LNG

Gaztransport and Technigaz (GTT), the French maritime LNG storage technology company, has received an order from its partner Dalian Shipbuilding Industry Company of China for the design of new storage tanks for two Chinese liquefied natural gas carriers.

GTT said that the latest orders were on behalf of Ocean Jade Investment.

Ocean Jade is a joint venture between Hong Kong shipowner Wah Kwong, Chinese leasing company CSSC (Hong Kong) Shipping and China Gas Holdings.

GTT will design the tanks of these two vessels, which will each offer a capacity of 175,000 cubic metres.

“The tanks will be fitted with the Mark III Flex membrane containment system developed by GTT,” said the Paris-based company.

The delivery of the vessels is scheduled between the first and the second quarters of 2028.

At the start of July 2024 GTT received another order from the China Merchants Heavy Industry shipyard in the eastern province of Jiangsu for the tank design of a new LNG carrier as its orders stack up.

GTT said the order was for the tank design of a new LNG carrier on behalf of Danish ship-owner Celsius with delivery scheduled for the third quarter of 2027.

Qatar expansion orders

At the end of June 2024, GTT received a second wave of orders from Hudong-Zhonghua Shipbuilding for sets of tanks for 10 more vessels as part of QatarEnergy’s “Hundred Ships Programme” to handle the deliveries from multiple expansion projects in the Arabian Gulf.

That GTT order for tanks fitted to 10 large LNG carriers brought to 18 the number of Qatari LNG vessels ordered from China with the new generation of storage tanks.

GTT said it would design the tanks for these 10 very large LNG carriers, which will each have five tanks with a total capacity of 271,000 cubic metres capacity.

The tanks will be fitted with the No. 96 Super-plus membrane containment system developed by GTT.

Delivery from GTT is scheduled between the first quarter of 2030 and the fourth quarter of 2031.

GTT earlier received orders in February 2024 for the designs of tanks for eight Qatari LNG carriers, also with five per ship and with total capacity of 271,000 cubic metres.

The eight-ship order was under a “strategic cooperation agreement” with China State Shipbuilding Corp., the leading Chinese shipbuilding group.

Delivery of this batch is scheduled between the second quarter of 2028 and the fourth quarter of 2029.

The ship designs will have the same overall dimensions as the current largest Q-Max ships but with an increased cargo-carrying capacity.

China LNG Group Ltd., a Hong Kong-based company with assets along the value chain in mainland China, has formally changed its name to China HK Power Smart Energy Group Ltd to reflect better the company’s business plans and demonstrate its commitment to future development.

NextDecade Corp., the developer of the Rio Grande LNG export project on the Brownsville Ship Channel in Texas, has amended its engineering contract agreement with US company Bechtel Energy to extend the price validity.

The engineering, procurement and construction contract with Bechtel for the building of the first three liquefaction Trains has been extended to June 15, 2023.

“NextDecade currently estimates the aggregate lump-sum EPC cost to construct Trains 1-3 of the Rio Grande Facility at approximately $11.5 billion,” said NextDecade in a statement to the Nasdaq global exchange.

“The final EPC lump-sum contract pricing for Trains 1-3 of the Rio Grande facility will be determined prior to a final investment decision and is subject to change, including if RGLNG does not issue a full notice to proceed to Bechtel on or before June 15, unless extended by mutual agreement of the parties thereto,” the company explained.

NextDecade said that it was currently targeting a positive FID on Trains 1-3 of the Rio Grande project before the end of the second quarter of 2023, with FIDs on the remaining Trains to follow later.

Houston, Texas-based Next Decade has ultimate plans and permits to produce up to 27 MTPA of LNG from five liquefaction Trains at the Rio Grande facility.

Numerous delays

The Rio Grande project has been delayed on numerous occasions over the years and was originally expected to start producing LNG in 2023.

NextDecade signed about half a dozen sales and purchase agreements (SPAs) in 2022, the most recent being a volume increase in December with ENN LNG of Singapore, a trading unit of the Chinese ENN Natural Gas Group.

Under the 20-year SPA, ENN will now purchase 2.0 MTPA of LNG. NextDecade said this was a 500,000 tonnes per annum increase from the original 1.5 MTPA SPA announced earlier in 2022.

All volumes of LNG are indexed to the US benchmark Henry Hub natural gas price and will be supplied from the first three Trains at the Rio Grande facility.

Portugal deal

NextDecade earlier in December 2022 signed an SPA with Galp Trading S.A. of Portugal.

This was its fifth deal of the year and the increase of volumes for ENN Group was its sixth volume sign-up.

NextDecade has made progress with other SPAs during 2022, including one with ExxonMobil Corp.

The US major signed a 20-year supply deal with NextDecade at the end of July 2022 through its trading subsidiary in Asia.

NextDecade has also signed three supply agreement with Chinese companies, including a 20-year deal with China Gas Hongda Energy Trading Co., a wholly-owned subsidiary of China Gas Holdings, the ENN Group and with Guangdong Energy Group Natural Gas.

March 6 (LNGJ) - China Gas Holdings, one of the leading Chinese city-gas company that recently agreed to buy LNG cargoes from Venture Global’s Plaquemine liquefaction and export project in Louisiana, has expanded its stake by another 32.4 percent at a cost of $245 million in the city-gas company of Hohhot City and seven surrounding counties and development zones in Inner Mongolia.

   “Upon completion of the transaction, China Gas will hold 96.5 percent equity interest in the target company and the remaining 3.5 percent will be held by Inner Mongolia State-owned Capital Operation Co.,” said China Gas.

China Gas Holdings, one of the leading non-state controlled companies in the Chinese city-gas and LNG sectors, said one of its subsidiaries signed a US LNG supply agreement with Venture Global for cargoes from Louisiana.

The Chinese company said its trading unit China Gas Hongda Energy Trading Co. signed two 20-year LNG Sales and Purchase Agreements (SPAs) for free-on-board (FOB) cargoes.

Under the deals, China Gas will buy 1 million tonnes per annum (MTPA) of LNG from the Plaquemines LNG project and another 1 MTPA from the CP2 LNG export facility to be constructed near Venture Global’s existing Calcasieu Pass export plant.

China Gas is involved in more than 600 projects in cities and towns with city-gas pipeline concessions, 17 natural gas pipeline transmission projects and operates over 550 LNG and compressed natural gas filling stations for vehicles.

“As a major participant in China’s energy market, we are committed to providing reliable and low-carbon LNG to Chinese customers,” said Liu Minghui, Chairman and President of China Gas.

Strengthens portfolio

“These two SPAs increase additional volumes for our LNG portfolio and strengthen China Gas’s supply ability,” stated Liu.

Michael Sabel, Chief Executive of Arlington, Virginia-based Venture Global said he was pleased to have the Chinese firm as a customer.

“Through relentless execution and innovation, our company will continue to bring much needed new capacity to the global LNG market, supporting energy security and environmental progress both in Asia and Europe,” declared Sabel.

China Gas has many subsidiaries and one of them was behind one the worst gas pipeline accidents in China in recent years and China Gas took full responsibility.

The explosion occurred in an area in Shiyan City in the northeast province of Hubei Province on the 13th of June 2021 and killed 25 people and left 27 others with serious injuries.

The pipeline system in Shiyan was the responsibility of one of the subsidiaries of China gas, Shiyan Dongfeng Zhongran City Gas Development Co.

However, China Gas accepted the blame and pledged to improve safety standards in the gas industry after an investigation by the provincial government exposed serious safety flaws.

The accident occurred when leaked natural gas from a pipeline gathered in the confined space underneath buildings and caused an explosion when coming into contact with sparks in fumes from nearby catering outlets.

The investigation into the incident exposed problems in the Chinese gas sector exacerbated by illegal construction, long-term failure to investigate gas leaks, chaotic property management and inefficient emergency responses to major incidents.

NextDecade Corp., the developer of the Rio Grande LNG export project on the Brownsville Ship Channel in Texas, has signed a long-term sale and purchase agreement with Galp Trading S.A. of Portugal.

NextDecade, based in Houston, said that under the 20-year deal Galp would purchase 1.0 million tonnes per annum of LNG indexed to the US benchmark Henry Hub gas price on a free-on-board (FOB) basis whereby the Portuguese supply their own ships.

“We are honored to have Galp, one of Portugal’s largest energy companies and a key player in the Iberian Peninsula, as our customer,” said Matt Schatzman, NextDecade's Chairman and Chief Executive.

“We look forward to helping Galp, as well as other European companies and their customers, meet their energy needs by offering a lower-cost, reliable source of LNG with lower carbon-intensity,” added Schatzman.

FID moves

NextDecade explained that it was targeting a positive final investment decision on the first three Trains of the Rio Grande project for the first quarter of 2023.

Further FIDs on the other permitted liquefaction Trains would follow thereafter for the venture with proposed 27 MTPA of output.

NextDecade has made progress with other SPAs during 2022, including one with ExxonMobil Corp.

The US major signed a 20-year supply deal with NextDecade at the end of July 2022 through its trading subsidiary in Asia.

Under that SPA, the US major’s Asia unit would purchase 1 MTPA of LNG supplied from the first two Trains of the Rio Grande facility.

The first Train is expected to start commercial operations as early as 2026.

NextDecade has also signed three supply agreement with Chinese companies, including a 20-year deal with China Gas Hongda Energy Trading Co., a wholly-owned subsidiary of China Gas Holdings.

That deal was also for 1 MTPA of LNG indexed to Henry Hub and delivered on a FOB basis.

NextDecade in April 2022 signed a 20-year SPA with the Singapore trading arm of ENN Group of China and another with China’s Guangdong Energy Group Natural Gas.

NextDecade Corp., the developer of the Rio Grande LNG export project on the Brownsville Ship Channel in Texas, has signed a 20-year sale and purchase agreement with ExxonMobil LNG Asia Pacific.

Under the SPA, the US major’s Asia unit will purchase 1 million metric tonnes per annum of LNG supplied from the first two Trains of the Rio Grande facility. The first Train expected to start commercial operations as early as 2026.

NextDecade mostly recently also signed a third supply agreement with a Chinese company since the start of 2022.

The Houston, Texas-based company signed a 20-year SPA with China Gas Hongda Energy Trading Co., a wholly-owned subsidiary of China Gas Holdings. This deal was also for 1 MTPA of LNG indexed to Henry Hub and delivered on a free-on-board (FOB) basis.

NextDecade in April 2022 signed a 20-year SPA with the Singapore trading arm of ENN Group of China and another with China’s Guangdong Energy Group Natural Gas.

“The signing of this long-term SPA with ExxonMobil, a global leader in the energy industry, represents another significant milestone for RGLNG and signifies the beginning of a mutually beneficial relationship,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive.

Strategy

“This agreement highlights the success of NextDecade’s strategy to provide customers with low carbon-intensive LNG to help them meet their carbon reduction goals, while providing them access to secure energy supply,” added Schatzman.

The US company has ultimate plans and permits to produce up to 27 MTPA of LNG from five liquefaction Trains at the Rio Grande facility.

“LNG will play an increasingly important role in helping society reduce emissions during the energy transition,” said Peter Clarke, Senior Vice President of LNG for the ExxonMobil Upstream Company.

“We look forward to working with NextDecade to continue growing ExxonMobil’s LNG portfolio and delivering the lower-emissions energy the world needs,” added Clarke.

NextDecade has said that based on current expected demand for LNG and assuming the achievement of further LNG contracting and financing, the company anticipated making a positive final investment decision on up to three Trains in the second half of 2022, with FIDs of its remaining Trains to follow thereafter.

NextDecade Corp., the developer of the Rio Grande LNG export project on the Brownsville Ship Channel in Texas, has signed a third supply agreement with a Chinese company since the start of 2022.

Energy Transfer, the US midstream company transforming the Lake Charles LNG import terminal in Louisiana into an export plant, has signed a long-term sales agreement with a unit of China Gas Holdings, one of the Asian nation’s leading natural gas services company.

China Gas Holdings, one of the leading non-state controlled companies in the Chinese city-gas and LNG sectors and state-backed Beijing Gas Group, have signed a strategic cooperation agreement to stabilise LNG flows to North China.