In this issue

 

Lifting of China’s zero-Covid rules is expected to push up the country’s gas demand by up to 72 million tons in 2023, a 14 percent rise year-on-year which intensifies competition…
After months of haggling, EU ministers agreed to set a price cap for natural gas – though the €180/MWh threshold will make it harder to source urgently needed LNG to…
China National Offshore Oil Company (CNOOC) has outlined its corporate strategy with higher spending plans for this year, announcing its offshore focus was on the South China Sea, notably the…
Free ReadState-owned power generators in China have been granted permission to issue 200 billion yuan ($29.1 billion) in special bonds to raise funds to purchase natural gas, oil and especially coal to…
The National Development and Reform Commission of China (NDRC) has allowed selected companies to resume coal imports from Australia. Domestic miners were also urged to further increase their record output…
Tuesday, 31 January 2023
There were 2.17mmt of LNG on the water with destinations in China according to our market visibility at the time of writing on 27 January. These cargoes had an estimated…
Free ReadChina’s monthly LNG offtake in December amounted to 7.11mmt, our data showed, which constituted strong monthly demand growth of 0.84mmt (13 percent) from the 6.27mmt we recorded in November. At…
Though China’s gas demand has shrunk this year as Beijing’s no-Covid policy hampered economic growth, PetroChina expects consumption will rebound by 5.5 percent to 7.2 percent between November and March…
China’s state-owned Sinopec has signed a $60 billion agreement to buy 4 mtpa of LNG from QatarEnergy’s North Field East project for 27 years, starting from 2026. The deal marks…
Though gas storages in the EU are now 95 percent full, the International Energy Agency (IEA) warns Europe could face a gap of 30 Bcm in the 2023 summer refill…
Free ReadSeveral prompt-delivery Atlantic LNG cargoes have reportedly been diverted to Asia due to sluggish demand in Europe amid unseasonably mild weather and healthy gas storage levels. Shipping companies are understood to…
Deterred by high spot prices, Asian utilities have turned to term LNG charters to refill storage ahead of the winter. Charters for 6-12 months were snapped up in a rapid…
Electricity shortages in China this summer have triggered a build-out in coal-fired generation to avoid a repeat of rolling blackouts. Through to 2024, a flurry of new coal-fired plants with 80…
Free ReadMounting gas shortages in Europe has not only drawn flexible LNG volumes away from Asia but also limited the number of available floating storage and regas (FSRU) vessels, the International…

News Nudges

Europe’s gas crisis limits available FSRU vessels in Southeast Asia

Mounting gas shortages in Europe has not only drawn flexible LNG volumes away from Asia but also limited the number of available floating storage and regas (FSRU) vessels, the International Energy Agency (IEA) finds. To replace missing Russian supplies, European importers chartered 12 FSRU that were initially destined for LNG-to-power projects in Southeast Asia. Just over 20 FSRU vessels were available or under construction as of August. Since the war in Ukraine started in mid-February, 12 FSRUs have been chartered by European utility buyers for recently approved import terminals. Nine additional FSRU-based terminals are planned as EU gas buyers rush to replace Russian pipeline gas with LNG imports.The scarcity of floating LNG import terminals risk to slow down the electrification of emerging markets in Southeast Asia, where FRSU were meant to account for a sizeable share of future regas capacity. Gas is no longer the fuel of choice for decentralized power projects in Asia, as prices have gone through the roof and developers opt for renewables combined with energy storage instead.