In this issue

 

Our Middle-East editor

The Sultanate of Oman on the Arabian Peninsula has seen petroleum and liquids production reach their highest ever levels at more than 1 million barrels per day and will soon receive a boost to its LNG export and domestic natural gas markets when a new gas field comes on stream at the end of 2017. 

Tornio regasification facility will help supply customers in North of Finland and Sweden

Our Europe editor

Finnish power project company Wartsila, which also makes propulsion and gas equipment for ships, said it achieved mechanical completion of the Tornio Manga onshore LNG terminal, giving Finland its second import and regasification facility.

Our Europe editor

Statoil and partners, including two US majors, have found non-commercial natural gas volumes in the Korpfjell well in the Barents Sea about 420 kilometres offshore its LNG export plant at Hammerfest, the first exploration well drilled in the Norwegian section of a formerly disputed area between Norway and Russia.

The two Golar LNG shipping companies see intense competition for fixtures in the charter market while there is growing interest in the import sector for floating storage and regasification units (FSRUs) for small-scale and medium-scale projects.

Our Asia editor

Chinese energy major Sinopec, whose LNG assets include a stake in the Australia-Pacific LNG plant in the state of Queensland, said first-half profit attributable to shareholders was 27.09 billion yuan ($4.1Bln) compared with 19.25Bln yuan last year, an increase of just over 40 percent

Skangas, the Nordic LNG supplier and facility operator, and ESL Shipping have entered into an agreement providing gas fuel to ESL’s LNG-powered bulk carrier newbuilds, expected to start operating during the first half of 2018.

Malaysian energy company Petronas said its liquefied natural gas unit had signed a 15-year sale and purchase agreement with South Korean refiner S-Oil Corp to supply LNG to be used as fuel for S-Oil’s new plant operations and as feedstock for hydrogen production.

Our Europe editor

The Norwegian Coastal Administration said it expected Cryo Shipping's LNG seaborne transport services in Northern Norway to have great value and awarded the company 1 million euros ($1.2M) in grants to establish a short-sea trading lane.

Keppel Offshore and Marine of Singapore said its US subsidiary based in the Texas port of Brownsville won a contract worth more than US$400 million from Honolulu-based Pasha Hawaii for the construction of two liquefied natural gas-fueled containerships.

Our Americas editor

Argentina's national energy company, Yacimientos Petroleiferos Fiscales (YPF), said its Chief Executive Ricardo Darre had resigned for personal reasons and has been replaced by a six-man executive committee as it embarks on the development of its huge shale-gas reserves to replace LNG imports.

Our Middle East editor

KBR, the US engineering and construction company, is continuing with its success in winning more oil and gas and LNG contracts by being nominated for work on a key sour gas project in Abu Dhabi in the United Arab Emirates.

Australian exploration and production company Far Ltd., which is in dispute with LNG producer Woodside Petroleum over a licence stake offshore Senegal, said it received confirmation of increases in equity for other West African licences it has shares in offshore Guinea-Bissau.

Sovcomflot, the Russian shipping company specializing in energy transportation and with a growing LNG fleet, including the delivery of the world’s first ice-breaking LNG carrier, posted higher gross first-half freight and charter revenue and lower net profit in challenging conditions.

Our North America editor in New York

LNG importer Mexico is now offering limited transparency in natural gas pricing showing that its domestic gas was at $4.10 per million British thermal units compared with $2.92 per MMBtu in the US and around $5.70 per MMBtu in Europe.

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.