LNG

Countering the Panama Canal expansion operational from early 2015, the Egyptian government is evaluating plans to spend $4 billion on building a new widened shipping lane besides the Suez Canal. The move to a bi-directional lane would facilitate the transit of more Q-Flex LNG vessels.

Breaking Gazprom's 100% gas supply monopoly, Litgas, the trading arm of Lietuvos Energija, has signed a 5-year LNG supply deal with Norway's Statoil at an estimated value of up to €870 million.

The insurance risk of Arctic LNG carriers, fitted with Azipod propulsion units and worth around $400 million, may not have been properly calculated, UK-based marine insurer Marsh warned.

If US LNG volumes do eventually reach Europe, there is a huge capacity for Russia's Gazprom to beat them on costs of production and delivery, analysts said, stressing Asia will remain the key target market for cargoes from North America regardless of continued unrest in Ukraine.