LEAD STORY
Friday, 25 May 2007 17:15
Qatar's upgraded Nakilat provides case study for credit analysis of LNG shipping projects
Written by
Karim Nassif, London, and Terry A Pratt, New York
The first public rating by US credit agency Standard & Poor’s of a liquefied natural gas shipping entity was recently accorded to Qatar-based Nakilat Inc.
The rating on Nakilat, a wholly owned subsidiary of Qatar Gas Transport Co. Ltd., was raised following the upgrade of the State of Qatar. Nakilat was rated “A+'”with a stable outlook.
The first public rating by US credit agency Standard & Poor’s of a liquefied natural gas shipping entity was recently accorded to Qatar-based Nakilat Inc.
The rating on Nakilat, a wholly owned subsidiary of Qatar Gas Transport Co. Ltd., was raised following the upgrade of the State of Qatar. Nakilat was rated “A+'”with a stable outlook.
Published in
May 07
Friday, 25 May 2007 17:13
LNG liquefaction business plans show that not all plants will be created equal
Written by
Heinz Kotzot, Charles Durr, David Coyle and Chris Caswell of KBR, Houston, Texas, USA.
As the LNG industry has matured, there is often an inclination to compare the successes and challenges among projects over time. Many publications have fallen into the habit of using a specific cost term of “dollars (USD) per ton of annual LNG production” as an indicator for comparing the engineering and execution skills of owners, licensors and contractors.
This dollar per annual ton benchmark, commonly abbreviated as “dollars per ton” is highly dependent on site specific factors. These factors include the remote nature of the site, local content requirements, design criteria, marine conditions, design practices, and scope differences.
As the LNG industry has matured, there is often an inclination to compare the successes and challenges among projects over time. Many publications have fallen into the habit of using a specific cost term of “dollars (USD) per ton of annual LNG production” as an indicator for comparing the engineering and execution skills of owners, licensors and contractors.
This dollar per annual ton benchmark, commonly abbreviated as “dollars per ton” is highly dependent on site specific factors. These factors include the remote nature of the site, local content requirements, design criteria, marine conditions, design practices, and scope differences.
Published in
May 07
Also in this issue
Round up of latest company news
Published in
May 07
Morten Frisch, Senior Partner, Morten Frisch Consulting, and Carlos Lapuerta, Managing Director, The Brattle Group Ltd.
The winter of 2005/06 was very different in the United States and Europe. The US had some price spikes, but an overall mild winter led to an easing of prices, below levels that had been predicted the previous year.
The most recent forecasts from the US confirm our concerns expressed in earlier work concerning the future market for LNG imports.
The winter of 2005/06 was very different in the United States and Europe. The US had some price spikes, but an overall mild winter led to an easing of prices, below levels that had been predicted the previous year.
The most recent forecasts from the US confirm our concerns expressed in earlier work concerning the future market for LNG imports.
Published in
May 07
Friday, 25 May 2007 17:05
Transatlantic LNG arbitrage activity will grow as market trading system matures
Written by
Didier Holleaux, Vice President LNG, Gaz de France, Paris, in the first of a three-part series analyses a trading realm weighed down by technical and contractual issues
LNG Transatlantic Arbitrage, the diversion of LNG cargoes from Europe to the US - or the other way round – for a certain higher profit margin makes up only around 25 percent of spot trading and the relative scarcity of such deals is mainly due to technical and contractual issues.
But even when these difficulties are overcome, the significant fixed costs involved, the high volatility of the arbitrage, and its sensitivity to market conditions, means it is a business for the players who have a well-sized and diversified portfolio of LNG supplies.
LNG Transatlantic Arbitrage, the diversion of LNG cargoes from Europe to the US - or the other way round – for a certain higher profit margin makes up only around 25 percent of spot trading and the relative scarcity of such deals is mainly due to technical and contractual issues.
But even when these difficulties are overcome, the significant fixed costs involved, the high volatility of the arbitrage, and its sensitivity to market conditions, means it is a business for the players who have a well-sized and diversified portfolio of LNG supplies.
Published in
May 07
Friday, 25 May 2007 17:01
Europe’s three new LNG import terminals will boost competition
Written by
John McKay
The UK is set to overtake France in LNG regasification capacity before the end of the year as two new import terminals open on schedule, while a new French terminal project has been beset by hold-ups that have led to its inauguration being delayed by eight months.
Europe’s three newest terminals will boost regasification capacity by almost 19 million tonnes per annum and increase Atlantic Basin competition for cargo diversions between France and the UK on the one hand, and Europe and the US on the other.
The Fos Cavaou terminal, being developed by Gaz de France and French energy major Total, is located at Fas Cavaou in the Autonomous Port of Marseilles, and was originally scheduled to be in commercial operation by just after mid-2007.
The UK is set to overtake France in LNG regasification capacity before the end of the year as two new import terminals open on schedule, while a new French terminal project has been beset by hold-ups that have led to its inauguration being delayed by eight months.
Europe’s three newest terminals will boost regasification capacity by almost 19 million tonnes per annum and increase Atlantic Basin competition for cargo diversions between France and the UK on the one hand, and Europe and the US on the other.
The Fos Cavaou terminal, being developed by Gaz de France and French energy major Total, is located at Fas Cavaou in the Autonomous Port of Marseilles, and was originally scheduled to be in commercial operation by just after mid-2007.
Published in
May 07
