In this issue

 

Wednesday, 02 January 2019
As the world’s top oil company, ExxonMobil does not need to worry about size when it comes to snapping up assets. The Texas-based oil giant is tipped as a potential…
Hit by a triple-whammy of weak cash flows, meager profits and slumping stock values, CEOs in the oil and gas industry are vary about continuing to invest in increasingly risky…
Despite the drop in rig count, the actual output of crude oil and natural gas keeps rising in the United States thanks to advances in technology and drilling techniques. Even…
Promising new shale gas prospects of a “substantial size” have been identified by China National Administration of Coal Geology (CNACG) both in Hubei and in Guizhou Province. CNACG will now…
The worlds’ seven largest LNG buyers – CNOOC, CPC, JERA, KOGAS, PetroChina, Sinopec and Tokyo Gas – together make up over half of the global market. Wood Mackenzie research reveals…
Japan’s largest LNG importer JERA will also become the nation’s biggest power producer as of April 2019 when it will take control of TECPO and Chubu Electric’s domestic power business.…
Regardless of the trade war between the United States and China, state-controlled Sinopec has reaffirmed plans to reserve 75% of the project's LNG production capacity. Sinopec wants to become the…
Royal Dutch Shell will keep investing in global gas projects as demand is anticipated to grow at a rate of 2% per year, twice the rate to worldwide energy demand.…
Golar LNG chairman Tor Olav Troim said he is looking for the next opportunity, encouraged by investors embracing the $1.74 billion integrated LNG-to-power project in Brazil. Golar Power, a venture…
David Keane, President of Canada’s Woodfibre LNG project, has announced the imminent construction start for the brownfield liquefaction facility, licensed to export over 2 mtpa of LNG for 40 years.…
More shale gas produced in Texas will soon cross the border to Mexico after the U.S. Department of Energy (DOE) approved an application by Mexico Pacific Ltd (MPL) to export…
Tightening in global LNG markets has allowed the second wave of US LNG ventures to gain momentum again. Since early 2018, a second wave of projects set to bring more…
Anticipating a speedy energy transition globally, the global classification society DVN GV says upstream players are adapting to this trend by shifting to faster, leaner and cleaner hydrocarbon production techniques.…
Coal-to-gas switch policies in China’s energy sector are expected to boost the country’s LNG demand by a 12 million tons in 2018, exceeding last year’s record growth of 8 mt. Already…

News Nudges

FERC raises concerns over Jordan Cove LNG project

In its draft environmental impact statement (EIS) for the Jordan Cove LNG export project in Oregon, the US Federal Energy Regulatory Commission (FERC) raised “serious reservations” about the environmental impact of the Canadian-led venture. Jordan Cove LNG, owned by Pembina Pipeline Corp., is designed to include five small-scale liquefaction Trains each with 1.5 mtpa of output for a total of 7.8 mtpa. It will also include two full-containment LNG storage tanks with total capacity of 320,000 cubic metres, gas treating facilities, an export jetty and access to more than 25 Bcf/d of gas supply from Western Canada and the US Rockies. “We conclude that constructing and operating the project would result in temporary, long-term, and permanent impacts on the environment,” said the FERC in its draft report. “Specifically, we conclude that constructing the project would temporarily but significantly impact housing in Coos Bay and that constructing and operating the project would permanently and significantly impact the visual character of Coos Bay. Furthermore, constructing and operating the project is likely to adversely affect 13 federally-listed threatened and endangered species,” the regulator stated. As proposed, the LNG plant would be visited by about 120 LNG carriers per year and Pembina has confirmed that it had signed preliminary accords with Jera and Itochu of Japan for the supply of LNG. The natural gas feeder pipeline would link to the existing pipeline systems in Klamath County, Oregon, and would span parts of Klamath, Jackson, Douglas, and Coos counties before connecting with the LNG plant. The approximately 229-mile-long, 36-inch-diameter pipeline would be capable of transporting up to 1.2 Bcf/d of natural gas.


Bangladesh nears start-up of 2nd FSRU

Bangladesh is getting ready to commission its second floating storage and regas unit (FSRU) in an effort to import more LNG for use in the power sector. Moored offshore the port of Cox’s Bazar, the FSRU vessel ‘Summit LNG’ has been chartered from Excelerate Energy in a project involving Summit Power. The Summit Group stated the ‘Summit’ FSRU can handle around 3.75 mtpa of LNG, which effectively doubles the Bangladesh’s LNG import capacity after a first FSRU, the ‘Excellence’, was commissioned at Moheshkhali Island in August last year. All regasified LNG, produced at the new FSRU, will be procured by state-owned Petrobangla. To transport the gas, the Chinese major CNOOC has been commissioned to build a 4.2 mile pipeline that connects Summit FSRU to the shore. Singapore-based Summit Power operates 20 power plants in Bangladesh with an installed capacity of 1,941 MW, which is about 20% of the country’s total privately-held power generation. Summit is currently developing a 583 MW gas power plant in the town of Meghnaghat, some 20km south of the capital Dhaka. The plant is planned to be commissioned in March 2022. Muhammed Aziz Khan, chairman of Summit Group, said the company was “working towards achieving power and energy sufficiency in Bangladesh under the bold leadership of the government.” Targeting Bangladesh, GE has agreed to potentially provide $50 million to Summit to be used for the development of power projects. Mitsubishi Corp. owns a 25% stake in Summit Group since Augsut 2018, and is also eying to participate in power projects across Southeast Asia.