In this issue

 

Australian developer LNG Ltd has received its final environmental impact statement from US regulators for its Magnolia LNG export venture in Louisiana and at the same time has agreed a final turn-key engineering and construction contract amounting to $4.35 billion for four liquefaction Trains.

Our Asia-Pacific editor

Inpex Corp., the Japanese energy company and LNG project developer, said the floating production venture it is planning offshore Indonesia with Royal Dutch Shell would produce 7.5 million tonnes per annum of LNG when completed, more than originally envisaged, and engineering work was starting soon.

Our Europe editor

Ophir Energy of the UK announces that it has finalised commercial terms and is in the process of signing preliminary sales agreements for LNG offtake from the Fortuna Floating LNG project offshore Equatorial Guinea in West Africa.

The Texas LNG Brownsville project said it had submitted all 13 draft resource reports to the Federal Energy Regulatory Commission, a key accomplishment in the US Government regulatory approval process, and has signed a plant automation agreement.

The Japanese government said the average price of spot liquefied natural gas cargoes delivered to Japan in October was $7.90 per million British thermal units compared with $15.30 per MMBtu in the same month a year ago, before falling oil prices impacted the market, a drop of $7.40 per MMBtu, or 48.3 percent, in 12 months.

Japanese electric power utilities imported almost 19 percent less liquefied natural gas in October compared with a year ago as heavy fuel oil and thermal coal purchases also dropped with an across-the-board seasonal decline in power demand.

Clean Energy Fuels Corp., one of the largest providers of LNG and other natural gas fuels for transportation in North America, continues to make progress and has boosted its volumes of delivered gallons while adjusting to the oil-induced price pressures.

Our North America editor

Australian liquefied natural gas stakeholder Santos, the subject of a bid inquiry from an equity fund backed by Brunei and Dubai investors, has named Kevin Gallagher from LNG engineers Clough Ltd. as its new Chief Executive following a strategic review.

Our Europe editor

The liquefied natural gas construction industry has enjoyed a sustained boom thanks to healthy order books for new LNG projects, especially in the US and Australia. It reached peak capacity in 2015 and now the inevitable decline is on the horizon, a report says.

Global natural gas trade is expanding and LNG is increasing more rapidly than pipeline gas and there will be ample supply of LNG cargoes over the medium term, the International Energy Agency said in its annual outlook.

Our Europe editor

Gaz Metro LNG, a unit of the largest natural gas company in the Canadian province of Quebec, has signed commercial agreements with UK National Grid's New England natural gas distribution companies in the US to deliver them supplies of LNG.

Crowley Maritime Corp.'s petroleum distribution group has been granted approval by the US Department of Energy and the National Energy Board of Canada to import Canadian-sourced LNG for supply, transportation and distribution throughout the Pacific Northwest and Alaska.

Our North America editor

New York State has vetoed the previously approved Port Ambrose LNG Deepwater Port offshore New York City and New Jersey, with the New York Governor saying he favoured wind projects instead.

Dutch natural gas company Gasunie, a shareholder in the Rotterdam Gate LNG terminal, has issued its latest survey showing supply and transit routes and its own markets overview indicating more Russian pipeline gas and LNG from various sources heading for Europe.

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.