LNG

Gunvor Group, the Swiss-based global commodities firm and trader in oil, petroleum products and liquefied natural gas with future LNG supply deals in Texas and Louisiana, posted a 47 percent drop in annual net profits as prices declined across the energy spectrum.

Nov 28 (LNGJ) - Delfin Midstream, the US LNG project developer, and global commodities firm Gunvor Group, have signed a long-term LNG Sale and Purchase Agreement. Delfin said that under the 15-year SPA, Delfin would supply between 500,000 tonnes and 1 million tonnes of LNG per annum to Gunvor on a free-on-board basis at the Delfin Deepwater Port to be located 40 nautical miles off the coast of Louisiana.

   “We continue to support US LNG projects and unlock new sources to meet the growing global LNG demand while further expanding our supply portfolio,” said Kalpesh Patel, Co-Head of LNG Trading at Gunvor. Dudley Poston, Chief Executive of Delfin, said he was pleased to enter into a long-term LNG deal. “This latest sale and purchase agreement further demonstrates our attractiveness as a long-term source of scalable, reliable and clean LNG,” Poston stated.

Belgian shipping company Exmar, owner of the “Tango FLNG” vessel last deployed in Argentina, has returned steady first-half results and said it was still pursuing opportunities for the LNG production barge as well as for a floating storage and regasification unit.

Exmar gave details of the LNG developments as it posted a 23 percent increase in third-quarter gross earnings for the shipping division of $4.4 million compared to $3.6 million in the same three months of 2020.

The earnings for the infrastructure division, comprising the two floating LNG vessels, was negatively affected by the current unemployment of the regasification vessel, known as “FSRU S188”.

This is because the same period of 2020 was boosted by the recognition of a provision of $16.4M on uncollected revenues from Argentine energy company YPF on the “Tango FLNG” charter cancellation.

The earnings, however, did includes an early termination fee of $56.8M for the “FSRU S188” charter agreement by global commodities company Gunvor.

“Exmar’s marketing efforts for employment of ‘Tango FLNG’ confirm strong market interest in our liquefaction barge,” stated the Antwerp-based company.

“Current high oil and gas prices further increase the interest in ‘Tango FLNG’. Term sheet discussions are ongoing with various parties. The monthly settlement payments from YPF are diligently being honoured,” added Exmar in reference to the settlement accord with YPF.

“Following the termination of the charter party with Gunvor earlier this year, the search for employment for the ‘FSRU S188’ is ongoing,” stated Exmar.

“Technical and commercial discussions for several opportunities are ongoing,” it added.

Additionally, Exmar noted that the company’s only conventional LNG carrier, the “Excalibur”, remains under time charter to US company Excelerate Energy and is expected to be redelivered at the beginning of 2022.

“The current strong LNG product market and LNG freight rates give us confidence we will be able to secure further employment either trading or as a conversion candidate,” said the company.

Exmar has slowly withdrawn from the LNG market but its gas fleet still numbers 40 vessels, about half comprising liquefied petroleum gas (LPG) tankers, as well 10 pressurized tankers and as some eight other ships, including very large gas carriers.

The company said it expected a further strengthening of its liquidity position in the next few months.

One of its two new VLGCs, the “Flanders Innovation”, was put into operation and the “Flanders Pioneer” is expected to be delivered at the end of the third quarter of 2021.

“The lease financing for both vessels has been arranged and for both a minimum five-year charter with Equinor ASA (Norway) has been signed,” added Exmar. 

Tellurian Inc., developer of the Driftwood liquefied natural gas plant in Louisiana, has terminated stock and LNG purchase agreements with French major TotalEnergies after signing newer supply deals with global commodities firms Vitol Inc. and Gunvor Group.

Jan 19 ((LNGJ) - Commonwealth LNG, the US company with plans to develop an export plant on the Calcasieu River near Cameron in Louisiana, is soliciting bids to reserve offtake from its planned 8.4 million tonnes per annum of output. Commonwealth said it was acting in association with global commodities firm Gunvor.

   “It is the first ever tender process in which prospective LNG customers can secure future term supply at volumes, pricing and durations of their choosing through competitive bidding,” said Commonwealth. “LNG will be made available under tolling, free on board (FOB) or delivered at place (DAP) agreements,’ it said. Commonwealth executives said a different approach was warranted following changes in the energy market resulting from the Covid-19 pandemic.

Gunvor Group, the global commodities and energy trader, has released its annual results showing it delivered 16 million tonnes of liquefied natural gas, though overall revenues dropped by more than half because of lower prices.

Gunvor trades in energy from its main offices in cities such as Geneva in Switzerland, Singapore, the Chinese city of Shanghai and Houston in Texas.

The company, which also owns assets such as oil refineries in Rotterdam in the Netherlands and Antwerp in Belgium, reported revenues for 2019 of US$75 billion, a decrease of 54 percent, or US$87Bln, from 2018 when it had income of US$162Bln.

The group’s annual net profits after taxes came to $381M.

“Gunvor’s performance in 2019 was broad-based across all geographies and trading desks, and as a result the company realized strong trading gross profit,” it said.

Total trading volumes increased to 198 million MT from 184 million MT in 2018, mainly due to an increase in the trading of natural gas and LNG.

Gunvor said performance were particularly good at the US trading operations on Houston and Stamford, Connecticut.

“A solid contribution came from the European oil refining network and oil trading activity,” it added.
Gunvor said that “transitional” commodities like natural gas, LNG, liquefied petroleum gas and biofuels comprised 45 percent of total trading activity, an increase from 28 percent in 2018.

It also stated that the corporate overhaul it undertook in 2017 and 2018 to improve risk management and corporate governance enabled the company to effectively take advantage of favourable market conditions throughout the year.

“Gunvor subsequently entered 2020 with a strong balance sheet and liquidity position to meet the unexpected events, and posted a profit for the first quarter,” it explained.

Gunvor said it seamlessly transitioned to work-from-home at all offices across the globe, and trading activities remained unaffected by the Covid-19 pandemic.

“The company has continued to hire and undertake all normal core business operations. Trading performance remains strong across all geographies and desks, including shipping (with more than 100 vessels owned or under long-term charter),” it said.

However, Gunvor noted that the European refining sector was expected to remain challenging for the foreseeable future.

Regardless of the current market environment, Gunvor said it continued to view the long-term challenge for companies in the physical energy commodities trading sector to be effectively positioning themselves within the “energy transition”.

Gunvor acquired two biofuel plants and committed to no longer physically trade coal and activities ceased in 2018.

Flex LNG, the growing LNG shipping company with six vessels operating and seven others on order and whose largest shareholder is a company controlled by Norwegian magnate John Fredriksen, has entered into a time charter with a subsidiary of commodities firm Gunvor.