In this issue


Our Europe editor

China’s Honghua Group has awarded a front-end engineering and design contract to the UK Wood Group for a project that will be the first platform-based LNG export project and located in the US Gulf of Mexico. 

Oil Search, the Australian-listed company with a stake in the Papua New Guinea LNG plant operated by ExxonMobil, posted record third-quarter production underpinned by an “excellent performance” from PNG LNG, where output was 25 percent higher than nameplate capacity. 

Event first held in 2012 launched Tokyo’s call for the end of enforced destination clauses

Our Asia-Pacific editor

The Japanese government will host its sixth annual LNG Producer-Consumer Conference on October 18 in Tokyo when spot and long-term contract pricing will be among the main topics of debate. 

Our Europe editor

Gas Natural Fenosa, the Spanish utility whose liquefied natural gas assets include long-term LNG contracts to receive cargoes from the US Sabine Pass export plant in Louisiana as well as from Russia, said it would move its headquarters out of Barcelona because the escalating independence activity in the region of Catalonia was affecting business confidence. 

Spanish liquefied natural gas market participant Gas Natural Fenosa and Norwegian fuel-transfer technology company Connect LNG said they completed a fuel operation in Norway using the small-scale carrier “Coral Energy” and a new system that removes the need for jetty structures. 

Japanese government figures show that the average contracted price of spot liquefied natural gas cargoes for Japan in September soared by $1.20 per million British thermal units compared with a year ago to $6.90 per MMBtu. 

SDX Energy, the UK-listed exploration and production company, said it had made a natural gas discovery in Morocco, the North African kingdom that is a net importer of energy and is preparing to join the ranks of global LNG importers. 

Stolt-Nielsen, the Norwegian-listed shipping and storage company with small-scale LNG project plans on the Italian Island of Sardinia and in Scotland, posted a 19 percent rise in third-quarter net profits as revenues also increased. 

Our Europe editor

BNP Paribas, France’s largest stock exchange-listed bank, will stop representing global LNG shipping companies in bonds sales and project financing as well as developers of US LNG export projects under the bank's new environmental investment policies. 

Norwegian energy company Statoil has chosen a joint venture comprising French energy company Engie and two Japanese partners to supply LNG marine fuel in the Dutch port of Rotterdam for four crude oil shuttle tankers. 

Our Europe editor

Royal Dutch Shell said that two of its fuel subsidiaries signed a long-term agreement with shipping line Siem Car Carriers to supply LNG to fuel two new car-carrying ships being used to transport Volkswagen vehicles from Europe to North America. 

Our Europe editor

US pipeline operator Kinder Morgan and two other companies have signed an accord to develop the Gulf Coast Express Pipeline Project as an outlet for increased natural gas production from the Permian Basin for LNG export plant developers in Texas and for the Mexican pipeline market.
Kinder Morgan Texas Pipeline (KMTP), a Kinder subsidiary, will work on the Gulf Coast Express (GCX Project) with DCP Midstream and Targa Resources. 

Royal Dutch Shell completed the sale of its minority interest in Comgas, Brazil’s largest natural gas distributor, for cash and shares amounting to $380 million as it continues to offload assets that are not part of the core business. 

Australian LNG and energy engineering company WorleyParsons has put behind it several years of restructuring to pay 182 million pounds (US$240) to expand into the UK North Sea petroleum market with an agreed takeover. 

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.