LNG

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.

Russia's state-owned Rosneft is edging closer to taking control in the $4 billion Pechora LNG project in the Arctic Circle, which is currently owned by the Moscow-based investment firm Alltech Group.

In a bid to reduce dependence on Russian gas, parliamentarians in Berlin are backing €2 billion in untied loan guarantees to help E.ON secure LNG from Canada's Goldboro venture and other long-term deals from projects in emerging markets.

Aug 27 (LNGJ) - Oman LNG aims to increase prices in long-term LNG export contracts signed with Japan. Though cargoes headed for Korea are already priced at over $18/MMBtum, the price for Omani LNG delivery to Japan in June was just $10/MMBtu - against an average of around $16.20/MMBtu.

Aug 27 (LNGJ) - Sabine Pass LNG has filed a report with FERC saying the first engineering stage of the liquefaction trains 1 and 2 at its export terminal in Cameron Parish, Louisiana, is 99.4% complete.
Procurement is 99.5% complete, and subcontract and direct hire construction work are 46.6% and 35.6% complete, respectively.