In this issue

 

Investor group on move again after 2016 suspension of Kitimat venture

LNG Journal editor

LNG Canada, the largest export project proposed for the Pacific Coast province of British Columbia, could hold a ground-breaking ceremony before the end of 2018 as the joint venture led by Royal Dutch Shell gets back on track and seeks to advance by putting jobs and investment over the political showboating of others. 

LNG Journal editor

Santos, the Australian stakeholder in three Asia-Pacific LNG export ventures, has received a binding bid from Harbour Energy, a subsidiary of US equity firm EIG Global Energy Partners, confirming an original offer of $US10.4 billion ($A13.8Bln) with a number of changes relating to large Chinese shareholders. 

The US Coast Guard has completed its review with a positive report for regulators after conducting a waterway suitability assessment for the Canadian-led Jordan Cove LNG export plant proposed for Coos Bay in the northwest state of Oregon. 

LNG Journal editor

French energy major Total has signed an accord with the Government of Oman to develop an LNG fuel supplies hub for the maritime industry with bunkering infrastructure and a small-scale production plant at Sohar Port. 

Japanese spot cargoes contracted in April to arrive in Japan at a later date cost an average of $9.10 per MMBtu compared with $5.70 per MMBtu in April 2017, a rise of 59 percent and along with oil-linked, long-term contract deliveries will be adding to the nation’s energy import costs as oil prices rebound. 

Bangladesh, the world’s newest liquefied natural gas importer with a floating regasification and storage unit provided by Excelerate Energy of the US at Moheshkhali Island on the Bay of Bengal, has signed an LNG supply agreement with the Sultanate of Oman. 

LNG Journal editor

Malaysian International Shipping Corp., whose liquefied natural gas fleet comprises 30 vessels among its 120 ships, posted lower first-quarter revenue and profits, though the outlook for the LNG sector was viewed by the company as positive. 

The South Korean government will place the first order for vessels powered by liquefied natural gas by August to support a more environmentally-friendly shipping sector and to develop associated industries as well as more LNG bunkering facilities in its ports. 

LNG Journal editor

Abu Dhabi National Oil Company (Adnoc), the leading energy group in the United Arab Emirates and a long-standing LNG exporter, plans to expand by investing $45 billion with partners in various downstream projects in the next five years as it also boosts natural gas production. 

LNG Journal editor

Doris Engineering, the French energy contracts company with global operations, said it completed a study for Western Gas, an Australian operator based in Perth and developing the Equus natural gas field offshore Western Australia. 

PetroChina plans to expand the Tangshan LNG import terminal that supplies the capital Beijing to become the largest of the nation’s network of 18 terminals, while the company will also start building work soon on its fourth regasfication facility. 

Marathon Oil Corp. and its partners said they signed an agreement with the Government of Equatorial Guinea and third parties to establish the framework for processing natural gas volumes at the onshore liquefaction plant at Punta Europa on Bioko Island. 

LNG Journal editor

The head of Chevron Corp. in Australia has called for the sharing of LNG infrastructure among the major operators of four world-class liquefaction plants in Western Australia to improve energy economics and profitability. 

Australian energy executives have said at a conference in Adelaide that it would be more economic to ship natural gas as LNG from the West Coast to the East Coast rather than build a trans-Australia pipeline. 

News Nudges

Bahrain LNG contract

Smit Lamnalco, the Dutch tug and towage company. said it was selected by the National Oil and Gas Authority of Bahrain to provide marine services to the planned Bahrain LNG Floating Storage Unit. The company said its contract was for 20 years. Smit Lamnalco will deploy four LNG terminal-compliant tugs to provide escort, berthing and un-berthing of LNG carriers at the Bahrain import terminal to be located offshore about five kilometres east of Khalifa Bin Salman port.


Egyptian gas ramp-up

Italian energy company Eni said it started the third production unit of the Zohr natural gas production project in the East Mediterranean offshore Egypt that is leading to a halt in Egyptian LNG imports and a future restart of exports. Eni and its joint venture partner, Egyptian Natural Gas Holding Company, said the third unit takes installed capacity to 1.2 billion cubic feet per day just one week after the second unit’s successful power-up.


Malaysia FLNG plan

Murphy Oil, the US energy company based in Arkansas and with US and international operations, said in its first-quarter earnings that its floating LNG joint venture offshore Malaysia was still on track for first production in 2020. Murphy is investing in the FLNG venture with Malaysian state energy company Petronas, which successfully started up the world’s first production hull, the “PFLNG Satu”. That vessel is deployed over the stranded Kanowit gas field offshore Sarawak.