This week

ExxonMobil upstream and production
price report casts light on projects

ExxonMobil is moving ahead with LNG and domestic supply projects in nations like Mozambique, Qatar, Papua New Guinea and the US and has given an overview and update on current upstream and development activities, including global production prices of natural gas.

Latest News
The US Magnolia LNG export project in Louisiana, which recently agreed to supply cargoes to a new terminal in Vietnam planned for the Mekong Delta, has agreed…
Shipping spot charter rates for the liquefied natural gas market have reached a high for 2019 with quotes from brokers of around 100,000 per day or more.
LNG spot cargo prices were flat over the past week with higher values quoted for December volumes with the second half of December window priced at $6.500…
Equinor, the Norwegian energy company and LNG plant operator said it was awarded exploration acreage in the Northern Carnarvon Basin offshore Western Australia as upstream activities continue…
MISC Berhad, the Malaysian shipping line with a liquefied natural gas carrier fleet of more than 30 vessels, said it had signed time charters for two newbuild…
The Rudong liquefied natural gas import terminal in the eastern Jiangsu Province of China and with LNG links to Canada is undergoing repairs after an accident and…
Qatar Petroleum and ExxonMobil are celebrating the 10th anniversary of the South Hook LNG import terminal that created an “energy bridge” from the Middle East to the…
Intercontinental Exchange, the leading operator of global exchanges and clearing houses and energy and natural gas pricing and derivatives, said the Dutch Title Transfer Facility, the main…
Japanese spot liquefied natural gas cargoes delivered in September cost $5.20 per million British thermal units less than in the same month a year ago, though just…
Novatek, the Russian operator of the Yamal liquefied natural gas plant at Sabetta in northern Siberia, said it was in talks to trans-ship its cargoes from Norway…

Adriatic LNG tender

Dec 6 (LNGJ) - Adriatic LNG, the offshore import terminal owned by Qatar Petroleum and ExxonMobil and with Italian gas grid operator Snam S.p.A. as a shareholder, has published a tender for the winter peak-shaving service to supply one LNG cargo with quantities of between a minimum of 60,000 and a maximum of 70,000 cubic metres.

   The Italian Ministry of Economic Development said it would use the regasification terminal for peak-shaving during any high natural gas demand period. “The tender will close at 12.30pm on December 17 and LNG will have to be unloaded at the Terminal in one of the available slots: January 2-5, January 14-17 and Jan 30-Feb 2,” said a statement. The cargo will help cover Adriatic LNG’s contribution to the national gas system to help guarantee security of supplies in Italy.

Malaysians order ships

Dec 6 (LNGJ) - French LNG storage technology firm GTT received an order from the South Korean Samsung Heavy Industries shipyard for tanks for two new LNG carriers on behalf of Malaysian ship-owner MISC Group.

Each vessel will have capacity of 174,000 cubic metres and will be fitted with the GTT Mark III Flex-plus membrane containment system when delivered in the first quarter of 2023. “This new order from our long-term partners SHI and MISC is proof of our mutual trust and the performance of our technologies,” said Philippe Berterottière, GTT’s Chairman and Chief Executive.

Osaka Gas in US buy

Dec 3 (LNGJ) - Osaka Gas, the Japanese utility and LNG buyer, has completed the purchase of a US upstream oil and gas firm, Sabine Oil and Gas Corp. from its parent company Sabine Holdings. As part of the sale, Osaka Gas said its US subsidiary would retain the current Sabine executive team and employees.

   Osaka Gas President Takehiro Honjo said he welcomed the acquisition of US expertise in shale development. “While Osaka Gas has participated in the Freeport LNG liquefaction project and independent power projects in the United States, we intend to expand our US upstream business by enhancing our capabilities with Sabine Corp's excellent operatorship,” stated Honcho.

Aboriginal LNG deals

Dec 2 (LNGJ) - Woodside Petroleum said it signed new agreements with the Aboriginal groups in Western Australia linked to its expansion plans on the Burrup Peninsula for its Pluto and North West Shelf LNG facilities.

   “Woodside has operated on the Burrup for 35 years, and these agreements demonstrate our ongoing commitment to the successful co-existence of heritage and industry and support for long-term, positive outcomes for Aboriginal communities,” said the LNG producer.

   The first agreements were signed in 1998 with NWS LNG. “The updated commitment includes increased funding for a number of programs and benefits that are being delivered under the existing agreement. Additional support has also been made available for a number of capacity building and social investment programs,” added Woodside.

Russia-Ukraine talks

Nov 29 (LNGJ) - The Russian and Ukrainian energy ministries and state gas companies are still meeting in Vienna in Austria to discuss Russian natural gas supplies to Ukraine and onwards to Europe. The existing supply deal between the two nations expires on December 31. The two sides have agreed to intensify talks in the coming days, having failed to achieve results after several previous rounds.

   Russia was represented by the Minister of Energy of the Russian Federation, Alexander Novak, and Gazprom Chairman Alexey Miller. On the Ukrainian side were Minister of Energy Alexey Orzhel and executives of the Naftogaz Ukrainy company and the gas transmission system operator of Ukraine.

   “An exchange of proposals on resolving issues facing the parties took place, and agreements were reached to intensify work in a bilateral format in the coming days,” said Gazprom.

Gasum fuels cruise ship

Nov 28 (LNGJ) - The Nordic LNG supplier, Gasum of Finland, has carried out its first ship-to-ship bunkering involving a cruise ship. The operation took place at the Finnish Meyer Turku shipyard in the port of Turku and involved the bunkering vessel “Coralius” and Carnival Corp.’s newbuild “Costa Smeralda”. Gasum’s bunkering vessel has 5,800 cubic metres of capacity and began operating in 2017, supplying LNG fuel in the North Sea and the Skagerrak areas. “The ‘Coralius’ allows us to perform ship-to-ship bunkering to different types of vessels. We are happy that this now includes a cruise ship,” said Gasum.

K-Line LNG fuel deal

Nov 28 (LNGJ) - Kawasaki Kisen Kaisha, the Japanese shipping company known as K-Line, said it signed a ship management agreement for the newbuild LNG bunkering vessel owned by FueLNG and set to operate in the Port of Singapore. FueLNG is a bunkering joint venture between Singapore’s Keppel Offshore and Marine Ltd and Shell Eastern Petroleum.

   “We signed a ship management contract for the 7,500 cubic metres capacity LNG fuel supply ship owned by FueLNG,” said K-Line. “After the ship is delivered to FueLNG in the second half of 2020, it is scheduled to begin service as the first LNG fuel supply ship in Singapore, the world's largest fuel supply base,” added K-Line, whose own fleet contains LNG carriers, Ro-Ro ships, tankers and container vessels.

Indonesia LNG tender

Nov 27 (LNGJ) - The Indonesian Tangguh LNG plant, operated by BP of the UK, has issued a first-quarter 2020 sell tender closing on November 28 for five cargoes to be delivered on an ex-ship (DES) basis whereby the buyer receives the cargoes shipped to an agreed port of arrival. The five cargoes on offer are scheduled to be loaded between January and March 2020. The loading dates are: January 16-20, January 25-29, February 20-24, March 6-10 and March 18-22.

Burckhardt US takeover

Nov 26 (LNGJ) - Swiss company Burckhardt Compression, whose LNG offerings include its Laby brand of compressors and boil-off gas solutions, has acquired a US field services firm, the Arkos Group, by purchasing the 60 percent of Arkos it did not already own. The Arkos workforce numbers 250 employees.

   Burckhardt initially acquired a 40 percent interest in Arkos Group in December 2015. “With the purchase of the remaining ownership of Arkos, Burckhardt Compression together with Arkos Field Services will be the only independent one-stop provider for equipment and service in the upstream, midstream and downstream business,” said Burckhardt.

   “The US has the world's largest installed base of reciprocating compressors,” it noted. The previous estimate of Burckhardt’s full-year sales for fiscal year 2019 ranged between 600M Swiss francs ($601M) and 640M francs and with the acquisition will increase by 20M-30M francs.

UK firm in NY truce

Nov 25 (LNGJ) - National Grid, the UK network operator and owner of the Isle of Grain LNG import terminal in Kent, has received a boost for its US natural gas business by reaching an agreement with the State of New York to immediately lift a moratorium on connecting downstate customers.

   “This agreement also provides the necessary framework for resolving the longer-term energy supply issues,” said the UK company. “Within three months, National Grid has committed to present options to meet New York's long-term gas supply needs,” it added in reference to the possible construction of a new pipeline backed by National Grid.

   The Northeast Supply Enhancement project of Williams Company would transport about 400 million cubic feet per day of gas from Pennsylvania to New York, enough to supply about 2.3 million homes.

Magnolia LNG extension

Nov 25 (LNGJ) - LNG Ltd, the Australian company developing the US Magnolia project in Louisiana and with plans to export cargoes to Vietnam, has extended the validity period of its current binding engineering, procurement and construction (EPC) contract with KBR Inc. of the US and SK Engineering and Construction of South Korea. The lump-sum turnkey contract worth US$4.62 billion is now valid through June 30, 2020, for the liquefaction plant with planned output of 8.8 million tonnes per annum. LNGL said the installed cost per tonne of the EPC contract is US$525.

OMV-Gazprom LNG plan

Nov 22 (LNGJ) - OMV AG of Austria, the energy and utility company, plans to cooperate on LNG with Gazprom after the Russian natural gas giant increased deliveries of pipeline gas to the Austrians for a fifth straight year. For the period from January 1 to November 21, 2019, Gazprom delivered 12.7 billion cubic metres to Austria, which was 2.8 percent more than in all of 2018 when deliveries came to 12.3Bcm.

OMV is one of the five European corporate investors in the Nord Steam II project, the second Baltic pipeline from Russian to Germany and then onwards to other European Union nations carrying 55 Bcm of pipeline gas per annum. The latest Austrian gas delivery details emerged at a meeting in St Petersburg between Alexey Miller, Chairman of Gazprom, and OMV Chief Executive Rainer Seele.

“Special attention was paid to the implementation of the Nord Stream II project,” said a Gazprom statement on the talks. “Furthermore, potential cooperation in the LNG segment under the Memorandum of Understanding first signed in June 2019, was also discussed at the meeting,” it added. OMV along with France’s Engie, Royal Dutch Shell and Germany’s Uniper and Wintershall signed an agreement with Gazprom to provide financing for 50 percent of the total 9.5 billion euros ($10.5Bln) cost of Nord Steam II.

Teekay-Shell LNG deal

Nov 21 (LNGJ) - Shell Global Downstream LNG said it signed a deal with Teekay Offshore Logistics to supply liquefied natural gas for two Teekay LNG-powered shuttle tankers in Europe. Teekay’s 130,000-deadweight ton newbuilds will operate on a dual-fuel basis. The Teekay tankers are being built by Samsung Heavy Industries in South Korea.

   “We are excited to add another tanker customer to the growing number of organizations adopting LNG,” said Tahir Faruqui, general manager of Shell Global Downstream. Idar Hillersoy, President of Teekay Offshore Logistics, said that having Shell as a strategic partner provides the company with a long-term LNG fueling solution. The Teekay vessels will be delivered in 2019 and 2020 and begin operations under partnership agreements with Norwegian energy company Equinor.

Centrica trading update

Nov 21 (LNGJ) - Centrica, the UK utility and energy company with an LNG import portfolio, said in a trading update that it had delivered growth in total customer accounts, higher margins and returns in energy supply in North America as well as strong trading and optimisation in Europe, offset by lower European natural gas prices.

   “The company has also experienced lower near-term European wholesale gas prices, although 2019 Exploration and Production earnings are largely protected by forward hedging,” said Centrica, which has US LNG volumes under a 20-year contract with Cheniere Energy and supplies booked from Mozambique. The company expects full-year adjusted operating cash flow to be in the lower half of the targeted £1.8-£2.0 billion ($2.4Bln-$2.6Bln) range and year-end net debt to be within the targeted £3.0-£3.5Bln range.

Malaysia EGCS ban

Nov 19 (LNGJ) - Malaysia has become the latest country to prohibit ships from discharging wash water from open-loop exhaust gas cleaning systems, also known as scrubbers, while operating in its waters. The systems are one of the options to meet the International Maritime Organization’s 0.5 percent sulfur cap from January. Malaysian energy company Petronas has emerged as new Southeast Asian bunker market participants and is also offering LNG as fully compliant fuel from 2020 at its terminals at Pengerang in Johor and Sungai Udang in Malacca. Ships entering Malaysian waters have been advised to change over to low-sulfur fuel oil or to closed-loop scrubbers.

   Open-loop scrubbers spray exhaust with seawater, causing sulphur oxide to react and form sulphuric acid. However, EGCS manufacturers contend that the natural alkaline qualities of seawater neutralizes the acid, while opponents argue that the discharge is harmful to the marine environments. Malaysia is the latest to ban open-loop scrubbers following the same move by China, Singapore, the United Arab Emirates and Panama.

Awilco LNG pay-out

Nov 15 (LNGJ) - Awilco LNG, the Norwegian shipping company with the smallest fleet in the business numbering two vessels, said the 156,000 cubic metres capacity carrier “WilForce” had completed repairs at a shipyard in Singapore after it was involved in a collision with another ship off the Asian city-state on May 30, 2019. “Loss-of-hire insurance of US$65,000 per day compensated for some of the lost time-charter hire in the period,” said Awilco.

   “Awilco LNG has a substantial claim towards the ship responsible for the collision. Settlement and collection of the claim is expected to take some time,” added the company. Awilco made its statement as it reported a narrowed loss of $1.1 million in the third quarter compared with $11.4M of losses in the same three months a year ago and a $8.6M loss in the second quarter of 2019. Awilco said its second carrier, the 156,000 cubic metres capacity “WilPride”, was chartered in July 2019 to an oil and gas major for eight months until March 2020.

JGC contracts update

Nov 12 (LNGJ) - JGC Corp., the Japanese LNG engineering and construction company, has given updates on its most prominent contracts for LNG Canada with Fluor Corp. of the US and for Mozambique LNG, also with Fluor and TechnipFMC. “Engineering and procurement are proceeding on schedule and the fabrication of modules has commenced,” said JGC of the Canadian joint venture led by Royal Dutch Shell and located near Kitimat on the Pacific Coast of British Columbia. “Preparation of the construction site is proceeding according to plan,” added JGC.

   The Japanese company also reported progress on the Mozambique Rovuma LNG joint venture for the Area 4 resources offshore the southeast African nation. JGC said the main clients for the Mozambique contract are ExxonMobil, Eni of Italy and China National Petroleum Corp. “The final investment decision for the lump-sum contract is expected during 2020 with production to begin in 2025,” said JGC. “Strict risk profiling is reflected in the contract and we have made arrangements with dependable experienced sub-contractors in the Middle East and Africa,” stated JGC.

Saipem-Daewoo LNG pact

Nov 11 (LNGJ) - Italian energy engineering company Saipem and South Korea’s Daewoo Engineering and Construction Co. have signed a strategic agreement for cooperation on targeted worldwide opportunities with specific emphasis on the LNG sector.

   Daewoo in joint venture with Saipem have already been nominated as preferred bidders for the engineering, procurement and contract for the Nigeria LNG Train 7. Saipem and Daweoo said the strategic alliance will enhance and capitalize on synergies and establish a key player capable of delivering in the global LNG construction sector.

   “This strategic agreement with Daewoo will leverage our distinctive competencies in high-end projects, particularly in LNG, and our proven operational experience to support the corporate goals of our customers around the world,” said Maurizio Coratella, Chief Operating Officer of the Saipem Onshore Engineering Division.

Korean LNG and power

Nov 7 (LNGJ) - South Korean conglomerate HDC Group is planning a joint venture with Hanwha Energy Corp. for a natural gas-fired power plant in the southeast coastal city of Tongyeong and using LNG imports. HDC plans to build and operate the 1,000-megawatt gas-fired plant and would also construct a 200,000 cubic metres capacity LNG storage tank.

  Under the deal, Hanwha will supply LNG for the plant and both parties would develop the project jointly with 1.4 trillion Korean won ($1.2 billion) of investment. HDC was awarded a government licence in 2013 to operate in the power sector. The group said the construction of the plant is expected to start in 2021 with commercial operations from 2024.

FSRU project banker

Nov 6 (LNGJ) - Epik Co, a South Korea-based liquefied natural gas project company, said it had appointed Australia and New Zealand Banking Group (ANZ) to serve as its financial adviser for the Port of Newcastle GasDock LNG import terminal venture in New South Wales.

   ANZ will provide debt and equity services for Epik’s project involving the deployment of a Korean-built floating storage and regasification unit and onshore infrastructure. A final investment decision is expected in mid-2020. The Korean regasification project is the second proposed for the state of New South Wales with another venture planned for Port Kembla, south of Sydney, and supported by Japanese companies.

LNG firms in Asia tour

Nov 4 (LNG) - US Secretary of Commerce Wilbur Ross is leading a US Trade Mission to the Indo-Pacific Business Forum in Bangkok, Thailand, and subsequently to Indonesia and Vietnam from November 3-8. “This mission supports President Donald J. Trump’s goals of accelerating US commercial activity in the region, supporting job-creating export opportunities for American companies, as well as meeting the region’s needs for economic growth and development,” said Ross.

   Leading LNG, energy and engineering companies are in the US delegation. These include industry participants such as Bechtel Inc., AES Corp., Cheniere Energy, Magnolia LNG (Louisiana), Tellurian Inc. and Honeywell International.

Novatek stake sale boost

Oct 30 (LNGJ) - Russian natural gas company Novatek reported a 7.9 percent rise in nine-month revenues of 641.8 billion rubles ($10.5Bln) and a 14 percent jump in gross earnings to 338.3Bln rubles ($5.30Bln) compared with the 2018 period. “This was largely due to an increase in LNG sales volumes and our domestic average natural gas sales price, which was offset by a decrease in hydrocarbons sales prices on international markets,” said Novatek.

   Profit attributable to shareholders in the third quarter rose eight-fold to 370.0Bln rubles ($5.79Bln) from 45.90Bln rubles ($775 million) and in the nine months period was up seven-fold to 820.9Bln rubles ($12.85Bln). “Our profit was significantly impacted by the recognition of a net gain on disposal of a 10 percent and a 30 percent participation interests in the Arctic LNG 2 project in March and July 2019, respectively. Taken together these amounted to 675.0Bln rubles ($10.56Bln),” said Novatek.

   Excluding the effect from the disposals of stakes in subsidiaries and joint ventures, as well as foreign exchange differences, Novatek’s normalized profit in the third quarter totaled 48.5 billion rubles ($759M) and 178.6Bln rubles ($2.7Bln) in the nine-month period.

MODEC LNG contract

Oct 30 (LNGJ) - MODEC Inc. of Japan said it signed a contract with ConocoPhillips (Australia) to provide a Floating Production Storage and Offloading (FPSO) vessel for the Barossa field, offshore northwest Australia that will supply the Darwin LNG plant. The Barossa FPSO is intended to produce gas and condensate from subsea wells supply Darwin via a gas pipeline.

   The Barossa FPSO is MODEC's largest Gas FPSO to date and will be able to export over 600 million standard cubic feet of gas per day as well as store up to 650,000 barrels of condensate for export. “It has been designed to withstand a 100-year cyclone event at a water depth of 260 metres and will be located some 300 kilometers northwest of Darwin,” said the company. The FPSO hull will be constructed in China at Dalian Shipbuilding Industry Co. (DSIC) in the northeast Liaoning Province.

LNG tours from Inpex

Oct 28 (LNG) - Japanese energy company Inpex Corp., a stakeholder in various LNG export projects such as the Ichthys venture at Bladin Point near Darwin and Prelude FLNG offshore northwest Australia, said it was introducing a shareholder benefit programme and would also be starting facility tours for shareholders, the first one being to an LNG import terminal in Japan.

   Owners of 400 shares to 800 shares would be eligible for up to 3,000 yen ($27.50) put on a pre-paid Japanese Quo card that can be used at restaurants, convenience stores, gas stations, book stores and hotels. Owners of 800 shares or more would be eligible for up to 5,000 yen on the Quo card.

   As regards the first facility tour, Inpex said this would be to the Naoetsu LNG Terminal in the city of Joetsu in Nigata Prefecture, as well as other sites in May 2020. “Shareholders will be selected by lot from among those holding at least 100 shares in Inpex as of December 31 each year and who apply to attend the tours,” said the company.

Eni earnings drop

Oct 25 (LNGJ) - Eni, the Italian energy company with stakes in projects such as Mozambique LNG, reported a 35 percent drop in third-quarter adjusted operating profit to 2.159 billion euros ($2.380Bln) from 3.304Bln euros in the same three months a year ago due to a weakened trading environment. The company said its quarterly worldwide natural gas sales fell 4 percent to 16.85 billion cubic metres from 17.47 Bcm in 2018. Eni’s quarterly LNG sales were unchanged at 1.85 million tonnes, though fell by 6 percent to 5.47MT in the first nine months of 2019.

   Eni’s natural gas sales in Italy fell 5 percent to 8.72 Bcm in the third quarter and amounted to 29.18 Bcm in the nine months period, mainly due to lower sales to wholesalers and hubs, partly offset by higher sales to the power and industrial sectors. Sales in other European natural gas markets amounted to 5.09 Bcm, in line with the 2018 quarter. Nine-month European natural gas sales fell 11 percent to 16.94 Bcm from 19.14 Bcm in 2018.

Teekay carriers unblocked

Oct 22 (LNGJ) - Teekay LNG, the fleet owner and operator of several Ice-class carriers serving the Yamal plant in Russia, has seen the vessels unblocked and is no longer caught up in a controversy over US sanctions imposed against units of Chinese shipping line COSCO for allegedly shipping Iranian oil.

   Under the US sanctions on Iran over its nuclear policies, the US Department of the Treasury’s Office of Foreign Assets Control included COSCO Shipping into the Iran-related Specially Designated Nationals (SDN) list, as well as Teekay LNG Partners. Teekay LNG, through its affiliates and joint ventures, owns four Arc7 LNG tankers conducting shipping services for the Yamal export plant.

   Russian natural gas company Novatek, operator of the Yamal plant, issued a statement saying Yamal LNG had received notification from TC LNG Shipping, the joint venture owning the Arc7 ice-class tankers, that the venture was no longer considered “blocked” under the US sanctions rules.

Japan-Vietnam LNG plan

Oct 22 (LNGJ) - JERA Co. Inc., the largest Japanese LNG buyer and thermal power plants owner, said it signed an accord with Vietnam Electricity for cooperation in the LNG value chain. Under the deal, JERA and the Vietnam power company would discuss opportunities for mutual collaboration.

   “Specific areas for discussion include joint procurement of LNG, joint development of LNG receiving terminal projects, cooperation in introducing LNG to EVN power plants and collaboration on shipping optimization,” they said.

   Together with its subsidiaries, Vietnam Electricity owns around 60 percent of the country's power generation capacity and supports its economic development. “JERA believes that strengthening its relationship with the leading energy company in Vietnam, a country which is expected to see increased demand for LNG, will greatly contribute to expanding business opportunities for both,” said the Japanese company.

Nakilat profits increase

Oct 21 (LNGJ) - Qatar Gas Transport Co., also known as Nakilat, posted nine-month results showing a 10.5 percent rise in net profits of 728 million Qatari riyals ($200M) versus 659M riyals during the same period of 2018.

   “Nakilat’s positive financial performance can be primarily attributed to better operational performance in managing its LNG and liquefied petroleum gas vessels,” said the company. It also realized higher revenues on additional income from the acquisition of two additional LNG carriers and one floating storage regasification unit (FSRU) in 2018, as well as higher LPG shipping rates worldwide.

   “Nakilat’s strong financial performance bears testament to the company’s ongoing emphasis and continuous improvements to remain competitive within the global energy transportation market, sustaining healthy cashflow and generating steady returns for our shareholders, said Nakilat Chief Executive Abdullah Fadhalah Al Sulaiti.

Petronas LNG trucking

Oct 21 (LNGJ) - LNG producer Petronas said it was starting an LNG truck-loading business to supply off-grid customers in Peninsular Malaysia. The truck-loading was scheduled to begin in the second half of 2020 at the Pengerang regasification terminal in Johor with four loading lanes. The Pengrang terminal has 5 million tonnes per annum of capacity and Petronas also operates a regas facility at Sungai Udang Island in Malacca with capacity to handle around 3.8 MTPA.

   Petronas produces LNG at its Bintulu plant and FLNG facilities and the truck-loading is aimed at broadening the small-scale market in Malaysia. “Petronas will take pride in offering alternative access to natural gas as the fuel of choice through its new LNG trucking business,” said the company.

Baker Hughes returns

Oct 18 (LNGJ) - Baker Hughes, a GE energy services and equipment company, has formally changed its name to Baker Hughes Company. It will now be known as Baker Hughes and on October 18 its Class A common stock will begin trading on the New York Stock Exchange under the symbol “BKR”.

   “Baker Hughes is uniquely positioned as an energy technology company with a diverse portfolio that spans the entire energy value chain,” said a statement, “The company’s new name and brand better reflect its current and intended principal business operations and diversified portfolio,” it added.

   BHGE was formed in mid-2017 through the merger of Houston-based energy services firm Baker Hughes Inc. and London-based LNG plant equipment maker GE Oil & Gas. BHGE and GE have been moving towards a separation for more than a year after announcing their split in June 2018.

New FERC nominee

Oct 17 (LNGJ) - The White House has nominated James P. Danly, of Tennessee, to be a member of the US Federal Energy Regulatory Commission, the regulator of LNG export plants and other oil and gas infrastructure. Danly would replace the late Kevin J. McIntyre who died in January 2019 before completing his five-term to June 2023.

   Danly is a lawyer by profession who has served as General Counsel of the FERC and before that as a member of an energy regulation and litigation law firm. He was a managing director of the Institute for the Study of War and is a former US Army officer who served two tours in Iraq, receiving a Bronze Star and Purple Heart.

Cameron Japan deal

Oct 17 (LNGJ) - Tohoku Electric Power, the Japanese utility based in the east coast city of Sendai, has signed an 18-year agreement to receive 200,000 tonnes of LNG per annum from the Sempra Energy-operated Cameron export plant at Hackberry in Louisiana linked to the Henry Hub benchmark price.

   The cargoes would be delivered to Tohoku from the start of 2022 with shipping included in the price under an agreement between the utility and Diamond Gas International, a subsidiary of Cameron project stakeholder Mitsubishi Corp. of Japan. Tohoku noted that the contract did not include any “destination restrictions”, allowing the utility to change the destination of the LNG and resell it to third parties in cooperation with Diamond Gas.

BHP gas plans update

Oct 17 (LNGJ) - BHP, the giant Australian energy and commodities company, said in a quarterly update that all its major projects under development were on track with the Ruby oil and gas project in LNG-producer Trinidad and Tobago given government approval in September. The company also gave details of Australian natural gas plans.

   “The Australian Bass Strait West Barracouta project is tracking to plan and is expected to achieve first production in the 2021 calendar year,” said BHP of the natural gas project offshore the state of Victoria. BHP noted that Victoria’s Minerva gas field reached end-of-field in September and production ceased at the Minerva Gas Plant. BHP agreed to sell its 90 percent interest in the Minerva Gas Plant to the Casino Henry joint venture after the cessation of gas processing from the Minerva field.

Vietnam gas contract

Oct 15 (LNGJ) - TechnipFMC, the Franco-US LNG and energy engineering company, said it was awarded a significant contract by PetroVietnam Gas for the engineering, procurement and construction of the Nam Con Son Phase 2 pipeline across the Nam Con Son and Cuu Long basins in the southeast Asian nation. Vietnam is pursuing natural gas pipeline projects as well as planning several LNG import ventures.

   TechnipFMC said the scope of the contract covers engineering and installation of 118 kilometres of rigid pipeline as well as the fabrication of subsea structures to tie back the existing Nam Con Son gas pipeline to the Long Hai Landfall Station. “This pipeline collects and transports gas from several reserves to help meet the demand in Southeast Vietnam, and we look forward to collaborating with PetroVietnam Gas on this project,” said Arnaud Piéton, President of Subsea at TechnipFMC.

Polish terminal contract

Oct 11 9LNGJ) - Polish import terminal operator Polskie LNG said it signed a contract with Germany-based equipment company Selas-Linde to deliver vaporisers for the expansion of the Swinoujscie facility on the Baltic Coast. The Swinoujscie terminal expansion will increase capacity to 7.5 million tonnes per annum of LNG from the current 5 MTPA. Plans for a floating storage regasification unit (FSRU) being deployed at the Baltic port of Gdansk are also being advanced.

   “LNG is an important element of the strategy of diversification of sources of natural gas imports to Poland,” said Piotr Naimski of the Polish Government’s Strategic Energy Infrastructure department. The LNG expansions will be complemented by another project called Baltic Pipe to supply Norwegian pipeline natural gas to Poland.

California Oct 24 forum

Oct 11 (LNGJ) - The US Northwest Gas Association is holding a Web discussion on October 24 (put back from October 17) featuring Jon Switalski of Californians for Balanced Energy Solutions. This is a recently launched coalition of natural gas users in California.

   The aim of the event is to educate Californians on the benefits of natural gas and renewable natural gas in their state. The Northwest Gas Association’s mission is to advance the safe, dependable and responsible use of natural gas as a cornerstone of the region’s energy, environmental and economic foundation.

   Pacific Gas and Electric, the utility for 16 million customers in northern and central California, last week declared a public safety power shut-off amid wildfire risk, shutting off power to nearly 800,000 customers in three waves and affecting 34 counties.

PNG expansion talks

Oct 10 (LNGJ) - Oil Search, the Papua New Guinea-based energy and LNG company, said efforts were now focused on the P’nyang Gas Agreement, with discussions between the PNG government and ExxonMobil, the operator of P’nyang, now taking place to clear the way for a doubling of LNG production to almost 20 million tonnes per annum

   “Finalization of the P’nyang Gas Agreement and the passing of associated Papua LNG legislative changes are pre-requisites for launching the front-end engineering and design phase of the proposed three-Train LNG development,” said Oil Search. The Australian Securities Exchange-listed company is a shareholder in the P’nyang gas resources and gave the update to investors during a UK road show.

Korean supply accord

Oct 9 (LNGJ) - Petronas, the Malaysian state-backed energy company and LNG supplier, said it signed a Sale and Purchase Agreement (SPA) with Korea Midland Power, the South Korean electricity generating company. The accord is for 240,000 tonnes per annum of LNG for an initial term of five years.

   Korea Midland is based in Boryeong, the port on the Yellow Sea coast where the nation’s newest of its six LNG import terminals is located. Boryeong has been in operation since 2017 and is owned by independent energy utilities rather than state-run Korea Gas Corp.

LNG shipping event

Oct 8 (LNG) - Senior executives from leading LNG, oil and product tanker shipping companies will discuss the trends, developments and outlook of the global commodities and shipping markets at the Annual New York Maritime Forum scheduled for October 15 at The Metropolitan Club in New York City.

Executives from 34 shipping and maritime companies will attend the event held in cooperation with the New York Stock Exchange, the Nasdaq global exchange, New York City Economic Development Corp. and the Port Authority of New York and New Jersey.

The LNG panel will comprise Harald Gurvin, Chief Financial Officer of Flex LNG, Andy Orekar, Chief Executive of GasLog Partners and Kenneth Hvid, President and CEO of Teekay Corp. The luncheon will be addressed by several keynote speakers, including Meg Gentle, CEO of US Gulf Coast LNG developer Tellurian Inc.

German port bunkering

Oct 7 (LNGJ) - Nauticor, the German LNG supplier and a subsidiary of the Linde Group, said it conducted its first ship-to-ship LNG bunkering operation in a German port at the Elbehafen, part of the Brunsbuttel Ports zone where the country's first import terminal will be sited.

Nauticor said the trailing suction hopper dredger (TSHD) “Scheldt River” received the LNG fuel from the bunker supply vessel “Kairos”, owned by Babcock Schulte Energy and operated on behalf of Nauticor. The dredger “Scheldt River” received 300 cubic metres of LNG as the vessel continues to conduct maintenance dredging works on the Lower Elbe River. 

GTT receives two orders

Oct 4 (LNGJ) - French maritime LNG tanks technology firm GTT said it received two orders from the South Korean shipyards Samsung Heavy Industries and Hyundai Samho Heavy Industries for designs for two LNG carriers of 174,000 cubic metres capacity.

   The Korean-built vessels will be fitted with the Mark III Flex membrane containment system. One carrier will be built at Samsung on behalf of Japanese shipowner NYK Line and will be delivered during the third quarter of 2021. GTT said the second vessel being constructed at Hyundai has been ordered by an Asian owner who wishes not to be named at this stage. The delivery date is the end of 2021.

Yamal LNG for Asia

Oct 2 (LNGJ) - Novatek said that 15 LNG cargos from the Yamal plant in northern Siberia were shipped eastwards to the Asia-Pacific market directly from Sabetta port via the Northern Sea Route during the third quarter 2019. “The eastward shipments represented about 25 percent of all LNG sent out from the Yamal plant during the quarter,” added Novatek.

A current fleet of 13 Arc7 ice-class tankers along with lower ice-class designated carriers transports cargoes from the Yamal facility to customers. Novatek said that another two Arc7 ice-class carriers are expected to be in operation by the end of 2019. “The increase of LNG delivered eastbound via the NSR confirms the commercial priority of the Asia-Pacific region as a strategic direction for future deliveries of Novatek LNG,” noted Lev Feodosyev, deputy chairman of the Novatek board.

Avenir small-scale charter

Oct 1 (LNG) - Avenir LNG, a small-scale joint venture comprising Norwegian firms Stolt-Nielsen, Hoegh LNG and Golar LNG, said that Malaysian energy company Petronas has chartered Avenir’s first carrier of 7,500 cubic metres capacity. “The vessel will provide bunkering to LNG-fuelled vessels across Malaysia in addition to transport services for small-scale terminals in the region,” said Avenir.

   Avenir received cooperation in the charter from Malaysian shipping line MISC Berhad, the main shipping partner of Petronas. “Avenir and MISC will form a joint venture company to manage the commercial operations of the LNG carrier whereas ship management services will be provided by Eaglestar Shipmanagement, a wholly-owned subsidiary of MISC,” said a statement.

Kitimat LNG open house

Sept 27 (LNGJ) - The Kitimat LNG export project in the Canadian province of British Columbia, led by US major Chevron Corp., will be the subject of Open House meetings soon  and a period of public comment on amendments to the venture. The meetings are being organized by the BC Environmental Assessment Office and will take place in the towns of Kitimat and Terrace. “A 30-day public comment period on the amendments will start on October 7, 2019 and end on November 6, 2019,” said the regulator.

   The Kitimat LNG project is being developed at Bish Cove by Chevron and Woodside of Australia and each has a 50 percent stake as well as the support of the Haisla First Nation. Chevron in July 2019 had a project amendment request accepted by the regulators for a redesigned project and an increase in export capacity to 18 million tonnes per annum and an initial three processing Trains instead of two. Feed-gas for the Kitimat liquefaction plant will come from the large upstream shale-gas resources in 322,000 net acres owned by the project in the Horn River and Liard Basins of northeast BC.

PNG expansion deals

Sept 26 (LNGJ) - Papua New Guinea said at the annual LNG Producer-Consumer Conference in Tokyo that the nation was hoping for a good deal from ExxonMobil for the P’nyang Gas Agreement, one of the two feed-gas ventures that will underpin the PNG LNG expansion to take output to almost 20 million tonnes per annum from around 9 MTPA currently.

   A consortium led by French major Total and called Papua LNG, holders of the Elk-Antelope gas field licence, have already agreed to improved terms for the government. The P’nyang field licence, controlled by PNG LNG plant opertor ExxonMobil, also includes Australian-listed companies Oil Search and Santos and has yet to agree terms. PNG Petroleum Minister Kerenga Kua said in Tokyo that formal talks on the P’nyang Gas Agreement have yet to begin and the government was waiting for Exxon to put forward firm proposals for the $13 billion expansion.

Newbuild for Yamal LNG

Sept 25 (LNGJ) - Japanese shipping company Mitsui OSK Lines said it attended a naming ceremony at Hudong-Zhonghua Shipbuilding in China for a newbuild liquefied natural gas carrier jointly ordered with China Cosco Shipping Corp. to serve the Yamal LNG plant in Russia. MOL said that the 174,000 cubic metres capacity vessel was named “LNG Dubhe” after a star in the constellation Ursa Major and is the first of four newbuilds ordered in 2017 for the Yamal LNG project.

   MOL and its partners also delivered three ice-breaking LNG carriers to the Russian project between 2018 and early 2019, which are currently engaged in cargo transportation in the Northern Sea Route. “For the time being, ‘LNG Dubue’ will be engaged in the transport of the LNG from trans-shipment terminals in Europe or a location where ship-to-ship transfer operations are carried out,” added MOL.

 

Japan LNG investments

Sept 24 (LNGJ) - Japan's Economy, Trade and Industry Minister Isshu Sugawara will announce at the annual LNG Producer-Consumer Conference that the nation’s leading companies and agencies plan to invest $10 billion to encourage broader use of LNG around the world.

   The Japanese government’s eighth conference in the series will be held on September 26 in Tokyo, jointly hosted by the Asia Pacific Energy Research Centre. The conference was first held in 2012 and the 2019 event will be attended by more than 1,000 representatives of governments, international energy organizations and companies involved in the LNG industry. It will be held at the Convention Center of the Grand Prince Hotel New Takanawa at Minato-ku in Tokyo.

Pakistan LNG boost

Sept 20 (LNGJ) - Pakistan is planning the construction of five liquefied natural gas import terminals by groups including energy majors Exxon Mobil Corp. and Royal Dutch Shell as well as commodities firm Trafigura. Pakistan currently has two floating facilities at Port Qasim, east of Karachi.

   The expansion plan echoes a declaration made at the Gastech 2019 conference in Houston, which has just ended, by the Pakistani government’s Nadeem Babar, a special assistant to Prime Minister Imran Khan. “In Pakistan, four years ago we had no LNG, we now have access to 10 million tonnes a year and will have 20 MTPA by 2025 and more by 2030,” said Babar.

   According to the government, the developers will be required to submit technical and financial details by early November 2019 as well as a $2 million concession fee. Another $8M will be required to be paid on the signing of an implementation agreements.

Boost for Gladstone LNG

Sept 19 (LNGJ) - The Santos-operated Gladstone LNG export project in the Australian state of Queensland said it had completed the A$750 million (US$510M) Roma East feed-gas project with the coal-seam gas compression facility officially handed over to its operations team. The Roma East project involved bringing 480 CSG wells online, including drilling about 430 new wells and connecting existing appraisal wells.

   “First gas from the Roma East field flowed in February 2019 and with commissioning now safely completed, the plant is fully operational,” said Santos. The project also includes about 420 kilometres of water, gas gathering and other pipelines, additional gas compression, 670 kilometres of power lines, 25 kilometres of fibre optic cables and a new water-handling facility for irrigation.

Boskalis Coral FLNG award

Sept 18 (LNGJ) - Royal Boskalis Westminster of the Netherlands said its Smit Lamnalco joint venture was awarded “a substantial 10-year contract with additional extension options” to provide integrated marine services to the first Mozambique LNG project, the Coral floating production venture being developed by Eni of Italy and partners offshore the southeast African nation.

   “This marks the first terminal services contract award for the Mozambique offshore LNG developments,” said Boskalis. The contract value for the Smit Lamnalco unit amounts to around $200 million and services will start in early 2022. The Boskalis company would deploy three new 95-ton bollard pull tugs to provide escort, berthing and unberthing services to LNG carriers at the FLNG facility.

   Coral FLNG is a consortium comprising Eni, ExxonMobil, China National Petroleum Corp., Korea Gas Corp., Galp Energia of Portugal and the Mozambican State Hydrocarbon Company (ENH).