This week

IEA World Energy report has
many improbable outcomes

Liquefied natural gas and pipeline supplies have experienced an even sharper increase in prices in 2021 than oil, driven by a combination of circumstances that included a strong recovery in demand in North Asia, southeast Asia and Europe, unseasonal weather and planned and unplanned capacity outages.

Latest News
Australian coal-seam gas producer Senex Energy said it had received an A$815 million (US$605M) takeover proposal from POSCO International Corp., the South Korea industrial company, seeking to…
Santos, the Australian liquefied natural gas operator of plants in Queensland and the Northern Territory, has hailed the judicial review decision to uphold the approval of the…
Free ReadTurkey, one of the largest LNG importers in the Euorpean region, has awarded a European-US consortium a significant contract for the subsea development of the nation’s largest-ever…
Arctic LNG II project developer Novatek hosted a forum for contractors and suppliers, attended by more than 160 companies, to keep the venture on track for a…
Liquefied natural gas liftings from global plants will be lower in the coming week as prices for Asia jumped 5 percent and US LNG derivatives increased by…
MISC Group, the Malaysian shipping company, has completed its first liquefied natural gas bunkering operation in US waters off Port Canaveral in Florida for one of the…
Free ReadABB, the Swiss-Swedish power systems company, said its turbocharging unit had won a contract to equip parts of the new propulsion systems for six liquefied natural gas…
Gunvor, the growing liquefied natural gas market participants and one of the world’s biggest independent energy traders, has reportedly cut derivative trading positions after the natural gas…
Kosmos Energy, the US-based shareholder in the floating liquefied natural gas joint venture offshore the West African nations of Mauritania and Senegal, has acquired bigger shareholdings in…
Golar LNG said it entered into swap arrangements to hedge part of its Dutch Title Transfer Facility (TTF) price exposure for the incremental 200,000 tonnes per annum…

Wetselaar praised

Oct 18 (LNGJ) - Royal Dutch Shell Chief Executive Ben van Beurden has praised the contribution to LNG development at Shell of Integrated Gas and Renewable and Energy Solutions director Maarten Wetselaar, who will leave the company on October 25 after more than 25 years of service. Wetselaar will join Spanish energy company Cepsa as Chief Executive from January 2022.

   “I am immensely grateful to Maarten for his outstanding contribution to Shell and our customers, for his vision and drive in shaping a world-class LNG portfolio, and for laying the foundations of our power and renewable solutions business. I wish him well in his new role,” stated Van Beurden. Wael Sawan will replace Wetselaar as head of the Integrated Gas and Renewables division.

KBR settlement

Oct 15 (LNGJ) - KBR said a liquefied natural gas engineering joint venture in which the Houston-based firm had a 30 percent ownership interest, JKC Australia LNG, had signed a binding settlement agreement resolving outstanding disputes over the Ichthys LNG project near Darwin. KBR’s partners were Japan’s JGC Corp and Chiyoda Corp.

   “We are pleased to announce the resolution of disputes between JKC and its client,” said Stuart Bradie, KBR President and Chief Executive of the Ichthys LNG plant of Inpex Corp. of Japan and France’s TotalEnergies. However, KBR noted that this deal did not affect the continuing pursuit of JKC's claim against its sub-contractor associated with a combined cycle power plant project.

TotalEnergies strategy

Oct 15 (LNGJ) - TotalEnergies Chief Executive Patrick Pouyanné told a virtual energy conference that while everyone wanted an energy transition to cleaner fuel and there was “huge pressure” to quit fossil fuels it remained a fact that these same fossil fuels currently represent 80 percent of the energy supply today on the planet. Regarding decarbonization strategies, Pouyanné said carbon offsets do not help and TotalEnergies remained focused on cutting emissions directly from its operations. “We are building a multi-energy company with oil and gas, but also renewables and electricity,” added Pouyanné.

   The CEO said he remained “bullish” on natural gas, and LNG in particular, because TotalEnergies sees natural gas as the right choice for the energy transition. TotalEnergies has worldwide LNG investments, including the currently stalled liquefaction and export project in Mozambique.

Q-Flex LNG for UK

Oct 14 (LNGJ) - The 210,100 cubic metres capacity Q-Flex LNG carrier, the “Duhail”. is scheduled to deliver a cargo on October 21 to the UK South Hook import terminal at Milford Haven in Wales from the Ras Laffan plant in Qatar. The shipment will be arriving in the UK after the National Balancing Point (NBP) benchmark natural gas price rebounded this week, though was still down from record levels reached on October 6.

Ravenna ship naming

Oct 13 (LNGJ) - Italian utility Edison and Knutsen OAS Shipping of Norway have held a naming ceremony at the northeast Italian port of Ravenna for the 30,000 cubic metres capacity LNG carrier, “Ravenna Knutsen”. The vessel will serve a small-scale LNG import terminal joint venture at the port.

   The terminal will supply at least 12,000 trucks and up to 48 ferries per annum with LNG fuel. Edison and Spain’s gas grid operator Enagás are shareholders in the Italian facility and are cooperating on developing small-scale LNG use in the Mediterranean region of both Italy and Spain. “The vessel is pivotal in the first integrated small-scale LNG logistics chain in Italy, which Edison has built to promote the decarbonisation of maritime and heavy transport,” said Edison.

Nova Energies contract

Oct 12 (LNGJ) - Technip Energies, the engineering company whose current contracts include the Arctic LNG II export project in Russia, has created a joint venture, Nova Energies, to become the main carbon-capture project firm in Russia with Arctic LNG engineering partner, the Russian company Nipigas. The Nova joint venture has been chosen by Russia’s largest petrochemicals company, the Sibur Group, to study potential carbon-capture solutions at its largest plant.

   “We are pleased to announce that the Nipigas team in partnership with Technip Energies has begun the development of a project to reduce carbon emissions of the largest petrochemical enterprise in our country and at the main production asset of Sibur,” said Dmitry Evstafiev, General Director of Nipigas. “This project gives Nova Energies an opportunity to contribute to the development and to take a leading position in the market for the energy transition in our country,” added Evstafiev.

Qatar Energy debuts

Oct 11 (LNGJ) - Qatar Petroleum, owner of the world’s largest LNG export plant at Ras Laffan in the Gulf, has changed its name to Qatar Energy. “It’s more of a reflection of what we’re actually doing that wasn’t reflected by the name that we had,” said President and Chief Executive Saad Sherida Al-Kaabi.

   Al-Kaabi, who is also the Qatari Minister of State for Energy, said the new Qatar Energy state-owned company also wanted to be more efficient and environmentally sound as it expanded production from 77 million tonnes per annum to an eventual 127 MTPA by 2027. Al-Kaabi added that regasified LNG, which generates lower emissions than other fossil fuels such as oil and coal, would remain part of the global energy mix for years to come even as the world slowly shifted to renewable energy sources.

Qatar cargo for UK

Oct 11 (LNGJ) - The 261,000 cubic metres capacity Q-Max LNG carrier, the “Mekaines”. is scheduled to deliver a cargo on October 14 to the UK South Hook import terminal at Milford Haven in Wales from the Ras Laffan plant in Qatar.

   The shipment was lifted on September 26 and is arriving in the UK as the National Balancing Point (NBP) benchmark natural gas price was quoted at the equivalent of $30.25 per million British thermal units, down from last week’s record levels.

Alaska LNG stirs

Oct 8 (LNGJ) - Alaska Gasline Development Corp. (AGDC), the state-run body and owner of the Alaska LNG project which has been dormant because of the high development costs, has released a consultancy report detailing the environmental benefits achieved by building the export plant utilizing North Slope natural gas to replace high-emissions coal in Asia. “Alaska has some of the world’s strictest environmental laws, and Alaska natural gas should be a key component of any realistic energy roadmap,” said Alaska Governor Mike Dunleavy.

   AGDC has all its regulatory permits covering three liquefaction Trains with 20 million tonnes per annum of capacity, two 240,000 cubic metres capacity storage tanks as well as a 807-mile natural gas pipeline from Prudhoe Bay to Nikiski on the Kenai Peninsula. AGDC President Frank Richards said the justification for Alaska LNG was a “compelling” one. “This timely report uses respected and transparent methodologies to quantify the value of replacing high-emissions energy sources in foreign markets with the low-emissions at Alaska LNG,” added Richards.

Golar LNG bonds

Oct 7 (LNGJ) - Golar LNG Limited, the carrier fleet owner and project developer, has successfully placed US$300 million in senior unsecured bonds in the Nordic bond market. “The bonds will mature in October 2025 and bear interest of 7.00 percent per annum,” said Golar.

   “Net proceeds from the bond issue will be applied towards the refinancing of the company’s outstanding convertible bonds maturing in February 2022 and general corporate purposes,” it added. An application will be made for the bonds to be listed on the Oslo Stock Exchange. The Nordic banks, DNB Markets and Pareto Securities AS, acted as global coordinators and Danske Bank and Nordea Bank as joint lead managers of the placement.

Stolt-Nielsen boost

Oct 6 (LNG) - Stolt-Nielsen, the London-headquartered Norwegian company with interests including terminals, shipping and the Avenir small-scale LNG business, said third-quarter net profits rose to $33.5 million from revenues of $580.9M, an increase on the prior-year quarter’s earnings of $30.36M and revenues of $474.0M.

   “Momentum at Avenir LNG has accelerated with the commissioning of the Sardinia terminal and multiple ship deliveries throughout the second half of 2021, said Niels G. Stolt-Nielsen,company Chief Executive. “The first two vessels are already employed under solid charter arrangements with Petronas (Malaysia) and New Fortress Energy (USA). The third ship, ‘Avenir Aspiration’, now due for delivery, will enter into service to supply our HIGAS terminal in Sardinia, which began commercial operations in August,” added the CEO.

Nord Stream II test

Oct 5 (LNGJ) - Nord Stream II, the Gazprom-led pipeline natural gas project taking additional gas from Russia to Germany and the European Union in competition to LNG, has started filling one of its two pipelines ahead of commercial operations scheduled for year-end. The pipeline will double Russia’s existing gas pipeline export capacity under the Baltic Sea to 110 billion cubic metres, equal to more than a half of Russia’s current total pipeline gas supplies to Europe.

Qatari LNG for UK

Oct 4 (LNGJ) - The 258,000 cubic metres capacity Q-Max LNG carrier “Al Ghuwairiya” is scheduled to deliver a cargo on October 6 to the UK South Hook import terminal at Milford Haven in Wales from the Ras Laffan plant in Qatar.

   The shipment was lifted on September 16 and is arriving in the UK as the National Balancing Point (NBP) benchmark natural gas price was quoted at the equivalent of $32.65 per million British thermal units, close to last week’s all-time high for modern times.

Greek link to Russia

Oct 1 (LNGJ) - Russian pipeline natural gas supplier to Western Europe, Gazprom, has celebrated the 25th anniversary of its supply contract with European Union nation Greece, which is currently planning a floating LNG import project offshore the port of Alexandroupolis and has imported cargoes since 2000 to the existing onshore terminal at Revithoussa, west of Athens.

   “Over the past quarter of a century, Gazprom has exported upwards of 54 billion cubic metres of gas to this country and the annual amount of supplies has grown by more than 15 times,” said Gazprom. “All these years, the cooperation has relied on a long-term contract with the Greek operator DEPA. The contract, which was signed in 1988, is still in effect,” it added. “Gas from Russia is delivered via the TurkStream gas pipeline and the national gas transmission system of Bulgaria,” the Russians noted.

Charter rates rise

Sept 30 (LNJ) - Shipping spot charter rates for LNG carriers soared in the West of Suez market with rates rising by up to $18,500 per day to be between $82,000 per day and $78,000 per day for vessels of 155,000-165,000 cubic metres capacity.

   East of Suez spot charter rates showed a more moderate increase of $1,500 per day to be quoted by shipbrokers at between $64,000 per day and $60,000 per day. One-year charter rates for the most modern vessels were unchanged at about $93,000 per day.

Qatar’s China deal

Sept 29 (LNGJ) - Qatar Petroleum entered into a long-term sale and purchase agreement with China National Offshore Oil Co.’s trading and marketing unit for the supply of 3.5 million tonnes per annum of LNG over a 15-year period starting in January 2022. The SPA was signed during a virtual ceremony involving Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and who is also President and Chief Executive of Qatar Petroleum, and Wang Dongjin, the Chairman of CNOOC.

   “We are pleased to further build upon our strong relationship with CNOOC with the signing of this new long-term LNG supply agreement,” said Al-Kaabi. “We are especially proud to continue to meet the People's Republic of China's growing need for cleaner energy that LNG provides, and are thankful to CNOOC for partnering with us as their trusted LNG supplier,” he added.

US LNG for UK

Sept 29 (LNGJ) - The 145,000 cubic metres liquefied natural carrier “Methane Lydon Volney” was discharging a US cargo on September 29 at the Isle of Grain import terminal on the Medway-Thames estuary, southeast of London. The vessel carrying a cargo lifted from the Sabine Pass plant in Louisiana docked after the UK National Balancing Point benchmark natural gas price hit a seasonal record on September 28.

Sempra LNG evolves

Sept 28 (LNGJ) - Sempra Energy, owner of the Cameron LNG export plant in Louisiana and the Costa Azul project in Mexico, has received all third-party approvals and satisfied all material closing conditions of the agreement to sell a 20 percent non-controlling interest in Sempra Infrastructure to US investment fund Kohlberg Kravis Roberts, now known as just KKR, for $3.37 billion in cash.

   The last move was the de-listing from the Mexican stock exchange of subsidiary, Infraestructura Energética Nova (IEnova), the owner of the Costa Azul venture and pipeline and energy assets in Mexico. The new Sempra North American LNG and gas platform called Sempra Infrastructure Partners will group the San Diego, California-based company’s subsidiaries currently held by Sempra LNG and the IEnova unit.

BP Perth Basin LNG

Sept 27 (LNGJ) - Beach Energy has entered into a preliminary supply accord with UK major BP’s Singapore trading arm for all of Beach’s volumes from the Waitsia Gas Project in the onshore Perth Basin of Western Australia being developed with Japanese partner Mitsui. Beach Energy said the heads of agreement contained all material terms and conditions for BP purchasing all of Beach's 3.75 million tonnes per annum from the second half of 2023.

   The feed gas will be processed at the North West Shelf liquefaction plant operated by Woodside under a tolling agreement. Supply will be delivered on a free-on-board (FOB) basis, linked to both Brent crude and the Japan-Korea Marker spot cargo price indices, from the NWS facilities in Karratha where BP is already one of six shareholders.

Shell’s Egyptian sale

Sept 24 (LNGJ) - Shell, which has operated in Egypt for 110 years, has completed the sale of its upstream assets in the Egyptian Western Desert to a consortium as the Anglo-Dutch company now plans to concentrate on other Egyptian hydrocarbon basins and on its LNG business. The Shell sale was to Egypt-based Cheiron Petroleum Corp. and UK-listed Cairn Energy Plc for $646 million and additional payments of up to $280M between 2021 and 2024, contingent on the oil price and the results of further exploration.

   “With this transaction Shell is refocusing its business in Egypt on our existing infrastructure position in the West Delta Deep Marine, the Harmattan Deep Project and exploration acreage in the new seven blocks in the Nile Delta, West Mediterranean and the Red Sea, in our Egyptian LNG (ELNG) joint venture and in Downstream through Shell Lubricants Egypt,” said Shell.

Charter rates steady

Sept 23 (LNJ) - Shipping spot charter rates for LNG carriers are little changed since last week. Spot charter rates are still between $63,500 per day and $59,500 per day in the West of Suez market for vessels of 155,000-165,000 cubic metres capacity.

   East of Suez spot charter rates are again quoted by shipbrokers at between $60,500 per day and $56,500 per day. One-year charter rates for the most modern vessels were unchanged at about $93,000 per day.

Temasek yard move

Sept 22 (LNGJ) - Temasek, the Singapore wealth fund and owner of the island nation’s LNG company Pavilion Energy, has made a mandatory conditional general cash offer to acquire all the issued and paid-up ordinary shares in Sembcorp Marine, the main shipyard specializing in offshore platforms and LNG projects such as ship conversions and LNG-powered tugs.

   The move was required under listing rules after Temasek's stake in Sembmarine was raised to 46.6 percent. The Temasek offer through its indirect wholly owned subsidiary, Startree Investments, is at a price of S$0.08 per share in cash. Sembmarine expects to distribute the offer document between October 6 and October 13 and the offer will close 28 days later. Morgan Stanley Asia has been appointed as sole financial advisor for the mandatory offer.

Cuban well progress

Sept 21 (LNG) -Australian company Melbana Energy is making progress with its Alameda-1 oil and natural gas exploration well in Cuba. “The well has reached its first planned casing point at a depth of 457 metres, after drilling without incident or significant disruptions through the shallow section. Consistent with offset wells, minor residual oil shows were observed in cuttings,” said Melbana.

   “It has been a good first week with the rig and the team advancing the program at a steady pace and safely,” said Melbana Executive Chairman Andrew Purcell. “We have not had any significant interruptions or delays to date. We can also confirm that the remaining members of Melbana’s project team are now in country and out of quarantine so it is great to have this additional expertise and capability available as this drill program ramps up. We will continue to provide regular operational updates as the program unfolds,” he added.

Mozambique on track

Sept 20 (LNGJ) - Mozambique said the offshore Coral South floating LNG production project is still scheduled for start-up in 2022, with the FLNG hull scheduled to arrive from South Korea before the end of 2021. However, the Mozambique onshore project being developed by the joint venture led by French major TotalEnergies from Rovuma Basin Area 1 resources is still paused because of insecurity in the north of the country.

   “Coral South commercial production remains a target for 2022. This is the very first step, but a significant step for Mozambique to join the LNG producing countries,” said the Minister of Mineral Resources and Energy, Ernesto Max Elias Tonela. The FLNG project will produce 3.4 million tonnes per annum from the Rovuma Basin Area 4 joint venture being developed by Italian energy company Eni and partners. UK major BP has signed a 20-year agreement to purchase all of the Coral South output.

Romanian LNG fuel

Sept 17 (LNGJ) - OMV Petrom, the Romanian subsidiary of Austrian oil and gas group OMV, has conducted the first LNG delivery and fuel operation at the Damen Shipyard in the Romanian Black Sea port of Mangalia, the largest shipyard in southeast Europe. “The product was used to fuel a ship equipped with LNG engines. It is the first ship of this type, built in Romania, in the Damen Shipyard,” said OMV Petrom.

   Damen is building two LNG-Hybrid RoRo Ferries for Canadian company Seaspan. The vessel that received the LNG in a jetty-to-ship operation from an OMV LNG supply truck tanker was the “Seaspan Trader”, which is undergoing sea trials. The vessel is scheduled to join Seaspan’s fleet later in 2021.

Spot ship rates down

Sept 16 (LNGJ) - Shipping spot charter rates for LNG carriers dropped in the past week by $3,500 per day to between $63,500 per day and $59,500 per day in the West of Suez market for vessels of 155,000-165,000 cubic metres capacity.

   East of Suez spot charter rates fell by the same amount to be quoted at between $60,500 per day and $56,500 per day, according to London brokers. One-year charter rates for the most modern vessels were unchanged at about $93,000 per day.

LNG cargoes for EU

Sept 15 (LNGJ) – Two LNG cargoes are heading for Belgium and France with much needed deliveries. The 170,000 cubic metres capacity vessel “LNG Abalamabie” is scheduled to deliver a shipment on September 22 to the French terminal at Fos sur Mer west of Marseille from the Bonny Island plant in Nigeria. The 206,000 metres capacity Q-Flex carrier “Al Kattiyah” is scheduled to discharge a cargo on September 23 at the Zeebrugge import terminal in Belgium from Ras Laffan in Qatar.

   The shipments are bound for the European Union as the Continental European benchmark price, the Dutch Title Transfer facility (TTF), surged to a new summer season record of the equivalent of $22.75 per million British thermal units amid very low EU LNG storage inventories.

Four LNG charters

Sept 14 (LNGJ) - Mitsui OSK Lines, the Japanese shipping company, has signed time charter contracts for four newbuild LNG carriers with a subsidiary of Russian LNG plant owner and developer Novatek. MOL said its vessels with 174,000 cubic metres capacity would be constructed in South Korea by Daewoo Shipbuilding and Marine Engineering and are scheduled for delivery in 2024.

   “The newbuilding LNG carriers are equipped with the cutting-edge MAN Energy Solutions engines, which offer major improvements in fuel efficiency,” said MOL. “There is also a new design that generates less boil-off gas from cargo tanks through the use of the re-liquefaction unit on board, and a generator system that uses the rotating propeller shaft for power generation,” it added.

Sonatrach ethics code

Sept 13 (LNGJ) - Sonatrach, the state-owned Algerian supplier of pipeline natural gas to Europe and LNG cargoes from its Arzew and Skikda export plants, has issued a new code of ethics to achieve more transparency.

   “The Group's ethics are reflected first and foremost in our commitment to conduct our activities with integrity, transparency, fairness and excellence to enable our company to accomplish its mission in the service of the development and prosperity of the country,” stated Chief Executive Toufik Hakkar. “This code is the fruit of a collective reflection around the values and principles which should guide our behavior and inspire our decisions, in order to strengthen the confidence of stakeholders,” added Hakkar.

Baltic LNG contract

Sept 10 (LNGJ) - Gazprom has awarded an engineering, procurement and construction contract for the construction of a Baltic Coast liquefied natural gas plant with 13 million tonnes per annum of output within the Gas Processing Complex (GPC) at Ust-Luga, west of St. Petersburg. A consortium comprising Germany’s Linde and Turkish company Renaissance Heavy Industries will build the plant and handle the installation of two LNG production Trains.

   “A technology patented in Russia will be used to produce this LNG,” said Gazprom. “The patent holders for the technology are Gazprom and Linde,” it added. The LNG plant will operate within the GPC facility near Ust-Luga operated by RusKhimAlyans, a joint venture of Gazprom and RusGazDobycha.

Charter rates fall

Sept 9 (LNGJ) - Shipping spot charter rates for LNG carriers dropped in the past week by $3,000 per day to between $67,000 per day and $63,000 per day in the West of Suez market for vessels of 155,000-165,000 cubic metres capacity.

   East of Suez spot charter rates fell by the same amount to be quoted at between $64,000 per day and $60,000 per day, according to London brokers. One-year charter rates for the most modern vessels were unchanged at about $93,000 per day.

Bangladesh terminal

Sept 8 (LNGJ) - The government of Bangladesh has short-listed eight global companies, including US and European majors as well as various Japanese companies, to develop the nation’s first onshore liquefied natural gas import terminal.

   The Bangladesh Energy and Mineral Resources Division of the government said it would make the final decision soon on the group chosen to build the facility near the coastal town of Cox’s Bazar on the Bay of Bengal. The proposed new onshore terminal would handle 7.5 million tonne per annum of LNG, which is around the same as the two floating storage and regasification units (FSRUs) currently deployed.

Q-Max LNG for UK

Sept 7 (LNGJ) - The 261,980 cubic metres capacity Q-Max LNG carrier “Al Dafna” is scheduled to deliver a cargo on September 10 to the UK South Hook import terminal at Milford Haven in Wales from the Ras Laffan plant in Qatar.

   The shipment, lifted on August 23, is arriving in the UK as the National Balancing Point (NBP) natural gas price was at the equivalent of $18.55 per million British thermal units, a new summer season high for modern times.

BP premium cargo

Sept 6 (LNGJ) - BP Singapore said it delivered the UK major’s first carbon-offset liquefied natural gas cargo to CPC Corp. of Taiwan at its Yung An import terminal. The premium cargo transaction includes a self-imposed tax as a “mea culpa” for carbon emissions.

   “This is BP’s first delivery of carbon-offset LNG in the Asia-Pacific region, following its ‎first delivery globally to Sempra LNG at the Energia Costa Azul terminal in Mexico in ‎July 2021,” said BP. “This new carbon-offset LNG offer strengthens BP’s natural gas offering in ‎the region,” it added.

Trans-shipment stake

Sept 3 (LNGJ) - Mitsui OSK Lines (MOL) of Japan has signed an accord with the Russian state leasing company (GTLK) for the possible acquisition of a 49 percent stake in two LNG floating storage units (FSUs) currently being built and with 100 percent ownership held by GTLK. The FSUs will have the world’s largest storage capacity of about 360,000 cubic metres and will be deployed by Russian natural gas company Novatek at Kamchatka and Murmansk for LNG cargo trans-shipments from the existing Yamal plant and Arctic II facility now under construction.

   The two FSUs are being built by Daewoo Shipbuilding and Marine Engineering of South Korea. “By transporting LNG via the Northern Sea Route and by trans-shipping at Kamchatka and Murmansk, it is expected to reduce voyage costs and greenhouse gas emissions. In addition, securing LNG at a location close to a point of consumption is believed to increase security and reliability of energy supply,” explained MOL.

Charter rates slip

Sept 2 (LNGJ) - Shipping spot charter rates for LNG carriers declined by $2,000 per day to between $70,000 per day and $66,000 per day in the West of Suez market for vessels of 155,000-165,000 cubic metres capacity. East of Suez spot charter rates fell by the same amount to be quoted at between $67,000 per day and $63,000 per day, according to London brokers. One-year charter rates for the most modern vessels were unchanged at about $93,000 per day.

Inpex carbon offsets

Sept 1 (LNGJ) - Inpex Corp, the Japanese energy company and operator of the Ichthys LNG export plant at Bladin Point, said it signed a firm supply agreement with Iruma Gas, the utility in Iruma City in east-central Honshu, for LNG cargoes with carbon offsets. Iruma Gas supplies domestic gas to Iruma residents who with four neighbouring cities signed a joint declaration in February 2021 to support lower carbon aims.

   Inpex has been working closely with city-gas operators in Japan to supply wholesale natural gas at a higher price because of a self-imposed carbon tax. The LNG volumes to be supplied to Iruma Gas were not disclosed. “The neutrality of the natural gas to be supplied through this agreement is based on carbon credits certified by a credible certifier as deriving from carbon-dioxide reduction efforts at forest conservation projects, etc. based around the world where greenhouse-gas emissions have been offset throughout the entire value chain process from development to combustion,” explained Inpex.

LNG for EU ports

Aug 31 (LNGJ) - While most LNG cargoes were still pointed at Asia, several were heading for Europe with the 164,700 cubic metres capacity carrier “LNG Fukurokuju” currently unloading a US shipment at the Greek import terminal at Revithoussa from the Cove Point plant in Maryland, according to shipping data. Another cargo was scheduled to arrive on September 3 at the French Atlantic Coast import terminal at Montoir-de-Bretagne from the Nigerian plant at Bonny Island on the 148,450 cubic metres capacity vessel “LNG IMO”.

   The shipments were arriving as the Dutch Title Transfer (TTF)) natural gas price, the benchmark for Continental Europe, was at a seasonally high equivalent of $17.15 per million British thermal units. The other European benchmark, the UK National Balancing Point, was slighly lower at the equivalent of $16.85 per MMBtu.

Spot charters firm

Aug 30 (LNGJ) - Shipping spot charter rates for LNG carriers were steady for a second week. Rates in the West of Suez market were quoted at between $72,000 per day and $68,000 per day for vessels of 155,000-165,000 cubic metres capacity.

   East of Suez spot charter rates were between $69,000 per day and $65,000 per day, according to London brokers. One-year charter rates for the most modern vessels were quoted at around $93,000 per day

Pakistan tender price

Vitol Bahrain and Total Gas & Power have placed the lowest offers for a Pakistan LNG tender to buy seven LNG cargoes.

The cargoes are intended for October and November delivery, according to the company’s website.

Three companies participated in the tender, including PetroChina International. Vitol placed the lowest offer for five of the cargoes and Total for the other two.

Prices ranged from $17.1449 per MMBtu to $22.5866 per MMBtu.

The tender closed on 24th August but remains valid.

Worley wins contract

Worley, an Australian-based offshore construction company, has won a contract from Chevron Australia Pty to support the Jansz-Io compression (J-IC) project offshore Western Australia.

Under the terms of the contract, Worley will provide detailed engineering, design and construction management services for the J-IC project’s power transmission and communication components. 

This agreement follows Worley’s completion of the project’s pre-FEED and FEED phases. The services will be co-ordinated by Worley’s Perth office with support from the company’s global integrated delivery team.

As part of the original development plan for the Chevron-operated Gorgon project, J-IC will use subsea compression technology to maintain long-term natural gas supply from the Jansz-Io field to the three existing LNG trains and domestic gas plant on Barrow Island.

The Jansz-Io gas field is located around 200 km offshore the northwestern coast of Western Australia and supplies the Gorgon facility on Barrow Island. 

Gorgon is a joint venture between the Australian subsidiaries of Chevron 47.3%, ExxonMobil 25%, Shell 25%, Osaka Gas 1.25%, Tokyo Gas 1% and JERA 0.417%.

Pavilion interim CEO

Pavilion Energy, a subsidiary of Singapore’s wealth fund investor Temasek, has promoted Alan Heng to the position of Interim Group CEO.

This appointment becomes effective on 26th August. 

Heng will succeed Frédéric Barnaud who has decided to step down as Group CEO and return to Europe to be with his family.

Pavilion Energy’s Chairman, Tan Sri Mohd Hassan Marican, said, “Frédéric has laid a strong foundation for the Group with the development of its LNG business and its expansion into Europe. 

“On behalf of the Board, management and staff, I would like to thank Frédéric for his leadership of Pavilion Energy in the past three and a half years. The Board wishes him all the best for the future,”he said.

Heng is currently Pavilion Energy’s Managing Director- Asia. 

He joined the company in 2013 and has been instrumental in developing its activities in the Singapore Hub. He has been in the energy industry for 33 years and was previously in various management positions at ExxonMobil.

Russian plant test

Atomenergomash, the mechanical engineering division of the Russian state-run nuclear corporation Rosatom, has completed construction of Europe’s first, and the world’s third, LNG plant test bench.

The test bench will be used for medium-and high-capacity LNG plants’ equipment, the company explained.

"The unit was built on the NIIEFA (the Efremov Research Institute of Electrical-Physical Equipment - TASS) site. The permit to commission the facility has been obtained. The project was implemented in accordance with the resolution of the Russian Government," the company said.

It is  planned to use the facility for certification tests of domestic and imported equipment for LNG production. It can also be adapted to test other equipment.

Russia-China flows

Russia’s daily piped natural gas deliveries to China are set to rise by more than 50% by the end of 2021, China’s official Xinhua news agency reported yesterday.

The current daily rate of 28 mill cubic metres will rise to 43 mill cubic metres by year-end, ensuring supply for the winter and spring of 2022, including the Beijing Winter Olympics in February next year, Xinhua quoted a PipeChina official as saying.

The East Route pipeline scheme has carried more than 10 bill cubic metres of Russian gas to China since it started operations in December, 2019, Xinhua said.

In China, the northern and middle sections of the scheme have already been completed, while the southern section is due to be complete by 2025, allowing the project to reach its planned capacity of 38 bill cubic metres per year.

Novatek in Vietnam

PAO NOVATEK has established a representative office in Hanoi, Vietnam.

The new office will facilitate NOVATEK's expansion into the global gas markets and provide continuous support for the company's prospective energy projects in Vietnam, it said. 

Its main tasks will be to interact with partners, state-owned and private companies in Vietnam to define and develop new projects to supply LNG from NOVATEK’s portfolio to the local market.

“Vietnam offers NOVATEK the prospects of developing gas-related energy projects in the dynamically growing Asian Pacific region,” said Leonid V Mikhelson, Chairman of the Management Board, “and, is of strategic importance for us in implementing our long-term aim of delivering affordable and secure natural gas for many decades in a sustainable manner.”

Kamchatka contract

Norwegian media has reported that China Communications Construction Company (CCCC) has won the contract to build Novatek’s Kamchatka LNG transhipment terminal. 

The transhipment hub is intended to handle LNG loaded in the Arctic for discharge in Asia.

It had earlier been reported that Japanese companies had expressed interest in participating in the Kamchatka transhipment terminal.

It will be used to tranship Yamal LNG from Arc7 type LNG carriers to conventional LNGCs for onward transits to Asian destinations. 

Repsol Canaport move

Canadian energy company, Irving Oil, has sold its 25% ownership interest in Canaport LNG to Repsol.

This transaction gives Repsol full ownership of Canada’s first LNG receiving and regasification terminal, which is located at Saint John (NB).

Irving Oil said that during the past number of months, all of the parties involved have been working together to finalise the deal.

The company added that confidentiality provisions prohibit it from commenting further. 

Tellurian offering

Tellurian Inc has priced its public offering of 35 mill shares of its common stock to gain total gross proceeds of $105 mill. 

The company has granted the underwriter a 30-day option to purchase up to 5.25 mill additional shares to cover any over-allotments. 

Tellurian said that it intended to use the net proceeds from the offering for general corporate purposes, including the potential acquisition of upstream assets. 

The offering is expected to close today, subject to satisfaction of customary closing conditions.

B Riley Securities is acting as the sole bookrunner for the offering.

AG&P awards contract

Acteon, a marine energy and infrastructure services company, has won a contract from Atlantic, Gulf & Pacific Company (AG&P). 

This contract calls for the development of an LNG import and regasification terminal in Batangas Ba - Philippines LNG (PLNG). 

It will be managed by the Acteon Integrated Solutions (AIS) team who will be involved with the local transportation and installation of jacket structures for the LNG berth.

These structures will vary across the construction site and will include approach trestles, mooring and berthing dolphins, and associated furniture, such as walkways, fenders and mooring hooks. 

AIS will be responsible for the full construction of the jetty and all the marine works. The team will be supported by other Acteon sections and product and service line brands.

MOL vessel orders

Mitsui OSK Lines (MOL) has ordered four 7,000 unit capacity LNG powered car carriers at Shin Kurushima Dockyard C Ltd and Nihon Shipyard Co Ltd.

Compared to conventional marine fuel oil, LNG is expected to reduce emissions of carbon dioxide (CO2) by about 25-30%, sulphur oxide (SOx) by 100%, and nitrogen oxide (NOx) by about 85%, MOL said. 

The vessels are due for delivery from 2024 onward.

MOL also revealed that it planned to operate around 90 LNG-fuelled vessels by 2030.