Four EU cargoes
Nov 10 (LNGJ) - Four cargoes are heading for the European Union in the next couple of weeks from Qatar, Trinidad and the US. The Qatari Q-Flex vessel “Al Karaana” with 205,990 cubic metres capacity will berth at Zeebrugge on November 15 with volumes from Ras Laffan lifted on October 29. The “BW Cassia” with 170,8000 cubic metres capacity will discharge a Trinidad cargo on November 15 at the Eemshaven terminal in Groningen, according to shipping data. The volumes were lifted on October 29 from the Caribbean plant at Point Fortin.
The carrier “Isabella” with 174,130 cubic metres of capacity is scheduled to discharge a US cargo on November 19 at the Dutch Gate terminal in Rotterdam. The cargo was lifted on November 7 from the Sabine Pass plant in Louisiana. Germany will receive a cargo on November 23 at the North Sea port of Wilhelmshaven on board the carrier “Adriano Knutsen” with 179,980 cubic metres of capacity. The volumes were loaded on November 7 at the Corpus Christi plant in Texas.
Vopak posts surge in net profits amid EU LNG expansions and energy joint ventures in Canada and India
Royal Vopak of the Netherlands, the world’s leading independent tank storage company and a leading liquefied natural gas terminals shareholder, posted higher first-quarter net profits and revenues as it continued to develop European Union LNG infrastructure and expanded energy joint ventures in Canada and India.
LNG will be less costly for Dutch than a written-off Groningen gas field while compensation to hit $10Bln
The Netherlands said production at the Groningen natural gas field would be lowered to the minimal amount needed to keep wells operational in the coming 12 months and the field is still scheduled to be shut down in 2024 even amid gas shortages, while floating LNG terminals have begun operating offshore the Dutch province.
The Government said in a statement that the Groningen field, formerly the largest supplier to the Netherlands and which sent some volumes to Germany, will be capped at 2.8 billion cubic metres from the start of October 2022, down from 4.5 Bcm.
The Groningen field is operated by a joint venture comprising Shell and ExxonMobil and still holds huge reserves of natural gas.
Production at Groningen has gradually been reduced over the past 10 years because of complaints about earth tremors.
The Government said that all 11 production locations in the Groningen region would remain operational until at least April 2023 to enable an increase in production in case of an emergency.
More claims
The authorities added that more than 100 claims for structural damage had been filed since two earthquakes, the largest measuring 2.7 on the Richter scale, hit Groningen province on Saturday, September 24.
Most of the 1,000 tremors reported in Groningen since 1986 have been measured at 2.7 on the Richter scale or less.
Analysts note that such small tremors can be felt by some people though are unlikely to cause damage.
An investigation published by the Dutch financial newspaper, “Het Financieele Dagblad”, said that the Dutch Government had earned more than €360 billion ($349Bln) in revenues from the Groningen gas field since it came on stream.
“Total revenues from the gas region amounted to €428Bln when adjusted for inflation, of which €363.7Bln went to the government while €64.7Bln was split between Shell and ExxonMobil,” said the report.
Surge in costs
The report noted that Groningen production costs started to rise rapidly from less than €500 million a year in 2013 to a peak of €2.9Bln in 2018, as the government started to compensate people in Groningen who said their homes had been damaged by tremors.
A further €8.36Bln has been set aside by the Dutch Government for further compensation payments for Groningen residents.
The Dutch floating LNG facilities are sited at Eemshaven on the waterway between Eemshaven port in the province of Groningen and the North Sea. Analysts added that LNG imports would likely be less costly in the long run than the controversial Groningen gas field with its soaring compensation claims.
Eemshaven LNG comprises two floating storage and regasification units (FSRUs), the “Golar Igloo” vessel and a regasification barge provided by Belgian shipping company Exmar.
The FSRUs supply the Dutch system and most regasification capacity at Eemshaven has been reserved for the Dutch operations of Shell and the French utility and energy group Engie, while the main utility of the Czech Republic is also importing shipments.
