LNG

Dec 12 (LNGJ) - Star Energy, the company listed on the London Stock Exchange Alternative Investment Market, is hoping to give LNG importer Croatia more access to additional sources of energy. The company said that a drilling rig had been mobilised to a recently constructed well pad on its Ernestinovo Licence in Eastern Croatia, three months after the acquisition of its Croatian Geothermal interests. “The rig will re-enter the Ernestinovo-3 well to test the geothermal potential,” said the company.

   “Crosco is conducting the well re-entry programme. They are a highly experienced Croatian-based international drilling company and have conducted the successful re-entry of a number of wells in-country,” it added. The company said the operation was likely to continue for about one month. “We are excited to begin the well re-entry on Ernestinovo-3. The speed with which we have constructed a well pad and commenced this operation demonstrates both the expertise of our local partners and the efficiency of the Croatian regulators,” stated Star Energy Chief Executive Chris Hopkinson.

LNG importer Croatia is receiving European Commission aid to help the Balkan state that was formerly part of the former Yugoslavia to provide transmission system operators (TSOs) with balancing services.

The Commission approved, under EU State aid rules, a €19.8 million ($19.9M) Croatian aid measure in favour of energy storage operator IE-Energy, headquartered in Rijeka, Croatia.

The measure is aimed at helping IE-Energy to partially finance the procurement and the installation of grid-scale batteries to provide transmission system operators (TSOs) with balancing services.

“Furthermore, the measure contributes to the modernisation of Croatia's energy network, as well as to increasing the country's and the EU's energy security of supply,” added the Brussels-based European Union’s executive body.

LNG expansion

The grant comes as the Croatian Government is planning to invest €180M in a new gas pipeline section that would help double capacity at its LNG floating storage and regasification unit located off the Adriatic Sea island of Krk.

Croatia, which became a member of the EU in 2013, received its first LNG cargo in January 2021 at the FSRU, the “LNG Croatia”.

Under government plans, a €155M gas pipeline extension will connect Zlobin and Bosiljevo in northwest Croatia in about three years’ time when the FSRU’s capacity will be boosted to 6.1 billion cubic metres per annum of regasified LNG from the current 2.6 Bcm.

The Commission said its TSO grant for balancing would further contribute to the modernisation of Croatia's energy network, as well as to increasing the country's and the EU's energy security of supply.

“The aid was also is proportionate as it is limited to the minimum necessary, and that it will not have undue negative effects on competition and trade between member states,” it added.

The US Department of Energy has just published its latest liquefied natural gas export data with price differentials for the five largest plants showing month-on-month price declines, while two European Union countries Spain and France were displaced by China and Turkey respectively in the overall totals list for shipments.

The Balkan state and European Union member Croatia duly became the latest LNG importing nation at the start of January with a shipment from the US, while Balkan neighbour and aspirant EU country Serbia started up its new Russian natural gas pipeline route from Gazprom on January 1.

The floating storage and regasfication unit, the “LNG Croatia”, arrived at the Spanish LNG import terminal at Sagunto, near the eastern port city of Valencia. to take on a cool-down cargo for the commissioning of the new Croatian LNG import project at the Balkan nation’s Krk Island.

The upward momentum of Atlantic Basin headline shipping charter rates and economics was halted in its tracks and rates dropped from mid-high $50,000 per day to the mid-high $40,000 per day in early September before recovering, according to the monthly LNG shipping review from London-based brokers Simpson Spence Young.

“AB economics went from 100 percent LNG and 50 percent-100 percent hire back to load-port to hub economics,” said the report.

With regard to cancellations, five or fewer cargoes were cancelled for November, marking the lowest number of monthly cancellations since May 2020.

This signalled further recovery of US exports into the fourth quarter.

“In the Pacific region, Japan-Korea Marker gains were supported on a mixture of production uncertainties and stronger end-user demand,” it added.

The report noted that on the demand side, the Japanese Meteorological Agency said in its winter weather report that 10 out of 12 regions in the country are expected to experience cold temperatures below the 30-year-average over December 2020-February 2021, which is the country’s peak winter heating demand season.

“Additionally, in South Korea two consecutive typhoons led to alternative fuels being sought in the prompt market. This supported spot purchasing of LNG and additional coal imports,” said the report.

“The Pacific Basin also remained long with independent and portfolio player length on offer throughout the month. There were certain loadings which were faced with fewer suitable candidates and these vessels commanded premium rates,” stated Simpson Spence Young.

“For the most part however, headline rates for Tri-Fuel, Diesel-Electrics (TFDE) vessels were largely in the mid-high $40s with BB 100 percent LNG and 50 percent-100 percent hire back to load-port,” stated the report.

“On the newbuilding front, SMART LNG a joint venture of Russian shipowner Sovcomflot and compatriot energy company Novatek announced the contract signings on orders for 10 Arc7 LNG carrier newbuilds. The ships ordered will serve the Arctic LNG 2 project,” it added.

Furthermore, three new offtake contracts were signed in September.

Shell has agreed a long-term LNG supply agreement with Hungary for 0.25 Bcm per annum of gas equivalent via the planned Croatia LNG import terminal.

Hungary’s state-owned MVM, through its trading subsidiary MFGK, booked 1 Bcm per annum of regasification capacity at the 2.6 per annum of LNG import terminal in Croatia, which is due to begin operations in January 2021.

“At the time, MFGK pledged to source its LNG imports for the facility only from western European players so as to reduce its dependence on Russian gas,” said the report.

“India’s Bharat Petroleum Corp. signed a 15-year Brent-linked LNG purchase contract from Mozambique LNG for the supply of 1 MTPA and UK natural gas company Centrica has signed a deal with China’s Shenergy for the supply of LNG,” it said. 

June 21 (LNGJ) – Future LNG importer Croatia has purchased control of nine Northern Adriatic and Marica area gas fields offshore the Balkan state from Italian energy company Eni. The Croatia state-backed company INI has agreed to buy Eni Croatia BV and become the 100 percent owner and sole operator of the fields. The transaction covers production of almost 380,000 cubic metres per day of gas and marks Eni’s exit from Croatian exploration and production. Eni and INA had previously worked in a 50-50 joint venture since 1996 under a production-sharing agreement with the Croatian government. Eni said the sale of gas to Italy from the Marica area would continue under a commercial agreement. Other stakeholders in INA are the Croatian government with 44.8 percent and private and institutional investors with just over 6 percent. The Hungarian MOL energy group owns 49.1 percent of INI.

April 19 (LNGJ) - Chart Ferox, a subsidiary of US LNG equipment company Chart Industries, said it was awarded a contract for the design, manufacture and commissioning of the first LNG vehicle fueling station in the Balkan state of Croatia. “The skidded design incorporates our recently introduced 60 cubic metres horizontal cryogenic storage tank together with many other innovative features for enhanced reliability and economy,” said Chart. The company added that its proprietary vaporization technology would ensure that the station was capable of fueling all LNG vehicles available on the market, regardless of whether they are equipped with spark ignited or compression engines. The Croatian facility is scheduled to be commissioned and fully operational by the start of the fourth quarter of 2018.

Sept 18 (LNG) - Croatia, the Balkan and European Union-member currently developing its first LNG import terminal at an island in the Adriatic, has just signed a new pipeline import contract with Russian natural gas company Gazprom. “Gazprom Export and the Croatia have signed a long-term contract on natural gas supplies for the period from 1 October 2017 to 31 December 2027,” said Gazprom. “The annual supply volume within the contract amounts to 1 billion cubic metres with 0.25 Bcm is to be delivered in the fourth quarter of 2017,” it added. The Croatians said they were “exceptionally satisfied” with signing this contract with Gazprom. “Our cooperation with strong reliable partner provides the Croatian market with secure and reliable gas supply,” said Pavao Vujnovac, President of the gas supply company Croatia Prvo Plinarsko Drustvo.