Arctic LNG 2 Output May Exceed Yamal Plant
Output at Arctic LNG 2 plant will be the same as at Yamal LNG plant or higher, Leonid Mikhelson, head of Russia's largest non-state natural gas producer Novatek, said on Wednesday. The first stage of Arctic LNG 2 plant construction will be accomplished in 2022-2023, Mikhelson said. Yamal LNG plans to produce 16.5 million metric tons of LNG and 1.2 million metric tons of gas condensate per year in 2019. (Reporting by Denis Pinchuk; Writing by Andrey Ostroukh)
Japan Eyes LNG Projects in Russian Arctic
Russian Energy Minister said on Wednesday Japan was interested in taking part in projects to produce liquefied natural gas in the Arctic. "Japan today shows its interest in increasing cooperation in the Arctic, including construction of a plant to produce liquefied natural gas," Novak said in comments shown on Rossiya-24 TV station. He didn't specify what was the project that Japan was interested in. Russian largest non-state gas producer Novatek said earlier it planned to build new facilities to produce LNG in the Arctic. (Reporting Vladimir Soldatkin)
Trump to Reverse Many Obama-era Climate Policies
U.S. President Donald Trump will sign an executive order on Tuesday to undo a slew of Obama-era climate change regulations, a move meant to bolster domestic energy production and create jobs, but environmentalists say the order is dangerous and vow to challenge it in court. The decree's main target is former President Barack Obama's Clean Power Plan, requiring states to slash carbon emissions from power plants - a critical element in helping the United States meet its commitments to a global climate change accord reached by nearly 200 countries in Paris in December 2015.
Asian Spot LNG Prices Slip on Weak Demand
Asian spot LNG prices fell this week on poor demand from major gas-consuming regions despite a slew of new purchase tenders. The May spot LNG contract fell by $0.25 cents to $5.40 per million British thermal units (mmBtu), with new production coming on stream in Australia and the United States. Analysts and traders mainly blamed low demand for driving prices lower. In the Middle East, Abu Dhabi was staying on the sidelines of the market and new solar power capacity in Dubai was eroding gas demand there. In Asia, imports by India, Argentina and China has lagged 2016 levels and South Korea needs less gas because of its new coal power plants.
Top LNG Buyers Form Alliance to Push for Flexible Contracts
The world's biggest liquefied natural gas (LNG) buyers are clubbing together to secure more flexible supply contracts in a move that further shifts power to buyers rather than producers. Japan, China and South Korea are the world's biggest LNG importers, accounting for about 55 percent of global purchases, according to data from energy consultancy Wood Mackenzie. The countries' biggest respective buyers are joining together to extract concessions from producers that would give them supply flexibility such as having the right to re-sell imports to third parties, something they are not allowed to do under so-called destination restrictions.
Australia in Talks With Gas Majors to Avert Local Shortage
Australian PM in crisis talks with gas majors; Australia faces gas shortage despite exports soaring. Australia's top gas producers, led by ExxonMobil Corp and Royal Dutch Shell, agreed to boost supply to the country's domestic market to help avert an energy shortage following crisis talks with Prime Minister Malcolm Turnbull. Australia is on track to become the world's largest exporter of liquified natural gas (LNG), yet its energy market operator has warned of a domestic gas crunch from 2019 that could trigger industry supply cuts and broad power outages. "We are a massive gas exporter.
Rosneft: Oil Output Cuts Might Not be Extended
Russian oil major Rosneft said on Monday there was a risk that a global oil output cuts deal would not be extended because of a lack of will on the part of the main participants and due to shale production dynamics in the United States. "We think that in the long term global oil demand dynamics and reduced investment during the period of ultra low prices will balance the market, but that the risk of a price war resuming remains," a company spokesman told Reuters. Reporting by Olesya Astakhova
Trump Won't Seek to Roll Back CA Vehicle Rules
President Donald Trump will announce the U.S. Environmental Protection Agency will revive a review of the feasibility of strict fuel efficiency standards through 2025, but will not seek to withdraw California's authority to set its own vehicle rules, a White House official said late on Tuesday. Reuters reported on Monday the administration planned to announce the review on Wednesday as Trump heads to Michigan, home of the U.S. auto industry. A White House official briefing reporters said the Trump administration will spend the next year working on the review to determine if the 2022-2025 model-year rules are feasible.
Trump Order to Ease Energy Rules Expected Tuesday
President Donald Trump will sign an order on Tuesday aimed at making it easier for companies to produce energy in the United States, administration officials said on Sunday. Under Trump, the U.S. Environmental Protection Agency is aiming to aggressively roll back Obama-era environmental regulations. Trump plans to sign the executive order at the EPA to reduce "unnecessary regulatory obstacles that restrict the responsible use of domestic energy resources," a White House official said. EPA Administrator Scott Pruitt told ABC's "This Week" the order would help reverse the Obama administration's anti-fossil fuel strategy.
ICE to Offer First US Gulf Coast LNG Futures Contract
With the United States about to become a net exporter of natural gas for the first time in 60 years, Intercontinental Exchange Inc said on Wednesday it would begin trading the first-ever U.S. liquefied natural gas futures contract in May. ICE said the contracts would be cash-settled against the Platts LNG Gulf Coast Marker price assessment and use Platts-derived U.S. GCM LNG forward curves for daily settlement purposes. The curves will have an initial term of 48 months. "Domestic and international market participants now have a risk-management solution that lays the foundation for a more effective means of hedging their spot and forward exposure…
Gail India Seeks First-half April LNG Cargo
Gail India launched a tender seeking a liquefied natural gas (LNG) cargo for delivery in the first-half of April, trade sources said. The tender, launched on Monday, follows two recent cargo purchases also for delivery in April. (Reporting by Oleg Vukmanovic, editing by Louise Heavens)
CFE Extends 2-Cargo LNG Tender Close by One Day
Mexico's state-run power utility CFE has extended the close of a buy tender seeking two liquefied natural gas (LNG) cargoes in April by one day to Wednesday, trade sources said. The deliveries are due to arrive at Mexico's Altamira terminal on the Atlantic coast. CFE just filled a separate tender for supply to the Manzanillo terminal on the Pacific, but it was not immediately clear which companies won that tender. (Reporting by Oleg Vukmanovic)
TransCanada Seeks Canada Pipe Approval for Petronas LNG Terminal
Transcanada Corp has secured shipper commitment for a pipeline for Malaysian state-owned oil company Petronas's Pacific NorthWest liquefied natural gas (LNG) terminal in western Canada and will seek approval for early construction, the company said on Monday. TransCanada was previously granted approval for the North Montney Mainline pipe on condition of a positive final investment decision from Pacific NorthWest. The approval TransCanada is seeking will allow the company to start building most of the pipe before such a decision, TransCanada said. (Reporting by Ethan Lou)
Gazprom: Gas Exports to Europe, Turkey up 17.7% Y/Y
Russian gas exports to Europe and Turkey rose 17.7 percent year-on-year between Jan. 1 and March 15 to 42.9 billion cubic metres, gas giant Gazprom said on Thursday. (Reporting by Jack Stubbs; Editing by Susan Thomas)
Maersk Needs Quick Deal to Avoid Tyra Shut Down
Carsten Sonne-Schmidt, chief financial officer of Maersk Oil, a unit of Danish conglomerate A. "That means we will see a fast decline in gas production. "It's a win-win situation.
Will LNG Remain a Key Energy Source?
Japan imported 8.3 million metric tons of LNG in January, an increase of 1.06 million metric tons compared to the previous year. The data, released by the Japanese Ministry of Finance, also reveals that the amount the country pays for LNG imports had increased by 6.7 percent since 2015. Japan is one of the largest LNG importers in the world and it is expected that gas and LNG will continue to remain a key energy source in the future. The nation’s reliance on LNG rose in 2011 following the closure of the country’s nuclear reactors, and as these latest figures show, has continued to increase since then.
Trump to Announce Emissions Rule Review
U.S. President Donald Trump is expected to visit the Detroit area on Wednesday to hold an event with the chief executives of U.S. automakers to announce a restart of a review of vehicle fuel efficiency rules sought by the industry, according to two sources briefed on the matter. Trump is expected to visit Ypsilanti, Michigan, a Detroit suburb, to tout his administration's decision to revive a review of the feasibility of the 2022 through 2025 vehicle emissions rules, after the Obama adminitration moved in its final days to lock in the rules.
Gazprom delays Baltic, Sakhalin LNG projects
Eurobond prospectus seen by Reuters; new Baltic LNG plant to be commissioned in 2022-2023. Russia's Gazprom has delayed liquefied natural gas (LNG) plans on Sakhalin island and in the Baltic Sea, a Eurobond presentation showed on Monday. The delays could disrupt Russia's plans to carve out a bigger share of the global LNG market, where it aims to triple its market share of less than 5 percent by 2035. Gazprom plans to expand the Sakhalin-2 project off Russia's Pacific coast by 2023-2024, the presentation showed, while previously it had announced plans to launch a third LNG production train there in 2021.
Nord Stream 2 not a Common Interest Project - EU
The Nord Stream 2 gas pipeline which aims to bring Russian gas to Germany under the Baltic Sea is not a "project of common interest" to the EU, the European Union's competition commissioner said on Monday. "On the legal side of things, it has become very clear that the Commission does not find that the Nord Stream 2 project will be a project of common interest," EU Competition Commissioner Margrethe Vestager told a news conference in Brussels. She was repeating the Commission's view that the project does not serve the EU's efforts to reform the energy market in the bloc and reduce dependence on Russian gas.
Singapore’s shipyards are looking to recent investments in capacity, design and newly acquired technology to combat order declines after a decades-long offshore buildup. Sembcorp and peer Keppel are making the most of partnerships in FLNG and showing signs they’ll be okay through the downturn, helped by their gas-hungry Australasian backyard and renewed ties with old charterer parties and suppliers. With drilling contractors unable to pay for the offshore rigs they’ve ordered, Singapore’s heavyweight yards have had to defer deliveries and become defacto rig owners.
Exxon to Buy Offshore Mozambique Gas Stake
Exxon Mobil Corp said on Thursday it would buy a 25 percent stake in a natural gas-rich block, offshore Mozambique, from Italy's Eni for $2.8 billion in cash. The offshore gas reserves discovered by Eni in Mozambique are large enough to need a giant liquefied natural gas (LNG) export plant. The east African nation's proximity to Asian and Middle Eastern growth markets could make it a highly lucrative project. Eni will continue to lead a floating LNG project and all exploration and production in the block, Area 4, while Exxon will lead the construction and operation of natural gas liquefaction facilities onshore.
Statoil Sets Greenhouse Gas Emissions Goals
Norway's Statoil set a goal on Thursday to cut its annual carbon dioxide emissions by three million tonnes by 2030 from 2017 levels and become more efficient as part of efforts to combat climate change. The company said would also seek to reduce its emissions per barrel of oil produced to 8 kg by 2030 from 10 kg and step up investments in renewable energy research. Statoil emitted the equivalent of more than 15 million tonnes of carbon dioxide in 2016, roughly a quarter of Norway's total emissions. "Statoil is committed to developing its business in support of the ambitions of the Paris agreement…
Algeria to Renew LNG Deal with France's Engie in March
Algeria's state energy company Sonatrach will renew a deal with French gas and power group Engie to supply 10 billion cubic meters of LNG per year, a source at Sonatrach told Reuters on Wednesday. The signing ceremony will take place in France, likely before the end of March, and Algeria's Energy Minister Nouredine Bouterfa will attend, the source said. No further details have been provided on the length of the contract, which will replace one that has just expired. But Sonatrach's CEO Amine Mazouzi said recently that new contracts will be for at least 10 to 15 years but no longer than 20 to 25 years.
Italy's 15-Cargo LNG Buy Tender Attracts Competitive Bids
A tender to supply Italy with about 15 liquefied natural gas (LNG) cargoes between April and September attracted highly competitive winning bids from traders including Gunvor, Trafigura, MET and Uniper, trade sources said. Companies offered to supply the shipments at only a slight premium to prevailing prices at Britain's National Balancing Point (NBP) trading hub, traders said. At the same time bids for a tender to supply Argentina with LNG attracted bids carrying a $0.30 per million British thermal units (mmBtu) premium to NBP levels, whereas the prices for the Italy tender showed only a slight premium, traders said.
FLNG Production Bows out as US Exports Roil Market
Once considered the future of gas production, floating liquefied natural gas (FLNG) projects have been firmly relegated to the backburner as global gas producers seek cheaper ways to compete with a surge in U.S. shale supplies and slumping prices. FLNG projects - mega tankers fitted with gas extraction and liquefaction facilities - allow producers to tap offshore gas wells and ship LNG without having to build costly pipelines to onshore plants. Owners can move the vessels to new fields when production at an old one ends, slashing asset end-of-life costs.
Legislators Call for US-flag LNG Carriers
New legislation proposed this week would require up to 30 percent of U.S. liquefied natural gas (LNG) exports to travel on U.S.-flagged vessels. The U.S. is expected to continue ramping up its LNG exports in the coming years and become a net exporter by 2020, yet there are currently no U.S.-flag carriers to carry the cargo. “We’re the most powerful nation in the world, but 99 percent of our trade travels on foreign-flagged ships,” said Congressman John Garamendi (D-Fairfield, Davis, Yuba City), Ranking Member of the Subcommittee on the Coast Guard and Maritime Transportation, who introduced the bill (H.R.
Damen Plunges into LNG Market
Damen Shipyards Group’s range of Liquefied Gas Carriers is a response to the changes seen in the maritime LNG market in recent years. The Dutch company’s designs meet a variety of capacity requirements, from 500 m3 to 7,500 m3. The maritime LNG market has long been faced with the conundrum around the subject of supply and demand. Ship owners have been reluctant to make the switch to LNG because of the lack of bunkering infrastructure. At the same time, development of bunker infrastructure has been slow to get off the ground due to the low demand from the market. This has been described on numerous occasions as ‘the chicken and egg’ situation.
A Case for LNG-fueled Mobile Offshore Units
GustoMSC, a Dutch design and engineering company focused on offshore energy, says the offshore industry has much to gain from examining the feasibility of using liquefied natural gas (LNG) to fuel mobile offshore units such as construction vessels, drillships, jack-ups and semi-submersibles. GustoMSC has been monitoring the development of LNG as a marine fuel for several years, culminating in a recently finished R&D project into LNG for its design portfolio. The firm’s associated report, LNG fueled Mobile offshore units…
Partners to Develop Western Australia LNG Supply
Woodside and GE have signed an agreement to work together to support the use of LNG as a fuel in Western Australia. The agreement will provide customers with the option of seamless access to reliable LNG fuel supply and gas-fuelled transport and power generation solutions. Woodside CEO Peter Coleman said that this type of collaboration was key to development of the LNG fuel market in Western Australia. “The agreement between our companies will harness the combined experience and offerings of Woodside and GE, allowing customers to choose LNG as a fuel that will deliver significant cost and emissions reductions.
Total in Talks to Buy Iranian LNG Project
Total is in talks to buy a multi-billion dollar stake in Iran's partly-built liquefied natural gas (LNG) export facility, Iran LNG, seeking to unlock vast gas reserves. The French oil major -- the first of its peers to strike deals in Iran after sanctions -- seeks entry into Iran LNG at a discount to the pre-sanctions price in exchange for reviving the stalled project, two sources with knowledge of the matter said. A third source confirmed Total was in the running for a stake, alongside several other oil majors, but any deal was still some way off. Total declined to comment. Iran's National Gas Export Co.
Hedge Funds Find Plenty of Willing Sellers: Kemp
For every buyer of futures and options there must be a seller. For every long position there must be a corresponding short position. Hedge funds and other money managers have purchased a record number of futures and options contracts linked to Brent and WTI, betting that prices will rise. As a group, hedge funds now hold a record net long position equivalent to 951 million barrels across the three main Brent and WTI contracts (http://tmsnrt.rs/2mm1HeI). Hedge fund long positions outnumber short positions by a record ratio of 10.3:1 (http://tmsnrt.rs/2mvnvBA).
Japan Pays Dearly for U.S. Shale Cargoes
Japan in January paid nearly twice as much for liquefied natural gas (LNG) derived from U.S. shale gas as it did for its cheapest imports, official trade data showed on Friday. Shale gas from the United States had been touted as a panacea to Japan's energy crisis after the Fukushima nuclear disaster nearly six years ago. The first supplies arrived in Japan last month to much fanfare but the revelation of its higher cost would seem to undermine the initial euphoria. Japan, the world's biggest importer of LNG, received 211,237 tonnes of U.S.
DOF Vessel Awarded Prelude FLNG Work
The DOF Group said its subsidiary DOF Subsea Australia Pty Ltd has been awarded a contract by Technip Oceania Pty Ltd, part of TechnipFMC in Australia, for the provision of multipurpose support vessel (MSV) Geoholm for the Prelude floating liquefied natural gas (FLNG) project, operated by Shell Australia. The Geoholm will be required to provide remotely operated underwater vehicle (ROV) and light construction support services to TechnipFMC in Australia for the Prelude FLNG Water Intake Riser Installation.
Novatek Says No Need to Borrow More for Yamal LNG Project
Russia's largest private gas producer Novatek has no need to increase borrowing as it has sufficient funds for investments into its Yamal LNG project, the company's management said on Wednesday. At a conference call with analysts, Novatek's chief executive Leonid Mikhelson said his company has already invested $22 billion in Yamal LNG after securing borrowing on both global and domestic markets. He said Yamal LNG, a project to build Russia's second gas liquefaction plant, will receive another $6 billion in investment this year.
Saudi Aramco in Lead to Buy OMV's Turkish Unit Petrol Ofisi
Oil giant Saudi Aramco is believed to be the front-runner to buy Turkish fuel stations business Petrol Ofisi from Austrian oil group OMV , sources familiar with the matter said. Saudi Aramco has placed a bid and is awaiting the result, said one source who declined to be identified because the matter is not public. An OMV spokesman said the firm had received binding offers for Petrol Ofisi, which generated sales of around 10 billion euros ($10.5 billion) in 2015, but declined to give details. A Saudi Aramco spokesman said the company did not comment on rumour or speculation.
HHI's FSRU Unit equipped by GTT
GTT 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. This order includes a firm vessel and one option. The FSRU of 170,000 m3 will be built at Hyundai's shipyard, in Ulsan (South Korea), on behalf of a European shipowner. The vessel will also be equipped with a Dual Fuel Diesel Engine motorization like standard LNG Carrier (LNGC). Delivery is scheduled in March 2019. "GTT notes that the performance of its technologies for the FSRU market are renowned and appreciated by the key players of the offshore industry"…
LNG Bunkering Commences in Australia
Under an agreement with Woodside, EVOL LNG refueled the platform supply vessel, Siem Thiima, on January 23 at King Bay Supply Base near Dampier. Business Manager, Nick Rea sees it as just the beginning. “Our decision to enter the LNG bunkering market is part of a long-term strategy that recognizes environmental and economic sustainability of LNG as a transport fuel,” said Rea. “It also recognizes that the LNG marine fuel market is still in development so the fact EVOL has over 15 years’ experience in distributing LNG means we saw an opportunity to provide a suite of services that perhaps others can’t.
Skangas LNG for Stormossen’s gas station
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.
Gazprom’s exports to Germany jump 37%
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.
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.
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.
LNG Prices Slide as Supplies Emerge
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.
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
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.
Gazprom, CNPC discuss gas supplies to China
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…
Coal Shortfall Buoys Miner Bottom Line
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.
Höegh Joins Consortium to boost Pakistan LNG imports
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.
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.
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
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
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
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. 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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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.