U.S. shale industry may "finally turn a profit"
Financing models of the U.S. shale oil & gas industry has for long been characterised by negative free cash flow as expectations of rising production and cost improvements led to continuous overspending in the sector. Over the last few month, however, IEA analysts have notice a “notable improvement in financial condition,” though the overall health of the industry remains fragile.
Rostec launches LNG power plants
July 30 (LNGJ) – Russia’s state-owned holding Rostec has developed a mobile power plant on the basis of gas reciprocating units of Russian make. Running on LNG, the power plant can provide up to 1.4 MW of electricity and is employed to power remote settlement and oil upstream operations.
China imports more than one sixth of U.S. LNG output
China’s shift to cleaner-burning fuels in the power sector has increased the country’s gas demand and turned it into one of the world’s largest importer of American shale gas. US LNG exports in 2017 averaged 1.9 billion cubic feet per day and of that amount, 15% went to China, making it the third-largest importer of U.S. LNG behind Mexico and South Korea.
Oil, gas, and coal industries are seen as “increasingly speculative”
Lacklustre rewards and regulatory risk is weighing down the oil, gas and coal sector, hence the Institute for Energy Economics and Financial Analysis (IEEFA) sees a growing rationale for divesting from the fossil fuel industry. “Future returns from the fossil fuel sector will not replicate past performance,” IEEF analysts warned.
Singapore ship LNG to Indonesian off-grid power plants
A tender for the procurement of LNG for 500 MW decentralized gas power capacity in Indonesia will be launched, Singapore's maritime minister announced. The cargoes will be shipped to small-scale, decentralized power plants (25-50 MW) in seven locations the Indonesian archipelago, situated at a short nautical distance from Singapore's LNG port.
Glut in LNG to push European gas prices through coal floor
Excess growth in global LNG supply, notably through the ramp-up of US LNG through 2018 and into 2019, will make European gas prices “move through the coal floor [price]”. Fuel-switching in the Western European power market, according to Societe Generale, will ultimately be determined by short-term gas prices hinging at the variable cost of shipping a US LNG cargo to Europe.
Wärtsilä’s LNG-to-Power concept helps prop up ‘wind chasers’
LNG-to-energy solutions, notably for distributed power, have made Wärtsilä one of the biggest supplier of gas- and liquid fuel-fired power stations in the 5 - 600 MW range. Such baseload and/or grid stability plants are used predominately as ‘wind chasers’ and ‘sunset balancers’, compensating for intermittent supply of renewable energy – soon also on the island of Aruba.
Bangladesh's LNG demand to rise to 8 mtpa by early 2020s
PetroBangla signed its first LNG import deal (2.5 mtpa, 15 years) with Qatar's RasGas in July, but this deal “is a far cry from its LNG ambitions,” according to Wood Mackenzie.
Sharjah fast-tracks FID on floating LNG import terminal to curb power shortages
Sharjah National Oil Co. (SNOC) seeks to fast-track its financial investment decision (FID) on deploying a floating gas storage and regasification unit (FSRU) in the emirate to end power shortages at times of peak summer demand. Financial close is envisaged before the end of 2017, with aim to start importing LNG by early 2019.
Germany's first LNG-fuelled research ship to run on Wärtsilä engines
Finish technology group Wärtsilä will supply engines and its LNGPac fuel gas handling system for a new research vessel, under construction at Fassmer shipyard in Germany. All equipment is due delivered to the yard in mid-2018, for the vessel to enter service in early 2020.
