LNG

Italian gas grid and LNG terminals operator Societa Nazionale Metanodotti (SNAM) has given a detailed update on the plans to deploy a floating storage and regasification unit (FSRU) at the port of Ravenna in the North of the Adriatic coast.

July 3 (LNGJ) - Supplies of regasified LNG delivered from the European network of import terminals to the European Union’s gas pipelines system declined by 14.2 percent in the first six months of 2024 compared with the same period last year to around 58.5 billion cubic metres.

   The delivered volumes also dropped by 32 percent in June compared with May 2024. According to gas industry data LNG imports have provided 36 percent of Europe’s natural gas needs this year so far up until the end of June.

Gasunie, one of the main LNG importers in the Netherlands with global storage giant Vopak, said the company’s EnergyStock subsidiary has issued a call for “expressions of interest” in long-term flexibility Dutch gas storages services.

The Gasunie unit’s main facility is located in the north of the Netherlands and connected to the Dutch gas transmission network at the heart of the Dutch Title Transfer Facility (TTF) benchmark gas market.

“In this turbulent energy market, EnergyStock has experienced scarcity of gas storage services and a market demand for long-term contracts,” the company explained.

“In order to satisfy this demand and give market parties the opportunity to establish certainty in uncertain times, EnergyStock will offer long-term flexibility services for a duration of five to 10 years, with effect from Storage Year 2025,” the statement from Gasunie explained.

Non-binding phase

“As a first step, EnergyStock invites interested market parties to formulate a non-binding ‘Expression of Interest’ for long-term flexibility services,” said Gasunie.

“This process starts on July 2 and interested parties are asked to express their interest no later than 31 July 2024,” it added.

In addition to long-term services, EnergyStock stated that it would continue to offer short-term flexibility services, short lead time rights and interruptible services.

The EnergyStock natural gas is stored in six salt caverns at a depth between 1,000 metres to 1,500 metres and whose gas volume ranges from 5,000 megawatt to 10,000 MWh.

The technical lay-out consists of two tubings per cavern instead of one tubing that results in an exceptionally high injection and withdrawal rates.

Gas is injected into the caverns using electric compressors and is withdrawn using equipment for heating, pressure reduction and gas drying.

“Injection and withdrawal capacity is available 24/7 throughout the year,” said Gasunie.

The facility has high reliability with an efficient short period of yearly maintenance that is principally planned during summer shoulder months.

Supply balancing

“Gasunie aims to facilitate the continuous balancing of supply for its customers and demand of natural gas,” said Gasunie in its statement.

“They achieve this by offering fast-cycle gas storage services using their unique natural gas storage in the northern part of the Netherlands,” it added.

Gasunie’s network is one of the largest high-pressure pipeline networks in Europe, comprising over 17,000 kilometres (10,650 miles) of pipelines in the Netherlands and northern Germany.

The Dutch state-backed utility also has LNG import facility stakes in the Gate terminal in Rotterdam and the Eemshaven import hub in Groningen,

The utility is additionally involved in the German natural gas market and in developing the onshore LNG terminal in Brunsbüttel on the Elbe.

EnergyStock aims to guarantee a transparent process wherein parties have a level playing field.

“We decided to auction our short-term flexibility services for Storage Year 2025 in the fourth quarter of 2024,” said the company.

“Details of the auction will be shared prior to the auction. The capacity and working gas volume to be auctioned will depend on the progress made with long-term agreements,” it added.

Gas Infrastructure Europe (GIE), the association representing the interests of European Union gas infrastructure operators in gas transmission, storage and liquefied natural gas, said the flow of LNG to European terminals hit its lowest since December 2021.

The GIE, which is based in Brussels and represents 70 member companies from 26 countries, provided the information from its gas grid data.

LNG supplies from the main terminals in the EU in nations such as Belgium, France, the Netherlands, Spain, Italy, Portugal and Germany plunged in May 2024.

The decline in regasified LNG flowing into gas grids dropped by a quarter to around 6.75 million tonnes.

Regasified LNG flows were also down by 13 percent compard with April 2024.

Total LNG supplies from terminals to Europe’s gas pipeline system was also lower in the January to May period 2024.

More FSRUs 

The decreased regasified LNG volumes were logged even as the EU had more terminals in operation as floating facilities came on line in Italy and Germany.

The total for the year to date though May fell by 10 percent compared with the first five months of last year to reached around 37.5MT.

Another body in the EU, the European Network of Transmission System Operators for Gas (ENTSOG), said that by the end of May the share of LNG was still the largest among sources of gas supply to Europe in 2024, standing at 32 percent.

Thus compared the 28 percent of gas provided from the Norwegian Continental Shelf and another 18 percent that came from gas storage facilities.

Other sources of gas received in Europe included 10 percent recived by pipleines from Algeria.

The Algerian volumes were delivered directly to Spain or via Tunisia to Italy by way of Sicily.

The share of gas supplies from Russia and volumes via Ukraine came to 9.5 percent.

Another 2.5 percent of European gas volumes originated from the UK North Sea.

The US remained the largest supplier of LNG to import terminals in EU and the UK followed by Qatar.

European liquefied natural gas and wholesale pipeline gas prices soared by over 16 percent on the week while stronger Asian spot cargo values and higher global gas futures prices signalled a return of volatility to a market harbouring doubts about the stability of supplies.

Deutsche Regas GmbH, the operator of the floating liquefied natural gas import terminal at the Baltic Sea port of Lubmin, is now making more progress on meeting operational standards at the company’s second German Baltic regasification terminal, located at the port of Mukran on Germany’s largest island of Rügen.

The floating storage and regasification unit (FSRU) “Energos Power” docked at Mukran on the tourist island of Rügen on February 24.

The second German Baltic Sea received the emission control and water law permits on April 10 for the operation of the terminal under the jurisdiction of the state of Mecklenburg-Vorpommern.

Targets

“We have now been able to install all of the currently planned expansion stages for further noise-reducing measures on the ‘FSRU Energos Power’ vessel,” explained Deutsche Regas.

“They make a noticeable contribution to further reducing noise emissions from the FSRU,” stated Deutsche Regas.

The company noted that an independent assessor's office continues to measure and ongoing noise emissions in the area of the Mukran industrial port.

“These measurements are determining the comprehensive effectiveness of the noise reduction,” added Deutsche Regas.

“They also confirm that all legal limit values ​​were adhered to at all times and throughout the entire trial operation,” the company said.

“By installing the noise-reducing measures, we would like to keep possible exposure for all residents, for all our neighbours and our neighbours in the area of ​​the Mukran industrial port as low as possible,” stated Deutsche Regas.

Regas vessel

The “Energos Power” is 300 metres in length and is part of a plan to provide adequate natural gas to replace pipeline gas previously received from Russia’s Gazprom.

The FSRU “Energos Power” with 174,000 cubic metres capacity had formerly been called the “Transgas Power”.

The Mukran floating LNG operations include a 50 kilometres (31 miles) pipeline that will transport the regasified LNG to the mainland and into the German gas grid.

Deutsche ReGas has cooperated on the project with German Transmission System Operator, Gascade GmbH.

Gascade has been overseeing connections to gas grids in the rest of Germany and the European Union via the North European Natural Gas Pipeline (NEL), the Ostsee-Pipeline-Anbindungsleitung (OPAL) and the European Gas Pipeline Link (EUGAL).

The energy terminal will feed up to 13.5 billion cubic metres of gas annually into the EUGAL/OPAL and NEL gas pipeline network, the most important gas supply lines in eastern Germany.

Fortum, the Finnish energy and power company with European Union-wide operations and that was forced to give up the German natural gas and energy supplier Uniper which had relied on Russian pipeline supplies from Gazprom, reported another substantial drop in profits.

The official start of the Atlantic Hurricane season is still three months away but forecasters say it’s never too early to start preparing for what may or may not come in 2024, especially along the Gulf Coast of Texas and Louisiana.

Jan 22 (LNG) - US and Russian cargoes are scheduled for delivery to European LNG import terminals in the coming week with the Dutch Title Transfer Facility day-ahead spot price on the European Energy Exchange on January 22 decreasing to the equivalent of $8.955 per million British thermal units from $9.109 per MMBtu at the end of last week.

   The “Christophe De Margerie” with 172,600 cubic metres capacity is scheduled to deliver a Russian cargo on January 24 to the Zeebrugge terminal in Belgium, according to shipping data. The cargo was lifted on January 17 from the Yamal plant in northern Siberia. Germany is scheduled to receive a US cargo on January 29 at the import terminal at Brunsbüttel on the Elbe. The cargo will be delivered by the “Elisa Aquila” vessel with 170,500 cubic metres capacity. The volumes were loaded on January 14 at the Cameron plant in Louisiana.

European and Asian liquefied natural gas prices fell over the past week with the Dutch Title Transfer Facility benchmark declining by over 7 percent as European Union storage levels hit 100 percent and energy security concerns waned with cargo deliveries gathering pace and seasonal temperatures prevailed.