LNG

The US subsidiary of the UK’s National Grid Plc, which has several transmission and utility businesses in the US Northeast, has asked Massachusetts utility regulators to approve an agreement with US company Constellation Energy that would keep the Everett liquefied natural gas import terminal near Boston in operation until at least 2030 and beyond.

National Grid plc, whose assets include an LNG import terminal southeast of London, said that all the conditions relating to the sale of a 60 percent equity interest worth around US$7 billion in its UK gas transmission (NGG) and metering business to an Australian-Canadian consortium had been met.

Oct 10 (LNGJ) – The UK is receiving at least two US LNG cargoes this week, according to shipping data. The 180,000 cubic metres capacity vessel “GasLog Windsor” was berthing on October 10 at the Isle of Grain import terminal, operated by National Grid plc on the Medway River estuary southeast of London. The cargo was lifted on September 26 from Cheniere Energy’s Sabine Pass plant in Louisiana on September 25.

   A second UK delivery is scheduled on October 14 on board the 180,000 cubic metres capacity carrier “Traiano Knutsen” at the UK South Hook import terminal at Milford Haven of QatarEnergy. The cargo was lifted on October 1 from Cheniere’s Corpus Christi plant in Texas.

Uniper, the German utility and European liquefied natural gas capacity holder and cargo trader, said it had arranged increased capacity rights at the Dutch Gate LNG import terminal in Rotterdam.

National Grid LNG LLC, a US subsidiary of the UK company National Grid, has petitioned the US Federal Energy Regulatory Commission to enable it to progress with the Fields Point peak-shaving liquefaction project in Providence, Rhode Island.

Jan 25 (LNGJ) - The Russian-owned LNG carrier “SCF La Perouse” is scheduled to deliver a US LNG cargo on January 25 from the Cameron plant in Louisiana to the UK Isle of Grain import terminal, located on the Medway River southeast of London. The 174,100 cubic metres capacity Liberian-flagged vessel, owned by Sovcomflot, lifted the US cargo from the plant near Lake Charles on January 13, according to shipping data.

   The LNG shipment was headed for the UK as the nation’s benchmark National Balancing Point natural gas price rebounded to the equivalent of $30.35 per million British thermal units on colder weather and supply concerns.

National Grid plc of the UK said annual operating profits from the Isle of Grain LNG import terminal in Kent, the largest in Europe, rose by 5 percent with only 30 percent capacity utilization, while its large investments in US operations were offset by regulatory setbacks.

The largest European LNG import terminal, the UK Isle of Grain facility located southeast of London, has launched the second phase of an on-going open season during which the market is invited to make bids with less than a month before the deadline.

GasLog Ltd., the LNG fleet owner based in the Greek port of Piraeus with a total fleet of 35 vessels split with its US affiliate, has taken delivery of its latest carrier built in South Korea and chartered to UK utility Centrica plc.

The 180,000 cubic metres capacity vessel, named “GasLog Windsor”, was constructed at Samsung Heavy Industries.  It has X-DF propulsion, a combination of gas and diesel. and a Mark III Flex containment system from French technology firm GTT.

“Despite the industrial disruption in South Korea caused by the Covid-19 outbreak, the vessel was delivered on time and on budget,” said GasLog.

Centrica has US volumes from the US Gulf Coast and regasification capacity at the UK Isle of Grain terminal, located southeast of London. The UK utility also has cargoes booked from the Mozambique LNG project.

The company gave an operational update and said they remained focused on securing the health and safety of their employees, while also ensuring safe and reliable operations for their customers and the global natural gas supply chain.

As regards its fleet numbers, 19 carriers are owned by GasLog, 13 on the water and six on order, while one has been sold to a subsidiary of Mitsui & Co. of Japan and leased back to GasLog under a long-term charter.

The remaining 15 LNG carriers are owned by Nasdaq-listed GasLog Partners.

During the past two month or so, GasLog said its operational activity has been 100 percent.

GasLog and GasLog Partners have also accelerate opportunistically their dry-docking schedules during the slowdown of LNG trade in February and March.

“Four dry-dockings will have been completed by mid-April, all of which are expected to be on time and within budget, including the installation of ballast water treatment systems,” said GasLog.

The charter parties for all of the Group’s term-chartered vessels remain in effect with revenues as per the contract terms.

“During the first quarter of 2020, the Group’s tri-fuel diesel electric vessels operating in the spot and short-term market delivered time charter equivalent earnings of around $44,000 per day,” said GasLog.
“Presently, all of the Group’s vessels operating in the spot and short-term market that are not undergoing dry-dockings are on charters through to at least May,” it added.

Gaslog noted that there has been a marked increase in activity in the spot and short-term market in recent weeks, primarily driven by a resumption in industrial activity in China.

“Against a backdrop of unprecedented global uncertainty, I am very proud of the dedication of all our employees, whose health and safety remains our first priority,” said Paul Wogan, Chief Executive.

“I especially thank our seafarers for their commitment and professionalism while apart from their families and friends,” stated Wogan.

The “GasLog Windsor” is immediately delivered into an attractive seven-year charter to Centrica.

“This vessel is the first of seven newbuildings due to be delivered by the third quarter of 2021,” said GasLog.

“On a fully delivered basis, 60 percent of GasLog’s directly owned fleet will be modern X-DF vessels on multi-year term charters,” it added.

Europe’s largest LNG import terminal, the Isle of Grain facility located 45 miles southeast of London on the Medway-Thames estuary in Kent, has received 22 LNG shipments in 2020, including its 500th overall cargo, as the UK’s three terminals have unloaded around 60 shipments in two-and-a-half months.

US cargoes and others from Atlantic Basin exporters as well as Russia have been pointed at the UK as a key destination as prices have tumbled in Asia at just over $3.00 per million British thermal units for most of 2020 amid a global over-supply.

The UK National Balancing Point (NBP) price was last at the equivalent of $2.95 per MMTU, down from $3.70 per MMBtu in January, while the main Continental European price, the Dutch Title Transfer Facility (TTF), has tracked the UK benchmark, but was slightly higher at $3.00 per MMBtu.

“We’re delighted to confirm that we welcomed the 500th ship at our LNG import terminal on the Isle of Grain,” said Simon Culkin, Terminal Manager at National Grid's Grain LNG.

“The ‘LNG Merak’ berthed, delivering a cargo from Zeebrugge, and is the 22nd ship to arrive at Grain this year,” added Culkin.

The 174,000 cubic metres capacity “LNG Merak” is one of the newest vessels transporting cargoes from the Russian Yamal export plant in northern Siberia, as well as trans-shipments from ports such as Zeebrugge in Belgium.

“Since commissioning our terminal in 2005, we have taken delivery of LNG from 13 countries, further strengthening the diversity and security of UK gas supplies,” Culkin stated.

LNG carrier deliveries to Grain LNG have been more than matched by the two terminals at Milford Haven in Wales, South Hook LNG and Dragon LNG, which have welcomed a combined 35 cargoes.

The growing UK’s deliveries since January have come from nations such as the US, Qatar, Nigeria, Trinidad and Russia.

LNG shipments to Britain increased by around 64 percent in 2019 compared with the previous year and 2020 is expected to be  a record year as more US capacity has come on stream.

Natural gas currently makes up 40 percent of the UK’s total energy mix, up from 35 percent in 2015.

About 45 percent of UK natural gas comes from domestic resources in the North Sea and 55 percent is imported, with 15 percent coming from LNG and 40 percent from pipeline imports, mostly from Norway.

“LNG delivers much needed flexibility and energy reliability, enabling the integration of intermittent renewable energy and provides access to affordable energy,” explained National Grid’s Culkin.

“We’re very proud that LNG, supported by our extensive infrastructure at Grain,’ he added.

LNG imports have increased significantly over the past six months all over Europe, including to other large importers such as France and Spain.