Saturday, January 19, 2019

Gas Supplier News

US to Become Third Largest LNG Exporter in 2019

Pic: Center for Liquefied Natural Gas (CLNG)

The coming year is expected to make the U.S. the third largest exporter of liquefied natural gas (LNG) in the world, creating jobs stateside while reducing emissions and providing reliable energy to countries around the world, said American Petroleum Institute (API).API, Center for LNG, and LNG Allies, the three national trade associations specializing in U.S. LNG, today issued a first-of-its-kind joint statement on the extraordinary developments expected in U.S. LNG in 2019.Todd Snitchler, Vice President of Market Development at the American Petroleum Institute, said: “The dramatic expansion of U.S.

Delek Drilling to Spin Off Tamar Stake

Tamar Platform (Photo: Albatross Aerial Perspective Ltd. / Delek Drilling)

Israel's Delek Drilling is looking to spin off its remaining 22 percent stake in the offshore Tamar gas field in 2019, the company's chief executive said on Monday.Last year Delek spun off an initial 9.25 percent of Tamar into a new company in Tel Aviv called Tamar Petroleum. It said at the time it expected to get $980 million for the sale.CEO Yossi Abu said Delek Drilling is now focusing abroad, including the Euronext market, since the local market is already saturated for Tamar."We are looking to duplicate what we did with Tamar Petroleum but in the international market.

BMT Inks Service Deal with Al Masaood

Bakri Tarmanini, Business Development Manager at Al Masaood Oil & Gas; Louise Ledgard, Director Business Development at BMT; and Suba Sivandran, Director of Capability & Strategy at BMT (Photo: BMT)

BMT said it has signed a service agreement with UAE oil and gas supplier and contractor Al Masaood Oil & Gas.The agreement with the Abu Dhabi headquartered company will see BMT being assisted by Al Masaood Oil & Gas to deliver risk & safety, environmental modelling, marine & port engineering, metocean, environmental, integrity and structural monitoring and data management services for projects situated in the UAE.Al Masaood Oil & Gas General Manager, Ahmad El Tannir, said, “Our state-of-the-art diversified portfolio supplier services are designed to further boost BMT’s international energy services presence to the next level.

EU Approves State Aid for Lithuania’s Klaipėda LNG Terminal

Image: Klaipeda State Seaport Authority

The European Commission said that the EC has approved under EU State aid rules the compensation granted by Lithuania to LITGAS for supplying a mandatory quantity of liquefied natural gas (LNG) to the LNG terminal in Klaipėda.In November 2013, the Commission approved under EU State aid rules an aid scheme to support the construction and operation of a liquefied natural gas (LNG) terminal at the Klaipėda seaportin Lithuania The LNG terminal has, since its construction, played a vital role in the diversification of gas supplies and security of supply in Lithuania.In June 2018…

Integrated Gas Compression: A Natural Fit for North America

(Photo: GE)

Natural gas abounds in North America. At the end of 2016, Canada and the U.S. shared 414 trillion cubic feet of proved reserves, with the U.S. the world’s largest producer and Canada the fourth largest. Unsurprisingly, there’s a keen appetite for developing LNG facilities across the continent.In recent years, we’ve seen several large-scale LNG projects taking shape, including five new export terminals coming online in 2018 and 2019. Once in operation, they will make the U.S. one of the top three LNG exporters in the world.Over the years…

Norway Expects Gas Export Price to Fall Until 2021

© Carabay / Adobe Stock

Norway expects its gas export price to fall by more than a quarter by 2021 as increasing global liquefied natural gas (LNG) supplies outstrip growth in European demand.Norway's 2019 fiscal budget on Monday showed it expects the average price for Norwegian gas to fall to 2.05 crowns/standard cubic meter (sm3) and reach a low of 1.70 crowns/sm3 by 2021, then rebounding in 2022.The projections are higher than what Norway, Europe's second largest gas supplier after Russia, was expecting in its revised budget in May, when 2018's price was seen at 1.8 crowns/sm3 and 2019 just below 1.5 crowns.The average price for Norway's gas was about 2.20 Norwegian crowns ($0.2655)

No-deal Brexit Will Not Interrupt Norwegian Energy Flows to Britain

© Stanislav / Adobe Stock

Energy exports from Norway to Britain will not be affected even if Britain leaves the European Union without a deal, Norway's energy ministry said on Friday."Energy trade is governed by bilateral commercial agreements. We hence expect that energy exports from Norway to Britain will not be affected, even under a 'no-deal' scenario," a ministry spokesman said in an email.Gas and oil flows through the offshore pipeline system connecting Norway and Britain are also regulated by bilateral agreements between the two countries, he added.Norway is Britain's main external natural gas supplier.Reporting by Nerijus Adomaitis

Qatargas, PetroChina Sign 22-Years LNG Supply Deal

Photo: Qatargas

Qatargas, the world’s largest LNG producer,  has announced a long-term Sale and Purchase Agreement (SPA) with PetroChina International Company Limited, a unit of PetroChina Company Limited (PetroChina), to supply China with around 3.4 million tonnes of liquefied natural gas (LNG) per annum.Under the 22-year SPA, which ends in 2040, Qatargas will supply LNG from the Qatargas 2 project, a joint venture between Qatar Petroleum, ExxonMobil and Total, to different receiving terminals across China, with the first cargo to be delivered to the People's Republic of China later this month.Commenting on this landmark agreement…

Equinor to Boost Drilling to Extend Norwegian Shelf Life

Photo: Harald Pettersen / Equinor

Oil producer Equinor aims to boost the recovery rate from its Norwegian fields to well above the global average to extend production from the mature basin beyond 2030.Equinor announced plans on Tuesday to drill up to 3,000 wells offshore from its native Norway in coming decades - almost as many as it has drilled since its startup in 1972 - to mitigate declining output from older fields, and extend the production lifetime of more than 20 installations.The company said it remained on track for to keep profitable oil and gas production in Norway towards 2030…

Hoegh LNG to Supply FLNG Terminal to Australian Import Project

(File photo: Hoegh LNG)

Norway's Hoegh LNG has won a tender to supply a floating LNG import terminal for a consortium aiming to import liquefied natural gas to Australia's east coast from 2020 in a push to boost local supply.Australian Industrial Energy, a consortium that includes Japan's JERA and Marubeni Corp, said on Monday it signed an agreement giving it the right to lease one of Hoegh LNG's floating storage and regasification units (FSRU), to be docked at Port Kembla.The project needs approvals from the state of New South Wales, which is evaluating the proposal on a fast track as "critical state significant infrastructure", amid pressure to drive down gas prices."We remain on sch

Plans for Another South Australia LNG Import Plant in the Works

A private firm is looking to import liquefied natural gas (LNG) to South Australia starting in 2020, around the same time as two other proposed import projects, looking to fill a supply gap as domestic gas gets sucked into LNG exports.Venice Energy, set up by former BHP Billiton executives, plans to submit a development application to the South Australian government within the next month to park a floating storage and regasification unit (FSRU) in Port Adelaide, Managing Director Kym Winter-Dewhirst said.If regulatory approvals come through by March, construction could begin by June 2019, he told Reuters in an interview.

Hundreds of Oil Workers Strike in Norway

Photo: Harald Pettersen / © Equinor

Hundreds of workers on Norwegian offshore oil and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, leading to the shutdown of one Shell-operated field and helping send Brent crude prices higher.One union said hundreds more workers would join the strike on Sunday if an agreement over union demands for a wage increase and pension rights was not reached.Royal Dutch Shell said that due to the strike it was temporarily closing production at its Knarr field, which has a daily output of 23,900 barrels of mostly oil…

Hundreds of Norway Oil Workers Go On Strike

Photo courtesy of Equinor

Hundreds of workers on Norwegian offshore oil and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, leading to the shutdown of one Shell-operated field and helping send Brent crude prices higher.One union said hundreds more workers would join the strike on Sunday if an agreement over union demands for a wage increase and pension rights was not reached.Royal Dutch Shell said that due to the strike it was temporarily closing production at its Knarr field, which has a daily output of 23,900 barrels of mostly oil…

ExxonMobil Considers Importing LNG to Australia

© Wojciech Wrzesien / Adobe Stock

ExxonMobil Corp, southeastern Australia's biggest gas supplier, is considering importing liquefied natural gas (LNG) to help plug a looming gas shortage from 2021 and protect its market share.The move would compete with plans by both Australia's no.2 energy retailer AGL Energy to start importing LNG by 2021 and a consortium involving Japan's JERA to start imports from 2020.ExxonMobil is also stepping up exploration off the coast of Victoria and considering developing a gas field called West Barracouta close to an existing field, it said in an emailed statement on Monday."Combined with the existing Gippsland resource and infrastructure…

Algeria Hires U.S. Law Firm Curtis for New Energy Law

Algeria has hired U.S. law firm Curtis, Mallet-Prevost, Colt & Mosle LLP and other consultancies to help with a new energy law aimed at attracting much-needed investment, the CEO of state energy firm Sonatrach said on Monday.The OPEC producer, which is also a major gas supplier to Europe, has been trying to attract more foreign investors but firms have been reluctant complaining about bureaucracy and tough terms.The North African has been working on a new law but it was still unclear when it would be ready as many players were involved…

Osaka Gas wins Taiwan LNG terminal consulting work

Japanese city gas supplier Osaka Gas says its subsidiary has won consulting work for liquefied natural gas (LNG) terminals planned by Taiwan's state-owned CPC Corp and Taiwan Power Co.The subsidiary, Osaka Gas Engineering, will handle basic design for all of the planned LNG terminals in Taiwan, Japan's second-biggest city gas supplier said in a statement.(Reporting by Osamu Tsukimori)

Norway Unhappy with Gazprom-OMV Asset Swap

Norway is not happy with the asset swap deal between Austria's OMV and Gazprom that would give the Russian gas giant access to the Norwegian continental shelf, the Nordic country's oil and energy minister told Reuters on Wednesday. "We have said we are not happy for this deal because we want to have diversified supplies for gas to Europe," Terje Soeviknes said in an interview. "And that is important for the Europeans to know that they have Norway as a stable producer. Norway is Europe's second-largest gas supplier after Russia. "We have told OMV that we are not happy for it.

Norway Expects Gas Export Prices to Slip in 2019

© Carabay / Adobe Stock

Prices of Norwegian gas exports are likely to rise slightly this year amid strong demand, but will fall back in 2019 as liquefied natural gas (LNG) deliveries in Europe are expected to increase, the government said in its revised budget on Tuesday.Europe's largest gas supplier after Russia forecast gas export prices would rise by 0.1 crowns per standard cubic metres (sm3) to average 1.8 crowns (22.43 U.S.

Algeria's Sonatrach to Invest $250 million at Tinhert Gas Field

Sonatrach's CEO Abdelmoumen Ould Kaddour (Photo: Sonatrach)

Algerian state energy firm Sonatrach will invest $250 million to boost output at the Tinhert gas field to 20 million cubic metres (mcm) per day by 2020 up from 5 million cubic metres, its CEO said on Monday. "This is an important project that will push our gas output up," Sonatrach's CEO Abdelmoumen Ould Kaddour told reporters on the site located in Algeria's southeast not far from Libya’s borders. Algeria's total gas output is around 100 billion cubic metres per year, of which 55 billion are exported. Several gas fields which were due to come onstream in 2016 and 2017 will come online this year, boosting Algeria's gas output.

Serbia, Russia Revive Gas Pipeline Plans

Photo: Gazprom

Russia and Serbia have revived an idea of building a gas pipeline in the Balkan country, a project that would enable Gazprom to step up its gas supplies to Europe, bypassing Ukraine. The Serbian pipeline will be linked to Bulgaria and Hungary via two interconnectors to ship Russian gas from the TurkStream pipeline. The Vienna-based Energy Community Secretariat, which transposes EU energy standards to aspiring member states, criticised the project saying the true aim was to bring Russian gas from TurkStream to the Baumgarten hub near Vienna, not to diversify gas supplies to Serbia.