LNG

Golar LNG, the shipping company with a midstream investment strategy, reported increased operating income of $23.9 million for the third quarter because of improved spot vessel earnings, but still posted a net loss for the three months of $5.9M because of interest rate swaps.

Gazprom, the Russian natural gas company and LNG industry player, has had its credit rating raised because it's so close to the government it would be likely to receive “extraordinary state support in case of distress.”

By Philip R. Weems

This article is the first in a three-part series on the evolution of LNG sales contracts. In this issue the author highlights the emergence of take-or-pay and price review clauses

During the more than 40-year history of the LNG industry, customs and practices have developed with regard to documenting long-term LNG sales (“SPAs”).

Ernst Knolle is Chief Executive Officer of Knolle Magnetrans, based in San Francisco, California.
In the face of increased need for more energy and fuel efficiency, it is disturbing to see extreme waste in many oil fields around the world where “stranded” wellhead natural gas is flared or re-injected.

This kind occurs in north Alaska at a rate of more than twice that of China’s total natural gas consumption, according to official US statistics.

By Patti Schom-Moffatt, Director of Consultation and Communications, Kitimat LNG Ltd.
An LNG terminal project proposed for northern British Columbia has taken a major step forward to become North America’s first West Coast facility with an Agreement in Principle between the project company and the region’s Haisla First Nation tribe.

Kitimat LNG Inc., a Canadian energy infrastructure company, is proposing to build, own and operate an LNG receiving terminal located north of Vancouver.

By Philip R. Weems Partner King & Spalding LLP

This article is the second in a three-part series examining the evolution of long-term LNG sales contracts. The first part of the series addressed trends and issues in the 1960s and 1970s. In this issue the author highlights some of the key features of such contracts in the 1980s and 1990s, many driven at least in part by the rise in project financed liquefaction facilities and the increased number of players in the market. The final part of this series will address trends and issues in the 2000s.

Leading members of the Society of Petroleum Engineers believe the US government’s estimates of natural gas usage are far too conservative.

This paper was prepared for presentation at the 2006 Society of Petroleum Engineers Annual Technical Conference held in San Antonio, Texas, U.S.A., from September 24–27, 2006.

Natural gas prices in the US and elsewhere are expected to be kept at reasonable levels for decades to come, thanks to the development of alternative supplies such as liquefied natural gas.

However, regulatory policies, concerned environmental groups, and industrial inaction are expected to create choke points in the supply chain.

Natural gas prices and pipeline issues complicate the game beyond frontier

Catherine Elder, Sacramento, California

North American LNG has produced more speculation in recent weeks than ever about which import terminals will be built and when.
There is also more concern about whether there is enough LNG in the world to satisfy US demand and about safety issues.

Axel Hanenkamp and Nicolaus Böckhoff, MAN B&W Diesel AG, Augsburg

With worldwide increasing power demand, new power generation concepts are emerging in the energy sector.

This change happens not only in power plant applications for land-based power generation, but now also in ship propulsion systems.

With more than 4,000 safe and timely deliveries of more than 200 million tonnes of LNG over the last 25 years, Malaysia’s MISC Berhad has grown from a humble player with a micro fleet of five to become the largest single owner-operator of LNG tankers in the world, with 21 LNG tankers and eight newbuilds expected to be delivered in 2008.

In terms of cubic capacity, MISC has approximately 10 per cent of the market share in the LNG segment.

MISC began its foray into the LNG transportation in 1983 with the delivery for Malaysian national energy group Petronas of its first LNG cargo to Tokyo Gas’s terminal in Sodegaura, Chiba.

From the 1980s up to 2002, MISC’s sole client has been PETRONAS, whose evolution into a major LNG producer and supplier has helped set in motion MISC’s own ventures into energy transportation.