In this issue

 

Steelhead LNG has stopped work on the Kwispaa LNG project in Sarita Bay on Vancouver Island’s west coast, casting some doubt on the future strategy of the joint venture on the Pacific coast province of British Columbia. 

LNG Journal editor

Gazprom, the Russian natural gas company, and China National Petroleum Corp. have held talks about pipeline supplies from Russia that would eventually challenge LNG shipments and Gazprom now expects the pipeline gas to start flowing by the start of December 2019. 

China National Petroleum Corp., the world's third-largest energy company, plans to build 23 new natural gas storage facilities and expand 10 existing ones to help the nation have flexibility in its network for LNG imports and pipeline gas. 

There are prospects of up to $500M of new potential and large LNG orders in coming year

LNG Journal editor

Chart Industries, the US LNG equipment-maker and supplier to the liquid gas sector, posted a surge in annual sales to $1.08 billion from $842.9 million the previous year amid prospects of up to $500M of potential large LNG-related orders in 2019. 

LNG Journal editor

Chiyoda Corp., the Japanese engineering company with seven large-scale recent, current and future liquefaction contracts, has posted operational losses related to several LNG projects, including the Cameron LNG export plant in Louisiana being constructed in a joint venture with US firm McDermott International. 

US natural gas supply flows to meet the winter season peak demand in New England has been helped by the Northeast Gateway deepwater LNG import facility using floating storage and regasification units in Massachusetts Bay offshore Boston. 

LNG Journal editor

Royal Dutch Shell said it was taking its time to start commercial operations from its Prelude floating liquefied natural gas project offshore northwest Australia to make sure everything went according to plans. 

OLT Offshore LNG Toscana, the Italian floating storage and regasification unit deployed offshore Tuscany, is working at almost 100 percent of its capacity less than a year after the implementation of new allocation mechanisms via auction. 

Chevron, the US major whose assets include with two large liquefied natural gas plants in Western Australia, said it signed a sales and purchase agreement with GS Caltex Corp. for the delivery of LNG to South Korea from Chevron’s global supply portfolio. 

LNG Journal editor

The two Egyptian liquefaction plants located near the port of Alexandra will remain low-cost options for East Mediterranean natural gas producers such as Egypt itself, Israel and the island of Cyprus looking to export LNG and to use the existing capacity for 12.7 million tonnes per annum. 

LNG Journal editor

The Mexican Federal Electricity Commission (CFE) plans to renegotiate contracts with North American pipeline developers such as TransCanada Corp. and a subsidiary of US utility Sempra Energy as it attempts to downgrade pipeline natural gas and LNG and to use other fuels to meet increasing power demand. 

LNG Journal editor

The Oil Minister said Yemen said he wished to resume production of liquefied natural gas at the Gulf of Aden liquefaction and export facility that has been halted since mid-April 2015 because of the conflict. 

Japanese spot LNG cargo prices were at an average of $8.30 per million British thermal units in January 2019 on a contracted basis, $0.90 per MMBtu lower than the previous month, though $2.70 per MMBtu down on January 2018 when the trading level was $11.00 per MMBtu. 

Perenco, the European energy company with a stake in the Cameroon floating LNG production project in West Africa as well as natural gas fields and infrastructure in the UK area of the North Sea, is carrying out a strategic review and may sell some assets. 

News Nudges

BW purchases Epic Gas

BW Group, the Singapore-based shipping line with a fleet of 20 LNG carriers and liquefied petroleum gas vessels, has acquired majority control of Epic Gas, the owner of a fleet of small pressurized LPG carriers. Epic, also based in Singapore, has a fleet of 39 vessels ranging from 3,500 cubic metres capacity to 11,000 cubic metres capacity serving the short-haul and regional LPG and chemicals trade. “BW is pleased to acquire this shareholding in Epic Gas with its strong operational platform and quality fleet,” said Andreas Sohmen-Pao, Chairman of BW.


Swedish start for bunker ship

The 7,500 cubic metres capacity LNG bunkering vessel “Kairos” has conducted its first LNG supply operation for the newbuild ferry “Visborg” at the ferry pier of the port of Visby on the Swedish island of Gotland in the Baltic Sea. The “Kairos”, built at the Hyundai Mipo Dockyard in South Korea and delivered to Hamburg in Germany at the end of 2018, is owned by the joint venture company Babcock Schulte Energy.


Greek vessel charters

Tsakos Energy Navigation, the Greek shipping company, has agreed charters for its two LNG carriers. Tsakos said that it signed deals for the “Neo Energy” and the “Maria Energy” for an aggregate period of 36 months. The revenues are expected to be in the region of $60 million. “With two vessels fixed on accretive medium-term charters, the company is examining further expansion in the sector,” said Chief Operating Office George Saroglou.