LNG

Novatek, the Russian natural gas company and operator of the Yamal LNG export plant and developer of the delayed Arctic LNG II venture, has reported positive operating data for the second quarter of 2024 amid continued Western sanctions.

The BP 2024 Energy Outlook said that liquefied natural gas demand would grow robustly in the near term, driven by increasing needs in emerging economies in Asia as well as in the regional economic powerhouse China.

July 10 (LNGJ) - Indian Prime Minister Narendra Modi has ended a visit to Russia and a statement said that both countries were exploring the possibility of expanding cooperation in the natural gas sector and India would continue to import around 3 million tonnes per annum of Russian LNG and the volumes could be increased.

   It was also stated that the Indian state-owned company, Oil and Natural Gas Corp. (ONGC), is maintaining its participation in the Sakhalin 1 oil project in the Russian Far East while the choice of a new operator of the joint venture was now underway after the withdrawal of US major ExxonMobil Corp.

Japanese liquefied natural gas imports increased again in May even at higher prices while thermal coal deliveries dropped and nuclear plant re-starts plans continued to advance.

May 28 (LNGJ) - Two LNG carriers carrying Russian cargoes have entered the North Sea to discharge volumes at West European regasification terminals. The tanker “Nikolay Yevgenov” with 172,600 cubic metres of capacity lifted a cargo on May 23 from the Russian Yamal plant in Northern Siberia.

   The Cypriot-flagged vessel “Fedor Litke” with 177,000 cubic metres capacity was also heading for a regional terminal with a shipment loaded on May 24 at the Yamal facility, according to shipping data. A third carrier, the 172,000 cubic metres capacity “Yakov Gakkel”, was heading back to the Russian LNG export plant at Sabetta after delivering a cargo to the French import terminal in Dunkirk.

April 29 (LNGJ) - Russian natural gas production is expected to increase by 4.6 percent in 2024 to 666.7 billion cubic metres, while pipeline gas exports are forecast to rise by 7 percent to 108 Bcm. Russia’s Non-Commonwealth of Independent States natural gas prices for nations such as China and Turkey are expected to be at the level of around $297.3 per 1,000 cubic metres in 2024.

   The official Russian data said that LNG exports are forecast to grow by 14 percent to 38 million tonnes in 2024, though no provision is included in the data for tougher sanctions against Russian LNG currently being considered by the European Union. “Gas production is expected to continue growing to 695.4 Bcm in 2025 and pipeline gas exports will grow to 120 Bcm in 2025,” the report said.

Russian natural gas company Gazprom said flows to China on the “Power of Siberia” pipeline have resumed after scheduled maintenance, offsetting the need for higher LNG imports during the Northern Hemisphere summer season.

Naturgy Energy, the power company with LNG operations from Puerto Rico to Europe and pipeline gas networks from Algeria to South America, reported a more than 20 percent rise in annual net profits.

The Gas Exporting Countries Forum (GECF), known as the OPEC of LNG and pipeline gas, is preparing for its 7th Summit meeting with members scheduled to start arriving at the end of February in the Algerian capital of Algiers.

The GECF, whose secretariat is based in Doha in Qatar, will attempt to put some context into the geopolitical and economic challenges facing LNG and pipeline natural gas producers.

Although the GECF counts Qatar among its members the other main LNG producers, Australia and the US, have never been members nor will they be sending observers.

The GECF meeting will have 19 countries in attendance who together represent over 70 percent of the world’s proven gas reserves, 43 percent of its marketed production, 52 percent of pipeline gas and 58 percent of LNG exports.

Algeria, which is a key supplier of LNG to Europe from its Skikda and Arzew liquefaction plants and with gas pipelines connected to Italy and Spain, said it would use the occasion to “build a consensus” between the producing states to preserve the interests of gas exporters.

Algiers Declaration

Meetings will start on February 29 and the actual summit will take place on March 2, after which the LNG nations will issue what will be known as the “Algiers Declaration”.

The meeting is expected to support emerging African LNG nations and existing producers in their fight to alleviate energy poverty, in particular through better access to financial resources for gas development as well as improved energy security.

GECF Secretary General, Mohamed Hamel, who is himself an Algerian outlined what is on the agenda for the 12 nations who are members and the other seven countries who will attend as observers.

“This summit presents an opportunity for leaders to engage in comprehensive discussions encompassing geopolitical, economic and policy developments, providing an avenue to delve into both the immediate and long-term prospects and challenges in the natural gas sector,” explained Secretary General Hamel.

“Moreover, the summit will reiterate the important role of our Forum in strengthening cooperation among member countries, advocating for natural gas as a pivotal element in achieving the UN’s sustainable development goals, ensuring stability in natural gas markets and addressing energy security, affordability, and sustainability,” he added.

Prior to the March 2 summit, a high-level working group will meet and an Extraordinary Ministerial Meeting will be held to “prepare essential documents” for the summit, including the Declaration.

The summit will be complemented by a series of side events such as the inauguration of the Headquarters in Algiers of the newly established GECF Gas Research Institute.

Global Gas Outlook

Additionally, the delegates will approve and issue the latest edition of the “Global Gas Outlook”, one of the GECF's flagship publications.

Finally, there will be a signing ceremony for Memoranda of Understanding with the African Energy Commission (AFREC) and the Economic Research Institute for ASEAN and East Asia (ERIA).

Preparations for the summit have been undertaken by the Algerian National Committee in collaboration with the GECF Secretariat and “all of the necessary resources have been mobilised to ensure ideal conditions for a successful and productive” summit.

“I am confident that this summit will go beyond discussions and collaborations, providing delegates the opportunity to immerse themselves in Algeria's distinctive culture and warm hospitality,” Hamel stated.

The 12 GECF members are Algeria, Bolivia, Equatorial Guinea, Egypt, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, United Arab Emirates and Venezuela.

There are also seven observer members: Angola, Azerbaijan, Iraq, Malaysia, Mauritania, Mozambique and Peru.

Jan 22 (LNG) - US and Russian cargoes are scheduled for delivery to European LNG import terminals in the coming week with the Dutch Title Transfer Facility day-ahead spot price on the European Energy Exchange on January 22 decreasing to the equivalent of $8.955 per million British thermal units from $9.109 per MMBtu at the end of last week.

   The “Christophe De Margerie” with 172,600 cubic metres capacity is scheduled to deliver a Russian cargo on January 24 to the Zeebrugge terminal in Belgium, according to shipping data. The cargo was lifted on January 17 from the Yamal plant in northern Siberia. Germany is scheduled to receive a US cargo on January 29 at the import terminal at Brunsbüttel on the Elbe. The cargo will be delivered by the “Elisa Aquila” vessel with 170,500 cubic metres capacity. The volumes were loaded on January 14 at the Cameron plant in Louisiana.