Sunday, February 19, 2017

LNG Prices Slide as Supplies Emerge

File Image: a large LNG carrier at sea. (CREDIT: MISC)

Asian spot prices for LNG delivery in March fell during the week ended Feb. 10 on weak demand and steady supplies despite loading disruptions caused by bad weather at some Australian ports. Companies including U.S. LNG producer Cheniere Energy and Royal Dutch Shell were said by traders to be offering several cargoes over coming months, helping accelerate a downward trend in spot prices since January. Spot prices for March delivery were seen at around $7.20 per million British thermal units (mmBtu), 30 cents below the last assessment level, while April prices dipped below the $7 per mmBtu mark, traders said.

Coal Shortfall Buoys Miner Bottom Line

File Image (CREDIT: AdobeStock)

Coal prices have surged, topping oil, LNG, copper gains in 2016. Many a swan song has been sung for thermal coal markets as renewable power generation and a push towards using more natural gas have gained traction. Yet a coal price spike last year, driven by a Chinese change in regulation that capped local mining operations, has shown how easily markets can swing from oversupply to shortfall. While many analysts and investors see the long-term outlook for coal as bleak due to policies and technological advances that favour cleaner natural gas and renewable in power generation, its shorter-term prospects has seen a sharp reversal of fortunes.

Skangas LNG for Stormossen’s gas station

LNG tank-photo Stormossen

Skangas signed a contract with Stormossen, Finland, to deliver liquefied natural gas (LNG) to their first biogas station in Vaasa. Stormossen offer fuel both for the public transportation sector and for passenger cars. Skangas’ flexible delivery of LNG will form the back-up and secure Stormossen’s supply of biogas to their customers. For the new biogas station, Stormossen produce the biogas by the means of local waste. The biogas is sustainable, local produced and neutral as to CO2 emissions. It emits zero particles and close to zero NOx (nitrogen oxide) compared to diesel and petrol.

Europe Gas Use Down This Decade but Market Must Plan Long Term

Natural gas usage will struggle against cheaper coal in European power generation up to 2020 due to its pricing mechanisms, but the market should still plan for import growth from the next decade, experts at a German industry meeting said on Tuesday. Current gas fundamentals in the region are bearish again after a brief resurgence of gas-fired power last year, but with Europe's domestic production declining quickly, there should be no let-up in building infrastructure, they said. "The market can be relaxed about meeting demand over the next few years because of supply pressure," said Kirsten Westphal of Berlin-based think-tank SWP.

Argentina Awards LNG Tenders to Trafigura

Argentina's state-run energy company Enarsa awarded most of its liquefied natural gas (LNG) purchase tender for a portion of its 2017 needs to trading house Trafigura, trade sources said. Under the tender launched in January seeking 16 cargoes, Trafigura will supply 11, while rival trader Glencore and U.S. producer Cheniere will provide three and two shipments, respectively, the sources said. Supplies are for delivery between April and August. Transaction levels fetched a premium to gas prices at the UK's National Balancing Point trading hub…

Genel Energy Finalises Miran, Bina Bawi Field Documentation

Genel Energy plc has finalised documentation of previously agreed terms of Amended and Restated Production Sharing Contracts ('PSC's) and Gas Lifting Agreements ('GLA's) for both the Miran and Bina Bawi gas fields. The Amended and Restated PSCs and GLAs for Miran and Bina Bawi incorporate the commercial terms as announced in the term sheets signed in 2015 by Genel and the Kurdistan Regional Government ('KRG') and reiterated in the Appendix below. With the PSC and GLA terms formally confirmed, Genel will now be able to progress the project.

LNG Exports: US to Overtake Australia

Map:  Australian Petroleum Production & Exploration Association

Australia is America’s biggest competitor in the fast growing global LNG market, but the Pacific nation is struggling to realize its natural gas exporting potential. Over the next decade, what the International Energy Agency calls "footloose" U.S. cargoes will dramatically shake up global LNG trade, putting pressure on prices and forcing changes in how contracts are struck, says a report in Nikkei Asian Review. Cost overruns, delays, and technological hurdles have all slowed Australia down in its attempts to become the world’s premier LNG exporter.

Statoil to Close Mongstad Power Plant from 2019

Statoil will shut down its loss-making Mongstad gas-fired heat and power plant in Norway from the start of 2019, it said on Wednesday, as Nordic power prices are set to remain low for a decade. The 270-megawatt (MW) capacity plant supplies power and heat to Statoil's nearby Mongstad refinery, the biggest in the country. The refinery can also get power from the national grid. The plant will be closed as its agreement to purchase gas from the Troll field will be terminated at the end of 2018, Statoil said in a statement to the Nordic power exchange Nord Pool.

Gazprom’s exports to Germany jump 37%

Berlin, Germany Photo Gazprom

Issues relating to Russian gas exports to Germany were discussed during a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Brigitte Zypries, Germany’s Federal Minister for Economic Affairs and Energy that took place in Berlin today. It was noted that Gazprom’s gas supplies to the German market had reached a record of 49.8 billion cubic meters in 2016. The upward trend in gas demand continues in early 2017. In January, gas exports grew by 23.2 per cent versus the corresponding month of 2016. Between February 1 and February 15, gas deliveries added 37 per cent compared to the same period of last year.

Iran Berates Total for Gas Field Delays

Iran's oil minister has criticised French oil company Total for its decision to delay signing a contract to develop a gas field in southern Iran, saying that the reasons given by Total's chief executive were "unacceptable" to Tehran. Total was the first Western energy company to sign a major deal with Tehran since the lifting of international sanctions with its South Pars 11 project in the Gulf to develop a part of the world's largest gas field that Iran shares with Qatar. Total's chief executive, Patrick Pouyanne, said last week that it aimed to make a final investment decision on the $2 billion project by the summer…

Gazprom: Gas Exports to Europe, Turkey up 25 pct y/y

Russian gas exports to Europe and Turkey rose 25 percent year-on-year between Jan. 1 and Feb. 14 to 27.6 billion cubic metres, Kremlin-controlled Gazprom said on Wednesday.   It said gas supplies to Germany rose by 27.6 percent, by 53 percent to France, and by 109.8 percent to Austria in the period.   Reporting by Polina Devitt 

Edison: More Egypt Gas Awaits Discovery

The chief executive of Italian energy group Edison said on Tuesday he is confident more gas discoveries will be made in Egypt in the next three years.   Edison has signed a $86 million agreement with state-run Egypt Natural Gas Holding (EGAS) for natural gas and oil exploration in the Mediterranean, the Egyptian Petroleum Ministry said on Jan. 5. Reporting by Lin Noueihed 

Gazprom eyes Rival TAP Pipeline

TAP aims to reduce EU dependence on Russian gas, but Gazprom could gain access via open auction. Gazprom's bid to tap into a pipeline meant to wean Europe off Russian gas threatens to undermine a pillar of European energy policy and slow plans to develop rival deposits in the east Mediterranean. As the European Union struggles against the "iron embrace" of Russian pipelines, it has made opening a new Southern Gas Corridor to carry gas from Azerbaijan by 2020 a priority. The 10 billion cubic metre (bcm)-capacity Trans Adriatic Pipeline (TAP) is the project's end piece…

Petronas Mulls Relocating Canada LNG Project

Malaysia's state-owned oil firm Petroliam Nasional Bhd may consider relocating its Canadian liquefied natural gas (LNG) export terminal project, state news agency Bernama said on Monday quoting Chairman Mohamad Sidek Hassan. He said the company, better known as Petronas, would relocate the $27 billion Pacific NorthWest LNG project if the Canadian authorities find the move necessary. Petronas holds a majority stake in the project, which has come under fire from environmental groups and aboriginal communities who say it will increase greenhouse gas emissions and destroy a critical salmon habitat.

Gazprom, CNPC discuss gas supplies to China

Gas resources exploitation and gas transmission system development in Eastern Russia

Gazprom and CNPC held meeting of Joint Coordinating Committee to discuss the progress of the project for natural gas supplies from Russia to China via the eastern route. This was a regular meeting of the Joint Coordinating Committee (JCC) of Gazprom and CNPC that took place in Beijing. The meeting was moderated by JCC co-chairmen Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, and Wang Dongjin, Vice President of CNPC. It was noted that the project was running on schedule. In addition, the meeting participants addressed the companies’ collaboration with regard to underground gas storage and gas-fired power generation in China…

Höegh Joins Consortium to boost Pakistan LNG imports

Höegh LNG provides floating energy solutions and operates world-wide. Photo Höegh

Qatar Petroleum (QP), Total, Mitsubishi, ExxonMobil, and Höegh LNG today announced their commitment to advance a liquefied natural gas (LNG) import project in Pakistan in collaboration with Global Energy Infrastructure Limited (GEIL). The Consortium will seek to develop a project that includes a Floating Storage and Regasification Unit (FSRU), a jetty and a pipeline to shore to provide a timely and reliable natural gas supply to Pakistan. The FSRU will have a minimum regasification capacity of 750 million cubic feet per day by 2018. Commenting on this occasion, Mr.

Petrobras:P-66 leaves shipyard for Lula field

On Saturday (February 4), the floating production, storage and offloading vessel (FPSO) P-66 left the Brasfels shipyard in Angra dos Reis, Rio de Janeiro. It is now heading to the Lula Sul module in the Lula field, Santos Basin pre-salt, where it is expected to arrive in the next few days. The production system will come online after the vessel has been moored and the first production well has been connected. P-66 is the Lula Consortium’s first FPSO to be deployed in the Santos Basin pre-salt. It was assembled at the Brasfels shipyard in Angra dos Reis, where the equipment and systems were also tested.

Bernhard Schulte, Babcock Team-up to develop GSV Vessel

Logo

Bernhard Schulte Shipmanagement (BSM), a leading global maritime services company, and Babcock International Group, the UK’s leading engineering support services company, are collaborating to develop a ground-breaking Gas Supply Vessel (GSV). The 7,500m³ vessel, which will be used for the LNG fuelling of ships, including ferries, containers, cruise vessels and other shore-based gas consumers in the Baltic Sea, is the first vessel of its kind to utilise Babcock’s market leading FGSV0 technology. BSM and Babcock have developed…

BCCK Holding, SCF Partners join forces

Logos

BCCK Holding Company (BCCK) and SCF Partners (SCF) have entered into a strategic partnership whereby SCF will be providing growth capital for expansion opportunities for BCCK. Clark Butts, founder of BCCK, will continue as chief executive officer and as an owner of the business;and Greg Hall, executive vice president; Ben K. Friedman, chief financial officer; Matt Gillis, chief operating officer; and Chase Johnson,vice president ofmanufacturing,will continue to serve in management capacities and as new owners. BCCK is a leading international provider of engineering…

Uniper Hires Goldman to Sell Stake in Italy LNG Terminal

Germany's Uniper has hired Goldman Sachs to sell its stake in a liquefied natural gas (LNG) terminal in Italy, a deal that could value the whole business at 1 billion euros ($1.1 billion), three people familiar with the deal told Reuters. Books have been opened for due diligence on OLT Offshore LNG Toscana's business and a deal could materialise in the first half of 2017, the people said, also adding that there was no guarantee that a sale would take place. Energy firm Uniper holds a 48.24 percent stake in the OLT terminal, while Italian utility group Iren owns 49.07 percent.

Oil up as OPEC Cuts Outweigh U.S. Supply Build

U.S. stocks rise by larger than expected 6.5 mln barrels; production cuts by OPEC and Russia tighten market. Oil prices rose on Thursday as evidence that OPEC and other big exporters were cutting production outweighed a sharp rise in U.S. crude and gasoline stockpiles. Brent crude was up 50 cents at $57.30 a barrel by 1145 GMT after settling up $1.22 in the previous session. U.S. light crude gained 30 cents to $54.18 after climbing by $1.07 on Wednesday. Both crude oil benchmarks are now near the top of recent price ranges. Brent has spent most of the past two months trading between $53 and $58 a barrel, at a premium of around $2.50 to the U.S.

Vanguard Natural Files for Bankruptcy

Oil and natural gas explorer Vanguard Natural Resources LLC filed for bankruptcy protection, adding to a long list of energy firms that have succumbed to weak oil prices. The company said it signed an agreement with certain bondholders that includes a $19.25 million equity investment, with some debtors backing a $255.75 million rights offering. Vanguard also said it had obtained a $50 million debtor-in-possession financing facility, underwritten by Citibank NA, JPMorgan Securities LLC and Wells Fargo Bank NA. The financing…

Indian LNG Import Tax Halved

Indian Finance Minister Arun Jaitley. Photo: PIB, Govt of India

India, the world’s fourth-largest buyer of liquefied natural gas (LNG), has announced plans to halve its basic customs duty on imports of the chilled fuel. Indian Finance Minister Arun Jaitley presenting the Budget for 2017-18 in Parliament halved the import duty on LNG to 2.5 per cent, a move that will help cut cost of power and fertiliser production. "Considering the wide range of use of LNG as fuel as well as feed stock for petro-chemicals sector, I propose to reduce the basic customs duty on LNG from 5 per cent to 2.5 per cent," he said. The state of Gujarat will be the largest beneficiary of the reduction in the basic custom duty on the LNG.

Swedish Town Karlshamn Says 'Yes' to Gazprom Port Deal

Officials in Karlshamn in southern Sweden will allow Russia's Gazprom to use the city's port for the construction of its Nord Stream 2 gas pipeline after the government dropped its objections, the municipality said on Tuesday. The government had earlier expressed concerns about Gazprom's plans to use the port, but said on Monday the project did not threaten defense interests. Late last year, the island of Gotland rejected a similar deal to support the construction of the pipeline after the government expressed worries about national security.

Gasum: Turku biogas project design Moves Forward

The Ministry of Employment and the Economy (MEE) has granted an extension of a biogas plant in Turku Board of Directors spearhead project support was EUR 7.97 million. Gasum Oy's design for project portfolio includes the Turku Topinoja biogas plant extension for the production of biogas as well as refining and liquefaction plant construction

The Ministry of Employment and the Economy (MEE) has granted an extension of a biogas plant in Turku Board of Directors spearhead project support was EUR 7.97 million. Gasum Oy's design for project portfolio includes the Turku Topinoja biogas plant extension for the production of biogas as well as refining and liquefaction plant construction. As part of the project in the Turku region will be built for the needs of light to the road, two new biogas filling stations. The total value of the investment is EUR 26 million, in size. Turku whole project design work will commence immediately.

GTT Bags Order to Equip Höegh’s New FSRU

 GTT said it has received an order from Hyundai Heavy Industries (HHI) to equip a new floating storage and regasification unit (FSRU) with its Mark III cryogenic membrane containment system.   The vessel will be built at Hyundai's shipyard in Ulsan, on behalf of Höegh LNG Holdings Ltd. This FSRU will have a storage capacity of 170,000 m3. Delivery is scheduled in 2018.    Currently, four FSRUs built by HHI and equipped with the Mark III technology are in service.

Magnolia EPC contract extended

View of Magnolia LNG's terminal site and design rendering Photo LNGL

Liquefied Natural Gas Ltd (LNGL) informed that its 100% owned subsidiary, Magnolia LNG, LLC (MLNG or Magnolia), has agreed with KSJV to further extend the validity period of the signed engineering, procurement, and construction (EPC) contract through 30 June 2017. As previously announced on 26 April 2016, Magnolia and KSJV, a KBR – SKE&C joint venture lead by KBR, had extended their original binding lump sum turnkey (LSTK) EPC contract for four LNG trains and associated facilities until 31 December 2016, with a subsequent interim extension to 31 January 2017.

U.S. Natgas pipeline companies seek FERC decisions before Bay leaves

Commissioner Norman C. Bay, Photo FERC

Three U.S. natural gas pipeline companies on Friday asked the U.S. Federal Energy Regulatory Commission (FERC) for permission to move forward on their projects by Feb. 3, which is when one of the FERC commissioners will step down. Only one of the three companies, Nexus Gas Transmission, specifically said it was making the request for a certificate to build its pipeline because Norman Bay, the former FERC chairman, said he would step down at the end of next week. Bay said on Thursday he would leave his post after President Donald Trump appointed Commissioner Cheryl LaFleur as acting chairman.

Oversupplied Japanese LNG Players to Sell off Excess Volumes

© akiyoko / Adobe Stock

Asian spot LNG prices extended losses this week as oversupplied Japanese utilities sought to offload cargoes and as key European gas benchmarks softened. Asian prices for LNG delivery in March fell 25 cents to about $7.75 per million British thermal units (mmBtu), traders said, ranging from $8/mmBtu to about $7.60/mmBtu. Prices tailed off even more sharply into April, currently trading at around the $7/mmBtu mark, they said. One trader said utilities in Japan "have overbought due to warmer than average temperatures at the end of 2016 and the current cold spell doesn't look like it will last," leaving them stuck with larger inventories.

Australian LNG Projects Face Delays, Benefiting US Producers

Shell's Prelude floating LNG production vessel (Photo: Shell)

Australia's plans for a huge increase in its production of liquefied natural gas are being dealt a big blow by a series of production delays, as energy companies struggle with technical problems and cost overruns. The country is still likely to become the world's biggest LNG exporter, dispatching about 85 million tonnes a year by the end of the decade, up from 30.7 million tonnes in 2015 and 45.1 million tonnes last year. But the pace of growth is much slower than expected because of snafus and higher-than-expected costs that have delayed plans to start or increase LNG exports from four megaprojects…

Elengy Says Received Delivery of LNG Cargo at Fos

French terminal operator Elengy said on Thursday that it had received delivery of a cargo of liquefied natural gas (LNG) at its Fos terminal on Wednesday, and expected to receive six more deliveries in February. Elengy said it was the third cargo it had received in the month of January. The delivery could ease supply pressure in southern France where prices hit record highs last week and the spread with prices in the north widened further due to tight supply following a force majeure in Algeria. French southern gas hub contract was at 40.200 euros per megawatt-hour (MWh) on Thursday…

Zilift’s TorqueDrive Achieves Year's Production in US Well

Technicians at the company’s well installation in California Photo Zilift

Aberdeen-based Zilift, has achieved more than one year’s production from its TorqueDrive technology in a cyclic steam operated, previously sub economic, well in California. The achievement further underpins the company’s position as a leading energy sector developer of electrical submersible pumps (ESP) based on permanent magnet technologies. The system was installed in the side-tracked well, through 4 ½” liner and more than 21 degrees per 100 feet dogleg severity, in December 2015. Prior to this, there had been an extremely high equipment failure rate within the well, resulting in run lives being limited to three month or less.

Croatia FLNG Terminal Completion Delayed 12 Months

Croatia's floating liquefied natural gas terminal in the northern Adriatic will take a year longer to complete, Energy and Environment Minister Slaven Dobrovic told an energy conference on Wednesday. The capacity of the terminal, now expected to be finished in 2019, is seen at around two billion cubic metres of gas a year, with Croatia targeting central European markets as well as domestic. "Our current plan is to realise the project in 2019," Dobrovic said without elaborating further. Croatia had aimed to finish the project in 2018.

LNG Demand, Prices Surprise: Russell

File Image: (Credit MISC)

China's record imports of liquefied natural gas (LNG) in December, and the doubling in spot Asian prices in the past six months, appear to contradict the prevailing market view that supply is overwhelming demand for the super-chilled fuel. But while demand for LNG has definitely firmed in recent months, and not just from China, it's still likely the case that the wave of new projects will push the market into surplus - just perhaps not by as much as some observers had feared. Similar to other commodities, spot LNG prices in Asia <LNG-AS> surprised on the upside in the second half of 2016 and early this year…

Unique Completes On-Line Steam Leak Sealing

Ring Clamp Machining Photo Unique Group

Unique Group’s On-Site Engineering division, through its Wellube brand, effectively performed the On-Line Steam Leak Sealing for Abu Dhabi Gas Liquefication Company (ADGAS). The service was performed on the 2.4 meters OD heat exchanger flange leak along the pipeline. It’s design parameters were 434 degrees Celsius at 60 bar. ADGAS established in 1973, was the first LNG production company in the Middle East and North Africa region. It is known as a clean energy producer with a long history of reliability, expertise and a long-established tradition of environment awareness and concern.

Bumi Armada Achieves First LNG in Malta

Photo: Bumi Armada

Bumi Armada Berhad, Malaysia-based international offshore energy facilities and services provider has announced that its liquefied natural gas (LNG) floating storage unit (FSU), Armada LNG Mediterrana, has achieved its first LNG in Malta last week, on January 16, 2017. This project represents the company’s maiden floating LNG project and heralds the start of a partnership between ElectroGas Malta Limited (EGM) and Bumi Armada in delivering energy resource that leads to a lower carbon future, cleaner air in metropolitan areas, and a prosperous economic future for the people of Malta.

MLNG, VGS Sign HOA for sales to KGLNGT Terminal in India

Gregory M Vesey - Managing Director and Chief Executive Officer Photo LNGL

Liquefied Natural Gas Ltd (LNGL or the Company) has advised that its 100% owned subsidiary, Magnolia LNG, LLC (MLNG or Magnolia), has signed a Heads of Agreement (HOA) with Vessel Gasification Solutions, Inc. (VGS) in relation to the Magnolia LNG Project, in Lake Charles, Louisiana, United States (MLNG Project). The non-binding HOA provides for a 20 year Free-on-Board (FOB) Sale and Purchase Agreement (SPA) of up to 4 million metric tonnes per annum (mtpa). The obligations of the parties are conditional upon MLNG’s satisfaction…

Russia cut oil output by 100,000 bpd

Russia has cut its oil output by around 100,000 barrels per day (bpd) in January as part of the global deal between Moscow and OPEC, Russian Energy Minister Alexander Novak was quoted as saying by TASS news agency on Saturday. "That said, our companies are moving ahead of schedule. We planned to reach this levels in February," Novak said, according to TASS. He added that plans to discuss energy cooperation with his Saudi counterpart Khalid Al-Falih in Vienna. (Reporting by Katya Golubkova; Editing by Toby Chopra)  

Iraq's Basrah Gas output Soars

Pride in production Photo Basrah Gas Company

Natural gas output from the Basrah Gas Company, the main producer of the fuel in southern Iraq, rose to 765 million cubic feet per day, the Iraqi Oil Ministry said on Saturday. Basrah Gas output stood at about 700 million cubic feet/day on Jan. 12. Basrah Gas is a joint venture between Iraq state-run South Gas Co., Shell and Mitsubishi. The company captures and processes the gas associated with oil produced from fields in southern Iraq. (Reporting by Maher Chmaytelli; Editing by Toby Chopra)  

EcoGas efficiency proved by gas-fueled KAMAZ

Gas-fueled KAMAZ crew and Jean-Louis Schlesser, organizer of Africa Eco Race Photo Gazprom

The Africa Eco Race 2017 concluded in Senegal on January 14, 2017. The gas-fueled KAMAZ led by Sergey Kupriyanov finished among the top ten in the final standings. The 6,500-kilometer rally consisted of 12 stages. The timed sections such as the rocky plateaus of Morocco, the sands of Mauritania, and the savannas of Senegal made up most of the route, namely 3,800 kilometers. Far from every one of the 52 participating vehicles managed to cross the finish line, but the gas-fueled KAMAZ proved up to the challenge. It was the third African rally for the crew led by Sergey Kupriyanov.

MISC Berhad Names New LNG Carrier Seri Cenderawasih

Official Seri Cenderawasih Photo MISC

MISC Berhad today held the naming and delivery ceremony for its new LNG carrier, Seri Cenderawasih. The 150,200 CBM liquefied natural gas (LNG) carrier is the second in a series of five MOSS-Type LNG carriers ordered from Hyundai Heavy Industries Co., Ltd. (HHI”) by MISC. Upon their delivery, these new LNG Carriers will be on a long-term charter to PETRONAS. The naming ceremony was graced by the presence of Encik Md Arif Mahmood, Executive Vice President & Chief Executive Officer, Downstream Business of PETRONAS and was officiated by his wife and the vessel’s Lady Sponsor, Puan Nazrin Aneeza Nazaruddin at the HHI Shipyard in Ulsan, South Korea.

Tata to Invest in Swan LNG Project

Tata Realty and Infrastructure Ltd (TRIL) is taking 10 percent stake in a Rs. 5,900 crore ($867 mln) floating LNG import terminal being set up by Nikhil Merchant led Swan Energy in Gujarat. This will be the first investment by Tata Group in gas business. And this is the first investment decision since N Chandrasekaran named as the Tata Group chief. TRIL was established in 2007 to pursue opportunities in the real estate and infrastructure sectors. It is a wholly-owned subsidiary of Tata Sons, the holding company of the Tata Group.

FirstEnergy to Shed Pennsylvania Gas Plants

FirstEnergy Corp said on Thursday it would sell four gas-generating plants in Pennsylvania and portion of a Virginia hydroelectric power station to a unit of LS Power Equity Partners III LP for about $925 million.   The power stations, owned by FirstEnergy's units, have a total capacity of 1,572 megawatts (MW).   Akron, Ohio-based FirstEnergy's move comes as it shifts its focus to more regulated markets by selling or deactivating assets in highly competitive and less regulated markets.   FirstEnergy will own or control a total generating capacity of about 15,380 MW upon the closing of the deal. Reporting by John Benny

Chile Eyes Further Energy Exports to Argentina

Chile is looking at boosting energy exports to Argentina and connecting with electricity grids in neighboring countries, as it seeks to capitalize on friendly relations to drive down prices, the energy minister said Thursday. Chile, which has almost no hydrocarbons of its own and an energy-intensive copper mining industry, has struggled for years with high power prices. But a shift towards renewables and warming relations with neighboring countries is starting to take some of the pressure off. Last year, Chile began exporting gas to Argentina for the first time in order to meet elevated winter demand, sending 361 cubic meters.

Gunvor Wins Pakistan 5-year LNG Supply Deal

File Image (CREDIT: Parker Bestobell)

Commodity trader Gunvor has won a major tender to supply approximately 60 liquefied natural gas (LNG) shipments to Pakistan over a five year period, beating a host of rivals, while Italy's Eni will supply the country with LNG over a 15-year period, a Pakistani energy official told Reuters. Pakistan LNG launched a five-year supply tender and a 15-year tender last year to buy a combined 240 shipments of LNG, drawing a lot of interest from suppliers eager to sell gas in an oversupplied market. Gunvor supplied the lowest bid, expressed as a percentage of a barrel of crude oil, in the five-year tender of 11.6247 percent, the official said.

Gazprom brings Arctic Projects Onstream

Bovanenkovo – Ukhta 2 gas pipelines Map courtesy Gazprom

The ceremonial inauguration of new production capacities and the Bovanenkovo – Ukhta 2 gas trunkline has been held at the Bovanenkovskoye field. The event was attended by Alexey Miller, Chairman of the Gazprom Management Committee, and heads of Gazprom's specialized structural units, subsidiaries and contracting organizations. The ceremony featured an address by Russian President Vladimir Putin, who spoke via a conference call. A major gas production center, which is strategic to Russia's gas industry, was established and is currently developed by Gazprom in the Yamal Peninsula.

Höegh LNG Orders 4 FSRU from Samsung Heavy

Höegh Gallant. Photo: Höegh LNG

South Korea's Samsung Heavy Industries Co has won one firm Shipbuilding Contract (SBC) and an agreement for three optional  floating storage and regasification units (FSRUs) from Hoegh LNG Holdings. Under the deal with Norway-based Hoegh LNG Holdings Ltd., the shipyard will build the vessel by May 2019, the company said in a regulatory filing. Samsung has an option to build three more FSRU units, it said. Höegh LNG's President and Chief Executive Officer Sveinung J. S. Støhle said in a comment: "We are very pleased to have completed this agreement with SHI, a yard we know well as SHI built Höegh LNG's first two FSRUs.

Russia, Moldova resolve energy sector problems

At meeting. Photo Gazprom

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Igor Dodon, President of the Republic of Moldova, took place at the Gazprom headquarters to discuss cooperation in gas industry. The contracts for gas supplies to and gas transit across Moldova signed by Gazprom and Moldovagaz are valid until the end of 2019. The parties discussed the ongoing and future cooperation in the gas industry, focusing, inter alia, on Moldovagaz's business operations and Russian gas supplies to and transit across Moldova. In 2016, consumers in the Republic of Moldova received some 3 billion cubic meters of Russian gas.

Gazprom: Ukraine owes $5.3 bln for Unused Gas

Russian gas giant Gazprom said on Tuesday it had charged Ukrainian energy firm Naftogaz with a $5.3 billion bill for gas it did not buy under a take-or-pay clause.   Gazprom said the bill related to supplies in the second to fourth quarters of last year and that Ukraine had to pay the bill within 10 days.   Ukraine has not bought Russian gas since November 2015.   Take-or-pay requirements make consumers pay for gas whether they take physical delivery or not.   Reporting by Vladimir Soldatkin 

French Energy Transition Key to Security - IEA

France- Energy System Overview Courtesy IEA

In its latest country review of energy policies, the International Energy Agency (IEA) praised France for setting in motion significant reforms towards more secure, affordable and sustainable energy supplies and the green growth of its economy. Over the past ten years the French economy has reduced its carbon intensity and benefitted from greater energy efficiency, notably in the residential sector, according to the IEA report, Energy Policies of IEA Countries: France 2016 Review. The IEA praised France's leadership role in climate change mitigation and green finance around the world and at home…

Platts Launches Middle East LNG Price Marker

Commodity pricing agency S&P Global Platts will begin assessing prices for liquefied natural gas (LNG) delivered to the Middle East and Pakistan, reflecting growing imports into a region better known as an exporter, the company said on Monday. Demand for LNG in Dubai, Egypt, Jordan, Kuwait and Pakistan has grown close to tenfold since 2010 to 20.8 million tonnes per annum in 2016, with Egypt taking about one-third of those imports, according to Platts, a unit of S&P Global Inc. "The Platts Middle East Marker (MEM) price…

PetroVietnam, Exxon Mobil Ink Gas Generation Deal

State energy group PetroVietnam (PVN) signed an agreement with the Vietnamese unit of U.S. Exxon Mobil Corp on Friday to develop the country's biggest gas project for power generation, the state firm said. The Blue Whale project aims to produce the first gas for power plants by 2023. PVN said the project would contribute nearly $20 billion to the state budget, but it gave no timeframe for that contribution. Blue Whale is Vietnam's biggest gas project with an estimated 150 billion cubic metres of reserves. The signing took place during the visit to Vietnam of U.S. Secretary of State John Kerry.

US Shifts LNG Exports to Asia as Arb Opens Ip

Photo: Cheniere Energy

The biggest divergence between U.S. and Asian gas prices in a year has created an opportunity for tankers delivering liquefied natural gas, with most departures from a key Louisiana terminal in the last month-and-a-half heading toward East Asia, shipping data released on Wednesday show. The facility, Sabine Pass, owned by Cheniere Energy Inc, opened last year as the first LNG export terminal in the U.S. Lower 48 states. The United States has been exporting gas out of Alaska since 1969. U.S. gas prices at the Henry Hub benchmark in Louisiana this week dropped about 20 percent since hitting a two-year high on Dec.

Gazprom’s gas exports to Europe hit record 419.07 bcm

Portovaya compressor station, Nord Stream gas pipeline Photo Gazprom

According to the most recent data, Gazprom produced 419.07 billion cubic meters of gas in 2016, which was some 11 billion cubic meters more than planned and 0.57 billion cubic meters more than in 2015. We are always responsive to the market demand and extract as much gas as consumers need. However, our production potential exceeds the actual annual output by over 150 billion cubic meters. This allows us to rapidly boost gas supplies within and beyond Russia so as to meet consumption peaks during the winter months. Gazprom’s gas exports to Europe hit an all-time high for the gas industry in 2016, totaling 179.3 billion cubic meters.

CNOOC Diverted Two LNG Cargoes from Tianjin After Pipeline Fire

China's state-owned energy company CNOOC diverted two cargoes of imported liquefied natural gas (LNG) after a pipeline fire in northern China's Tianjin, though imports were normal as of Monday, traders with knowledge of the matter said on Tuesday. Reuters reported on Dec. 28 that a natural gas pipeline in Tianjin was closed after it ruptured and caught fire. Two sources with knowledge of CNOOC's gas operations in Tianjin said CNOOC diverted the LNG cargoes after the accident on the pipeline, which is connected to a domestic gas consumer.

JERA imports first US LNG into Japan

Courtesy JERA

JERA Co., Inc. announced that an LNG cargo produced in the contiguous United States (“US LNG”) has arrived at Joetsu LNG Terminal of Chubu Electric Power Company today. This is the first import of US LNG into Japan. JERA and Cheniere Marketing International, LLP have entered into a sale and purchase agreement for the cargo, which was loaded onto the LNG vessel Oak Spirit at Sabine Pass LNG Terminal in Louisiana, operated by Cheniere Energy Partners, L.P. on 7 December 2016. The voyage to Japan via the Panama Canal took about one month.

Gazprom Reports Record Gas Exports as Europe Shivers

Alexey Miller Photo Gazprom

Russia's Gazprom said on Saturday its daily supplies of natural gas to countries outside of the former Soviet Union have reached a record high due to cold weather in Europe. Gazprom pumped 615.5 million cubic metres of gas to countries outside the former USSR borders on Jan. 6, beating its previous record hit on Jan. 5 by nearly 1 million cubic metres. "We have reached a totally new level of gas exports in conditions of a cold snap, lower extraction volumes in Europe and higher demand for gas on the energy market," Gazprom's CEO Alexei Miller said in a statement.

JERA Imports Japan's First Liquefied Shale Gas Cargo from U.S.

File Image: an LNG carrier (CREDIT: Parker Bestobell)

Japan's JERA Co said on Friday it imported the country's first liquefied shale gas cargo from the United States as part of efforts to diversify its supply. This also marks Japan's first import of liquefied natural gas (LNG) produced in the contiguous United States. Japan previously had imported U.S. LNG only from Alaska. JERA, a fuel joint venture between Tokyo Electric Power and Chubu Electric Power, said the vessel Oak Spirit, which passed through the Panama Canal, arrived at Chubu Electric's Joetsu LNG terminal facing the Sea of Japan on Friday. JERA is the world's biggest importer of LNG.

Höegh LNG Makes Management Changes

SVEINUNG J. S. STØHLE, ​​​​President and Chief Executive Officer Photo Höegh LNG

Höegh LNG Holdings Ltd. (the "Company") announces a new organisational structure with effect from 15 January 2017. In order to further improve the Group's excellent operating performance, Höegh LNG will set up a new division, the Operations Division, which will be headed by the Chief Operating Officer, (COO), who will have responsibility for the technical and commercial management of all Höegh LNG assets in operation. Mr. Vegard Hellekleiv, previously Chief Technical Officer, has been nominated to the position of COO. Mr. Øivin Iversen, who until 2016 headed Höegh LNG's FLNG activities, will replace Mr. Hellekleiv as Chief Technical Officer.

Megastar's First LNG bunkering at Skangas Pori Terminal

Photo Skangas

To be completed at the Meyer Turku shipyard in late January, Tallink’s new liquefied natural gas (LNG) powered fast ferry M/S Megastar was bunkered with LNG for the first time at the newly opened Skangas Pori LNG terminal on January 4. Her maiden voyage will take place from Tallinn to Helsinki in late January. The ferry is fuelled with the cleanest available marine fuel LNG and is compliant with the new, stricter emission regulations of Emission Control Areas (ECAs) such as the Baltic Sea. The hull with unequalled efficiency was designed exclusively for Megastar by Meyer Turku Shipyard.

Wison Launches Floating LNG Power Plant Solutions

Photo: Wison

Wison Offshore & Marine has developed a range of solutions for floating power supply. With design philosophy of “plug-in power”, all products which are named W-FSRP series (Wison-Floating Storage Regasification and Power generation) feature integrated functions of LNG loading and storage facilities, regasification and power generation. The smallest unit starts at 10MW capacity, while the largest accommodates an 800MW power plant. As global awareness on environmental change increases, countries are looking for ways to improve their energy mix and reduce environmental footprint.

U.S. Gas Prices Tumble, but Market is Tightening

U.S. natural gas prices plunged on Tuesday amid forecasts that temperatures will be average or higher across most population centres by the middle of January. Earlier forecasts had predicted colder temperatures would persist through most of January, boosting heating demand. But the correction in gas prices comes after hedge funds had amassed unusually large bullish bets, helping drive prices up by more than 40 percent in the last two months. Once some of the frothiness caused by the big build up of hedge fund positions has been blown off, prices are likely to continue trending upwards in 2017.

DCP Midstream Partners to buy Philips-Spectra Assets

DCP Midstream Partners LP said on Wednesday it had signed a deal to acquire all the assets of a joint venture between Phillips 66 and Spectra Energy Corp. The deal will create the largest natural gas liquids producer and gas processor in the United States with an enterprise value of $11 billion. As part of the deal, the joint venture, DCP Midstream LLC, will pay DCP Midstream Partners (DPM) $424 million in cash and get 31.1 million DPM units. DPM will also assume $3.15 billion of DCP Midstream LLC's debt. DPM is managed by its general partner, DCP Midstream GP LP, which in turn is managed by an entity owned by DCP Midstream LLC.

Technip Bags Gas & Petrochemical Complex contract in Azerbaijan

Courtesy Technip

Technip has been awarded by SOCAR GPC a service contract for the ethylene and cryomax technology licenses respectively for a petrochemical complex and for the NGL(1) recovery section of a gas processing plant, which is part of a new gas and petrochemical complex, located in Garadagh, Azerbaijan. Technip has also been awarded a contract for the development of the process and engineering design of all the process units included in the gas and petrochemical plant*, as well as the design of the related utilities and off-sites. a new petrochemical plant including a steam cracker with a capacity of 610 KTA(3) of ethylene and 120 KTA of propylene.

Skangas, Statoil Pact for LNG Reload at Klaipeda

Photo: Klaipedos Nafta

Skangas signed an agreement with Statoil, the Norwegian oil and gas company, for a small-scale LNG reload to take place at the Klaipeda LNG Terminal in Lithuania. The reload will take place early January 2017. This will be the first reload conducted at the terminal and it is the first time Skangas source LNG from Statoil. Skangas eyes this a natural next step to further increase the support for the development of the small-scale market in Northern Europe. Adding this Terminal increases possibilities and competition, which also gives security of supply and all parties’ better opportunities.

GLOBAL LNG-Asian Spot LNG Prices at Two-year High

File image: a typical LNG carrier underway (CREDIT: DNV GL)

Spot LNG prices steady at near two-year high; cold weather, supply disruptions seen supporting market. Asian spot liquefied natural gas prices held steady at a near two-year high this week amid thin trade during the year-end holiday season. The price of LNG <LNG-AS> for February delivery to North Asia was flat at $9.50 per million British thermal units (mmBtu), trading sources said. Spot LNG prices in Asia are supported by cold weather and tighter supplies caused by outages at various plants such as Chevron's Gorgon project in Australia.

BP, PTT Sign LNG Deal

Global natural gas production grew by 2.2%, more rapidly than consumption but below its 10-year average of 2.4%.

BP and PTT Public Limited Company (PTT) entered into a sales and purchase agreement for liquefied natural gas (LNG). Under the agreement, BP will provide PTT with approximately 1 million tonnes of LNG per annum. The term of the agreement is 20 years. LNG supply will commence in 2017 and will be sourced from BP’s diverse portfolio of LNG, including the Freeport LNG Project in the USA. Paul Reed, Chief Executive of BP Integrated Supply and Trading, said: “BP is pleased to conclude this LNG sale and purchase agreement with PTT, with whom we have a longstanding relationship. Commercial terms of the agreement were not disclosed.

Skangas, Statoil Ink LNG Reload Deal

Skangas signed an agreement with Statoil, the Norwegian oil and gas company, for a small-scale LNG reload to take place at the Klaipeda LNG Terminal in Lithuania. The reload will take place early January 2017. This will be the first reload conducted at the terminal and it is the first time Skangas source LNG from Statoil. Skangas eyes this a natural next step to further increase the support for the development of the small-scale market in Northern Europe. Adding this Terminal increases possibilities and competition, which also gives security of supply and all parties’ better opportunities.

Putin: Gas Pipeline Will Boost Crimea's Economy

Russia on Tuesday activated a pipeline carrying Russian gas to Crimea with President Vladimir Putin hailing it as a step that would power economic growth on a peninsula Moscow annexed from Ukraine in 2014. Crimea has no land border with Russia, and Moscow has struggled to meet its energy needs, which were previously met by Ukraine. Moscow is also building a road and rail bridge to the peninsula and this year completed an electricity link. Crimea had suffered sporadic blackouts after unidentified individuals blew up power cables from Ukraine in November last year.

Delivering liquefied bio gas to Hafslund

Hafslund Heat is testing liquefied bio gas Photo Skangas

As part of its effort to find innovative ways to produce renewable district heat, Hafslund Heat is now testing liquefied bio gas (LBG) as an alternative to liquefied natural gas (LNG) at the Haraldrud heating plant. The plant received the first 20 tonnes of natural gas on Wednesday. Liquefied natural gas (LNG) currently plays a small, but nevertheless important, role in Hafslund Heat's district heat production. In 2015, the LNG consumption accounted for 0.5 per cent of the input energy in the district heat production in Oslo. LNG is used for peak loads on the very coldest days, but also as fuel during start-up of boilers based on other fuels.

Australian Industry Dependent on Natural gas

Gas use in manufacturing by sector landscape Image APPEA

Natural gas is both a source of energy and an essential raw material for manufacturing. Almost one-third of the gas consumed in Australia is used by manufacturers. Manufacturing in Australia is a $100 billion industry directly employing 890,000 people. About 225,000 people work in manufacturing sectors that rely heavily on gas; another 500,000 people work in related industries that do business with these manufacturers. non-ferrous metals (e.g. chemicals and polymers (e.g. non-metallic mineral products (e.g. glass, ceramics, cement, bricks) plastic packaging for foods and beverages.

Anadarko to Sell Certain Natural Gas Assets

Anadarko Petroleum Corp said on Wednesday it would sell certain natural gas assets in the Marcellus shale to a unit of Alta Resources Development LLC, for about $1.24 billion.   The Marcellus shale divestiture includes about 195,000 net acres, the company said.   Sales volumes from these assets totaled about 470 million cubic feet per day of natural gas equivalent at the end of the third quarter of 2016.   The mid-stream assets in the Marcellus owned by Western Gas Partners LP, Anadarko's sponsored master limited partnership, are excluded from the agreement. (Reporting by John Benny in Bengaluru; Editing by Shounak Dasgupta)

Wärtsilä Biohybrid plant for Germany

The Wärtsilä biohybrid plant represents a new and unique response to market needs Photo Wartsila

Wärtsilä has been awarded the contract to supply a biohybrid production plant to the German energy company, Erdgas Südwest GmbH. The new plant will produce both bioLNG (liquefied biogas) and LNG. The contract with Wärtsilä was signed in December, and delivery will be made on a fast-track basis. The Wärtsilä delivery will include the company's unique liquefaction system. Moreover, the system is specially designed to clean and liquefy both biogas and pipeline gas streams. In the process, the liquid is cooled to a temperature of minus 160° C before being stored in a fully insulated tank.

Total Buys Stake in US Gas Projects Group Tellurian

Meg Gentle, President and Chief Executive Officer Photo Tellurian Investments

French oil and gas major Total said on Tuesday it will buy a 23 percent stake in Tellurian Investments, a private U.S. gas projects operator, for $207 million as it pursues its drive to secure more downstream gas market share. Total, which is paying $5.85 a share for the stake, and Tellurian will jointly develop an integrated gas project, from producing gas in the United States to delivering liquefied natural gas (LNG) to international markets. "Investing in Tellurian at an early stage will give us the opportunity to potentially strengthen our mid- and long-term LNG portfolio thanks to a very cost competitive project…

Shell Sheds Showa Shell to Idemitsu

Shell has completed the sale of a 31.2% shareholding in Showa Shell Sekiyu K.K. to Idemitsu Kosan Co. Ltd. for approximately $1.4 billion. Completion follows anti-trust approval from the Japan Fair Trade Commission. The sale supports Shell’s strategic commitment to focus downstream activity on areas where it can be most competitive. Shell’s upstream, integrated gas, chemicals and trading businesses are not impacted by the sale. Japan remains an important LNG market for Shell.

Cyberhawk soars in Middle East market with oil and gas

Courtesy Cyberhawk

World leader in Unmanned Aerial Vehicle (UAV) inspection and survey, Cyberhawk Innovations, has reported another impressive year in the international oil and gas sector. Most recently, the company has secured a three year framework with Dubai Petroleum for UAV inspections across all of its offshore assets. The agreement, which has the option to renew on a yearly basis for two years, was awarded to Cyberhawk following the successful completion of work for Dubai Petroleum in 2015. The Middle East continues to be a lucrative market for UAV inspection as interest and confidence in the technology grows.

NOVATEK Signs MOU with Mitsui

LEONID V. MIKHELSON Photo NOVATEK

Taking the opportunity of the meeting between the President of Russian Federation Vladimir Putin and the Prime Minister of Japan Shinzo Abe, PAO NOVATEK (“NOVATEK”) signed a Memorandum of Understanding (MOU) with Mitsui. According to the MOU, the parties intend to pursue strategic cooperation in the upstream and liquefaction sectors in Russia, LNG and liquid hydrocarbons supply, equipment and technology supply as well as joint development of LNG markets. The Chairman of NOVATEK’s Management Board Leonid Mikhelson noted…

Novatek Inks Agreements with Japanese Companies on Gas

Novatek, Russia's second biggest gas producer, said on Friday it had signed agreements with Japan's Mitsui & Co, Mitsubishi Corp and Marubeni Corp to cooperate in liquefied natural gas and other energy sectors. Japan, lacking fuel resources, is the world's largest importer of the gas while Russia wants to boost its global LNG market share, currently less than 5 percent. Novatek's Chief Executive Leonid Mikhelson said the agreements focused on potential gas production, gas liquefaction and liquefied natural gas transport. Novatek is interested in LNG trading with the three Japanese trading companies, he said.

Peru Workers Plan Strike That Could Disrupt LNG Exports

Natural gas workers in Peru plan to hold an indefinite strike starting Dec. 29 that would disrupt production of the widely-used fuel as well as Royal Dutch Shell Plc's liquefied natural gas exports, the union SUTRAPPEC said Thursday. Some 200 unionized workers needed to operate Peru's Camisea gas fields will down tools to press Argentine energy company Pluspetrol to offer better wages and benefits in a new labor agreement, said SUTRAPPEC spokesman Juan Carlos Vargas. Pluspetrol owns a controlling stake - 27.2 percent - in the Camisea consortium that produces the vast majority of Peru's natural gas from a remote jungle region.

Total Joins SEA\LNG Coalition

Total, the world’s fourth-ranked international oil and gas company, has joined SEA\LNG, a multi-sector industry coalition created to accelerate the widespread adoption of liquefied natural gas (LNG) as a marine fuel. Total is a global gas player, involved across the entire LNG chain, from extracting natural gas onshore and offshore to processing plants where it is liquefied, stored and shipped in a fleet of specially designed carriers to regasification terminals for delivery to business customers. In 2015, the Group’s LNG production was of 10.2 million tons.

EIA report: Lower Prices Lead to Decline in Oil, Gas Reserves

Changes in proved reserves between year-end 2014 and year-end 2015 are summarized in the table

U.S. crude oil proved reserves declined 4.7 billion barrels (11.8%) from their year-end 2014 level to 35.2 billion barrels at year-end 2015, according to U.S. Crude Oil and Natural Gas Proved Reserves, Year-end 2015, released today by the U.S. Energy Information Administration (EIA). U.S. natural gas proved reserves decreased 64.5 trillion cubic feet (Tcf), a 16.6% decline, reducing the U.S. total to 324.3 Tcf at year-end 2015. The significant reduction in the average price of both oil and natural gas between 2014 and 2015 resulted in more challenging economic and operating conditions, an important factor in determining proved reserves.

Europe Could Absorb 40 bcm More Gas Annually - at Right Price

Level represents spare gas plant demand in six countries; gas generation margins recovered only briefly this year. Coal margins higher, ruled by global trends, EU CO2 policy. Europe's power industry could absorb around 40 billion cubic metres (bcm) of additional natural gas annually in coming years if gas prices fell against those of coal to lift generation margins, a study by German energy advisory Team Consult said. "Our core question was what is the potential of coal-to-power generation that could be replaced with gas," said Jens Voeller, head of the gas business unit of the Berlin-based company.

Eni Inks Gas Supply Deal with Sonatrach

Italian oil and gas group Eni said on Tuesday it had reached an agreement with Algeria's Sonatrach over gas supplies for the gas year 2016-2017. No financial details were provided. Eni, the biggest foreign oil and gas operator in Africa, said the agreement covered almost 20 percent of the gas imported into Italy. "I am particularly pleased with the closing of the renegotiation on the gas supply contract and the level of the strategic partnership with Sonatrach," Eni CEO Claudio Descalzi said. (Reporting by Stephen Jewkes

NextDecade in FSRU Deal with Flex LNG

Image: FLEX LNG Management

NextDecade Global Solutions, a subsidiary of NextDecade, LLC, and FLEX LNG have signed a Heads of Agreement (HOA) to create a full value chain solution for customers looking to purchase LNG from NextDecade’s Rio Grande LNG export project in Brownsville, TX. Initially, NextDecade and FLEX LNG will develop Floating Storage and Regasification Unit (FSRU) and dockside solutions for international customers of NextDecade’s, with the LNG supply also provided by NextDecade. The agreement will reunite two pioneers of the floating LNG business, NextDecade Chair and CEO Kathleen Eisbrenner and Jonathan Cook who will become CEO of FLEX LNG early next year.

Chevron Still Grappling with Gorgon LNG Outage

Chevron Corp's Gorgon liquefied natural gas (LNG) plant off western Australia still has one of its two production units shut around two weeks after first being taken offline, the company said on Monday. The latest in a string of outages to hit the $54 billion project since it started up in March has helped to propel Asian LNG spot prices to levels last reached in mid-2015. "Production from Gorgon LNG Train 1 remains on hold while we address some recent performance variations," a company spokesman said. Chevron did not indicate how long the shutdown would last. Exports from the plant's second production line, Train 2, resumed on Dec.

SCI Led JV Takes Delivery of LNG Carrier “PRACHI"

The joint venture partners comprising SCI, MOL, NYK and K-Line that owns MT Prachi, also operate the three vessels. Photo SCI

A Joint Venture comprising The Shipping Corporation of India Ltd. (SCI), Nippon Yusen Kabushiki Kaisha (NYK), Mitsui O.S.K. Lines, Ltd. (MOL), Kawasaki Kisen Kaisha, Ltd. (“K” Line), and Petronet LNG Ltd (PLL), have taken delivery of a new build Liquefied Natural Gas (LNG) carrier MT “PRACHI” having a capacity of 173,000 m3, from Hyundai Heavy Industries Co. Ltd. South Korea on 30th November, 2016. Simultaneously, the vessel has been delivered to Petronet LNG Ltd, New Delhi India’s first importer of LNG on a 19 year charter.

DSME, Kongsberg Maritime Join Forces

Tore Wean, Managing Director, Kongsberg Maritime Korea (left) and Mr. Young Bok Choi, Vice President at DSME Naval & Energy System R&D Photo Kongsberg Maritime

DSME and Kongsberg Maritime have signed a Joint Development Agreement (JDA) for a new LNG FSRU regasification control system. As part of the delivery scope for a vessel currently under construction at the Okpo shipyard in South Korea, DSME will develop a High Fidelity Dynamic Simulator for the regasification plant. The JDA, which was signed on 29th November 2016, enables DSME to utilise Kongsberg Maritime’s Dynamic Process Simulator ‘K-Spice’ and the ‘K-Chief’ automation and control system for the joint development of the vessel’s regasification control system. Both parties have extensive experience in the field of LNG vessel control systems.

Höegh LNG, SHI Ink FSRU Deal

Courtesy Höegh LNG

Höegh LNG Holdings Ltd. has signed a Letter of Intent ("LOI") for one firm and three optional FSRUs at Samsung Heavy Industries (SHI) in South Korea. The 170,000 m3 FSRUs have regasification capacity of 750 MMScf/day and full trading capabilities. The vessels have scheduled delivery dates of two units in 2019 and two units in 2020. Complete shipbuilding contract for the firm vessel is expected to be signed by mid-January 2017. President and Chief Executive Officer Sveinung J.S. Støhle says in a comment: "Last week we secured a new FSRU employment contract…

Hellenic Petroleum is Preferred Bidder for Greek Offshore Gas Drilling

Hellenic Petroleum has been named preferred bidder for an offshore gas drilling block in western Greece, the country's largest refiner said on Tuesday. Greece has made several fruitless attempts over the last 50 years to find big oil and gas reserves. It has stepped up its efforts in recent years, prompted by a prolonged debt crisis and important finds in other countries. Athens tendered 20 offshore blocks in 2015 in the Ionian Sea and south of the island of Crete for deep sea oil and gas drilling and unsealed the offers in February.

BP Acquires Repsol's Stake in Tangguh LNG Project

British oil company BP has acquired Spanish group Repsol's 3.06 percent stake in the Tangguh liquefied natural gas (LNG) project in Indonesia for $313 million dollars, a BP spokesman said on Monday. The purchase lifts operator BP's stake in the plant to a little more than 40 percent. The Tangguh plant processes 7.6 million tonnes of LNG a year. In June BP gave the go-ahead for the $8 billion expansion of Tangguh's third LNG train, one of only a handful of major investment decisions in the sector this year as companies trim spending in response to a protracted slump in oil prices.

John Kemps Asks: After Two Years, Why an OPEC Deal Now?

OPEC has finally agreed to cut production, but only after two years of fruitless negotiations. So what changed to make an agreement possible now, after it had eluded negotiators at previous OPEC meetings? The intense diplomatic manoeuvring behind the deal has been capably chronicled by my colleagues at Reuters ("How Putin, Khamenei and Saudi prince got OPEC deal done"), Bloomberg ("OPEC deal hinged on 2 a.m. phone call and it nearly failed") and the Financial Times ("Saudi prince's ambition for life beyond oil forces OPEC deal").

Mozambique O&G Contracts to be Signed Early Next Year

Mozambique's National Petroleum (INP) expects to sign new oil and gas prospecting contracts by early next year with the companies awarded rights to test for hydrocarbons across the country, an official said on Thursday. An INP official told a gas and oil summit in Maputo that the contracts would be finalised within 2 to 4 months with the companies that have been awarded the blocks. "We can say that there is progress as the meetings with the winning bidders have already begun. We expect it to last 2 to 4 months", the official said.