In this issue

 

Woodfibre venture in Squamish used as test for Ottawa’s singular energy policy

Our Asia editor

The small-scale Canadian export project backed by Indonesian billionaire Sukanto Tanoto and his Pacific Oil and Gas company has applied for a 40-year export licence to ship cargoes to Asia. 

Our Europe editor

Global commodities trader Trafigura plans to invest in a liquefied natural gas import facility in Teesside in northeast England as it expands its LNG trading and UK gas market presence and forecasts a surge in cargoes from the United States. 

Santos, the Australia stakeholder in three Asia-Pacific LNG export joint ventures, said it raised more than A$1.2 billion (US$950) after completing a share purchase plan as part of its turnaround strategy following the successful completion of an institutional placement in December 2016. 

Our Europe editor

French energy company Total said liquefied natural sales rose by 8 percent in 2016 as new volumes came on stream at the Gladstone coal-seam-gas-to-LNG plant in the eastern Australian state of Queensland and a significant surge in cargoes is expected from stakes in liquefaction plants set to be completed soon in Australia and Russia. 

Gaztransport and Technigaz (GTT), the French maritime storage tank technology company, said it received an order with three options from Samsung Heavy Industries of South Korea to equip a floating storage and regasification unit being built for Norwegian shipping line Hoegh LNG. 

Our Middle East editor

Egyptian Petroleum Minister Tarek El-Molla said the country was paying less than the global price for shipments of liquefied natural gas received in recent months from worldwide suppliers and has been extended better payment terms for future cargoes. 

Nakilat Shipping Qatar Ltd, a subsidiary of Qatar Gas Transport Co., has taken back a fifth ship as part of an agreement with Shell International Trading and Shipping to return management of Nakilat’s LNG fleet to Qatari hands. 

Our Europe editor

Royal Dutch Shell is helping to advance the project to introduce the world’s first liquefied natural-powered dredger to operate in the port of Rotterdam after signing a bunkering agreement. 

Our North America editor in New York

Eagle LNG Partners, the company with plans to develop liquefaction and export facilities on the banks of the St Johns River in Jacksonville, Florida, has formally filed its application with the US Federal Energy Regulatory Commission. 

The Penco-Lirquen LNG import project in the South American nation of Chile, with plans to ship US cargoes from Texas, has had its environmental permits suspended by the Chilean Supreme Court because of a breakdown in communication with indigenous people in the area. 

Israeli East Mediterranean company Delek Group, with plans to supply natural gas to Jordan, Israel, Egypt and the Palestinian Authority has signed an agreement to acquire Canadian company Ithaca Energy for US$525 million. 

Our North America editor in New York

The US Center for Liquefied Natural Gas, the trade association for LNG producers, shippers and terminal operators and developers, said the nation was now currently awash with natural gas and would have no problem meeting domestic needs as well as rising LNG exports. 

Williams Partners, the US pipeline company, said regulators have authorized the Atlantic Sunrise expansion project, an expansion of the existing Transco gas pipeline to connect abundant Marcellus shale-gas supplies with markets in the Mid-Atlantic and Southeast US where LNG export plants are being developed. 

Our Asia-Pacific editor

Japan said the average price of spot liquefied natural gas cargoes contracted in January jumped to its highest level in almost two years to reach $8.40 per million British thermal units, a rise of $1.30 per MMBtu compared with the $7.10 per MMBtu price logged in the same month a year ago. 

News Nudges

CB&I CEO to retire

CB&I, the US energy and LNG engineering company, said Philip K. Asherman would be retiring, aged 66, from his positions as President and Chief Executive from July 1 and would be replaced by Patrick K. Mullen. “CB&I's Supervisory Board is grateful for Phil's service and congratulates him on his nearly 12 years of leadership of what has become one of the premier energy infrastructure companies in the world,” said L. Richard Flury, Non-Executive Chairman of the CB&I Supervisory Board. New CEO Mullen, aged 52, was named Chief Operating Officer in 2016 after previously serving as Executive Vice President and President of CB&I’s Engineering and Construction unit where he was responsible for worldwide operations.


Ever cleaner LNG plan

Woodside Petroleum, the major Australian LNG producer, has signed a seven-year contract with a company called Contract Resources to use its planned facility in Karratha, Western Australia, to process spent catalysts and hazardous waste by-products from LNG production and the oil and gas stream process. The Contract Resources secure storage, processing and purification plant will be the first of its kind in Australia and construction is expected to commence shortly.


UK’s gas network profit

National Grid, the UK utility and owner of the Grain LNG import terminal southeast of London, said its annual operating profit from UK Gas Transmission increased 5 percent to 511 million pounds ($662M). “UK Gas Transmission delivered a solid performance,” the company said.