LNG

Mozambique has been promised $6 billion in concessional financing, so-called soft loans from the World Bank for public investment projects – plus $4 billion of funding for the private sector, potentially supporting energy infrastructure projects like the Coral Norte FLNG.

Germany's state financing body KfW has agreed a $200 million loan with Indonesia on the grounds of adjustments to fuel and electricity tariffs, e.g. higher tariff-cost-coverage, feed-in tariffs and standards for demand-side response, board member Dr Norbert Kloppenburg said. In parallel, the Asian Development Bank (ADB) and the World Bank are granting loans of $500 million each in a first tranche, while the French counterpart AfD plans a contribution of $150 million.

The World Bank said progress has been made in the past year in reducing gas flaring in the oil and gas business and points to benefits from associated gas being used for LNG production with a worldwide reduction in flaring of 5 billion cubic metres to 139 Bcm, the lowest level since 2010.

The World Bank said the six members of the Gulf Cooperation Council, including LNG exporters Qatar, Oman and the United Arab Emirates are bouncing back to positive growth from the double blow of Covid-19 and the energy slump, showing the economic resilience of oil and gas.

JERA Co. Inc., the  biggest Japanese utility and liquefied natural gas procurement company, said it acquired 22 percent of the outstanding shares in Summit Power International, a generating group operating in Bangladesh and owner of the Asian nation’s second floating LNG import terminal.

Bangladesh is set to start-up its second liquefied natural gas import facility with the deployment offshore the port of Cox’s Bazar of the floating storage and regasification vessel “Summit LNG”.

The second FSRU for the Asian nation is part of a project involving Singapore-based Summit Power International and Excelerate Energy of the US, owner and operator of the FSRU and also the provider of Bangladesh's first floating import facility.

The “Summit LNG” vessel is capable of regasifying 500 million cubic feet a day and has been charted from Excelerate for a period of 15 years.

The ship loaded its commissioning cargo at Ras Laffan in Qatar before heading for Bangladesh.

The Summit Group said the FSRU can handle around 3.75 million tonnes per annum of LNG and doubles the country’s import capacity after a first FSRU, the “Excellence”, was commissioned at Moheshkhali Island in August 2018 as the first Bangladesh import facility.

The Moheshkhali Island venture was co-developed by national energy company PetroBangla, the International Finance Corporation, part of World Bank Group, and Excelerate provided the FSRU.

The latest FSRU is a 138,000 cubic metres capacity vessel that was refitted at dry dock by the Nakilat-Keppel Offshore & Marine shipyard in Ras Laffan in Qatar for the Summit Group, whose Chairman is Muhammed Aziz Khan.

Summit operates 20 power plants in Bangladesh with an installed capacity of 1,941 megawatts comprising 20 percent of Bangladesh's total capacity in the private sector.

The power company is also developing the 583 MW gas-fired plant in the Bangladesh town of Meghnaghat, located about 20km south of the capital Dhaka and which will be the nation’s largest when it comes on line in March 2022.

“Summit is working towards achieving power and energy sufficiency in Bangladesh under the bold leadership of the government,” said Khan.

“We are pioneering the adaptation of cutting-edge technology for most economical, efficient and sustainable energy solutions to enable graduation to a developed country,” added the Summit Chairman.

Mitsubishi Corp. of Japan acquired a 25 percent stake in the Summit Group in August 2018 and is represented in the board.

General Electric of the US and Summit have also signed an accord opening the way for GE to potentially provide $50 million to Summit to be used for the development of power projects in Bangladesh.

US natural gas supply flows to meet the winter season peak demand in New England has been helped by the Northeast Gateway deepwater LNG import facility using floating storage and regasification units in Massachusetts Bay offshore Boston.

The Northeast Gateway is owned and operated by Excelerate Energy, the US specialist in floating LNG import projects.

In addition to the New England facility, Excelerate has established more than a dozen LNG import facilities in nations in South America, the Middle East and Asia.

Excelerate said its Northeast Gateway reached a peak send-out flow rate of more than 800,000 million cubic metres per day of LNG on February 1, 2019, during the recent freezing weather in the region.

The company said this was a first for the terminal and was completed by two of Excelerate’s FSRUs, the “Exemplar” and the “Express”, discharging in parallel through the company’s proprietary offshore buoys.

Excelerate explained that during the coldest days of the year, demand for natural gas from residential customers rises in New England.

Historically, during these times, as natural gas deliverability becomes constrained in natural gas pipelines, power generators have to burn fuels such as oil.

“This year, LNG imports from the Northeast Gateway facility have complimented the system by suppling energy during this peak demand, allowing generators to continue burning natural gas,” stated Excelerate.

At a flow rate of 800,000 million British thermal units per day, this represents approximately the average gas demand of power generators in the region during the recent January-February winter cold periods.

“Excelerate’s Northeast Gateway has helped New England prepare for the winter months by supplying natural gas to meet the increased energy demand of the region,” said Excelerate’s Managing Director Steven Kobos.

“Deliveries of LNG directly into the Algonquin pipeline system helps to bring much-needed market stability and fuel security to the Northeast,” added Kobos.

The Northeast Gateway was first set up and commissioned more than 10 year ago about 20 kilometres offshore Boston.

The terminal consists of a dual submerged turret-loading buoy system which allows for the connection of the FSRUs that have been specifically designed to meet the conditions of the North Atlantic.

FSRUs act, in all aspects, like a land-based terminal and have the onboard capability to vaporize LNG and deliver natural gas directly into the existing subsea HubLine pipeline operated by Enbridge Inc.’s Algonquin Gas Transmission.

Excelerate has established more than a dozen LNG import facilities for FSRUs around the world and the most recent was in the Asian nation of Bangladesh in 2018.

The Moheshkhali Island venture was co-developed by Excelerate, national energy company PetroBangla and the International Finance Corporation, part of World Bank Group.

The deployment of Excelerate's vessel, the “Excellence”, enabled Bangladesh to have the means to import around 3.5 million tonnes per annum of LNG.

Egypt is being obliged to pay over US$2 billion plus interest and legal costs after losing an international tribunal dispute to Union Fenosa Gas for the unilateral interruption of gas supply to UFG’s liquefaction plant in Damietta, near the Mediterranean port of Alexandria.

Bangladesh is now a liquefied natural gas importer after a floating storage and regasification unit (FSRU) provided by Excelerate Energy of the US arrived at the Asian nation’s Moheshkhali Island on the Bay of Bengal and unloaded a commissioning cargo supplied by Qatar.

Bangladesh has signed its first initial LNG supply agreement with Qatar after recent progress on establishing the Asian nation’s first import facility at an island in the Bay of Bengal.