In this issue

 

Our North America editor in New York

Baker Hughes GE, the merged US subsea and LNG and energy services company formed by Baker Hughes and GE Oil and Gas, posted a third quarter net loss as revenues slipped while the group comes to terms with its new structure. 

Our Europe editor

Japanese trading house Marubeni Corp is moving ahead with its floating LNG import project linked to an adjacent power plant venture in the Indonesian province of West Java by awarding the $220 million contract for building the floating storage and regasification unit. 

Gas Natural Fenosa, the Spanish utility and LNG market participant, submitted the lowest bid of just over $9 per million British thermal units after six companies took part in a tender for the supply of cargoes to Pakistan LNG for the delayed second floating storage and regasification unit (FSRU) import project for Port Qasim near Karachi. 

India has brought natural gas supply to Bhubaneswar, the capital of India’s eastern state of Odisha, as part of an expansion of the pipeline network and infrastructure, including LNG import and regasification facilities on the Indian East Coast to boost industrial development. 

Our North America editor in New York

The Canadian Woodfibre LNG export project backed by Indonesian billionaire Sukanto Tanoto and his RGE Group and the only liquefaction plant venture with full permit approvals in the Pacific province of British Columbia, said it had postponed the start of construction until 2018 when final schedules would be finalized. 

The Canadian province of British Columbia and Premier John Horgan toured the site of a US$450 million propane export terminal on Ridley Island under construction for natural gas company AltaGas and said LNG projects were still possible in the future as he also visited the site of a cancelled Royal Dutch Shell LNG venture. 

Carrier at plant in the Pilbara region for commissioning of loading system

Our Asia-Pacific editor

Woodside Petroleum, the operator of the North West Shelf and Pluto LNG plants and a shareholder in the recently producing Wheatstone LNG project, delivered 7.4 percent lower total revenues in the third quarter. 

Our Asia-Pacific editor

Australian energy company Santos, a shareholder in three Asia-Pacific LNG plants, said its average realized sales price in the third quarter jumped to US$7.50 million British thermal units from US$5.72 per MMBtu in the year-ago period. 

Origin Energy, the stakeholder in the Australia Pacific LNG plant with ConocoPhillips and China’s Sinopec, said it aimed to help stabilize the country’s domestic natural gas market by developing the Ironbark coal-seam gas project in Queensland and a shale-gas venture in the Northern Territory. 

Japan duly offered the $10 billion flagged by the government beforehand at the LNG Producer-Consumer Conference in Tokyo where the nation pledged to help finance the value chain of LNG projects in developing countries in Asia. 

Spanish net liquefied natural gas imports rose almost 5 percent last month compared with the same month a year ago as more of the fuel was needed for power generation and to offset lower pipeline imports from North Africa. 

Japanese liquefied natural gas imports dropped amid rising oil-linked prices as the nation also opted for fewer purchases of thermal coal shipments and existing fuel stocks were used for lower seasonal power demand. 

Our Europe editor

Italian natural gas infrastructure company Snam, owner of the long-established Panigaglia import facility near the Mediterranean port of Genoa, has bought a stake in the offshore Adriatic regasification terminal on the east coast previously held by French-owned Italian utility Edison. 

Gas Natural Fenosa, the Spanish utility and liquefied natural gas market participant, has sold its gas distribution assets in Italy to Rete Gas and Edison for a combined sum of 1.02 billion euros ($1.2Bln) as part of a restructuring plan. 

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.