LNG

The US Department of Energy (DoE) has granted Bear Head LNG the authorization to export up to 440 billion cubic feet (Bcf) per year of US natural gas to Canada, and up to 8 million tons per annum (mtpa) of LNG from Canada to free trade agreement (FTA) countries. The approval is vital for achieving certainty of gas supply to the Bear Head project on the Strait of Canso, Nova Scotia.

Australian-owned Magnolia LNG project has been given the Draft Environmental Impact Statement (DEIS) by the US Federal Energy Regulatory Commission (FERC). This marks a critical milestone for the liquefaction project in Lake Charles, Louisiana, as well as for the Kinder Morgan Louisiana Pipeline.

French energy company Total is keen on re-engaging in hydrocarbon production, gas liquefaction and export projects in Iran. "When we had to leave Iran in 2006 we were actively working at an LNG project at South Pars. So, first of all, we are closely looking at LNG projects," CEO Patrick Pouyanne told reporters. A senior Iranian gas official said there have been talks with various parties for the use of FLNG vessels export Iranian gas to Europe before 2020.

July 20 (LNGJ) - US group Anadarko Petroleum has announced it secured 60% of the investment required for an LNG project in Cabo Delgado province in northern Mozambique. Eni and Anadarko have yet to submit a final unitization agreement to the Mozambique government, but Anadarko's 12 mtpa LNG project could still make FID by early Q4.

July 20 (LNGJ) - Honeywell Process Solutions (HPS) will help improve operations for China's long-distance Guangxi LNG high-pressure pipeline. The project will use HPS gas measurement equipment and software to measure the flow and pressure in the pipeline. The pipeline is scheduled for completion later this year, and will have a capacity of 8 Bcm/y of LNG and a total length of more than 1,300 miles, from Maoming to Beihai in the Guangxi region.

The Abbott government in Australia has been promised royalties of $40 billion over 30 years from Chevron, the owner and operator of Gorgon LNG. It hope that other LNG projects coming onstream will help lift this number to exceed $65 billion a year, boosting GDP and help create around 3,500 full-time jobs.

"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.