Wednesday, December 13, 2017

Putin Okays Loading Start at Yamal LNG

President Vladimir Putin launched the first loading of liquefied natural gas at the Novatek-led Yamal LNG project in the Arctic (Photo: SCF Group)

President Vladimir Putin on Friday launched the first loading of liquefied natural gas at the Novatek-led Yamal LNG project in the Arctic, which will further expand Russia's global energy reach. The Yamal project, which required investments of $27 billion, will allow Russia to fulfil a plan to double its share of the global LNG market by 2020 from around 4 percent now. The LNG was loaded onto the ice class tanker "Christophe de Margerie", named after the former head of France's energy major Total, who died in a plane crash in Moscow in 2014. Total holds a 20 percent stake in Yamal LNG. "The loadings will be carried out all year round...

China's Nov. NatGas Imports soar, Crude Shipments Rebound

File Image: A typical LNG Carrier at Sea (CREDIT: QGTC)

Total natural gas imports jump to record as industrial and commercial users face gas shortage. China's natural gas imports in November rose to a record as domestic demand surged while crude imports were the second-highest ever, as refiners ramped up output to cash in on strong profits as fuel prices soar, customs data showed on Friday. November gas arrivals, including pipeline imports and liquefied natural gas (LNG) shipments, hit 6.55 million tonnes, breaking a previous record of 6.1 million tonnes last December, data from the General Administration of Customs showed. Year-to-date gas shipments were 60.7 million tonnes, on track to hit a record.

Excelerate Buys EXMAR’s Share in Four FSRUs

(Photo: EXMAR)

Excelerate Energy has acquired the full 50 percent shares held by EXMAR in four companies, Excelerate NV, Explorer NV, Express NV and Excelsior BVBA, each owners of the respective Floating Storage and Regasification Units (FSRU) registered under the same names, and all four of which are under a long-term time charter to Excelerate Energy. The sale of the first three companies has been completed, while the sale of EXMAR’s shares in the fourth company, Excelsior BVBA, remains subject to approval by JV partner Teekay LNG and company lenders. George B.

Gazprom Signs Memorandum on Iran LNG

Russian gas giant Gazprom said on Wednesday it had signed a memorandum on possible cooperation in a liquefied natural gas project in Iran. It said the memorandum was signed with Iranian Oil Industry Pension, Saving and Staff Welfare Fund. Iran LNG is designed to have two lines of 5.25 million tonnes of annual capacity, each with a view of eventually increasing total production to 21 million tonnes per year. Its key shareholders are National Iranian Oil Company as well as Oil Industry Pension, Saving and Staff Welfare Fund. Gazprom has a number of gas memorandums with Iran. Reporting by Vladimir Soldatkin

U.S. Energy Chief Discussed LNG Exports with Saudi

File Image: U.S. Energy Secretary Rick Perry (CREDIT: DOE)

U.S. Energy Secretary Rick Perry said on Wednesday that he has held discussions with Saudi Arabian officials on possible exports of liquefied natural gas (LNG) from the United States into the kingdom.   Perry was speaking at an industry conference in Abu Dhabi, part of his first official visit to Saudi Arabia, the United Arab Emirates and Qatar this week.   Perry has met with Saudi Crown Prince Mohammad bin Salman and Energy Minister Khalid al-Falih and visited state oil giant Saudi Aramco during his trip.   Reporting by Stanley Carvalho 

Cheniere Boosts LNG Tanker Fleet Amid Asian Demand Boom

© Kpics / Adobe Stock

U.S. liquefied natural gas (LNG) producer Cheniere Energy has expanded its shipping fleet with a flurry of spot vessel charters to keep up with Asian winter demand growth as spot prices hit three-year highs, market sources said. Cheniere's Sabine Pass terminal in Louisiana pumped out 22 cargoes last month and more are expected as it ramps up its fourth production unit, or train, with more than half of all November volumes sold to China, Japan or South Korea, according to ship-tracking data. An 82 percent surge in Asian spot LNG prices this year…

Russia: Second LNG Plant in Arctic

File Image: A typical LNG Carrier at Sea (CREDIT: GAC)

Russia on Tuesday started production at its second liquefied natural gas plant, Yamal LNG, with the aim of shipping the first cargo on Dec. 8 from the remote Arctic port of Sabetta. Russia's No.2 gas producer Novatek owns a 50.1 percent stake in Yamal LNG. France's Total and China National Petroleum Corp each control 20 percent, while China's Silk Road Fund owns 9.9 percent. Russia, seeking to produce more than 70 million tonnes of LNG per year in its remote Arctic regions, for now has just one operational LNG facility, run by Gazprom and co-owned with Shell on the Pacific island of Sakhalin.

Engie Plans to Go Green

French utility Engie plans to switch all of its gas operations to biogas and renewable hydrogen by 2050, making it 100 percent green, its chief executive said on Monday. The power and gas group has some 70 biogas projects worldwide, including 40 in France, and says that if all its projects get approval its annual investment in biogas could soar tenfold to hundreds of millions of euros per year. Engie, which has sold its fossil gas activities as part of a broader restructuring, is also looking to invest in industrial-scale hydrogen production by electrolysing water in places where solar energy is cheap.

Trelleborg Solutions for FLNG Ship-to-Shore System

Photo: Trelleborg

Trelleborg has hailed the recent test of the Universal Transfer System (UTS) conducted with Connect LNG and Gas Natural Fenosa, as tangible evidence of the new applications that its suite of products for jettyless LNG transfer can unlock in this challenging field. The UTS transferred LNG from the Skangas-chartered LNG carrier Coral Energy to the onshore terminal at the Norwegian port of Herøya on October 7 and is now in full commercial operation. A ‘plug and play’ solution, the UTS requires no modifications to the LNG carrier – instead…

Trafigura, Eni Execute Landmark LNG Futures Contract

Commodity trader Trafigura and Eni Trading and Shipping traded the first liquefied natural gas (LNG) futures contract representing delivered prices to Dubai, Kuwait and India, Singapore Exchange (SGX) said on Wednesday. A total of 100,000 million British thermal units, a fraction of a standard-size cargo, of February 2018 futures was cleared by SGX at a price of $9.85 per mmBtu on Dec. 8, the exchange said in a statement. Tullett Prebon brokered the trade, the first of its kind to represent delivered prices to the Middle East and India.

Novatek Sells First Yamal LNG Cargo to Petronas

Russia's largest non-state gas producer Novatek has sold its first liquefied natural gas cargo of 170,000 cubic metres from the Yamal LNG project, with Petronas LNG UK Ltd (PLUK) the buyer. Novatek launched loadings from the $27 billion Yamal LNG project on Friday. Novatek's head Leonid Mikhelson has said Yamal LNG will ship three gas cargoes by the end of 2017 and start selling fuel under long-term contracts after April 2018. According to the Reuters data, the first tanker, called Christophe de Margerie after the ex-head of France's Total , sailed westwards from the Yamal port of Sabetta.

Trafigura's LNG Trade Soared in 2017

File Image (CREDIT: AdobeStock / (c) Fotmart)

Commodities trader Trafigura grew liquefied natural gas (LNG) traded volumes by 27 percent to 8.1 million tonnes of the super-cooled fuel this year after expanding its trading desk, aided by sharp Asian demand growth. Swiss trading houses are expanding into the global market for LNG, until recently the preserve of energy giants, and expect to grab a $10 billion share of the business this year, delivering more than 8.5 percent of global supply. Trafigura, the biggest independent trader of LNG by volume in 2016 at 6.4 million tonnes, this year extended its leading position, it said in its 2017 annual report.

CERCG Looking to Ship LNG from Australia's West to East

State-owned China Energy Reserve and Chemicals Group (CERCG) on Monday said it is investigating whether to ship liquefied natural gas (LNG) from Western Australia to the gas-hungry east coast market. The Chinese integrated energy firm, which runs oil and gas projects, processing plants and gas distribution, said in a press release to Reuters that subsidiary CERCG Australia is studying the viability of transporting LNG by road, rail and ship. CERCG Australia's business manager Kevin Gao said the company would use LNG container tanks which can maintain liquefaction for 110 days.

PSO Suspends Fuel Oil imports on LNG Push

File Image: A typical LNG Carrier at Sea (CREDIT: QGTC)

2nd LNG terminal inaugurated 2 weeks ago; fuel oil demand unlikely to recover - official. Pakistan State Oil (PSO) has suspended imports of fuel oil after an abrupt drop in domestic demand as the country turns to liquefied natural gas (LNG) to fuel its power sector, two company officials told Reuters on Wednesday. It is not clear how long the suspension will last but the country's state-owned oil importer is expected to drastically cut fuel oil imports, one of the sources said, speaking on condition of anonymity as he was not authorised to speak with media.

Wison, CCS Partner on China’s FSRU Standards

Photo: Wison

Wison Offshore & Marine announced it will collaborate with China Classification Society (CCS) Wuhan Rules & Research Institute on various fronts of floating liquefied natural gas (FLNG) storage and re-gasification facility (FSRU) developments in China under a strategic cooperation agreement. Pursuant to the agreement, both parties will embark on a wide range of joint efforts in development and optimization of FSRU products, formulation of relevant technical standards, design and review, joint research of new technologies, exchange of know-how and talent development for the industry.

Aker BP Sheds 10 pct Stakes in Valhall, Hod Fields

File Image (CREDIT: Global Marine Systems)

Norwegian oil firm Aker BP has agreed to sell 10 percent stakes in two North Sea fields to private equity-backed Pandion Energy for an undisclosed amount to help pay for expansion plans in the area, it said on Monday. The deal will leave Aker BP with holdings of 90 percent in each field, and will help pay for projects such as the Valhall Flank West, which is estimated to come on stream in 2020. Aker BP in October announced a $2 billion deal to buy Hess Corp's 64.05 percent stake in the Valhall field and 62.5 percent in Hod, raising its ownership to 100 percent, but added it would seek a partner for the licences.

Total to supply LNG for CMA CGM's Future Boxships

File Image: A typical CMA CGM boxship underway. CREDIT: (c) C. Plisson

Total to supply 300,000 T of LNG a year for 10 years. Total will supply liquefied natural gas (LNG) to CMA CGM to fuel the container shipping group's future very large vessels, the French companies said on Monday. CMA CGM had said last month it would use LNG to power the nine extra-large vessels it has on order, a first such move in a shipping industry grappling with how to comply with tougher rules on emissions. Under the 10-year agreement, oil and gas major Total will supply around 300,000 tonnes of LNG per year to CMA CGM, starting in 2020, the companies said in a statement. Financial terms were not disclosed.

LNG Shipping on Recovery Path: Golar

Photo: Golar LNG Limited

The shipping market recovery is underway, says Golar LNG. Shipping demand has exceeded supply growth for the first time since 2013. "The shipping market is showing strong signs of improving. As of today, the effective time charter rates being achieved in 4Q are more than twice that recorded in 3Q. An improving trend is expected to continue into 2018-2019 when shipping supply should lag demand created by increased production. At full utilization, every $10,000 increase in shipping rates equates to approximately $40 million additional annual operating cash flows across the entire fleet," says a statement from the company.

Rising US LNG Exports Boost Interest in Natgas Futures

© Anatoly Kolodey / Adobe Stock

A surge in speculative interest in the U.S. liquefied natural gas (LNG) export boom has pushed open interest in natural gas futures to an all-time high, traders said on Thursday. Open interest, which measures the number of contracts outstanding, in the Henry Hub front-month hit 386,826 on the New York Mercantile Exchange on Wednesday, topping the previous high of 366,383 set in May 2016, according to Reuters data going back to 1990. "There has been a narrative around the market that the LNG exports are going to be the difference maker this winter…

Qatar's New LNG Giant to Start Operations Jan. 1

Qatar Petroleum's merger of liquefied natural gas (LNG) producers Qatargas and RasGas will take effect on Jan. 1 when the combined entity will commence operations, industry sources said on Thursday, citing an internal company memo. In an email inviting staff to a convention at the Sheraton in Doha on Dec. 6, Qatargas Chief Executive Khalid Khalifa Al Thani told staff to expect an update on the strategy and leadership team of the new company, two sources said. Day 1 of the new Qatargas - incorporating RasGas - will be Jan. 1, the sources quoted the email as saying. Qatargas and RasGas are already the world's two biggest LNG producers.

Novatek, Marubeni, Mitsui agree on LNG hub in Kamchatka

Russia's Novatek said on Tuesday it had signed a memorandum of understanding with Japan's Marubeni and Mitsui O.S.K. Lines to explore options for a liquefied natural gas complex in Russia's Kamchatka region.   Novatek added that the action plan was to explore opportunities to establish an LNG transshipment and marketing complex at Kamchatka in Russia's far east.   Novatek plans to launch its first LNG plant on Russia's Yamal peninsula next month, to export supercooled gas both to Europe and Asia. (Reporting by Katya Golubkova; Editing by Dmitry Solovyov)

BW LPG Sees Better Market Sentiment for 2018 vs 2017

(Photo: BW LPG)

Natural gas shipper BW LPG expects a better freight market in 2018 than in 2017 and will not make any new long term contracts below $20,000 per day for its very large gas carriers (VLGC), CEO Martin Ackerman said on Thursday.

Novatek Aims to Launch Yamal LNG on Dec 8

(Photo: Novatek)

Russia's Novatek has provisionally set Dec. 8 as the official launch date for its Yamal LNG plant, two sources with direct knowledge of the event planning told Reuters. Novatek's partners on the project are France's Total, the China National Petroleum Corp (CNPC) and China's Silk Road Fund. The project, on the Yamal Peninsula above the Arctic Circle, will be Russia's second LNG plant after Sakhalin-2 on the Pacific island of Sakhalin. At full capacity, the Yamal facility will be able to produce 16.5 million tonnes of liquefied natural gas a year, which it will ship to Europe and Asia. It is being built in three phases.

Qatari Energy Minister Sees LNG Oversupply

© mmmx / Adobe Stock

Qatar's energy minister, Mohammed al-Sada, said on Wednesday he expects oversupply of liquefied natural gas in the coming years due to increased production, but the market should tighten after 2025. Al-Sada, speaking at the Gas Exporting Countries Forum in Santa Cruz, Bolivia, said the country, the world's largest exporter of LNG, is working to increase gas production and LNG exports. Reporting By Marianna Parraga

India's LNG Play Risks Eventual Shortages

File Image (CREDIT: AdobeStock / (c) Fotmart)

India is planning to join the Asian rush to boost the use of natural gas over coal, a further sign that the liquefied natural gas (LNG) market will tighten faster than previously expected. India's state oil refiners Indian Oil, Bharat Petroleum and Hindustan Petroleum aim to raise the contribution of natural gas to between 5 percent and 15 percent of their incomes over the coming years, up from virtually zero currently. This is part of the government's target to boost the natural gas portion of India's primary energy mix to 15 percent by 2030, up from 6.5 percent now.

H-100 Gas Turbine Completes Low NOx Testing

H-100 Gas Turbine (Photo: MHI)

Mitsubishi Heavy Industries, Ltd. (MHI), Mitsubishi Hitachi Power Systems, Ltd. (MHPS) and Mitsubishi Heavy Industries Compressor Corporation (MCO) have completed testing of MHPS’s 2-shaft 120MW H-100 Gas Turbine. The H-100 utilizes the latest combustor technology and is the industry leader in terms of low NOx (single digit ppm) for full-load operations for thermal power plants as well as mechanical drive liquefied natural gas (LNG) applications, utilizing high-efficiency compressors manufactured by MCO. Following completion of testing…

Ancala Acquires Apache's North Sea Gasline Assets

Independent UK-based infrastructure investment fund Ancala Partners has finalised its acquisition of Apache Corp's interests in two North Sea gas pipeline assets for an undisclosed sum, it said on Monday.   Through its North Sea-focused mid-stream oil and gas acquisitions platform, Ancala took Apache's 30.28 percent stake in the Scottish Area Gas Evacuation (SAGE) System and its 60.58 share of the Beryl Gas Pipeline.   The SAGE system comprises a 323-kilometre (200 mile) pipeline and gas processing terminal at St. Fergus near Aberdeen in Scotland, where gas from nine offshore fields is treated.   (Reporting by Oleg Vukmanovic 

Trafigura to Develop Another Pakistan LNG Import Project

File Image: A typical LNG Carrier at Sea (CREDIT: QGTC)

Swiss commodity trader Trafigura said it plans to develop its second liquefied natural gas (LNG) import terminal in Pakistan, alongside an existing project in which it has a minority stake. At a inauguration ceremony for Pakistan's second LNG import project, Pakistan GasPort Ltd (PGPL), in Port Qasim in Karachi, the trader said it would add a jetty, berth and a second floating storage and regasification unit (FSRU) to the existing facility. Trafigura expects to benefit from lower development costs by taking advantage of existing infrastructure at the site. The joint venture with PGPL will sell gas to private sector customers.

Oil Stalls as Bullish Hedge Funds Prompt Caution

File Image (CREDIT: AdobeStock / (c) Lacadp)

Hedge funds increased their bullish position in petroleum futures and options to a new record last week, but the first signs of caution started to emerge. Fund managers raised the number of long positions in the five major futures and options contracts covering Brent, WTI, U.S. gasoline and U.S. heating oil to a record 1.31 billion barrels on Nov. 14. Minus short positions, portfolio managers held a net long position of 1.12 billion barrels in the five main contracts, which was also a new record, according to regulatory and exchange data.

Gazprom, Mitsubishi Corp. in Talks on LNG Cooperation

Gazprom said on Friday it had held talks with Japan's Mitsubishi Corp. on Friday about cooperation at the Russian gas giant's Sakhalin-2 liquefied natural gas (LNG) plant.   The talks, in the Russian city of St Petersburg, were between Gazprom head Alexei Miller and Takehiko Kakiuchi, the president and CEO of Mitsubishi Corp, Gazprom said in a statement.   It said the talks focussed on the planned construction of a third production train at the Sakhalin-2 LNG plant. (Reporting by Christian Lowe; editing by Alexander Smith)

Wison Signs MOU for Medium Large Floating LNG Power Solution

WisonShanghai Electric Strategic Cooperation Signing Ceremony (Photo: Wison)

Wison Offshore & Marine has signed a Memorandum of Understanding (“MOU”) on strategic cooperation with Shanghai Electric Power Generation Group. Two parties will join their efforts in medium to large-scale floating LNG power generation barge, with regards to its product development, global marketing and technical services. Such collaboration aims to promote the commercialization of this new electrification solution while opening up a series of further cooperation in power sector between Wison and Shanghai Electric. The…

Deal for Floating LNG Powerplant in China

As the proliferation of LNG use spreads rapidly in the maritime and energy sectors, word from China is that Wison Offshore & Marine has signed an MoU with  Shanghai Electric Power Generation Group, on a joint effrot to develop medium to large-scale floating LNG power generation barges. Wison brings a wealth of experience and integration capability in floating LNG facilities, while Shanghai Electric is a leader in core gas power equipment and EPC services for international power projects. Based on the Floating LNG Storage Regasification and Power Generation (FSRP) solution developed by Wison earlier on…

Pakistan LNG Import Project Consortium Folds -Hoegh LNG

A consortium behind a liquefied natural gas (LNG) import project in Pakistan, including oil giant Exxon Mobil, France's Total and Qatar Petroleum, has been dissolved, shipping company Hoegh LNG said on Thursday. Hoegh LNG was due to supply the project's ship-based import terminal, a floating storage and regasification unit (FSRU), where LNG brought in by tanker is converted back to gas to feed into Pakistan's grid. The other six members of the consortium were Japan's Mitsubishi and Turkish developer Global Energy Infrastructure (GEI). "The consortium has spent considerable time and resources on finding [the project's] final form and structure.

Gorgon LNG Export Plant Shuts Third Unit for Maintenance

Chevron's Gorgon liquefied natural gas (LNG) export facility in Australia shut down its third production unit on Wednesday for a planned maintenance lasting up to Dec. 25, trade sources said.   Chevron declined to comment on operational matters.   Several traders said the plant would resume output on Dec. 25 but some sources said the maintenance period could vary, with a potential return after one week.   Work seeks to help address what is expected to be a long-term issue related to the plant's heat-exchangers, limiting the project's productive capacity.     (Reporting by Oleg Vukmanovic, editing by David Evans)

Pakistan LNG Passes on Trafigura, Gunvor Cargo Deliveries

Pakistan LNG Ltd has decided against awarding in a tender three liquefied natural gas (LNG) cargoes due to be delivered by trading house Trafigura and Gunvor between December and January, trade sources said. In a tender seeking four December shipments, Trafigura submitted the lowest bid for the Dec. 1-2 delivery slot, according to a bid evaluation report published by Pakistan LNG. Gunvor and B.B. Energy submitted the lowest bids to supply the remaining three cargoes for the month. In a similar tender for January shipments, Gunvor submitted the lowest bids to supply one cargo on Jan. 16-17 and another on Jan. 21-22, which will not be awarded.

BW Group, Mitsui Form FSRU Joint Venture

FSRU BW Integrity is on charter to provide LNG regasification services at Pakistan’s second LNG import terminal for 15 years (Photo: Mitsui & Co.)

A joint venture agreement between Japan’s Mitsui & Co. and Singapore’s BW Group Limited will see Mitsui purchase a 49 percent share in the floating storage and regasification unit (FSRU) BW Integrity, while BW will maintain a 51 percent share. The deal is expected to close as soon following payment for the acquisition. BW Integrity is currently in Port Qasim on a 15-year charter to PGP Consortium Limited (PGPC), to provide LNG regasification services at Pakistan’s second LNG import terminal. BW will continue to provide commercial and technical management services.

U.S. Stance Complicates Total's Iran Gas Deal

French oil and gas major Total would have to review its Iran gas project if the United States decided to impose unilateral sanctions on Tehran, given the company's assets in the U.S. market, its chief executive told CNN. Last month, U.S. President Donald Trump refused to formally certify that Iran was complying with the nuclear deal, defying both allies and adversaries. He warned that he might ultimately terminate the agreement. The U.S. Congress now has about a month to decide whether to reinstate sanctions. "Either we can do the deal legally if there is a legal framework…

LNG Over-Supply Narrative Still Valid?: Russell

file Image: an LNG tanker transits the Med (CREDIT: Robert Murphy)

Liquefied natural gas (LNG) is supposed to be a deeply over-supplied market, but it doesn't appear to be behaving as such in the major consuming region of Asia with strongly rising prices amid robust demand growth. In fact LNG currently looks much more like an under-supplied market, where spot buyers are forced to bid more for increasingly difficult to source cargoes ahead of the peak winter demand period in the northern hemisphere. It may well be the case that the current increase in the Asian spot price <LNG-AS> is the last hurrah before new supply does indeed swamp demand growth.

Port Corpus Christi to benefit from LNG partnership with China

 ©Trong Nguyen/Adobe Stock

Port Corpus Christi officials are confident that the agreement signed between Cheniere Energy of Houston and China National Petroleum Corporation (CNPC) will bring increased traffic to the port, according to the San Antonio Business Journal. Officials from Cheniere accompanies President Trump on his tour to China and signed a Memorandum of Understanding with the Chinese company. CNPC is the largest gas and oil supplier and producer in China and is also one of the largest providers of oilfied services. The company also has interests in petroleum production…

Delfin Taps China for US FLNG, but Final Investment Decision 'Challenging'

(Image: Delfin LNG)

Delfin Midstream, developing the first floating facility to export U.S. natural gas, has sealed a preliminary 15-year sales deal with city gas distributor China Gas Holdings, Delfin founder and Chief Executive Officer Frederick Jones said. But industry veteran Jones told Reuters in an interview that Delfin is also tapping unnamed Chinese banks to fund its ambitious $8 billion as the current global supply overhang in liquefied natural gas (LNG), with bumper exports also expected from Australia and Qatar, makes Delfin’s target of a final investment decision (FID) in 2018 challenging.

Skangas, Titan LNG Sign MoU

Photo: Skangas

Skangas of Norway and Titan LNG based in The Netherlands have signed a Memorandum of Understanding (MoU). The two companies will cooperate on serving marine Liquefied Natural Gas (LNG) customers. For ship operators this agreement will contribute to the overall availability as well as the optimization of LNG deliveries in the wider region. Skangas of Norway and Titan LNG based in The Netherlands have signed a Memorandum of Understanding (MoU). The two companies will cooperate on serving marine Liquefied Natural Gas (LNG) customers.

VT Halter Nabs Deal to Build LNG Bunkering ATB

As  the move toward LNG as marine fuel moves foward in earnest, Singapore Technologies Engineering Ltd (ST Engineering) announced that its US shipyard, VT Halter Marine won the contract by Quality Liquefied Natural Gas Transport, LLC (Q-LNG) to build America’s first offshore Liquefied Natural Gas Articulated Tug and Barge (LNG ATB) unit. Q-LNG contracted VT Halter Marine for engineering services to complete the detailed design for the development and construction of one LNG Bunkering ATB unit. The ATB Tug will have 5,100 hp GE 6L250 MDC EPA Tier 4 main engines, with Z-drives, and dimensions of 128 x 42 x 21-ft..

U.S. NatGas Ticks Up as Traders Reassess Market

© Sergii Ryzhkov / Adobe Stock

U.S. natural gas prices have bounced by almost 10 percent since the start of the month as traders reassess their earlier bearish view this winter amid signs sentiment had become far too gloomy. Futures prices on the New York Mercantile Exchange for gas delivered to Henry Hub in January 2018 have risen to almost $3.30 per million British thermal units from $3.00 on Nov. Prices for January, at the height of the winter heating season, now command a premium of almost 32 cents over April, up from just 16 cents at the start of the month.

Wessels Reederei Takes the Lead on LNG Conversions

“Our Wes Amelie is now the worldwide first retrofit of a container vessel from heavy fuel to natural gas,” said Gerd Wessels in the Maritime Reporter article. Photo: PPM News Service Maritim

The move toward LNG as fuel is gaining momentum quickly, driven not only by newbuild installations but now by companies signing on to convert existing ships to the environmentally friendly solution. Germany's Wessels Reederei -- which was the first company in the world to convert a containership to LNG fuel, signed a letter of intent with MAN Diesel & Turbo regarding the conversion of three of its fleet to dual-fuel gas operation. The three ships are sisters to the Wes Amelie, a 1,036-teu feeder container ship with an MAN 8L48/60B main engine that was retrofitted to a multi-fuel, four-stroke MAN 51/60DF unit earlier in 2017.

North West Shelf LNG Export Plant in Partial Outage

File Image (CREDIT: AdobeStock / (c) Fotmart)

Australia's North West Shelf liquefied natural gas (LNG) export plant suffered a partial outage on Friday morning after several production units were taken offline, though at least one is in the process of restarting, trade sources said. The outage has the potential to lift Asian spot LNG prices <LNG-AS> in an already tightening market. One trade source said three production units, or trains, may have been affected, but immediate confirmation was not possible. The five-train plant can produce 16.3 million tonnes of LNG a year. Operator Woodside Petroleum did not respond immediately to a request for comment.

Trump Signs 43 Billion Dollar LNG Deal with China

Pixabay.com

On his visit to China, President Trump reaffirmed his commitment to form agreements that reduce the trade deficit with China by signing a deal to help the LNG industry in Alaska with three Chinese companies. The deal, which could be potentially worth $43 billion, involves Sinopec, the largest oil company in China, the sovereign wealth fund and one of China's largest bank. will work together to create 12,000 jobs in Alaska. The deal has the potential to reduce the US-China trade deficit  by $10 billion a year. The agreement…

Total Buys Engie's LNG Assets for $1.5B

French oil and gas major Total said on Wednesday it has reached an agreement to buy the liquefied natural gas (LNG) assets of energy group Engie in a deal worth $1.5 billion. Total said the portfolio includes all of Engie's LNG trading and liquefaction assets, which will enable it become one of the world's top LNG players with a 10 percent market share from 6 percent currently, making it second behind rival Shell. Additional payments of up to $550 million could be payable by Total in case of an improvement in the oil markets in the coming years, it said.

As China Faces Winter Gas Crunch, LNG Prices Soar

File Image: A typical LNG Carrier at Sea (CREDIT: MISC)

In unusual move, LNG spot prices jump above oil-linked prices. China is hoovering up liquefied natural gas (LNG) cargoes worldwide, pushing spot prices for the fuel above those for oil-indexed cargoes, as energy providers scramble to avoid a looming winter supply crunch. China has moved millions of households from burning dirty coal to natural gas this year, pushing up import demand amid an already tightening overall Asian market. Most Asian LNG supplies are delivered under long-term contracts with prices linked to crude oil.

Wison, KBR Team up for FLNG Project

(Photo: Wison)

 Wison Offshore & Marine said it has signed a memorandum with KBR, Inc. for cooperation on a 1.5 MPTA floating liquefied natural gas (LNG) liquefaction unit (FLNG) in Southeast Asia.   The companies will collaborate on a mutually exclusive basis for Kumul Petroleum Holdings Limited's FLNG project in Papua New Guinea.

Greek Firm Inks Gas Deals with Iraeli Companies

Greek energy firm Energean said on Tuesday it signed three new deals to sell natural gas from the Karish and Tanin offshore fields to Israeli companies. The deals were signed with Dorad Energy Ltd and two subsidiaries of the Edeltech Group, Ashdod Energy and Ramat Negev Energy. Energean's deal with Dorad is for the supply of up to 6.75 billion cubic metres (BCM) of gas over at least 14 years, while Ashdod and Ramat Negev will get up to 2.65 billion cubic metres together. Financial details for the deals were not included. The Karish and Tanin fields, located off the coast of Israel, are expected to go online in 2020.

PetroChina's Q3 net profit leaps

China's largest oil and gas producer PetroChina reported on Monday a leap in third-quarter net profit on rebounding crude prices and deleveraging. Net profit surged to 4.69 billion yuan ($706 million), up 290 percent from a year earlier, as the company cut debt and interest expenses. Revenues rose to 481.8 billion yuan, up 17 percent from the same period last year, PetroChina said in a filing to the Hong Kong stock exchange. The state giant's share price, however, has been hovering near the lowest since 2005, weighed down by still weak global oil prices while refining margins are under pressure from competition from independent refineries.

Speculators Cut U.S. NatGas Net Longs for 4th Week in Five

File Image: Credit GAC

U.S. natural gas speculators cut their net long positions for the fourth out of the past five weeks on expectations supplies will be adequate this winter with storage near normal levels, output at record highs and forecasts for another warm winter.   Speculators in four major New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE) markets reduced bullish bets by 17,232 contracts to 225,644 in the week to Oct. 24, the U.S. Commodity Futures Trading Commission said on Friday.   Reporting by Scott DiSavino

Indian Oil Aims for LNG Import Capacity of 13.5 Mln T in 5 Years

State-owned Indian Oil Corp Ltd aims to have capacity to import about 13.5 million tonnes of liquefied natural gas (LNG) in five years, its head of business development said on Friday, helping India to gradually move to a gas-based economy. Prime Minister Narendra Modi's government wants to raise the share of natural gas in India's energy mix to 15 percent in the next few years from about 6.5 percent now. "We hope to have 13-13.5 million tonnes in a phased manner in about five years," G.K. Satish said. Indian Oil Corp (IOC)…

Exxon Mobil's Profit Jumps 50 Percent

Exxon Mobil Corp, the world's largest publicly-traded oil producer, said on Friday its quarterly profit jumped 50 percent on higher crude and natural gas prices.   The company posted net income of $3.97 billion, or 93 cents per share, in the third quarter, compared to $2.65 billion, or 63 cents per share, in the year-ago period. Exxon said Hurricane Harvey, which tore through the U.S. Gulf Coast region in August, dented quarterly earnings by 4 cents per share.   Production rose about 2 percent to 3.9 million barrels of oil equivalent per day.   Reporting by Ernest Scheyder 

Exmar in Talks to Supply FLNG Vessel for Iran Project

Caribbean FLNG (Photo: Exmar)

Belgium's Exmar is in negotiations for the use of its floating liquefied natural gas vessel Caribbean FLNG (CFLNG) for an Iranian export project, the company told Reuters on Thursday. The barge-based liquefaction facility, delivered to Exmar earlier this year, was initially destined to go to Colombia, but remains unemployed after its contract was terminated. The National Iranian Oil Company (NIOC) said in a statement on its website it would supply natural gas for the project, led by Norway's IFLNG, and that it expected to use the Caribbean FLNG vessel. The chairman of IFLNG, Gerhard Ludvigsen, confirmed the plans in an email to Reuters.

GTT Wins Prelude FLNG Work

Prelude FLNG (Photo: Shell)

France's GTT has won a contract to provide membrane cargo containment system services to Shell's Prelude floating liquefied natural gas (FLNG) facility in the Browse basin off western Australia. The contract will provide support for the engineering, inspection, maintenance as well as testing of the containment system. The Prelude FLNG facility recently arrived at its location 475 km northeast of Broome where the hook-up and commissioning phase of the project is underway. Prelude FLNG has a liquefied gas storage capacity of 326,000 m3.

WER 2018 Floating Production Systems Forecast

(File photo: © SBM Offshore)

World Energy Reports’ (WER) 2018 Forecast Report, the 21st in a series of forecasts dating from 1998, presents projection of floating production system orders over the next five years. The 102-page report provides market intelligence and insights useful to business planners and others involved in deepwater development. First we present our assessment of the underlying deepwater market conditions likely to prevail over the 2018/22 time frame. Then we provide our forecast of orders for FPSOs, FPUs, FLNGs, FSRUs and FSOs under three market scenarios.

BP’s LNG Carrier Fleet is Growing

BP said it will take delivery of six new, state-of-the-art liquefied natural gas (LNG) tankers in 2018 and 2019 to support its expanding global LNG portfolio. BP’s finance partners KMarin and ICBC Leasing are investing more than $1 billion in the tankers. The vessels will join BP’s exixting fleet to help service a 20-year liquefaction contract with the Freeport LNG facility in Texas, as well as other international LNG projects in BP’s global portfolio. “These vessels will significantly increase BP’s ability to safely transport LNG to anywhere in the world, directly supporting BP’s global natural gas strategy,” said BP Shipping CEO Susan Dio.

MET International Plans to Boost LNG Trades

Switzerland-based MET International AG plans to boost its liquefied natural gas (LNG) trades in Europe by 50 to 100 percent next year, the company's chief executive said on Tuesday. Gyorgy Vargha said that while the company had traded one cargo, or 60,000 tonnes of LNG, per month this year, this is expected to rise to between 1.5 and two cargoes per month in 2018 as MET seeks to increase its role in that segment. MET International was established in 2010 as the natural gas trading arm of parent MET Group, whose activities include gas, oil and power generation in Hungary, Croatia, Romania, Slovakia, Switzerland and the United Kingdom, among others.

Where's the Money? Oil Traders Ask as Peak Demand Looms

File Image (CREDIT: AdobeStock / (c) Gear STD)

Traders still see opportunities in oil trading as Mercuria bets on power markets in U.S., China. For major trading houses that ship millions of barrels of oil every day, the prospect of diminishing fuel demand and a shift to renewable power poses a brain-racking challenge with few obvious solutions. "It is a very fair question - what the hell are we going to do?" said Ian Taylor, chief executive of the world's top oil trader Vitol, which trades seven percent of the world's oil. "It's not obvious. We will still have a business, I'm sure, but it may well be a very different business," he told the Reuters Commodities Summit.

Gastrade Signs LNG Deal with State-owned DEPA

Greece's state controlled natural gas firm DEPA signed a cooperation agreement on Thursday with natural gas company Gastrade to participate in the development of a liquified natural gas terminal in northern Greece, DEPA said. Greece currently has one LNG terminal on an islet off Athens. Gastrade, part of Greek energy group Copelouzos, is planning a second LNG terminal near the northern city of Alexandroupolis. The project has been described as a 'project of common interest' by the European Union. Gastrade will hold at least 20 percent stake in the scheme, a source close to the matter said, with LNG carrier operator GasLog another 20 percent.

Petronas' Canadian Unit to Look at other LNG Opportunities

Progress Energy, a wholly-owned unit of Malaysia's Petronas, will look at other liquefied natural gas opportunities as a way to monetize its Canadian gas assets after Petronas scrapped a $29 billion LNG project this year, a company executive said on Wednesday. Petronas, the Malaysian state-owned energy company, abandoned plans to build the Pacific Northwest LNG plant in northern British Columbia in July due to weak prices, leaving Progress with 800,000 acres of land rights in the Montney shale play and 50 trillion cubic feet a day of reserves.

Yamal LNG to Ship Two LNG Cargoes in November

(File photo: PAO Sovcomflot)

The Russian Yamal LNG project will ship the first two cargoes of liquefied natural gas in November, followed by another four in December, Russia's customs service said on Tuesday.   The Yamal LNG project is co-owned by local Russian gas producer Novatek, as well as France's Total, China's CNPC and the Silk Road Fund.   Reporting by Oksana Kobzeva 

Keyera, Chevron Ink NGL Transport, Storage Deal

Canadian pipeline operator Keyera Corp said on Tuesday it signed a 20-year agreement with Chevron's Canadian unit to transport and store natural gas liquids (NGL).   Under the deal, Chevron will deliver about 50 percent of its NGL from its Kaybob Duvernay operations near Fox Creek, Alberta to Keyera for storage and terminal services.   Keyera said it might expand its facilities in the future, depending on the success and scale of Chevron's Duvernay program.   Reporting by John Benny 

Buyers Eye Sinopec's Argentina Oil Assets

Sinopec's Argentine assets worth about $750 mln-$1 bln; Sonangol, Rosneft among potential suitors. Advisers to China's Sinopec have offered its oil assets in Argentina to about a dozen potential suitors, three sources familiar with the matter said, as losses and labour headaches prompt Asia's largest refiner to pull out. The Argentine oil and gas assets, mainly in the southern province of Santa Cruz, could be worth $750 million to $1 billion, one of the sources said. That would be less than half the $2.45 billion Sinopec paid in 2010 to buy the Argentine assets from U.S.-based Occidental Petroleum Corp…

Chevron Starts LNG Output at Wheatstone Project

Wheatstone Project in Western Australia. Photo: Chevron Corporation.

Chevron Corporation announced it has started producing liquefied natural gas (LNG) at the Wheatstone Project in Western Australia. The first cargo is on track to be shipped in the coming weeks. “First LNG production is a significant milestone and is a credit to our partners, contractors and the many thousands of people who collaborated to deliver this legacy asset,” said Chevron Chairman and CEO John Watson. At full capacity, the Wheatstone Project’s two train LNG facility will supply 8.9 million metric tons per year of LNG for export to customers in Asia.

Speculators Cut U.S. NatGas Net Longs Again - CFTC

File Image (CREDIT: AdobeStock / (c) Gear STD)

U.S. natural gas speculators cut their net long positions for a second week in a row on less cold winter forecasts and an increase in production to record levels.   Speculators in four major New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE) markets reduced their bullish bets by 28,839 contracts to 225,886 in the week to Oct. 3, the U.S. Commodity Futures Trading Commission said on Friday.   Reporting by Scott DiSavino 

IEnova Ups Stake in Mexican Natural Gas Pipeline

File Image: A typical natural gas pipeline header / (CREDIT: AdobeStock / (c) Pisotckii)

Mexico's Infraestructura Energetica Nova (IEnova) said Friday it had acquired state oil firm Pemex's stake in the joint venture Ductos y Energeticos del Norte, increasing its participation in the second phase of a key natural gas pipeline. As a result of the transaction, IEnova's indirect stake in the project known as Ramones II North, will increase to 50 percent from 25 percent, said IEnova, a unit of U.S.-based Sempra Energy. The value of the operation is approximately $520 million, the company said.   Reporting by Julia Love and Veronica Gomez

Ketelaars Takes the Lead for DNV GL - Oil & Gas in the Americas

Frank Ketelaars (Photo: DNV GL)

Frank Ketelaars took up the position of Director of Region Americas in DNV GL – Oil & Gas on 1 October, as North America’s energy system undergoes a transition. DNV GL’s recently published Energy Transition Outlook shows significant shifts in US federal energy and climate change policies. Reducing dependence on imports is a key driver for the energy transition in North America. Large shale gas reserves have enhanced energy security, enabling the substitution of coal-fired power plants with gas-fired capacities and complementing the shift to renewables. Liquefied natural gas (LNG) terminals will diversify sources of import and boost exports.

Asian Spot LNG at Highest Level Since January

File Image: A laden LNG carrier transits the Mediterranean Sea this past week (CREDIT: Robert Murphy)

Spot LNG prices hit $8.5/mmBtu as market tightens, but market outlook remains weak due to rising output. Asian spot prices for liquefied natural gas (LNG) edged to their highest level since January this week, as the market gradually tightened ahead of the peak-demand winter heating season and as consumption in China soars amid its huge gasification programme. Spot prices Asian LNG <LNG-AS> rose 10 cents to $8.50 per million British thermal units (mmBtu), their highest since January this year. Climbing Chinese demand amid…

Statoil Says Ireland's Corrib Gas Outage Extended

An outage in the output of Ireland's Corrib gas field has been extended by 24 hours to Oct. 7 at 0600 CET (0400 GMT), Norway's Statoil said in a statement on Thursday. The Corrib field's output will be reduced by 9.9 million cubic metres per day. Statoil did not say why the outage was extended.   Reporting by Lefteris Karagiannopoulos

Australia Ramps Up LNG Exports

A laden LNG Carrier underway in the Mediterranean Sea earlier this week. CREDIT: Robert Murphy

Australia LNG exports tipped to rise to 74 mt in 2018-19; Australia's share of Japan, Korea LNG imports seen growing. Australia expects to increase exports of liquefied natural gas (LNG) by 16 percent from mid-2018 as $180 billion in new projects hit their stride, nearly catching up with Qatar, the world's top supplier. Rising LNG exports coupled with higher prices for steel-making commodities and thermal coal should see Australia's overall resource and energy export earnings increase 2 percent in the year to end-June 2018, to a record A$211 billion ($165 billion), the Department of Industry, Innovation and Science said on Friday.

Saudi Aramco IPO on Track for 2018

A plan to list Saudi Aramco in 2018 is on track, senior Saudi officials said in Moscow on Thursday, as Saudi Arabia gears up to sign a string of investment agreements with Russia. The plan to float around 5 percent of Aramco in an initial public offering (IPO) is a centrepiece of Vision 2030, a wide-ranging reform plan to diversify the Saudi economy beyond oil which is being championed by Saudi Crown Prince Mohammad bin Salman. "Work is ongoing to list Saudi Aramco in 2018," Aramco's Chief Executive Amin Nasser said at an energy forum in Moscow.

Future of LNG's Asian Rally Uncertain

File Image: A typical LNG Carrier at Sea (CREDIT: QGTC)

The spot price of liquefied natural gas (LNG) in Asia is enjoying its traditional surge ahead of peak winter demand, and the near 40 percent rally over the past six weeks probably has further to go. While exporters of the super-chilled fuel will no doubt be trying to maximise the number of spot cargoes they offer, of more interest to them may be how steep the post-winter drop is likely to be. Much of the current boost to prices is due to stronger-than-expected Chinese demand, as Beijing expands use of the cleaner-burning fuel in place of coal for winter heating.

Vitol Returns for $8 Bln Loan Refinancing

Geneva-headquartered energy and commodities trader Vitol has signed an US$8bn loan refinancing of credit facilities agreed in October 2016, the company announced on Wednesday. The revolving credit facility, which is used for working capital and general corporate purposes, comprises a three-year tranche and a 364-day tranche. The three-year tranche totals over US$7bn. ABN AMRO Bank, Commerzbank, Credit Agricole CIB, HSBC Bank and ING Bank were active bookrunners on the transaction. Bank of America Merrill Lynch, MUFG, BNP Paribas…

H-Energy to Start West Coast LNG Terminal in May 2018

India's H-Energy Pvt Ltd, a unit of real estate group Hiranandani, will start operations at its liquefied natural gas (LNG) terminal in the western Maharashtra state by May 2018, its chief executive said on Wednesday. India plans to raise the share of natural gas in its energy mix to 15 percent in three years from the current 6.5 percent, according to a plan set out by Prime Minister Narendra Modi's government. H-Energy has invested 17 billion rupees ($261 million) to build its 4 million tonnes per annum (mtpa) regassification terminal near the Jaigarh port in the state, Darshan Hiranandani told Reuters.

Turkey to Increase Gas Imports

Iran will pump more natural gas to Turkey as part Tehran's plans to expand its economic ties with its neighbour, Iranian President Hassan Rouhani told a joint news conference with his Turkish counterpart in Tehran, state TV reported on Wednesday.   "During our meeting today, we agreed to widen our economic ties ...Turkey will import more gas from Iran ...meetings will be held next week to discuss the details," Rouhani said after his meeting with President Tayyip Erdogan. (Writing by Parisa Hafezi; editing by Jason Neely)

Chinese Demand Ensures Asian LNG Rally Has Legs

© Altin Osmanaj / Adobe Stock

Unexpectedly strong demand from China, along with rising oil and coal prices, should keep Asian liquefied natural gas (LNG) spot levels buoyant this winter. Despite rising supplies from new plants, spot prices have risen by 55 percent from their 2017 lows to $8.40 per million British thermal units (mmBtu) as Asian buyers also refilled summer stocks. With the peak demand October-March winter gas season almost underway, further price gains are expected. Nuclear outages in Taiwan and rising demand from Thailand, as well as new buyers like Pakistan, are absorbing oversupply of LNG faster than expected, traders and analysts said.

Wison Launches Buoyant Tower Solutions with Storage

The overall effect diagram of New Buoyant Tower solution with storage (Photo: Wison)

Wison Offshore & Marine has developed a new Buoyant Tower solution with condensate or oil storage, adopting Wison’s proprietary Buoyant Tower technology. This floating concept provides a new economic and reliable option for the oil and gas development in the shallow to medium-depth waters. Originally invented by Ed Horton and Lyle Finn, the Buoyant Tower technology was first applied to BPZ CX-15 project offshore Peru when both Ed and Lyle worked for Horton Wison Deepwater Inc. (HWD), now renamed as Wison Offshore Technology Inc. with 130+ patents originated by Ed Horton and his fellows transferred from HWD.

Edison to Buy US LNG from Venture Global

Edison, the Italian utility owned by France's EDF, has agreed to buy 1 million tons of liquefied natural gas (LNG) per year from Venture Global LNG, the companies said on Wednesday. The LNG will come from the Calcasieu Pass LNG export facility Venture Global is developing in the United States, a joint statement by the two companies said. Under the deal Edison will buy the gas on a free-on-board basis for a period of 20 years starting from when the facility begins commercial operations in 2021. Reporting by Stephen Jewkes

Chesapeake Energy Expects Q3 15 pct Output Drop

Chesapeake Energy Corp said it expects a 15 percent drop in third-quarter production due to disruptions in weather, asset sales and changes in capital allocation.   The natural gas producer said it expects current-quarter production to be about 542,000 barrels of oil equivalent per day(boepd), lower than the 638,100 boepd a year earlier.   The company also said it now expects its adjusted production forecast for the full-year to range between a drop of 1 percent and an increase of 1 percent, compared with its previous view of flat to 4 percent growth.   Reporting by Yashaswini Swamynathan 

Australian Supply Crunch Squeezes LNG Exporters

File Image: A typical LNG Carrier at Sea (CREDIT: MISC)

Spot LNG exports in government's cross-hairs; ConocoPhillips, Origin, Shell now in the firing line. The Australian government on Monday warned that the country's east faced a worse-than-expected natural gas shortfall in 2018, but the competition watchdog said the gap could easily be filled by diverting uncontracted exports to the local market. It is now up to the government to decide by Nov. 1 whether to pull the trigger on its Australian Domestic Gas Security Mechanism, which allows it to curb liquefied natural gas (LNG) exports from the nation's east coast if it determines there will be a shortfall in any year.

Oil Hits Eight-Month High as Inventories Drop

File Image (CREDIT: AdobeStock / (c) Leeylutung)

Brent hits highest since January; major producers confirm global inventories falling. Oil prices rose on Monday to their highest in eight months after major producers said at a meeting in Vienna the global market was well on its way towards rebalancing. The November Brent crude futures contract was up 79 cents at $57.65 a barrel by 1134 GMT, its highest since January 3. U.S. crude for November delivery was up 41 cents at $51.07 a barrel, close to recent four-month highs. The Organization of the Petroleum Exporting Countries…

Statoil Output to Rise by 15.5 mcm/day

Statoil's said on Monday its gas output would increase by 15.5 million cubic metres per day from Sept. 26 at 0600 CET (0400 GMT) until Sept. 27 at 0600 CET (0400 GMT) due to maintenance ending early at an unnamed site.   "Increased avalibility due to maintenance ending early," the firm said in a message on its website.   Reporting by Lefteris Karagiannopoulos 

Mission Accomplished? OPEC Banishes Contango

“There is no doubt that the oil market is moving in the right direction,” the Organization of the Petroleum Exporting Countries noted with satisfaction in its most recent bulletin published on Wednesday. “The rebalancing process was never going to happen overnight; it was never going to happen in a linear fashion; and it was always going to require a concerted effort,” OPEC observed. “Patience and perseverance are still required”, the bulletin warned, but the organisation is well on the way to achieving the objectives it set when announcing output cuts in November 2016.

Statoil to Reduce Gas Output Sept 24-25

Statoil's gas output will be reduced by 6.5 million standard cubic metres per day from September 24 at 0600 CET (0400 GMT) until September 25 at 0600 CET (0400 GMT), the firm said on Wednesday. "Decreased field availability moved by one day to the 24th September," the firm said in a message.     Reporting by Henrik Stolen

Glencore Inks Angolan LNG Purchase Deal

File Image (CREDIT: AdobeStock / (c) Fotmart)

Trading house Glencore is to buy liquefied natural gas (LNG) supplies from Angola LNG over a multi-year period, adding to similar recent deals between the producer and traders including Vitol. Angola LNG on Wednesday said the deal was another step toward building its sales book with the most important players in the LNG market. Last month it sold LNG to Vitol over a multi-year period and also entered a sales deal with the trading arm of Germany's RWE . Until recently, Angola has been selling all of its LNG via competitive tenders in the spot market, partly because a previous plan to ship LNG to the United States fell through because of the U.S.

Oil Nears Five-Month Highs

File Image (CREDIT: AdobeStock / (c) Shamtor)

Saudi crude exports fell to three-year low in July, as U.S. shale output seen rising for 10th month in October. Oil prices traded close to five-month highs on Tuesday after key Middle Eastern producers showed they continued to comply with output cuts under an OPEC-led deal that Iraq's oil minister said could be extended or deepened. A weaker U.S. dollar also lent support to dollar-denominated commodities such as oil, traders said. Benchmark Brent crude futures were up 20 cents at $55.68 a barrel by 1200 GMT, not far off a five-month high of $55.99. U.S. West Texas Intermediate (WTI) crude futures were up 35 cents at $50.26.

Saipem CEO: Nord Stream II on Track if 'conditions right'

File Image (CREDIT: AdobeStock / (c) Burkut)

The Nord Stream II pipeline project will go ahead if conditions are right but sanctions may impact on work, the chief executive of Italian oil services group Saipem said on Tuesday. Nord Stream II, led by Russian gas giant Gazprom, aims to increase Russian natural gas exports to Europe by doubling the amount of gas Russia sends to Germany under the Baltic Sea. Saipem in August was awarded a contract to build the last section of the pipeline. "There are discussions ongoing; for now we've been given a piece of the project and will go through with it if the conditions are right," Cao told journalists on the sidelines of an event in Milan.

Mitsui OSK Targets 26% Stake in Swan's Indian LNG Unit

Japan's leading shipper Mitsui OSK Lines aims to buy at least a 26 percent stake in a floating storage regassification unit (FSRU) in India, a company official said, to boost its exposure in the west coast project of Swan Energy. Swan Energy is building a 5 million tonnes a year FSRU and floating storage unit (FSU) at Jafrabad in western Gujarat state, with Mitsui awarded a long-term contract for operation and maintenance services. "We have until end-2019, by when the project will be completed, to buy at least 26 percent in Triumph Offshore…

GTT to Design LNG Tanks for FSRU Newbuild

GTT said it has received an order from the South Korean Shipyard Hyundai Heavy Industries concerning a new Floating Storage and Regasification Unit (FSRU) which has been contracted by Triumph Offshore, a subsidiary of the Indian ship-owner Swan Energy. GTT will design the LNG integrated tanks which represent a total capacity of 180,000 m3. These tanks will be equipped with the membrane containment system Mark III, a sea-proven technology developed by GTT. This insulation system benefits from an unparalleled track record: it has been already used to equip more than 140 vessels which are still in service today.

Gazprom Signs LNG Supply Deal with Ghana

Russian gas giant Gazprom has signed a 12-year deal to supply Ghana National Petroleum Corporation (GNPC) with liquefied natural gas, a subsidiary of Gazprom Marketing & Trading Group said on Monday.   Gazprom Global LNG Limited (GGLNG) said LNG supplies were due to start in 2019.   The agreement is the first stage in a planned series of partnerships between GGLNG and GNPC, with both companies working to develop the infrastructure and services required to manage and market the projected gas flows from the region, Gazprom said.   It did not disclose further details. (Reporting by Vladimir Soldatkin; editing by Susan Thomas)