The International Gas Union has issued its 15th IGU Wholesale Gas Price Survey. The report, which includes liquefied natural gas and pipeline gas trading, was first published in 2005 as a way for the market to assess global wholesale price formation mechanisms and track their evolution.
The commissioning of Spain’s El Musel LNG terminal throws several questions of Spanish and European LNG policy in sharp relief, our Markets Editor Alexander Wilk writes.
Vietnam sports an extensive roster of proposed LNG projects amid ambitious government policy. But regulatory challenges are likely to slow capacity growth, Markets Editor Alexander Wilk writes
As the global energy transition accelerates, gas resource holders face a tough choice: continue developing new LNG export facilities or pivot to blue ammonia. “For those seeking scale over the next 15 years, the prize is still LNG rather than blue ammonia,” Wood Mackenzie reckons – but for profitability and value, blue ammonia could prove “more attractive.” Our Markets Editor Anja Karl investigates.
Our July data showed higher LNG output globally both month-on-month and year-on-year. Meanwhile, global net LNG demand equally picked up as temperatures intensified power generation, our Market Editor Alexander Wilk reports.
India based software solutions provider, Blue Water Services has designed an optimisation tool specifically for the carriage of LNG by sea.
In July, the two largest LNG importers, South Korea’s Korea Gas Corp (KOGAS) and Japan’s JERA, launched the ‘Coalition for LNG Emission Abatement towards Net Zero (CLEAN)’ initiative.
Training is vital in any industry and at any level, none more so than in the LNGC sector of the LNG space. Technical Editor Ian Cochran reports.
Sept 29 (LNGJ) - Elixir Energy of Australia was positive about future coal-bed methane (CBM) gas production prospects in Mongolia, bordered by China and Russia. Elixir Managing Director Neil Young said the company’s Nomgon-10 pilot well is now online at its Nomgon IX CBM project in the South Gobi Basin of Mongolia.
Young said that Elixir was bringing the well into production slowly to minimise the risks of formation damage and shocks to the coal reservoir. “In the Yangir region, a successful drill stem test (DST) was performed on the Yangir West-2 well, with the results constituting a CBM gas discovery and with the company having proved the presence of gas-saturated coal with adequate permeability,” Elixir added. The company also has LNG production ambitions in Australia.
Sept 28 (LNGJ) - Three cargoes are heading for the European Union nations, Germany, the Netherlands and Belgium in the days ahead. The LNG carrier “Rias Baixas Knutsen” with capacity of 180,000 cubic metres is scheduled to discharge a US cargo on September 29 at the floating terminal at the German North Sea port of Wilhelmshaven, according to shipping data. The cargo was lifted on September 8 from the Cameron export point in Louisiana.
The vessel “Woodside Rees Withers” with 173,400 cubic metres capacity is due to unload a US shipment on September 30 at the Dutch Gate terminal in Rotterdam. The cargo was lifted on September 17 from the Corpus Christi export plant in Texas. The carrier “Clean Vision” with 162,000 cubic metres of capacity is scheduled to deliver a Russian cargo on September 30 to the Belgian terminal at Zeebrugge. The cargo was loaded on September 22 at the Yamal Arctic export plant at Sabetta.
Sept 27 (LNGJ) - AES Corp., the New York Stock Exchange-listed company, has agreed to sell minority stakes in its LNG businesses in the Dominican Republic and Panama. The agreements include the sale of 10 percent of the AES business in the Dominican Republic to local Latin American firms Grupo Linda and the Grupo Popular subsidiary, AFI Popular. The AES Dominican Republic assets include an LNG regasification terminal with a 160,000 cubic metres of LNG capacity, the AES Andres 319 megawatts combined-cycle gas-fired power plant, the DPP 328 MW plant and an additional 150 MW of solar and wind power plants.
The US company is also selling stakes in its assets in the Panamanian port of Colón. “AES is selling 20 percent of AES Colón in Panama, also to Grupo Linda. AES Colón includes a 381 MW combined-cycle gas turbine with an adjacent regasification facility that has a 180,000 cubic metres LNG capacity storage tank,” said the company.
Sept 27 (LNGJ) - GTT, the French designer of maritime and onshore LNG storage tanks, continues to build its Chinese portfolio of orders. The Jiangnan Shipyard in Shanghai has ordered tank designs for two LNG carriers ordered by shipping company Shandong Marine Energy (Singapore) Ltd.
“GTT will design the tanks of these two vessels, which will each offer a capacity of 175,000 cubic metres. The tanks will be fitted with the Mark III Flex membrane containment system developed by GTT,” the Paris-based company said. The delivery of the vessels is scheduled between the first and second quarters of 2027.
Sept 26 (LNGJ) - Turkish President Tayyip Erdogan and his Azerbaijan counterpart Ilham Aliyev have attended a ground-breaking ceremony for a new natural gas pipeline that will run from Turkey’s eastern province of Igdir to Sederek in western Azerbaijan. “The Igdir-Nakhchevan gas pipeline project we have launched will further strengthen our cooperation with Azerbaijan in the energy sector and will also contribute to the supply of gas to Europe,” Erdogan said.
Analysts note that after Azerbaijan’s military offensive in the past week regained control of the breakaway Nagorno-Karabakh region from ethnic Armenians, another dispute is looming with Armenia over the territory of Nakhchevan where the new pipeline will run. Like Nagorno-Karabakh, where the Armenian population has been isolated in their enclave from the country of Armenia, the Nakhchevan autonomous region of Azerbaijan borders Armenia on two sides and is 450 kilometres (280 miles) west of the Azerbaijan capital Baku.
Sept 25 (LNGJ) - Two LNG cargoes are heading for the UK this week with the National Balancing Point UK wholesale gas market futures price gathering pace. The “LNG Abalamabie” with 170,000 cubic metres capacity is scheduled to deliver a Nigerian cargo on September 28 to the Dragon import terminal at Milford Haven in Wales, according to shipping data. The cargo was loaded on September 18 at Nigeria’s Bonny Island export plant.
A second cargo is due at the Dragon facility on September 29 from Peru on board the “Methane Julia Louise” with 167,415 cubic metres capacity. The shipment was lifted on August 28 from the Pampa Melchorita plant on the Pacific coast of Peru.
Sept 22 (LNGJ) - Sempra Infrastructure, the US LNG plant owner and developer and an offshoot of utility company Sempra, said the US Federal Energy Regulatory Commission had approved the permit authorizing the Port Arthur LNG Phase II expansion project proposed for Jefferson County in Texas where the first phase is already proceeding. The latest FERC permit allows for the construction of two additional liquefaction Trains producing up to 13.2 million tonnes per annum of LNG and doubling overall output to around 26.4 MTPA from four Trains of around 6.6 MTPA of capacity.
The expected start-up dates for the Port Arthur first phase of Train 1 and Train 2 are in 2027 and 2028. “Sempra Infrastructure is committed to investing in infrastructure opportunities that help enable a cleaner and more secure energy future,” said Justin Bird, Chief Executive of Sempra Infrastructure. “The FERC order is a significant step, creating an opportunity to double the amount of secure and reliable US natural gas that Port Arthur LNG can help deliver to global markets,” Bird added.
Sept 22 (LNGJ) - Australia’s Offshore Alliance union agreed to the pay and conditions recommendation of the nation’s labor disputes arbitration body, the Fair Work Commissioner, and called off the strike by around 500 members at the Gorgon and Wheatstone LNG export plants in Western Australia that had failed to disrupt cargo flows.
“The Offshore Alliance will now work with Chevron to finalize the drafting of the agreements and members will soon cease current industrial action,” the unions said in a statement. The terms of the new wages and conditions agreements were not disclosed. “Chevron Australia has consistently engaged in meaningful negotiations in an effort to finalize Enterprise Agreements with market competitive remuneration and conditions,” said Chevron in its brief statement. The Offshore Alliance for the country's oil and gas industry comprises the Australian Workers’ Union and the Maritime Union of Australia.
Sept 21 (LNGJ) - Offshore Energies UK, the leading trade body for the energy industry whose members includes over 400 organisations with an interest in offshore oil, gas, carbon capture and other projects, said its future role had been boosted by the government’s pledge to follow “proportionate” goals towards Net Zero by 2050. The body said a consensus was needed to unlock £200 billion ($247Bln) of company investment in oil and gas as well as carbon capture and other projects.
“OEUK has sight of around £35Bln of potential oil and gas capital investment over the next 10 years, of which about half will go on projects in existing fields and half on new fields. This is part of wider oil and gas expenditure that could be £90Bln through to 2030,” it said. “The Prime Minister is right that we need to take people with us and that includes the 200,000 people working in this industry,” it added.
Sept 20 (LNGJ) - Belgian shipping company Exmar, which chartered a regasification barge to the Netherlands and sold a floating LNG production vessel to Italy’s Eni for deployment in Africa, is set to be taken over by Saverex NV, the holding company of the family of Exmar Executive Chairman Nicolas Saverys.
Exmar, based in Antwerp, had reopened the acceptance period to September 15 for the voluntary public takeover bid launched by Saverex for all shares and share options not already controlled by the bidder. As a result, Saverex now owns 47.81 million shares, representing 80.36 percent of Exmar. Taking into account the shares held by Chairman Saverys and Exmar itself Saverex controls 49.83M shares, representing 83.76 percent of Exmar. “The payment of the bid price for the shares (€12.10 per share and €2.48 per share option) offered during the voluntary reopening is scheduled for October 2, 2023,” said Exmar.
Sept 19 (LNGJ) - Royal Vopak, the Dutch global storage company and LNG sector participant, has reached agreement with Infracapital on the sale of Vopak chemical terminals in Rotterdam. Vopak, whose latest LNG investment was taking a 50 percent stake in the Dutch Eemshaven terminal in Groningen with utility Gasunie, said it reached an agreement with Infracapital on the sale of its three chemical terminals in Rotterdam, the Botlek, TTR and Chemiehaven facilities for a total price of €407 million ($434M).
Infracapital, an equity investment arm of M&G Plc of the UK, is a specialist European infrastructure investor and has a track record of owning assets in the Netherlands. The transaction is subject to customary closing conditions and is expected to close before the year-end. “Although within Vopak we will surely miss our colleagues at the chemical terminals in Rotterdam, we are convinced that our customers and colleagues will be well served by partnering with Infracapital who is a long-term and an experienced infrastructure investor,” said Patrick van der Voort, Vopak’s Business Unit President.
Sept 18 (LNGJ) - Hanwha Ocean of South Korea, formerly known as Daewoo Shipbuilding & Marine Engineering, and French classification society Bureau Veritas have started a joint development project (JDP) on the structural assessment of independent LNG fuel tanks for ultra-large ships.
“The particularity of these independent tanks is that they are not rigidly connected to the hull structure but are instead held by an important number of dedicated supports, which must be designed with consideration of non-linear structural response during operations, including loss of contact and sliding,” said a statement.
Sept 15 (LNGJ) - Turkey said it would construct a physical hub in the country’s western region of Thrace to connect all existing gas pipelines. “Turkey can also receive LNG from different countries like the US, Algeria and Qatar,” said Energy and Natural Resources Minister Alparslan Bayraktar in describing the plan
“We also take pipeline gas from Iran, Azerbaijan and Russia,” said the minister. “What we are trying to do in Thrace is build a physical hub that will connect to all respective pipelines and to our underground gas storage at Silivri as well as to LNG import terminals,” Bayraktar added.
Sept 14 (LNGJ) - The Med-class LNG carrier “Cheikh El Mokrani” with 73,990 cubic metres of capacity is scheduled to deliver an Algerian cargo on September 18 to the UK Isle of Grain LNG import terminal on the Medway River in Kent, according to shipping data. The cargo was lifted on September 11 from the Skikda liquefaction plant on Algeria’s Mediterranean coast.
Sept 13 (LNGJ) - Malaysian energy services company Bumi Armada has signed a deal with a subsidiary of Indonesian state oil and gas company Pertamina and Indonesian natural gas trading company PT Davenergy Mulia Perkasa for the development and commercialization of liquefied natural gas.
The agreement concerns resources in the Madura gas block offshore Indonesia. Bumi Armada said it would collaborate with Pertamina International Shipping to construct and operate a floating natural gas liquefaction and storage facility and on securing an LNG carrier to transport the volumes. “We are excited to collaborate with Pertamina International Shipping and DMP on this opportunity,” said a Bumi Armada statement.
Sept 13 (LNG) - UK major BP said Chief Executive Bernard Looney had notified the company that he had resigned with immediate effect for telling lies on personal relationships within the company. BP added that Murray Auchincloss, the company’s Chief Financial Officer, would act as CEO on an interim basis. Shareholders had been disappointed by Looney’s nearly four years at the helm during which the shares had risen by just 6 percent compared with double-digit rises in the stock of other energy majors. There are now rising calls for the board to quit as well.
Looney had been increasingly criticised by shareholders for his cut backs in oil and gas activities and his obsession with receiving praise from social media and “green” groups rather than getting on with the job. Analysts said some of the board should also resign for their neglectful attitudes while BP was now a possible takeover target after years of instability.
Sept 12 (LNGJ) - Santos, the operator of the Gladstone LNG plant in Queensland and the Darwin facility in the Northern Territory as well as being a significant shareholder in Papua New Guinea LNG, has successfully conducted a debt offering and priced a US$850 million senior unsecured fixed rate bond transaction in US dollars. The bonds have been priced at a fixed coupon of 6.875 percent for a period of 10 years, maturing in September 2033.
“This demonstrates continuing strong support from the capital markets and ensures our balance sheet is well positioned to deliver on our strategy,” said Santos Chief Executive Kevin Gallagher. The settlement of the bonds was expected to occur in New York on September 19 and was subject to customary closing conditions.
Sept 11 (LNGJ) - The “Arctic Voyager” with 140,000 cubic metres capacity is schedule to deliver a Norwegian cargo on September 14 to the German floating LNG terminal at the North Sea port of Wilhelmshaven, according to shipping data. The shipment was loaded on September 4 at the Hammerfest plant in Northern Norway.
The “LNG Endurance” with 170,500 cubic metres capacity is due to deliver a US cargo on September 21 to the Wilhelmshaven facility. The cargo was lifted on September 5 from the Cameron LNG export point on the coast of Louisiana.
Sept 8 (LNGJ) - Gastech, the conventions company owned by the UK’s DMG, said the next Gastech energy conference and exhibition would take place in 2024 in Houston, Texas. Gastech was formerly focused on the natural gas industry, though the latest Gastech 2023 event in Singapore showed it had now branched out into multiple other areas.
“We are hugely excited to look ahead to next year, to another continent,” said Simon Ford, Vice President of Gastech events. “I am delighted to officially announce that the next host city for Gastech 2024 will be Houston. We couldn’t think of a better location to be taking Gastech, to the energy capital of the world,” Ford added.
Sept 7 (LNGJ) - The Netherlands is scheduled to receive at least three LNG cargoes in the weeks ahead. The 174,000 cubic metres capacity “Gaslog Houston” is scheduled to deliver a shipment from Trinidad on September 12 to the Eemshaven floating LNG import hub in Groningen. The cargo was lifted on August 31 from the Caribbean nation’s Point Fortin export plant, according to shipping data.
The “Grazyna Gesicka” carrier with 170,520 cubic metres capacity is due to discharge a US cargo on September 14 at the Gate terminal in Rotterdam. The cargo was lifted on August 31from the Cameron facility in Louisiana. The vessel “Adamasto” with 174,060 cubic metres capacity will unload a US cargo on September 20 at Eemshaven. The volumes were lifted on September 5 from the Corpus Christi plant in Texas.
Sept 6 (LNGJ) - Gaztransport and Technigaz (GTT), the French LNG storage technology company, has received an order from Dalian Shipbuilding in Northeast China for the tank designs for two LNG carrier newbuilds. The vessels have been ordered by Sea Jade Investment, a joint venture comprising Hong Kong-based shipping company Wah Kwong as well as China Gas and China Ship Leasing.
The vessels will each have capacity of 175,000 cubic metres and will be fitted with the GTT Mark III Flex membrane containment system. “The delivery of the vessels is scheduled between the first and the third quarters of 2027,” said GTT.
Sept 5 (LNG) - The American Bureau of Shipping has issued China’s Hudong-Zhonghua Shipbuilding with an approval in principle for its new liquefied natural gas carrier design with 271,000 cubic metres of cargo tank capacity. The design approval was awarded at the Gastech energy event in Singapore and the Chinese design is seen as suitable for the next generation of vessels being ordered by LNG producer QatarEnergy for expansion projects.
The design features flexible dual-fuel propulsion and an air lubrication system as well as an enhanced cargo containment system together with a real-time sloshing monitoring system. “As the world’s premier classification society for gas carriers, with more than 50 years of experience, we are proud to support this advanced new design from Hudong-Zhonghua,” said John McDonald, ABS President and Chief Operating Officer.
Sept 4 (LNG) – Three cargoes are heading for Northwest European LNG import terminals in the days ahead. The “Berge Arzew” with 138,100 of capacity is due to deliver a cargo from Algeria on September 6 to the UK Isle of Grain terminal on the Medway River in Kent, according to shipping data. The cargo was lifted on August 29 from the Algerian plant at Arzew.
The carrier “BW Lilac” with 174,300 cubic metres capacity is scheduled to discharge a US cargo on September 6 at the Dutch Gate terminal in Rotterdam. The cargo was lifted on August 24 from the Calcasieu Pass plant in Louisiana. Belgium will receive a shipment from Qatar on September 7 at the Zeebrugge terminal onboard the “Al Marrouna” with 149,540 cubic metres capacity. The cargo was loaded on August 20 at the Ras Laffan plant in the Arabian Gulf.
Sept 4 (LNGJ) - The largest privately held oil and natural gas company in the former Soviet Asian Republic of Uzbekistan, Sanoat Energetika Guruhi (Saneg), has logged a three-fold increase in gas production from fields it was given responsibility for in 2019 along with a 55 percent rise in oil production. Saneg has rights for 103 oil and gas fields and has invested US$750 million. It has identified gas deposits in 78 of the fields and with 33 now under development.
As a result, gas production from the properties has risen from 389 million cubic metres per annum in 2021 to 1.4 Bcm in 2022. “The main driver of growth has been a program that utilizes flare gas released in the fields during the extraction and preparation of oil. The program saves valuable gas from being burned off, as used to be the case, and instead transfers it into the gas transmission system of Uztransgaz JSC,” Saneg explained.
GTT group company, Ascenz Marorka, has been awarded a contract by GasLog to equip its fleet of over 35 LNGCs with its ’smart shipping’ solution.
GasLog chose Ascenz Marorka after a comprehensive market screening, an in-depth technical assessment and a pilot run undertaken on two LNGCs.
The five-year contract involves the integration of high frequency sensor data and manually reported data, as well as a comprehensive set of online applications for managing, monitoring and optimising the energy and the environmental performance of the ships.
These include weather routing, voyage management, hull and propeller performance monitoring, machinery optimisation, trim optimisation, emissions monitoring and regulatory reporting.
In addition, GasLog will also utilise other GTT LNG features, such as LNG cargo management, boil-off gas (BOG) optimisation, heel optimisation, LNG ageing, roll-over prevention, emergency departure management and cargo conditioning.
Quoted LNGC owner, Cool Company (CoolCo) generated total operating revenues of $90.3 mill in the second quarter of this year, compared to $98.6 mill for the previous quarter.
The reduction was mainly related to the sale of ’Golar Seal’ in late March, 2023, the company explained.
Net income was $44.6 mill in 2Q23, compared to $70.1 mill for the first quarter.
CoolCo achieved average Time Charter Equivalent Earnings (TCE) of $81,100 per day per vessel, compared to $83,700, per day for 1Q23.
The drop in TCE was mainly attributable to a lower variable rate charter that is linked to the spot-market.
Adjusted EBITDA came in at $59.9 mill for 2Q23, compared to $67.8 mill for the previous period.
For 2Q23, CoolCo declared a dividend of $0.41 per share, to be paid to shareholders of record on 11th September, 2023.
CEO Richard Tyrrell, commented:“During the second quarter, we achieved full utilisation across the CoolCo fleet and secured well-timed growth through the exercise of our option on two state-of-the-art newbuild MEGA LNG carriers with deliveries in late 2024. The pricing was materially below current levels and committed financing in place, subject to documentation.
“By exercising our option to acquire these vessels with scheduled delivery years well in advance of comparable newbuild orders, we are one of the few independent owners with availability in an early period of rapid expected growth in LNG supply.
“In conjunction with our three existing vessels that come into the charter market in 2023 and 2024, of which two are currently at rates well below prevailing levels, we have a clear path towards the realisation of significant incremental value, cash flow, and continued dividend-paying capacity.
“With the approach of winter in the Northern Hemisphere, which is typically accompanied by a surge in LNG carrier demand related to both increased gas consumption and additional utilization for floating storage, trading arbitrage involving lengthy voyages to the Far East, and weather-related delays that soak up shipping capacity, the market seems tightly coiled.
“Moreover, the recent extreme volatility in gas pricing demonstrates a continued emphasis on energy security, as importers continue to put a premium on the commodity and the shipping capacity required to ensure security of supply,” he said.
Sarawak Shell Berhad (SSB), a subsidiary of UK energy giant Shell, has announced that gas production has commenced at its Timi platform in Malaysia under the SK318 production sharing contract (PSC).
Timi features Shell’s first Malaysian wellhead platform that is powered by a solar and wind hybrid power system.
This unmanned platform is also more cost efficient, as a result of it being around 60% lighter in weight, than a conventional tender-assisted drilling wellhead platform that relies on oil and gas for power, Shell claimed.
“Timi demonstrates we are delivering more value with less emissions,” said Zoe Yujnovich, Shell’s Integrated Gas and Upstream Director. “Bringing the project online is also an example of our focus on performance, discipline, and simplification.
“It shows our ability to innovate and deliver safe, reliable, and sustainable projects that support a balanced energy transition for Malaysia,” she said.
Timi is designed to produce up to 50,000 barrels of oil equivalent per day of gas at peak production and will ship the gas through a new 80 km pipeline to the F23 production hub.
Australian gas developer, Santos has reported free cash flow from operations in the first half of this year of $1.13 bill, down 34% and an underlying profit of $801 mill, a drop of 37% on the corresponding result in 2022.
The statutory net profit was $790 mill, a fall of 32%, compared to 1H22.
First half 2023 production was 45 mill barrels of oil equivalent, a drop of 13% over the period.
Santos said that the results reflected the strength of the disciplined operating model, which was designed to ensure the business remains resilient through the oil price cycle.
The Board has agreed to pay an interim dividend of $8.7 cents per share unfranked ($283 mill), 14% higher than the corresponding period interim cash dividend of 2022.
Managing Director and CEO, Kevin Gallagher, said Santos had delivered strong free cash flow and underlying earnings in 1H23, despite an ever-changing macro environment.
“We remain focused on executing our strategy to backfill and sustain our existing infrastructure, de-carbonise and develop our Santos Energy Solutions division. Our goal is to strike the right balance between disciplined and phased major project spend, returns to shareholders, and investment in new energy solutions to meet customer demand.
“Our Santos Energy Solutions division is expanding and continues to work on building new revenue sources through de-carbonisation projects. The Moomba carbon capture and storage project will be one of the biggest and lowest cost in the world and is on track for first injection of CO2 next year,” Gallagher revealed.
“Our critical fuels play a key role in the energy security of Australia and Asia. Gas enables a cleaner energy future, offering firming for renewable electricity and an affordable, reliable alternative to higher-emitting fuels.”
US offshore LNG structure developer, Delfin Midstream has entered into a design and engineering contract with China’s Wison Offshore & Marine.
As a result, Wison will construct the FLNGs to be utilised on the company’s deepwater port projects currently under construction in North America.
Delfin said that it was accelerating the development of the remaining FLNG vessel slots at the Delfin LNG project, as a result of the strong demand.
Global merchant commodities company, Hartree Partners is undertaking Delfin’s marketing to Chinese LNG buyers.
In addition, the company said it was also progressing with the development of additional deepwater port projects in North America in co-operation with existing midstream and financial partners.
Delfin is developing the LNG deepwater port project, which can support four FLNGs with a combined export capacity of up to 13.3 mill tonnes per annum.
The company has secured commercial agreements for LNG sales and liquefaction services and is in the final phase towards FID on its first two FLNGs, it said.
Höegh LNG Holdings (HLH) and its subsidiaries reported a total income of $126.8 mill and an EBITDA of $78.7 mill for the second quarter of 2023.8.23
This compares to $137.4 mill and $91.9 mill for the preceding quarter.
The $13.2 mill fall in EBITDA was mainly a result of ‘Hoegh Giant’, which earned a very strong charter rate in the first quarter, being idle for most of second quarter, partially offset by ‘Hoegh Gandria’, which was acquired towards the end of the first quarter, commencing a one year LNGC timecharter from late April 2023.
The group recorded a profit after tax of $19.6 mill for 2Q23, a drop of $14.5 mill from $34.1 mill recorded in the preceding quarter. The decrease was mainly related to the EBITDA decrease and an increase in income taxes.
Operating cash flows increased in second quarter by $7.7 mill to $77 mill. This increase was mainly driven by changes in working capital, partially offset by the drop in EBITDA and higher payment of corporate income tax.
Net cash outflows from investing activities of $11.8 mill was mainly related to investment in new equipment for FSRUs. Net cash inflows from financing activities during the quarter totalled $96.1 mill, primarily comprising net proceeds from new borrowings, offset by repayment of a corporate credit facility, regular instalments of borrowings and lease payments, dividends paid to non-controlling interests in Höegh LNG Partners (HMLP) and interest payments.
For the first half of 2023, HLH reported a total income of $264.2 mill and EBITDA of $170.6 mill, which compares to $178.6 mill and $101.3 mill, respectively for the same period of 2022.
The EBITDA increase primarily reflected higher contribution from several vessels contracting higher charter rates and having less idle time and the acquisition of ‘Hoegh Gandria’ in March 2023.
HLH recorded a net profit after tax $53.6 mill for 1H23, which compares to a net loss of $5.5 mill for the same period last year. The improvement is mainly due to the aforementioned increase in EBITDA, partly offset by an increase in net interest expenses.
Commonwealth LNG has signed an equipment supply agreement with Baker Hughes.
Baker Hughes will work with Commonwealth LNG on maximising its planned LNG export facility's output at Cameron Parish, Louisiana and minimising emissions through the use of the LM9000 aeroderivative gas turbine technology.
An order for the LM9000 equipment is expected to be signed in conjunction with financial closure (FID) of the LNG export project, which is due in the first quarter of next year.
This preliminary agreement will also feature other Baker Hughes’ equipment, services and software to support the project, including compressor technology, spare parts, maintenance services and the Cordant Asset Performance Management software suite.
Commonwealth LNG said it viewed its relationship with Baker Hughes as vital in ensuring that it commences production in early 2027.
Hungary plans to begin receiving LNG shipments from Qatar in 2027, Hungarian Foreign Minister, Peter Szijjarto told a news conference recently.
"We have reached a political agreement, which is now followed by talks between energy companies Qatargas and Hungary's MVM to determine the quantity, pace and shipment route of the supplied gas to Hungary from 2027," Szijjarto said.
Qatar has no spare export capacity until 2027, he explained.
Hungary still relies on Russia for much of its oil and gas requirements.
Under a 15-year deal signed in 2021, Hungary currently receives 4.5 bill cu m of gas per year via Bulgaria and Serbia under a long-term deal with Russia.
Belgian LNG supplier, Fluxys LNG is offering slots at its Zeebrugge LNG Terminal, starting on 1th and 6th December, 2023.
For these cargoes, Fluxys has upgraded the standard slot size and has commercialised as a bundle the right to unload, store and regasify up to 165 000 cu m of LNG over 10 days.
Both slots will be auctioned on 13th September, which will take place via a dedicated Auction Website.
Engineering company, Elliott Group has won an order to supply cryogenic rotating equipment for the Port Arthur LNG Phase 1 project in Jefferson County, Texas.
Elliott will supply cryogenic pumps, expanders, boil-off gas (BOG) compressors, and end flash gas (EFG) compressors for the project, which is being developed by Sempra Infrastructure.
“Elliott has the unique ability to leverage our manufacturing capabilities to provide a single-stop shop for the compressors, pumps, and expanders,” said New Apparatus Senior Sales Engineer, Don Binda.
Elliott was awarded the contract by Bechtel Energy, which was contracted to perform the detailed engineering, procurement, construction, commissioning, startup, performance testing, and operator training activities for the project.
“Over the years, Elliott has contributed to many industry-leading innovations in LNG service and has been a key partner for some of the largest LNG projects throughout the world. We are excited to be a part of this project, which will provide US LNG to customers,” Binda added.
Last week, Pakistan’s Oil and Gas Regulatory Authority (OGRA) dropped its imported LNG prices for August.
According to OGRA’s notification, the new LNG price for SNGPL (Sui Northern) was set at $12.48 per unit, while the new prices for SSGC (Sui Southern) were $12.96 per MMBtu.
SNGPL consumers’ LNG price was reduced by $0.16 per MMBtu, while for SSGC consumers the rate was slashed by $0.1 per MMBtu.
Earlier, OGRA had flagged up an increase of $0.17 per MMBtu in prices for May. The authority had increased the LNG price for SNGPL by $0.16, while the price for SSGC was hiked by $0.17.
Bangladesh’s Cabinet Committee on Economic Affairs (CCEA) has approved two separate proposals in principle for procuring LNG.
The LNG would come from two importing Bangladesh companies.
Briefing reporters after the meeting virtually, Cabinet Division additional Secretary Md Amin Ul Ahsan said that the CCEA meeting approved four proposals, two of which concerned the LNG purchases.
He said that following two separate proposals from Bangladesh’s Energy and Mineral Resources Division, Petrobangla would procure 1 to 1.5 mill tonnes per year of LNG from Excelerate Energy Bangladesh located at Moheshkhali under a long-term arrangement for 15 years starting from 2026.
The second purchase would involve 1.5 mill tonnes from Summit Oil and Shipping Company also under a 15-year deal beginning in 2026, he said.
Extremely high temperatures have prompted Kuwait Petroleum Corporation (KPC) to issue several LNG spot purchase tenders recently.
Since 6th July, KPC has purchased six LNG cargoes from the spot market to meet fuel requirements in the extreme heat for electricity production.
On 2nd August, KPC awarded tender and purchased two LNG cargoes for September delivery at $10.2/$10.3 per MMBtu.
A market source talking with Reuters said that one cargo could be delivered in the second half of September and the other could be rolled over into early October delivery.
The cargoes were thought awarded to a producer.
In an earlier tender that closed on 18th July, KPC awarded two cargoes for a delivery window of 25th August/30th September at a price slightly higher than $10 per MMBtu to a producer and a portfolio company.
A market source based in the Middle East said that the requirement by KPC is based on the LNG price comparison and fuel oil and not comparable to other benchmarks.
The source added that the timing of tenders being issued was also to get a competitive price offer.
KPC began its spot procurement for the summer when it closed its 6th July tender and purchased two cargoes for around $11.1/$11.3 per MMBtu.
Tellurian continued to execute its integrated strategy by progressing construction of its Driftwood project and through production and sales of natural gas, the company said in an earnings release.
President and CEO, Octávio Simões, confirmed, “Bechtel is progressing very well on Driftwood LNG construction, having driven over 9,000 piles and poured over 10,000 cu ft of concrete for plant one and the storage tanks, and having recently prepared plant two’s site for piling work.
“We also hired former investment banker, Simon Oxley as Chief Financial Officer and with his extensive experience and leadership, we are significantly enhancing our project financing efforts,” he said.
The company generated around $32 mill in revenues from natural gas sales in the second quarter of 2023, compared to $61.3 mill in the second quarter of 2022. The drop was driven by decreased realised natural gas prices, partially offset by increased production volumes.
Tellurian also reported a net loss of about $59.6 mill, or $0.11 per share (basic and diluted), for 2Q23, compared to a net loss of around $35,000, or zero per share (basic and diluted), for the same period of 2022.
As of 30th June, 2023, Tellurian had about $1.3 bill in total assets, including around $106.7 mill of cash and cash equivalents.
Shell is to lease LNG receiving terminals operated by Chinese state energy infrastructure company, PipeChina under a medium and long term basis.
The UK energy giant claimed to be the first international oil and gas major to sign such an agreement with PipeChina, it said on its Chinese subsidiary’s official WeChat outlet.
No other details were provided.
In early 2021, Shell became one of the first global gas players to qualify to use PipeChina's terminal facilities, the company added.
Established in late 2019, PipeChina operates seven LNG terminals along China's eastern and southern coasts with a total annual capacity of nearly 28 mill tonnes.
July 28 (LNGJ) - UK major BP and Austrian energy company OMV have signed a long-term sale and purchase agreement covering supply of up to 1 million tonnes of liquefied natural gas per annum to the land-locked Austrians for 10 years from 2026.
“Under the terms of the agreement, BP will provide OMV with LNG from its diverse and global portfolio of LNG, which will be received and regasified through the Gate LNG terminal in Rotterdam in the Netherlands, where OMV holds regasification capacity, or other terminals in Europe,” BP said.
July 27 (LNGJ) - TotalEnergies reported a 27 percent drop in net income for the second quarter to $4 billion and cash flow from operations dropped 39 percent to $9.9Bln as it completed major deals during the three months in oil, integrated power and LNG. The LNG transaction related to the French major’s investment in the US development company NextDecade Corp. and its Rio Grande project in Texas.
“The Integrated LNG segment posted cash flow of $1.8 billion, benefiting from the high margins captured in 2022,” said TotalEnergies Chief Executive Patrick Pouyanné. “Adjusted net operating income was $1.3Bln, reflecting lower LNG prices, averaging $10 per million British thermal units, and softer trading results in less volatile markets,” the CEO added.
July 26 (LNGJ) - Subsea 7, the Norwegian-listed contractor working on projects including the Sakarya gas field in the Black Sea, Turkey’s largest ever discovery that will reduce LNG needs, said it expected a rise in revenues as “pricing and contract terms showed continued positive momentum” during the second quarter.
The company reported an 11 percent rise in earnings to $162 million from $134M in the same quarter of 2022. Quarterly revenues jumped to $1.51 billion from $1.24Bln. “The backlog is $10.4 billion, of which $3.0Bln is to be executed in 2023 and $4.3Bln in 2024,” it said. Subsea 7 added that contracts included “notable awards” such as the Sakarya Phase 2A integrated subsea development project in Turkey.
July 25 (LNGJ) - The Port of Brownsville in Texas, the only deep-water seaport directly on the US-Mexico border, said the Brazos Island Harbor (BIH) Channel Improvement Project would soon enter the construction phase to ease access for large ships. This will include the vessels berthing at the Rio Grande LNG export joint venture being developed by Houston-based NextDecade Corp. and partners.
The Port said the improvement project’s contractor Great Lakes Dredge & Dock Corp. had received a Notice to Proceed to perform the work on the Brownsville Ship Channel. “Great Lakes is set to commence Phase 1 of the project later this year,” said the Port. “The historic BIH project will deepen the 17-mile-long Brownsville Ship Channel from 42 to 52 feet, resulting in significant navigational safety improvements for commercial shipping in South Texas,” it added.
July 24 (LNGJ) - Belgium is scheduled to receive two LNG deliveries from Qatar in the next week. The carrier “Al Marrouna” with 149,500 cubic metres capacity is due to berth at the Zeebrugge terminal on July 27 with a shipment lifted on July 8 from the Ras Laffan complex in Qatar. The second delivery is onboard the “Al Khor” vessel with 135,300 cubic metres capacity. The ship will discharge the cargo on July 30 at the Belgian port after it was lifted in Qatar on July 12, according the shipping data.
July 21 (LNG) - Two LNG cargoes are heading for the Netherlands. The “LNG Schneeweisschen” with 180,125 cubic metres of capacity is scheduled to discharge a US cargo on July 22 at the Dutch Gate terminal in Rotterdam. The volumes were lifted on July 10 from the Freeport plant in Texas, according to shipping data.
The “Rioja Knutsen” with 176,300 cubic metres of capacity is scheduled to deliver a shipment to the Gate facility on July 23. The cargo was loaded on July 10 at the Corpus Christi export facility in Texas.
July 20 (LNGJ) - Jadestone Energy plc, the Singapore-based and London-listed oil and gas production company focused on the Asia-Pacific region, said its Akatara gas re-development project offshore Indonesia was 42 percent complete and remained on budget and schedule for first gas in the first half of 2024.
According to data, the Akatara conventional gas field is expected to recover 52.45 million barrels of oil equivalent comprising 15.66 million barrels of oil and condensate, 74.12 billion cubic feet of natural gas reserves and 24.44 million barrels of natural gas liquid reserves. “After a challenging period, we consider mid-year 2023 to be an inflection point for Jadestone as we start to rebuild shareholder confidence in our investment case and operational delivery,” said Paul Blakeley, Jadestone President and Chief Executive.
July 19 (LNGJ) - National Grid plc, whose strategic and widespread assets include the UK Isle of Grain LNG import terminal, has agreed to sell a further 20 percent equity interest in the UK gas transmission and metering business to the existing majority owners, a consortium of long-term infrastructure investors led by Macquarie Asset Management of Australia. The extra 20 percent will give the consortium 80 ownership of the UK gas transmission assets subject to regulatory clearance.
Martin Bradley, European Head of Infrastructure for Macquarie Asset Management, said the additional investment underlines the group’s commitment to the UK's energy system. “We have been working closely with the National Gas team since January as they have continued to meet the energy needs of millions of households and businesses. We are pleased to continue our strong relationship with National Grid, and aspire to acquire the remaining interest in due course,” Bradley said.
July 18 (LNGJ) - Indian Oil Corp., the country’s main oil refiner and importer and the owner of the LNG import terminal at Ennore in Kamarajar Port in the East Coast state of Tamil Nadu, has signed separate long-term supply agreements with France’s TotalEnergies and a unit of Abu Dhabi National Oil Company (ADNOC) for a combined 2 million tonnes per annum of deliveries.
TotalEnergies will supply 800,000 tonnes a year to state-owned Indian Oil for 10 years while the ADNOC subsidiary, Abu Dhabi Gas Liquefaction, will deliver 1.2 MPTA to the Indian refiner under a long-term deal starting in 2026.
July 17 (LNGJ) - Japan Petroleum Exploration (Japex), the mainly Asian energy and LNG projects particpant, has established a joint venture in Norway with Longboat Energy called Longboat Japex Norge AS. Longboat said that having completed the transaction, a $100 million financing facility for acquisitions and associated development costs has been established for the venture to draw on.
“We are pleased that the creation of the Longboat-Japex joint venture has completed as scheduled and now looks forward to pursuing further acquisitions and opportunities on the Norwegian Continental Shelf to follow on from the first joint transaction announced at the beginning of this month,” said Helge Hammer, Chief Executive of Longboat. “In the near term, we are looking forward to the drilling of the high impact Velocette exploration well (JV 20 percent) which is expected to spud in September,” said Hammer.
July 14 (LNGJ) - Belgian shipping company Exmar, which chartered a regasification barge to the Netherlands and sold a floating LNG production vessel to Italy’s Eni for deployment in Africa, has altered share totals and schedules to progress with the takeover of Exmar by Saverex NV, the holding company of the family of Exmar Executive Chairman Nicolas Saverys.
A statement said the initial acceptance period of the voluntary and conditional public takeover bid had an initial acceptance of 77.76 percent of the outstanding shares. Saverex has, therefore, decided to waive the 95 percent acceptance threshold and was proceeding with the bid. The payment of the bid price for the shares offered during the initial acceptance period is still scheduled for July 27. Saverex has also decided voluntarily to reopen the bid from Monday 28th August until Friday15th September 2023 at 16:00 (Belgian time).