The liquefied natural gas industry has been a leader for many years in developing new shipping technology and improving efficiency and safety. The sector includes many small companies with world-class technologies, including one in the UK whose system can guarantee fuel savings for LNG carriers of five percent or more.
China’s early post-COVID demand recovery gives it headroom to absorb spot LNG cargoes on top of contractual supply from Australia and Qatar. With Asia spot LNG priced as low as $2.30 per MMBtu, US LNG deliveries are currently uncompetitive. But the arbitrage window between Henry Hub and the Japan-Korea Market (JKM) is about to reopen. “We expect higher Northeast Asian prices will end the recent practice of cancelling offtake cargoes from US projects from October US loadings,” James Whistler, Global Head of Energy Derivatives at SSY told LNG Journal in an interview.
Global LNG trade has been on a distinct declining trend since March, when public health measures at stalling the spread of COVID-19 began to take hold. Exports decreased by 2.16mmt (-7%) in April, followed by a 1.11mmt (-16%) reduction in May. In June, this trend saw its preliminary peak, whereby global conventional LNG trade saw a 2.83mmt reduction, decreasing to 26.30mmt (-9.7%) from the 29.13mmt seen in May. Trade performance in June 2020 also marks a decrease of 1.79mmt over 2019, equating to 6.4% of negative growth year-on-year.
LNG buying activity is gaining traction, spurred by rising demand from South Korean independents, second-tier Chinese importers and Indonesian utility buyers – all keen to strike mid-term deals at current low gas prices. In fact, deliveries of oil-indexed LNG cargoes have become competitive with thermal coal prices. Hence imported Australian coal increasingly gets displaced by LNG in markets like South Korea, Japan and Indonesia.
As a result of this divergence, specific sectors of the current fleet are ageing much faster than others as they are not replenished with newbuilds. Meanwhile, Chinese yards have helped to reign in newbuild prices since 2010. At the same time, we are seeing an emerging division between Chinese and South Korean yards based on technology. Finally, lower emissions policies have had a clear impact on engine and containment system choice.
Singling out the world’s emergence from the Covid-19 pandemic as “a pivotal moment” for global economies, BP chief executive Bernhard Looney sees signs of a rebounding global gas demand, driven a global shift to cleaner-burning fuels.
Argentina has both benefitted and suffered from a protracted low-price environment. The country’s macroeconomic performance is closely linked to its energy economy as seasonal demand spikes impact the national energy trade balance. As a result, successive Argentine governments have been keen to develop the country’s domestic hydrocarbon resources, chief among which is the Vaca Muerta shale oil and gas play. However, the development of the vast play is expensive and record low prices have eroded the commercial viability outlook for a large-scale liquefaction plant necessary to monetise the targeted shale gas surplus. Notably, Argentina’s gas production has once again embarked on a declining trajectory – albeit from elevated year-on-year levels – with domestic demand ramping up as the regional winter season takes hold. The country’s saving grace, however, is the same flush spot market and its prevailing low LNG prices that is plaguing its prospects as a growing LNG exporter.
WinGD claimed to be the only 2-stroke low speed engine designer to produce engines operating on diffusion (Diesel) and on pre-mixed (Otto) cycles in the maritime sector.
News that Air Liquide had commissioned a Turbo-Brayton cryogenic unit on an LNGC, prompted LNG Journal Technical Editor, Ian Cochran to speak with Yannick Dupont, Deputy Vice President Sales Turbo-Brayton and Cryogenic solutions.
The affordability and security of LNG as a fuel source for transport lend it strategic importance amidst the current Covid-19 pandemic, according to the Natural & Bio Gas Vehicle Association (NGVA Europe).
Italian offshore receiving terminal OLT Toscana has handled its 100th LNG carrier cargo.
This was achieved on 31st July, 2020 when the TMS Cardiff Gas 2020-built LNGC ‘Bonito LNG’ arrived at the FSRU for a ship-to-ship transfer.
OLT Terminal has received LNG from the main exporting countries, such as - Algeria, Cameroon, Egypt, Equatorial Guinea, Nigeria, Norway, Peru, Qatar, Trinidad and Tobago and the US and from other European terminals (Spain, Belgium and the Netherlands).
The total amount of LNG discharged thus far is around 13.8 mill cu m. Since October, 2018, the Terminal has been working at 100% of capacity, OLT claimed.
July 31 (LNGJ) - US LNG exports amounted to seven cargoes for a second week from the five large plants in operation. Two departed from Sempra Energy’s Cameron facility in Louisiana, two from the Cove Point plant in Maryland and one each from Corpus Christi, Sabine Pass and Freeport, according to the Energy Information Administration. US net injections into storage totaled 26 billion cubic feet for the previous week versus the five-year (2015-2019) average net injections of 33 Bcf and last year's net injections of 56 Bcf during the same week. “Working natural gas stocks totaled 3,241 Bcf, which is 429 Bcf more than the five-year average and 626 Bcf more than last year at this time,” said the EIA.
July 30 (LNGJ) - LNG carrier charter rate discussions have increased in the West of Suez market as the fixing window progresses further into September. Brokers said that while traders argue that the economics of the arbitrage window are unsupportive of freight at such high levels, the available shipping still seems to be in short supply when considering the balance of the fleet across the East and West of Suez markets.
Charter rates for LNG carriers in the spot market were steady over the past week. Rates were quoted at an average of between $35,000 per day and $37,000 per day West of Suez and at rates of between $32,000 per day and $34,000 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters for the most modern vessels were seen at rates of around $44,000 per day.
July 29 (LNGJ) - Saipem, the Italian energy engineering company whose projects include the subsea portion of the Mozambique LNG export project in southeast Africa, reported an operating loss of €534 million ($627M) in the second quarter and a first-half loss of €711M compared with a profit of €262M in the first half of 2019. Saipem is particpating in subsea work in the Area 4 licence in the Rovuma Basin offshore Mozambique under a multi-year drilling contract on behalf of Italian company Eni. Milan-based Saipem is also part of the joint venture for Russian company Novatek's Arctic LNG II project proposed for the Gydan Peninsula in northern Siberia.
July 28 (LNGJ) - Chevron Corp. plans to re-start the second Train at the Gorgon LNG export plant on Barrow Island in Western Australia in September as repairs are carried out after “weld quality issues” were discovered in the propane heat-exchangers. Gorgon has three Trains and produces a total of 15.6 million tonnes per annum. Chevron as operator has a 47.3 percent stake and the other two main shareholders are ExxonMobil Corp. and Royal Dutch Shell. The main customers are Japanese utilities.
The second Train was first shut down on May 23 as part of a scheduled maintenance programme and a re-start of the Train was initially expected by mid-July. “Repairs are underway and we have the necessary personnel with skills and knowledge to conduct the work onsite,” said Chevron. “Once repairs are complete, we expect to safely commence LNG Train 2 restart activities around early September,” the company added.
July 27 (LNGJ) - The 266,000 cubic metres capacity Q-Max carrier “Bu Samra” will deliver a cargo on August 3 to the UK South Hook terminal at the Welsh port of Milford Haven from the Ras Laffan plant in Qatar, the port authorities said. The 155,000 cubic metres capacity vessel “British Sapphire” will deliver a shipment on August 4 to the Bilbao terminal in northwest Spain from the Point Fortin plant in Trinidad.
The US delivery schedule for China and India is coming back on track, according to shipping data. The 155,000 cubic metres capacity “British Mentor” is scheduled to deliver a cargo on August 13 to the port of Tianjin in northeast China from the US Cove Point plant in Maryland. The 178,000 cubic metres capacity carrier “Castillo de Merida” lifted a cargo over the weekend from the Freeport plant in Texas and is headed for the Hazira plant in India with delivery expected around August 23.
July 24 (LNGJ) - Novatek, the Russian natural gas company and operator of the Yamal LNG plant in northern Siberia, said its power and gas subsidiary shipped the first cargo of LNG from the Yamal facility to Japan eastbound via the Northern Sea Route.
Novatek said the cargo was delivered by the 172,000 cubic metres capacity LNG carrier “Vladimir Rusanov” under a spot contract and unloaded at the Ohgishima import terminal at Tokyo Bay in Japan. “This LNG cargo is the company’s first successful experience of unloading an Arc-7 ice-class LNG tanker at a Japanese port,” said the Russian company.
July 24 (LNGJ) - The Australian Department of Mines, Industry Regulation and Safety said it planned to inspect the Chevron-operated Gorgon LNG export plant on Barrow Island in Western Australia after a labor union called for it to be shut down as soon as possible as a safety risk.
“The Department is aware that Chevron discovered issues with propane kettles at its Gorgon LNG plant during routine maintenance and understands the company is investigating,” it said. “While DMIRS does not have any immediate concerns for worker safety, the department is taking the matter seriously and is in discussion with Chevron about the findings from its maintenance inspections and the assessment of the results to date,” it added.
July 23 (LNGJ) - Shipping charter rates for LNG carriers in the spot market increased slightly over the past week. Rates were quoted at an average of between $35,000 per day and $37,000 per day West of Suez and at rates of between $32,000 per day and $34,000 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters were steady for the most modern vessels and were seen at rates of around $44,000 per day.
July 22 (LNGJ) - Naturgy Group of Spain, an importer of both US and Russian LNG volumes, said its first-half gross earnings came to €2.03 billion ($2.34Bln) down by around 11 percent on the 2019 figure despite the market challenges. Naturgy also completed negotiations with BlackRock, the world’s largest equity fund, to partner with the Spanish company in a joint venture that will hold 49 percent of the Medgaz subsea natural gas pipeline from Algeria to Spain. The deal provides Naturgy with joint control over the company without enlarging its operations or investing any additional sums.
“For us, this deal is very attractive. BlackRock coming aboard the investment vehicle attests to the appeal and uniqueness of Medgaz as strategic infrastructure,” said Naturgy Chairman Francisco Reynés. Algerian state energy company Sonatrach holds the majority 51 percent of the shares in Medgaz, which is 210 kilometres in length and has capacity to transport 8.2 billion cubic metres per annum of natural gas.
July 21 (LNGJ) - European natural gas prices and LNG indicators moved close to monthly lows as the UK National Balancing Point price and the Dutch Title Transfer Facility price dropped to the equivalent of $1.55 per million British thermal units and $1.60 per MMBtu respectively. One of the next LNG cargoes scheduled to arrive in the UK is on July 27 when the 216,200 Q-Flex vessel “Al Gattara” will discharge its load at the South Hook terminal at Milford Haven, according to the port authorities.
July 20 (LNGJ) - Fincantieri Bay Shipbuilding, based in Wisconsin near the Sturgeon Bay Ship Canal and Lake Michigan, has hosted a ceremonial keel-laying for the construction of an LNG bunkering barge for refuelling ships in Florida. The yard is a subsidiary of Italian shipbuilding group Fincantieri.
The 5,400 cubic metres capacity barge is being built for US company Polaris New Energy and will be named the “Clean Canaveral”. LNG will be sourced from a small-scale liquefaction plant in Jacksonville, Florida. “We are pleased to see the completion of this significant construction milestone,” said Polaris New Energy Senior Vice President Thomas Sullivan.
July 17 (LNGJ) - The HAM Group of Spain, a European market leader in LNG and compressed natural gas fuel retailing with a network of over 70 filling stations, has opened a permanent LNG-CNG station at the busy French border crossing near the Basque town of Irún.
The group’s subsidiary, HAM Criogénica, has opened the 24-hour Antxotxipi Kalea station next to the AP-8, also known as the Cantabrian Highway, the Basque Country coastal road linking Irún to Bilbao. “The service station has a double LNG pump for trucks and heavy vehicle, and a double CNG pump for supplying passenger cars, light vehicles and trucks,” said the company.
July 16 (LNGJ) - Qatar Gas Transport Co., the fleet operator for Qatargas, posted a 15.5 percent increase in first-half net profit to 550 million Qatari riyals ($151M), up from the 476M riyals ($131M) recorded in the same six months last year. Additional revenues came from the strategic acquisition of the remaining 49.9 percent stakes in four Q-Flex LNG vessels in October 2019 by QGTC, also known as Nakilat. First-half revenues came to 2.02 billion riyal ($555.2M), an increase of 11.3 percent.
“In these uncertain times, Nakilat remains committed in delivering value for our shareholders as we expand our international reach to meet the growing demand for energy transportation,” said Chief Executive Abdullah Al Sulaiti. “The company’s sustained financial performance bears testament to our ongoing strategy of enhancing efficiency, rationalizing expenditures and reducing operational and administrative costs,” added Al Sulaiti.
July 16 (LNGJ) - Australian LNG shipments in June were down by eight compared with May, primarily due to scheduled maintenance at the Gorgon plant on Barrow Island in Western Australia. “Australian projects shipped 5.9 million tonnes (85 cargoes) in June, compared with 6.4MT (93 cargoes) in May,” said a report by consultants EnergyQuest.
“In June there were still a large number of cargoes that have had their delivery delayed. An estimated 33 Australian cargoes loaded during June anchored offshore or steamed slowly awaiting final destination orders after 41 were seen to be delayed during May,” added the report. Deliveries to major North Asian markets were lower compared with June 2019. Australian projects delivered a total of 70 cargoes to China, Japan and Korea in June, down from 77 cargoes a year earlier.
July 15 (LNGJ) - Gazprom, the main pipeline gas competitor to LNG in Europe and China, said first-quarter gas sales revenues dropped by 24 percent to 1.73 trillion roubles ($24.52 billion) compared with 2.29 trillion roubles ($32.3Bln) in the same period in 2019. The company reported a first-quarter net loss of 116 billion roubles ($1.64 Bln), compared with a net profit of 536Bln roubles ($7.5Bln) in the 2019 first quarter.
Overall natural gas sales dropped by 13 percent to 138.1 billion cubic metres from 158.9 Bcm in the 2019 first quarter. Gazprom said pipeline gas sales to Europe and China dropped to 51.6 Bcm in the first quarter from 62.4 Bcm in the same three months of 2019.
July 14 (LNGJ) - Chinese natural gas imports rose by 10.2 percent in June by pipelines and as liquefied natural gas and amounted to 8.33 million tonnes compared with 7.56MT in June 2019. For the first half of the year through June 2020, China’s natural gas imports were up 3.3 percent to 48.36MT, according to data from the General Administration of Customs. China imports LNG from all the main producers and pipeline gas from Myanmar, Turkmenistan, Kazakhstan, Uzbekistan and Russia.
July 13 (LNGJ) - GasNet, the natural gas distribution company of the Czech Republic, launched its first mobile public self-service LNG filling station. The station is located in Klecany near Prague and is a short distance from the D8 motorway. “This modern and environmentally friendly technology is available 24/7 to truck drivers,” said GasNet.
“LNG truck drivers can now refuel in Klecany in the Volvo Group Truck Centre Prague-North. The public gas station is only 8km from the capital, is self-service and open 7 days a week, 24 hours a day,” added GasNet. “We are convinced that LNG trucks will increase rapidly in our country, at a similar pace as in the case of compressed natural gas,” stated Thomas Merker, GasNet's Chief Financial Officer.
July 13 (LNGJ) - Novatek, the Russian natural gas company and operator of the Yamal LNG export plant in northern Siberia, said preliminary second-quarter 2020 natural gas sales volumes, including LNG, came to 16.90 billion cubic metres, a drop of 9.9 percent compared with the same three months of 2019.
Natural gas volumes sold in the Russian Federation in the second quarter totaled 14.43 Bcm, whereas LNG volumes sold on international markets amounted to 2.47 Bcm. “The decrease in sales volumes on international markets was due to the decrease of Yamal LNG shareholders’ share, including Novatek’s share, of LNG volumes sold on the spot market, and a corresponding increase of Yamal LNG direct sales under long-term contracts,” explained the Russian company.
July 13 (LNGJ) - The 266,000 cubic metres capacity Q-Max carrier, “Umm Slal”, is scheduled to deliver a cargo on July 19 to the UK South Hook terminal in Milford Haven from Ras Laffan in Qatar, according to port authorities. That’s as European LNG values have dropped since last week. The UK’s National Balancing Point natural gas price was last at the equivalent of $1.75 per million British thermal units while the main Continental European benchmark price, the Dutch Title Transfer Facility, was at the equivalent of $1.80 per MMBtu.
In other European deliveries, the 142,600 cubic metres capacity “LNG River Niger” was scheduled to discharge a shipment on July 19 at the Montoir-de-Bretagne terminal in Western France from the Bonny Island plant in Nigeria. The 140,000 cubic metres capacity “Arctic Voyager” was expected to unload a cargo on July 26 at the Revithoussa terminal in Greece from the Hammerfest plant in Norway.
July 10 (LNG) – The US shipped seven LNG cargoes in the past week, according to the weekly natural gas report from the Energy Information Administration. Three cargoes departed from Sempra Energy’s Cameron facility in Louisiana, two from Cheniere Energy’s Sabine Pass plant, also in Louisiana, while one departed from Cheniere’s Corpus Christi facility in Texas and one from the Cove Point plant in Maryland. None were lifted from the Freeport plant in Texas nor from the Elba Island facility in Georgia.
The EIA also reported that net injections of working gas into storage totaled 56 billion cubic feet for the previous week compared with the five-year average of 68 Bcf and last year's net injections of 83 Bcf during the same week. Working natural gas stocks totaled 3,133 Bcf, which is 454 Bcf more than the five-year average and 685 Bcf more than last year at this time. “The average rate of injections into storage is 15 percent higher than the five-year average so far in the refill season (April through October),” added the EIA.
July 9 (LNGJ) - BP signed a supply agreement for regasified LNG with China’s ENN Group in support of the growing energy needs of the southern province of Guangdong. Under the terms of the agreement, BP will provide ENN with 300,000 tonnes per annum of pipeline gas regasified from LNG for a period of two years from January 2021. The LNG will be received and regasified through the receiving terminal of Guangdong Dapeng LNG where BP holds regasification capacity.
“This is the first time an international energy company will regasify LNG through a Chinese terminal and also directly supply gas to customers,” said Dev Sanyal, executive vice president of BP Gas. “We look forward to further cooperating with ENN and contributing to China’s ever growing energy demand,” added Sanyal.
July 9 (LNGJ) - The Italian Adriatic LNG import terminal is running an auction for five cargo slots, four for August 2020 and one for September 2020. The deadline for the submission of offers is the 13th of July at 14:30 Central European time.
The unloading slot dates and maximum capacities are as follows: 13-16 August, 217,000 cubic metres capacity; 17-20 August, 145,000 cbm; 21-24 August, 217,000 cbm; 25-28 August, 145,000 cbm; 2-5 September, 217,000 cbm. Offer forms should be submitted to
July 9 (LNGJ) - Shipping charter rates for LNG carriers in the spot market are little changed over the past week. Rates were quoted at an average of between $33,000 per day and $35,000 per day West of Suez and at rates of between $29,000 per day and $32,000 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters were steady for the most modern vessels and were seen at rates of around $44,000 per day.
July 8 (LNGJ) - The US Henry Hub natural gas spot price averaged $1.63 per million British thermal units in June, the lowest inflation-adjusted price going back to at least 1989, as a result of low demand, the Energy Information Administration said in its short-term outlook. However, the EIA expects falling production will put upward pressure on natural gas prices through the end of 2021. It forecasts that Henry Hub spot prices will average $1.93 per MMBtu in 2020 and $3.10 per MMBtu in 2021.
July 7 (LNGJ) - GTT Training Ltd., a subsidiary of the French LNG storage tanks technology company, has agreed a partnership with Wavelink Maritime Institute (WMI) of Singapore. This partnership will facilitate the delivery of GTT Training’s LNG industry-related courses at WMI’s training facility in Jurong in Singapore. The partnership agreement includes the installation of GTT Training’s Liquid Gas Handling Simulator “G-SIM” at the Wavelink Maritime Centre and the sharing of expertise.
“We are very pleased to be able to announce this partnership with WMI as it will combine the resources and expertise of two leading institutions, enabling us to better assist the industry in providing the trained personnel they require to meet the increasing demand on vessels that carry and use LNG in the region,” said Ray Gillett, Director and General Manager of GTT Training.
July 6 (LNGJ) - European LNG price indicators were still edging higher but were not moving much up above the $2.00 per million British thermal units level and remained weak overall. The UK’s National Balancing Point natural gas price was at the equivalent of $1.90 per MMBtu while the main Continental European benchmark price, the Dutch Title Transfer Facility, was higher at the equivalent of $2.00 per MMBtu. In continuing deliveries, the 210,100 cubic metres capacity vessel “Onaiza” is scheduled to arrive with a cargo on July 13 at the UK South Hook terminal in Milford Haven from Ras Laffan in Qatar.
July 3 (LNGJ) - Finnish state-owned energy company Gasum, which has widespread gas assets in the Nordic region, has opened a new filling station for LNG and biogas distribution at Lieto in southwest Finland. This is the country’s eighth natural gas filling station for trucks.
Gasum has another 15 LNG and biogas stations in Sweden and one in Norway located in the capital Oslo. “Together with the gas filling station in Turku Harbor, the new station in Lieto strengthens the distribution of LNG and liquefied biogas for the needs of long-haul transport,” said Gasum.
July 3 (LNGJ) - China's import price index for liquefied natural gas rose this week, according to data from the Shanghai Petroleum and Natural Gas Exchange (SHPGX). The LNG index is for delivered cargoes, not including tax. The most recent quote for Cost, Insurance and Freight (CIF) delivered cargoes was given as 2,344 yuan ($331) per tonne, or $6.35 per million British thermal units, compared with the previous week’s price to June 24 of 2,308 yuan ($326) per tonne, or $6.25 per MMBtu.
The index, jointly developed by a monitoring centre under the General Administration of Customs and the SHPGX, was launched on October 16, 2019, and offers CIF cargo price guidance for Chinese importers.
July 2 (LNG) - Brunei LNG has awarded a 10-year contract to local company SPHI Marine to supply three tugboats and one anchor-handling tug to support shipping operations at the Lumut facility. SPHI said the contract included a five-year extension option.
The Brunei-owned and flagged vessels will replace the tugs of Dutch firm Kotug, which are currently servicing the LNG plant. Kotug said in a separate statement that it would support SPHI’s contract as part of a technical partnership deal signed between the two companies.
July 1 (LNGJ) - Sonatrach, the Algerian state energy company and operator of two LNG export plants on the North African coast, signed its acceptance of the Touat gas project in southwest Algeria being passed to Groupement Touat Gaz (GTG), a joint venture between Sonatrach and Neptune Energy of the UK.
Operation of the facility had previously been in the hands of the project contractor, Spain’s Técnicas Reunidas, since the first gas was sent into the Algerian domestic gas pipeline network in September 2019. The Touat facility is located around 1,400 kilometres southwest of Algiers in the Sahara Desert and comprises 19 natural gas development wells, a gas treatment plant for gas and stabilised condensate with a gathering network with pipelines.
June 30 (LNGJ) - Royal Dutch Shell said in an update to the second quarter 2020 outlook for its Integrated Gas division that production is expected to be between 880 and 910 thousand barrels of oil equivalent per day and LNG liquefaction volumes are expected to be between 8.1 million tonnes and 8.5 million tonnes.
“Trading and optimisation results are expected to be below average,” said Shell. “As previously communicated, more than 90 percent of our term contracts for LNG sales in 2019 were oil price linked with a price-lag of typically 3-6 months. Consequently, the impact of lower oil prices on LNG margins became more prominent from June onwards,” it added.
May 29 (LNGJ) - LNG is still heading for the UK even as European LNG price indicators remain flat. The UK’s National Balancing Point natural gas price was at the equivalent of $1.75 per million British thermal units while the main Continental European benchmark price, the Dutch Title Transfer Facility, was lower at $1.65 per MMBtu.
The 147,200 cubic metres capacity vessel “Arctic Lady” is scheduled to arrive on July 1 at the UK Isle of Grain import terminal in Kent from the Equinor-operated Hammerfest plant in Northern Norway. The 261,700 cubic metres capacity Q-Max carrier, “Al Samriya”, will deliver a cargo on July 5 to the UK South Hook terminal in Milford Haven from Ras Laffan in Qatar.
June 26 (LNGJ) - South Korean shipyards are expecting new firm LNG carrier orders after Qatar booked construction berths, but no new orders have been received in 2020 for oil and gas platforms or offshore facilities, reflecting the depressed state of the energy market. Hyundai Heavy Industries has received no orders for offshore facilities since October 2018 when it signed a $450 million deal with a US oil developer LLOG Exploration to build a floating production system, according to the latest data.
Daewoo Shipbuilding & Marine Engineering Co. is also devoid of orders since December 2019 when Chevron Corp. booked a $200M semi-submersible floating production unit. The third main builder, Samsung Heavy Industries, has failed to clinch any new orders since April 2019. SHI has an order backlog of three offshore plants, one FPSO, one floating production platform and one floating LNG unit.
June 25 (LNGJ) - German LNG Terminal, the company developing an onshore facility at Brunsbuettel on the Elbe River south of Hamburg, has selected a Spanish-German joint venture comprising Cobra Instalaciones y Servicios SA and Sener Ingeniería y Sistemas SA of Spain and Bonn-based TGE Gas Engineering GmbH for the final phase of the engineering, procurement and construction contract award.
“This final phase will consist of a comprehensive value-improvement exercise and detailed price actualization to make the project more cost efficient to conclude a binding EPC contract by the end of 2020,” said German LNG Terminal. “It is expected that the detailed design and engineering work, necessary to develop purchase orders of long-lead products, can then be started soon after the finalization of the contract,” it added. German LNG Terminal is a joint venture involving Dutch gas network company Gasunie BV, global Dutch storage company Royal Vopak and Germany’s Oiltanking GmbH, a subsidiary of Marquard & Bahls AG of Hamburg.
June 25 (LNGJ) - Poland signed contracts worth $483 million to expand the LNG import terminal at Swinoujscie on the Baltic Sea coast to 6 million tonnes per annum of capacity from the current 3.7 MTPA by 2023. The contract was signed on the Polish side by network operator Gaz-System and the ports of Szczecin and Swinoujscie and on the engineering side by the two contractors, Porr AG of Germany and Bonn-based European LNG specialists TGE Gas Engineering.
State-run Poland Oil and Gas Company has said it does not intend to extend its long-term pipeline gas supply contract with Russia’s Gazprom beyond 2022 when it expires.
June 24 (LNGJ) – The Chinese CIMC Raffles shipyard at Yantai in Shandong province has started building a second LNG-powered roll-on-roll-off ship for Sweden’s Wallenius Sol venture. The ice-class vessel is one of two on order and will have two Type-C LNG tanks with capacity of 685 cubic metres each.
The Gothenburg-based Swedish shipping company is a joint venture formed by Wallenius Lines and Svenska Orient Linien. Once delivered in 2021, the two vessels will enter into service in the Baltic Sea trading routes.
June 23 (LNG) - The board of Tellurian Inc., developer of the Driftwood LNG export project near Lake Charles in Louisiana, has named Charif Souki as Executive Chairman. Souki had been Tellurian’s non-executive Chairman since founding the company in February 2016 after he departed as Chief Executive of Cheniere Energy.
“I am re-engaging to provide additional support to Tellurian, a company I co-founded with Martin Houston, using personal and friends and family funds,” said Souki. “I am 100 percent committed to Tellurian’s success and will be working alongside our President and Chief Executive Meg Gentle, Chief Operating Officer Keith Teague, and the most experienced LNG team in the industry to get our first-class project constructed,” he added.
June 22 (LNGJ) –LNG supplier Nauticor, the Hamburg, Germany-based subsidiary of the Nordic energy company Gasum, has conducted the initial ship-to-ship LNG bunkering operation for the newbuild cruise ship “Iona”. The bunkering operation was conducted by Gasum’s bunkering vessel “Kairos” at the German port of Bremerhaven. The operation was the first ever ship-to-ship LNG bunkering in Bremerhaven.
The “Iona” is one of the world’s first LNG-fuelled cruise ships. The vessel is in the final outfitting phase at the German Meyer Werft shipyard. After the outfitting and sea trials have been completed, the vessel will join the fleet of P&O Cruises. The vessel is part of a series of vessels for the Carnival Corp. with their different brands.
June 22 (LNGJ) - LNG cargoes are pointing at North Asia with deliveries for July. The 155,300 cubic metres capacity carrier “LNG Jurojin” will deliver a cargo on July 1 to the Japanese Yokkaichi terminal, operated by Jera Co. Inc., from the US Sabine Pass plant in Louisiana, according to shipping data. The 174,100 cubic metres capacity vessel “Cesi Wenzhou” is scheduled to unload a cargo on July 4 at the Sinopec-owned onshore terminal in Tianjin in northeast China from the Australia-Pacific plant near Gladstone in Queensland.
The 174,000 cubic metres capacity carrier “Pan Europe” is due to arrive on July 10 at the Ningbo terminal in China owned by China National Offshore Oil Corp. from the Shell-operated Queensland Curtis plant in eastern Australia. The 174,000 cubic metres capacity vessel “GasLog Hong Kong” is scheduled to deliver a cargo on July 14 to the port of Tianjin from the Bonny Island plant in Nigeria.
June 19 (LNGJ) - OLT Offshore LNG, the owner and manager of the “FSRU Toscana” floating LNG terminal deployed 22 kilometres off the Mediterranean coast of Italy, has published the dates of its annual and multi-year auctions without expression of interest.
The auctions will be held from 1st to 3rd July 2020, as follows: 1st July 2020 – an auction for the allocation of the regasification capacity for the Gas Year 2020-2021; 2nd July 2020 - auction for the allocation of regas capacity for the Gas Year 2021-2022; 3rd July 2020 - auctions for the allocation of regas capacity for each Gas Year from 2022-2023 to 2033-2034. Further details are on OLT’s website www.oltoffshore.it
June 19 (LNGJ) - Cheniere Energy’s Corpus Christi LNG export plant in Texas has been given permission by regulators to start exports from a second jetty. “We grant the request for Corpus Christi Liquefaction to introduce hazardous fluids and, upon successful completion of those activities within design specifications, commence service for export from the East Jetty facilities,” said the Federal Energy Regulatory Commission.
The LNG plant is located on La Quinta Channel on the northeast side of Corpus Christi Bay and the first stage development comprises two Trains, each with 4.5 million tonnes per annum of capacity and a second stage will see a third Train coming on stream in 2021. A future third-stage development comprises seven mid-scale Trains, adding around 10 MTPA to the output.
June 18 (LNGJ) - China's import price index for liquefied natural gas rose in the week to June 17, according to data from the Shanghai Petroleum and Natural Gas Exchange (SHPGX). The LNG index is for delivered cargoes, not including tax. The most recent quote for Cost, Insurance and Freight (CIF) delivered cargoes was given as 2,647 yuan ($374) per tonne, or $7.17 per million British thermal units, compared with the previous week’s price to June 10 of 2,060 yuan ($291) per tonne, or $5.58 per MMBtu.
The index, jointly developed by a monitoring centre under the General Administration of Customs and the SHPGX, was launched on October 16, 2019, and offers CIF cargo price guidance for Chinese importers.
June 18 (LNGJ) - Shipping charter rates for LNG carriers in the spot market were unchanged from last week. Rates were quoted at an average of between $33,000 per day and $31,000 per day West of Suez and at rates of between $31,000 per day and $29,000 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters were steady for the most modern vessels and were seen at rates of around $43,000 per day.
June 17 (LNG) - Cheniere Energy, the largest US LNG exporter from its two plants at Sabine Pass in Louisiana and Corpus Christi in Texas, said it obtained commitments from 17 financial institutions for a $2.5 billion three-year delayed draw senior secured term loan with the ability to add further commitments from additional banks.
Proceeds from borrowings under the Cheniere term loan, along with cash on the balance sheet, are expected to be used to repay existing notes. Cheniere said the term loan will bear interest at a rate of London Interbank Offered Rate (LIBOR) plus a margin based upon the applicable credit rating. The closing of the Cheniere loan is expected to occur this month.
June 16 (LNGJ) - The first joint LNG cargo of Tokyo Gas and Hiroshima Gas Co. transported by Tokyo LNG Tanker Co. from the Sakhalin plant in the Russian Far East has arrived at the Hatsukaichi LNG terminal of Hiroshima Gas. This is the first joint shipment based on the LNG Transportation Agreement between Hiroshima Gas, Tokyo Gas and Tokyo LNG Tanker signed in February 2020 for a period of eight years through 2027.
The agreement was made possible with the cooperation of Sakhalin Energy, a long-term supplier to Hiroshima Gas and Tokyo Gas. “Hiroshima Gas and Tokyo Gas will continue to provide a stable supply of city gas and aim to further the usage of natural gas thorough the realization of a stable supply of energy that will be beneficial for the customers of both companies,” they said.
June 15 (LNGJ) - The Peru LNG plant at Pampa Melchorita directed most of its five cargoes to North Asia in May with only one being delivered to the Manzanillo terminal on the Pacific Coast of Mexico. The ships that lifted cargoes included the 155,000 cubic metres capacity carrier “Solaris”, the 155,000 cubic metres capacity vessel “Gaslog Seattle” and the 173,400 cubic metres capacity carrier “Valencia Knutsen”. They headed for China or South Korea. PeruPetro said the cargoes were priced on the Japan-Korea Marker at between $2.063 per million British thermal units and $2.068 per MMBtu.
June 12 (LNGJ) – An accord has been signed for joint development of LNG bunkering facilities at the Yantian deepwater port near Shenzhen city in the southern Chinese province of Guangdong. The signatories to the joint venture agreement include the Shenzhen municipality, Chinese energy major PetroChina, the Shenzhen Gas Group and Yantian Port.
In addition to LNG storage at Yantian, the project also involves the construction of LNG bunkering vessels for ship-to-ship operations. “The long-term goal of the project is to supply 2 million tonnes per annum of LNG bunker fuel,” said a statement.
June 11 (LNGJ) - Shipping charter rates for LNG carriers in the spot market are little changed over the past week. Rates were quoted at an average of between $33,000 per day and $31,000 per day West of Suez and at rates of between $31,000 per day and $29,000 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters were steady for the most modern vessels and were seen at rates of around $43,000 per day.
June 10 (LNGJ) - Two Qatari LNG cargoes are headed for the UK as the European natural gas price recovery stalls. The 217,000 cubic metres capacity vessel, the “Al Kharsaah”, is scheduled to arrive on June 15 at the UK Dragon terminal in Milford Haven with a Qatargas cargo. The 266,000 cubic metres capacity Q-Max carrier, the “Bu Samara”, is then due on June 18 with a Qatari shipment for the South Hook facility in the Welsh port.
LNG cargoes are still pointing at the UK and Europe despite the low-price environment. The UK’s National Balancing Point natural gas price fell to the equivalent of $1.50 per million British thermal units from $1.75 per MMBtu the previous day. The Continental European benchmark price, the Dutch Title Transfer Facility, dropped to the equivalent of $1.60 per MMBtu from $1.90 per MMBtu.