LNG

One of Australia’s leading chief executives, Kevin Gallagher of liquefied natural gas and energy company Santos, has been given permission to undertake flexible working arrangements.

Japanese spot liquefied natural gas cargoes were contracted for Japan last month at a cost of $3.90 per million British thermal units less than in April 2018 and down $1.20 per MMBtu versus March 2019.

Japanese liquefied natural gas imports have gone into reverse as shipments dropped for a fifth straight month amid competition from thermal coal and nuclear and with Australian and spot cargoes replacing deliveries from the Middle East and Asia.

Cargoes delivered to Japan in March 2019 amounted to 7.29 million tonnes compared with 7.93MT in February 2018, a fall of 8.1 percent versus March 2018.

Japan’s February deliveries had plunged by 11.4 percent and the last time Japanese imports rose was in October 2018 when 6.53MT was received, a 6.5 rise on the previous October. Even during the peak winter months from November 2018 through January 2019, imports dropped

Nine of Japan's nuclear power plants, which numbered 54 on line before the Fukushima disaster in 2011, have re-started to reduce LNG needs.

Thermal coal imports were preferred over LNG in March as 9.58MT was imported, an increase on February, though down 3 percent on March 2018.

The cost of the March 2019 cargoes came to 445.29 billion yen ($3.97Bln), a rise of 7.5 percent from the 414.35Bln yen ($3.70Bln) the cargoes cost in the same month a year ago.

For balance of payments purposes, Japan has been trying for a number of years to bring LNG import costs under control.

The Ministry of Finance data for March showed that Asian LNG shipments from nations such as Malaysia and Indonesia, Papua New Guinea and Brunei dropped 20.7 percent year-on-year to 1.73MT.

Imports from the Middle East region fell 26.7 percent versus 2018, with shipments from countries like Qatar, the United Arab Emirates and Oman totalling 1.32MT in March.

US shipments amounted to 198,000 tonnes, down on the 335,000 tonnes received in February. 

Monthly Russian shipments from the Sakhalin Island plant in the Far East dropped 19.8 percent in March to 524,000 tonnes.

The balance of imports from Australia, African nations and the spot market amounted to 3.51MT, a jump of 24 percent compared with the 2.83MT received in February 2019. The volume of cargoes was also up 11.6 percent year-on-year versus the 3.14MT logged in March 2018.

Japanese LNG imports had declined by 0.9 percent in 2018. The 2018 imports amounted to 82.85MT versus 83.63MT received in 2017.

Japan’s 2018 import bill was 20.8 percent higher than in 2017 at 4,730Bln yen ($43.14Bln). The Japanese had paid 19.3 percent more in 2017 with an LNG bill of 3,915Bln yen ($35.58Bln).

Japanese liquefied natural gas imports dropped by 8.7 percent in January as more coal and nuclear power generation offset the need for LNG cargoes, though the cost of the LNG rose by more than 15 percent compared with a year ago.

Shipments to Japan in January amounted to 7.54 million tonnes compared with 8.26MT in January 2018.

The December 2018 imports had amounted to 7.25MT compared with 7.95MT in December 2017.

Nine of Japan's nuclear power plants, which numbered 54 on line before the Fukushima disaster in 2011, have re-started to reduce LNG needs.

A rise in January thermal coal imports also helped offset the drop in LNG cargoes. Coal shipments rose 7 percent in January compared with the year-ago period to 10.67MT.

The cost of the January 2019 cargoes came in at 479.22 billion yen ($4.32Bln), a rise of 15.3 percent from the 416.29Bln yen ($3.75Bln) the cargoes cost in the same month a year ago.

The Ministry of Finance data for January showed that Asian LNG shipments from nations such as Malaysia and Indonesia, Papua New Guinea and Brunei dropped 25.8 percent to 1.91MT.

Imports from the Middle East region fell 23.7 percent year-on-year, with shipments from countries like Qatar, the United Arab Emirates and Oman totalling 1.48MT in January 2019.

US shipments of LNG amounted to 267,000 tonnes, a rise of 36 percent on the same month last year.

Japan imported 2.49MT of US cargoes in 2018 and that figure will rise in 2019 as the nation will be importing more cargoes.

These will come from the Cheniere Energy-owned Sabine Pass plant in Louisiana and the Cove Point plant in Maryland operated by Dominion Energy, as well as the newest Cameron LNG plant in Louisiana set to start operations under Sempra Energy and with Japanese shareholders.

Monthly Russian shipments from the Sakhalin Island plant in the Far East declined 7.6 percent in January to 617,000 tonnes.

The balance of imports from other countries amounted to 3.26MT, with most volumes coming from Australia, backed by shipments from African nations and the spot market.

Japanese LNG imports had declined by 0.9 percent in 2018. The 2018 imports amounted to 82.85MT versus 83.63MT received in 2017.

Japan’s 2018 import bill was 20.8 percent higher than in 2017 at 4,730Bln yen ($43.14Bln), according to the Finance Ministry. Japan had paid 19.3 percent more in 2017 with an LNG bill of 3,915Bln yen ($35.58Bln).

March 14 (LNGJ) - Petronas, the Malaysian energy company and LNG producer, has signed an accord with Japanese utility Tokyo Gas to supply cargoes for a period of up to 13 years. The deliveries from Petronas subsidiary Malaysia LNG will start in April 2018 and will amount to around 500,000 tonnes per annum for the first six years, with the possibility of a volume increase to 900,000 tonnes per annum for the remaining seven years. Petronas Vice President of LNG Marketing, Ahmad Adly Alias, pointed out that Malaysia has a 35-year LNG supply relationship with Tokyo Gas. “At Petronas, we value these relationships and the trust placed in our company for a secure and reliable supply of LNG,” he added. The Petronas LNG production plant at Bintulu in Sarawak has nine Trains and 30 million tonnes per annum of output. The company also operates the world’s first floating LNG production hull, deployed offshore Sarawak.