This week

LNG terminal design and expansion
has made some facilities key players

Design of regasification terminals is the most important part of a project as it will define the future use and flexibility of the facility in terms of the capacity of vessels that can be accommodated and future activities such as re-exporting, truck-loading or being a regional supply hub.

Latest News
The US Coast Guard said it went to assist an LNG carrier, the “Catalunya Spirit” owned by Teekay Corp. of Canada, after it lost propulsion 35 miles…
Aker Kvaerner of Norway and Ishikawajima-Harima Heavy Industries of Japan said they won the $680 million contract to provide engineering, procurement and construction for the Gulf Clean…
Royal Dutch Shell’s shipping subsidiary said it has started recruiting US seafarers for the company’s growing fleet of managed LNG carriers as it aims to increase deliveries…
Gazprom said it was unlikely to go ahead with its $3.5 billion Baltic LNG production plant near Petersburg as it concentrates on the huge Shtokman LNG project…
Royal Dutch Shell says most of the LNG from the Qatargas IV project will be exported to the import terminal at Elba Island in the US state…
BG Group said the company expected to boost LNG revenue by about 30 percent in 2008 and 2009 by diverting about 30 percent to 40 percent of…
BG Group, one of Europe’s leading LNG companies, said fourth-quarter LNG operating profits jumped more than 40 percent to $320 million, increasing the company’s annual LNG operating income to…
Turkey said it would like to purchase regular LNG supplies from Qatar after 2010 as it moves to secure more long-term supplies for its two import terminals.
Osaka Gas, the supplier serving almost 7 million customers in the Kansai region of Japan, has completed a deal to buy 10 percent of the Freeport LNG…
Qatar Petroleum said it would deliver its first commercial LNG cargo to the UK’s South Hook terminal in Milford Haven by September this year.

US LNG shipments

March 27 (LNGJ) - The US shipped 15 LNG cargoes from its export plants in the past week compared with 16 in the previous week. Seven shipments left Cheniere Energy’s Sabine Pass plant in Louisiana, while two departed from Cheniere’s Corpus Christi facility in Texas. At the four other plants, three were shipped from the Freeport plant in Texas, two departed from Sempra Energy’s Cameron facility in Louisiana, one left from Dominion Energy’s Cove Point in Maryland and none from the newest facility, the Elba Island plant in Georgia, according to the Energy Information Administration.  

Greek LNG progress

March 26 (LNGJ) - Greek LNG developer Gastrade said the binding phase of a market test for reservation of capacity at the floating LNG terminal proposed for offshore  Alexandroupolis in northeastern Greece was successfully completed. “With an aggregate long-term profile of binding offers for up to 15 years, reaching 2.6 billion cubic metres per year, Greek and international natural gas companies, as well as end-consumers, confirmed their interest in the reservation of regasification capacity at the FSRU terminal,” said Gastrade.

   LNG delivered to the terminal will be regasified and transmitted to the markets of Greece and the region via the Greek National Natural Gas Transmission System. Konstantinos Spyropoulos, Managing Director of Gastrade, said the process was a critical step towards “the enhancement of energy diversification and security of supply in Greece, the Balkans and the wider southeast European area”. 

LNG shipments to China

March 26 (LNGJ) - China will be unloading at least three LNG shipments in the days ahead. The 174,100  cubic metres capacity carrier “Cesi Lianyungang” will be unloading a cargo at the Qingdao terminal in eastern Shandong province from Australia-Pacific LNG at Gladstone in Queensland where terminal owner Sinopec is a shareholder. The 147,000 cubic metres capacity vessel “Min Lu” will deliver a cargo on March 26 to CNOOC’s Fujian terminal from the BP-operated Tangguh plant in Indonesia. The 147,000 cubic metres capacity “Dapeng Moon” will then discharge a shipment on March 29 at the CNOOC Shenzhen Diefu regasification facility from the Woodside Dampier export terminal in Western Australia.

Shipments for Turkey

March 25 (LNGJ) - Turkey is set to receive more LNG shipments from the US in 2020 and is unloading two cargoes this week from traditional suppliers, Nigeria and Qatar. The 148,300 cubic metres capacity carrier “LNG Imo” will unload a Nigerian cargo on March 27 at the Aliaga facility. Then on March 30 the 210,100 cubic metres capacity Q-Flex vessel “Umm Al Amada” is set to deliver a shipment to the Marmara Ereglisi terminal for Turkish energy company Botas from Ras Laffan in Qatar.

   Turkey’s LNG cargo prices are based on the Atlantic Basin natural gas benchmarks in the UK and the Netherlands. The UK National Balancing Point was last at $2.55 per million British thermal units while Continental Europe’s Dutch Title Transfer Facility (TTF) price was lower at $2.50 per MMBtu.

Q-Max for UK March 31

March 24 (LNGJ) - The 261,700 cubic metres capacity Q-Max carrier “Al Samriya” is scheduled to deliver a shipment on March 31 to the UK South Hook LNG terminal at the port of Milford Haven from Ras Laffan in Qatar.

   The cargo was heading for the UK as the benchmark National Balancing Point natural gas price dropped from last week to $2.55 per million British thermal units while Continental Europe’s Dutch Title Transfer Facility (TTF) price was also lower at $2.50 per MMBtu.

China natural gas

March 23 (LNGJ) - Chinese January-February  domestic natural gas production rose 8 percent to 31.4 billion cubic metres with an average daily output of 520 million cubic metres, according to data from the National Bureau of Statistics. Imports of pipeline natural gas and LNG together reached 17.80 million tonnes compared with 17.36MT in Jan-Feb 2019, up 2.6 percent year on year. Domestic crude oil output rose 3.7 percent year on year to 32MT from January to February, while imports increased 5.2 percent from a year earlier to 86.09MT. Some 99.19MT of crude oil was processed during the two months, down 3.8 percent from January-February 2019.

US LNG cargoes increase

March 20 (LNGJ ) - The US shipped 16 LNG cargoes from its export plants in the past week compared with 14 in the previous week. Five shipments left Cheniere Energy’s Sabine Pass plant in Louisiana, while three departed from Cheniere’s Corpus Christi facility in Texas. At the four other plants, three were shipped from the Freeport plant in Texas, three departed from Sempra Energy’s Cameron facility in Louisiana, two left from Dominion Energy’s Cove Point in Maryland and none from the newest facility, the Elba Island plant in Georgia, according to the Energy Information Administration.  

Finnish tech for China

March 19 (LNGJ) - WE Tech Solutions of Finland, the shipping consultancy and equipment provider offering  energy efficiency designs, has received a repeat order from Jiangnan Shipyard Group Co. in China to deliver its “Solution Four” package for efficient power distribution for the third new battery and LNG-powered Pure Car Truck Carrier (PCTC) ordered by United European Car Carriers (UECC). WE Tech was previously contracted by Jiangnan Shipyard to deliver the same solution to a series of two PCTC vessels of UECC.

   The WE Tech Solution Four includes WE Drive, Direct Drive Permanent Magnet Shaft Generator, DC-link power distribution, an Energy Storage System (ESS) and the Energy Management System (EMS). WE Tech said this would place UECC’s new vessels beyond the International Maritime Organization’s target for a 40 percent reduction in carbon intensity by 2030.  “We take this repeat order as shipowner and shipyard’s acknowledgement of our reliable and highly environmental-sustainable solutions,” said Martin Andtfolk, Sales Manager of WE Tech.

Cheniere exports pledge

March  18  (LNGJ) - Cheniere Energy, the largest LNG exporter from its Sabine Pass plant in Louisiana and the Corpus Christi facility in Texas, said it did not expect the steps it had taken to protect employees against the coronavirus to impact production and exports. “We have taken precautionary measures to encourage protection against transmission,” the company said in a statement. “We do not expect these measures to impact production at our facilities.” Cheniere said the steps included reducing large group meetings and non-essential travel, and implementing work from home schedules.

UK cargoes March 24

March 17 (LNGJ) - Each of the two LNG import terminals at Milford Haven in Wales, Dragon LNG and South Hook LNG, will receive a shipment on March 24. The 155,000 cubic metres capacity “Gaslog Seattle” is scheduled to deliver to the Dragon facility from the Bonny Island plant in Nigeria. The 210,100 cubic metres capacity Q-Flex carrier “Duhail” will unload its Qatargas cargo at the South Hook facility on the same date.

   The shipments are scheduled as the UK National Balancing Point natural gas price has dropped to $2.80 per million British thermal units while Continental Europe’s Dutch Title Transfer Facility (TTF) price was slightly higher at $2.85 per MMBtu.

LNG price fall-out

March 16 (LNGJ) - The slump in the oil price will take two or three months to feed through to LNG price realisations but will have a significant impact, according to Australian consultants EnergyQuest.  “At a 12 percent  slope to the oil price, the LNG price is US$7.80 per million British thermal units at an oil price of US$65 per barrel but only US$4.20/MMBtu at US$35 per barrel, a fall of 46 percent,” said the firm.

Chicago trading to shut

March 12 (LNGJ) - CME Group, one of the largest derivatives trading and settlement platforms for energy futures and options, including natural gas and LNG, said it would close its Chicago trading floor as of the close of business on Friday, March 13, 2020, as a precaution to reduce large gatherings that can contribute to the spread of coronavirus. CME said the move was in line with the advice of medical professionals. 

   “All products will continue to trade on CME Globex as they do today,” stated CME. “No coronavirus cases have been reported on the trading floor or in the Chicago Board of Trade building,” it added. CME explained that the reopening of the trading floor would be evaluated as more medical guidance on the coronavirus becomes available. The company's headquarters at 20 S Wacker Drive in Chicago would remain open. 

LNG ship rates steady

March 12 (LNGJ) - Shipping charter rates for LNG carriers in the spot market have levelled off and are little changed from a week ago. Rates were again quoted at an average of between $39,000 per day and $34,000 per day West of Suez and $38,000 per day and $33,000 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters have dropped for vessels of between 155,000-160,000 cubic metres capacity and are now seen at around $55,000 per day.

UK’s Russian-US LNG

March 11 (LNGJ) - Russian and US LNG cargoes are heading for the UK. The 172,000 cubic metres capacity carrier “Nikolay Urventsev” will arrive at the UK Dragon import terminal at Milford Haven in Wales on March 13 with a shipment from the Russia Yamal plant at Sabetta in Northern Siberia. The 173,644 cubic metres capacity “British Contributor” is then due at the Dragon terminal on March 15 with a US cargo from the Freeport plant on Quintana Island in Texas.

   The shipments are due as the UK National Balancing Point natural gas price has moved higher to $3.00 per million British thermal units, the same level as Continental Europe’s Dutch Title Transfer Facility (TTF) price.

US delays oil data

March 10 (LNGJ) - The US Energy Information Administration, in an unusual step, has delayed the issuing of its Short-term Energy Outlook for 48 hours. “We have delayed the release of the Short-Term Energy Outlook to allow time to incorporate recent global oil market events. The outlook will now be released Wednesday, March 11, at 9:00 am.

Nor-Shipping hiring

March 9 (LNGJ) - Nor-Shipping, the annual trade fair held in Norway since 1965, said it hired Karen Algaard in the newly created position of Director of Nor-Shipping Operations and Strategy. Algaard, who moves from the shipping company Höegh LNG where she was Head of Contract Management and Controlling, will now work alongside Per Martin Tanggaard, who assumes the title of Director Nor-Shipping External Relations. 

   “The move allows Tanggaard to focus on building Nor-Shipping’s standing and influence within the marketplace, while Algaard takes on both long-term strategic planning and day-to-day business management,” said the trade fair company. Nor-Shipping will take place in 2020 on June 1-4. 

Spot charter rates drop

March 5 (LNGJ) - Shipping charter rates for LNG carriers in the spot market have fallen again amid the global over-hang of volumes. Rates were quoted at an average of between $39,000 per day and $34,000 per day West of Suez and $38,000 per day and $33,000 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 vessels of between 155,000-160,000 cubic metres capacity were seen at around $61,000 per day.

US natural gas rise

March 4 (LNGJ) - US natural gas consumption increased by 3 percent in 2019, reaching a record of 85.0 billion cubic feet per day (Bcf/d), according to the Energy Information Administration. New natural gas-fired electric capacity and lower natural gas prices led the increase in domestic natural gas consumption. 

   US natural gas consumption grew in the electric power sector by 2.0 Bcf per day, or 7 percent, but remained relatively flat in the commercial, residential, and industrial sectors. Exports by pipeline gas to Mexico and  liquefied natural gas elsewhere grew by 0.5 Bcf per day and 2.0 Bcf per day  respectively. 

Bureau Veritas approval

March 3 (LNGJ) - Bureau Veritas, the French classification society, has granted approval for the design of a “cryo-powered regas” system for  an LNG floating storage and regasification unit. The system recovers cold energy during regasification and uses it for power generation. The approval was issued to both Japanese shipping company Mitsui Osk Lines (MOL) and Daewoo Shipbuilding and Marine Engineering.  

   The system is based on the Organic Rankine Cycle, a proven technology used in multiple onshore LNG terminals for decades. However, Bureau Veritas pointed out that this would be the first time the system has been developed for use in a floating terminal. MOL and DSME plan to test the technology in a small-scale pilot facility early in 2021 and be able to provide the technology to customers in future FSRU projects.

Trinidad cargoes for UK

March 2 (LNGJ) – Two LNG cargoes from Trinidad are heading for the UK port of Milford Haven. The 174,000 cubic metres capacity “Gaslog Glasgow” will unload a shipments at Milford Haven’s Dragon import facility on March 4 from the Point Fortin export plant in Trinidad. The 140,500 cubic metres capacity “Hispania Spirit” is scheduled to arrive with a second Trinidad cargo on March 5, according to the port authorities.

   The Trinidad shipments are heading for the UK with the National Balancing Point natural gas price at around $2.80 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), was at the equivalent of $2.90 per MMBtu.

 

 

 

 

Pembina awaits decision

Feb 28 (LNGJ) - Pembina Pipeline Corp., the Canadian energy infrastructure company developing the US Jordan Cove LNG export plant in the northwest state of Oregon, said the regulatory processes were ongoing. “The US Federal Energy Regulatory Commission delayed a decision originally expected on February 13, 2020,” said the Calgary-based company in its latest earnings. “Pembina looks forward to obtaining a final decision. Pembina is focused on getting all the remaining permits required to proceed with this project,” stated the company. 

   The liquefaction plant and other facilities are planned for a 200-acre site at Coos Bay and comprise five small-scale Trains each with 1.5 million tonnes per annum of output for a total of 7.8 MTPA. The Jordan Cove venture's other facilities would include two full-containment LNG storage tanks with total capacity of 320,000 cubic metres, gas treating facilities, an export jetty and access to more than 25 billion cubic feet per day of gas supply from Western Canada and the US Rockies.

Spot ship rates decline

Feb 27 (LNGJ) - Shipping charter rates for LNG carriers in the spot market have dropped again as over-supply keeps the market flat. Rates were quoted at an average of between $39,000 per day and  $34,000 per day for both main charter markets, West of Suez and East of Suez, for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters for vessels of between 155,000-160,000 cubic metres capacity were seen at around $65,000 per day.

China order for GTT

Feb 26 (LNG) - Gaztransport and Technigaz (GTT), the French technology firm for designs of systems for the maritime transportation and storage of liquefied natural gas, has received an order from the Chinese Hudong-Zhonghua Shipbuilding Group for tank designs for two newbuilds ordered by the Japanese shipowner Kawasaki Kisen Kaisha (K Line).

   GTT said each vessel would offer a capacity of 79,960 cubic metres and be fitted with the No. 96 L03-plus membrane containment system. The delivery of the vessels is planned for the second quarter of 2022. “We are pleased to receive this new order for mid-scale LNG carriers, from Hudong-Zhonghua, a long term partner of GTT,” said Philippe Berterottière, the Paris-based company’s Chairman and Chief Executive.

Centrica Brazil role

Feb 25 (LNGJ) - Centrica, the UK energy and utility company, and a power company in the small northeast Brazilian state of Sergipe, have helped commission the Golar Power-led LNG import terminal project in the South American nation. The Centrica-chartered LNG vessel, the “Singapore Energy”, delivered 95,000 cubic metres of LNG by a ship-to-ship operation to the “Golar Nanook” Floating Storage and Regasification Unit located 8.5 kilometres off the coast. The FRSU is connected by pipeline to a combined-cycle gas-fired power plant, the largest in Latin America, owned by Centrais Elétricas de Sergipe S.A. (CELSE).

   “We are happy to start this collaboration with Golar and CELSE and pleased to have safely completed the ship-to-ship transfer,” said Jonathan Westby, Co-Managing Director of Centrica Energy Marketing and Trading and Global Head of LNG. “This demonstrates Centrica’s growing global LNG trading optimisation and operations capability,” Westby added.

Qatar's UK supply rises

Feb 24 (LNGJ)- Qatargas has lined up three Q-Max LNG deliveries to the UK for the end of February and the start of March on vessels with 266,000 cubic metres capacity. The “Al Dafna” is scheduled to arrive at the UK South Hook terminal in Milford Haven in Wales on February 28. The “Mekaines” is scheduled to arrive from Ras Laffan in Qatar on March 2 along with a second loaded vessel, the “Al Mayeda”.

   The Qatari shipments are heading for the UK with the National Balancing Point natural gas price at around $3.00 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), also at the equivalent of $3.00 per MMBtu.

Spot ship rates fall

Feb 20 (LNGJ) - Shipping charter rates for LNG carriers in the spot market have declined yet again as abundant supply keeps the market flat. Rates were quoted at an average of between $44,000 per day to $39,000 per day West of Suez and $42,000 per day to $37,000 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 vessels of between 155,000-160,000 cubic metres capacity were seen at around $67,000 per day.

Newbuilds for Nakilat

Feb 19 (LNGJ) - Qatar Gas Transport Co., also known as Nakilat, said it was set to have two newbuild LNG carriers delivered this year  and has four in total under construction in South Korea. “The propulsion system selected for these ships is contemporary and they will be fully equipped with cutting-edge technology, which will help reduce emissions significantly,” said Bader Al Mulla, LNG Joint Ventures Manager at Nakilat. “With the delivery of these two upcoming ships Nakilat’s fleet size will increase to 76 carriers, including four LPG tankers and one floating storage and regasification unit,” added Al Mulla.

UK-Dutch prices edge up

Feb 18 (LNGJ) - LNG cargoes continue to head for the UK and arrivals will include the 266,000 cubic metres capacity Q-Max carrier “Mekaines”, which will deliver a shipment on February 23 to the South Hook terminal at Milford Haven in Wales from Ras Laffan in Qatar. The 180,000 cubic metres capacity “Adriano Knutsen” will then arrive at South Hook with another shipment on February 24 from Cheniere Energy’s Corpus Christi plant in Texas.

   Shipments are heading for the UK and other European destinations just as prices start to recover from historic lows. The UK National Balancing Point price was last at around $2.90 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), was at the equivalent of $2.95 per MMB

Japan shipping deal

Feb 17 (LNGJ) - Japanese companies Hiroshima Gas Co., Tokyo Gas and Tokyo LNG Tanker Co. have signed an LNG transportation agreement. Under the agreement, some of the LNG procured by Hiroshima Gas and Tokyo Gas from the Russian liquefaction plant on Sakhalin Island in the Far East will be transported at the same time on LNG carriers owned and managed by Tokyo LNG Tanker for a period of eight years through fiscal 2017. “The agreement was made possible with the cooperation of Sakhalin Energy Investment, a company contrlloed of Gazprom, and a long-term supplier of Hiroshima Gas and Tokyo Gas,” said the companies.

Ship rates drop again

Feb 13 (LNGJ) – Shipping charter rates for LNG carriers in the spot market dropped again in the past week as demand declined again amid abundant supply. Rates were quoted at an average of between $53,000 per day to $58,000 per day West of Suez and $47,000 per day to $52,000 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 vessels of between 155,000-160,000 cubic metres capacity were seen at around $68,000 per day.

Nigerian Galp deal

Feb 13 (LNGJ) - Nigeria LNG has signed a deal with the trading arm of Portuguese company Galp Energia for one million tonnes per annum. The volumes will be supplied on a delivered ex-ship basis for 10 years from Trains 1, 2 and 3 of the six-Train facility on the on Bonny Island on the Niger Delta. The transaction follows a similar deal with Italy’s Eni and France’s Total announced in January and deal with commodity trader Vitol signed in December for 500,000 tonnes per annum.

Annova LNG permit

Feb 13 (LNG) - Annova LNG, the small export project planned for the Port of Brownsville in south Texas, has received a 20-year permit from the Department of Energy to export cargoes to nations without a Free Trade Agreement with the US. The liquefaction plant will produce around 7 million tonnes per annum of LNG.

   “This authorization from the DoE allows us to reach more customers worldwide and is another milestone accomplished as we make progress towards a final investment decision,” said Omar Khayum, Chief Executive of Annova. 

Kosmos-BP LNG deal

Feb 12 (LNGJ) - Kosmos Energy of Dallas, a shareholder in the two floating LNG projects being developed off Mauritania and Senegal in West Africa, has signed a Sale and Purchase Agreement with BP Gas Marketing, a wholly owned subsidiary of BP, the operator of the FLNG venture and the Greater Tortue Ahmeyim gas project. The SPA is for 2.45 million tonnes per annum LNG from Phase 1 of the BP-led project for an initial term of up to 20 years.

Trinidad LNG for UK

Feb 11 (LNGJ) - The UK will receive several cargoes of LNG this week from across the Atlantic. The 174,000 cubic metres capacity “Gaslog Greece” is scheduled to deliver on February 15 to the UK Dragon import terminal in Milford Haven from the Point Fortin plant in Trinidad, according to the port authorities. The 162,000 cubic metres capacity vessel “Shinshu Maru” is expected to arrive on the same day with a shipment from Freeport LNG in Texas for unloading at the South Hook facility at the Welsh port.

   Cargoes are heading for the UK and other European destinations amid record low prices. The UK National Balancing Point price was last at around $2.70 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), was at the equivalent of $2.75 per MMBtu.

Gasum expands role

Feb 10 (LNGJ) - Gasum of Finland, the main Nordic LNG supplier and importer, said that in line with its growth strategy for LNG maritime and trucking fuel it was expanding its role in the Nordic power market by becoming a member of the Nordic power exchange of Nasdaq OMX. The membership provides Gasum with access to direct trading in the power derivatives market. “In recent years, Gasum has been investing purposefully in building the Nordic gas ecosystem. In addition to the gas market, Gasum also aims to respond to customers’ energy needs by operating in an active role in the power market too,” said the company.

Equinor income falls

Feb 6 (LNGJ) - Equinor, the Norwegian operator of the Hammerfest LNG plant and a main supplier of pipeline gas to Europe, posted a net loss of $230M versus a profit of $3.37Bln in the same quarter of 2018. For the full year, net income was $1.85Bln, down from $7.54Bln in 2018. “Record high production, reduced costs and continued strong capital discipline contributed to solid results in a quarter with lower commodity prices,” said the company. 

   “The flexibility in the gas fields was used to defer production into periods with higher expected gas prices,” added Equinor. “The Johan Sverdrup field was put in production in October 2019 and is currently producing more than 350.000 barrels per day from eight wells. The field is expected to reach plateau during the summer of 2020,” it added.

Ship charter rates drop

Feb 6 (LNGJ) – Shipping charter rates for LNG carriers in the spot market dropped further in the week as winter season deliveries slowed down, adding to the market glut. Rates were quoted at an average of between $63,000 per day to $67,000 per day West of Suez and $56,000 per day to $62,000 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 vessels of between 155,000-160,000 cubic metres capacity were seen at around $70,000 per day.

Low-priced UK LNG

Feb 5 (LNGJ) - Two more LNG cargoes are heading for Milford Haven port in the UK. The 160,000 cubic metres capacity vessel “Golar Kelvin” is scheduled to unload US shipment on February 10 at the Dragon terminal in Milford Haven in Wales from Freeport LNG in Texas, according to shipping data. The 210,185  cubic metres capacity carrier “Al Bahiya” will then deliver a cargo on February 12 to the UK South Hook terminal in Milford Haven from Ras Laffan in Qatar.

   Cargoes are heading for the UK and other European destinations amid record low winter season prices. The UK National Balancing Point price was last at around $3.05 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), was at the equivalent of $3.00 per MMBtu.

Shipments for UK

Feb 4 (LNGJ) - Cargoes continue to head for the UK as record low prices prevail. The next February cargo to unload at the UK South Hook LNG import terminal at Milford Haven in Wales will arrive on February 6 on board the Qatari Q-Flex carrier “Al Nuaman” with 210,000 cubic metres of capacity. A second shipment is scheduled to arrive on February 7 from the US on the 145,700 cubic metres capacity “Stena Blue Sky” and will be unloaded at the Dragon terminal in Milford Haven.

   Cargoes are heading for the UK and other European destinations even as record seasonally low prices prevail because of excess supplies. The UK National Balancing Point price was last at around $3.00 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), was at the equivalent of $2.95 per MMBtu.

Trump LNG signing plan

Feb 3 (LNGJ) - Indian importer Petronet LNG is expected to sign a firm supply agreement with Gulf Coast liquefaction plant developer Tellurian Inc. during the scheduled visit to India on February 24-25 of US President Donald Trump. The initial agreement between Houston-based Tellurian and Petronet for up to 5 million tonnes per annum of US LNG was signed during a visit to the Texan city in September 2019 by Indian Prime Minister Narendra Modi.

   Petronet is also negotiating an equity investment in Tellurian’s Driftwood project proposed for the west bank of the Calcasieu River, south of Lake Charles in Louisiana, and with output of just over 26 million tonnes per annum when completed in 2023.

LNG shipping rates down

Jan 30 (LNGJ) – Shipping charter rates for LNG carriers in the spot market were down again in the week amid a slowdown in deliveries and market over-capacity. Rates were quoted at an average of between $68,000 per day to $72,000 per day West of Suez and $65,000 per day to $70,000 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 vessels of between 155,000-160,000 cubic metres capacity were seen at around $72,000 per day.

Novatek share buy-back

Jan 29 (LNGJ) - Novatek, the largest independent natural gas producer in Russia and operator of the Yamal LNG export plant in northern Siberia, said that its share buy-back programme during the period from January 20-24, 2020, had resulted in 464,900 ordinary shares (including in a form of Global Depositary Receipts) being purchased in the open market. 

   Novatek is a public joint stock company and the shares are listed in Russia on the Moscow Exchange and on the London Stock Exchange in the UK under the ticker symbol “NVTK”. Companies buy back shares for a number of reasons, including as a means of increasing the value of remaining shares available by reducing the supply, or preventing other existing shareholders from taking bigger stakes.

UK February cargo

Jan 28 (LNGJ) - The first February cargo is heading for the UK South Hook LNG import terminal at Milford Haven in Wales. The shipment will arrive on February 3 on board Qatari Q-Max carrier “Al Ghuwairiya” with 261,700 cubic metres of capacity. Cargoes are heading for the UK and other European destinations even as record seasonally low prices prevail because of excess supplies. The UK National Balancing Point price was last at around $3.60 per million British thermal units and the main price on Continental Europe, the Dutch Title Transfer Facility (TTF), was at the equivalent of $3.40 per MMBtu. 

Magnolia LNG permit

Jan 27 (LNGJ) - The US Federal Energy Regulatory Commission has  prepared a final supplemental environmental impact statement for the Magnolia LNG project proposed for Lake Charles in Louisiana, which has a deal to export shipments to Vietnam. The Magnolia project, owned by Australian-listed LNG Ltd, requested authorization to increase capacity at the previously authorized project from 8 million metric tonnes per annum to 8.8 MTPA. 

   “The increased production capacity would be achieved through the optimization of Magnolia LNG’s final design, including additional and modified process equipment,” the FERC noted. “With the incorporation of the mitigation measures identified in the supplemental EIS, staff concluded the LNG terminal design would include acceptable layers of protection or safeguards,” it added.

LNG charter rates

Jan 23 (LNGJ) - In the spot shipping charter market, LNG carrier spot rates were down again in the week and were quoted at an average of between $75,000 per day to $82,000 per day West of Suez and $70,000 per day to $77,000 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 vessels of between 155,000-160,000 cubic metres capacity were seen at around $75,000 per day.

More US LNG for UK

Jan 22 (LNGJ) - The 161,870 cubic metres capacity carrier “Maran Gas Apollonia” will become the latest carrier to discharge an LNG cargo at a UK terminal when it unloads a shipment on January 28 at the South Hook facility in Milford Haven. The cargo comes from the Cheniere Energy-owned Sabine Pass plant in Louisiana. The cargoes are arriving amid continued low winter season prices. The UK National Balancing Point price was last at around $3.65 per million British thermal units and the Dutch Title Transfer Facility (TTF) price was at the equivalent of $3.50 per MMBtu.

LNG bunkering order

Jan 21 (LNGJ) - Greek company Probunkers said it had agreed terms with Hyundai Mipo Dockyard of South Korea for the construction of two LNG bunkering vessels, each with 7,600 cubic metres of capacity.

   The accord in the form of a letter of intent came after a long process during which the Greek firm’s technical team reviewed more than 30 ship design proposals. Probunkers said the initial agreement with the Korean yard underlined its aim of bringing quality and reliability to customers.

Malaysia-China deal

Jan 20 (LNGJ) - Malaysian oil and gas company Petronas has signed an agreement with the Chinese state-owned energy firm, Shenergy Group, to supply around 1.5 million tonnes per annum of LNG to Shenergy’s Wuhaogou facilities near Shanghai. 

   The heads of agreement is for a 12-year term starting from 2022 and will involve a shipping collaboration to construct and charter new mid-sized LNG vessels for the cargo deliveries. Petronas has been a major LNG supplier to Shenergy's subsidiary, Shanghai LNG Co., since 2006.

   “The long-term deal, which involves the delivery of mid-sized cargoes to unique LNG receiving terminals, is a testimony of Petronas’s commitment to customer-centricity and market adaptability,” said Adnan Zainal Abidin, the Malaysian company’s Chief Executive for Gas and New Energy.

Freeport BP start-up

Jan 17 (LNGJ) - Freeport LNG has started commercial operations for the second liquefaction Train of its three-Train facility with the commencement of gas deliveries from BP of the UK under its 20-year tolling agreement. Freeport LNG's Train 1 began commercial operations in December 2019, with the commencement of the Osaka Gas and JERA Co. Inc. tolling agreements.

  “We are thrilled to now be providing service to BP, in addition to Osaka Gas, and JERA ,” said Michael Smith, Founder, Chairman and Chief Executive of Freeport LNG. “We are also especially pleased with the performance of our electric motor drive liquefaction units,” added Smith.

   The company added that construction of Freeport's Train 3 is essentially complete. Gas has been introduced to the pre-treatment facilities and the Freeport expects Federal Energy Regulatory Commission approval to bring gas to the liquefaction site in February. Train 3 remains on track for a commercial start date in May.

US natural gas record

Jan 15 (LNGJ) - US dry natural gas production set a record in 2019 to average 92.0 billion cubic feet per day, according to the Energy Information Administration. The EIA forecasts dry natural gas production will rise to 94.7 Bcf per day in 2020 and then decline to 94.1 Bcf per day in 2021.

   “Production in the Appalachian region drives the forecast as it shifts from growth in 2020 to declining production in 2021,” said the EIA short-term forecast.

On pricing, the benchmark Henry Hub natural gas spot price is seen averaging $2.33 per million British thermal units in 2020, down from $2.57 per MMBtu in 2019. It is then expected that natural gas prices will increase in 2021, reaching an annual average of $2.54 per MMBtu.