LNG

Jan 29 (LNGJ) – Deliveries are continuing to flow in the first half of February for European import terminals in Belgium, the UK and the Netherlands. The “Maran Gas Troy” with 159,000 cubic metres capacity is due to deliver a US cargo on February 4 to the Zeebrugge import terminal in Belgium, according to shipping data. The cargo was lifted on January 18 from the Sabine Pass plant in Louisiana.

   The “Rias Baixas Knutsen” with 180,000 cubic metres capacity is scheduled to discharge a US LNG cargo on February 6 at the UK Isle of Grain terminal located southeast of London. The shipment was loaded on January 22 at the Corpus Christi facility in Texas. The “BW Pavilion Aranda” with 173,400 cubic metres capacity will deliver a US cargo on February 11 to the Dutch Gate terminal in Rotterdam. The shipment was lifted on January 27 from the Sabine Pass plant.

Shell signed two long-term LNG sale and purchase agreements for the supply of up to 3.5 million tonnes per annum of LNG from Qatar to the Netherlands while also completing the sale of its interests in the Masela block in Indonesia for an LNG project.

The European Commission said it was again pursuing plans to end Russian liquefied natural gas supplies being sold in the European Union and has asked the 27 member states not to sign any new supply contracts.

Gasunie, the co-owner of the Dutch Rotterdam and Eemshaven LNG import facilities and a stakeholder in the onshore German regasification facility planned for Brunsbüttel, said annual results were impacted by the energy market turmoil caused by Russia’s invasion of Ukraine.

The Netherlands said that almost a year after Russia invaded Ukraine, the country had virtually stopped importing energy from Russia, though received about the same amount of Russian LNG in 2022 than in the previous year and was looking at setting up new LNG import terminals and joint purchasing global cargoes with the European Union.

Woodside Energy, the operator of two LNG export plants in Western Australia, has shipped an LNG cargo to the Dutch Gate import terminal in Rotterdam on behalf of Germany’s Uniper Global Commodities.

Royal Vopak, the Netherlands-based global storage company with stakes in liquefied natural gas terminals and a new LNG import project for Hong Kong, increased its first-quarter revenues and net profits as it also helped Germany’s LNG import ambitions.

Uniper, the German utility and European liquefied natural gas capacity holder and cargo trader, said it had arranged increased capacity rights at the Dutch Gate LNG import terminal in Rotterdam.

Royal Vopak, the Dutch global energy storage company, has joined with US major ExxonMobil, a leading LNG exporter, to study the liquefied natural gas import possibilities for South Africa to become an LNG importer to boost gas-fired power and clean energy availability.

Vopak and ExxonMobil have signed a memorandum of understanding on studying the development of a South African regasification facility.

So far no third-parties are involved in the process to make South African an LNG importing nation in the next couple of years.

“The two companies will evaluate what infrastructure South Africa needs to access LNG. A shift to this resource would allow the country to take advantage of a reliable cost-effective fuel source, while also reducing emissions,” said a joint statement.

Kees van Seventer, President of Vopak LNG, said teaming up with ExxonMobil would allow the development of resilient and efficient LNG infrastructure for South Africa.

“With our presence of nearly 25 years in South Africa, we are committed to enhance Vopak's terminal network in the country with sustainable infrastructure solutions,” added Seventer.

Vopak is an experienced LNG terminal operator and has a 50 percent stake in the Dutch Gate LNG facility in Rotterdam with 540,000 cubic metres capacity of storage.

It additionally has a 60 percent shareholding in the Mexican LNG terminal at Altamira in the Gulf of Mexico with 300,000 of tank capacity.

ExxonMobil is a global partner of Qatar Petroleum and has volumes of LNG for export in the three leading supply nations, Australia, Qatar and the United States.

“ExxonMobil is excited to work with Vopak to evaluate innovative approaches to bring competitive LNG projects to South Africa,” said ExxonMobil LNG Market Development President Irtiza Sayyed.

Affiliates of ExxonMobil and Vopak signed the accord to work together on a feasibility study to assess the commercial, technical and regulatory aspects of an LNG terminal in South Africa.

ExxonMobil and Vopak plan to evaluate the infrastructure critical for South Africa’s needs and to take advantage of the benefits that LNG can bring to the country, including providing a reliable, cost-effective fuel source, as well as an option for reducing emissions.

“These benefits can be achieved by repurposing older coal power plants, converting peaking power plants and securing supply for South Africa’s industrial sector,” they added.

Glencore, the UK-listed commodities and mining company, has completed the takeover of the loss-making liquefied natural gas business of Danish energy company Orsted, including long-term capacity at the Dutch Gate LNG import terminal in Rotterdam.

Orsted had entered into an agreement in 2007 with the Dutch LNG terminal for the right to use 3 billion cubic metres of annual regasification capacity from 2011 to 2031.

The Danish company’s LNG business consists of the Dutch Gate capacity and five LNG purchase agreements.

The transaction was first revealed at the start of 2020 and was only now being completed.

Anglo-Swiss company Glencore is seeking to increase its LNG profile to match commodities market rivals Gunvor, Vitol and Trafigura.

The firm has growing LNG trading operations in Asia and Europe and competes globally for supply tenders.

Orsted’s other main businesses are in the wind and solar energy sectors.

The Orsted LNG business will be owned by Glencore’s oil trading division.

“We are increasingly focusing on the LNG business as a key part of our Oil division strategy and the Orsted transaction represents an important milestone in that journey,” said Glencore Oil’s head Alex Sanna.

“We see good opportunities in the market place and we are excited to continue to grow our LNG marketing portfolio,” Sanna added.

Glencore has a major position in the coal industry and it expects coal to play a continued role in the world’s energy mix, especially in Asia.

In Europe and the Americas, coal demand is declining with nations choosing to switch to natural gas.

Glencore is one of the most diversified natural resource companies and a major producer and marketer of more than 60 commodities and has stakes in around 150 mining and metallurgical sites and oil production assets.