US LNG and gas prices
US LNG decreased by one shipment on the week ending September 21 to five cargoes, four from the Sabine Pass plant in Louisiana and one from Cove Point in Maryland. Three more carriers were lifting cargoes, two at Sabine and one at Cove Point. “Cove Point LNG facility received an LNG vessel on September 16, two days after the landfall of Hurricane Florence in North Carolina,” noted the weekly report from the Energy information Administration (EIA).
Driftwood LNG on track for start-up in 2023
Tellurian, developer of the proposed 27 mtpa Driftwood LNG export plant and three affiliated pipelines, has received a draft environmental impact statement from US regulators allowing it to stay on track for a start-up in 2023.
Freeport LNG gets short-term DoE export permit
The US Department of Energy (DoE) has issued a short-term order to Freeport LNG, under development at Quintana Island in Texas, to export up to 2.14 billion cubic feet per day (bcf/d) of natural gas as LNG over a two-year period to both free-trade and non-free trade agreement countries.
“This order authorizes Freeport’s initial commissioning volumes and other exports pursuant to short-term contracts. During this two-year authorization period, Freeport will be able to export LNG to any country not prohibited by US law or policy,” the DoE said, adding: “The two-year export term will become effective on the date of the commencement of the Freeport facility’s first export of LNG, currently projected to be in the third quarter of 2019.”
Start of commissioning of Freeport Train-1 received FERC approval in August. Freeport LNG is currently building three liquefaction Trains and has entered the permit process with the FERC to build a fourth Train.
The first three Trains will be brought on stream in 2019 and will have a combined 15.3 million tonnes per annum (mtpa) of output. About 13.4 mtpa of that capacity has been contracted under use-or-pay liquefaction tolling agreements with BP, Uniper as well as JERA and Osaka Gas.
Day rates to remain firm
Daily LNGC charter rates hit a high this month and are likely to remain firm next year.
Vitol inks 15-year deal with Cheniere
Geneva-based trading house Vitol has signed a 15-year LNG sale and purchase (SPA) agreement with US-based energy company Cheniere.
Woodside signs second European gas agreement
Woodside Energy Trading Singapore has signed a Heads of Agreement (HOA) with Uniper Global Commodities to supply up to 0.6 mill tonnes of LNG per annum for four years starting next year.
Canadian project edges closer
The Kwispaa LNG project achieved another milestone in its development last week when a contract was signed with Hyundai Heavy Industries for the front end engineering and design (FEED) of two patented At-Shore LNG hulls.
This follows the recent Invitation to tender to be shortlisted for EPC (engineering, procurement, and construction) contractors for FEED on the topsides, marine facilities, pre-treatment, and onshore plant facilities.
The EPC contractor tenderers included: Black & Veatch, Samsung Heavy Industries, PCL Industrial Management, CB&I, Offshore Oil Engineering (COOEC) and TechnipFMC.
FEED work is expected to commence in early 2019.
On 19th September, at the Gastech Conference in Barcelona, representatives from Steelhead LNG, Huu-ay-aht First Nations, and Hyundai Heavy Industries’ Shipbuilding Division formalised the contract for the design of the hulls, as part of phase one of the Kwispaa LNG project.
Each hull is expected to measure 340 m in length and 60 m beam and will feature five individual tanks to provide about 280,000 cu m of LNG storage.
“This agreement with Hyundai Heavy Industries for two At-Shore LNG hulls again demonstrates the technological innovation and creative solutions that we are developing as part of the Kwispaa LNG project to offer Asia/Pacific buyers with cleaner and competitively priced LNG from Canada,” said Steelhead LNG CEO, Nigel Kuzemko. “Our goal is to help meet the world’s rising demand for LNG and reduce worldwide greenhouse gas emissions. At the same time, with our co-management partners, Huu-ay-aht First Nations, we are committed to working with all levels of government to realise the tremendous potential benefits the Kwispaa LNG project can provide to local communities, British Columbia, and Canada.”
The award of the FEED contract was said to be the start of the process leading to construction of the two hulls at a total cost of $500 mill.
Teekay LNG declares distributions and welcomes new board members
Teekay GP, the general partner of Teekay LNG Partners, has declared cash distributions of $0.5625 per unit on the Partnership’s Series A preferred units and $0.5313 per unit on the Partnership’s Series B preferred units for the period 1st July, 2018 to 30th September, 2018.
FERC recommends further action on Driftwood
The US Federal Energy Regulatory Commission (FERC) has prepared a draft environmental impact statement (EIS) on the Driftwood LNG project.
Gazprom and Mitsui sign Baltic LNG MOU
Gazprom and Mitsui and Co have signed a memorandum of understanding (MOU) on the Baltic LNG project.
This agreement includes the building an LNG plant in the Baltic.
The MOU was signed during a meeting between Gazpom CEO, Alexei Miller and Mitsui Chairman, Masami Iijima, during the Eastern Economic Forum held in Vladivostok.
The 10 mill tonnes per year LNG project at Ust-Luga is being led by Gazprom and Shell and is planned for a 2023 launch. The companies have a heads of agreement (HOA) in place for a joint venture, as well as agreements on feasibility studies for the project and on the use Russian technical standards in its implementation.
The consortium plans to expand the nameplate capacity of 9.6 mill tonnes per year by adding a third 5.4 mill tonnes per year train in 2023-202, along with co-operation on small and mid-scale LNG projects.
