In this issue

 

ExxonMobil confirms high-quality reservoir at new well located in Western Province

Our Asia-Pacific editor

ExxonMobil, operator of the Papua New Guinea LNG export plant, confirmed a high-quality discovery in an onshore well, located in the Western Province of the Oceania nation, adding to a rapidly growing inventory of low-cost natural gas to produce more LNG volumes. 

Our Europe editor

Gassco, the Norwegian natural gas pipeline operator and one of the main competitors to LNG, boosted supplies by 8 percent last year, sending a record 117.4 billion cubic metres of gas through the pipeline system from the Norwegian Continental Shelf to mainland Europe and the UK. 

Norway has awarded a record number of 75 licences for natural gas and oil exploration in the North Sea, the Norwegian Sea and the Barents Sea with Norwegian company Statoil having the highest number of awards and one of the other biggest gainers being Germany’s Deutsche Erdoel AG (DEA) and Wintershall who will merge soon into a single company. 

Our North America editor in New York

The trading subsidiary of Russian natural gas company Gazprom said it had renegotiated the terms and pricing for its liquefied natural gas supply agreement signed more than five years ago with Gas Authority of India. 

Sri Lanka is drawing up a schedule for an LNG import project at the port of Kerawalapitiya on the west coast of the island nation comprising a floating storage and regasification unit (FSRU) and associated infrastructure. 

Japanese government figures show that average spot liquefied natural gas cargo prices for Northeast Asia in December rose by $2.20 per million British thermal units to $10.20 per MMBtu compared with the same month a year ago. 

Our Asia-Pacific editor

The Chinese Hudong-Zhonghua shipyard in Shanghai has held a naming ceremony for the second of four LNG vessels scheduled to ship volumes from the Royal Dutch Shell-owned Queensland Curtis coal-seam-gas-to-LNG plant in eastern Australia to terminals in China. 

The Baltic Exchange in London, one of UK’s oldest financial institutions and now part of the Singapore Exchange (SGX) group, has formed a panel to help develop a new liquefied natural gas index comprising several routes for the evolving LNG shipping market. 

Our Middle East editor

Abu Dhabi, a long-standing LNG producer and exporter, has awarded the two front-end engineering and design contracts for its planned offshore sour gas mega-project, consisting of the Hail, Ghasha and Dalma fields. 

Our North America editor in New York

Tellurian Inc., the developer of the Driftwood LNG export project in Louisiana, has hired US investment bank Goldman Sachs and the US unit of French bank Societe Generale as financial advisors to help organize future funding requirements. 

Dominion Energy, owner of the US Cove Point LNG export plant in Maryland, told South Carolina state senators that the state could either accept Dominion's proposed $14.6 billion takeover offer to buy the local Scana Corp., or they could watch the troubled public utility potentially fall into bankruptcy. 

US LNG export data showed China and South Korea each received six shipments from the Sabine Pass export plant in Louisiana as the Chinese surged up the top 10 of American cargo recipients with 29 delivered overall, according to the latest monthly data from the Department of Energy. 

Our Asia-Pacific editor

Woodside Petroleum, the leading Australian LNG plant operator, posted a decline in revenue even as its stake in the Chevron-led Wheatstone LNG plant came to fruition and results from its owns two operated plants in Western Australia were mixed in terms of volumes and sales. 

China National Petroleum has Area 4 stake and seeks Area 1 offtake

Our Europe editor

China will have a strong hand in future production from the Mozambique LNG projects in southeast Africa, with a stake in one licence held by Italian energy company Eni and likely volume purchases from the onshore liquefaction plant development planned by the holder of the second block licence, Anadarko Petroleum of the US. 

News Nudges

BHP Billiton natural gas

BHP Billiton, the Australian commodities and energy company, said it was contributing US$314 million to maintain LNG plant throughput at the North West Shelf project, operated by Woodside, at Karratha in Western Australia as part of a life-extension project. BHP said its second-half natural gas production was down 6 percent at 325 billion cubic feet because of hurricane shutdowns in the US. The Australian company noted that its average second-half LNG price was up 18 percent at US$7.75 per million British thermal units versus $6.58 per MMBtu in the second half of 2016.


Novatek issues gas report

Novatek, operator of the Yamal LNG plant in Arctic Russia that came on stream in the fourth-quarter of 2017, said its annual production of natural gas rose 0.5 percent to just over 65 billion cubic metres. Novatek, whose stakeholders include French energy company Total, said all of its hydrocarbon production amounted to 513.3 million barrels of oil equivalent. Novatek processed 6.96 million tonnes of stable gas condensate at the Ust-Luga Complex, located 110 kilometres west of St. Petersburg, representing a 0.9 percent increase in daily average volumes processed at the facility in 2017.


US LNG shipments

Five LNG carriers with carrying capacity of 17.2 billion cubic feet combined departed the Cheniere Energy-owned Sabine Pass export plant in Louisiana in the week through January 17 and one other tanker with 3.8 Bcf of capacity was loading at the terminal.