Japanese LNG imports soar by over 16 percent even at higher prices while thermal coal deliveries also rise
Japanese liquefied natural gas imports rose by over 16 percent in April even at higher prices while thermal coal deliveries also increased as the nation additionally prepared for more nuclear plant re-starts in competition to LNG.
Intercontinental Exchange plans launch of new LNG futures for North-West Europe and South-West Europe
Intercontinental Exchange, a leading global provider of energy trading platforms for futures and options, said it planned to launch two liquefied natural gas futures contracts for North-West Europe and South-West Europe and three supporting French, German and Italian natural gas futures.
European LNG cargo prices still near highs after record surge this week as Russian gas supply crisis escalated
European Union natural gas prices and LNG values hit record levels this week and the benchmark Dutch Title Transfer facility price was still just below $60 per million British thermal units after the Russian gas dispute escalated while Asian LNG spot cargo prices also gained ground on the week, though at a slower pace than the EU market.
Japex will bring expertise from Fukushima LNG terminal to building one for Vietnam's Haiphong port
Japan Petroleum Exploration (Japex), which operates the main LNG import terminal in Japan’s Fukushima Prefecture, is taking its expertise to Vietnam to help develop an LNG receiving terminal in the Vietnamese port city of Haiphong.
Thai energy group PTT and Tokyo Gas form venture for Thailand LNG trucking and power services
PTT Group, the national energy company of Thailand, has started a joint venture with Tokyo Gas to help with fuel switching in the southeast Asian nation, including small-scale truck deliveries of liquefied natural gas.
Demand for LNG surges amid supply shortfall concerns reflected in soaring Asian and European prices
Demand for liquefied natural gas cargoes surged worldwide as liftings fell amid concerns about a coming global shortage of supplies leading to a jump in North Asian spot cargo prices to over $16.00 for October delivery and European natural gas values reaching their highest for the season since the early 2000s.
Tellurian Chairman Souki discloses LNG project details including timing of financing and construction
Tellurian Executive Chairman Charif Souki, whose Driftwood LNG export venture in Louisiana has sold a combined 6 million tonnes per annum of cargoes to global commodities firms Vitol and Gunvor, has disclosed details of the timing of financing arrangements and the start of full construction.
Souki’s latest declarations set a target of the end of the first quarter of 2022 for engineering, procurement and construction (EPC) contract holder Bechtel to have a notice to proceed with full building work.
The Chairman added that Tellurian also expected to be able to announce the banking group that would finance the Driftwood plant by the end of 2021.
While the Driftwood project has permits to construction liquefaction Trains for up to 27.6 million tonnes per annum, the first phase was likely to be much less, between about 10 MTPA and 16 MTPA.
Souki noted that around 65 percent of the expected first-phase capacity had already been sold to Gunvor and Vitol.
He stated that Tellurian was continuing to work on securing more supply deals to cover the remaining capacity for the project's first phase.
In May and June 2021 Tellurian signed 10-year agreements to sell 3 MTPA LNG each to both Vitol and Gunvor.
Tellurian’s SPAs with Vitol and Gunvor are for volumes indexed to a combination of two indices, the Japan-Korea Marker price for spot cargoes and the European benchmark Dutch Title Transfer Facility (TTF), each netted back for transportation charges.
Tellurian said after the deals that at today’s prices, each of the SPAs with Vitol and Gunvor are valued at around $12 billion in revenue over 10 years for the Gulf Coast venture
The project also signed a long-term lease in June 2021 securing the site to build the plant on the west bank of the Calcasieu River, just south of Lake Charles
Tellurian has also said that it wanted to produce all the feed gas needed for the plant and would not sanction the project until it had secured sufficient upstream reserves for the first phase.
Based on its current drilling programme in the Haynesville Shale in northern Louisiana, Tellurian expects to have production by the end of the year, which is three times the volume it was producing at the end of 2020.
Souki said that the company would need to have substantially more drilling, about 1.5 Bcf per day, to reach its goal.
Chinese natural gas production increases along with needs for LNG shipments and pipeline gas imports
China said its natural gas production last month increased by 7 percent from the same month a year ago as its LNG and pipeline gas import needs also rose.
