In this issue

 

Our North America editor

China National Offshore Oil Corporation (CNOOC) has become that latest global energy company to pull out of Canadian LNG development with the formal cancellation of its Aurora LNG project on Digby Island in British Columbia.

Our North America editor in New York

Mexico and South Korea each received four cargoes and China took delivery of two as a total of 16 shipments were delivered from the Sabine Pass plant in Louisiana at lower average prices compared with 15 loaded in the previous month, according to the latest data released by the Department of Energy.

European nations are forecast to have flat natural gas growth for electricity generation, including in LNG, in the next 10 years as they concentrate on renewable projects such as wind and sun for power before having to return to large-scale gas use by 2030.

The US Eagle Maxville small-scale LNG plant near the Florida port of Jacksonville has been awarded long-term permits to export LNG in ISO containers to the Caribbean market and elsewhere in the region.

Our Asia-Pacific editor

Western Australian, the state hosting three liquefied natural gas export plants and with a fourth, Wheatstone LNG, set to come on stream shortly has been urged to cancel an inquiry into hydraulic fracturing for shale gas as a waste of time and money and a cause of uncertainty that is “strangling” the onshore gas industry.

Australian exploration and production company Sacgasco has seen its shares rise by as much as 80 percent since it issued a report on a gas project in the Sacramento Basin of the US state of California suggesting the well could be coming on stream soon and that the area could support LNG exports. 

Our Europe editor

Gazprom Global LNG, part of the trading arm of the Russian natural gas company, said it signed an initial 12-year gas sales agreement with Ghana National Petroleum Corp., the state-owned energy company in the West African nation.

UK company Ophir says intensive efforts are being made by all partners to reach FID

Our Europe editor

Ophir Energy of the UK, the leader of the Fortuna floating liquefied natural gas project offshore Equatorial Guinea, said intensive efforts were being made by all partners to achieve a final investment decision before the end of the fourth quarter of 2017.

The Atlantic LNG production plant in Trinidad was shut down and evacuated when fire enveloped one of its power generating units sending black smoke and fire into the air at Point Fortin on the southwest of the Caribbean Island.

The US said it expected its dry natural gas production to rise to an average of 73.7 billion cubic feet per day in 2017 even after disruptions caused by the recent hurricane along the Gulf Coast of Texas and Louisiana, a main production area.

Our Europe editor

The American Bureau of Shipping, the US classification society and marine technical services, said it completed a joint development project with Monaco-based LNG fleet owner GasLog focusing on boil-off gas efficiency in operations.

The merged US subsea and energy services company formed by Baker Hughes and GE Oil and Gas has signed its highest-profile contract yet under the BHGE banner for Phase Two development of the Zohr gas field in the east Mediterranean that will boost Egyptian natural gas supplies and reduce LNG needs.

One of the world’s best-known shipping executives, John Fredriksen, is retaining his almost 52 percent stake in Flex LNG, the Oslo-listed company awaiting the delivery of six LNG carriers and planning joint ventures with US export and liquefaction plant developer NextDecade Corp.

Our Asia-Pacific editor

Japanese government figures show that the average delivered price of spot liquefied natural gas that arrived in Japan in August was $5.60 per million British thermal units, just $0.20 per MMBtu higher than the $5.40 per MMbtu price given for August 2016. 

News Nudges

Atlas Copco LNG order

Atlas Copco Gas and Process Division, based in the German city of Cologne, secured a compressor order for the LNG carrier shipbuilding market in Asia. The order was placed by Samsung Heavy Industries of South Korea for a total of four centrifugal gas compressors, four gas screws compressors and with heaters and vaporizers to be used on two Korean-built vessels. “Specifically, the vapor return compressors will provide tank pressure control during loading and the fuel-gas compressors will feed excess boil-off gas to the gas engine during operations,” said Atlas Copco. “This order is a very important step for Atlas Copco in the Asian LNG market,” said Robert Radimeczky, President of the Gas and Process Division.


Anthony Veder LNG conversion

Royal Dutch Shell and Dutch shipping company Anthony Veder have signed a contract to modify the small-scale LNG carrier “Coral Methane” into an LNG bunker vessel. The modification marks the first of its kind and will entail integration of specific LNG bunker equipment into the vessel. The 7,500 cubic metres capacity ship currently operates as on a multipurpose basis.


Pipeline boost for Marcellus

Tennessee Zone 4 Marcellus shale-gas spot prices increased $1.71 from $0.52 per million British thermal unit to $2.23 per MMBtu in the week. “Marcellus prices likely increased this week as a result of a combination of cold weather in the Northeast and the commencement of service of the Access South and Adair Southwest pipelines,” said the Energy Information Administration.