LNG

The Japanese Government’s key Minister of the Economy, Trade and Industry (METI), Yasutoshi Nishimura, said he had approved a proposal to help improve the nation’s emergency access to liquefied natural gas for power generation.

Minister Nishimura said in a statement that he would allow the government agency, the Japan Oil, Gas and Metals National Corporation (JOGMEC), to fund the purchase of spot LNG if required.

“Japan also plans to revise another law to allow the government to order large users to limit use of city gas in case of an emergency,” added the Nishimura statement.

Japanese LNG buyers who are the biggest utilities have been mindful of avoiding high-cost LNG purchases, though during August 2022 monthly LNG costs rose to over the US$6 billion ( 874.47 billion yen) level for the first time.

Rising energy costs are affecting the balance of payments of countries worldwide, though Japan is particuarly affected as it has no sizeable reserves of domestic energy resources and must buy in most of its oil, gas and coal.

However, the move on LNG supplies signals that there are limits to cutting off energy shipments as the Northern Hemisphere winter approaches.

Deliveries of LNG to Japan’s network of 37 terminals have amounted over the past few months to around 6.25 million tonnes, or amount 93 cargoes, according to trade figures from the Japanese Ministry of Finance.

Cargo competition

Even in the past week deliveries of LNG will slip as it lags North Asian LNG users China and South Korea in cargo numbers.

Shipping data shows that Chinese terminals are set to receive about 23 shipments in the week through October 16 compared with 18 bound for delivery to Korea and 14 shipments going to Japan.

Among JOGMEC’s traditional role is to help Japanese companies make equity investment in overseas energy projects as part of Japan’s focus on securing long-term oil and gas and other fuels and to make investments itself in important projects.

JOGMEC has also revised its statutes to investment in new and cleaner fuel ventures rather than just hydrocarbons and to raise its profile in sectors such as carbon-capture and storage.

Just last week, on October 8, JOGMEC agreed to collaborate with the Saudi Arabian Oil Company on upstream fuel ventures.

Hosono Tetsuhiro, Chairman and Chief Executive of JOGMEC, and Mohammed Al-Qahtani, Senior Vice President of Downstream at Saudi Aramco, signed the accord.

“JOGMEC intends to proactively support the implementation and/or provision of risk money, equity capital and liability guarantees, for a specific project in the Kingdom of Saudi Arabia related to the production and/or storage of hydrogen and ammonia, which are our new support areas under the revised JOGMEC law promulgated on May 20,” the agency explained.

Avenir LNG, the Norwegian-listed small-scale LNG project developer and vessel owner, has taken delivery of the “Avenir Achievement” as it expands its small-scale terminal and carrier business.

New Fortress Energy Inc., the New York-based supplier of LNG for power to Latin America and Asia, has signed an accord with a subsidiary of Italy’s Eni in the Republic of Congo for the deployment of LNG production equipment off the coast of the West African nation for a period of 20 years.

NFE said it would set up its “Fast LNG” facility to produce up to 1.4 million tonnes per annum of LNG in the associated gas fields off the Congo.

The deal in the form of a preliminary Heads of Agreement provides a framework for negotiating a long-term tolling agreement between NFE and Eni.

NFE said that this would be for the full capacity of the facility and for the purchase by NFE of around 1.2 million gallons of LNG per day pursuant to a 20-year free-on-board (FOB) sales and purchase agreement.

The Republic of Congo associated gas from oil production was expected to start in the second quarter of 2023.

'Perfect partner'

“This landmark partnership is a major milestone for our ‘Fast LNG’ business. Eni is a world-class organization and the perfect partner for the first ‘Fast LNG’ unit,” said Wes Edens, Chairman and Chief Executive of NFE.

“With production beginning next year, we believe that this is just the first of many deployments of this game-changing technology around the world,” stated Edens.

“The customers at our downstream terminals need access to affordable, clean and reliable energy. Our portfolio of ‘Fast LNG’ facilities allows us to deploy offshore infrastructure more quickly and affordably, adds low-cost LNG to our existing portfolio and diversifies our business,” Edens explained.

NFE had previously signed a first African deal with the northwest African nation of Mauritania.

That NFE agreement was for the development of an energy hub, including natural gas, power and LNG, utilizing existing offshore gas reserves owned by Mauritania as well as neighbouring Senegal.

The NFE “Fast LNG” design pairs modular, midsize liquefaction technology with jack-up rigs or similar floating infrastructure to enable a much lower cost and faster deployment schedule than floating liquefaction vessels.

Floating storage

Under the NFE plan, a permanently moored floating storage unit (FSU) would serve as an LNG storage facility alongside the floating liquefaction infrastructure, which can be deployed anywhere where there is abundant and stranded natural gas.

NFE said the HOA with Congo is subject to the finalization and execution of definitive agreements and a set of conditions expected to be completed and satisfied by the end of March 2022.

The company is also in advanced discussions for the deployment of this technology in several other markets around the world, including offshore the US.

NFE is additionally continuing to advance LNG-for-power projects in nations like Mexico, Nicaragua and Brazil as well as in the Caribbean and in Sri Lanka in Asia.

The company executed a 15-year natural gas supply agreement in Brazil at the end of 2021.

That deal was with a subsidiary of Norsk Hydro ASA for the supply of natural gas to the Alunorte Alumina Refinery in the northern Brazilian state of Pará.

NFE said it was advancing two Brazilian projects, one in Barcarena for Norsk Hydro and a second in Santa Catarina in southern Brazil.

The company said it was also positioned to supply LNG through the Santa Catarina terminal for power plants with more than 400MW of capacity from the second quarter of 2022.

New Fortress Energy has announced a cash distribution by Golar LNG Partners, an indirect subsidiary of New Fortress, the New York-based LNG-for-power company.

Dec 31 (LNGJ) - The main utility company in the former Yugoslav state of Montenegro, Elektro Privreda Crne Gore (EPCG), has signed a memorandum of understanding with Singapore-based LNG Alliance on LNG-for-power with prospects of a project emerging and comprising an LNG import terminal and two gas-fired power plants.

   “EPCG is working intensively on building partnerships with credible partners, whose participation would enable the implementation of planned investments,” said a statement. The MoU signatory for EPCG was Executive Director Nikola Rovčanin and LNG Alliance Chief Executive Muthu Chezhian signed for the Singaporean firm.

Italian energy company Eni has strengthened its presence in future LNG importer Vietnam through the acquisition of Block 115, located in the Song Hong basin and the nearby Ken Bau natural gas and condensate discovery.

Eni acquired a 100 percent interest in the Block from Krisenergy, an independent upstream company focused on the production and development of oil and gas in the basins of Southeast Asia.

“The acquired Block is adjacent to Block 114 where the operator Eni Vietnam and its partner Essar Exploration and Production Limited have recently announced the Ken Bau gas and condensate discovery currently under appraisal,” explained Eni.

Milan-based Eni said the new acreage also borders Block 116, operated by Eni Vietnam with a 100 percent participating interest.

The Block covers an area of 7,382 square kilometres with a water depth ranging from 90 metres to 1,000 metres.

“Eni's presence in the country is further strengthened with this acquisition, consolidating its position in the recently discovered Ken Bau play, in line with the strategy of expanding  its gas portfolio in the Far East,” said Eni.

Eni has been present in Vietnam since 2013, and currently operates five blocks all located in the under-explored Song Hong and Phu Khanh basins.

Vietnam is currently developing about half-a-dozen LNG and power projects with overseas partners to try and keep pace with future energy needs to enable its economic expansion.

The leading LNG import projects include the Quang Ninh LNG-for-power venture owned by a partnership comprising PetroVietnam, Tokyo Gas and Marubeni Corp.

Vietnam is also developing another terminal involving US major ExxonMobil Corp. at the port city of Haiphong.

Another Vietnamese LNG-for-power venture is being developed by Singapore-based company Delta Offshore Energy and partners in Bac Lieu province in the Mekong Delta of south Vietnam.

Other ventures are planned for Ninh Thuan province, south of Cam Ranh Bay, and at Long An, also on the Mekong Delta. 

Excelerate Energy, the experienced US floating liquefied natural gas import project company, has signed an accord with the European Balkans country of Albania to study the potential of LNG imports and backed by ExxonMobil Corp.

Coaxis Energy Company of South Dakota has acquired the liquefied natural gas assets and interests of Kalm Energy, an LNG and compressed natural gas sales and service provider from Nebraska, as the fuel sector expands in North America.

New Fortress Energy Inc, the New York-based company with a growing LNG projects portfolio in Latin America and the Caribbean, has entered into two deals with a combined value of $5 billion, one to acquire Golar LNG Partners and a second to take over Hygo Energy Transition, a Brazil-focused joint venture owned by Stonepeak Infrastructure Partners and shipping company Golar LNG Ltd.

Italian energy company Eni said an exploration well located in Block 114 of the Song Hong Basin offshore Vietnam has confirmed a significant natural gas accumulation, further expanding the potential of the field.