In this issue


Japanese marine classification society Nippon Kaiji Kyokai, known as ClassNK, has approved a design for a bulk carrier being built at a shipyard in Japan and to be fuelled with liquefied natural gas.

Our North America editor

Koch Industries energy subsidiary Flint Hills Resources has filed for an export permit to ship liquefied natural gas in containers it plans to purchase from the existing small-scale Stabilis LNG Eagle Ford facility in Texas.

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.

News Nudges

Mitsubishi LNG move

Mitsubishi Heavy Industries said its efforts to compete for world-scale LNG liquefaction Train construction projects continues to move forward with the completion of successive technical qualifications conducted by oil majors and engineering companies. “To date, major LNG players, including ExxonMobil, Shell, Total, along with key engineering contractors such as Bechtel of the US, have all completed extensive qualification studies on the Mitsubishi Hitachi Power Systems 120MW H-100 Gas Turbine for use as the mechanical driver in conjunction with well-proven compressors of Mitsubishi Heavy Industries Compressor Corp.,” the Japanese company explained.

Karatha gas deal

UGL, an engineering subsidiary of Australia’s CIMIC Group, has secured a A$190 million (US$135M) contract extension for support work at Woodside Petroleum’s Karratha Gas Plant. The facility, located 1,260 kilometres north of Perth in Western Australia, comprises five LNG processing trains, two domestic gas trains, six condensate stabilisation units, three liquefied petroleum gas fractionation units as well as storage and loading facilities for LNG, LPG and condensate.

Taiwan’s third terminal

Taiwan, the world’s fifth-largest LNG importer, plans to build a third regasification terminal at Tao-Yuan in northwest Taiwan while also expanding its facilities at Tai-Chung and Yung-An in the south of the Island. Taiwanese energy company CPC said building was expected to start by the end of 2019.