In this issue

 

Ineos, one of the largest global chemical companies and the importer of the first US shale-gas cargo into the UK, is now broadening its presence in British shale gas exploration to lessen its future reliance on imports. 

Our Asia-Pacific editor

Australian engineering company WorleyParsons, whose past projects have included working on the Singapore LNG import terminal and liquefaction plants in Western Australia such as Wheatstone LNG, has signed a long-term, multi-regional agreement with Chevron for engineering and procurement services. 

AG&P and French company plan to plug scale gaps in LNG value chain

Our Asia-Pacific editor

Atlantic Gulf and Pacific Co., the LNG module maker and fabrication yard operator based in the Philippines, has signed an accord to cooperate with the engineering unit of French industrial gases company Air Liquide to develop small-scale LNG infrastructure and distribution across Asia. 

Our Europe editor

US major ExxonMobil and Italian energy company Eni signed an agreement to enable ExxonMobil to acquire from Eni a 25 percent interest in the Area 4 block of the Rovuma Basin where LNG projects are planned for a cash price of around $2.8 billion.

The Fortuna floating liquefied natural gas project offshore Equatorial Guinea in West Africa remains firmly on schedule for a final investment decision in the next few months. 

Our Asia-Pacific editor

Malaysian energy company Petronas has signed an LNG supply agreement with Japanese utility Hokkaido Electric Power for a period of 10 years that will see shipments delivered to one of Japan’s newest and expanding import terminals. 

Gas Authority of India (GAIL), the state-run natural gas and transmission network operator and LNG importer, has signed a procurement agreement with global commodities trading company Gunvor based on a swap transaction linked to US and spot volumes. 

Australian liquefied natural gas exports and income have surged with the second of three LNG Trains at the Gorgon plant on Barrow Island in Western Australia being ramped up and shipments rising from coal-seam-gas-to-LNG plans in eastern Australia. 

Our Asia-Pacific editor

Japan said the average price of delivered spot liquefied natural gas cargoes in February 2017 jumped to their highest level in two years to reach $8.80 per million British thermal units, $1.90 per MMBtu higher than the $6.90 per MMBtu price logged in the same month a year ago. 

Tokyo Electric Power Co. and Chubu Electric Power, the two largest users and importers of LNG in Japan, are discussing the full integration of their thermal power operations as part of Japanese energy and power deregulation and as the nation this week marks the sixth anniversary of the Fukushima disaster on 11 March 2011 that changed the nation’s energy outlook. 

Our Asia Pacific editor

WorleyParsons, the Australian energy and engineering and construction company noted for working on the Singapore LNG import terminal and liquefaction plants in Western Australia, is the subject of takeover speculation after a Middle East group based in the United Arab Emirates acquired a substantial stake and said it could buy more shares. 

Our North America editor in New York

Exxon Mobil Corp. Chief Executive Darren Woods is expanding the energy major's capacity along the US Gulf Coast through planned investments of $20 billion over a 10-year period to take advantage of the American energy revolution, including the LNG export build-out. 

The Jordan Cove liquefied natural gas export venture and its affiliated 230-mile Pacific Connector transmission pipeline in the northwest state of Oregon are viewed as long-term projects for Calgary-based Veresen Inc., with first LNG cargoes unlikely before 2024. 

Clean Energy Fuels Corp., one of the main LNG fuel distributors in the US, said its sales of gas fuel during 2016 amounted to 329.0 million gallons, a rise of 6.6 percent compared with the previous year. 

News Nudges

Armenia gas fuel lead

Armenia’s position as the world’s largest user of gas-fueled vehicles as a proportion of cars, trucks and buses on the road was highlighted during a visit to the former Soviet state by Alexey Miller, Chairman of Russian natural gas giant Gazprom. Miller noted that Russian gas exports to Armenia amount to 1.9 billion cubic metres per year as the country has no energy resources of its own. “Gazprom expressed its appreciation for a robust use of natural gas in different economic sectors, including transportation. At present, around 80 percent of vehicles in the country run on natural gas,” said Gazprom.


GTT LNG storage order

GTT, the French LNG maritime storage technology company, said it received an order from Hyundai Heavy Industries of South Korea to equip a new LNG carrier with its Mark III Flex containment system. Hyundai's shipyard based in Ulsan will build the 180,000 cubic metres capacity vessel for the Norwegian shipping company Norspan LNG (Knutsen). Delivery is scheduled for 2019. The Knutsen fleet contains 10 large-scale LNG carriers in service and one on order. These LNG carriers are all equipped with GTT containment systems.


Mexico bid round ends

Mexico has awarded 10 out of 15 licences for exploration in shallow water blocks in the Tampico-Misantla, Veracruz, and Southeast basin areas along the country’s Gulf Coast. Twenty companies and 16 joint ventures from 15 countries took part in the bidding. Italian energy company Eni and Russia’s Lukoil were two individual operators awarded offshore acreage.