Höegh LNG’s settles spat with FSRU charterer
With reference to the ongoing disputes and pending arbitrations with the charterer of PGN FSRU Lampung, Höegh LNG has announced that the parties have agreed an amicable settlement. The parties have agreed to finally and irrevocably settle all disputes, claims and counterclaims that resulted in arbitration proceedings and agreed to terminate the cases with immediate effect. PGN FSRU Lampung’s charter contract remains in full force and each party will cover its own costs in relation to the terminated arbitrations, Höegh LNG said.
GTT wins large LNGCs’ tank design
GTT has received an order from a Chinese shipyard for the tank design of eight new 271,000 cu m LNGCs. The tanks will be fitted with the NO96 Super+ membrane containment system and the ships will be delivered between the second quarter of 2028 and the fourth quarter of 2029.
Russia to continue to supply SEFE
The Russian government has extended a permit to supply LNG to German state gas importer and trader, SEFE until 31st December, 2040. The LNG will come from the Yamal LNG export plant, according to a government document published recently, reported Reuters. SEFE (Securing Energy for Europe) was formerly the German division of Russia's Gazprom, which was nationalised in 2022, following the start of Russia’s invasion of Ukraine. Russia banned trade with a number of companies, including Gazprom Germania in 2022, but a year later the government made a special dispensation for the company to allow the LNG sales until the end of 2024. This decision was published as Russia's largest LNG producer NOVATEK is facing sanctions and delays at its new Arctic LNG 2 project, Reuters reported.
TGE Gas Engineering has completed Huizhou LNG receiving terminal EPC project. TGE said that it had reached this important milestone 20 days earlier than the contract stipulated. The project, consisting of three 200,000 cu m LNG storage tanks, plus related facilities, enables the loading and unloading of LNGCs ranging in size from 80,000 and 266,000 cu m. The maximum annual LNG receiving capacity is 6.1 mill tonnes. It is planned to bring the terminal online by the middle of this year. Elsewhere, Straatman is collaborating with Samsung Heavy Industries (SHI) on Petronas’ new ZFLNG project. The company will be supplying its SafeCom ship-to-shore link (SSL) to facilitate seamless communication between the ZFLNG facility and LNGCs. ZFLNG will be located offshore near Sabah, Malaysia and will be Petronas’ third FLNG project.
Ships - Newbuildings
Qatar Gas Transport Co (NAKILAT) has announced that it has been chosen by QatarEnergy to be the owner and operator of up to 25 conventional size LNGCs under timecharters to be entered into by affiliates of both companies. The 174,000 cu m LNGCs will be owned 100% by NAKILAT and chartered to affiliates of QatarEnergy. They are scheduled for construction in South Korean shipyards as part of QatarEnergy’s LNG fleet expansion project, aimed at catering for the LNG transport requirements of QatarEnergy’s LNG expansion projects, as well as fleet renewals. In addition, Samsung Heavy Industries (SHI) has won LNGC newbuilding contracts for Qatar’s second-phase project worth Won4.6 trill ($2.5 bill), following HD Hyundai Heavy Industries. On 6th February, SHI announced that it had signed a contract to build 15 LNGCs with a Middle Eastern shipowner. It is the largest single order in the company’s history. The Qatar project players initially ordered 65 ships in 2022, with Korean shipbuilders securing orders for 54 of them. This second-phase order follows HD Hyundai Heavy Industries’ agreement last October for a Won5.28 trill won deal to build 17n LNGCs. Hanwha Ocean is thought to be in the final stages of price negotiations for another 12, South Korean media said. NYK has signed a long-term charter contract with JERA for a new LNGC to be built by Hyundai Samho Heavy Industries. She will be delivered in 2027 and will be used to transport LNG for the Japanese major. The 174,000 cu m vessel will be fitted with an X-DF2.2 iCER dual-fuel, low-speed diesel engine that uses fuel oil and boil-off gas (BOG) for the main engine and a re-liquefaction system that can use surplus BOG effectively. She will be the 11th LNGC that NYK has timechartered to JERA. In the charter market, Cool Company (COOLCo) has announced that it has signed a timecharter agreement for one of its TFDE vessels. The 12-month contract is with Santos Shipping Singapore and is scheduled to commence in the first quarter of this year. In 3Q24, she is expected to undergo a scheduled drydocking, at which she will be upgraded to LNGe specifications, which includes the addition of reliquefaction capability via sub-coolers, as well as air lubrication systems and a range of optimisations and upgrades intended to enhance efficiency and reduce emissions. In line with the anticipated enhanced performance profile following the upgrades, the charter includes a commercial mechanism to reward both the charterer and CoolCo. As a result, CoolCo’s management extended its total operating revenue guidance to $88-89 mill for 1Q24 ($99 mill 1Q23) and $84-85 mill for 2Q24 ($90 mill 2Q23), subject to no technical offhire. The lower expected revenue range in 2Q24 is primarily related to off-hire during a scheduled drydocking of another vessel. Hanwha Ocean recently held a launching ceremony for ‘GasLog Italy’ and ‘Marvel Phoenix’. The vessels are scheduled for delivery in August and September of this year, respectively.
OLT Terminal to undergo maintenance
OLT Offshore LNG Toscana’s FSRU terminal is to undergo maintenance at a shipyard, resulting in its shutdown. This is scheduled from the beginning of April to the end of October, 2024. Specifically, as a result of ongoing technical monitoring activities, the company has decided to carry out the replacement of the terminal’s anchoring system bearing, designed and built to ensure the FSRUs rotation around the geostationary turret permanently anchored to the seabed. Procedures are currently underway to schedule the suspension of operations and proceed with the bearing replacement work. OLT has set up a control and monitoring system for the anchoring system, whereby, at present, conditions allow for the full operation of the terminal without any safety or environmental impact.
All change at Singapore LNG
Effective 7th April, 2024, Leong Wei Hung will succeed Tan Soo Koong as the CEO of Singapore LNG Corp (SLNG) upon the latter’s retirement. To allow for a period of transition, Leong assumed the role of CEO (Designate) of SLNG, on 1st February, 2024. He has been a non-executive director of the SLNG Board since May, 2022 and in this capacity, he has been playing an important role in guiding SLNG’s strategic directions. Prior to this, he has had a career spanning more than 28 years with the Shell Group, where he served in various roles across several portfolios in refining, chemicals, trading and supply, based in Singapore and the UK. He was also a board member of Shell Eastern Petroleum (Pte) Ltd and Shell Eastern Trading Limited, and served as advisor to several other companies.
Dunkerque LNG terminal offers regasification capacity
Dunkerque LNG has called for market interest (CMI) in booking up to 3,5 bill cu m per annum of regasification capacity. Its shippers are benefiting from several distinct advantages, including no gas-in-kind, an ideal location in Northwestern Europe with a direct access to two gas markets, as well as a broad operational and commercial flexibility, the terminal operator claimed. The qualification phase of the process started on 1st February and will close on 23rd February, 2024.
Mayer Brown advises Excelerate
Law firm Mayer Brown has advised long-term client Excelerate Energy in connection with a 15-year LNG sale and purchase agreement (SPA) with QatarEnergy. Under this SPA, Excelerate agreed to purchase LNG on a delivered ex ship (DES) basis from QatarEnergy for 15 years. Excelerate will purchase 0.85 mill tonnes per annum of LNG in 2026 and 2027 and ramp up to 1 mill tonnes from 2028 to 2040. The LNG is intended to supply Bangladesh FSRUs. Excelerate operates the Moheshkhali LNG FSRU terminal and a second FSRU terminal in the Bay of Bengal. The US-based company is responsible for around 25% of Bangladesh’s natural gas supply. Nick Kouvaritakis, global head of LNG at Mayer Brown, commented: “We are delighted to have advised Excelerate on its landmark LNG supply agreement with QatarEnergy. “Excelerate is a key energy client of the firm and we are delighted to have supported Excelerate on this significant supply deal with the world’s largest LNG supplier, QatarEnergy,” he said. The Singapore-based team was led by Partner, Nick Kouvaritakis and included Partner, Sean Prior, Counsel, Nick Kendrick, and Senior Associate, Shi Ning Ong.