels via ship-to-ship transfer.

US natural gas forecasts

Oct 11 (LNGJ) - The US expects natural gas inventories to end October at the lowest levels for this time of year since 2005. “Natural gas storage inventories will total 3.3 trillion cubic feet at the end of October,” said the latest energy and winter fuel forecasts from the Energy Information Administration. “This level would be 14 percent lower than both the 2017 end-of-October level and the five-year (2013-2017) average for the end of October,” added the EIA. The report forecasts that Henry Hub natural gas spot prices would average $2.99 per million British thermal units in 2018 and $3.12 per MMBtu in 2019. Winter heating and energy prices will also rise. “US household expenditures for most major home-heating fuels will be higher this winter compared with last winter. Average increases vary by fuel and natural gas expenditures are forecast to rise by 5 percent,” said the EIA.

LNG Canada sales deal

Oct 10 (LNGJ) - Buyers in Japan are seeking LNG Canada volumes. Japanese utility Toho Gas Co. has signed a preliminary sales agreement with a subsidiary of Mitsubishi Corp. for 300,000 tonnes per annum of LNG shipments for 15 years from fiscal 2024 from the Royal Dutch Shell-led LNG Canada project in British Columbia. The proposed sale of the LNG Canada volumes is on an ex-ship (DES) basis whereby Mitsubishi arranges LNG shipping to the Toyo import terminal in Japan. A second utility, Tokyo Gas, has signed a similar preliminary deal with Mitsubishi for LNG Canada volumes amounting to 600,000 tonnes per annum. Toho Gas is the third-largest city gas provider in Japan after Tokyo Gas and Osaka Gas.

Scheduled LNG cargoes

Oct 10 (LNGJ) - The 177,000 cubic metres capacity carrier “Spirit of Hela” was unloading a cargo on October 10 at the Chinese Qingdao terminal owned by Sinopec from the Oceania nation of Papua New Guinea whose export plant is operated by ExxonMobil. The 75,500 cubic metres capacity Med-Class carrier “Cheikh Bouamama” will deliver a shipment on October 12 to the Cartagena terminal in southeast Spain from the Skikda plant in Algeria operated by Sonatrach. The 210,100 cubic metres capacity vessel “Al Ruwais” will deliver a shipment on October 14 to the Port Qasim facilities in Pakistan from the Ras Laffan plant in Qatar.

The 141,000 cubic metres capacity vessel “LNG Akwa Ibom” will unload a cargo on October 15 at the Indian Dahej terminal near Mumbai from the Bonny island plant in Nigeria. The 176,300 cubic metres capacity carrier “Rioja Knutsun” will deliver a US shipment on October 16 to the Huelva terminal in southwest Spain from the Sabine Pass plant in Louisiana, owned by Cheniere Energy. The 177,000 cubic metres capacity vessel “LNG Lagos II” will deliver a Nigerian cargo on October 17 to the Marmara Ereglisi terminal in Turkey.

The 210,000 cubic metres capacity Q-Flex carrier “Al Nuaman” is scheduled to deliver a Qatargas cargo on October 20 to the Belgian Zeebrugge terminal. The 150,000 cubic metres capacity carrier “Ob River” will unload a shipment on October 20 at the Japanese Mitzushima terminal owned by Nippon Oil from the Russian Sakhalin Island plant.

Pluto LNG contract

Oct 9 (LNGJ) - Woodside Petroleum, the operator of the North West Shelf and Pluto LNG plants in Western Australia, said it had selected US LNG engineer Bechtel Inc. as the preferred contractor for the proposed expansion of its single-Train Pluto facility. Woodside is proposing the construction of a second processing Train with capacity of up to 5 million tonnes per annum. Woodside Chief Executive Peter Coleman said expanding the Pluto plant was key to realising the company’s vision for the Burrup Hub. “Expanding Pluto LNG will provide the necessary infrastructure to commercialise Western Australian gas resources for years to come,” said Coleman. “We look forward to progressing the Train 2 concept definition work and continuing to build our relationship with Bechtel,” he added. A final investment decision on the expansion is due by 2020 and Train 2 could be on stream by 2024.

LNG cargo deliveries

Oct 8 (LNGJ) - The 160,500 cubic metres capacity carrier “Sonangol Etosha” is scheduled to unload a cargo on October 10 at the Indian Hazira terminal, operated by Shell India, from the Anglo LNG plant in southwest Africa. The 148,300 cubic metres capacity vessel “LNG Imo” will deliver a shipment on October 12 to the French Montoir-de-Bretagne facility on the Atlantic Coast from the Nigerian plant on Bonny Island. The 147,200 cubic metres capacity vessel “Arctic Princess” will unload a cargo on October 12 at the Huelva terminal in southwest Spain from the Hammerfest plant in Norway operated by Equinor. The 160,000 cubic metres capacity carrier “Asia Vision” is scheduled to unload a shipment on October 15 at the Himeji import terminal in Japan from the Wheatstone export plant in Western Australia operated by Chevron Corp. The 165,500 cubic metres capacity vessel “Meridian Spirit” is scheduled to arrive on October 17 at the US export plant at Cove Point in Maryland to lift a cargo following the facility’s scheduled shut-down for maintenance. The 140,000 cubic metres capacity carrier “Arctic Voyager” will deliver a Norwegian cargo on October 18 to the Salvador plant in the northeast Brazilian state of Bahia. The 160,500 cubic metres capacity vessel “Sonangol Sambizanga” will unload an Angolan shipment on October 25 at the Mina Al Ahmadi import facility in Kuwait.

US LNG and prices

Oct 5 (LNGJ) - US LNG exports declined in the past week to four ship loads, all from the Sabine Pass plant in Louisiana, versus five cargoes the previous week. “No LNG vessels departed from Cove Point in Maryland last week because the facility is undergoing scheduled maintenance,” said the Energy Information Administration in its weekly report. “The facility has not received any natural gas feedstock pipeline deliveries since September 21,” it noted. The EIA also reported that Sabine Pass owner Cheniere Energy had filed a request with regulators for commissioning activities on Train 5. “The first LNG export cargo from Train 5 is expected before the end of this year,” said the EIA, taking Sabine Pass output to 22.5 million tonnes per annum from 18 MTPA. That’s as US natural gas spot prices jumped at most locations on concerns over falling storage levels. Henry Hub spot prices rose from $3.13 per million British thermal units to $3.26 per MMBtu. “Net injections to working gas totaled 98 billion cubic feet (Bcf) for the week,” said the EIA. “Working natural gas stocks are 2,866 Bcf, which is 18 percent lower than the year-ago level and 17 percent lower than the five-year (2013-2017) average,” it added.

US LNG cargo for UK

Oct 4 (LNGJ) - The 174,000 cubic metres capacity carrier “Maran Gas Spetses” is scheduled to deliver a US cargo on October 8 to the UK Dragon LNG import terminal at Milford Haven in Wales, owned by Royal Dutch Shell and Petronas of Malaysia. The carrier departed on September 13 from the US Sabine Pass export plant in Louisiana, owned by Cheniere Energy. The delivery was heading for the UK as the nation’s National Balancing Point benchmark natural gas price was at the equivalent of $9.10 per million British thermal units, while one of the main continental European prices, the Dutch Title Transfer Facility (TTF), was slightly higher at the equivalent of $9.15 per MMBtu.

NYK charter to Total

Oct 3 (LNGJ) - Japanese shipping company Nippon Yusen Kabushiki Kaisha (NYK Line) signed a contract with a subsidiary of French energy major Total to charter a newbuild LNG carrier for seven years with an optional extension period of one year. NYK said the new vessel with capacity of 174,000 cubic metres capacity would be built in South Korea by Samsung Heavy Industries and delivered in 2021. “NYK will continue to provide flexible and optimal LNG transport options that meet customers’ diversifying needs and continue the company’s efforts to contribute to a stable supply of LNG as environment-friendly energy,” said the Japanese company.

Russian LNG fuel plan

Oct 2 (LNGJ) - Russian natural gas company Gazprom has held a ceremony marking the start of construction of the first LNG filling station for trucks near the town of Okulovka on the new Moscow-St. Petersburg highway, known as the M11. Gazprom is building a network of LNG and natural gas filling stations in cooperation with the Russian state highways company to encourage trucking companies to switch to cleaner gas fuel from diesel. “The conversion of trucks to natural gas will help improve the environmental situation in transit cities and towns and cut down transport costs due to fuel savings,” said Vitaly Markelov, Gazprom Deputy Chairman.

Tellurian takes loan

Oct 1 (LNGJ) - Tellurian Inc., developer of the Driftwood LNG export project in Louisiana, said its subsidiary, Tellurian Production Holdings, entered into an agreement providing for a loan organized by US investment bank Goldman Sachs. “The credit agreement provides for term loans in an aggregate principal amount of $60 million to be used for expenditures and certain other expenses associated with the development of the oil and gas properties of the borrower and its subsidiaries and to pay fees and expenses,” said Tellurian.

US LNG exports steady

Sept 28 (LNGJ) - US LNG exports amounted to five cargoes over the past week, the same as the previous week. Four vessels departed Sabine Pass in Louisiana and two more were lifting cargoes there, while one vessel left from Cove Point in Maryland, now undergoing maintenance until mid-October, according to the weekly report from the Energy Information Administration, also covering storage and prices. “The average rate of net injections into storage is 16 percent lower than the five-year average so far in the 2018 refill season, which covers April through October,” said the EIA. “If the rate of injections into working gas matched the five-year average of 10.7 billion cubic feet per day for the remainder of the refill season, total inventories would be 3,194 Bcf on October 31, which is 621 Bcf lower than the five-year average of 3,815 Bcf,” it added. Natural gas spot price movements were mixed. The Henry Hub spot prices rose from $3.06 per million British thermal units to $3.13 per MMBtu. “At the Chicago Citygate, prices decreased 11 cents from $3.00 per MMBtu to $2.89 per MMBtu,” said the report. Appalachian shale-gas prices plunged. “Prices at Dominion South in southwest Pennsylvania fell 41 cents from $2.57 per MMBtu to $2.16/MMBtu,” it added.

Qatar expansion plan

Sept 27 (LNG) - Qatar Petroleum said its decision first made last year to increase production capacity at the Ras Laffan complex from the current 77 million tonnes per annum would now include a fourth liquefaction Train to take total output to 110 MTPA, an increase of 43 percent. “Qatar Petroleum has embarked on a project to develop additional gas from the North Field and build three new LNG mega-trains. Based on the good results obtained through recent additional appraisal and testing, we have decided to add a fourth LNG mega-train and include it in the ongoing front-end engineering of the project,” said Qatar Petroleum President and Chief Executive, Saad Sherida Al-Kaabi. “When the project is completed and all four new trains are online, Qatar's LNG production capacity will reach 110 MTPA. This will increase Qatar's total production capacity from 4.8 to 6.2 million barrels of oil equivalent per day,” added Al-Kaabi.

Equinor-Aker accord

Sept 26 (LNGJ) – Equinor, the Norwegian energy major and European LNG export plant operator, has signed a strategic global collaboration agreement with engineering company Aker Solutions to ensure mutual and continuous improvement on current and future subsea projects within the domains of quality, technology, execution and cost. “Aker Solutions and Equinor's ongoing collaboration has consistently generated mutually beneficial technology developments, working process simplifications and standardizations,” said Luis Araujo, Chief Executive of Aker. “Aker’s newest subsea production system with vertical trees and associated tools were developed in close collaboration with Equinor, designed to be more efficient and reduce life-cycle costs,” explained the companies.

LNG deliveries for China

Sept 25 (LNGJ) - The 150,000 cubic metres capacity vessel “Hoegh Esperanza” is scheduled to unload a cargo on September 25 at the Chinese Ningbo terminal in Zhejiang province from the Queensland Curtis plant in Gladstone, Australia. The 173,400 cubic metres capacity carrier “Murex” was unloading a shipment on September 26 at the Tangshan terminal in northern China from the Wheatstone plant operated by Chevron in Western Australia. The 147,000 cubic metres capacity vessel “Min Rong” will deliver a shipment on September 28 to the Fujian terminal from the Tangguh export plant in Indonesia, operated by BP. The 215,000 cubic metres capacity Q-Flex vessel “Al Utouriya” is scheduled to deliver a cargo on September 29 to the Shenzhen terminal in southeast China from Ras Laffan in Qatar. The 174,100 cubic metres capacity carrier “Cesi Gladstone” will unload a shipment on October 3 at the Chinese Tianjin terminal, owned by Sinopec, from the Australia Pacific plant at Gladstone in Queensland. The 174,000 cubic metres capacity carrier “Maran Gas Ulysses” will deliver a cargo on October 2 to the Yung-An terminal in Taiwan from the Gorgon plant on Barrow island in Western Australia.

Shipment deliveries

Sept 24 (LNG) - The 172,636 cubic metres capacity carrier “Fedor Litke” is scheduled to arrive on September 29 at the Zeebrugge terminal in Belgium with a shipment from the Yamal plant in Russia, according to shipping data. The 210,100 cubic metres capacity Q-Flex carrier “Um Al Amad” will unload a shipment on October 2 at the Thai terminal at Map ta Phut from the Ras Laffan plant in Qatar. The 145,700 cubic metres capacity “LNG Benue” will unload a shipment on October 4 at the Pakistani import facilities at Port Qasim, east of Karachi, from Nigeria LNG at Bonny Island. The 210,100 cubic metres capacity vessel “Al Ghariya” will unload a Qatargas cargo on October 8 at the Incheon terminal in South Korea. The 165,000 cubic metres capacity carrier “Marib Spirit” will deliver a Nigerian cargo on October 8 to the Mina al Ahmadi terminal in Kuwait. The “LNG River Niger” will unload a Nigerian cargo on October 8 at the Mexican Altamira import terminal on the Gulf of Mexico.

US LNG and gas prices

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.

Woodside-Uniper deal

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.

Chinese FLNG power

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.

Arctic LNG II boost

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.

LNG contract for Sener

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.

LNG cargo deliveries

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.

Pieridae Energy post

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.

LNG carrier newbuilds

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.

US LNG exports steady

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.

Asian LNG shipments

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.

Scheduled LNG cargoes

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.

LNG cargo deliveries

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.

GTT tanks for Greeks

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.

Egyptian gas ramps up

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.

US LNG exports fall

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.

Rolls-Royce LNG boost

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.

Equinor raise $1Bln

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.

Naturgy charters FSRU

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.

Shipments to Europe

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.

Cargo deliveries in Asia

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.

LNG cargo deliveries

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.

September LNG cargoes

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.

US LNG and shale update

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.

US LNG project safety

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.

LNG cargo deliveries

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.

LNG plea by Senators

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.

Shell-Total LNG deals

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.”