Wednesday, January 22, 2020

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

© Mike Mareen / Adobe Stock

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

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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

The signing of the HOA between Petronas and Shenergy was witnessed by Petronas President and Group Chief Executive Officer, Tan Sri Wan Zulkiflee Wan Ariffin.

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

Image: McDermott International, Inc.

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

Image: Qatargas

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

Minister of Petroleum and Energy Sylvi Listhaug receives the report on gas transport from CEO of Gassco, Frode Leversund (left). Kjell Agnar Dragvik, Director Analyses and framework at the NPD, also attended the presentation. Photo: Norwegian Petroleum Directorate (NPD)

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

(Photo: NOAA)

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

 Image: Saudi Aramco

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

Image: Qatar Petroleum

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

© Maciej Bledowski / Adobe Stock

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…

Asian LNG Prices Little Changed in Quiet Trade

© Igor Groshev / Adobe Stock

Asian spot prices for liquefied natural gas (LNG) were little changed this week amid quiet trade and low liquidity.The average LNG price for February delivery into northeast Asia was estimated at around $5.10-$5.20 per million British thermal units (mmBtu)."Demand is still weak following the Christmas and New Year holidays and there is plenty of supply," an LNG trader said.A new gas transit deal struck between Russia and Ukraine last month, which will see Moscow supply Europe for at least another five years, has eased market…

KN Bags $148Mn Loan for its LNG Terminal

Image: Klaipedos Nafta

The Nordic Investment Bank (NIB) and Lithuanian liquefied natural gas (LNG) and oil terminal operator AB 'Klaipedos Nafta' (KN) have signed a EUR 134.1 million (USD 148 million) loan agreement to optimize costs of LNG terminal.The 25-year maturity loan will be directed to finance the rent payable for the Floating Storage and Regasification Unit (FSRU).“Through this loan agreement we are continuing to support Lithuania´s security of energy supply, a strategically important objective for our member country”, said Henrik Normann…

NLNG Okays Train 7

Image: Nigeria LNG Limited.

The Nigerian National Petroleum Corporation (NNPC), Shell, Total, and ENI on Friday signed the final investment decision (FID) to give the go-ahead for the construction of Train 7 of the Nigeria Liquefied Natural Gas (NLNG) project.The new train is expected to boost output by 35% to 30 million tonnes per year, NLNG said in a statement, and will arrest a decline in Nigeria’s LNG output. NLNG operates six LNG processing units, known as trains, on Bonny Island. Nigeria LNG said it would boost its liquefied natural gas output by more than 30%.According to reports…

Yamal LNG Starts Using New Storage Tank

Image: Novatek

Novatek, the largest independent natural gas producer in Russia, started using a dedicated LNG transshipment tank at the Zeebrugge LNG terminal in Belgium.Novatek booked the tank’s capacity as part of a 20-year transshipment agreement between Yamal LNG’s unit Yamal Trade and Fluxys LNG.The dedicated LNG tank was built specifically for the transshipment needs of Yamal LNG with a capacity of 180,000 cubic meters, allowing the Project to transship up to 8 million tons of LNG per annum.“The LNG tank construction for Yamal LNG began in Zeebrugge in 2015 and its commissioning is a key milestone for the Project…

Nigeria LNG Inks FID for Train 7

(File photo: NLNG)

Nigeria LNG (NLNG) signed a long-awaited final investment decision on its Train 7 processing unit in Abuja on Friday, taking a step forward in increasing its liquefied natural gas production.NNPC and partners Eni, Total and Shell attended the signing ceremony for Train 7, which is expected to boost Nigeria's LNG output by 35% to 30 million tonnes per year.The agreement is a bright spot for Nigeria, a nation rich in oil and gas that has been working for years, with limited success, to boost its output of both resources.It also marks a moment of amity with international oil majors…

Louisiana LNG Unit Starts Production

Image: McDermott International, Inc.

Train 2 of the Cameron LNG project in Hackberry, Louisiana, has begun producing liquefied natural gas (LNG), announced McDermott International and its joint venture partner, Chiyoda International Corporation, a U.S.-based wholly-owned subsidiary of Chiyoda Corporation, Japan.While production is in the initial phases, this significant project accomplishment is a precursor to substantial completion of Train 2."This accomplishment is attributable to the entire team's unwavering commitment to project delivery and steadfast focus on safety and quality performance as we work toward completion of Train 2…

Woodside Finalizes Gas Deal with Uniper

Scarborough concept (Image: Woodside)

Oil and gas producer Woodside Petroleum Ltd said on Tuesday it has signed an agreement to supply liquefied natural gas (LNG) to German utility Uniper SE for 13 years starting 2021.Under the agreement, Woodside said it would initially supply up to 0.5 million tonnes per annum (Mtpa) of LNG, which could increase to 1 Mtpa from 2025.However, supply from 2025 remains conditional upon a final investment decision related to the company's Scarborough project off northwestern Australia.Woodside is looking to develop Scarborough to feed a new 5 Mtpa production unit, called a train, at its Pluto LNG plant in Western Australia.The finalization of the deal fo

Planned $2 Bln LNG Project Shelved in the Philippines

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Plans for the $2 billion Tanglawan LNG hub venture in the Philippines have been put on hold by backers CNOOC Gas and Power of China and Phoenix Petroleum Philippines Inc.The facility was supposed to have a capacity of 2.2 million tonnes per year, with a targeted start-up by 2023. To support it, Phoenix also planned to build a 2,000-megawatt power plant.The two firms jointly requested the Department of Energy (DOE) put the project on hold after Phoenix parent Udenna Corp acquired a 45% stake in the Malampaya natural gas consortium, Phoenix said.(Reporting by Enrico dela Cruz; editing by Jason Neely)

LNG Suited for Select VLCC Routes

Image: SEA\LNG

SEA\LNG has released the results of its third investment study, which underlines liquefied natural gas (LNG) as a compelling investment solution for Very Large Crude Carriers (VLCCs) on the Arabian Gulf to China trade route.Conducted by Opsiana, the study demonstrates benefits of LNG as a marine fuel for a newbuild 300K DWT VLCC on the Arabian Gulf to China trade route, in comparison with other alternatives currently available and scalable to the shipping industry across three fuel pricing scenarios.The business case compares…

Yamal LNG Gets All 15 Arc7 Ice-Class Tankers

Image: Yamal LNG

Russian liquefied natural gas (LNG) producer Yamal LNG  announced the operational start of the new Arc7 ice-class LNG tanker “Yakov Gakkel”,  the fifteenth and final Arc7 ice-class tanker built specifically for the Project.The Yakov Gakkel has loaded the 354th LNG cargo in the port of Sabetta bound to China, said a press note.The vessel was built by Daewoo Shipbuilding and Marine Engineering (DSME) and is owned and operated by a 50-50 joint venture by Teekay LNG and China LNG Shipping. It is one of six vessel owned and…

Wison Begins Arctic LNG 2 Project

Photo: Wison Offshore & Marine

Wison Offshore & Marine (WOM), the upstream oil and gas division of Chinese conglomerate Wison Group Holding, announced the fabrication of Arctic LNG 2 Project (ALNG2 Project) commenced in Zhoushan Yard.The module fabrication contract was awarded by Technip France S.A., a wholly-owned subsidiary of TechnipFMC.Novatek, client of ALNG2 project, is the largest independent natural gas producer in Russia. ALNG2 project comprises three LNG trains at 6.6 million tons per annum each. WOM’s work scope is engineering, procurement…

Malaysian State Open to Buying Petronas Stake

© Dmytrii Minishev / Adobe Stock

Malaysia's Terengganu state said on Wednesday it was open to buying a stake in national energy giant Petronas, after Prime Minister Mahathir Mohamad said he was considering such a sale to raise funds for his heavily-indebted federal government.Petronas, the world's third-largest exporter of liquefied natural gas, is one of the biggest sources of revenue for the federal government that has a debt pile of more than 1 trillion ringgit ($239 billion).Mahathir told Reuters on Tuesday that the government could sell Petronas shares privately to states such as Sarawak…

Ocean LNG Leads in Contracted Capacity

Graph: GlobalData

Ocean LNG has dominated in terms of long-term liquefied natural gas (LNG) import volumes for contracts signed by key purchasing companies for the year 2019, with almost 47% of the global contracted capacity.According to a report by GlobalData, Ocean LNG signed the biggest long-term LNG contract for 2019 with Golden Pass Products. According to the contract, Golden Pass Products will supply Ocean LNG with 15.6 million tonnes per annum (mtpa) of LNG for a period of 20 years, from 2024 to 2044.The gas will be supplied from the Golden Pass II LNG liquefaction terminal in Texas…

Milorad Doljanin New CEO of Avenir LNG

Milorad Doljanin. Photo: Avenir LNG

UK-based small-scale liquefied natural gas (LNG) supplier Avenir LNG announced that Milorad Doljanin will assume the role of Chief Executive Officer with effect December 13th, 2019.According to a press release from the shipping venture backed by Stolt-Nielsen, Golar LNG and Höegh LNG, Doljanin joined in August 2019 as COO.He brings 15 years of LNG trading and commercial experience with PetroChina, Gazprom, EON and BP.Commenting on his appointment, Milorad said “This is an exciting time for Avenir LNG, a company which is…

Cheniere Seeks U.S. OK to Return Louisiana Sabine LNG Tank

Cheniere Energy Inc asked U.S. energy and safety regulators to approve a process that would allow the company to return to service a storage tank that leaked at its Sabine Pass liquefied natural gas (LNG) export plant in Louisiana:* Cheniere, the biggest U.S. LNG exporter, said in a filing earlier this week that its proposed process would prioritize work on one tank, known as S-101, and allow that tank to return to service in the near term.* The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) ordered Cheniere to shut two tanks at Sabine on Feb. 8, 2018, after plant workers on Jan.

Petronas in Game for a Third FLNG Unit

Image: Petronas

Malaysian oil and gas company Petroliam Nasional Berhad (Petronas) would build a third floating liquefied natural gas (FLNG)unit if there’s a demand.Petronas is the only company to own and operate two FLNGs, namely PFLNG Satu and PFLNG Dua.Bernama reported, quoting the gas and new energy business executive vice-president and chief executive officer Adnan Zainal Abidin, that if there is a reservoir with a sizeable amount of reserves and with the right gas composition that it is economically viable, it opens up a case for another floater.According to the Bernama report…

Yamal LNG Exceeds Nameplate Capacity

Image: NOVATEK

Yamal LNG, a liquefied natural gas plant located in Sabetta at the north-east of the Yamal Peninsula, Russia, announced that since the beginning of 2019, the LNG plant produced more than 16.5 million tons of LNG.The Project exceeded its annual nameplate production capacity during the first eleven months of the year, when all three LNG trains were in operation, as the third LNG train was launched at the end of 2018.Yamal LNG has reached 25 million tons of LNG shipped since the start-up of Train 1 in December 2017, and has…

K Line, FueLNG Team-up on LNG Bunker

Image: Kawasaki Kisen Kaisha

Japanese shipping firm Kawasaki Kisen Kaisha (K Line) has announced that it has concluded a ship management agreement with FueLNG Pte Ltd for a 7500 m3 LNG bunkering vessel (LBV).FueLNG will own and operate the vessel, as well as carry out all commercial operations, said K Line press statement.The partnership will combine K Line’s extensive ship management and LNG transportation experience with FueLNG’s LNG bunkering expertise, which includes more than 160 truck-to-ship LNG bunkering operations conducted to-date. This will provide a reliable…

Petronas Names Second FLNG in S. Korea

Image: Petronas

Malaysian oil and gas company Petronas named its second floating liquefied natural gas (LNG) facility, the PFLNG Dua, in a ceremony in Geoje, South Korea.The floating LNG facility is designed to extract gas from deepwater gas reservoirs in depths up to 1,500 meters.With PFLNG Dua, the national oil and gas company of Malaysia owns and operates two floating LNG facilities, following the success of PFLNG Satu which has been in operation since 2017. This achievement demonstrates Petronas’ strong position in the LNG industry…

Cheap LNG from Qatar Imperils N.American Projects

Cheniere's Sabine Pass LNG Terminal (CREDIT: Cheniere)

Proposed projects to export liquefied natural gas (LNG) from North America face an uphill battle against Qatar, which announced plans to further ramp up production to hold onto its position as the world's leading LNG exporter.The United States is on track to overtake Qatar and Australia as the top LNG exporter by 2024, but now will only hold that title for a few years as Qatar announced this week it will boost production by 64% by 2027.Qatar's plans add another headwind for dozens of long-in-development projects already…

Qatar Ups LNG Production by 64% to 126 MTPA by 2027

Pic: Qatar Petroleum

Qatar Petroleum has announced that it will raise Qatar’s LNG production capacity to 126 million tons per annum (mtpa) by 2027, representing an increase of 64% from the current 77 mtpa.The announcement was made by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, at a press conference held in Doha, during which he also announced that new studies have revealed that the North Field’s productive layers extend well into Qatari land in Ras Laffan, paving the way for a new LNG production project in the north of Qatar.Al-Kaabi said: “During the past two years…

NYK, Pertamina Ink Energy Transport MOU

From left, Gandhi Sriwidodo, Logistic, Supply Chain and Infrastructure director, Pertamina; Akira Kono, managing corporate officer and chief executive of NYK’s Energy Division, NYK; Tafkir Husni, president director, PIS. Photo: NYK

As demand for energy transportation, especially liquefied natural gas (LNG), is expected to increase in Indonesia, NYK and PT Pertamina International Shipping (PIS), a wholly owned subsidiary of PT Pertamina (Persero) agreed to a memorandum of understanding (MoU) for energy transportation.The framework of the deal sees Pertamina, the largest oil and natural gas corporation in the state, and NYK in a strategic partners in energy transportation and covers ownership and management. The companies have already started discussions concerning a detailed joint business…

Fed Okays Rio Grande LNG Project

Pic: NextDecade Corporation

NextDecade Corporation announced that the Federal Energy Regulatory Commission (FERC) has issued an order authorizing the siting, construction and operation of its proposed Rio Grande LNG export facility in Brownsville, Texas.“Issuance of the FERC order marks an extremely important milestone for our project,” said Matt Schatzman, Chairman and Chief Executive Officer of the Texas-based liquefied natural gas (LNG) development company.“We appreciate the comprehensive and rigorous review of our project conducted by the FERC and numerous other federal…

US Signs Highest LNG Export Contract

Graph: GlobalData

US signed highest volume of global long-term liquefied natural gas (LNG)  export contracts in 2019, accounting for around a 67% of global share. Abundant shale gas production in the US has enabled the country to export natural gas as LNG. to global markets. According to GlobalData, the US has signed five long-term contracts in 2019 for the export of 22.3 million tonnes per annum (mtpa) of LNG. Of these, the contract signed between Golden Pass Products and Ocean LNG Limited had the highest export volumes with 15.6mtpa.LNG will be supplied from the Golden Pass II LNG liquefaction terminal in Texas for 20 years from 2024 to 2044.Sunrita Dutta…

Avenir LNG in Brazilian Pact with Golar Power

Pic: Avenir LNG

Small-scale liquefied natural gas (LNG) supplier Avenir LNG announced that it will collaborate with the Bermuda-registered Golar Power in developing the small-scale LNG market in Brazil.Avenir’s second 7,500 cbm LNG Carrier will be used to deliver LNG to various ports across Brazil upon delivery. The vessel will also offer ship-to-ship bunkering capability as part of Avenir’s global multi-nodal bunkering solution; adding to the Colombian, Mediterranean and Malaysian nodes which the company currently offers.Commenting on the collaboration with Golar Power…

Woodside Sees Reserve Base Tripling

(File photo: Woodside)

Australia's Woodside Petroleum on Tuesday laid out plans to triple its gas and oil reserve base as it pursues projects worth over $36 billion in Australia, Senegal and Myanmar.Success in those projects would result in its reserve base reaching 3.7 billion barrels over the next seven years and help Woodside expand production by 6% a year over the next decade, it said."We believe we now have a compelling growth story," Woodside Chief Executive Peter Coleman told an analysts briefing in Sydney.Coleman's comments highlight Woodside's bullish view as crunch time approaches on major projects.

AG&P Invests in Kanfer Shipping, Eyes LNG

Image: AG&P

Global downstream gas and LNG logistics company Atlantic Gulf & Pacific (AG&P) has made a strategic equity investment in Norway-based Kanfer Shipping.Kanfer is a developer of small-scale LNG sea transportation, maritime break-bulk solutions, floating storage facilities as well as LNG bunkering. Together, Kanfer and AG&P will make LNG more accessible and commercially viable for downstream customers in new and growing natural gas markets."Kanfer has captured the attention of the global LNG maritime infrastructure industry with its patented…

Poland Ends Major Russian LNG Contract

Pic: Gazprom

Poland's state gas company PGNiG says it had notified Russia's Gazprom that it will not renew their long-term deal on liquefied natural gas (LNG) supplies when the agreement expires after 2022.In accordance with the provisions of the Yamal Contract, three years prior to its original termination date, i.e. by December 31st, 2019, the parties are required to submit a declaration whether or not they intend to continue their contractual relationship beyond 2022.Gazprom Export, the gas-exporting arm of state-controlled Gazprom…

Exceptional Growth in LNG Trade, Says Awilco

 Pic: Awilco LNG

The exceptional growth in LNG trade recorded in the first half of the 2019 continued in Q3, says Awilco LNG Group, the Norwegian based fully integrated pure play LNG transportation provider.According to Fearnleys LNG total LNG trade is up about 13 % in the first nine months of the year vs last year. In line with normal seasonal patterns gas prices inched upwards in Q3 but remained historically low due to increased production and muted demand in the Far East.Due to a relatively mild winter reducing gas demand for power generation and higher nuclear power generation in Japan and South Korea…

LNG Imports Jump in Poland

Image: PGNiG

Polish state-controlled oil and gas company Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) has reported a jump in liquefied natural gas (LNG) imports for the first three quarters of the year.The volume of LNG imported in the nine months to September 30th 2019 was 27% higher than in the same period of 2018, amounting to 2.48 bcm after regasification, said the gas firm.LNG supplies’ share in total gas imports was about 23%, compared with about 18% a year earlier.The Group received 22 LNG deliveries from the beginning of this year to the end of September…

BP, Total Pact for Adnoc LNG Supply

Photo: ADNOC

The state oil giant Abu Dhabi National Oil Company (ADNOC) signed agreements with BP and Total to book the majority of its liquefied natural gas (LNG) production up to the first quarter of 2022.With the transactions, ADNOC LNG has continued to expand its footprint into new regions and markets, said a press release.“With these new supply agreements, ADNOC LNG has shown that it can react quickly and decisively to changing market conditions while ensuring the security and quality of delivery,’’ said ADNOC LNG CEO, Fatema Al Nuaimi.

China Expects Balanced Energy Supply/Demand

© supakitmod / Adobe Stock

China's state planner expects this winter's energy supply and demand to be generally balanced amid increasing natural gas output and liquefied natural gas (LNG) imports, state news agency Xinhua reported on Tuesday.Citing unidentified officials from the National Development and Reform Commission (NDRC), Xinhua reported natural gas demand from residential users will grow by more than 3.8 billion cubic meters (bcm) this winter as China enters a third year of a drive to replace coal with gas for use in winter heating.But the NDRC expects natural gas output to reach more than 170 bcm in 2019, up 11 bcm from last year.

Saipem Inks Deal with Daewoo for Onshore Projects

(Photo: Saipem)

Italy's Saipem said on Monday it signed a strategic agreement with Daewoo E&C Co. for cooperation in the onshore oil and gas industry, with a specific focus on the liquefied natural gas (LNG) sector."LNG is strategic for us and we are definitively focusing on it to consolidate our onshore E&C activities and results," said Maurizio Coratella, COO of the Saipem Onshore E&C division, in a statement.The deal will combine both companies' assets and expertise in engineering, procurement and construction of onshore facilities, the statement added.(Reporting by Giancarlo Navach, editing by Giulia Segreti)

50 years of LNG imports in Japan

”Polar Alaska”, transporting the first cargo of LNG to Japan. Photo: JERA

Japanese gas buyers marked the 50th anniversary since the first cargo of liquefied natural gas arrived in Japan, now the world’s biggest importer of the fuel.On November 4th, 1969, LNG was first imported to Japan. Tokyo Electric Power Company (now JERA Co., Inc.) and Tokyo Gas, through Mitsubishi Corporation acting as a buyer’s agent, started receiving LNG in 1969 from the Alaska LNG Project with Phillips Petroleum (now ConocoPhillips) as a seller.Demand for LNG and natural gas is expected to further increase globally, especially in the emerging countries.

MOL Conducts LNG Bunkering at Nagoya Port

Bunkering LNG fuel, From the left: Toho Gas, Executive Vice President, Shinji Niwa, MOL, Executive Vice President, Takeshi Hashimoto. Photos: MOL

Japanese utility Toho Gas and shipping company Mitsui OSK Lines (MOL) carried out a demonstration test to supply liquified natural gas (LNG)  to the to the tugboat Ishin at the Japanese port of  Nagoya.This marked the first LNG bunkering in the Port of Nagoya, and the test confirmed that LNG can be safely supplied to vessels at the port.LNG was transported via truck from the Toho Gas Chita-Midorihama LNG Terminal (Chita-shi, Aichi Prefecture), and supplied with a truck-to-ship system to Ishin, berthed at the Port of Nagoya's Garden Pier.Also cooperating in the demonstration test were…

First Commercial Cargo Loaded from Tango FLNG

FLNG Tango (File photo: Exmar)

Argentine oil company YPF SA has loaded its first commercial liquefied natural gas (LNG) cargo for export from a new floating facility, trade sources said on Friday.Argentina's export joins a wave of new supply flooding the spot market which has depressed Asian spot prices to their lowest in a decade for this time of the year.The state-owned firm issued a tender which closed on Nov. 6 to sell 2.1 trillion British thermal unit (Tbtu) of LNG for loading from FLNG Tango, the liquefaction vessel off Bahia Blanca, the sources said.YPF exported its first test LNG shipment in June…

Rebooting What’s Possible in India’s Gas Market

‘To lose patience is to lose the battle’ -Mahatma GandhiIndia is something of a conundrum for global LNG players. I recently returned from a week in Delhi, just as the capital was making headlines for one of the worst episodes of air pollution, while the country’s energy mix remains dominated by cheap domestic coal. At the same time, gas price sensitivity continues to stymie investment and contracting negotiations. Progress has been made with LNG import terminals but delays to pipeline infrastructure and convoluted gas allocation policies frustrate demand growth.

RWE Delivers its First LNG to Britain

Image: RWE

German utility RWE has delivered its first liquefied natural gas (LNG) cargo to Great Britain.The cargo, comprised of approximately 150 000 m3 of LNG, was regasified through a Milford Haven LNG Terminal, located close to RWE’s 2000 MW Pembroke B gas-fired combined cycle gas power plant (CCGT).The cargo has been sourced from the portfolio of RWE Supply & Trading, the subsidiary of RWE which is responsible for gas and LNG trading.The cargo was loaded from Sabine Pass Liquefaction Terminal in the Gulf of Mexico, USA and transported by RWE Supply & Trading to Great Britain on the Gaslog Savannah LNG carrier.Once regasified…

GasLog Sees Tighter LNG Shipping Market

Pic: GasLog

GasLog, an international owner, operator and manager of liquefied natural gas (LNG) carriers, is predicting a tighter LNG shipping market, as increasing United States LNG output combines with a seasonal uptick in demand for gas, resulting in rising demand for shipping and higher utilization of the global fleet.These underlying trends in the LNG commodity and shipping markets point towards a structurally tighter market through 2020 and into 2021.As of October 28, 2019, the LNG fleet and orderbook (excluding floating storage and regasification units (FSRUs) and vessels with capacity below 100…

Containership to Convert to Synthetic Fuel

Stefan Eefting, SVP PrimeServ, MAN ES (left) and Christian P. Hoepfner, Managing Director, Wessels Marine, announcing the plan to run the containership Wes Amelie on Synthetic Natural Gas. Photo: Greg Trauthwein

ROTTERDAM – Today in Rotterdam Wessels Marine and MAN Energy Systems announced an innovative project to convert the containership Wes Amelie to run on Synthetic Natural Gas (SNG).While SNG today is far to sparse and expensive to make it a near term commercial reality, this step forward is significant in that a ship outfitted with an MAN propulsion unit to run on LNG would need no modification to have it run on SNG, effectively making it ‘future proof’ while helping to dispel the notion that LNG is merely a bridge step to strict new emission regulations which seek to cut greenhouse gas emissions from the maritime sector 50% by 2050.Wes Amelie…

Japan Marks 50 years of LNG Imports

File Image: AdobeStock / © Fotmart

Japanese gas buyers on Wednesday marked the 50th anniversary since the first cargo of liquefied natural gas (LNG) arrived in Japan, now the world's biggest importer of the fuel.The arrival of the cargo on Nov. 4, 1969 helped transform Japan's energy system, which had relied on oil, coal and gas from coal in an era of high growth, before nuclear power was developed.But Japan's energy situation is undergoing huge changes in the wake of the Fukushima nuclear disaster in 2011, which pushed LNG imports to record highs as reactors…

Asia's Oil Demand to Rebound in 2020 -FGE

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Asia's oil demand growth is expected to more than double to 815,000 barrels per day (bpd) in 2020 from 380,000 bpd this year led by China and India, the head of energy consulting firm FGE said on Tuesday.The region will be key in driving a rebound in global demand growth which is expected to drop to 730,000 bpd in 2019 from 1.3-1.5 million bpd in the past two years, FGE Chairman Fereidun Fesharaki said at the Condensate and Naphtha Forum.Still, Brent crude prices are expected to remain in a range of $55-$65 per barrel in the next few years on ample supply as non-OPEC production grows, he said.Reporting by Shu Zhang

U.S. Ingenuity Will Solve Climate Challenge: US DOE

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The United States can tackle threats to the climate through technological advances as fossil fuels will remain a priority for the U.S. government and business, the assistant secretary for fossil energy said on Tuesday.The world should look to the United States' ability to reduce its emissions, the Department of Energy's Steven Winberg said at an oil conference in South Africa a day after the Trump administration formally moved to exit the Paris Agreement."We can solve any climate issue with technology development, one thing you see back in U.S.

Denmark OKs Nord Stream 2 Project

Connecting pipe sections above water. Photo:  © Nord Stream 2 / Axel Schmidt.

Denmark has granted permission for the Russian Nord Stream 2 natural gas pipeline to be constructed across Danish seabed in the Baltic Sea, leading to Germany.The Danish decision puts greater pressure on U.S. Congress to quickly pass a sanctions bill to halt the project before it is completed.The pipeline being constructed under the Baltic Sea by Russia's Gazprom energy giant is nearly complete, but had not previously been granted permission to cross Denmark's exclusive economic zone.DEA is in charge of the application…

U.S. NatGas Prices Near 25-year Low as Glut Weighs

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In the shale field that helped launch the U.S. natural gas boom a decade ago, Chesapeake Energy Corp this month set aside its last drilling rig. The problem for the once No. 2 U.S. gas producer was not a lack of gas, but too much of it.A long, steady increase in U.S. gas production – much of it a byproduct of the shale oil boom – has prices for the fuel heading toward a 25-year low, with output outpacing U.S. consumption and expected to hit 91.6 billion cubic feet, up 10% over last year, according to government and industry estimates.Producers have sought to turn much of the U.S. surplus to liquefied natural gas (LNG) and export it.

Delfin Delays Final Louisiana FLNG Project

File Image: a typical FLNG underway on its way to deployment (CREDIT: shell)

Delfin Midstream Inc has delayed its plan to make a final investment decision on its proposed Delfin Floating Liquefied Natural Gas (FLNG) export terminal in the Gulf of Mexico off Louisiana to 2020 from 2019.Delfin said in a release on Tuesday it entered into new agreements for front-end design and engineering work on a newbuild FLNG vessel with units of Samsung Heavy Industries Co Ltd and Black & Veatch. The company said it was on track to complete an Engineering, Procurement and Construction (EPC) contract in mid-2020.With the 2020 target for a final investment decision, the company said it was looking at first LNG production in mid 2024.

Singapore Sticking with Natural Gas

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Natural gas will continue to play a dominant role in generating electricity in Singapore while the state plans to accelerate the use of renewable energy, primarily solar power, in the next decade to battle climate change, a senior government official said.The cost of installing solar power has become more competitive with the use of fossil fuels, making it more attractive as an energy source to reduce pollution and meet emission targets."We are now faced with new and urgent challenges in climate change," Minister for Trade and Industry Chan Chun Sing said at Singapore International Energy Week on Tuesday.Singapore…

Mitsui, Sempra Energy Sign LNG Deal

Pic: Sempra Energy

North American energy infrastructure company Sempra Energy and Japanese trader Mitsui & Co. have entered into a memorandum of understanding (MOU) under which the latter would take part in the Cameron LNG Phase 2 project in Louisiana.The MoU also encompasses a future expansion of the Energía Costa Azul (ECA) LNG project in Baja California, Mexico."This agreement signals continued momentum in the growing U.S. liquefied natural gas (LNG) export market, while reinforcing the unique competitive advantage that Sempra offers customers seeking LNG export capabilities from the Gulf Coast…

B.C. Backs LNG Bunkering

Vancouver Fraser Port Authority. Image: SEA\LNG

The British Columbia Government has joined Vancouver Fraser Port Authority and FortisBC to establish the first ship-to-ship LNG marine refueling – or bunkering – facility on the west coast of North America.The use of LNG to power the world’s ocean-going vessels is forecast to expand and B.C. is well positioned to benefit from this growth.According to industry standards, replacing diesel fuel with LNG has the potential to reduce greenhouse gas (GHG) emissions by approximately 20%. Because FortisBC’s Tilbury facility runs on clean B.C.

Qilak LNG, ExxonMobil Pact on Gas Supply

Image courtesy: Qilak LNG

Alaska-based Qilak LNG announced that a Heads of Agreement (HOA) has been entered into with ExxonMobil Alaska Production regarding the potential supply of natural gas from the Point Thomson field to Qilak LNG's proposed Alaska North Slope liquefied natural gas (LNG) export project (Qilak LNG 1 Project).According to the Lloyds Energy company, which was formed to identify and develop Arctic LNG projects in North America,  the he HOA foresees ExxonMobil providing at least 560 million standard cubic feet per day (mmscfd) of natural gas to Phase 1 of the Qilak LNG 1 Project…

Zhanjiang Refinery Launches Mainstream Gas Pipeline

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Sinopec's Zhanjiang integrated refinery complex in Guangdong has launched its main gas transmission pipeline, the Chinese company said in a statement on Thursday.The refinery, which was set up jointly by Sinopec and Kuwait Petroleum Corp in 2011, is designed to include a 300,000 barrels-per-day (bpd) refinery and a 1 million tonnes-per-year ethylene complex.The 53.5-kilometers main pipeline at Sinopec Zhanjiang refinery has annual transmission capacity of 1.8 billion cubic meters, sending gas from Zhanjiang Beimen LNG terminal to the plant."The company will orderly push forward the construction progress and get ready for the operation of the refin

China Aims to Boost Natural Gas Production

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Following several years of natural gas consumption outpacing local production growth, China is introducing incentives to spur several forms of domestic production in hopes of reducing its reliance on imports.China’s natural gas imports, both by pipeline and as liquefied natural gas (LNG), accounted for nearly half (45%) of China’s natural gas supply in 2018, an increase from 15% in 2010, according to the U.S. Energy Information Administration (EIA).Recently, Chinese natural gas production has grown largely because of increased development in low-permeability formations in the form of tight gas, shale gas, and to a lesser extent, coalbed methane.

India to Drive LNG Capacity Growth in Asia

Image: Petroleum and Natural Gas Regulatory Board (PNGRB)

India is expected to drive capacity growth in Asia and Oceania’s liquefied natural gas (LNG) regasification industry from planned and announced (new-build) projects between 2019 and 2023, contributing around 35% of the total growth.According to a Reportlinker research report on LNG regasification industry outlook in Asia and Oceania to 2023, India’s new-build regasification capacity is expected to grow from 730.5 billion cubic feet (bcf) in 2019 to 3,209 bcf in 2023.The planned terminals, which have received relevant approvals in India…

Teekay Resolves China LNG JV Issues

Pic: Teekay Group

Teekay LNG’s 50/50 joint venture with China LNG, which owns four on-the-water ARC7 LNG carriers and two ARC7 LNG carrier newbuildings, is also no longer classified as a “blocked person” under Office of Foreign Assets Control (OFAC) rules.According to a press release from the owners and operators of LNG carriers, providing LNG and LPG marine transportation services firm, Teekay Corporation and Teekay LNG Partners announced that COSCO Shipping Energy Transportation, a COSCO group firm, has completed an ownership restructuring on arms-length terms which has resulted in Teekay LNG’s joint venture partner…

Golar Power Wins Brazil Plant Gig

 Pic: Golar LNG

Golar LNG, a liquefied natural gas shipping company registered in Bermuda, said that its joint venture with Stonepeak Infrastructure Partners, Golar Power Limited has been awarded a 25 year power purchase agreement (PPA) for the construction of a 605MW combined cycle thermal power plant.The LNG-to-power Project will be developed by CELBA (Centrais Eletricas Barcarena S/A), a special purpose company 50% controlled by Golar Power.Located in the Brazilian city of Barcarena, State of Pará, the 605MW power plant will utilize imported LNG for the generation of electricity using modern H-Class gas turbines…

Canadian E.Coast LNG Export Plans Progress Shell Deal

Pieridae Energy moved closer to building a liquefied natural gas (LNG) export terminal on Canada's East Coast after taking ownership of fields from Royal Dutch Shell which will feed gas into the plant, the company said.The Goldboro LNG terminal would be the first on Canada's East Coast and compete with the growing number of plants on the U.S. Gulf Coast, hoping its shorter distance to Europe and further west will help sell its LNG by cutting shipping costs.Pieridae said in a statement late on Thursday it had closed a C$190 million ($145 million) acquisition of Shell's gas assets in Alberta's Foothills region…

Jutal Offshore Wins Contracts Worth $490m

Image: Jutal Offshore

Chinese oil and gas techincal services company Jutal Offshore Oil Services has announced that the company has obtained a slew of new contracts with total value of RMB3.5bn ($490mln).The number of new contracts include large-scale core modules construction of Arctic LNG 2 natural gas project, wind turbine jacket construction, and other offshore engineering and services said the company engaged in the fabrication of oil and gas facilities and oil and gas processing skid equipment business."Site construction of some large-scale construction projects have been gradually commenced…

Woodside Targets Scarborough FID in Early 2020

(Photo: Woodside)

Woodside Petroleum Ltd has pushed out the final approval date for its mammoth Browse gas project but slightly brought forward plans to sign off on its smaller Scarborough project as it races to fill an anticipated global supply gap.Woodside, Australia's top independent gas producer, said on Thursday it is now targeting a final investment decision on the $20.5 billion Browse project in the first half of 2021 as it continues to wrangle with its partners. It had previously expected approval in late 2020.However, Woodside also said it now aims to sign off on the $11 billion Scarborough gas project and Pluto LNG expansion in early 2020…

Kinder Morgan's Elba Island LNG up by mid-2020: CEO

Kinder Morgan's Elba Island facility (CREDIT: Kinder Morgan)

Kinder Morgan expects to bring the remaining nine units of its liquefied natural gas (LNG) export facility at Elba Island into service by the first half of next year, Chief Executive Officer Steven Kean said on Wednesday.The first unit of Kinder Morgan's Elba Island facility began producing LNG natural gas for export last month, and is one of several new U.S. projects adding to global supplies.The Houston pipeline operator plans to bring three more into service this year, with another six to start up in the first half of 2020…

Kawasaki Wins AiP for LNG Floating Power Plant

Shigeru Murayama, Kawasaki (right) and Stian Erik Sollied, DNV GL (left), at Kawasaki Kobe Works. Photo: Kawasaki Heavy Industries

Japanese manufacturer of transportation equipment and machinery announced that it has obtained Approval in Principle (AiP) for its liquefied natural gas (LNG) floating power plant equipped with its own gas turbine (combined cycle power plant (CCPP) model).This approval was obtained from world-leading ship classification organization DNV GL based on its latest “Gas Power Plant” rules, which were introduced in 2018.An LNG floating power plant is an integrated system in which LNG fuel tanks, LNG regasification unit, power generation equipment and switchyard are all outfitted on the hull.

US Leads LNG Liquefaction Capacity Growth

Graph: GlobalData

The US is forecast to drive new-build, liquefied natural gas (LNG) liquefaction capacity additions globally from planned and announced (new-build) projects between 2019 and 2023, contributing around 73% of global new-build LNG liquefaction capacity growth by 2023, according to a report by GlobalData.The US is expected to account for a new-build LNG liquefaction capacity of 156.9 million tonnes per annum (mtpa) from planned and announced projects by 2023. Of this, 79 mtpa of capacity comes from planned projects, while the rest is from announced projects…

Yantai Port to Launch LNG Storage Plants

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China's Yantai Port Group aims to launch two jointly-owned liquefied natural gas (LNG) storage facilities by 2022 and expects government approval for them this month, two sources familiar with the matter said.Shandong province, where the Yantai port is located, is an industrial and petrochemical hub in China. It has one quarter of the country's steel capacity and is also a big coal consuming region, though it is yet to house a gas-powered plant.Yantai Port, which holds a 19% stake in the project, is building the two facilities…

Mozambique LNG Project Moves Ahead

Image: Mozambique LNG project

With a second Final Investment Decision (FID) in just 2 years, Mozambique has officially positioned itself as a key player in the global gas and LNG market for years to come.The latest FID on the US$20 billion Mozambique LNG project, makes it the largest sanction ever in sub-Saharan Africa oil and gas.Described by His Excellency President Nyusi as “one of the most important and transformational projects in the country’s history”, Mozambique LNG is set to be a game-changer for this East African nation of 31 million people.According to Wood Mac…

Small Scale FSRU: Think Smarter Not Bigger

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The global search for lower carbon forms of energy and demand for cost-effective ways to serve power demand in emerging markets and remote locations is driving interest in floating storage and regasification units (FSRU).FSRUs are a faster and more flexible way to import natural gas to power-constrained places, so demand for the units is increasing and the business case for owning them is growing stronger.Their model for supplying energy and transport fuel is historically well proven: they offer faster development timelines and lower initial capital costs compared to onshore regasification…

Petronas Completes 3rd LNG Break Bulking STS Transfer

 Image: Petronas

Petronas LNG Ltd (PLL), a subsidiary of Petroliam Nasional Bhd (Petronas),  has completed its second liquefied natural gas (LNG) cargo through its break bulking ship-to-ship (STS) transfer  to two buyers.The LNG break-bulking STS transfer took place in Brunei Bay, Sabah, Malaysia. It is the first for Petronas in expanding its customer base by providing solutions to two buyers, said the national oil and gas company.According to a report in Bernama, the delivering vessel, Seri Bijaksana, transferred 80,000 m3 of LNG to LNG vessel…

Santos Acquires ConocoPhillips’ Northern Australia Interests

Santos announced it has acquired ConocoPhillips’ northern Australia business with operating interests in Darwin LNG, Bayu-Undan, Barossa and Poseidon for US$1.39 billion plus a $75 million contingent payment subject to FID on Barossa.Matt Fox, ConocoPhillips executive vice president and chief operating officer, said, “While we believe the Darwin LNG backfill project remains among the lower cost of supply options for new global LNG supply, this transaction allows us to allocate capital to other projects that we believe will…

Chinese LNG Sector Growth to Continue

Graph: VesselsValue

China is at the forefront of the large LNG sector growth and is emerging as the largest source of new LNG demand growth and second largest importer of LNG, VesselsValue revealed.China’s natural gas consumption has surged amid a gasification program and plan that is shifting millions of households and a large number of factories to natural gas from coal, said the report.Greece and Japan dominate in terms of USD value. Greece has recently overtaken Japan as the top owning country, ordering a large number of vessels since 2018.However…

India Leads with 18% of Global LNG Regasification Capacity

Graph: GlobalData

India is expected to lead with 18% capacity share in the global LNG regasification industry from new-build (planned and announced) projects between 2019 and 2023, according to GlobalData, a leading data and analytics company.The company’s report, ‘H2 2019 Global Capacity and Capital Expenditure Outlook for LNG Regasification Terminals – India Continues to Dominate Global Regasification Capacity Additions and Capex Spending’, reveals that  India has the highest LNG regasification capacity additions of 2.7 trillion cubic feet (tcf) globally by 2023 from 17 planned and announced new-build regasification terminals.Of the total new-build capacity…

Hammerfest LNG Ships 1000th LNG Cargo

Arctic Discoverer will carry cargo number 1000 from the Hammerfest LNG plant. (Photo: Silje Grytbakk / Equinor ASA)

Norwegian energy company Equinor reached a milestone at its Hammerfest LNG facility on Melkøya Island, “the Snøhvit plant”,  by loading the 1000th cargo of the chilled fuel.The cargo consists of 140 500 cubic metres of liquefied natural gas (LNG). Total sales value of all the LNG cargos since the field came on stream is in the range of NOK 130-150 billion. In addition, we have the value of liquefied petroleum gas (LPG) and condensate.Arctic Discoverer is the name of the tanker that will carry cargo number 1000 from the Hammerfest LNG plant.