Strike at Ichthys LNG to escalate from Thursday
Workers at Ichthys LNG have threatened to escalate strikes starting Thursday after wage negotiations with Inpex failed, raising the concerns over disruptions to roughly 10% of Australia's LNG exports.
Bulls, bears clash on LNG outlook over Hormuz
Closure of the Strait of Hormuz has done something more than move prices: it has removed any shared sense of where the market is heading. For three years the industry's working assumption was that a wave of new LNG capacity would tip the market into oversupply by the late 2020s – but that assumption has now vanished.
Crude oil, LNG prices set to plunge once Hormuz reopens
Reopening of the Strait of Hormuz will result in a “quick drop in prices,” though Fitch Rating assumes a five-month closure of the critical waterway through July. Oil markets began to balance in the interim thanks to pipelines, but LNG cargoes stay largely trapped.
K Line orders LNG dual fuel carriers
Kawasaki Kisen Kaisha (K Line) has signed shipbuilding contracts with China Merchants Jinling Shipyard for four LNG dual-fuel car carriers with a capacity of 1,380 vehicles each. The vessels will be equipped with dual-fuel engines capable of running on LNG to reduce emissions. The newbuilds are part of K Line’s strategy to expand its environmentally compliant vehicle carrier fleet.
Europe struggles to attract LNG to refill storages
As Asian netbacks for delivered LNG cargoes outbid European prices, buyers are struggling to attract sufficient volumes to offset a looming storage shortfall. An additional 40 cargoes per month would be needed over the next five months, according to ICIS calculations, though economists doubt this is achievable.
Eskom agrees LNG offtake for Richards Bay power project
Eskom has entered an LNG supply agreement with Zululand Energy Terminal (ZET) to underpin its planned 3,000 MW gas-to-power project in Richards Bay, South Africa. The deal will make Eskom a “foundation customer” at the proposed regas terminal, which will offer open-access LNG imports.
US LNG cargoes diverted from China to Japan, Korea
Four LNG cargoes loaded from Sabine Pass LNG and Plaquemines LNG between 5 and 18 May initially signalled arrival in Tianjin, China. All four have since updated their declared destinations and are headed for South Korea and Japan instead.
Qatar-China cargo now headed for Kuwait, Hormuz transit aborted
The Al Sahla, a 211,842 cbm Q-Flex that went dark near the Strait of Hormuz on 25 May, did not complete its transit. It was previously widely reported as heading to China with arrival on 14 June. LNG Journal's vessel tracking data shows the vessel is currently en route to Kuwait’s Al Zour terminal.
ADNOC finalises LNGC order
ADNOC is preparing to sign orders for a new batch of LNG carriers at Chinese shipyards in the coming days, the head of ADNOC Logistic & Services, Abdulkareem Al Masabi said. Four to six 175,000-cubic-meter LNG carriers will be ordered to accelerate the company’s entry into the global gas trading market. The latest move follows an order for six LNGC’s worth more than $1.2 billion from China's Jiangnan Shipyard, with the first vessel delivered in April.
Cheniere seals EPC deal with Bechtel on Sabine Pass expansion
Cheniere Energy has signed a contract with Bechtel, valued at $4.69 billion, for engineering, procurement and construction of the first phase of its Sabine Pass LNG expansion, a project centred on Train 7 with more than 6 mtpa liquefaction capacity.
