LNG

Click to Download

Click to Download

Last week, the average LNG price for January delivery into northeast Asia was $14.50 per MMBtu, down 50 cents from the week before, according to a report from S&P Global.

The LNG market spot market saw an upward trend in November.

A long-term timecharter contract (TCP) was signed by Mitsui OSK Lines (MOL) and QatarEnergy for six QC-Max, 271,000 cu m LNGCs.

The six vessels mark the last batch of the 128 LNGCs in QatarEnergy’s huge shipbuilding programme, which includes 104 conventional and 24 QC-Max LNGCs.

They will be built by China’s Hudong-Zhonghua Shipbuilding (Group) and will be delivered between 2028 and 2031.

The LNGCs will be jointly owned by MOL and COSCO Shipping LNG Investment (Shanghai) (CSLNG).

MOL, as one of the world's largest owners of LNGCs, since the mid-1990s, has expanded and strengthened the relationship with QatarEnergy through its global LNG transportation, which has now expanded to 13 vessels earmarked for Qatar’s giant North Field expansion project.

QC-Maxes are fitted with latest technology enabling excellent environmental performance, MOL said.

The TCPs were signed during a ceremony held at QatarEnergy’s headquarters in Doha on 12th December.

HE, Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, and President and CEO of QatarEnergy, said: “This is the last batch of long-term shipowner contracts in our 128-vessel strong historic shipbuilding programme that will cater for QatarEnergy’s future LNG fleet requirements for our LNG expansion projects, as well as the replacement requirements of some of our existing fleet.

“We are proud to have forged very important partnerships and business relations with many companies and joint ventures, including today’s new partnership with MOL and COSCO Shipping,” he said.

In 2022, the MOL/CSLNG joint venture had entered into long-term TCP agreements with QatarEnergy for seven conventional LNGCs.

Last week, QatarEnergy also took delivery of the 174,000 cu m LNGC ‘Hlaitan’ from Hudong-Zhonghua.

‘Hlaitan’ was the third vessel of the Chinese shipbuilder’s developed series and was also the seventh LNGC delivered by the shipbuilding company this year, setting a new annual delivery record.

Classed by both the American Bureau of Shipping (ABS) and the China Classification Society (CCS), she features the latest generation of twin-skeg hull design and is equipped with multiple low-carbon and digital technologies and systems.

This year, Hudong-Zhonghua Shipbuilding has won 36 QatarEnergy orders for LNGCs, which includes 24 QC-Maxes and 12 x 174,000 cu m LNGCs, which puts the yard at the top of the world’s shipbuilders in terms of contract value and total payload capacity, Hudong-Zhonghua claimed.

‘Hlaitan’ was due to enter service on 11th December. Another LNGC is expected to join her by the end of this year. 

Egypt is poised to charter the FSRU ‘Energos Eskimo’ by mid-2025, sources told Bloomberg.

On Friday, US LNG plant developer, Venture Global announced it has reached first production at its second facility, Plaquemines LNG, located at Port Sulphur, Louisiana.

Taiwan’s environment ministry has approved plans for a new LNG receiving terminal at Kaohsiung, despite criticism from local environmental groups.

Oman’s next LNG production project hinges on private investments from the world’s energy companies, the country’s Energy Minister said in a recent interview with Bloomberg.

The country’s economy relies heavily on oil and gas production and increasing exports would boost its finances, which were described as strained.

However, the government is no longer willing to provide state funds, which will result in future projects having to be financially viable from the outset.

Oman’s Ministry of Energy and Minerals is to open discussions with energy companies already involved in the country’s projects, including bp, Shell and TotalEnergies, in the first quarter of next year, Energy Minister, Salim Al-Aufi said.

“If we are unable to get enough gas suppliers participating, then the whole project will be cancelled,” he said, adding “it all depends on being able to secure - without government intervention- the gas feedstock to the fourth train. If we are unable to secure the gas feedstock, then we will call it a day.”

Oman’s public finances have been the weakest in the Gulf region for some time.

Since becoming the head of the country in January, 2020, Sultan Haitham bin Tariq has introduced measures to balance the books that were severely hit during the pandemic, resulting in its credit rating improving during the last few years.

The government holds majority stakes in Oman’s three LNG production facilities, together with minority investors, which include international energy companies and large gas buyers.

However, only companies that can commit to providing gas supplies to the planned fourth LNG train would be eligible to take a stake in the project.

Oman is currently conducting a study for the 3.8 mill tonnes per annum train, which could be located near the existing Qalhat facilities.

If it becomes operational, the country’s LNG production would rise to 15.2 mill tonnes per annum.

Oman is the second largest Middle East LNG exporter behind Qatar. 

The National Gas Company of Trinidad and Tobago (NGC) has shipped its first LNG cargoes from Atlantic Trains 2 and 3 since the commercial restructure of the company in December, 2023.