LNG

Intercontinental Exchange Inc., the leading global provider of energy trading platforms for futures and options, said its global futures and options markets reached record open interest on one day in December of 86 million contracts.

European natural gas and LNG prices skyrocketed by 47 percent on the week to their highest level since mid-February as geopolitical and energy security tensions gripped the Atlantic Basin and Mediterranean markets while North Asian spot cargo prices rose by just over 5 percent.

Indian liquefied natural gas imports dropped by almost 11 percent as prices edged higher along with domestic gas output and the nation’s gas demand remained lukewarm.

European and Asian LNG prices declined on the week as European Union gas storage levels increased and more LNG deliveries are being scheduled for Germany’s floating import facilities, while more momentum was still awaited from spot cargo buyers in the Pacific Basin.

JERA Co. Inc., the largest Japanese LNG importer, has resumed operations at the gas-fired Anegasaki Thermal Power Station located on the eastern side of Tokyo Bay and currently under a long-term planned shutdown scheduled for February 2023.

JERA explained that that Unit 5 facility at the station was scheduled to resume operations on October 24 to supply auxiliary steam for the restart of Unit 6 at the Anegasaki power plant.

“Because the Unit had deteriorated over time and its utilization rate had declined, the Unit has been in a long-term planned shutdown since April 2021,” said JERA.

However, discussions at the Ministry of Economy, Trade, and Industry's electricity and gas policy committee led to an agreement for a re-start to help underpin Japan’s energy security.

“JERA has lifted the Unit’s long-term planned shutdown and will operate it as part of measures to provide additional power supply capacity for this winter,” added JERA.

The utility company added that it would “make every effort” in cooperation with related parties to ensure a stable supply of energy to the plant and at other power facilities.

The 600-megawatts Anegasaki plant is a conventional gas plant and in operation using LNG as fuel since 1979.

The decision to shut the plant was taken in April 2021 before the current energy crisis deepened with the Russian invasion of Ukraine.

JERA is the largest corporate LNG buyer in the world with annual volumes of around 35 million tonnes and controls a fleet of around 20 LNG carriers.

Additionally, it is Japan’s biggest fossil-fuel generator being owned jointly by Tokyo Electric Power Co. and Chubu Electric, the two largest power companies.

The company currently operates and provides fuel for a total of 26 power plants in Japan and imports LNG into 11 of Japan’s network of 37 terminals.

European natural gas prices and LNG values hit summer season records of over $19 per million British thermal units as Asian spot cargo prices soared over $21 per MMBtu and US Henry Hub futures moved over the $5 per MMBtu level, signalling global shortages for gas for power in the coming Northern Hemisphere winter.

Sept 9 (LNGJ) - Shipping spot charter rates for LNG carriers dropped in the past week by $3,000 per day to between $67,000 per day and $63,000 per day in the West of Suez market for vessels of 155,000-165,000 cubic metres capacity.

   East of Suez spot charter rates fell by the same amount to be quoted at between $64,000 per day and $60,000 per day, according to London brokers. One-year charter rates for the most modern vessels were unchanged at about $93,000 per day.

Qatar Petroleum has signed a new supply agreement with Taiwan for 1.25 million tonnes per annum of LNG as the Taiwanese use more of the fuel and expand their infrastructure.

Indian liquefied natural gas imports jumped by more than 45 percent in April from a much lower figure in April 2020 caused by last year’s drop in economic activity after the appearance of the Covid-19 pandemic.

Japan Petroleum Exploration Co., the oil and gas operator with liquefied natural gas import terminal and Japanese pipelines assets, has agreed to cut losses and sell its stake to Malaysia’s Petronas in the Canadian North Montney shale-gas joint venture.