Shell to Link Directors' Pay to Climate Performance
Royal Dutch Shell has proposed linking its directors' pay more closely to the group's climate performance and severing the link between bonuses and liquefied natural gas (LNG) production volumes, it said on Monday.The weighting of Shell's energy transition performance on its targeted path to net zero emissions by 2050 would double to 20% of the directors' long-term incentive plan calculation if shareholders vote for the plan at a meeting on May 18.This places Shell's efforts to curb its planet-warming emissions on an equal…
Ship Power: MAN Energy Solutions Unveils New LNG Dual-fuel Engine
In a live-stream presentation from its Copenhagen Research Center, MAN Energy Solutions has demonstrated advanced dual-fuel engine technology for low-cost, fuel-efficient operation of liquefied natural gas (LNG) carriers and other vessels where low capital outlay is a priority. Tom Mulligan, science &and technology correspondent, reports.MAN Energy Solutions has demonstrated its latest low-speed, dual-fuel engine, the MAN B&W ME-GA type, an Otto-cycle variant of the company’s successful ME-GI engine, at a ceremony live-streamed from its Copenhagen Research Center.
VIDEO: Wärtsilä’s Compact Reliq Aims to Optimize BOG Reliquification
As the maritime industry steams toward decarbonization, the path to zero emissions will include many stepping stones. Wärtsilä’s Compact Reliq is a step change in efficiently reliquefying boil off gas (BOG) on LNG carriers, as Lasse Wichstrøm and Sylvain Fabreguettes discuss with Maritime Reporter TV.LNG carriers have, for years, utilized boil off gas (BOG) to help fuel the ship, even before ‘decarbonization’ and ‘emission reduction’ became lexicon in the maritime sector.“Compact Reliq is not a brand-new product in the sense that reliquefaction plants have been around for some time…
Cheniere Expects Rising LNG Demand with Vaccine Rollout
Cheniere Energy Inc, the top U.S. liquefied natural gas producer, on Wednesday raised its full-year adjusted earnings forecast, predicting higher demand for the fuel as COVID-19 vaccinations boost economic recovery.Lockdown measures implemented to curb the pandemic slashed demand for energy and hurt prices for natural gas in 2020. But with economic recovery in Asia, particularly in China, fuel sales have picked up.Shares rose 1% to $70.37 in midday trading, a more than two-year high."We expect continued LNG demand improvements as COVID vaccines are distributed and global economic activity continues to strengthen…
Valenciaport to the Fore in Spain's LNG Bunkering Ops
Valenciaport is at the forefront in Spain in the supply of LNG (Liquefied Natural Gas) by the shipping company Baleària. Specifically, in 2020, the Dénia-based company carried out a total of 291 natural gas supply operations, reaching 26,777 cu. m., in the Port of Valencia, which represents 40% of the bunkering operations carried out by the company in Spain. The Port Authority of Valencia (PAV) and Baleària have been collaborating for years in the introduction of LNG and the improvement of supply services to ships with this fuel with the implementation of the Multi Truck to Ship System (MTTS).
LNG Shipping Rates from US Surge to Record Highs
The cost of shipping liquefied natural gas (LNG) from the United States to Asia hit a record high on Tuesday as appetite for the fuel from buyers there and delays through the Panama Canal reduced the amount of ships for hire.Freezing temperatures across Asia and Europe have pushed up LNG prices and lifted wider gas prices as buyers grapple with shrinking inventories and the shortage of tankers.Shipping sources said an apparent ban on Australian coal imports into China, which has been reported by Chinese media, had also bolstered demand by Chinese buyers for LNG tankers to carry cargoes to Asia.Average daily tanker rates on the U.S.
Japan Faces LNG Shortage Amid Supply crunch, Cold Weather
JERA, Japan's biggest electricity generator and the world's largest buyer of liquefied natural gas (LNG), is operating gas- power plants at lower rates as it runs down inventories amid rising heating demand as temperatures drop.The company joins other Japanese power generators reducing run rates on their gas plants as they compete with LNG buyers across northern Asia scrambling to secure supplies, sending prices higher.Tight fuel supplies are also highlighting vulnerabilities in Japan's electricity grid that make it harder to swap power supplies between areas a decade after the Fukushima nuclear disaster set off government-led changes to prevent s
CNOOC Leads First LNG Group Purchasing on Shanghai gas exchange
Chinese state-owned China National Offshore Oil Corp (CNOOC) has led the first group purchasing order for liquefied natural gas (LNG) on the Shanghai Petroleum and Natural Gas Exchange, the bourse said in a statement on Wednesday.The 120,000-tonne LNG cargo will arrive in April 2021 via CNOOC's terminals and other approved hubs in Shenzhen and Guangdong, the exchange said. Buyers will have until the end of September to collect their purchases.The exchange's newly launched group purchasing option for LNG buy tenders allows smaller firms to purchase portions of a larger cargo.
US Axes Environmental Reviews of LNG Marine Transport
The U.S. Department of Energy on Thursday issued a rule to exclude environmental reviews for marine transport of liquefied natural gas (LNG), as the Trump administration unleashes last minute rules supporting the fossil fuel industry.The rule, which the Energy Department issued in a pre-publication notice in the Federal Register, frees LNG transport license applications from including environmental reviews that have been required under a bedrock environmental law, the National Environmental Policy Act.The requirement has only been on LNG shipments to countries with which the Washington does not have a free trade agreement…
MacGregor Inks Deal to Supply LNG Bunker Barge Hose Handling Cranes
MacGregor received an order from Fincantieri Bay Shipbuilding to supply two fixed boom cranes that will handle the hoses on a new 5,400 cubic meter capacity liquefied natural gas (LNG) bunker barge currently under construction and estimated to be delivered by the end of 2021.The MacGregor Rapp HP63-13F cranes will handle the hoses that transfer LNG from the barge to the LNG-powered vessel during bunkering operations. The hoses will be 63 feet long and designed to handle 6,500 pounds at 42 feet and 1,000 pounds at 63 feet.The ABS-classed barge will be 340 feet long overall, with a 66-foot beam and a depth of 32 feet, 10 inches.
LNG to FSU Conversion Completed at Sembcorp
Ship managers Synergy Group converted a 1992-built, 126,000 cubic meters capacity Liquefied Natural Gas (LNG) carrier into a Floating Storage Unit (FSU). The conversion was performed at Sembcorp Marine’s Admiralty Yard in Singapore.Synergy will manage, maintain and operate the FSU, which has a projected lifespan of 15 years. It will be deployed in Myanmar where it will be manned by a Synergy crew of 25 seafarers.The FSU will be moored permanently and used to receive and store LNG imports for delivery on demand to an onshore…
Sakura Leader: New LNG-fueled Pure Car Carrier Enters Service
Mitsubishi Shipbuilding Co., Ltd. completed installation of the first unit of an LNG (liquefied natural gas) fuel gas supply system (FGSS) for marine dual fuel engines, delivered in November last year, on the pure car carrier (PCC) built by Shin Kurushima Toyohashi Shipbuilding Co., Ltd. The first LNG-fueled PCC built in Japan was delivered to Nippon Yusen Kabushiki Kaisha on October 28, 2020, and has entered service. During the construction period after the delivery of the FGSS, Mitsubishi Shipbuilding maintained close…
Meet the World's First Digital Smart Ship, the Japanese Built LNG-Fueled PCTC Sakura Leader
The run up to 2050 and dramatic reductions in emissions from ships will, by most expert’s thinking, be an evolution of small steps premised on melding new fuels and digitalization technologies. The recent delivery of the LNG-fueled PCTC Sakura Leader to NYK can be considered a sizable leap in this regard, as the ship has been designated as the world’s first digital smart ship.A Big Step Toward CO2 Reduction TargetsOn October 28, NYK took delivery of Sakura Leader, a pure car and truck carrier (PCTC) capable of navigating oceans with only LNG as the ship’s main fuel.
Virtual TAT: MAN 32/40R-DF Passes Type Approval Test, New Retrofit Package for Dual-Fuel Ops
MAN Energy Solutions announced the successful conclusion of the Type Approval Test (TAT) for its dual-fuel retrofit kit for its MAN 32/40 engine type. The TAT took place at the company’s Augsburg, Germany works from September 15-18, 2020 with the participation of the three classification societies: DNV GL, American Bureau of Shipping, and Lloyd’s Register.The TAT confirmed the suitability of the retrofit kit for converting the company’s field-proven MAN 32/40 engine into a dual-fuel unit – a so-called MAN 32/40R-DF type – that can now run on fossil and renewable, gaseous fuels, in addition to conventional fuel oil.
Germany Offered to Build LNG Terminals to Avert US Pipeline Sanctions
Berlin offered to spend 1 billion euros ($1.2 billion) to build two liquid natural gas terminals in a bid to dissuade the United States from imposing sanctions over the Nord Stream 2 pipeline, due to bring gas directly from Russia to Germany, Die Zeit reported on Wednesday.The weekly paper said Finance Minister Olaf Scholz made the proposal in an Aug. 7 letter before Washington imposed sanctions on companies involved in building the Baltic Sea pipeline, effectively freezing its construction.A spokesman for the German finance…
US LNG Loading Delays Expected as Hurricane Slams Gulf Coast
Loadings of liquefied natural gas (LNG) cargoes from the United States likely will be delayed as a powerful storm strikes the heart of the U.S. oil and gas industry on the Gulf Coast, forcing several LNG plants to shut.Hurricane Laura made landfall early on Thursday in southwestern Louisiana as one of the most powerful storms ever to hit the state, with forecasters warning it could push a wall of water 40 miles (64 km) inland from the sea. Landfall came near Louisiana's border with Texas.Trading and shipping sources said they expect the resulting floods to delay LNG loadings from some ports and potentially boost Asian LNG spot prices.
Santos Flags $560 Mln Impairment Charge on Virus-led Oil Slump
Australia's Santos said on Tuesday it will book non-cash impairments of up to $560 million after tax, joining a number of global energy majors forced to write down assets after a coronavirus-induced slump in oil prices.The country's second-largest independent gas producer expects to record non-cash charges of between $490 million and $560 million after tax in its 2020 interim results, it said in a statement.Most of the impairment charges relate to Santos's Gladstone Liquefied Natural Gas (LNG) project in its Cooper basin fields in Queensland…
Gazprom Neft Sells Its First Arctic Oil Cargo to China
Russia's Gazprom Neft has sold its first ever Arctic oil cargo to China to ChemChina, two sources familiar with the deal told Reuters on Thursday.This week, Gazprom Neft said it had sent 144,000 tonnes of light Novy Port oil grade to the Chinese port of Yantai on the Bohai Sea from Russia's north-western city of Murmansk, using the Northern Sea Route (NSR) through Russia's Arctic waters.The Delta Hellas vessel used part of the NSR, a route requiring icebreakers and ice-class tankers, Refinitiv Eikon data showed, sailing west from Murmansk to reach Suez and then China.Gazprom Neft said this week the delivery took 47 days, without providing the buye
Woodside's Revenue Slumps More than Expected
Australia's Woodside Petroleum Ltd reported a worse-than-feared 29% drop in quarterly revenue, hit by weak spot liquefied natural gas (LNG) prices, but said it still expected to book a net profit in the first half.The hit came due to the double whammy of a global gas glut and a slump in demand with the coronavirus pandemic, and sent the company's shares down more than 2% while its peers were all trading higher."It's been a very difficult time for our industry and some external challenges are just simply beyond our control…
Gazprom Aims to Increase Gas Supplies to China
Russia's Gazprom is committed to supply as much as 130 billion cubic meters of gas (bcm) to China annually in the longer term, a company official told a conference call on Tuesday.Gazprom currently supplies gas to China via the Power of Siberia pipeline which is yet to reach its full capacity of 38 bcm per year. Gazprom plans to add another 6 bcm to Power of Siberia and is in talks over a number of additional routes, the official said.(Reporting by Olesya Astakhova Writing by Katya Golubkova. Editing by Jane Merriman)
Japan's JERA Books Hefty One-off Losses on 2019/20 LNG Supplies
Japan's JERA, the world's biggest buyer of liquefied natural gas (LNG), booked tens of billions of yen in estimated one-off losses on its supply in the year ended on March 31, due to slumping prices, its president Satoshi Onoda said on Thursday. The losses highlight the issue for Japanese utilities, which have committed to large LNG volumes on contracts linked to oil prices, while spot prices for the chilled fuel are barely off record lows touched this year due to oversupply and the drop-off in demand because of the coronavirus pandemic.
China: BP, ENN Sign 300,000t a Year Gas Supply Deal
British oil major BP has signed a gas supply agreement with China's ENN Group (ENN) for the supply of 300,000 tonnes per year of pipeline gas re-gasified from LNG for two years from January 1, 2021, in Guangdong, China. The LNG will be received and re-gasified through the LNG receiving terminal of Guangdong Dapeng LNG Company Limited (GDLNG) where BP holds regasification capacity. Dev Sanyal, executive vice president of BP gas & low carbon energy, said: “Our strategy is to integrate energy value chains and, with this transaction…
US LNG Exports at 20-month Low
Natural gas flows to U.S. liquefied natural gas (LNG) export plants plunged this month after falling to a 20-month low in June as coronavirus lockdowns cut global demand for the fuel.Before the pandemic slashed energy demand, U.S. producers counted on LNG exports to keep growing fast as an outlet for their record gas output. But after soaring 68% in 2019 and 53% in 2018, U.S. LNG exports were only expected to rise about 7% in 2020.Gas pipeline flows to U.S. LNG export plants dropped to an average of 3.1 billion cubic feet per day (bcfd) so far in July from a 20-month low of 4.1 bcfd in June and a record high of 8.7 bcfd in February…
Indonesia Produced 104.8 LNG Cargoes in Jan-June Period
Indonesia produced 104.8 standard cargoes of liquefied natural gas (LNG) from its Bontang and Tangguh LNG plants in between January to June. Susana Kurniasih, upstream oil and gas regulator SKK Migas' spokeswoman told Reuters.79 cargoes of LNG were exported and 25.8 cargoes were sold domestically in first half of 2020. 20.5 cargoes of domestic sales were sold for electricity. (Reporting by Wilda Asmarini; Writing by Fathin Ungku; Editing by Louise Heavens)
Essar Steel Seeking LNG Cargoes for 2021-2023
India's Essar Steel is seeking liquefied natural gas (LNG) cargoes for delivery over 2021 to 2023, two industry sources said on Tuesday.It is seeking 30 trillion British thermal units (TBtu) for delivery over the three years in a tender which closes on Tuesday, one of the sources said, adding that this works out to about 8 to 9 cargoes a year.Essar Steel is asking for the cargoes to be priced on Platts' Japan-Korea-Marker (JKM) linked basis, the source added.The company had in February sought 36 cargoes for delivery over the same period, though it was not immediately clear if it had bought all the cargoes it sought then.
US Approves LNG Exports from Oregon
The U.S. Energy Department on Monday approved the export of up to 1 billion cubic feet per day of liquefied natural gas from a proposed terminal in Oregon, a move it said would ease U.S. sales of the fuel to Asian markets.The approval advances efforts by President Donald Trump's administration to increase U.S. fossil fuel shipments around the globe at a time big projects are increasingly under strain from environmental protests and lawsuits.“Today’s export authorization for Jordan Cove, the first U.S West Coast LNG project, will ease access to further position the U.S.
Japan's LNG Investments Drive Faces Risk of Souring
Japan's banks and public agencies have funneled nearly $25 billion into liquefied natural gas (LNG) projects since 2017 but the investments may sour as prices plummet from the COVID-19 pandemic and as climate change risks rise, a new study shows.Spurred on by the government to boost energy security since the 2011 Fukushima disaster shut down the country's reactors, Japan's investment in LNG rivals that for coal, the dirtiest fossil fuel, while more evidence is emerging of the high climate impacts from LNG and gas.The backing of high-risk projects that require decades of sales to return investments looks questionable…
India to End Federal Control of Gas prices, Lift LNG transport Use
India will gradually end federal controls on gas pricing as it seeks to attract foreign investment and technology to lift local output, oil minister Dharmendra Pradhan said on Friday.India, which is a large emitter of greenhouse gases and has multiple gas pricing regimes, aims to raise the share of gas in its energy mix to 15% by 2030, from 6.2%."This is an incentive we are giving to investors to come to India and take advantage of pricing and marketing freedom and produce more and invest more," Pradhan said at the BNEF summit.To boost gas usage…
Asian LNG Prices Steady on Ample Supply despite U.S. Cargo Cancellations
Asian spot liquefied natural gas (LNG) prices remained steady this week on a continued stream of spot supply even though traders continued to cancel cargoes loading from the United States due to poor economics. The average LNG price for August delivery into northeast Asia was estimated to be about $2.20 per million British thermal units (mmBtu), slightly lower than the previous week, trade sources said. Buyers of LNG are expected to cancel 40 to 45 cargoes for August-loading from the United States due to a slow recovery in Asian gas demand and record-high European gas stocks…
KBR to Move Away from LNG, Energy Business
Engineering and construction firm KBR Inc will exit most of its liquefied natural gas (LNG) construction and other energy projects, it told investors and employees, as customers pull back on energy investments.The company will refocus on government contracts and technology businesses, Chief Executive Stuart Bradie wrote to employees on Monday. It will "no longer engage in lump sum, blue collar construction services," saying the COVID-19 pandemic accelerated the decision to leave fixed-contract energy projects.KBR held contracts for engineering and construction services for several LNG projects…
Market in Focus: Gas Ships
Liquefied natural gas (LNG) shipping hasn’t been able to avoid the negative impact of COVID-19 as gas demand fell during the first quarter of 2020.The residential sector recorded the largest drop in consumption this year compared to 2019 which wasn’t helped by the mild winter seen in the US. The shut-downs of major economies and more specifically shut-ins of cargoes due to the historically low gas prices means we have basically witnessed demand destruction.LNG rates have fallen since the beginning of the year with the one-year time charter dropping by 80%.
Shell Weighs Sale of $2B-plus Share in Queensland LNG
Royal Dutch Shell is considering raising more than $2 billion from the sale of a stake in the common facilities at its Queensland Curtis LNG plant in Australia, according to a sale flyer reviewed by Reuters."Royal Dutch Shell plc is considering a sale of a 26.25% interest in the Queensland Curtis LNG (QCLNG) Common Facilities - a multibillion-dollar investment opportunity," the sale flyer said.The sale process is being run by Rothschild & Co and is due to be completed in 2020, the document showed.Shell declined to comment on what it called market speculation.
Gastech Postponed for 2021
Gastech, one of the world's largest gas, LNG and energy industries events has been postponed for 2021 due to the COVID-19 pandemic.The event was expected to take place in Singapore in September this year, however, the organizers have now decided to delay the event to September 13 to 16, 2021.Organizers dmg events said the decision had been based on concerns around the global pandemic, accessibility and for the wellbeing of speakers, delegates, exhibitors and visitors. Nick Ornstien, Vice President Energy for dmg events…
New Hospital Planned for Russian Village Building Novatek's LNG Plant
Russia's Arctic region of Murmansk plans to build a new temporary hospital in a village where a vital liquefied natural gas supply plant is being built after an outbreak of the new coronavirus.Murmansk governor Andrey Chibis said the authorities had contained the outbreak in Belokamenka, where Russian gas producer Novatek is building the plant, and construction of the plant had not been suspended.But the Murmansk region, which borders Finland and Norway, must be prepared for a possible second wave of the virus, he said."We clearly understand that the virus is likely to stay for a long time," Chibis told Reuters by telephone.
US LNG Exports Drop More Than a Third
U.S. liquefied natural gas exports are down by more than a third since governments started imposing lockdowns to stop the spread of the coronavirus.Worldwide gas prices have plunged as lockdowns squeezed energy demand even as strong renewables output boosted supply. Gas prices are more expensive now in the United States than in Europe for the first time in a decade.Buyers in Asia and Europe have already canceled over 20 U.S. LNG cargoes for June and July, and more cancellations are anticipated.Gas flows to U.S. LNG export plants fell from a record 9.5 billion cubic feet per day in late March to a six-month low of 5.6 bcfd this week…
Qatar Petroleum to Cut Spending by 30%
Qatar Petroleum will slash its spending by around 30% this year in the face of the sharp drop in oil and gas prices due to the coronavirus epidemic, its Chief Executive said on Thursday.Speaking during a webcast organized by the U.S-Qatar Business Council, Saad al-Kaabi however said that plans to sharply expand Qatar Petroleum's liquefied natural gas (LNG) capacity by the middle of the decade remain on track."We are going through budget revisions... In June we will be somewhere in the range of 30% reduction in expenditure…
Total Secures $14.4 Bln Funding for Mozambique LNG
French energy major Total has secured $14.4 billion funding for its Mozambique liquefied natural gas project in Mozambique, two sources said on Wednesday.A source with knowledge of the matter said Total has reached a financing agreement with a group that includes around 20 lenders for the first phase of senior debt funding of $14.4 billion. The source did not specify the name of the banks involved in the financial arrangement.Total declined to comment. Bloomberg reported earlier on Wednesday that Total was set to sign $15 billion financing for the project in June.The company expects the financing to be closed in the third quarter…
EXIM Bank Amends Mozambique LNG Loan. Earmarks $1.8B for Offshore Work
The U.S. EXIM Bank has amended its previously approved September 2019 direct loan supporting U.S. exports for the development and construction of the Total-operated LNG project located on the Afungi Peninsula in northern Mozambique.The original scope of the $4.7 billion loan for the project has been amended from exclusively the onshore portion of the LNG plant and related facilities to also allocate an estimated $1.8 billion to support the project’s offshore production. "As a result, the transaction now will support an increased number—16,700—of estimated American jobs over the five-year construction period," EXIM said Friday.The number of U.S.
Japan Spot LNG Import Prices Hit Record Low
Prices for spot liquefied natural gas (LNG) cargoes imported into Japan, the world's biggest buyer of the fuel, fell in April to their lowest since the country's trade ministry started compiling data in 2014. The latest low for LNG cargoes into Japan - reflecting actual prices paid rather than those derived from surveys or indices - highlights the evisceration of demand for gas, along with other commodities, brought about by the coronavirus pandemic. The outbreak has turned markets on their heads, with U.S. oil prices slipping into negative territory during April and in Japan…
Virus Lockdowns Pummel Global Gas Demand, Force LNG Output Cuts
Lockdowns to slow the coronavirus pandemic are pummelling gas demand in the world's biggest buyers of liquefied natural gas (LNG), pushing Asia's spot prices to record lows and forcing some suppliers to start cutting output. Economies worldwide have ground to a halt as virus containment measures have taken their toll, slashing gas demand for power generation, heating, cooking, vehicles and chemical manufacture. The world's biggest LNG markets - Japan, China, South Korea, and India - are all seeing a drop in demand. Asia's spot LNG prices dropped to $1.85 per million British thermal units (mmBtu) last week…
Woodside Watching Supermajors' Woes for Opportunities
Woodside Petroleum is keeping a close eye out for assets that might come up for grabs from the oil supermajors amid the oil market rout, seeing itself in a position to bid, Chief Executive Peter Coleman said on Friday.The head of Australia's top independent gas producer said, however, deals were unlikely until the third or fourth quarter of this year."We are watching closely the super majors," Coleman told reporters on a conference call the day after Woodside's annual meeting.He said Woodside was watching how the supermajors…
Inpex Sells Ichthys LNG at Record Low
Inpex sold a liquefied natural gas (LNG) cargo from Australia's Ichthys plant for loading in May at what traders say is a record low price.Inpex had offered two cargoes for loading in May and has sold at least one of them at about $1.70 to $1.75 per million British thermal units (mmBtu), four traders said.The cargo was sold on a delivered ex-ship (DES) basis, two of them said. Details of the buyer and the second cargo could not immediately be confirmed. (Reporting by Jessica Jaganathan; Editing by Christian Schmollinger)
Sinopec Building LNG Storage Tanks at Tianjin Terminal
China's energy giant Sinopec has started building storage tanks in the second phase of its Tianjin terminal project to receive liquefied natural gas (LNG), the company said in a statement.The plan for the second phase is to have five LNG tanks, with storage capacity of 220,000 cubic metres each, and a new berth for LNG vessels.After the project is completed in end-2021, the LNG receiving capacity at the terminal will expand to 10.8 million tonnes per annum from the current 6 million tonnes.So far, the terminal has received 11.21 million tonnes of LNG since the first phase of the project was launched in March 2018.(Reporting by Muyu Xu and Shivani
BP Issues Force Majeure Notice for Golar FLNG Unit
Golar LNG Ltd said on Tuesday that it received a force majeure notice from a BP Plc unit seeking to delay taking delivery of a floating liquefied natural gas facility by a year.The notice is the latest force majeure claim issued in the LNG sector that is struggling with a seasonal plunge in demand as well as the spread of the coronavirus outbreak, which has further hammered the consumption of the super-chilled fuel globally.BP is expecting a one-year delay due to the pandemic and currently sees no possibility in reducing the duration of the new timing…
Exxon Cuts Spending by $10B
Exxon Mobil Corp on Tuesday throttled back a multi-year investment spree in shale, LNG and deep water oil production and will cut planned capital spending this year by $10 billion as the coronavirus pandemic saps energy demand and oil prices.Oil companies are reversing 2020 spending and production increases by an average 20% as countries limit air travel, order businesses to close and tell residents to stay home. In a one-two punch to suppliers, crude prices are down nearly 60% this year and demand for fuels is falling sharply.The largest U.S.
Tankers Carrying U.S. LNG Heading to China After Tax Waivers Granted
Tankers carrying U.S. liquefied natural gas (LNG) are on their way to China after Beijing started granting tax waivers to some importers, according to shipping and trade sources.This is the first time since March 2019 that shipments have resumed after a long-standing trade war that saw China raise tariffs on LNG imports from the United States to 25% last year.Four LNG tankers are currently en route to China after loading cargoes last month in the United States, ship-tracking data from Refinitiv and data intelligence firm Kpler showed.The tankers are expected to arrive in China between late April and early May, according to the data.
Shell to Exit Lake Charles LNG Project
Royal Dutch Shell said on Monday it will exit the Lake Charles liquefied natural gas export project in Louisiana, citing the plunge in oil prices due to the coronavirus pandemic.The project is a 50-50 venture with U.S. midstream company Energy Transfer, which said in a separate statement it will take over development of the project.(Reporting by Shradha Singh in Bengaluru; Editing by Aditya Soni)
Yamal LNG Resumes Loading Operations in Norway
Yamal LNG, controlled by Russia's largest liquefied natural gas (LNG) producer Novatek, is resuming ship-to-ship transfers in Norway, Novatek said on Monday, after plans to shift the operations to Russia fell through due to coronavirus.Novatek suspended transfers in Norway in June last year due to what it termed "pressure from the West".According to Refinitiv Eikon data, the Arc7 tanker Vladimir Vize is due to arrive at the Norwegian Arctic port of Honningsvag on April 1, carrying a cargo from Yamal LNG.The data also showed that an empty Arc4 tanker…
Fully Laden LNG Tankers Sit Idle Off Indian Ports after Force Majeure
At least five fully-laden liquefied natural gas (LNG) tankers are idling offshore India, as yet unable to discharge their cargoes, after importers there declared force majeure earlier this week, according to an analyst and shipping sources.Gas demand is falling globally amid the fast-spreading coronavirus which has capped industrial output, forcing LNG tankers in several regions to remain at sea fully laden with no immediate destination, the sources said.At least three major buyers in India, the world's fourth largest LNG importing country…
Indian LNG Importers Issue Force Majeure Notices
Indian liquefied natural gas (LNG) importers have started to issue force majeure notices as domestic gas demand slumps and as port operations in the country get hit by a lockdown to curb the spread of coronavirus, sources told Reuters."Demand has reduced drastically and it is likely to go down further, a company source with Gail (India) said."Only fertilizer, power and refineries are running at parcel loads.
Mozambique Army, Islamist Insurgents Battle Near Gas projects
Mozambican troops battled Islamist insurgents in a town in a northern town on Monday close to billion-dollar gas projects being developed by ExxonMobil and Total, police said.The General Commander of Mozambique's police, Bernardino Rafael, said the insurgents attacked Mocimboa da Praia and its army barracks before dawn on Monday, wounding dozens of people.Mocimboa da Praia is about 350 km (220 miles) by road from the city of Pemba in Mozambique's northernmost province of Cabo Delgado and is just south of the Afungi peninsula, where gas projects worth $60 billion are located.The town is strategically important to the projects.
Taiwan Gets 1st Carbon Neutral LNG Shipment
Taiwan accepted its first carbon neutral shipment of liquefied natural gas (LNG). State-owned CPC Corporation, a natural gas, and gasoline company in Taiwan announced receipt of LNG cargo from Shell.Nature-based carbon credits have been used to compensate the full carbon dioxide (CO2) emissions generated – from exploring for and producing the natural gas, to use by the final consumer.The cargo, which was delivered at the Yung-An LNG Receiving Terminal, will provide enough carbon neutral LNG to power nearly 150,000 homes for a year.Credits used for this deal are purchased from Shell’s global portfolio of nature-based projects…
BV Appoves Cryo-Powered Regas System Design
Bureau Veritas Marine & Offshore (BV) has issued the first approval in principle for a new cold energy ‘Cryo-Powered’ regas system for use in FSRU applications.The approval has been issued to both Mitsui O.S.K. Lines, Ltd. (MOL) and Daewoo Shipbuilding & Marine Engineering Co., Ltd (DSME). The ‘Cryo-Powered Regas’ system is a cold power generation technology based on the Organic Rankine Cycle - a proven technology used in multiple onshore LNG terminals for decades.This will be the first time the system has been developed for use in a floating terminal.
Sempra to Decide on U.S., Mexican LNG Export Plants in 2020
California energy company Sempra Energy said on Thursday it expects to make final investment decisions (FID) this year to build two new liquefied natural gas (LNG) export plants - one in the United States and one in Mexico:Sempra said it plans to make FIDs on the first phase of the Costa Azul export plant in Baja California in Mexico in the first quarter and the Port Arthur export plant in Texas in the third quarter.At Costa Azul, Sempra has said Energia Costa Azul LNG has non-binding 20-year agreements with units of Total…
India Set to Import Record LNG Volumes
India is set to import record volumes of liquefied natural gas (LNG) this month, data shows, taking advantage of the super-chilled fuel's price hitting all-time lows due to the coronavirus outbreak dampening demand in China. The South Asian nation is estimated to import about 2.36 million tonnes in February, shiptracking data from Refinitiv Eikon showed. That would exceed India's LNG imports in October of about 2.3 million tonnes, the previous highest monthly total. The country's annual LNG imports is expected to rise by 10%-15% this year, said Poorna Rajendran of consultancy firm FGE.
Global LNG Demand to Double by 2040: Shell
Global demand for liquefied natural gas (LNG), rose by 12.5% to hit 359 million tons last year, according to Royal Dutch Shell’s annual LNG Outlook report.According to the forecast by Shell, LNG demand was expected to double by 2040 to 700 million tons, with natural gas set to play “a growing role in shaping a lower-carbon energy system.”Asia is expected to remain the dominant region in the decades to come, with South and South-east Asia generating more than half of the increased demand.Natural gas emits between 45 and…
Nakilat Posts Record Net Profit of $270M
Doha-listed LNG and LPG carrier owner Qatar Gas Transport Company Ltd (Nakilat) reported a consolidated net profit of QR1,003m (USD $270 million) in 2019, an increase of 12.4 percent, as compared to QR892m posted for the same period in 2018.The 2019 net profit is Nakilat’s highest profit recorded since its inception, said the Qatari shipping and maritime company.Nakilat's robust financial performance is primarily attributed to operational excellence in the management of its Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) vessels…
Shell, Qatargas Sign LNG Deal for Kuwait
The world’s largest liquefied natural gas (LNG) producer Qatargas has signed a new, long-term LNG sale and purchase agreement (SPA) with Shell to deliver 1 million tons per annum of LNG to Kuwait, commencing this year.Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs said, “We are pleased to announce this new long term agreement between Qatargas and Shell for the supply of LNG to the State of Kuwait, following the recent agreement signed between Qatar Petroleum and Kuwait Petroleum Corporation. These agreements demonstrate our commitment to the State of Kuwait…
Total in 10-Year LNG Bunkering Pact with Pavilion
Temasek-owned Pavilion Energy has signed a 10-year fully-termed agreement to jointly develop an LNG bunker supply chain in the port of Singapore with Total Marine Fuels Global Solutions (TMFGS), a subsidiary of French energy conglomerate Total SA.Global law firm Norton Rose Fulbright has advised on signing the contract.The agreement includes the shared long-term use of 12,000 cu m LNG bunker vessel (LNGBV). In February this year Pavilion chartered an LNGBV newbuilding from Mitsui OSK Lines (MOL) which is currently being…
Australia Becomes World's Largest LNG Exporter
Australia has become the largest liquefied natural gas (LNG) exporter in the world. The record figure knocked Qatar out of the top spot."Australia is set to become the world’s largest liquefied natural gas (LNG) exporter this year, overtaking Qatar, with its supplies expected to reach 81 million tonnes (MT) as Ichthys LNG and Prelude FLNG increase production," Rystad Energy said.Meanwhile, Qatari exports will remain at current levels, around 77 MT. The US will increase LNG exports from about 36 MT in 2019 to 56 MT in 2020, dominating new LNG supply contributions.
Total Rejects Force Majeure Notice From Chinese LNG Buyer
French oil major Total has rejected a force majeure notice from a buyer of liquefied natural gas (LNG) in China, a Total executive said during the company's full-year results presentation on Thursday."Some Chinese customers, at least one, are trying to use the coronavirus to say I have force majeure," said Philippe Sauquet, head of Total's gas, renewables and power segment."We have received one force majeure that we have rejected."A Chinese international trade promotion agency said last week it would offer force majeure…
Coronavirus Paralyzes Oil, Gas Sales into China
Short-term sales of crude oil and liquefied natural gas into China almost ground to a halt this week as the coronavirus slows economic activity and cuts demand and buyers ponder legal action to avoid having to honor purchase agreements, trade sources said.Typically, trade would have revived after the Lunar New Year holiday at the end of January, but China has extended the break into February to try to contain the fast-spreading coronavirus, which has claimed nearly 500 lives.As a result, commodity supply chains have been disrupted with shipments cancelled or delayed and stocks piling up…
LNG Tanker Diverted from China in Sign of Weaker Demand
A liquefied natural gas (LNG) tanker that had been heading to China has been diverted, data intelligence firm Kpler and two industry sources said on Tuesday, probably due to lower demand for the fuel as businesses are hit by the coronavirus outbreak.The Tangguh Foja tanker loaded a cargo at the Tangguh LNG plant in Indonesia last month and had been heading to China's Rudong terminal in Jiangsu province, Refinitiv shipping data shows.It was diverted towards the South China Sea on Jan. 30 and is now between Vietnam and Borneo…
Partners to Expand Pakistan LNG Inport Terminal
Excelerate Energy announced it has agreed with partner Engro Elengy Terminal Ltd. (EETL) to expand the EETL liquefied natural gas (LNG) import terminal in Port Qasim, Pakistan.Under the heads of agreement (HOA), Excelerate will exchange its existing floating storage and regasification unit (FSRU) Exquisite with a newbuild FSRU, Hull 2477, which is currently under construction at South Korea's Daewoo Shipbuilding and Marine Engineering (DSME) shipyard and due to be delivered in April 2020. The newbuild will increase EETL’s…
Cheniere Drops Lawsuit Against Tellurian Board Members
Tellurian Inc on Thursday said Cheniere Energy Inc has dismissed all claims against its Chairman Charif Souki and Vice Chairman Martin Houston.Cheniere Energy, the largest U.S. liquefied natural gas (LNG) exporter, had sued its former chairman and chief executive, Souki, in February 2019, alleging he conspired to help finance a joint venture that led to the formation of rival Tellurian.Tellurian is developing an LNG export plant in Louisiana called Driftwood, which is one of about a dozen of LNG export projects under development in North America.(Reporting by Eileen Soreng in Bengaluru; Editing by Bill Berkrot)
LNG and Shipping Decarbonisation Target
Though liquefied natural gas (LNG) could help the shipping industry to reach its decarbonization target, it could wreck the climate, finds a study.According to a research by the International Council on Clean Transportation (ICCT), switching vessels to the LNG fuel would only serve to worsen shipping’s climate impact due to previously underestimated leakage of the climate super-pollutant methane.More and more ships, including container ships and cruise ships, are being built to run on liquefied natural gas (LNG), which…
Cheniere Energy Ships 1,000th LNG Cargo
US-based liquefied natural gas (LNG) firm Cheniere Energy has produced and exported its 1,000th cargo of LNG.The Houston-based LNG exporter said in a press note that the 1000th cargo was exported within a four-year time period after startup, setting an industry record and making Cheniere the fastest producer in the world to reach this milestone.Cheniere has produced these 1,000 cargoes from both the Sabine Pass Liquefaction Project (SPL Project) and the Corpus Christi Liquefaction Project (CCL Project).“Reaching 1,000 cargoes of LNG faster than any producer in history is a testament to the performance of our people and the culture of our company.
PGNiG: Polish LNG Import Jumps Up
LNG imports to Poland via the Świnoujście LNG Terminal keep rising and stood at 3.4 billion cubic metres in 2019 after regasification, up from 2.7 bcm the year before."The first quarter of 2020 will see peak activity in terms of LNG deliveries. By the end of March this year alone we are to receive ten cargoes coming in from different directions,” said Jerzy Kwieciński, President of the PGNIG S.A. Management Board.The long-term take-or-pay contract with Gazprom via the Yamal pipeline means Russia is still Poland’s dominant supplier.
Annova LNG Sign Deal with Enbridge
Houston liquefied natural gas company Annova LNG has signed a 20-year supply deal with Enbridge, a Canadian pipeline company that owns a 10.5 percent stake in Annova's proposed export terminal.The precedent agreement with Enbridge Inc.’s Valley Crossing Pipeline LLC (VCP) would provide transportation for the still unsanctioned 6.5 million metric tons/year (mmty) facility, which was approved by federal regulators in November.Under the deal, the existing 2.6 Bcf/d VCP from Agua Dulce to Brownsville would be expanded, and…
Aramco Sells LNG Cargo to S-Oil
Aramco Trading Co, the trading arm of oil giant Saudi Aramco, has sold a liquefied natural gas (LNG) cargo to South Korea's S-Oil Corp, as the company looks to ramp up its LNG business, four industry sources said on Wednesday.The cargo is for delivery in early March and was traded on a delivered ex-ship (DES) basis, the sources said.The cargo was sold at around $4.40 to $4.60 per million British thermal units (mmBtu), two of the sources said, though this could not immediately be confirmed.Companies typically do not comment on spot deals.Aramco Overseas Company, a unit of Saudi Aramco, is a major shareholder in S-Oil, which is South Korea's third-l
Osaka Gas Looks to Sell Spare LNG in Europe
Japan's Osaka Gas has offered two liquefied natural gas (LNG) cargoes from the newly-commissioned Freeport LNG project in the United States for delivery into Europe, industry sources said.Mild weather in Japan and a weaker Chinese economy have helped to drag the global LNG market to multi-year lows and forced Asian sellers to seek alternative markets.Osaka Gas has offered the cargoes for delivery into Europe between July 5 and 13 and Nov. 9 and 17, said three of the sources, who asked not to be named because they are not authorized to speak to the press.Bids, which are linked to Dutch TTF prices, are due by Jan.
Asia LNG Spot Prices Drop to Multi-year Low
Asian liquefied natural gas (LNG) spot prices dropped to multi-year lows on Tuesday with at least one cargo being sold into Northeast Asia below the psychological barrier of $4 per million British thermal units (mmBtu).Gas prices are tumbling globally as new projects sanctioned when prices were higher ramp up output just as economic growth slows. A milder than usual winter in North Asia is also curbing demand.Low spot prices will particularly hit companies which purchase LNG through long-term contracts, selling on to end-users at market prices, traders said.
Malaysia in Shanghai LNG Supply Pact
Malaysian state-run giant Petroliam Nasional (Petronas) subsidiary Petronas LNG (PLL) has signed a 12-year liquefied natural gas (LNG) supply deal with China’s Shenergy Group. Under the terms of the 12-year heads of agreement (HOA), Petronas LNG will supply approximately 1.5 million tonnes per annum (MTPA) of LNG to Shenergy’s Wuhaogou receiving terminal.Additionally, the LNG supply agreement involves a shipping collaboration to construct and charter new mid-sized LNG vessels. The deal is effective from 2022.Through this new long-term agreement…
Freeport LNG Kicks Off Train 2
US-based Freeport LNG has started commercial operations at its second of three planned liquefaction trains.Freeport LNG Train 3 remains on track to meet its previously announced schedule, with initial production of LNG scheduled for Q1 of 2020, said McDermott International, Inc. with its partners, Chiyoda International Corporation and Zachry Group."We continue to advance the Freeport LNG Project with another significant accomplishment, the commercial operation of Train 2," said Mark Coscio, McDermott's Senior Vice President for North…
Qatargas Delivers 1st Cargo to Summit LNG
The world’s largest liquefied natural gas (LNG) producer Qatargas Operating Company Limited (Qatargas) has delivered the first Q-Flex cargo of the chilled fuel to the Summit LNG floating storage and regasification unit (FSRU) located offshore Bangladesh.The cargo, aboard Qatargas-chartered 'Al Safliya', was loaded at Ras Laffan Port on 27 December 2019 and delivered to the FSRU on 14 January 2020.This is the first commercial open water ship-to-ship transfer involving a Q-Flex vessel delivering to Petrobangla (LNG buyers) at their Summit LNG Terminal (SLNG).SLNG is a project jointly developed by Excelerate Energy and the Bangladesh Oil…
Gassco Urges to Boost Barents Sea Gas Export
Norwegian state-owned natural gas pipelines operator Gassco published a study saying that it could be profitable to increase the transport capacity for gas.According to the study regarding the transport of gas from the southern Barents Sea several gas transport options from the Barents Sea, including a new pipeline, could prove profitable with today’s known resources.The report, "Assessment of gas transport alternatives in the southern Barents Sea", was presented to Minister of Petroleum and Energy Sylvi Listhaug on Monday.The Norwegian Petroleum Directorate (NPD) contributed in the preparation of the report.
NOAA: Oregon LNG Pipeline Will Have Minimal Impact
The U.S. National Oceanic and Atmospheric Administration (NOAA) said its analysis found that the construction and operation of a new liquefied natural gas (LNG) facility in Coos Bay, Ore. and its associated pipeline will have minimal impact on protected species and their habitats.NOAA Fisheries issued a final biological opinion on construction and operation of the Jordan Cove terminal and the associated 229-mile long Pacific Connector LNG pipeline. After conducting a thorough review, NOAA scientists determined that the…
Sempra LNG, Aramco Sign Deal
North American energy infrastructure company Sempra Energy and Saudi Aramco's Aramco Services Company, signed an Interim Project Participation Agreement for the Port Arthur LNG export project under development in Jefferson County, Texas.According to a press release, the IPPA represents another milestone for both companies after having signed a heads of agreement in May last year for the purchase of 5 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) and a 25% equity investment in the Port Arthur LNG project.Jeffrey W.
Kuwait Signs 15-yr LNG Gas Deal with Qatar
State-owned Kuwait Petroleum Corp signed a 15-year agreement with Qatar Petroleum to import three million tonnes of liquefied natural gas (LNG) each year starting from 2022.The agreement was signed by Dr. Khaled A. Al-Fadhel, the Minister of Oil and the Minister of Electricity & Water, the Chairman of the Board of Kuwait Petroleum Corporation and His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, during a special ceremony held in Kuwait City.Under the 15-year agreement…
Europe Dominates LNG Import Story in 2019
Global liquefied natural gas (LNG) production jumped in 2019, triggering oversupply and low prices that are expected to persist in 2020. Initial full-year data from LNG Edge shows exports at 355 million tonnes in 2019, up from 314.9 million tonnes in 2018.This represents the largest ever increase in production.While East Asian, especially Chinese, demand increased in 2017 and 2018 to absorb additional production, there was little change this year. Instead, supply pushed into Europe reached a record high, having a major…