Canceled LNG Project Casts Shadow over Canada's Biggest Shale Play
Petronas' decision to cancel its Pacific NorthWest LNG project is a blow to the growth outlook for Canada's largest shale play, eliminating a potentially huge source of future gas demand. Gas from the Montney shale play in western Canada would have supplied the C$36 billion ($28.7 billion) project in northern British Columbia. The project, majority-owned by Malaysia's Petronas, would then have shipped 12 megatonnes per year of liquefied natural gas to Asia. Instead, state-owned Petroliam Nasional Bhd (Petronas) subsidiary…
US LNG Exports to Increase: EIA
U.S. Energy Information Administration (EIA)'s latest Short-Term Energy Outlook projects that the United States will export more natural gas than it imports in 2017. The U.S. has been a net exporter for three of the past four months and is expected to continue to export more natural gas than it imports for the rest of 2017 and throughout 2018. The nation’ status as a net exporter is expected to continue past 2018 because of growing U.S. natural gas exports to Mexico, declining pipeline imports from Canada, and increasing exports of liquefied natural gas (LNG). The U.S.
ENI, Anadarko to Build LNG Terminals in Mozambique
Italy's ENI and U.S. oil and gas firm Anadarko signed agreements with the Mozambique government on Thursday to build two liquefied natural gas terminals in the southern African country. The terminals will be built in Cabo Delgado province, where Mozambique has made massive gas discoveries that could transform it from a poor African country into a major energy supplier to Asia. The agreements were signed by Mozambique's energy minister Letícia Klemens and the regional heads of ENI and Anadarko, a Texas-based oil producer. The two companies will separately build their own terminals, Klemens told a press conference.
Cheniere Energy to Open China Office
U.S. natural gas exporter Cheniere Energy Inc is setting up an office in Beijing to help it clinch long-term supply deals with Chinese buyers, four industry sources said. Cheniere, which held extensive talks with China earlier this year, will be the first operator of a U.S. liquefied natural gas (LNG) export facility to establish a presence in the country. The move follows an agreement in May between the U.S and China to boost trade under the so-called 100-day trade talks that will allow Chinese buyers to purchase long-term supplies from the U.S. directly.
Wison Granted AIP for Its Innovative Floating LNG Storage
Wison Offshore & Marine announced that it has received Approval in Principle (AIP) from Bureau Veritas for its newly-developed large-scale Floating LNG Storage and Regasification Terminal. Featuring scalable storage capacity up to equivalent size of a Q-Max, this is the first large-scale FSRU barge design that has been granted AIP by a classification society. It also marks that Wison is now capable of providing comprehensive range of FSRU solutions catering LNG import markets with various scales of demand. This full-size…
Sakhalin II LNG Export Plant Awards 3-cargo Tender
Russia's Sakhalin II liquefied natural gas (LNG) export facility has awarded its three-cargo tender to Royal Dutch Shell, Gazprom and Mitsui, trade sources said. The plant offered three October cargoes loading on Oct. 5, 7 and 15, they said. The companies are estimated to have paid about $6.30 per million British thermal units (mmBtu) per cargo, traders said. (Reporting by Oleg Vukmanovic)
Trafigura to Lift Angolan LNG Cargo
Commodity trader Trafigura purchased a liquefied natural gas (LNG) cargo offered by Angola's export facility through a tender, trade sources said. The cargo, which loaded on Aug. 7-9, attracted a price in the $6 per million British thermal units (mmBtu) range, they said. Reporting by Oleg Vukmanovic
Norway's Record July Gas Sales Could Lift Statoil Earnings
Norwegian gas sales hit a record July high, boosted by maintenance at British North Sea fields and the need to restock gas storage in Europe, which analysts said would deliver strong quarterly earnings for top producer Statoil. Total gas sales from Norway, Europe's second-largest supplier, rose to 10.6 billion cubic metres from 8.6 bcm in June and were 18 percent above official forecasts, the Norwegian Petroleum Directorate (NPD) said on Friday. Preliminary gas sales figures were the highest ever recorded for the month of July, it added.
Energy Capital-led Consortium to buy Calpine Corp
Debt-laden power producer Calpine Corp said it agreed to be acquired by a consortium of investors led by Energy Capital Partners for $5.6 billion. Calpine's shares were up 10.5 percent at $14.93 in premarket trading on Friday. The $15.25 cash per share offer, represents a 13 percent premium to Calpine's closing price on Thursday. The consortium includes billionaire industrialist Leonard Blavatnik's Access Industries and Canada Pension Plan Investment Board. U.S. power producers like Calpine have been hit by low wholesale power prices due to cheap natural gas, growth of renewable energy and subsidized nuclear generation in certain states.
Australia Risks Missing Next LNG Wave: Russell
Should the arrival of the last major piece of kit in Australia's $180 billion liquefied natural gas (LNG) spree be a cause for celebration or for a wake? It may seem that the arrival of the Ichthys Venturer floating production, storage and offloading facility would be worthy of breaking out the champagne. The vessel, which will be moored some 220 kilometres (132 miles) off the northwestern coast as part of Inpex's Ichthys project, is the final piece of the jigsaw that completes eight massive new LNG ventures. These projects…
Saudi Aramco Mulls Bids to Expand Gas Plant
Saudi Aramco has received bids from international engineering firms to expand the Hawiyah gas plant, industry sources said on Wednesday as the state oil giant continues spending to expand its core business. The companies that submitted their proposals on Sunday are: South Korean Samsung Engineering, Spain's Tecnicas Reunidas, Taiwan's CTCI, Italy's Saipem , Britain's Petrofac, India's Larsen & Toubro (L&T). South Korea's Hyundai Engineering and Hyundai Development Co Engineering & Construction (HDEC) bid together as a consortium. Saudi Aramco does not comment on rumour or speculation, it said of the report. Hyundai declined to comment.
Petrobras Authorized to Export Idle LNG Cargoes
Brazil's Petroleo Brasileiro SA has been authorized to export idle liquefied natural gas (LNG) in the spot market, according to the Wednesday issue of the official gazette. According to the text, Petrobras has been given the green light to export up to 6.6 million cubic meters, assuming this would not result in supply problems for the domestic market. As a state-controlled company, some of Petrobras' commercial strategies require energy ministry authorization. Petrobras operates three regasification terminals in Brazil, which were built in a time when the country was seeing high economic growth rates and natural gas consumption was strong.
Ichthys LNG Output Expected to Start by Year-end
Japan's biggest oil and gas explorer Inpex Corp expects gas production from the seabed for its offshore Ichthys liquefied natural gas (LNG) project to start from around the end of the year, a senior company executive said on Friday. Inpex in late April delayed the Ichthys start to the first quarter of next year, citing delays in the installation of offshore production facilities. The floating production, storage and offloading unit for the project finally set sail last month to the Ichthys gas-condensate field from Okpo, South Korea, and there is no further delay, Inpex's Senior Managing Executive Officer Masahiro Murayama said.
Novatek Expects 50 pct Capex Growth in 2018, 2019
Russia's largest non-state gas producer Novatek expects capital expenditure to rise by around 50 percent in 2018 and 2019, as it pushes ahead with plans to increase liquefied natural gas production, a company official said on Thursday. Novatek Chief Financial Officer Mark Gyetvay said on a conference call that capital expenditure is seen rising to 60 billion roubles ($1 billion) per year in 2018 and 2019 from 40 billion roubles this year. Novatek is aiming to produce as much LNG as the world's biggest exporter Qatar and is drawing up plans to build a second plant, known as Arctic LNG 2, on the Gydan Peninsula that juts into the Kara Sea.
African LNG Exports to Get Boost from Offshore Projects
Cameroon plans to begin exporting liquefied natural gas later this year using a newly designed offshore plant that analysts say could slash production costs and unlock African reserves not previously considered economically viable. West and Central Africa's Gulf of Guinea has seen a wave of new oil and gas exploration, particularly since Tullow Oil discovered Ghana's huge Jubilee gas field in 2007. But the cost of pipelines and onshore liquefaction facilities means that relatively few gas finds have been developed. However…
Wison Delivers FLNG Barge
Wison Offshore & Marine (“Wison”) has announced that the company has completed the final delivery for the world’s first barge-based floating natural gas liquefaction and storage facility (Caribbean FLNG). Prior to the delivery, the contracts for project financing provided by Bank of China, Deutsche Bank and supported by China Export & Credit Insurance Corporation have been officially signed, which laid a good foundation for the successful delivery of the project. Wison undertook the Caribbean FLNG project under an engineering, procurement, construction, installation and commissioning (EPCIC) contract with Exmar.
Shell Adjusts to Low Priced Oil, Even as Profits Soar
Shell 'getting fit' to live with oil at $40/bbl -CEO. Royal Dutch Shell is gearing up for a world of "lower forever" oil prices, its Chief Executive Ben van Beurden said on Thursday, after the company's profits tripled in the second quarter. The oil and gas industry has struggled with three years of weak prices while also facing the prospect of oil demand plateauing by the end of the next decade. But Europe's largest energy company was able to boost its profits more than expected, increase cash flow to $12.2 billion and reduce debt thanks to asset sales and as big savings introduced since the oil price collapse kicked in.
Petronas Scraps $29 bln Canada LNG Project
Decision widely expected after long delay, weak prices. Malaysian oil company Petronas has scrapped a proposed C$36 billion ($29 billion) liquefied natural gas (LNG) project in western Canada due to weak prices, in a blow to both its global ambitions and Canada's hopes of becoming a major LNG player. Pacific NorthWest LNG in British Columbia was meant to produce 12 megatonnes per year and spur further development of Canada's largest shale play, but industry observers said the move was widely expected given years of delay.
Saudi Expanded Gasline to Complete by Year End
Saudi Aramco will complete the first phase of an expansion of the main gas pipeline across Saudi Arabia by the end of this year, part of an effort to meet the kingdom's rising gas demand. The Master Gas System (MGS) was built in the mid-1970s to gather and process associated gas from oil wells for domestic industry. The world's top oil exporter is pressing on with gas-related projects to meet demand and save crude for export and refining. The pipeline expansion project will help deliver gas to the western region, including the King Abdullah Economic City and the Rabigh 2 independent power plant.
FSRUs Provide Better Return Than LNG Carriers - Drewry
Despite falling freight rates for floating storage regasification units (FSRUs), investment returns at current asset prices and charter rates are higher compared with standard LNG vessels, according to the latest edition of the LNG Forecaster report published by global shipping consultancy Drewry. The Drewry report said that the global FSRU fleet has grown at a CAGR of 21% over the last five years, and currently there are 24 FSRUs operational with an aggregate LNG import capacity of 82 mtpa. An additional 74 mtpa FSRU import capacity is under construction or in the planning stage.
Petronas Halts Western Canadian LNG Project
Malaysia's state-owned energy company Petronas will not proceed with a proposed C$36 billion ($28.8 billion) liquefied natural gas (LNG) project in western Canada because of weak global prices, the company said on Tuesday. The news is a heavy blow to Canada's ambitions to become a global LNG player. Of more than a dozen projects proposed for the west coast of British Columbia only the C$1.6 billion privately held Woodfibre project has been given the green light by its developers. Pacific NorthWest LNG was meant to produce…
Saipem Looks to Novatek Arctic LNG 2 Participation
Italy's Saipem is likely to get a sub-contractor role in a new project to produce liquefied natural gas (LNG) in the Arctic by Russia's Novatek, one of Novatek's partners said. Novatek, Russia's largest non-state LNG producer, is aiming to produce as much LNG as the world's biggest exporter Qatar and is drawing up plans to build a second plant, known as Arctic LNG 2, on the Gydan Peninsula that juts into the Kara Sea. Production is due to start in 2022-2023. Four sources told Reuters earlier this month that Saipem was expected to be chosen to build offshore platforms for the facility.
Global LNG Deals Set Bullish Tone as Peru Export Halt Tightens Market
Asian spot LNG prices stepped higher this week, shrugging off months of weakness, as Royal Dutch Shell replaced lost output from its Peru plant via spot markets and as a flurry of higher-priced deals surprised traders. Peru's liquefaction plant suspended loadings for several weeks without explanation, exerting strain on Shell, which is the sole exporter of Peruvian LNG and was forced to pick up replacement supply on spot markets. "Shell doesn't want to be exposed so they've been covering their positions, but I'm not sure that deal activity is reflecting end-user demand, which is a more sustainable price indicator," a trading source said.
Qatar Seeks to Open New LNG Markets with Floating Terminals
Qatar Gas Transport Company and Norwegian shipping business Hoegh LNG have embarked on a joint project to open new markets for Qatar to sell its liquefied natural gas (LNG) via floating import terminals. Hoegh LNG, a developer of floating LNG import terminals, expects to start work on the import terminal project in a matter of months, CEO Sveinung Stohle told Reuters. Stohle said Hoegh LNG and Qatar Gas Transport Company, which operates a large fleet of LNG tankers, are evaluating countries in which they could establish a floating terminal, naming South America and south-east Asia as attractive prospects.
Nakilat, Höegh LNG Ink MoU on FSRU project
Nakilat signed a Memorandum of Understanding (MoU) with Höegh LNG, exploring collaboration for Floating Storage and Regasification Unit (FSRU) business as part of its diversification strategy for opportunities and solutions to delivering LNG to the global markets, with FSRU being a leading-edge technology for the liquefied natural gas (LNG) market. Essentially a floating LNG import terminal, this technology has become a strategic solution for countries without LNG receiving terminal infrastructure, enabling better accessibility of clean energy.
Naftogaz to Sign Gas Deals with Vattenfall, Trafigura
Ukraine's Naftogaz plans to sign natural gas purchase agreements with Trafigura Trading (Europe) Sarl and Vattenfall Energy Trading GmbH as it expands supply from Europe. Kiev has looked to diversify away from Russian energy imports since Russia's annexation of Crimea in 2014. Naftogaz plans to sign an framework agreement with Vattenfall which will allow it to buy gas worth up to 105.9 billion hryvnias ($4.1 billion), a July 17 regulatory filing showed. Naftogaz will be able to buy gas worth up to 100.9 billion hryvnias under a similar deal with Trafigura, the filing showed. Naftogaz's press service declined to disclose details.
Saipem Looks to Novatek's Arctic LNG 2 Project Role
Italian energy contractor Saipem is expected to get a contract to build gravity-based platforms to liquefy natural gas at the Arctic LNG 2 facility, the second project of its kind by Russian gas producer Novatek , four sources said. Aiming to become as big as Qatar by LNG volumes produced, Novatek is drawing up plans to build its second LNG plant which it intends to locate on the Gydan Peninsula that juts into the Kara Sea. Reporting by Katya Golubkova and Denis Pinchuk
Statoil: Norwegian Arctic Gas Find Disappoints
Statoil has made a smaller-than-expected gas find in the Barents Sea near its Snoehvit gas field, the company said on Monday. The find at the Blaamann well is estimated to hold up to 3 billion standard cubic metres of recoverable gas. No oil was found. "We were exploring for oil and this is not the result we were hoping for," Jez Averty, Statoil's head for exploration in Norway and Britain, said in the statement. Statoil has a 50-percent stake in the licence, called PL 849. Its partners are Italy's Eni with 30 percent and Norway's Petoro with 20 percent. Statoil will exploit the gas via existing infrastructure for the Snoehvit field.
Petrobras Oil Output Rises in June
Brazil's Petrobras produced 2.2 million barrels per day of crude oil on average in June, a 0.6 percent increase over the prior month, the state-owned company said on Monday. Natural gas production rose 1.8 percent to 80.3 million cubic meters per day, Petrobras added. Total oil and natural gas production in Brazil reached 2.81 million barrels of oil equivalent per day, the company said. Reporting by Luciano Costa
LNG Prices Low on Oversupply
The Asian market for liquefied natural gas (LNG) remained subdued this week, weighed down by oversupply concerns and as the northern hemisphere exits its high demand summer season. Spot prices for Asian LNG <LNG-AS> were at $5.40 per million British thermal units (mmBtu), down 5 cents from a week ago. That's more than 70 percent below the $20.50 per mmBtu peak from February 2014. "Summer demand had been strong at this level (of mid$5/mmBtu). It's approaching shoulder months so prices are correcting," a Singapore-based LNG trader said. LNG deamnd weakens seasonlly during the shoulder season between the northern hemisphere's summer and winter.
US Natgas Output up in 2017, but Still below 2015 Record
U.S. dry natural gas production in 2017 was forecast to rise to 73.30 billion cubic feet per day (bcfd) from 72.29 bcfd in 2016, according to the Energy Information Administration's (EIA) Short Term Energy Outlook (STEO) on Tuesday. The latest July output projection was unchanged from EIA's forecast in June but falls short of the record high 74.14 bcfd produced on average in 2015. EIA also projected U.S. gas consumption would fall to 72.86 bcfd in 2017 from a record 75.11 bcfd in 2016. The 2016 high was the seventh annual demand record in a row.
Marsol Signs Two-Year OOCEP Contract
Marsol International, a UAE-based global marine solutions provider focused on the offshore oil terminal market and related infrastructure, has signed a two years contract with Oman Oil Company Exploration & Production LLC (OOCEP) for the provision and management of the marine and offshore activities related to the tanker loading, via the single point mooring (SPM) offshore marine terminal including maintenance works, vessels, equipment and manpower. The Musandam gas plant, located on the west coast of the Musandam Peninsula, has a processing capacity of up to 20,000 barrels of crude; 45 million cubic feet of gas and 75 tons of LPG per day.
Stena Drilling Extends Inspection Contract with Sparrows
Sparrows Group has been awarded a three-and-a-half-year extension to its inspection services contract for Stena Drilling’s global fleet of drilling vessels. The contract scope includes carrying out LOLER lifting gear surveys, potential dropped objects surveys, cargo carrying unit (CCU) and non-destructive testing (NDT) inspections as well as rig specific maintenance. As well as an extension to the contract, the scope has also been expanded to cover Stena’s entire fleet of seven vessels, including the Stena Don in Norway.
Qatar LNG Flows Unaffected by Crisis -Shell
Qatari exports of liquefied natural gas (LNG) remain stable amid ongoing tension between the world's biggest LNG exporter and its neighbours, an executive for Royal Dutch Shell said on Monday. "LNG flows remain stable, cargoes are going into the market," said Steve Hill, Executive Vice-President for Gas and Energy Marketing and Trading at Shell, one of the world's biggest LNG traders. "Qatar is a very credible and competent LNG producer," Hill said at an industry event in Istanbul. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut ties with Qatar on June 5, accusing it of backing terrorism. Doha has denied the allegations.
GLOBAL LNG: Prices Dip as Supplies Emerge
Asian spot LNG prices dipped this week amid a salvo of export tenders and tepid demand from North Asia. Spot prices for August delivery <LNG-AS> edged down 5 cents to $5.45 per million British thermal units (mmBtu) from week-ago levels, three trading sources said on Friday. Deal activity in the Asia-Pacific remains muted, forcing the market to use a recent ExxonMobil export tender for an end-July loading cargo from the Gorgon LNG project as a price reference, traders said. The Gorgon cargo, was likely sold slightly below mid-$5 level to a Chinese buyer, they added.
Petrobras to Shed Paraguay Assets
Brazilian state-controlled oil company Petróleo Brasileiro SA disclosed on Friday the initial terms for a plan to sell the entirety of its operations in Paraguay, according to a securities filing. Petrobras, as the firm is known, is planning to exit the natural gas distribution sector in Paraguay and sell hundreds of gasoline stations and convenience stores, the statement said. It will also look to sell its operations in three airports and a distribution unit near the Villa Elisa city. Reporting by Bruno Federowski and Luciano Costa
Saudi Aramco's 2016 Annual Review Shows Changes
Saudi Aramco <IPO-ARMO.SE> said on Thursday its recoverable crude oil and condensate reserves slipped to 260.8 billion barrels at the end of 2016 from 261.1 billion a year earlier. Its gas reserves rose to 298.7 trillion standard cubic feet from 297.6 trillion, Saudi Aramco said in its 2016 annual review. The company said it had discovered two new oilfields, Jubah and Sahaban, and one new gas field, Hadidah, all located in the Eastern Province, the main oil region in Saudi Arabia, the world's top crude exporter. Saudi Arabia's…
Hungary Joins Gazprom Pipeline, as Trump Touts US LNG
Hungary signed a deal with Russia's Gazprom to link the country with the Turkish Stream pipeline by end-2019 on Wednesday, a day ahead of President Donald Trump's trip to Poland, where he is expected to promote U.S. LNG exports. "This will improve Hungary's energy security a great deal, so it is in our strategic interest for this cooperation to start," state news agency MTI quoted Foreign Minister Peter Szijjarto as saying. Natural gas supplies to eastern Europe have been a major area of competition between incumbent pipeline power Russia and the United States…
U.S. Gas Rebalances as Power Returns to Coal
The U.S. natural gas market has rebalanced with higher prices steadying production while reducing demand from electricity generators and making room for increased exports. Higher prices have averted the stock crunch many analysts feared in 2017 as a result of rising exports and the start up of a large number of new gas-fired combined cycle power plants. During the first six months of 2017, prices for next-month delivery at Henry Hub were almost $1 per million British thermal units or 46 percent higher than in the first half of 2016.
Trump to Promote US Natgas Exports in Russia's Backyard
President Donald Trump will use fast-growing supplies of U.S. natural gas as a political tool when he meets in Warsaw on Thursday with leaders of a dozen countries that are captive to Russia for their energy needs. In recent years, Moscow has cut off gas shipments during pricing disputes with neighboring countries in winter months. Exports from the United States would help reduce their dependence on Russia. Trump will tell the group that Washington wants to help allies by making it as easy as possible for U.S. companies to ship more liquefied natural gas (LNG) to central and eastern Europe, the White House said.
Total Wins Iran Gas Field Deal
French oil major Total said on Monday it had signed a contract with Iran to develop the giant South Pars gas field, marking the first major Western energy investment since sanctions against Tehran were lifted. Total and the National Iranian Oil Company (NIOC) signed a deal to develop phase of 11 of South Pars, which is the world's largest gas field. The project will have a production capacity of 2 billion cubic feet per day or 400,000 barrels of oil equivalent per day including condensate, said Total, which also said the produced gas will supply the Iranian domestic market starting in 2021.
Rosneft May Build LNG Plant in Far East on Its Own
Russian energy giant Rosneft may build a liquefied natural gas (LNG) plant in the far east using exclusively its own resources and gas reserves, Rosneft vice president Vlada Rusakova said on Thursday. Rosneft and U.S. energy firm Exxon earlier announced plans to build an LNG plant in Russia's far east together. Rusakova said Rosneft's base scenario for monetising its gas reserves and those of its partners in the Sakhalin-1 project remained building an LNG plant together with Exxon. (Reporting by Katya Golubkova and Olesya Astakhova; Writing by Alexander Winning; Editing by Elaine Hardcastle)
OPEC Should Let Price 'Rebalance' Markets
The 1980s film “WarGames” contains an important lesson for OPEC and shale producers about the futility of trying to manage the oil market. Released in 1983, the movie blended new concerns about home computers and hacking with older concerns about the accidental start of nuclear conflict and mutually assured destruction. In the film, the U.S. Air Force's new war-planning computer, which displays an early form of artificial intelligence called Joshua, runs simulations for global thermonuclear war, trying to find a way to win. But the game becomes deadly serious when the computer seizes control of the U.S.
Europe to be Natural Gas Kingmaker
It's probably not quite here yet, but the trend is unmistakeable; the world is moving to a globally-linked natural gas market and the rise of liquefied natural gas (LNG) is the key driver. Much of the increase in LNG capacity is because of the rapid boost to plants in Australia and the United States, as both countries take advantage of abundant local reserves of natural gas to muscle in on a market that until recently had been dominated by a few established producers and buyers. But it is perhaps ironic that while the action on the capacity side of LNG is an Australian and American story…
China Cash Boosts African FLNG Projects
China aims to become lowest-cost seller of FLNG plants; its shipyards to build floating plants for African projects. China plans to pour almost $7 billion into floating liquefied natural gas (FLNG) projects in Africa, betting on a largely untested technology in the hope that energy markets will recover by the time they start production in the early 2020s. Western banks are wary due to the depressed state of the shipping and gas markets, as well as the technical difficulties of pumping gas extracted from below the ocean floor, chilling it into liquid form on a floating platform and transferring it into tankers for export.
Norway Increases Troll Gas Quota
Statoil has received a permit to increase gas output from its biggest gas field Troll by 3 billion cubic metres (bcm) for the 2017 gas year, which starts on Oct. 1, the company said on Tuesday. The production allowance was raised to 36 bcm from the current gas year's 33 bcm quota, the company added. Reporting by Lefteris Karagiannopoulos
Aker Solutions to Supply Umbilicals for Coral South FLNG
Aker Solutions was awarded a contract to deliver three umbilicals and associated equipment at ENI's Coral South project, Mozambique's first offshore field development. The work scope includes three steel tube umbilicals that will total more than 19 kilometers in length and connect the Coral South floating liquefied natural gas (FLNG) facility to the field's subsea production system. The umbilicals will be manufactured at Aker Solutions' plant in Moss, Norway, and are scheduled for delivery at the end of 2019. Discovered in 2012…
Lithuania Inks U.S. LNG Supply Deal
Lithuania's state-owned gas trader Lietuvos Duju Tiekimas (LDT) said on Monday it had signed a deal to buy liquefied natural gas (LNG) directly from the United States for the first time and expects to receive a delivery in the second half of August. The deal is with a unit of Cheniere Energy and is part Lithuania's efforts to diversify its gas suppliers and reduce its reliance on Russia's Gazprom. LDT, part of state-owned energy group Lietuvos Energija, signed a deal last year with Koch Supply & Trading for LNG supplies throughout 2017. Cheniere Energy was expected to supply LNG from a U.S. field, an LDT spokesman told Reuters.
Novatek Aims to Topple Qatar from LNG Top Spot
Russian gas producer Novatek aims to topple Qatar as the world's biggest exporter of liquefied natural gas as it gets closer to completing its first LNG project, a top executive said, batting away concerns about U.S. sanctions on the sector. The country's largest non-state gas producer is expected to start exporting LNG from the first phase of the Yamal project, situated far above the Arctic circle, towards the end of this year and may bring forward its final stage by six months, CFO Mark Gyetvay said. But it is the inception of Novatek's second…
KOGAS to Receive first Cheniere LNG Cargo
KOGAS to receive first LNG cargo from Cheniere in July; this marks start of 20-year supply contract. Korea Gas Corp (KOGAS) will early next month receive its first liquefied natural gas (LNG) cargo under a long-term supply deal with U.S. exporter Cheniere Energy, two sources at the South Korean company said on Friday. The 74,000-tonne LNG cargo was loaded from Cheniere's Sabine Pass export terminal in Louisiana and is scheduled to arrive at the port of Tongyeong, South Korea on July 2, one of the sources said. Both sources declined to be identified.
India's LNG Market to Reach USD 30.7bln by 2025
India Natural Gas and LNG market is expected to grow from US$ 19.7 billion in 2015 to US$ 30.7 billion by 2025 at a CAGR of 5.06% between 2016 and 2025. According to a report by Research and Markets, natural gas including Regasified Liquefied Natural Gas (R-LNG) in India has been widely recognized as the fuel with multiple promising aspects. The present situation of the gas sector in India is going through multiple challenging phase. Due to its high macroeconomic growth visions and increasing population, the country is facing major challenge in terms of growing energy demand and greenhouse gas emission.
UK Mulls Revisiting Oldest North Sea Blocks
Britain wants oil and gas drillers to recover pockets of gas that are more difficult to reach in a part of the North Sea where drilling for fossil fuels started over 50 years ago. Britain's oil regulator, the Oil and Gas Authority (OGA), said on Thursday that some 3.8 trillion cubic feet (tcf) of tight gas remain in the southern North Sea, one of the world's oldest offshore gas extraction areas that has produced more than 40 tcf. Drilling activity in Britain's North Sea has been at a record low for two years as weak oil prices make projects less attractive.
Golar, Delfin to Jointly Develop US FLNG Project
A joint development agreement between Delfin Midstream and Golar LNG Limited will see the two jointly develop the Delfin LNG project off the coast of Cameron Parish, La. The joint development agreement will facilitate the financing, marketing, construction, development and operation of Delfin LNG, the first and only permitted floating LNG (FLNG) export project in the U.S. Delfin LNG is a brownfield Deepwater Port requiring minimal additional infrastructure investment to support up to four FLNG vessels producing up to 13 million metric tons of LNG per annum.
Poland Halts Yamal Pipeline Gas Deliveries
Poland's state gas pipeline operator Gaz-System said on Wednesday the country has stopped taking in gas deliveries via the Yamal pipeline due to poor quality of gas and currently plans to maintain limits on gas transit until June 23. "Due to the poor quality of the natural gas, Gaz-System cannot receive gas deliveries for the domestic transit system at the joint connection point (PWP) on the Yamal pipeline," Gaz-System said in a statement. "Limits on the transit capacity ... are planned to be maintained until June 23, 0600 (local Polish time)".
Private Producer Aims to Ship Baltic's First Russian LNG Before Gazprom
LNG Gorskaya, a privately-owned Russian liquefied natural gas (LNG) producer, has launched a 340 million euro ($379 million) project to become the first LNG exporter from Russia's European coast, its CEO told Reuters. Russia expects to send LNG to Europe by the end of 2017 from its distant Arctic peninsula of Yamal but a plant on its Baltic coast could establish the country as a more immediate supplier of LNG in a region already dependent on piped Russian gas. The company will build a floating LNG plant off the port of Gorskaya, not far from Saint Petersburg, which will be fed by a 12 km pipeline from Gazprom.
Snam in Talks to Buy LNG Terminal Stake from Edison
Italian gas group Snam is in exclusive talks with EDF's Italian unit Edison to buy a stake in a liquefied natural gas terminal in northern Italy as part of plans to develop its LNG business, two sources said. Snam, controlled by state lender Cassa Depositi e Prestiti, is looking to buy Edison's 7.3 percent stake in Terminale LNG Adriatico and the gas pipeline that connects it to Italy's gas transmission backbone, the sources said. Adriatic LNG, which has a capacity of 8 billion cubic metres per year, is 70.7 percent owned by ExxonMobil and 22 percent by Qatar Petroleum. Exxon and Qatar have a pre-emption right on Edison's stake.
Qatar Tells US It Will Maintain Stable LNG Exports
Qatar's finance minister told U.S. Treasury Secretary Steven Mnuchin during a trip to Washington last week that Qatar was committed to maintaining stability around its exports of liquefied natural gas to the global energy market, according to a statement by Qatar's government communication office. "They discussed Qatar’s efforts to counter terror financing ... and Qatar’s commitment to maintaining stability around its exports to the global energy market," the statement said. Saudi-led sanctions imposed two weeks ago on Qatar…
Offshore Gas Safety atop the Agenda for Martek Marine
Maritime industry technology specialists Martek Marine say it is setting the bar high when it comes to offshore gas safety. The company has developed a first-of-its-kind gas sampling system for a new moored floating production unit, which forms part of the Jangkrik Complex gas fields development in Indonesia. The system has been developed to dramatically improve offshore crew safety through the use of advanced gas sampling technology. The worst offshore disaster in history, the Piper disaster on July 6, 1988, involved a series of gas explosions which destroyed the Piper Alpha oil platform in the North Sea, killing 167 men.
US LNG Going Global
The U.S. liquified natural gas (LNG) market is ripe with opportunity, according to American Action Forum (AAF). "When coupled with the tension surrounding Qatar (the largest exporter of natural gas in the world), this makes U.S. LNG production a very attractive option," said Kimberly VanWyhe is the Director of Energy Policy at the AAF. In 2016, LNG exports from the U.S. totaled 184,141 million cubic feet with a value of roughly $564 million. Currently the U.S. is exporting LNG to 23 out of 35 countries that can accept LNG transport vessels, a sharp change from this time last year. Last week, Taiwan received their first shipment of U.S.
Qatargas to Supply LNG to Shell
Qatargas and Shell have signed a memorandum of understanding (MOU) that will lead to the two companies jointly researching liquefied natural gas (LNG) logistics. Through this joint logistics research collaboration, Qatargas and Shell aim to develop new ways to optimize supply chains to deliver to LNG global markets. The research will be conducted at the Qatar Shell Research & Technology Centre at the Qatar Science & Technology Park. The MOU was signed by Faisal Al Suwaidi, Chairman and Chief Executive Officer of Qatargas Operating Company, and Andy Brown, Managing Director of Pearl GTL and Qatar Shell Country Chairman.
Greece, Israel, Cyprus to Speed up Mediterranean Pipeline Efforts
Greece, Israel and Cyprus said on Thursday they would speed up plans for the development of a pipeline channelling gas to Europe from newly discovered east Mediterranean reserves. European governments and Israel agreed in April to move forward with a Mediterranean pipeline project to carry natural gas from Israel to Europe, setting a target date of 2025 for completion. Europe is keen to diversify its energy supplies, and Greece wants to promote itself as a hub for the transit of gas from the eastern Mediterranean to the continent.
WPX forms JV to Develop Permian Assets
U.S. oil and gas producer WPX Energy Inc said it had agreed to form a joint venture with privately held Howard Energy Partners to develop oil gathering and natural gas processing infrastructure in the Permian basin. The joint venture will complete the construction of a pipeline, already started by WPX, and develop a new natural gas processing plant, the company said. The pipeline is designed to move about 125,000 barrels of oil per day (bpd), while the natural gas plant will have an initial capacity of 400 million cubic feet per day (MMcf/d). WPX said it would receive $300 million upfront in cash from Howard Energy.
OPEC: Oil Market to 'Rebalance' More Slowly
OPEC output jumps 336,000 bpd in May led by exempt producers. OPEC on Tuesday said a long-awaited rebalancing of the oil market was under way at a "slower pace" and reported that its own output in May jumped due to gains in nations exempt from a pact to reduce supply. In a monthly report, the Organization of the Petroleum Exporting Countries said its output rose by 336,000 barrels per day (bpd) in May to 32.14 million bpd led by a rebound in Nigeria and Libya, which were exempted from supply cuts because unrest and conflict had curbed their output.
Hedge Funds Turn Bearish on U.S. NatGas
Hedge funds have turned much more bearish towards U.S. natural gas prices after stocks built much more than expected at the start of the summer cooling season. Hedge funds and other money managers cut their net long position in the two main futures and options contracts linked to Henry Hub prices by 765 billion cubic feet in the week to June 6. Fund managers cut their net long position by a total of 1,349 billion cubic feet over the two weeks since May 23, after boosting positions by 1,721 billion cubic feet over the previous 12 weeks (http://tmsnrt.rs/2rRAYZa).
ConocoPhillips: Qatar LNG Project Not Affected by Arab Tension
ConocoPhillips said on Thursday that production and exports of liquefied natural gas from an investment project in Qatar have not been affected by growing Middle East diplomatic tensions. Saudi Arabia, Bahrain, Egypt and the United Arab Emirates on Monday cut ties with Qatar, accusing the country of supporting extremism. Qatar has denied the allegations. Concerns have grown that global access to Qatar's LNG could be cut, especially after some Persian Gulf ports said they would not accept Qatari-flagged vessels. Houston-based ConocoPhillips owns a 30 percent stake in an LNG project operated by Qatargas Operating Co Ltd…
Total Looks at Downstream to Spur Gas Demand
France's Total SA is looking to invest in gas and power infrastructure projects in Morocco and South Africa as it seeks to open new markets, the company's head of gas said on Thursday. Total will roughly double its liquefied natural gas (LNG) portfolio by 2020 to 15 million tonnes per year, but the company needs to look at deals that will give it footholds in new markets and capture new gas buyers, Laurent Vivier said. Morocco plans to build a project, worth up to $4.6 billion, which includes the import of up to 7 billion cubic metres of gas by 2025…
Victoria Mulls Floating LNG Plan
Australia's Victoria state is working with AGL Energy to study building a liquefied natural gas (LNG) import terminal to beef up local gas supply, even as the country is set to become the world's largest LNG exporter. Victorian Premier Daniel Andrews is under pressure to bolster regional gas supplies after barring all onshore gas drilling, as the southeast Australian state looks to save manufacturing jobs threatened by soaring energy prices. LNG exports from northeastern Australia - particularly the Gladstone LNG plant run by Santos Ltd - have been pulling gas out of the domestic market…
Equatorial Guinea Eyes New FLNG Plants
Equatorial Guinea, which is developing Africa's first deep-water floating Liquefied Natural Gas (LNG) platform, sees scope for another two similar platforms by December, the petroleum minister said on Monday. The former Spanish colony is developing the multi-billion dollar Fortuna floating LNG project in partnership with Ophir Energy and has selected seven companies for as many blocks in its 2016 licensing round, minister Gabriel Obiang Lima told delegates attending an African oil conference in Cape Town. (Reporting by Wendell Roelf)
Genel's Rothschild Quits as Turkey Gas Focus Grows
Departure follows that of Chairman Tony Hayward; Company now focused on Turkish gas market. Genel Energy co-founder Nathaniel Rothschild quit on Monday in the latest high-profile departure from the loss-making Iraqi Kurdistan oil producer, which is switching its focus to the Turkish gas market. The majority of the board of Genel, which also announced the exit of non-executive director Simon Lockett, is now made up of Turkish nationals after co-founder Tony Hayward, the former BP chief executive, and chief financial officer Ben Monaghan, an ex-JP Morgan banker, left in recent months.
BP, Eni Deepen Blockchain Trading in European Gas
Oil majors BP and Eni are deepening their foray into blockchain technology, starting to run blockchain trades in parallel with their live trading systems, according to developer BTL Group. The energy traders, together with Austria's Wien Energie, had previously tested BTL's Interbit blockchain platform over 12 weeks, carrying out trades in European natural gas. For example, the blockchain system found a discrepancy in the volume allocation of a trade of French gas sold by Eni to BP, eradicating a mistake that would have cost time at a later stage, a spokesman for BTL said. Eni and BP declined to comment.
Delfin Project Gains US Approval to Export LNG
The U.S. Department of Energy (DOE) has approved a long-term application to export liquefied natural gas (LNG) from the first offshore project, Delfin LNG, LLC. Exports in the amount of 1.8 billion cubic feet per day (Bcf/d) of natural gas are approved from Delfin’s proposed offshore Louisiana floating LNG terminal in the Gulf of Mexico. Development of the Delfin project offshore of Cameron Parish, La. will include the construction of floating liquefaction and storage vessels. Due to its offshore location, the environmental review of Delfin was led by the Maritime Administration (MARAD) and the U.S. Coast Guard. U.S.
BP, Rosneft Agree to Cooperate in Gas Business
Rosneft and BP have signed an agreement on strategic cooperation in gas and a Memorandum of Understanding (MoU) in respect to the sale and purchase of natural gas in Europe. The two companies agreed to develop integrated cooperation in gas and aim to jointly implement gas projects in Russia and abroad focused on gas exploration and production, LNG production, supply and marketing. Rosneft and BP also reconfirmed their mutual interest in cooperation in European gas marketing. According to the MoU, Rosneft and BP's wholly…
BP to Develop Gas Project offshore Trinidad
BP announces two major discoveries in Trinidad and Tobago; new project to offset BP's declining production in country. BP has given the go-ahead for its $500 million Angelin offshore gas field development in Trinidad and Tobago to help offset declining production in one of the company's main hubs. Drilling at the Angelin field, some 60 kilometres off the south-east coast of Trinidad in a water-depth of approximately 65 metres, is set to begin in the third quarter of 2018. First gas from the facility is expected in the first quarter of 2019, BP said in a statement.
LNG Sellers, Asian Buyers Spar Over Contract Terms
A spat brewing between Qatar, the world's No.1 producer of liquefied natural gas (LNG), and its biggest customers in Japan underscores rising tensions between buyers and sellers of the super-chilled fuel as a supply glut unbalances the market. Importers of LNG having been pushing for greater benefits amid the surplus, signing new, cheaper contracts that give them more flexible terms, while exporters try to preserve long-term supply deals written in their favour during tighter markets. Worried some buyers are becoming too bold in their push for an advantage…
Saudi Aramco Hiring in Singapore
The trading arm of oil giant Saudi Aramco is looking to step up hiring for its Singapore office as it pushes into the regional energy hub, three sources with knowledge of the matter said. The office aims to employ 10 to 15 staff by year-end after opening with one person in late 2015, said one of the sources. That would include operational, analytical and administrative workers. A spokesman for Saudi Aramco Products Trading Company did not answer calls from Reuters. "The main aim is for employees to support trading activities of the head office in Saudi Arabia," said the first source.
Golar FLNG Nearing Completion
Golar'LNG says that the FLNG Hilli Episeyo conversion is nearing completion. "The conversion of Hilli Episeyo is progressing to a tight but achievable schedule," said a company statement. All equipment has been installed and testing and precommissioning work is underway and will continue in Singapore until departure from the yard, which is expected to be in around six weeks. Seawater trials, storing-up and potentially LNG bunkering in Singapore will follow redelivery from the yard. A naming ceremony has been scheduled for July 2.
Chevron Resumes Gorgon LNG Train 1 Output
Chevron has restarted the first production line at its giant Gorgon liquefied natural gas (LNG) export facility in Australia following an outage, a company spokesman said on Wednesday. A failed measurement device in mid-May forced Chevron to idle Train 1 for repair and other routine work which was expected to last about a month. "Production from Gorgon LNG Train 1 has resumed," a spokesman said. "Trains 2 and 3 are running normally, and we continue to ship cargoes," he said. The three-train project can produce 15.6 million tonnes of LNG annually. Reporting by Oleg Vukmanovic
Adani's Carmichael Mine is Coal's Game-breaker
The world's biggest planned coal mine is once again lurching toward the finish line as India's Adani Enterprises moves ahead with a final decision on its Carmichael project in Australia. Even if Adani does approve the $4 billion thermal coal and rail project in central Queensland state, the venture is shaping up as a turning point for coal in Australia, with consequences for the industry across Asia. The first implication of the Carmichael saga is that it shows that major coal projects in Australia need subsidies from governments to be viable…
Total CEO: Iran Gas Deal Should be Done Before Summer
French oil major Total still plans to conclude the Iran South Pars gas deal before summer, its chief executive Patrick Pouyanne told journalists on the sidelines of the company's annual general meeting. Pouyanne said the signing of U.S. sanctions waivers, among other hurdles, cleared the path for the deal to be signed. Total said earlier in February that a final decision on the deal hinged on the new U.S. administration renewing the waivers. Pouyanne also added he had met Iranian oil minister Bijan Zanganeh in Vienna on the sidelines of the OPEC meeting. Reporting by Bate Felix
Sarawak State Govt Seeks Stake in LNG Train
Malaysia's Sarawak state government said it is negotiating with Petroliam Nasional Berhad to acquire a 10 percent equity stake in a liquefied natural gas (LNG) production facility at Petronas' LNG complex in Bintulu, Sarawak. The government is looking to buy a stake in the LNG Train 9 facility, the site's ninth liquefaction unit, which can produce 3.6 million tonnes of LNG per year. It began its commercial operations in January, boosting production capacity at the Petronas LNG complex to 30 million tonnes per year. "The…
Chile to Export Gas to Argentina to Cover Winter Demand
Chile will send some 276 million cubic meters of gas from June to Argentina to help its neighbor cope with demand in the southern hemisphere winter, Chile's state-run oil and gas distributor ENAP said Friday. Last year, Chile began sending liquefied natural gas to Argentina for the first time. Although energy investment in Argentina is increasing, it is still a long way from regaining the self-sufficiency it lost in 2010. Before the mid-2000s, it was an important supplier to Chile. The agreement would allow for the equivalent of around 3 million cubic meters to be piped daily from June 1 to Aug.
POSCO Seeks June LNG Cargo via Tender
South Korea's POSCO is seeking a liquefied natural gas (LNG) cargo for delivery on June 26 to 30 via tender, trade sources with knowledge of the tender said on Friday. The tender will close on May 22, the sources added. (Reporting by Mark Tay; Editing by Christian Schmollinger)
Oregon County Won't Block LNG Terminal
A coastal Oregon county overwhelmingly rejected a ballot measure aimed at blocking a proposed natural gas terminal dealing a blow to what was the latest in a series of efforts to thwart energy projects across the Pacific Northwest. The measure, had it passed, would have banned transport of fossil fuels not intended for local use through Coos County, located about 200 miles (322 kms) south of Portland. Around 76 percent of votes were cast against the measure, with 24 percent in favor, according to unofficial results posted on the Coos County government website late Tuesday.
Japan to Buy 100,000 Tons of LPG
Japan will likely conduct a tender in the autumn to buy up to 100,000 tonnes of liquefied petroleum gas (LPG) for national stockpiles, a trade ministry official with direct knowledge of the matter said on Tuesday. The fuel, often referred to as butane or propane, will be stored at a stockpiling base in Kurashiki in the country's west by the end of November. The step comes as Japan looks to boost its LPG state stockpile to at least 50 days' worth of national imports, or about 1.38 million tonnes. It wants to reduce the impact from any supply disruptions in the Middle East…
Oregon County Mulls LNG Terminal Ban
A coastal Oregon county will vote Tuesday on a ballot measure to block a proposed natural gas terminal, the latest in a series of efforts to thwart energy projects across the Pacific Northwest. The measure would ban transport of fossil fuels not intended for local use through Coos County, located about 200 miles (322 kms) south of Portland. Backers have called the initiative a response to a $7.6 billion proposal by Calgary-based Veresen Inc, to build a facility in the county where natural gas would be liquefied and transferred to tanker ships for sale abroad. They have cast the measure as a local refusal to contribute to global warming.
Pieridae Seeks Natural Gas Acquisitions, CEO Says
Pieridae Energy Ltd, the company behind a proposed liquefied natural gas terminal on Canada's east coast, is looking to buy producing assets in western Canada or in the Marcellus shale play in the United States, its chief executive said on Monday. Alfred Sorensen told Reuters in a phone interview that Calgary-based Pieridae wanted to buy about 200 million cubic feet a day of natural gas production to supply its terminal and would consider buying a company or just assets. Privately held Pieridae is developing the Goldboro LNG project in Nova Scotia, with a targeted in-service date of 2021 and capacity of 10 million metric tonnes a year.
Chevron Reports Outage at Gorgon LNG Plant
Chevron Corp has shut the first production line at its giant Gorgon liquefied natural gas (LNG) export plant in Australia and expects the outage to last about a month in order to replace a faulty device, a spokesman said on Monday. "Production on Gorgon Train 1 was stopped on May 12 due to a failure of a flow measurement device," the company said in a statement. "Train 1 is expected to be down approximately one month for this replacement and we will take this opportunity to perform other routine maintenance," it said. Chevron has struggled to maintain stable production at the $54 billion project…
Oil Firms, on Track for Biggest Gain in Five Weeks
U.S. oil inventories fell by more than forecast last week; OPEC-led production curbs expected to be extended. Oil prices on Friday were on track for their biggest weekly gain in five weeks, helped by expectations of an extension of OPEC-led output cuts and buoyed by falling U.S. crude inventories. Benchmark Brent was trading 5 cents higher at $50.82 per barrel at 1141 GMT, on target for a 3.5 percent rise on the week. U.S. light crude oil was up 2 cents at $47.85. A larger-than-expected fall last week in U.S. crude inventories <C-STK-T-EIA>…
ETP: U.S. Drilling Ban Won't Delay Ohio Gasline
Completion of the Rover pipeline, the biggest natural gas pipe under construction in the United States, is not expected to be delayed by a U.S. federal order to stop new drilling to install pipe, Energy Transfer Partners LP said on Thursday. The company spilled more than 2 million gallons of drilling fluid - mostly water and clay - in Ohio wetlands in April during construction of Rover, prompting regulators to halt drilling in certain areas. The line, once finished, will have the ability to carry enough gas to supply 15 million U.S. and Canadian homes.
Crowley to Supply LNG in Puerto Rico
Crowley Maritime Corp.’s liquefied natural gas (LNG) services group has been awarded a multi-year contract to supply additional volumes of containerized, U.S.-sourced LNG to a major pharmaceutical company’s manufacturing plants in Puerto Rico. The contract, executed through Crowley’s Carib Energy LLC subsidiary, extends a 2014 contract awarded to Crowley for LNG supply for the facilities by expanding LNG services to additional plants. The contract includes the fuel supply and transportation of LNG, which helps the customer yield substantially lowered emissions and provides an alternative to their current fuel source, diesel.
Noble Group's Shares Plunge, Elman Steps Down
Decline in shares is biggest on record. Noble Group Ltd reported a quarterly loss that pummelled its shares by a record 33 percent, stoking worries the Singapore-listed commodity trader was failing to recover from a crisis-wracked two years despite a deep restructuring. As previously flagged, founder Richard Elman, 77, said on Thursday he was stepping down as executive chairman to take on a non-executive board role as chairman emeritus. Board member Paul Brough, a former senior partner at KPMG, becomes executive chairman with immediate effect, and would lead a strategic review.
Egypt Weans Itself off Foreign Gas
Egypt seeking to defer up to 25 LNG cargoes this year-trade; talks with trade houses and producers ongoing. Egypt is holding talks with its liquefied natural gas (LNG) suppliers to defer contracted shipments this year and aims to cut back on purchases in 2018, as surging domestic gas production squeezes out demand for costly foreign imports. Cairo's desire for gas self-sufficiency by the end of 2018 bodes ill for traders having to reshuffle LNG out of the country amid concern over the impact on global gas prices if replacement markets for the world's eighth-biggest importer of the super-cooled fuel are not found fast enough.