LNG

"To protect its commercial interests," India's state-owned gas transportation utility GAIL has sold 1 mtpa from its US LNG offtake volumes from the Dominion Cove Point project, on top of the 1 mtpa it sold to Royal Dutch Shell. Low domestic gas demand in India is limiting the need for LNG supplies.

Aug 29 (LNGJ) - Excess LNG supply from Trinidad and Tobago (T&T) has been put up for tender as 'spot cargo' by the liquefaction terminal's Atlantic partners BP, BG, Shell and NGC.

Over the past two years, T&T spot cargoes used to be snapped up by neighbouring Argentina, Brazil and Chile - often prior to the start of any transparent tender proceedings.

With the scheduled restart of two Korean reactors before year-end, the world's largest single LNG buyer Kogas continues to defer contracted deliveries of LNG cargoes. Up to 40 cargoes are understood to have been shelved in recent month.

Aug 29 (LNGJ) - Anchorage's Interior Energy Project North Slope-based LNG production and transportation system is being developed to guarantee accessibility to lower-cost energy for river and coastal rural Alaska.

The funding package of state-wide import project comprises of 24% grants and tax credits and 76% debts, including loans and bonds.

Aug 29 (LNGJ) - Investment in Australia's oil and gas sector peaked in Q4'2013 and is now "firmly on the wane" as persistently high labour costs reduce the number of new projects, according to Energy Quest.

An array of new liquefaction projects are nearing completion, with four terminals set to start production in the next 12 months, the consultancy noted in its latest quarterly report.

Qatar National Bank anticipates the Emirate's liquefaction capacity "will continue plateauing in the medium term" due to rising domestic demand. Global markets have little room for more Qatari LNG volumes beyond the current 77 mtpa, as cargoes have to compete against an upswing in Australian exports and new ventures in North America and east Africa.

Aug 29 (LNGJ) - Wärtsilä has signed a technical management agreement with Harvey Gulf International Marine LLC (Harvey Gulf).

This five-year accord covers condition-based and dynamic maintenance for eight offshore multi-purpose support vessels, six LNG-fuelled platform supply vessels and two offshore construction vessels.

Viability of BG Group's planned LNG export project in Tanzania is boosted by higher-than-anticipated flow rates at a test well at its Mzia discovery, which reduce reservoir risk.

Aug 28 (LNGJ)- South Africa's PetroSA has opted to shelve a floating LNG import terminal in Mossel Bay, Southern Cape, after feasibility study compiled by Worley Parsons found the location is technically and commercially challenging.

PetroSA has been evaluating the possibility of importing LNG to supplement depleting gas reserves in Mossel Bay since 2008.

Continuing weak demand and excess tonnage are set to depress LNG shipping earnings in the near term, Drewry analysts forecast. Yet there's a silver lining further out, as rates will rebound over anticipated vessel shortages once an array of proposed liquefaction projects start operation.