Norway, the leading oil, pipeline gas and LNG producer in Western Europe is now preparing bidding blocks for acreage as it also develops two offshore areas for applications related to injection and storage of carbon-dioxide (CO2) on the Norwegian Continental Shelf after expressions of interest from the industry.
Qatar is determined to re-ascend as the world’s foremost LNG producer by capacity before 2030. The country has its sights fixed on market share expansion in the Far East. However, the market is shifting and Qatar may have to adapt. Markets Editor Alexander Wilk investigates.
Imminent start-up of Nord Stream 2 is bound to lower the EU’s gas price level as Russian gas costs nearly half of what buyers have to pay for LNG. Fears about possible delays of the second Baltic Sea interconnector, however, made prices at the Dutch TTF gas trading hub break through the €40/MWh mark as both Europe and Asia turn to LNG to replenish gas storage prior to next winter.Markets editor Anja Karl has more.
The tenure of long-term LNG Sales and Purchase Agreements (SPAs) has decreased materially in recent years, down from around 20 years to currently 10 years or less.
July saw broadly steady LNG flows for the month due to higher Australian, US and Qatari LNG exports and strong demand in South Korea, Japan and Kuwait. Meanwhile, year-on-year performance was up, our Markets Editor Alexander Wilk reports.
David Taylor, recently appointed Managing Director of LNG at shipmanagement company V.Group, spoke with Technical Editor Ian Cochran about the reasoning behind the move to upgrade the LNGC management department.
Sept 17 (LNGJ) - OMV Petrom, the Romanian subsidiary of Austrian oil and gas group OMV, has conducted the first LNG delivery and fuel operation at the Damen Shipyard in the Romanian Black Sea port of Mangalia, the largest shipyard in southeast Europe. “The product was used to fuel a ship equipped with LNG engines. It is the first ship of this type, built in Romania, in the Damen Shipyard,” said OMV Petrom.
Damen is building two LNG-Hybrid RoRo Ferries for Canadian company Seaspan. The vessel that received the LNG in a jetty-to-ship operation from an OMV LNG supply truck tanker was the “Seaspan Trader”, which is undergoing sea trials. The vessel is scheduled to join Seaspan’s fleet later in 2021.
Sept 16 (LNGJ) - Shipping spot charter rates for LNG carriers dropped in the past week by $3,500 per day to between $63,500 per day and $59,500 per day in the West of Suez market for vessels of 155,000-165,000 cubic metres capacity.
East of Suez spot charter rates fell by the same amount to be quoted at between $60,500 per day and $56,500 per day, according to London brokers. One-year charter rates for the most modern vessels were unchanged at about $93,000 per day.
Sept 15 (LNGJ) – Two LNG cargoes are heading for Belgium and France with much needed deliveries. The 170,000 cubic metres capacity vessel “LNG Abalamabie” is scheduled to deliver a shipment on September 22 to the French terminal at Fos sur Mer west of Marseille from the Bonny Island plant in Nigeria. The 206,000 metres capacity Q-Flex carrier “Al Kattiyah” is scheduled to discharge a cargo on September 23 at the Zeebrugge import terminal in Belgium from Ras Laffan in Qatar.
The shipments are bound for the European Union as the Continental European benchmark price, the Dutch Title Transfer facility (TTF), surged to a new summer season record of the equivalent of $22.75 per million British thermal units amid very low EU LNG storage inventories.
Sept 14 (LNGJ) - Mitsui OSK Lines, the Japanese shipping company, has signed time charter contracts for four newbuild LNG carriers with a subsidiary of Russian LNG plant owner and developer Novatek. MOL said its vessels with 174,000 cubic metres capacity would be constructed in South Korea by Daewoo Shipbuilding and Marine Engineering and are scheduled for delivery in 2024.
“The newbuilding LNG carriers are equipped with the cutting-edge MAN Energy Solutions engines, which offer major improvements in fuel efficiency,” said MOL. “There is also a new design that generates less boil-off gas from cargo tanks through the use of the re-liquefaction unit on board, and a generator system that uses the rotating propeller shaft for power generation,” it added.
Sept 13 (LNGJ) - Sonatrach, the state-owned Algerian supplier of pipeline natural gas to Europe and LNG cargoes from its Arzew and Skikda export plants, has issued a new code of ethics to achieve more transparency.
“The Group's ethics are reflected first and foremost in our commitment to conduct our activities with integrity, transparency, fairness and excellence to enable our company to accomplish its mission in the service of the development and prosperity of the country,” stated Chief Executive Toufik Hakkar. “This code is the fruit of a collective reflection around the values and principles which should guide our behavior and inspire our decisions, in order to strengthen the confidence of stakeholders,” added Hakkar.
Sept 10 (LNGJ) - Gazprom has awarded an engineering, procurement and construction contract for the construction of a Baltic Coast liquefied natural gas plant with 13 million tonnes per annum of output within the Gas Processing Complex (GPC) at Ust-Luga, west of St. Petersburg. A consortium comprising Germany’s Linde and Turkish company Renaissance Heavy Industries will build the plant and handle the installation of two LNG production Trains.
“A technology patented in Russia will be used to produce this LNG,” said Gazprom. “The patent holders for the technology are Gazprom and Linde,” it added. The LNG plant will operate within the GPC facility near Ust-Luga operated by RusKhimAlyans, a joint venture of Gazprom and RusGazDobycha.
Sept 9 (LNGJ) - Shipping spot charter rates for LNG carriers dropped in the past week by $3,000 per day to between $67,000 per day and $63,000 per day in the West of Suez market for vessels of 155,000-165,000 cubic metres capacity.
East of Suez spot charter rates fell by the same amount to be quoted at between $64,000 per day and $60,000 per day, according to London brokers. One-year charter rates for the most modern vessels were unchanged at about $93,000 per day.
Sept 8 (LNGJ) - The government of Bangladesh has short-listed eight global companies, including US and European majors as well as various Japanese companies, to develop the nation’s first onshore liquefied natural gas import terminal.
The Bangladesh Energy and Mineral Resources Division of the government said it would make the final decision soon on the group chosen to build the facility near the coastal town of Cox’s Bazar on the Bay of Bengal. The proposed new onshore terminal would handle 7.5 million tonne per annum of LNG, which is around the same as the two floating storage and regasification units (FSRUs) currently deployed.
Sept 7 (LNGJ) - The 261,980 cubic metres capacity Q-Max LNG carrier “Al Dafna” is scheduled to deliver a cargo on September 10 to the UK South Hook import terminal at Milford Haven in Wales from the Ras Laffan plant in Qatar.
The shipment, lifted on August 23, is arriving in the UK as the National Balancing Point (NBP) natural gas price was at the equivalent of $18.55 per million British thermal units, a new summer season high for modern times.
Sept 6 (LNGJ) - BP Singapore said it delivered the UK major’s first carbon-offset liquefied natural gas cargo to CPC Corp. of Taiwan at its Yung An import terminal. The premium cargo transaction includes a self-imposed tax as a “mea culpa” for carbon emissions.
“This is BP’s first delivery of carbon-offset LNG in the Asia-Pacific region, following its first delivery globally to Sempra LNG at the Energia Costa Azul terminal in Mexico in July 2021,” said BP. “This new carbon-offset LNG offer strengthens BP’s natural gas offering in the region,” it added.
Sept 3 (LNGJ) - Mitsui OSK Lines (MOL) of Japan has signed an accord with the Russian state leasing company (GTLK) for the possible acquisition of a 49 percent stake in two LNG floating storage units (FSUs) currently being built and with 100 percent ownership held by GTLK. The FSUs will have the world’s largest storage capacity of about 360,000 cubic metres and will be deployed by Russian natural gas company Novatek at Kamchatka and Murmansk for LNG cargo trans-shipments from the existing Yamal plant and Arctic II facility now under construction.
The two FSUs are being built by Daewoo Shipbuilding and Marine Engineering of South Korea. “By transporting LNG via the Northern Sea Route and by trans-shipping at Kamchatka and Murmansk, it is expected to reduce voyage costs and greenhouse gas emissions. In addition, securing LNG at a location close to a point of consumption is believed to increase security and reliability of energy supply,” explained MOL.
Sept 2 (LNGJ) - Shipping spot charter rates for LNG carriers declined by $2,000 per day to between $70,000 per day and $66,000 per day in the West of Suez market for vessels of 155,000-165,000 cubic metres capacity. East of Suez spot charter rates fell by the same amount to be quoted at between $67,000 per day and $63,000 per day, according to London brokers. One-year charter rates for the most modern vessels were unchanged at about $93,000 per day.
Sept 1 (LNGJ) - Inpex Corp, the Japanese energy company and operator of the Ichthys LNG export plant at Bladin Point, said it signed a firm supply agreement with Iruma Gas, the utility in Iruma City in east-central Honshu, for LNG cargoes with carbon offsets. Iruma Gas supplies domestic gas to Iruma residents who with four neighbouring cities signed a joint declaration in February 2021 to support lower carbon aims.
Inpex has been working closely with city-gas operators in Japan to supply wholesale natural gas at a higher price because of a self-imposed carbon tax. The LNG volumes to be supplied to Iruma Gas were not disclosed. “The neutrality of the natural gas to be supplied through this agreement is based on carbon credits certified by a credible certifier as deriving from carbon-dioxide reduction efforts at forest conservation projects, etc. based around the world where greenhouse-gas emissions have been offset throughout the entire value chain process from development to combustion,” explained Inpex.
Aug 31 (LNGJ) - While most LNG cargoes were still pointed at Asia, several were heading for Europe with the 164,700 cubic metres capacity carrier “LNG Fukurokuju” currently unloading a US shipment at the Greek import terminal at Revithoussa from the Cove Point plant in Maryland, according to shipping data. Another cargo was scheduled to arrive on September 3 at the French Atlantic Coast import terminal at Montoir-de-Bretagne from the Nigerian plant at Bonny Island on the 148,450 cubic metres capacity vessel “LNG IMO”.
The shipments were arriving as the Dutch Title Transfer (TTF)) natural gas price, the benchmark for Continental Europe, was at a seasonally high equivalent of $17.15 per million British thermal units. The other European benchmark, the UK National Balancing Point, was slighly lower at the equivalent of $16.85 per MMBtu.
Aug 30 (LNGJ) - Shipping spot charter rates for LNG carriers were steady for a second week. Rates in the West of Suez market were quoted at between $72,000 per day and $68,000 per day for vessels of 155,000-165,000 cubic metres capacity.
East of Suez spot charter rates were between $69,000 per day and $65,000 per day, according to London brokers. One-year charter rates for the most modern vessels were quoted at around $93,000 per day
Vitol Bahrain and Total Gas & Power have placed the lowest offers for a Pakistan LNG tender to buy seven LNG cargoes.
The cargoes are intended for October and November delivery, according to the company’s website.
Three companies participated in the tender, including PetroChina International. Vitol placed the lowest offer for five of the cargoes and Total for the other two.
Prices ranged from $17.1449 per MMBtu to $22.5866 per MMBtu.
The tender closed on 24th August but remains valid.
Worley, an Australian-based offshore construction company, has won a contract from Chevron Australia Pty to support the Jansz-Io compression (J-IC) project offshore Western Australia.
Under the terms of the contract, Worley will provide detailed engineering, design and construction management services for the J-IC project’s power transmission and communication components.
This agreement follows Worley’s completion of the project’s pre-FEED and FEED phases. The services will be co-ordinated by Worley’s Perth office with support from the company’s global integrated delivery team.
As part of the original development plan for the Chevron-operated Gorgon project, J-IC will use subsea compression technology to maintain long-term natural gas supply from the Jansz-Io field to the three existing LNG trains and domestic gas plant on Barrow Island.
The Jansz-Io gas field is located around 200 km offshore the northwestern coast of Western Australia and supplies the Gorgon facility on Barrow Island.
Gorgon is a joint venture between the Australian subsidiaries of Chevron 47.3%, ExxonMobil 25%, Shell 25%, Osaka Gas 1.25%, Tokyo Gas 1% and JERA 0.417%.
Pavilion Energy, a subsidiary of Singapore’s wealth fund investor Temasek, has promoted Alan Heng to the position of Interim Group CEO.
This appointment becomes effective on 26th August.
Heng will succeed Frédéric Barnaud who has decided to step down as Group CEO and return to Europe to be with his family.
Pavilion Energy’s Chairman, Tan Sri Mohd Hassan Marican, said, “Frédéric has laid a strong foundation for the Group with the development of its LNG business and its expansion into Europe.
“On behalf of the Board, management and staff, I would like to thank Frédéric for his leadership of Pavilion Energy in the past three and a half years. The Board wishes him all the best for the future,”he said.
Heng is currently Pavilion Energy’s Managing Director- Asia.
He joined the company in 2013 and has been instrumental in developing its activities in the Singapore Hub. He has been in the energy industry for 33 years and was previously in various management positions at ExxonMobil.
Atomenergomash, the mechanical engineering division of the Russian state-run nuclear corporation Rosatom, has completed construction of Europe’s first, and the world’s third, LNG plant test bench.
The test bench will be used for medium-and high-capacity LNG plants’ equipment, the company explained.
"The unit was built on the NIIEFA (the Efremov Research Institute of Electrical-Physical Equipment - TASS) site. The permit to commission the facility has been obtained. The project was implemented in accordance with the resolution of the Russian Government," the company said.
It is planned to use the facility for certification tests of domestic and imported equipment for LNG production. It can also be adapted to test other equipment.
Russia’s daily piped natural gas deliveries to China are set to rise by more than 50% by the end of 2021, China’s official Xinhua news agency reported yesterday.
The current daily rate of 28 mill cubic metres will rise to 43 mill cubic metres by year-end, ensuring supply for the winter and spring of 2022, including the Beijing Winter Olympics in February next year, Xinhua quoted a PipeChina official as saying.
The East Route pipeline scheme has carried more than 10 bill cubic metres of Russian gas to China since it started operations in December, 2019, Xinhua said.
In China, the northern and middle sections of the scheme have already been completed, while the southern section is due to be complete by 2025, allowing the project to reach its planned capacity of 38 bill cubic metres per year.
PAO NOVATEK has established a representative office in Hanoi, Vietnam.
The new office will facilitate NOVATEK's expansion into the global gas markets and provide continuous support for the company's prospective energy projects in Vietnam, it said.
Its main tasks will be to interact with partners, state-owned and private companies in Vietnam to define and develop new projects to supply LNG from NOVATEK’s portfolio to the local market.
“Vietnam offers NOVATEK the prospects of developing gas-related energy projects in the dynamically growing Asian Pacific region,” said Leonid V Mikhelson, Chairman of the Management Board, “and, is of strategic importance for us in implementing our long-term aim of delivering affordable and secure natural gas for many decades in a sustainable manner.”
Norwegian media has reported that China Communications Construction Company (CCCC) has won the contract to build Novatek’s Kamchatka LNG transhipment terminal.
The transhipment hub is intended to handle LNG loaded in the Arctic for discharge in Asia.
It had earlier been reported that Japanese companies had expressed interest in participating in the Kamchatka transhipment terminal.
It will be used to tranship Yamal LNG from Arc7 type LNG carriers to conventional LNGCs for onward transits to Asian destinations.
Canadian energy company, Irving Oil, has sold its 25% ownership interest in Canaport LNG to Repsol.
This transaction gives Repsol full ownership of Canada’s first LNG receiving and regasification terminal, which is located at Saint John (NB).
Irving Oil said that during the past number of months, all of the parties involved have been working together to finalise the deal.
The company added that confidentiality provisions prohibit it from commenting further.
Tellurian Inc has priced its public offering of 35 mill shares of its common stock to gain total gross proceeds of $105 mill.
The company has granted the underwriter a 30-day option to purchase up to 5.25 mill additional shares to cover any over-allotments.
Tellurian said that it intended to use the net proceeds from the offering for general corporate purposes, including the potential acquisition of upstream assets.
The offering is expected to close today, subject to satisfaction of customary closing conditions.
B Riley Securities is acting as the sole bookrunner for the offering.
Acteon, a marine energy and infrastructure services company, has won a contract from Atlantic, Gulf & Pacific Company (AG&P).
This contract calls for the development of an LNG import and regasification terminal in Batangas Ba - Philippines LNG (PLNG).
It will be managed by the Acteon Integrated Solutions (AIS) team who will be involved with the local transportation and installation of jacket structures for the LNG berth.
These structures will vary across the construction site and will include approach trestles, mooring and berthing dolphins, and associated furniture, such as walkways, fenders and mooring hooks.
AIS will be responsible for the full construction of the jetty and all the marine works. The team will be supported by other Acteon sections and product and service line brands.
Mitsui OSK Lines (MOL) has ordered four 7,000 unit capacity LNG powered car carriers at Shin Kurushima Dockyard C Ltd and Nihon Shipyard Co Ltd.
Compared to conventional marine fuel oil, LNG is expected to reduce emissions of carbon dioxide (CO2) by about 25-30%, sulphur oxide (SOx) by 100%, and nitrogen oxide (NOx) by about 85%, MOL said.
The vessels are due for delivery from 2024 onward.
MOL also revealed that it planned to operate around 90 LNG-fuelled vessels by 2030.
UK-based energy giant, bp, has reported strong second quarter 2021 results and continued net debt reduction in an improving environment
The company said that operating performance was resilient in the second quarter with four major project start-ups, strong momentum in the customers business, including material growth in convenience gross margin, and delivery of $2.5 bill of cash costs savings on a run-rate basis relative to 2019, around six months earlier than targeted.
bp reported a profit for the quarter of $3.1 bill, compared with $4.7 bill for the first quarter 2021.
Underlying replacement cost profit was $2.8 bill, compared with $2.6 bill for the previous quarter. This result was driven by higher oil prices and margins offset by a lower result in gas marketing and trading.
Operating cash flow was $5.4 bill, including $1.2 bill pre-tax of Gulf of Mexico oil spill payments within a working capital build of $0.5 bill - after adjusting for inventory holding gains and fair value accounting effects.
The company’s net debt fell to $32.7 bill at the end of the second quarter.
Following the annual review of price assumptions used for investment appraisal and value-in-use impairment testing, bp's Brent oil price assumption to 2030 is increased to reflect expected supply constraints, while longer-term assumptions are lowered as bp expects an acceleration of the pace of transition to a low carbon economy.
As a result of these changed assumptions, the reported result includes a pre-tax net impairment reversal of $3 bill.
Reflecting the underlying performance of the business, an improving outlook for the environment, confidence in the balance sheet and commencement of the share buyback programme, the board has announced an increase in the second quarter dividend of 4% to 5.46 cents per ordinary share.
This increase is accommodated within a 2021-5 average cash balance point of around $40 per barrel Brent, $11 per barrel RMM and $3 per MMBtu Henry Hub (all 2020 real).
bp generated surplus cash flow of $0.7 bill in the second quarter and $2.4 bill in the first half of this year after having reached its net debt target of $35 bill.
Taking into account surplus cash flow generated in the first half of the year, bp intends to execute a share buyback of $1.4 bill prior to announcing its third quarter 2021 results. For 2021, and subject to maintaining a strong investment grade credit rating, the board remains committed to using 60% of surplus cash flow for share buybacks and plans to allocate the remaining 40% to continue strengthening the balance sheet.
On average, based on bp’s current forecasts, at around $60 per barrel Brent and subject to the board's discretion each quarter, bp expects to be able to deliver buybacks of around $1 bill per quarter and have capacity for an annual increase in the dividend per ordinary share of around 4%, through 2025.
Since outlining its new strategy a year ago, bp claimed to have made strong progress in its transformation to an IEC. It has delivered eight major projects, built a 21 GW renewable pipeline, grown convenience and electrification, reorganised, reached over $10 bill of divestment proceeds, strengthened the financial frame and begun share buybacks.
The US exported 19 LNG cargoes last week, compared to 21 the previous week.
July 30 (LNG) - ENI, the Italian oil and gas company and prominent LNG market participant, reported second-quarter earnings of €2.045 billion ($2.42Bln) in the form of an adjusted operating profit compared with a loss of €434 million in the same quarter of 2020.
ENI said natural gas sales of 16.95 billion cubic metres increased by 22 percent compared with the same period of 2020. “This was mainly due to the higher gas volumes marketed outside Italy (Turkey and France) driven by the reopening of the economies and by higher volumes of LNG sold mainly by the Damietta (Egypt) plant. In the first half of 2021, natural gas sales were 34.43 Bcm, up by 13 percent.
The Milan-based company’s natural gas production amounted to 4.34 billion cubic feet per day in the period, down by 7 percent compared with the 4.53 bcf per day posted in the same three months of 2020. “Lower production was due to higher maintenance activity, mature field declines and a decrease in Nigeria. These negatives were partly offset by a robust recovery of natural gas demand in certain areas, mainly in Egypt, and the start-up of Merakes field in Indonesia,” added ENI.
July 29 (LNGJ) – Second-quarter LNG sales by TotalEnergies of France were steady at 10.5 million tonnes compared with 10.4MT in the same three months of 2020 and 9.9MT in the first three months of 2021.
“Hydrocarbon production for LNG decreased year-on-year by 3 percent and 5 percent respectively in the second quarter of 2021 and the first half of 2021, notably due to the shutdown of the Snøhvit LNG plant following a fire at the end of September 2020 and the planned maintenance shutdown in the second quarter 2021 on Ichthys LNG's liquefaction Trains in Australia,” explained the company in its earnings report.
“TotalEnergies generated cash flow of $6.8 billion, an increase of more than $1Bln compared to the previous quarter and by maintaining investment discipline, generated net cash flow of $3.2Bln this quarter, which covered the interim dividend of $2.1Bln and allowed continued debt reduction,” said Chief Executive Patrick Pouyanné.
July 29 (LNG) - Shipping spot charter rates for LNG carriers were unchanged for a second week. Rates in the West of Suez market were quoted at between $67,000 per day and $63,000 per day for vessels of 155,000-165,000 cubic metres capacity.
East of Suez spot charter rates were between $55,000 per day and $51,000 per day, according to London brokers. One-year charter rates for the most modern vessels were quoted at around $93,000 per day.
July 28 (LNG) - Singapore LNG Corp., operator of the Asian city-state’s import terminal at Jurong Island, is working with the local Keppel Infrastructure and another industry partner on the front-end engineering and design of a natural gas liquids (NGL) extraction facility at the terminal site.
The Jurong Island NGL extraction facility will remove the heavier hydrocarbons such as ethane or propane from the LNG. “The project will allow for a higher handling flexibility of LNG through Singapore, which will in turn help to enhance Singapore’s energy security,” said the operating company.
July 27 (LNGJ) - Enagás, the Spanish gas grid and LNG terminals operator as well as a shareholder in the Trans-Adriatic Pipeline (TAP), posted first-half net profits of €213.1 million ($251.2M), with greater contributions from subsidiaries while total demand for natural gas in Spain increased by 6.3 percent in the first six months of 2021.
The company said that the contribution to earnings from the US Tallgrass Energy pipelines unit and the TAP represented 40.4 percent of the total. Enagás said that since being commissioned at the end of 2020, the TAP pipeline that links Turkey with Italy through Greece and Albania had delivered 3 billion cubic metres of gas to customers through the end of June 2021.
July 26 (LNGJ) - Russian Prime Minister Mikhail Mishustin said the Government and the Sakhalin Region of the Russian Far East were examining plans to supply liquified natural gas to the Kuril Islands. There is still a dispute between Russia and Japan over the status of the Kuril Islands, located between the Japanese island of Hokkaido at the southern end and the Russian Kamchatka Peninsula in the north. The volcanic archipelago comprises 56 islands taken over by the Soviet Union at the end of World War II and have since been considered as part of Russia.
Mishustin said that Russia was considering supplying regasification and some power infrastructure to the Kurils to run on small-scale LNG shipments from Gazprom’s Sakhalin Energy LNG plant, which also supplies Japanese utilities. “LNG is probably the best option given the current global green energy requirements. This would be an excellent solution,” said the Russian PM in a statement.
July 23 (LNGJ) - Grupo HAM of Spain has opened another LNG filling station aimed at truckers at a strategic Spanish traffic location in Navalmanzano, Segovia, northwest of Madrid in Central Spain on the SG-332, next to the entrance and exit of the A-601, known as the Pinares highway.
“The Gas Station allows LNG refuelling for all makes of trucks and keeps the liquid sub-cooled and adapts immediately to the optimal temperature of the trucks, including Iveco, Scania and Volvo,” explained HAM. “This allows for fast and safe refuelling with an innovative nozzle, designed by HAM, with a ‘nofrost’ system and a double anchoring and closing system, to avoid leaks, liquid losses and to facilitate its disconnection without emitting gas into the air,” stated HAM.
July 22 (LNGJ) - Shipping spot charter rates for LNG carriers were unchanged in the past week. Rates in the West of Suez market were quoted at between $67,000 per day and $63,000 per day for vessels of 155,000-165,000 cubic metres capacity.
East of Suez spot charter rates were between $55,000 per day and $51,000 per day, according to London brokers. However, one-year charter rates for the most modern vessels increased slightly to be around $93,000 per day.
July 21 (LNGJ) - Beach Energy, the owner with Japanese trading house Mitsui of the Waitsia natural gas field in the onshore Perth Basin of Western Australia, said development was on schedule along with marketing of future LNG volumes.
“In the Perth Basin, along with our joint venture participant Mitsui E&P Australia, we are nearing commencement of construction of the gas facility for the Waitsia Gas Project Stage II, with contractor Clough on track to turn the first sod in the first half of 2022,” said Beach Energy Chief Executive Matt Kay in the quarterly activities report. Beach said it was continuing the marketing of its 50 percent share of the 7.5 million tonnes per annum of LNG expected from the Waitsia field and to be processed at the Woodside Petroleum-operated North West Shelf liquefaction plant.
July 20 (LNGJ) - JFE Steel of Japan has signed long-term charter agreements with the three main Japanese shipping companies, Mitsui OSK Lines, NYK Lines and K-Line for three LNG-powered bulk carriers to transport iron ore and coal. The three 210,000 deadweight-ton bulk carriers are being designed and built by Japanese shipbuilder Nihon Shipyard, a joint venture set up by Imabari Shipbuilding and Japan Marine United. JFE Steel said the charters were part of a gradual switch to LNG-fuelled vessels in an efforts to reduce shipping emissions.
July 19 (LNGJ) - EDF Trading, a wholly-owned subsidiary of French utility and energy company EDF S.A., has named Alex Watson as its new Head of Gas Trading. Watson took up the role on July 19 and reports to Marcello Romano, Head of Trading. “I’m delighted to welcome Alex to EDF Trading,” said Marcello Romano.
“He has extensive knowledge of the natural gas and LNG markets and will help us to expand our global gas footprint and the services we provide to the EDF Group and our third party customers,” added Romano. Watson joined EDF Trading from Freepoint Commodities where he was a Cross Commodity Trader. Prior to that, he was a European Natural Gas Trader at Citigroup.
July 16 (LNGJ) - BP Gas Marketing is scheduled to deliver an LNG cargo on July 16 with purchased carbon offsets to the Sempra Energy-controlled terminal at Costa Azul on the Pacific Coast of Mexico. The facility is currently undergoing work to be transformed into an export plant. “Sempra LNG continues to build a strong business portfolio focused on sustainability and the global energy transition,” said Justin Bird, Chief Executive of Sempra LNG.
July 15 (LNGJ) - Shipping spot charter rates for LNG carriers declined by around $7,000 per day in the past week in the West of Suez market to be between $67,000 per day and $63,000 per day for vessels of 155,000-165,000 cubic metres capacity.
For vessels East of Suez spot charter levels were also lower on the week by around $4,000 per day at between $55,000 per day and $51,000 per day, according to London brokers. However, one-year charter rates for the most modern vessels increased by about $2,500 per day to around $92,500 per day.
July 14 (LNGJ) - New Fortress Energy Inc. formally announced the start of operations at the LNG terminal in the port of Pichilingue in the northern Mexican state of Baja California Sur. “The delivery of more affordable and cleaner-burning natural gas is a significant milestone for Baja California Sur,” said Wes Edens, Chairman and Chief Executive of NFE. “Our facility will enable customers to significantly reduce emissions and costs by switching from oil-based fuels to natural gas,” he added.
The Mexican terminal features NFE’s proprietary “ISOFlex” system, which allows larger LNG carrier vessels to transload LNG into ISO storage containers on offshore support vessels (OSVs) with a specialized manifold. “These ISO storage containers can be easily offloaded at container ports and onto trucks, which enables the reduction of time, permitting requirements and capital costs for the development of NFE’s terminals,” the New York-based company explained.
July 14 (LNGJ) - Shell Tankers (Singapore) has signed agreements for a further six LNG ships with Knutsen LNG, Pan Ocean Co. and investors advised by JP Morgan Asset Management, taking the Anglo-Dutch major’s signed charter agreements for newbuild LNG carrier to a total of 24 vessels. The 174,000 cubic metres capacity carriers will be built by Hyundai Heavy Industries and Hyundai Samho Heavy Industries.
Deliveries will be made from 2023. Shell said this order builds on the long-term charters Shell announced for eight ships of the same class in December 2019, six in August 2020 and four in December 2020. “These ships will be some 35 percent more efficient than required by the energy efficiency design index and 20 percent more than required by the annual efficiency ratio, delivering significant emission reductions for our time-charter fleet,” said Grahaeme Henderson, Global Head of Shell Shipping & Maritime.
July 14 (LNGJ) - Most LNG cargoes were pointed at Asia, though several were heading for Europe. The 211,885 cubic metres capacity Q-Flex carrier “Al Khuwair” is scheduled to deliver a shipment on July 22 to the Zeebrugge import terminal in Belgium from Ras Laffan in Qatar.
The 137,500 cubic metres capacity vessel “LNG Rivers” was expected to discharge a cargo on July 25 at the Montoir-de-Bretagne terminal in Western France from the Bonny Island plant in Nigeria. The shipments were due as the Dutch Title Transfer (TTF)) natural gas price, the benchmark for Continental Europe, was at a seasonally elevated equivalent of $12.25 per million British thermal units.
July 13 (LNGJ) - Qatar Petroleum and Korea Gas Corp., the South Korean utility and energy company, have signed a 20-year sale and purchase agreement for the supply of 2 million tonnes per annum of LNG to Korean terminals for a period of 20 years.
The agreement was signed in the Qatari capital Doha between Saad Sherida Al-Kaabi, President and Chief Executive of Qatar Petroleum, and Hee-Bong Chae, the President and CEO of Kogas. The SPA signing took place almost 26 years after the first Qatar-Kogas LNG supply agreement. Qatar currently supplies Kogas with more than 9 MTPA of cargoes through long-term agreements, making it the largest supplier of LNG to Korea.
July 12 (LNGJ) - The 260,930 cubic metres capacity Q-Max LNG carrier “Umm Slal” is scheduled to deliver a cargo on July 18 to the UK South Hook import terminal at Milford Haven in Wales from the Ras Laffan plant in Qatar.
The shipment, lifted on June 27, is arriving in the UK as the National Balancing Point (NBP) natural gas price was at the equivalent of $12.50 per million British thermal units, just short of the 2021 summer season high of $12.90 per MMBtu.
July 9 (LNGJ) - Sovcomflot, the Russian shipping line with 31 gas carriers in operation or on order and an overall fleet of 145 vessels, has received confirmation from France’s TotalEnergies of the exercise of its option for two further next-generation 174,000 cubic metres capacity LNG carriers. “The vessels will be chartered for a period of up to seven years, operating within the TotalEnergies global LNG portfolio under the technical management of Sovcomflot,” said SCF.
“The option was exercised under a contract between TotalEnergies and Sovcomflot signed earlier in 2021 for one sister vessel for delivery in the third quarter of 2023,” added SCF. The two chartered carriers have twin slow-speed X-DF engines, a hull-air lubrication system. They also have two shaft generators with electronic frequency converters and will provide significant fuel savings with the re-liquefaction system minimising Gas Combustion Unit usage.
July 8 (LNGJ) - Shipping spot charter rates for LNG carriers dropped by around $7,000 per day in the past week in the West of Suez market to be between $75,000 per day and $71,000 per day for vessels of 155,000-165,000 cubic metres capacity.
For vessels East of Suez spot charter levels were also lower on the week to be at between $57,000 per day and $53,000 per day, according to London brokers. One-year charter rates for the most modern vessels increased by $5,000 per day to around $90,000 per day.
July 7 (LNGJ) - Malaysian oil and gas company Petronas said the LNG division signed a 10-year deal to supply volumes to the trading unit of the Chinese major China National Offshore Oil Corp. “The deal is for 2.2 million tonnes per annum indexed to a combination of the Brent and Alberta Energy Company (AECO) indices,” said Petronas.
The transaction between Petronas and CNOOC was given a value by the Malaysians of around $7 billion over the 10 years. “This long-term supply agreement also includes supply from LNG Canada when the facility commences its operations by middle of the decade,” said Petronas.
July 6 (LNGJ) - Kosmos Energy, the Dallas-based company developing a natural gas and FLNG joint venture with UK major BP offshore Mauritania and Senegal in West Africa, has given an operational update on the project with a delay expected for first gas.
“In Mauritania and Senegal, the Greater Tortue-Ahmeyim project continued to make steady progress during the quarter with key milestones achieved across all major workstreams,” said Andrew G. Inglis, Chairman and Chief Executive of Kosmos. “However, we are seeing cost inflation and supplier delays in the current environment together with some scope growth and, as a result, we are updating our estimates, with first gas now expected in the third quarter of 2023. Tortue is the right project at the right time with Phases 1 and 2 expected to deliver attractive returns in a strengthening LNG market,” Inglis added.