This week

LNG has place in active and
sane zone of climate debate

The liquefied natural gas sector has for several years been developing cleaner processes such as carbon capture and hydro-sourced electric power for liquefaction and export projects under development around the world as other parts of the energy industry also now focus on technological advancements.

Latest News
Norway and the UK, among the two main oil and natural gas producers in Europe and who are outside of the European Union since the UK’s Brexit…
Global commodities firm Trafigura is helping lead the investment revival in the Vaca Muerta Shale Basin in Argentina where energy investment has lagged other nations as well…
Free ReadTitan LNG, a Dutch supplier to the marine and industrial markets with quayside and ship-to-ship delivery of LNG to river barges and sea-going ships in the ports…
JGC Holdings Corp. of Japan, the leading global builder of liquefied natural gas liquefaction facilities, has been commissioned by the Japan Aerospace Exploration Agency (JAXA) to design…
Qatar Petroleum has received offers for double the equity available to potential partners in the bidding process for the North Field East liquefued natural gas export plant…
Free ReadChina National Offshore Oil Corp, the Chinese major and largest LNG importer, has started production at the first deepwater natural gas field fully operated by a Chinese…
Gazprom said it had begun building a small-scale liquefied natural gas facility using coal-seam gas in the Kuznetsk Coal Basin in the country’s Kemerovo region of southwest…
The advance of North Sea Brent crude prices to above two-year highs continued this month’s hydrocarbon sector revival and with 2021 highs also being set for European…
Karpowership, the Turkish company with fast-track solutions for electricity projects such as LNG-for-power, was a major winner in a 2,000 megawatt (MW) tender launched by the South…
Free ReadChevron Corp., a leading LNG exporter and operator of liquefaction projects in Africa and Australia, has no plans to reduce its oil and gas business in favour…

News in Brief

BP reports results

UK-based energy giant, bp, has reported strong second quarter 2021 results and continued net debt reduction in an improving environment

The company said that operating performance was resilient in the second quarter with four major project start-ups, strong momentum in the customers business, including material growth in convenience gross margin, and delivery of $2.5 bill of cash costs savings on a run-rate basis relative to 2019, around six months earlier than targeted.

bp reported a profit for the quarter of $3.1 bill, compared with $4.7 bill for the first quarter 2021.

Underlying replacement cost profit was $2.8 bill, compared with $2.6 bill for the previous quarter. This result was driven by higher oil prices and margins offset by a lower result in gas marketing and trading.

Operating cash flow was $5.4 bill, including $1.2 bill pre-tax of Gulf of Mexico oil spill payments within a working capital build of $0.5 bill - after adjusting for inventory holding gains and fair value accounting effects.

The company’s net debt fell to $32.7 bill at the end of the second quarter.

Following the annual review of price assumptions used for investment appraisal and value-in-use impairment testing, bp's Brent oil price assumption to 2030 is increased to reflect expected supply constraints, while longer-term assumptions are lowered as bp expects an acceleration of the pace of transition to a low carbon economy.

As a result of these changed assumptions, the reported result includes a pre-tax net impairment reversal of $3 bill.

Reflecting the underlying performance of the business, an improving outlook for the environment, confidence in the balance sheet and commencement of the share buyback programme, the board has announced an increase in the second quarter dividend of 4% to 5.46 cents per ordinary share. 

This increase is accommodated within a 2021-5 average cash balance point of around $40 per barrel Brent, $11 per barrel RMM and $3 per MMBtu Henry Hub (all 2020 real).

bp generated surplus cash flow of $0.7 bill in the second quarter and $2.4 bill in the first half of this year after having reached its net debt target of $35 bill. 

Taking into account surplus cash flow generated in the first half of the year, bp intends to execute a share buyback of $1.4 bill prior to announcing its third quarter 2021 results. For 2021, and subject to maintaining a strong investment grade credit rating, the board remains committed to using 60% of surplus cash flow for share buybacks and plans to allocate the remaining 40% to continue strengthening the balance sheet.

On average, based on bp’s current forecasts, at around $60 per barrel Brent and subject to the board's discretion each quarter, bp expects to be able to deliver buybacks of around $1 bill per quarter and have capacity for an annual increase in the dividend per ordinary share of around 4%, through 2025. 

Since outlining its new strategy a year ago, bp claimed to have made strong progress in its transformation to an IEC. It has delivered eight major projects, built a 21 GW renewable pipeline, grown convenience and electrification, reorganised, reached over $10 bill of divestment proceeds, strengthened the financial frame and begun share buybacks.

US cargoes down

The US exported 19 LNG cargoes last week, compared to 21 the previous week.

ENI earnings report

July 30 (LNG) - ENI, the Italian oil and gas company and prominent LNG market participant, reported second-quarter earnings of €2.045 billion ($2.42Bln) in the form of an adjusted operating profit compared with a loss of €434 million in the same quarter of 2020.

   ENI said natural gas sales of 16.95 billion cubic metres increased by 22 percent compared with the same period of 2020. “This was mainly due to the higher gas volumes marketed outside Italy (Turkey and France) driven by the reopening of the economies and by higher volumes of LNG sold mainly by the Damietta (Egypt) plant. In the first half of 2021, natural gas sales were 34.43 Bcm, up by 13 percent.

   The Milan-based company’s natural gas production amounted to 4.34 billion cubic feet per day in the period, down by 7 percent compared with the 4.53 bcf per day posted in the same three months of 2020. “Lower production was due to higher maintenance activity, mature field declines and a decrease in Nigeria. These negatives were partly offset by a robust recovery of natural gas demand in certain areas, mainly in Egypt, and the start-up of Merakes field in Indonesia,” added ENI.

LNG sales report

July 29 (LNGJ) – Second-quarter LNG sales by TotalEnergies of France were steady at 10.5 million tonnes compared with 10.4MT in the same three months of 2020 and 9.9MT in the first three months of 2021.

   “Hydrocarbon production for LNG decreased year-on-year by 3 percent and 5 percent respectively in the second quarter of 2021 and the first half of 2021, notably due to the shutdown of the Snøhvit LNG plant following a fire at the end of September 2020 and the planned maintenance shutdown in the second quarter 2021 on Ichthys LNG's liquefaction Trains in Australia,” explained the company in its earnings report.

   “TotalEnergies generated cash flow of $6.8 billion, an increase of more than $1Bln compared to the previous quarter and by maintaining investment discipline, generated net cash flow of $3.2Bln this quarter, which covered the interim dividend of $2.1Bln and allowed continued debt reduction,” said Chief Executive Patrick Pouyanné.

Spot charters hold

July 29 (LNG) - Shipping spot charter rates for LNG carriers were unchanged for a second week. Rates in the West of Suez market were quoted at between $67,000 per day and $63,000 per day for vessels of 155,000-165,000 cubic metres capacity.

   East of Suez spot charter rates were between $55,000 per day and $51,000 per day, according to London brokers. One-year charter rates for the most modern vessels were quoted at around $93,000 per day.

Jurong LNG treatment

July 28 (LNG) - Singapore LNG Corp., operator of the Asian city-state’s import terminal at Jurong Island, is working with the local Keppel Infrastructure and another industry partner on the front-end engineering and design of a natural gas liquids (NGL) extraction facility at the terminal site.

   The Jurong Island NGL extraction facility will remove the heavier hydrocarbons such as ethane or propane from the LNG. “The project will allow for a higher handling flexibility of LNG through Singapore, which will in turn help to enhance Singapore’s energy security,” said the operating company.

Enagás earnings

July 27 (LNGJ) - Enagás, the Spanish gas grid and LNG terminals operator as well as a shareholder in the Trans-Adriatic Pipeline (TAP), posted first-half net profits of €213.1 million ($251.2M), with greater contributions from subsidiaries while total demand for natural gas in Spain increased by 6.3 percent in the first six months of 2021.

   The company said that the contribution to earnings from the US Tallgrass Energy pipelines unit and the TAP represented 40.4 percent of the total. Enagás said that since being commissioned at the end of 2020, the TAP pipeline that links Turkey with Italy through Greece and Albania had delivered 3 billion cubic metres of gas to customers through the end of June 2021.

Kuril Islands LNG

July 26 (LNGJ) - Russian Prime Minister Mikhail Mishustin said the Government and the Sakhalin Region of the Russian Far East were examining plans to supply liquified natural gas to the Kuril Islands. There is still a dispute between Russia and Japan over the status of the Kuril Islands, located between the Japanese island of Hokkaido at the southern end and the Russian Kamchatka Peninsula in the north. The volcanic archipelago comprises 56 islands taken over by the Soviet Union at the end of World War II and have since been considered as part of Russia.

   Mishustin said that Russia was considering supplying regasification and some power infrastructure to the Kurils to run on small-scale LNG shipments from Gazprom’s Sakhalin Energy LNG plant, which also supplies Japanese utilities. “LNG is probably the best option given the current global green energy requirements. This would be an excellent solution,” said the Russian PM in a statement.

Spain LNG station

July 23 (LNGJ) - Grupo HAM of Spain has opened another LNG filling station aimed at truckers at a strategic Spanish traffic location in Navalmanzano, Segovia, northwest of Madrid in Central Spain on the SG-332, next to the entrance and exit of the A-601, known as the Pinares highway.

   “The Gas Station allows LNG refuelling for all makes of trucks and keeps the liquid sub-cooled and adapts immediately to the optimal temperature of the trucks, including Iveco, Scania and Volvo,” explained HAM. “This allows for fast and safe refuelling with an innovative nozzle, designed by HAM, with a ‘nofrost’ system and a double anchoring and closing system, to avoid leaks, liquid losses and to facilitate its disconnection without emitting gas into the air,” stated HAM.

Charter rates steady

July 22 (LNGJ) - Shipping spot charter rates for LNG carriers were unchanged in the past week. Rates in the West of Suez market were quoted at between $67,000 per day and $63,000 per day for vessels of 155,000-165,000 cubic metres capacity.

   East of Suez spot charter rates were between $55,000 per day and $51,000 per day, according to London brokers. However, one-year charter rates for the most modern vessels increased slightly to be around $93,000 per day.

Perth LNG advance

July 21 (LNGJ) - Beach Energy, the owner with Japanese trading house Mitsui of the Waitsia natural gas field in the onshore Perth Basin of Western Australia, said development was on schedule along with marketing of future LNG volumes.

   “In the Perth Basin, along with our joint venture participant Mitsui E&P Australia, we are nearing commencement of construction of the gas facility for the Waitsia Gas Project Stage II, with contractor Clough on track to turn the first sod in the first half of 2022,” said Beach Energy Chief Executive Matt Kay in the quarterly activities report. Beach said it was continuing the marketing of its 50 percent share of the 7.5 million tonnes per annum of LNG expected from the Waitsia field and to be processed at the Woodside Petroleum-operated North West Shelf liquefaction plant.

 

LNG fuel charters

July 20 (LNGJ) - JFE Steel of Japan has signed long-term charter agreements with the three main Japanese shipping companies, Mitsui OSK Lines, NYK Lines and K-Line for three LNG-powered bulk carriers to transport iron ore and coal. The three 210,000 deadweight-ton bulk carriers are being designed and built by Japanese shipbuilder Nihon Shipyard, a joint venture set up by Imabari Shipbuilding and Japan Marine United. JFE Steel said the charters were part of a gradual switch to LNG-fuelled vessels in an efforts to reduce shipping emissions.

EDF gas trading

July 19 (LNGJ) - EDF Trading, a wholly-owned subsidiary of French utility and energy company EDF S.A., has named Alex Watson as its new Head of Gas Trading. Watson took up the role on July 19 and reports to Marcello Romano, Head of Trading. “I’m delighted to welcome Alex to EDF Trading,” said Marcello Romano.

   “He has extensive knowledge of the natural gas and LNG markets and will help us to expand our global gas footprint and the services we provide to the EDF Group and our third party customers,” added Romano. Watson joined EDF Trading from Freepoint Commodities where he was a Cross Commodity Trader. Prior to that, he was a European Natural Gas Trader at Citigroup.

Azul carbon offset

July 16 (LNGJ) - BP Gas Marketing is scheduled to deliver an LNG cargo on July 16 with purchased carbon offsets to the Sempra Energy-controlled terminal at Costa Azul on the Pacific Coast of Mexico. The facility is currently undergoing work to be transformed into an export plant. “Sempra LNG continues to build a strong business portfolio focused on sustainability and the global energy transition,” said Justin Bird, Chief Executive of Sempra LNG.

Charter rates drop

July 15 (LNGJ) - Shipping spot charter rates for LNG carriers declined by around $7,000 per day in the past week in the West of Suez market to be between $67,000 per day and $63,000 per day for vessels of 155,000-165,000 cubic metres capacity.

   For vessels East of Suez spot charter levels were also lower on the week by around $4,000 per day at between $55,000 per day and $51,000 per day, according to London brokers. However, one-year charter rates for the most modern vessels increased by about $2,500 per day to around $92,500 per day.

Mexico terminal starts

July 14 (LNGJ) - New Fortress Energy Inc. formally announced the start of operations at the LNG terminal in the port of Pichilingue in the northern Mexican state of Baja California Sur. “The delivery of more affordable and cleaner-burning natural gas is a significant milestone for Baja California Sur,” said Wes Edens, Chairman and Chief Executive of NFE. “Our facility will enable customers to significantly reduce emissions and costs by switching from oil-based fuels to natural gas,” he added.

   The Mexican terminal features NFE’s proprietary “ISOFlex” system, which allows larger LNG carrier vessels to transload LNG into ISO storage containers on offshore support vessels (OSVs) with a specialized manifold. “These ISO storage containers can be easily offloaded at container ports and onto trucks, which enables the reduction of time, permitting requirements and capital costs for the development of NFE’s terminals,” the New York-based company explained.

Shell LNG charters

July 14 (LNGJ) - Shell Tankers (Singapore) has signed agreements for a further six LNG ships with Knutsen LNG, Pan Ocean Co. and investors advised by JP Morgan Asset Management, taking the Anglo-Dutch major’s signed charter agreements for newbuild LNG carrier to a total of 24 vessels. The 174,000 cubic metres capacity carriers will be built by Hyundai Heavy Industries and Hyundai Samho Heavy Industries.

   Deliveries will be made from 2023. Shell said this order builds on the long-term charters Shell announced for eight ships of the same class in December 2019, six in August 2020 and four in December 2020. “These ships will be some 35 percent more efficient than required by the energy efficiency design index and 20 percent more than required by the annual efficiency ratio, delivering significant emission reductions for our time-charter fleet,” said Grahaeme Henderson, Global Head of Shell Shipping & Maritime.

EU cargo deliveries

July 14 (LNGJ) - Most LNG cargoes were pointed at Asia, though several were heading for Europe. The 211,885 cubic metres capacity Q-Flex carrier “Al Khuwair” is scheduled to deliver a shipment on July 22 to the Zeebrugge import terminal in Belgium from Ras Laffan in Qatar.

   The 137,500 cubic metres capacity vessel “LNG Rivers” was expected to discharge a cargo on July 25 at the Montoir-de-Bretagne terminal in Western France from the Bonny Island plant in Nigeria. The shipments were due as the Dutch Title Transfer (TTF)) natural gas price, the benchmark for Continental Europe, was at a seasonally elevated equivalent of $12.25 per million British thermal units.

Qatar-Korea supply

July 13 (LNGJ) - Qatar Petroleum and Korea Gas Corp., the South Korean utility and energy company, have signed a 20-year sale and purchase agreement for the supply of 2 million tonnes per annum of LNG to Korean terminals for a period of 20 years.

   The agreement was signed in the Qatari capital Doha between Saad Sherida Al-Kaabi, President and Chief Executive of Qatar Petroleum, and Hee-Bong Chae, the President and CEO of Kogas. The SPA signing took place almost 26 years after the first Qatar-Kogas LNG supply agreement. Qatar currently supplies Kogas with more than 9 MTPA of cargoes through long-term agreements, making it the largest supplier of LNG to Korea.

Q-Max LNG for UK

July 12 (LNGJ) - The 260,930 cubic metres capacity Q-Max LNG carrier “Umm Slal” is scheduled to deliver a cargo on July 18 to the UK South Hook import terminal at Milford Haven in Wales from the Ras Laffan plant in Qatar.

The shipment, lifted on June 27, is arriving in the UK as the National Balancing Point (NBP) natural gas price was at the equivalent of $12.50 per million British thermal units, just short of the 2021 summer season high of $12.90 per MMBtu.

SCF charters deal

July 9 (LNGJ) - Sovcomflot, the Russian shipping line with 31 gas carriers in operation or on order and an overall fleet of 145 vessels, has received confirmation from France’s TotalEnergies of the exercise of its option for two further next-generation 174,000 cubic metres capacity LNG carriers. “The vessels will be chartered for a period of up to seven years, operating within the TotalEnergies global LNG portfolio under the technical management of Sovcomflot,” said SCF.

   “The option was exercised under a contract between TotalEnergies and Sovcomflot signed earlier in 2021 for one sister vessel for delivery in the third quarter of 2023,” added SCF. The two chartered carriers have twin slow-speed X-DF engines, a hull-air lubrication system. They also have two shaft generators with electronic frequency converters and will provide significant fuel savings with the re-liquefaction system minimising Gas Combustion Unit usage.

Charter rates fall

July 8 (LNGJ) - Shipping spot charter rates for LNG carriers dropped by around $7,000 per day in the past week in the West of Suez market to be between $75,000 per day and $71,000 per day for vessels of 155,000-165,000 cubic metres capacity.

   For vessels East of Suez spot charter levels were also lower on the week to be at between $57,000 per day and $53,000 per day, according to London brokers. One-year charter rates for the most modern vessels increased by $5,000 per day to around $90,000 per day.

CNOOC LNG deal

July 7 (LNGJ) - Malaysian oil and gas company Petronas said the LNG division signed a 10-year deal to supply volumes to the trading unit of the Chinese major China National Offshore Oil Corp. “The deal is for 2.2 million tonnes per annum indexed to a combination of the Brent and Alberta Energy Company (AECO) indices,” said Petronas.

   The transaction between Petronas and CNOOC was given a value by the Malaysians of around $7 billion over the 10 years. “This long-term supply agreement also includes supply from LNG Canada when the facility commences its operations by middle of the decade,” said Petronas.

Senegal FLNG delay

July 6 (LNGJ) - Kosmos Energy, the Dallas-based company developing a natural gas and FLNG joint venture with UK major BP offshore Mauritania and Senegal in West Africa, has given an operational update on the project with a delay expected for first gas.

   “In Mauritania and Senegal, the Greater Tortue-Ahmeyim project continued to make steady progress during the quarter with key milestones achieved across all major workstreams,” said Andrew G. Inglis, Chairman and Chief Executive of Kosmos. “However, we are seeing cost inflation and supplier delays in the current environment together with some scope growth and, as a result, we are updating our estimates, with first gas now expected in the third quarter of 2023. Tortue is the right project at the right time with Phases 1 and 2 expected to deliver attractive returns in a strengthening LNG market,” Inglis added.

LNG cargoes for EU

July 5 (LNGJ) – Russian and US cargoes are still pointing at Europe as the natural gas benchmark price, the Dutch Title Transfer Facility (TTF), is at record 2021 levels for the Northern Hemisphere summer season. The 177,000 cubic metres capacity carrier “Boris Vilkitsky” is expected to deliver a cargo on July 8 to the Montoir-de-Bretagne import terminal on the Atlantic Coast of France from the Yamal plant in northern Siberia operated by Novatek, according to shipping data.

   Among other cargoes for Europe, the 154,880 cubic metres capacity vessel “BW Pavilion Vanda” is scheduled to deliver a US shipment on July 19 to Poland’s import terminal at the Baltic port of Swinoujście from the Corpus Christi export plant in Texas. The cargoes were heading for Europe as the Dutch TTF hit the equivalent of $12.45 per million British thermal units while the UK National Balancing Point natural gas price was around $12.30 per MMBtu.

Yamal maintenance

July 2 (LNGJ) - The Russian Yamal LNG export plant operated by Novatek in northern Siberia has planned a 19-day maintenance shut-down of the first liquefaction Train from August 1-19. “The regular maintenance is carried out in accordance with the approved annual schedule and will not affect the planned LNG production volume for the year,” said Novatek. Yamal has nameplate output of 17.5 million tonnes per annum for three Trains and with a fourth smaller Train producing 900,000 tonnes a year.

Spot charter rates

July 2 (LNGJ) - Shipping charter rates for LNG carriers in the spot market were firm in the past week in the West of Suez market at between $82,000 per day and $78,000 per day for vessels of 155,000-165,000 cubic metres capacity.

   For vessels East of Suez spot charter levels declined by around $6,000 per day to between $60,000 per day and $56,000 per day, according to London brokers. One-year charter rates for the most modern vessels increased by $3,000 per day to around $85,000 per day.

Stolt-Nielsen profits

July 1 (LNGJ) - Stolt-Nielsen, the London-headquartered Norwegian company with interests including terminals, shipping and the Avenir small-scale LNG business, said net profits from continuing operations increased to $10.3 million for the first half of 2021 compared with a loss of $7.0M in the same period of 2020. In addition to a growing vessel fleet, the company’s Avenir LNG joint venture has an 80 percent stake in the small-scale Italian terminal located at the port of Oristano on the island of Sardinia.

   The company’s Stolt-Nielsen Gas unit reported an operating profit of $100,000 compared with an operating loss of $2.1M for the six months ended May 31 “This was a result of an improvement in the share of profit (loss) in Avenir as two of their six newbuildings were delivered in late 2020 and early 2021 and are currently on time charter to third parties,” said the Stolt-Nielsen.

 

US LNG plant lease

June 30 (LNGJ) - Tellurian Inc., developer of the US Driftwood LNG plant in Louisiana, has exercised its long-term lease option with the Lake Charles Harbor and Terminal District on a 477-acre site. The ground lease agreement has an initial term of 20 years with extension options of up to 50 years.

   “Tellurian is taking necessary steps to prepare for Driftwood LNG construction by entering into this long-term lease and executing certain projects such as road improvements and utility relocation,” said Tellurian’s Executive Vice President and Chief Operating Officer Keith Teague.

Henry Hub price rises

June 29 (LNGJ) - US spot natural gas prices and futures soared and the New York Mercantile Exchange (NYMEX) front-month contract expired above $3.60 per million British thermal units. The Henry Hub spot price also jumped to $3.59 per MMBtu as a US heatwave led to record temperatures in the Pacific Northwest and spurred demand for cooling. The US benchmark prices affect LNG contracts linked to the Henry Hub. The rising US temperatures led to pipeline issues in some areas.

   Spot natural gas prices also continued to strengthen in other regions, reaching $7.00 per MMBtu in California. US weather forecasters expect the heatwave to reach the East Coast by July 6 and to last until at least July 12, resulting in high temperatures in most US regions and firm domestic gas-fired power demand.

Burckhardt passes test

June 28 (LNGJ) - Swiss company Burckhardt Compression said its Laby-GI Compressors for the MAN Energy Solutions M-Type Electronically Controlled-Gas Injection (ME-GI) engines has passed the one million operating hours mark. “The Burckhardt Compression Laby®-GI fuel gas compressor systems play an important role on LNG carriers,” explained the Winterthur-based company.

   “As the liquified natural gas warms up during storage and transportation, the evaporated boil-off gas must be economically managed by either using it as fuel or re-liquefying it,” explained Burckhardt. “Both dual-fuel engines as well as re-liquefaction plants, require a certain operation pressure, ranging up to 300 bar. Therefore, Burckhardt Compression’s LNG solutions have been specifically designed to handle gases at low temperature and high pressure while meeting the requirements for operation at sea,” it added.

LNG cargo financing

June 25 (LNGJ) - Pakistan is expecting to receive a $4.5 billion trade financing facility over three years from the Islamic Trade Finance Corp. (ITFC), a member of the Islamic Development Bank Group which provides member countries with funds from financial institutions in the Middle East. The funding is for LNG imports and also to cover shipments of crude oil and petroleum products.

   “A formal financing framework agreement, along with an annual financing plan of about $1.5Bln each year, will be signed early next week,” said a statement. The Saudi Fund for Development has already provided Pakistan with $531 million for the project financing of power plants.

Charter rates rise

June 24 (LNGJ) - Shipping charter rates for LNG carriers in the spot market rose again in the past week by around $8,000 per day in the West of Suez market to between $82,000 per day and $78,000 per day for vessels of 155,000-165,000 cubic metres capacity.

   For vessels East of Suez spot charter levels were up $6,000 per day to between $66,000 per day and $62,000 per day, according to London brokers. One-year charter rates for the most modern vessels also increased by $3,000 per day to around $82,000 per day.

Korean LNG fleet

June 23 (LNGJ) - Hyundai LNG Shipping Co. of South Korea, whose fleet comprises eight LNG carriers and one liquefied petroleum gas (LPG) vessel, has ordered another LNG tanker from the Korean shipyard of Daewoo Shipbuilding and Marine Engineering.

   The order was revealed by French storage technology firm GTT as the provider of the tanks. GTT said it had received an order from its partner DSME for the tank design of a new carrier for Hyundai LNG shipping. “The vessel will offer a capacity of 174,000 cubic metres and will be fitted with the GTT No. 96 GW membrane containment system,” said GTT. The vessel will be delivered at the end of 2023.

Cargoes for Spain

June 22 (LNGJ) - The European natural gas and LNG benchmark price, the Dutch Title Transfer Facility, increased to a 2021 high of $10.30 per million British thermal units as cargoes headed for Spanish ports from Russia and Nigeria. The 172,600 cubic metres capacity carrier “Christophe de Margerie” was scheduled to deliver a cargo on June 25 to the port of Bilbao in northwest Spain from the Yamal LNG plant in Russia, according to shipping data. Another cargo was due on June 25 at the Cartagena terminal in southeast Spain from the Nigerian plant at Bonny Island on board the 148,452 cubic metres capacity vessel “LNG Imo”.

Indian LNG buses

June 21 (LNGJ) - The southwest Indian state of Kerala is starting a trial of LNG-powered buses in the first stage of a possible nationwide roll-out. The LNG and the buses are being supplied to the Kerala State Road Transport Corporation (KSRTC) by Petronet LNG, owner of the Kochi import terminal in Kerala as well as India’s largest terminal at Dahej, north of Mumbai. The first service of the LNG-powered buses from the KSRTC’s central bus station at Thampanoor in Kochi will be flagged off by state officials. The KSRTC has already drawn up plans to convert several hundred diesel-fuelled buses to LNG.

Indian LNG appeal

June 18 (LNGJ) - The Chief Executive of India’s Petronet LNG, Akshay Kumar Singh, told a conference that the nation needed more regasification and other infrastructure to meet increasing natural gas demand. He noted that Petronet, operator of the largest terminal at Dahej north of Mumbai and the southwest Kochi facility in Kerala, accounted for a good proportion of the existing 42.5 million tonnes per annum of import capacity of the six operating terminals.

   Singh said India needed to increase its LNG import capacity to 155 MTPA, considering that utilization would be 80 percent, to supply the growing market. “LNG will play a major role in catering to this incremental demand and the share of LNG in natural gas consumption is likely to increase from the present 55 percent to 70 percent in the coming 9-10 years,” stated CEO Singh.

Charter rates up again

June 17 (LNGJ) - Shipping charter rates for LNG carriers in the spot market rose again in the past week by around $10,000 per day in the West of Suez market to between $74,000 per day and $68,000 per day for vessels of 155,000-165,000 cubic metres capacity.

   For vessels East of Suez spot charter levels were up $6,000 per day to between $60,000 per day and $56,000 per day, according to London brokers. One-year charter rates for the most modern vessels also edged higher to around $79,000 per day.

GasLog charter deals

June 16 (LNGJ) - LNG fleet owner GasLog Partners LP has signed two new time- charter agreements with major oil and gas companies Royal Dutch Shell and TotalEnergies. The deals include a one-year charter for the 155,000 cubic metres capacity “GasLog Sydney” with a subsidiary of TotalEnergies, beginning this week, as well as an approximately eight-month charter with Shell for the “Solaris”, also a vessel with 155,000 cubic metres of capacity and beginning immediately.

   “I am very pleased to announce these new charters with global energy majors,” said Paul Wogan, Chief Executive of GasLog Partners. “The agreements are at fixed daily rates of hire at returns in line with the historic long-term average, underscoring the strengthening LNG carrier spot market observed so far this year,” added Wogan.

Capital LNG delivery

June 16 (LNGJ) - Capital Gas Ship Management Corp. has taken delivery of a new LNG carrier, the “Aristarchos”, built by Hyundai Heavy Industries in South Korea. “With cargo capacity of 174,000 cubic metres, the vessel is highly efficient, propelled with XDF engines and equipped with the latest available technologies, including an air lubrication system and increased filling limits of more than 99 percent,” said Capital Gas.

   “It is the third of seven sister ships to be delivered between 2020-2023. The vessel has been chartered to Cheniere for a period up to six years,” said the Piraeus, Greece-based company. Capital Gas is a ship management service provide and currently manages a fleet of seven modern LNG carriers, four under construction and three trading.

Q-Flex for UK June 20

June 15 (LNGJ) - The 206,950 cubic metres capacity Q-Flex carrier “Al Aamriya” is scheduled to deliver a shipment on June 20 to the UK Dragon import terminal at Milford Haven in Wales from the Qatari export plant at Ras Laffan in the Gulf, according to the port authorities.

Russian LNG for UK

June 14 (LNGJ) - The “Boris Vilkitsky” with 177,000 cubic metres of capacity is scheduled to deliver a Russian LNG cargo on June 15 to the Isle of Grain LNG import terminal, operated by National Grid Plc, on the Medway-Thames estuary 45 miles southeast of London. The shipment, lifted on June 7 from the Yamal plant in northern Siberia, is arriving in the UK as the National Balancing Point (NBP) natural gas price was at the equivalent of $9.55 per million British thermal units. The Dutch Title Transfer (TTF)) price for Continental Europe was at the equivalent of $9.85 per MMBtu.

Charter price rises

June 11 (LNGJ) - Shipping charter rates for LNG carriers in the spot market rose again in the past week by around $5,000 per day in the West of Suez market to between $64,000 per day and $60,000 per day for vessels of 155,000-165,000 cubic metres capacity.

   For vessels East of Suez spot charter levels were unchanged at between $54,000 per day and $50,000 per day, according to London brokers. One-year charter rates for the most modern vessels edged higher to around $78,000 per day. 

Dutch TTF price up

June 10 (LNG) – The European natural gas and LNG benchmark price, the Dutch Title Transfer Facility, increased to a 2021 high of just over $10 per million British thermal units on June 10 as cargoes headed for European Union ports from Qatar and Russia. The 177,000 cubic metres capacity carrier “Eduard Toll” was scheduled to deliver a cargo to Rotterdam on June 12 from the Yamal plant in Russia, while the 173,400 cubic metres capacity “Ribera Del Duero Knutsen” was due to discharge a shipment from Qatargas on June 17 at the Bilbao terminal in northwest Spain, according to shipping data.

Singapore LNG deal

June 9 (LNGJ) - Pavilion Energy of Singapore and the UK major BP, through its trading arm in the Asian city-state, have signed a long-term LNG sale and purchase agreement (SPA) for the supply of around 800,000 tonnes of LNG per year to Singapore for 10 years from 2024. Beyond the supply of LNG to Singapore, both companies will strive to co-develop and implement a greenhouse gas (GHG) quantification and reporting methodology.

   “This agreement further strengthens our relationship with BP as Pavilion Energy advances our strategies for a lower carbon future, beginning with GHG emissions quantification, reduction and offsets for Singapore,” said Frédéric H. Barnaud, Group Chief Executive of Pavilion, a subsidiary of Singaporean wealth fund Temasek.

Q-Max LNG for UK

June 9 (LNG) - The 261,980 cubic metres capacity Q-Max carrier “Al Dafna” is scheduled to deliver a shipment on June 16 to the UK South Hook import terminal at Milford Haven in Wales from the Qatari export plant at Ras Laffan in the Gulf, according to the port authorities.

GTT patent ranking

June 8 (LNGJ) - French LNG storage tanks technology firm GTT was ranked first in the list of intermediate-sized companies (ETIs) issued by the France-based National Institute of Industrial Property (INPI) for patent applications, numbering 58 patents. In the ranking of the Top 50 patent applicants in all categories, GTT came in 30th place. “This ranking confirms GTT's strong capacity for innovation. With a research and development budget representing 10 percent of its turnover in 2020, GTT places innovation at the heart of its strategy, in all its activities,” said the company.

UK LNG deliveries

June 7 (LNGJ) - The Russian LNG carrier “Georgiy Ushakov”, with 172,000 cubic metres of capacity, is scheduled to arrive with a cargo on June 8 at the UK Isle of Grain LNG terminal on the Medway-Thames estuary southeast of London from the Yamal plant in northern Siberia. A second carrier, the 171,800 cubic metres capacity “Tessala”, is due at Grain LNG on the same day from the Algerian export plant at Arzew on the Mediterranean coast.

Colombia LNG study

June 4 (LNGJ) - Black and Veatch of the US, the Kansas-based supplier of LNG and energy equipment and solutions, has been selected to conduct a technical, engineering and commercial study for the Andes Energy Terminal project in the South American nation of Colombia. The gas-to-power venture would be centred on Buenaventura in Colombia’s Aguadulce Peninsula.

   “The study will build on commercial and technical work previously completed by the sponsors and focus on the development of an LNG regasification facility and 400 megawatts of natural gas-fired power generation for cities in central and southwestern Colombia,” said the company.

China LNG orders

June 4 (LNGJ) - French LNG storage tanks technology firm GTT has received another order for the design of two very large membrane full containment storage tanks from China’s Chengda Engineering. GTT will design the two latest generation tanks, each with a net capacity of 220,000 cubic metres.

   GTT said the order was part of the cooperation agreement between Beijing Gas and GTT related to the Tianjin Nangang LNG terminal project in northeast China. The two tanks are scheduled to be delivered to the Tianjin South Industrial Zone for Phase III construction in the second quarter of 2024.