Woodside H1 Profit Slumps
Woodside Petroleum flagged a challenging near-term outlook on Thursday as it grapples to win over its partners to back $34 billion worth of new oil and gas projects amid a souring global environment.Australia's biggest independent oil and gas producer reported a worse than expected 23% drop in first-half profit, hurt by extended maintenance at its Pluto LNG plant, which took longer than planned.Its shares fell as much as 7% to a seven-month low, buffeted by a sharp fall in oil prices as well as concerns about weak liquefied…
Flowserve Inks Deal for Prelude FLNG
Flowserve Corporation (FLS), a provider of flow control products and services for the global infrastructure markets, has entered into a five-year contract with Shell Australia to provide general maintenance services for Shell’s Prelude Floating Liquified Natural Gas (FLNG) facility, which is producing natural gas from an offshore field in Western Australia.A press release from the American multinational corporation said that it will support Prelude from its recently refurbished Quick Response Center (QRC) in Darwin, the capital of Australia’s Northern Territory.Flowserve QRCs are dedicated maintenance…
Australia Set to be the King of LNG Exports
Australia is on track to surpass Qatar as the world’s largest LNG exporter, according to Australia’s Department of Industry, Innovation, and Science (DIIS).Australia already surpasses Qatar in LNG export capacity and exported more LNG than Qatar in November 2018 and April 2019, said a release from U.S. Energy Information Administration (EIA).Within the next year, as Australia’s newly commissioned projects ramp up and operate at full capacity, EIA expects Australia to consistently export more LNG than Qatar, it said.Australia’s LNG export capacity increased from 2.6 billion cubic feet per day (Bcf/d) in 2011 to more than 11.4 Bcf/d in 2019.
Sabine Pass LNG Train 6 Under Construction
The liquefied natural gas company headquartered in Houston Cheniere Energy said that through Cheniere Partners, it is developing six natural gas liquefaction Trains at the Sabine Pass LNG (SPL) terminal adjacent to the existing regasification facilities.Trains 1 through 5 are operational and Train 6 is under construction, it said in a release.Cheniere is also developing three Trains near Corpus Christi, Texas (CCL Project). Train 1 is operational, Train 2 is undergoing commissioning, and Train 3 is under construction."Our Trains are expected to have a nominal production capacity…
Mayer Brown Advises on HK FSRU Project
Law firm Mayer Brown advised CLP Power Hong Kong on the Hong Kong offshore LNG terminal project, which involves the use of floating storage and regasification unit (FSRU) technology for the first time in Hong Kong. The FSRU will receive, store, and regasify LNG into two separate subsea gas pipelines to supply natural gas to Castle Peak Power Company Limited and Hongkong Electric Co., Ltd., generating power for Hong Kong residents.Mayer Brown advised CLP Power Hong Kong Limited on the FSRU charter and regasification agreements and operation and maintenance services to be provided to the offshore LNG terminal with Mitsui OSK Lines (MOL)…
Total's Investments in Tellurian Totals $907mln
Tellurian, an integrated global natural gas business firm, announced that it entered into definitive agreements with subsidiaries of Total S.A. for a $500 million equity investment in Driftwood Holdings LP, and related purchase of liquefied natural gas (LNG).Along with Total’s previously announced agreement to purchase approximately $200 million of Tellurian common stock, Total’s aggregate investment in the Tellurian portfolio will be approximately $907 million at final investment decision (FID) for Driftwood, the NASDAQ…
FLNG Innovations Boost Gas Industry Growth
Liquefied natural gas (LNG) technologies, such as floating LNG (FLNG) innovations, driven by its shorter construction lead times and lower capital investment costs, are increasingly becoming a viable option for increased gas deployments.FLNG helps mitigate siting constraints that shore-based infrastructure may face, pointed out the Kansas City-based engineering firm Black & Veatch.The provider of engineering, procurement and construction (EPC) services for energy also stressed on the continued need for a balanced power…
Cheniere Working on Sabine Pass Trains 3, 4
Cheniere Energy Inc said on Monday it is conducting previously scheduled turnarounds on Trains 3 and 4 at the Sabine Pass liquefied natural gas (LNG) export terminal in Louisiana as part of its maintenance plan for the facility.The company did not say when the units would likely return to service but noted "a good general guide for timing" was work on Sabine Trains 1 and 2 earlier this year that lasted about three weeks.Cheniere has five liquefaction trains operating at Sabine and two at its Corpus Christi LNG export terminal in Texas.Each train is capable of liquefying about 0.7 billion cubic feet per day (bcfd) of gas.
Saipem Joins JV for Arctic LNG2 Project
Italian oil and gas industry contractor Saipem reached a deal on Friday to participate in a joint engineering venture for a liquefied natural gas (LNG) project in the west of Siberia.The subsidiary of Eni said in a press release that it has has reached an agreement with Technip France SA and NIPIgaspererabotka to participate in the Joint Venture for the realization of the Arctic LNG2 project.The project has been awarded by Arctic LNG2, a company formed by Novatek JSPC (60%) and Ekropromstroy Ltd (40%).It comprises the detailed design…
Baker Hughes: U.S. Cuts Rigs for Fifth Straight Week
U.S. energy firms this week reduced the number of oil rigs operating for a fifth week in a row as most independent producers cut spending even though majors were still pushing ahead with investments in new drilling.Drillers cut six oil rigs in the week to Aug. 2, bringing the total count down to 770, the lowest since February 2018, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. <RIG-OL-USA-BHI>That is the most weekly declines in a row since March when drillers cut rigs for six consecutive weeks.During the same week a year ago there were 859 active rigs.The rig count…
Global LNG Demand 16% Up in Q2
Global liquefied natural gas (LNG) demand was 86 million tonnes (mt) in the second quarter, compared with 74 mt in the second quarter of 2018, an increase of 16%, said GasLog Ltd.The Monaco-headquartered international owner, operator and manager of liquefied LNG carriers said that higher European imports (up 110% year-on-year) accounted for most of the growth, while demand from Northeast Asia (Japan, China, South Korea and Taiwan) was flat year-on-year, according to Poten.Natural gas prices were at multi-year lows in the…
KY Gasline Erupts in Flames, One Dead
A natural gas line erupted in a ball of flames that could be seen for miles over a residential community in rural Kentucky on Thursday, killing one person and setting several houses on fire, a local sheriff said.The blast, in Moreland, a community about 40 miles (65 km) south of Lexington, was the second so far this year on Canadian energy company Enbridge Inc's Texas Eastern natural gas pipeline following an incident in Ohio in January that injured at least two people.A woman killed in Thursday's explosion was found outside her home, Lincoln County Sheriff Curt Folger said.
US LNG Exports to Europe Grow
U.S. exports of liquefied natural gas (LNG) have been growing steadily and reached a new peak of 4.7 billion cubic feet per day (Bcf/d) in May 2019, according to the latest data published by the U.S. Department of Energy’s Office of Fossil Energy.This year, the United States became the world’s third-largest LNG exporter, averaging 4.2 Bcf/d in the first five months of the year, exceeding Malaysia’s LNG exports of 3.6 Bcf/d during the same period.The United States is expected to remain the third-largest LNG exporter in the world, behind Australia and Qatar, in 2019–20.U.S.
Klaipedos Nafta Bids for Cyprus LNG
Lithuanian liquefied natural gas (LNG) terminal operator Klaipedos Nafta (KN) is partnering with the market leaders in the tender procedure for the design, construction and operation of the Cyprus LNG import terminal.The operator of the Klaipėda Oil Terminal submitted the bid alongside consortium partners Samsung C&T, Posco E&C, Mitsui O.S.K. Lines (MOL) and Osaka Gas.If successful, KN will provide long-term operation and maintenance services for this terminal for a period of up to 20 years.DEFA, the Natural Gas Public Company of Cyprus…
North American LNG Exports to Grow: Study
North American LNG exports will grow quickly until 2023 then plateau until a second wave of capacity comes online from 2025, McKinsey Energy Insights said in 2019 North American Gas Outlook.Global LNG supply overcapacity puts pressure on US liquefaction capacity utilization, which has among the highest marginal costs, it said.Balancing out global LNG overcapacity is equivalent to an average US LNG capacity utilization rate of 70% from 2019-21. Construction delays primarily at Cameron and Freeport prevent new capacity from…
Tanzania Builds $30bn LNG Project
Dr Medard Kalemani, Tanzania’s Minister of Energy, has confirmed the recently announced plans for a syndicate of oil companies to commence construction of the $30bn LNG project in 2022.In March, the government stated that it planned to complete negotiations with a group of international oil companies in September to develop the project.Led by Norwegian energy firm, and Platinum Sponsor of the Congress, Equinor, the group also consists of Royal Dutch Shell, ExxonMobil, Ophir Energy and Pavilion Energy.These international companies will work closely on the project…
Jereh Builds 10 LNG Fuelling Stations in Russia
Chinese oil and gas company Jereh has announced that it has won a contract to construct 10 new LNG fueling stations in Russia.According to a statement from the company, it won the bid for 10 LNG fueling stations in Russia, which is believed to be the biggest order for LNG fueling within Russian market till now.Jereh is going to provide integrated services for this project covering modular design, procurement, manufacture, as well as commissioning. Its total fueling capacity is estimated to reach 500 million liter one year…
Vladimir Rusanov Opens Northern Sea Route
Russian natural gas producer Novatek announced that the Arc7 ice-class LNG tanker 'Vladimir Rusanov' completed the Northern Sea Route (NSR) passage via the Eastern direction, delivering an LNG cargo from the Yamal LNG project, at the port of Sabetta, to China's port of Tianjin.The 168,560 cbm vessel shipped transited the ice-covered part of the route in only 6days, setting a new record for independent passage via the NSR without ice-breaking support with cargo on board.The net voyage time from Sabetta to the destination port was completed in a record 16 days…
Global LNG Demand Up 16%: GasLog
Global liquefied natural gas (LNG) demand was 86 million tonnes (mt) in the second quarter, compared with 74 mt in the second quarter of 2018, an increase of 16%, said GasLog Partners, the international owner and operator of LNG carriers.Monaco-headquartered company quoted a Poten report which says that higher European imports (up 110% year-on-year) accounted for most of the growth, while demand from Northeast Asia (Japan, China, South Korea and Taiwan) was flat year-on-year.Natural gas prices were at multi-year lows in…
TechnipFMC: Record Orders, Backlog in Q2
Franco-American oil services company TechnipFMC received a record volume of orders in the second quarter, pushing its backlog of projects to a peak thanks to new liquefied natural gas projects, it said on Wednesday.The records could signal a rebound for the company created by a 2016 merger of France's Technip and U.S. rival FMC Technologies to weather the oil price crash that had forced their oil major clients to slash budgets and shelve projects."We achieved record inbound orders in the quarter, with total company orders reaching $11.2 billion…
Kogas, EVC Pact for Vietnam LNG Terminal
South Korean public natural gas company Korea Gas Corporation (Kogas) and Vietnam-focused development and asset management company Energy Capital Vietnam (ECV) have entered into a memorandum of understanding (MOU) for the development of a privately-funded LNG regasification terminal in Vietnam.The MOU also covers the development of a storage facility, gas supply system, and a 3,200 MW gas-fired power project near Mui Ke Ga, Binh Thuan Province, Vietnam, said a press note.The MOU contemplates KOGAS and ECV working together to optimize their efforts to meet the significant LNG demand growth forecasted for Vietnam.
China to Overtake Japan in LNG Imports
Japan could lose its position as the world’s top LNG importer to China as early as 2022, said a new report by consultancy group Wood Mackenzie.By then, LNG imports in Japan are expected to decline 12 per cent to 72.8 million tonnes per annum (mmtpa) compared to 2018, while China’s import volume rises 37.5 per cent to 74.1 mmtpa.The consultancy firm said that despite losing this leadership position, Japanese buyers will continue to take a lead in contracting innovation with developments such as hybrid deals, coal indexation…
TechnipFMC Wins $7.6 Bln Contract
Oil services company TechnipFMC won a $7.6 billion contract with Russia's Novatek and its partners for the Arctic 2 liquefied natural gas project in western Siberia, pushing TechnipFMC's shares higher.TechnipFMC's Paris-listed shares rose 3.2% in early session trading, as analysts welcomed the new contract.TechnipFMC said the consolidated value of the contract to it for Arctic LNG-2 was $7.6 billion and consisted of three LNG trains, each with a capacity of 6.6 million tons per annum (Mtpa)."TechnipFMC's announcement of the award of the $7.6 billion award for the 3-train Arctic LNG 2 project will…
Beach Energy to Boost Drilling Spend
Beach Energy, Australia's third-largest independent oil and gas producer, ended the 2019 financial year more cashed up than expected and plans to step up spending on drilling while keeping an eye out for acquisitions, its boss said on Wednesday.Beach paid off debt on its A$1.6 billion ($1.1 billion) acquisition of Lattice Energy within just 18 months, two years earlier than originally planned, with the help of an asset sale and strong cash flow from its expanded portfolio.The company ended the year to June 30 with net cash of A$172 million…
Suez Canal Accounts for 8% of LNG Trade
Total oil flows through the Suez Canal and the SUMED pipeline accounted for about 9% of total seaborne traded petroleum in 2017, and LNG flows through the Suez Canal and the SUMED pipeline accounted for about 8% of global LNG trade."The Suez Canal and the SUMED Pipeline are strategic routes for Persian Gulf crude oil, petroleum products, and LNG shipments to Europe and North America," U.S. Energy Information Administration (EIA) said.Located in Egypt, the Suez Canal connects the Red Sea with the Mediterranean Sea, and is…
Qatargas Delivers First Q-Flex LNG Cargo
The world’s largest liquefied natural gas (LNG) producer Qatargas Operating Company Limited (Qatargas) has delivered the first LNG cargo onboard a Q-Flex vessel to Greece’s Revithoussa LNG terminal.Doha-based global energy operator said in a press release that this is for the first time that a Q-Flex LNG vessel has called at the terminal ever since it underwent an expansion drive late last year.The cargo, which was loaded at the Ras Laffan Terminal in Qatar on 3rd July 2019, arrived at the Revithoussa Terminal on board the Q-Flex vessel…
Freeport LNG Reaches Milestone
Freeport LNG has reached final commissioning on Train 1 of its liquefaction project on Quintana Island in Freeport, Texas, following months of construction delays.American multinational engineering firm McDermott International along with its partners, Chiyoda International Corporation and Zachry Group, announced that crews have introduced feed gas into Train 1 of the liquefied natural gas export terminal.When fully operational, Train 1 will produce more than 5M metric tons/year of LNG, said a joint press release."We are extremely proud of the Freeport LNG project team for reaching this major milestone at this unique LNG production facility…
Novatek Closes in on Arctic LNG 2
Russian natural gas producer Novatek said it had completed the sale of stakes in its Arctic LNG-2 project to two Chinese companies and a consortium of two Japanese companies.The second largest natural gas producer in Russia announced the closing of the sale of participation interests in Arctic LNG 2 Project to wholly owned subsidiary of China National Petroleum Corporation (CNPC), wholly owned subsidiary of CNOOC Ltd. (CNOOC), and the consortium of Mitsui & Co and Japan Oil, Gas and Metals National Corporation (Japan Arctic…
Klaipeda LNG in Full Capacity
Lithuania's liquefied natural gas (LNG) terminal Klaipėdos Nafta (KN) said that its terminal capacities are now fully booked for the rest of the Gas Year, following the favorable situation in the international gas markets that has been determining the highest operative efficiency of the LNG terminal since the launch of its activities.The Gas Year is calculated from 1 October of the current year until 30 September of the following year.According to a press note from the operator of the Klaipėda Oil Terminal based in Klaipėda…
McDermott Wins Pre-FEED Gig by YPF
American multinational engineering company McDermott International announced it has been awarded a contract by Argentina-based YPF to provide pre-front-end engineering design (Pre-FEED) services for a five million tons per annum (MTPA) LNG Liquefaction Facility, with a potential expansion to 10 MTPA, at the Vaca Muerta Shale field in Argentina.The scope of work is a continuation of a previous conceptual study developed for the YPF LNG Export Facility in Argentina under a contract in 2018.McDermott's London office will provide…
Canada's FortisBC to Export LNG to China
FortisBC Energy Inc will export Canadian LNG produced by its small-scale LNG terminal in British Columbia to China starting in 2021.The Canadian natural gas utility, which has operated its Tilbury LNG plant since 1971, said in a press release that it has signed a two-year contract to ship 53,000 tonnes per year of super-cooled gas by the summer of 2021 to Chinese LNG distributor Top Speed Energy Corp.According to the agreement about 60 ISO containers (standard-sized shipping containers) a week shipped from Tilbury to China.“This is the first agreement of its kind that will see Canadian LNG shipped regularly to China…
Woodside Q2 Revenue Slides 32%
Australia's Woodside Petroleum Ltd reported a 32% drop in second-quarter revenue on Thursday, the first decline in six quarters, as it was hit by an extension of planned maintenance at its Pluto liquefied natural gas facility and weaker prices.The country's largest listed oil and gas explorer said production for the quarter ended June 30 fell to 17.3 million barrels of oil equivalent (mmboe), from 22.1 mmboe a year earlier. The latest quarter production figure was above Citi estimates of 16.33 mmboe.Sales fell to $738 million from $1.08 billion…
Santos Posts Record Production in Q2
Australia's No 2 independent gas producer Santos Ltd said on Thursday it had clocked record gas production in the second quarter on stronger output across its Western Australia gas assets.Production for the three months to June 30 rose to 18.6 million barrels of oil equivalent (mmboe) from 14.2 mmboe last year, the company said. The figure was higher than a Citi estimate of 17.78 mmboe.The company, however, slightly trimmed the upper end of its 2019 sales and production forecast, while raising the lower end. Santos now…
IEA: U.S., China to the LNG Lead by 2024
The United States and China will become the world's biggest liquefied natural gas (LNG) exporters and importers, respectively, in five years, according to projections by the International Energy Agency (IEA).U.S. LNG exports are expected to rocket to over 100 billion cubic meters (bcm) in 2024, dislodging current market leaders Australia and Qatar, Jean-Baptiste Dubreuil, senior natural gas analyst at IEA, said on Tuesday.He was speaking at a presentation sponsored by Columbia University's School of International and Public Affairs Center on Global Energy Policy in New York.China's LNG imports…
USCG & Liquefied Gas Cargoes as Marine Fuel
The establishment of air emissions regulations in the form of Emission Control Areas (ECA) and the approaching IMO 2020 sulfur cap have driven the search for economically, commercially, and environmentally acceptable marine fuels. With advancements in technologies and the significant growth of U.S. liquefied gas export markets, Coast Guard examiners are seeing a new trend on vessels carrying liquefied petroleum gas (LPG) and ethane; these vessels are using their cargoes as fuel during ocean transits.The use of cargoes other…
LNG Project Sanctions Set Records in 2019
Rystad Energy expects LNG greenfield investment in 2019 to reach almost $103 billion, which will be the biggest investment year for the burgeoning industry to date.A total of 33 million tpa of liquefaction capacity and $29 billion of Capex has been sanctioned so far this year, from Golden Pass LNG (US), Cheniere’s Sabine Pass T6 (US) and Anadarko’s Area 1 in Mozambique. Over 70 million tpa of capacity and $70 billion of Capex is waiting to be sanctioned in the second half of 2019. Venture Global’s 11.2 million tpa Calcasieu Pass project in Louisiana…
Höegh LNG Wins FSRU Deal with Cheniere
Norway-based floating LNG giant Höegh LNG has signed a time charter contract for a floating storage and regasification unit (FSRU) Höegh Galleon with Cheniere Marketing International.The time charter commences in September 2019 after the delivery of the unit, Höegh LNG’s tenth, from Samsung Heavy Industries Co., Ltd.The terms of the time charter ensure the Höegh Galleon’s availability to serve the AIE project in Port Kembla, Australia, where Höegh LNG is the FSRU provider on a back-to-back basis. AIE recently announced a contract to supply gas to its foundation customer from 1 January 2021.Under the contract with Cheniere…
Pieridae Mulls Extensions with Uniper
Canadian energy company has negotiated extensions of the key deadlines under its 20-year agreement with German energy trader Uniper.These include expected commercial deliveries of LNG gas to Uniper to start between November 30, 2024 and May 31, 2025, and the extension of the deadline to make a positive financial investment decision (FID) for the company’s proposed Goldboro LNG facility to September 30, 2020.The 20-year agreement with Uniper is for half the liquefied natural gas produced at Goldboro or 5 mmtpa (million…
LNG Bunkering Market to Reach $12bn by 2024
The global LNG bunkering market was valued at approximately USD 397.70 million in 2017 and is expected to generate revenue of around USD 11899.60 million by the end of 2024, growing at a CAGR of around 59.4% between 2018 and 2024.LNG bunkering is experiencing the highest growth rate in developed as well as developing countries, said a report by Zion Market Research.Escalating number of vessels using LNG owing to the need for cleaner fuels in compliance with the stringent government regulations in order to reduce air pollution and maintain sustainability is the main driver that is boosting the growth of the market.
Novatek Signs LNG Equipment Deal
The Russian natural-gas company Novatek and Atomenergomash, a mechanical engineering division of the Rosatom State Corporation, have signed a memorandum on strategic partnership and localizing the fabrication of critical equipment for liquefied natural gas (LNG) production.Novatek said that under the memorandum, the two companies will cooperate in the long term to localize the fabrication of pumps, heat exchangers and other equipment for Novatek's LNG projects at Atomenergomash's facilities.The Memorandum notes the results already achieved on the fabrication of coil-wound heat exchangers and medium-tonnage cryogenic pumps…
SCF Celebrates the Day of Russian Sea
Russian maritime shipping company specializing in petroleum and LNG shipping, PAO Sovcomflot (SCF Group) held a traditional meeting of the company’s management with masters of Sovcomflot vessels on the eve of Russia’s Day of Marine and River Fleet Workers, celebrated on the first Sunday of July.The state-owned corporation said in a press note that in the lead-up to this day, Russian Ministry of Transport has awarded 43 masters and 48 chief engineers of Sovcomflot vessels its Badge for Accident-Free Work in Maritime Transportation.During the meeting, Sergey Frank, President & CEO of Sovcomflot, expressed his gratitude to the company’s senior fleet
McDermott-Chiyoda Sign Cameron LNG Deal
American multinational company McDermott International and its joint venture member Chiyoda have reached an agreement with Cameron LNG related to the construction of its LNG liquefaction project in Louisiana.McDermott and Chiyoda are providing the engineering, procurement and construction for the first three liquefaction trains at the Cameron LNG export project.Cameron LNG is jointly owned by affiliates of Sempra LNG, Total, Mitsui & Co., Ltd., and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK).Sempra Energy indirectly owns 50.2% of Cameron LNG.
Woodside Plans Maintenance at Karratha Gas Plant
Australia's Woodside Petroleum has planned maintenance at its Karratha gas plant, part of the North West Shelf liquefied natural gas (LNG) export project, in the third quarter of the year, according to a notice on the company website.The first scheduled maintenance will affect one unidentified LNG train at the Woodside-operated plant in Western Australia from July 26 to Aug. 13, according to the notice.The second maintenance will be carried out on multiple LNG trains from Sept. 5 to Oct.
Corpus Christi Train 2 Delivers 1st LNG Cargo
Bechtel Corporation and Cheniere Energy have completed the first liquefied natural gas (LNG) commissioning cargo from Train 2 at the Corpus Christi Liquefaction (CCL) export terminal in Texas, US.A joint press release from the firms said that through the partnership they have now delivered seven LNG trains at two sites on the U.S. Gulf Coast since 2015.“We are pleased to have achieved another key milestone, LNG First Cargo, on the Corpus Christi Liquefaction Train 2, as part of the Commissioning and Startup process. This is the result of thoughtful planning and execution…
Woodfibre LNG Gets BC OGC Permit
Woodfibre LNG, a liquefied natural gas (LNG) export facility planned for Howe Sound on the southern B.C. coast, has received its facility permit from the British Columbia (BC) Oil and Gas Commission (OGC).“Following a rigorous process, Woodfibre LNG has received our Facility Permit issued from the BC OGC, one of the key permits required for construction and operation of the project. This is a positive step forward as we work to build the cleanest LNG export facility in the world," said Woodfibre LNG president David Keane.“This permit specifies requirements the project must comply with for design…
Mitsui, JOGMEC join Arctic LNG-2
Japanese trading house Mitsui & Co and state-owned Japan Oil, Gas and Metals National Corporation (JOGMEC) have signed a sales and purchase agreement with Russia’s Novatek for a 10% participation interest in the Arctic LNG 2 project.The share will be acquired through the Dutch Company, Japan Arctic LNG B.V., in which Mitsui has invested jointly with JOGMEC. The equity ratio of JOGMEC and Mitsui will be set at 75 percent and 25 percent respectively.The project will develop natural gas and liquefaction facilities with a production…
US LNG plays havoc with Dutch Gas, Asian shipping
Dutch gas prices hit 10-year lows this week, reflecting high European inventories swelled by liquefied natural gas (LNG) imports, testing levels at which companies that committed to buy U.S. LNG will start making serious losses.Prices for month-ahead Dutch gas have dropped by two-thirds since their peak last September of just under 30 euros per megawatt hour (MWh).On Friday, Dutch gas for July delivery slumped to 8.95 euros per MWh, the lowest since August 2009.The price falls are in part thanks to an influx of U.S. LNG supplies. But customers of Cheniere Energy, which dominates U.S.
Coralius Completes 1st Bunkering in Rotterdam
Finnish integrated gas company Gasum said that its liquefied natural gas (LNG) bunker vessel, Coralius, made its first bunkering in the port and refining area of Rotterdam, supplying LNG to Bit Viking."A milestone of her ship-to-ship bunkering history is reached when proving her availability in the ARA (Amsterdam-Rotterdam-Antwerp area)," said a press release from the Espoo-headquartered energy company.“It’s time to celebrate,” says Kimmo Rahkamo, Vice President, natural gas and LNG, Gasum. “Finally, being able to bunker our clients in the ARA area increases LNG availability and security for the LNG fueled fleet.
Market in Focus: Gas Ships
Infrastructure continues to expand, and pricing incentives will continue to shift as the market matures. The LNG markets look like they may resemble the clean product tanker market in several years, which is highly arbitrage driven. We look to see an increased number of portfolio players working the spot market, which will drive the commoditization of the space and enable further demand.The total ton-mile demand for LNG carriers has increased over the past several years. More than 60 countries have imported LNG cargoes in the past quarter, and 14 of these countries imported no LNG in 2013, highlighting the growing ecosystem available for sellers.
USA to Dominate in LNG Capacity
The US and India are expected to lead capacity growth in the global LNG liquefaction and regasification industries from planned and announced (new-build) projects, respectively during the outlook period 2019-2023.The US's new-build liquefaction capacity is expected to grow from 26.1 million tonnes per annum (mtpa) in 2019, to 210.3 mtpa in 2023, said a report by ResearchAndMarkets.Of the total capacity expected to come online in 2023, 94 mtpa is expected to come from planned projects that have received required approvals…
Delfin Asks for FLNG Project Extension
Delfin LNG LLC asked U.S. federal energy regulators for a three-year and six-month extension until March 28, 2023 to build facilities proposed to connect floating liquefied natural gas (FLNG) vessels off the coast of Louisiana.The U.S. Federal Energy Regulatory Commission (FERC) issued an order on Sept. 28, 2017 authorizing Delfin to build and operate the facilities to transport and deliver natural gas to FLNG vessels in federal waters off Cameron Parish in Louisiana.The FERC order required Delfin to complete the facilities…
Pavilion Acquires LNG assets of Iberdrola
Singapore-based LNG company Pavilion Energy said its wholly owned subsidiary Pavilion Energy Trading & Supply has agreed to buy Spanish energy company Iberdrola's portfolio of liquefied natural gas (LNG) assets.The portfolio comprises about 4 million tonnes per annum (mtpa) of Iberdrola's long-term LNG sale and supply contracts.It also includes long-term regasification of approximately 2 mtpa at the Grain LNG terminal (UK), regasification access in Spain and the Spanish-France border pipeline capacity, as well as the time-charter of a newbuild MEGI LNG vessel.
Shell Sees More FLNG Opportunities
Royal Dutch Shell sees more opportunities for floating liquefied natural gas projects, but not necessarily like its $17 billion Prelude operation off Australia, which shipped its first cargo last week, over two years behind schedule.Shell Australia Chair Zoe Yujnovich said on Wednesday that it was too early to tell whether Prelude, one of two floating LNG (FLNG) projects in the world, would be replicated in future, as the company was still commissioning the project."I think that there's an opportunity for the floating concept.
Masela Development Approval Nears
The Indonesian government is set to approve Japanese Inpex Corp's revised plan of development for the Masela natural gas block next week, the chairman of the country's upstream oil and gas regulator SKK Migas said on Wednesday.The government is expecting Inpex to submit the plan for the $20 billion gas project this week, Dwi Soetjipto, the SKK Migas chairman told reporters in Jakarta.Approval of the development plan would let Inpex, which controls 65% of the project, start planning for construction of the onshore liquefied natural gas (LNG) processing plant after years of delay.Inpex had to scrap an earlier development plan after the government or
Anadarko Approves $20 Bln Mozambique LNG Project
U.S. energy firm Anadarko Petroleum Corp gave the go-ahead on Tuesday for the construction of a $20 billion gas liquefaction and export terminal in Mozambique, the largest single LNG project approved in Africa, according to the government of Mozambique and energy consultancy Wood Mackenzie.The announcement, which occurred at an event in Mozambique, was widely expected after Anadarko last month flagged the decision date. Officials at Anadarko were not immediately available for comment.The project, which has committed long-term supplies to utilities…
Abadi LNG Development Deal Reached
Japan's biggest oil and gas explorer Inpex Corp and the Indonesian government signed a basic agreement on the development of Indonesia's Abadi liquefied natural gas (LNG) project on Sunday, moving forward the $15 billion project.Inpex President Takayuki Ueda said the Japanese company, which owns a 65 percent stake in the project, said they plan to submit a development plan for the project within several weeks to the Indonesian government and aim to make a final investment decision within 2-3 years.The signing ceremony took place on the sidelines of a meeting of G20 energy and environment ministers in Karuizawa…
Australia Dominates China's LNG Supply
Australia's fast-expanding liquefied natural gas industry has this year been supplying the lion's share of China's growing demand for imports of the commodity, with appetite surging as Beijing shifts away from dirtier fuels such as coal.Australia supplied over 53% of China's LNG imports during the first five months of 2019, shipping data in Refinitiv showed, up from around 40% in 2016 when a previous round of new Australian export projects started to ramp up.With Royal Dutch Shell's Prelude facility delivering its first LNG cargo this week from northwest Australia…
Prelude FLNG Ships First LNG Cargo
The first shipment of liquefied natural gas (LNG) has sailed from Shell’s Prelude floating LNG (FLNG) facility offshore Australia, Shell announced Tuesday alongside its joint venture partners INPEX, KOGAS and OPIC.This shipment from the world’s largest floating producer of LNG, located 475 kilometers northeast of Broome in Western Australia, will be delivered by the LNG carrier Valencia Knutsen to customers in Asia, more than eight years after financial investment decision (FID) and nearly two years after the facility arrived in Australia."How fast Prelude delivers its second and third cargo…
Gazprom, Sovcomflot Pact on LNG Bunkering
Russian shipping company Sovcomflot and compatriot oil producer Gazprom Neft Marine Bunker have signed an agreement to cooperate on projects for bunkering ships with LNG fuel.The agreement was signed by Igor Tonkovidov, Executive Vice President and CTO/COO of Sovcomflot, and Andrey Vasiliev, CEO of Gazprom Neft Marine Bunker.Sovcomflot said that the agreement reinforces the mutual interest of both parties regarding their cooperation in the bunkering of Sovcomflot’s tankers with LNG fuel.Compared to conventional marine fuels…
First LNG Bunker Vessel Coming in 2020
Wärtsilä was tapped to supply an integrated package of sustainable solutions for China’s first seagoing LNG bunker vessel, scheduled for delivery in 2020.The ship is being built by the Dalian Shipbuilding Industry Corporation (DSIC) for an affiliate of the ENN Energy holdings, one of the largest users of LNG in China. It has been designed by China Ship Design & Research Center Co. Ltd. Wärtsilä will provide the vessel’s cargo handling system, the Wärtsilä 34DF dual-fuel main engine, the gearbox, controlled pitch propeller (CPP), shaft generator, two Wärtsilä 20DF dual-fuel auxiliary engines, and the ship’s sewage treatment plant.
Exmar Commissions Tango FLNG
Belgian owner and operator of gas carriers Exmar has completed the commissioning of the 16,100 cbm Tango floating liquefaction unit (FLNG).The performance acceptance tests has been successful, the first cargo has been offloaded and will be exported out of Argentina, said a release from the provider of specialized floating assets.With this first shipment the start-up of the Tango FLNG is accomplished in a record time following the contract signing in November 2018 and delivery acceptance of the unit in Bahia Blanca in February 2019.
Novatek Pact with Chinese Duo on Arctic LNG 2
Russia's second largest natural gas producer, Novatek has signed share purchase agreements with two Chinese oil giants for the sale of participation interest in the Arctic LNG 2 project.Novatek announced that it has signed the Share Purchase Agreement with China National Offshore Oil Corporation (CNOOC) in relation to the sale of a 10% participation interest in the Arctic LNG 2 project.The Agreement will close in the nearest future subject to approval by regulatory authorities of the Russian Federation and the People’s…
Austria's OMV, Russia's Gazprom Sign Pact
Austrian integrated oil and gas company OMV and Russian energy giant Gazprom have signed a Memorandum of Understanding (MoU) for cooperation on Liquefied Natural Gas (LNG).The two companies had previously agreed that Gazprom will supply 1.2 billion cubic meters of LNG to OMV in 2020.On this basis, both partners have now agreed to continue the cooperation beyond the year 2020, including the sale and purchase of conventional and small-scale LNG cargo.In addition, both companies intend to explore options for the joint development…
Chinese, Russian Majors Ink Arctic LNG Deal
Russia's second largest natural gas producer Novatek, Russian maritime shipping company specializing in petroleum and LNG shipping Sovcomflot, Chinese state-owned shipping and logistics services supplier company COSCO Shipping Corporation Limited, and the Chinese government owned investment fund Silk Road Fund, signed a four-party agreement to establish a joint venture Maritime Arctic Transport LLC.The focus of the Maritime Arctic Transport joint venture is to manage an icebreaking tanker fleet of Arctic ice-class vessels…
Chinese Buyers Leave US LNG
Chinese buyers have avoided US LNG projects even before the tariffs hiked to 25%, said a report by Rystad Energy.Despite the Chinese tariffs, there is still appetite for US LNG from other countries. Since the first tariff of 10% was introduced on US LNG in September 2019, the US has signed about 18 million tpa worth of new export agreements with buyers globally.Rystad Energy does not expect to see any new Chinese buyers of US volumes as long as the tariff is in force.And that could be crucial for some US projects as the Chinese LNG market is experiencing the largest import growth globally…
EPC Contract Awarded for Mozambique LNG
A joint venture between McDermott, Saipem and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum Corporation for the Mozambique Area 1 Liquefied Natural Gas (LNG) Development, McDermott International announced on Wednesday.CCS JV’s project scope includes the onshore engineering, procurement and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA), plus the associated utilities and infrastructure.
Shipping of First LNG Cargo from Prelude is "Imminent" - Royal Dutch Shell
Shipping of the first liquefied natural gas (LNG) cargo from the long-awaited Prelude floating production project in Australia is "imminent", Royal Dutch Shell said on Tuesday.Prelude - the world's biggest floating LNG production unit and the biggest maritime vessel ever built - is expected to have an annual LNG production capacity of 3.6 million tonnes.It will also produce 1.3 million tonnes a year of condensate and 400,000 tonnes a year of liquefied petroleum gas (LPG). (Reuters, Reporting by Ekaterina Kravtsova; Editing by Jan Harvey)
Australia to be World's Largest LNG Exporter
Australia is all set to become the world’s largest producer of liquefied natural gas (LNG) next year and to retain that position until 2024, when Qatar will reclaim the top spot, said a report by Rystad Energy'“Australia has no intention of relinquishing its hard-earned LNG crown without a fight. Over the next two years, pending approvals on up to seven Australian integrated LNG projects could challenge Qatar as the country with the largest sanctioned LNG volumes from integrated projects during that period,” says Readul Islam…
Total Takes Over Toshiba's U.S. LNG Biz
French energy giant Total takes over the liquefied natural gas business of Japanese outfit Toshiba's Freeport LNG train tolling agreement and gains $800 million.The French oil and gas company will is paying $15 million for the shares in the Texan assets, the firms said. Toshiba will also pay Total $815 million to take over all the contracts linked to the business, Total added."It includes a 20-year tolling agreement for 2.2 million tonnes per annum (Mtpa) of LNG from Freeport LNG train 3 in Texas and the corresponding gas transportation agreements on the pipelines feeding the terminal.
Cheniere to build LA Sabine LNG Export Train
U.S. liquefied natural gas (LNG) company Cheniere Energy Inc said on Monday it will build the sixth liquefaction train at its Sabine Pass LNG export terminal in Louisiana.Cheniere also said it expects to make a positive final investment decision as early as 2020 to add about 9.5 million tonnes per annum (MTPA) of additional liquefaction capacity at its Corpus Christi LNG export terminal in Texas.Natural gas use is growing rapidly around the world as countries, like China, seek to wean their industrial and power sectors off dirtier coal. Cheniere is the biggest supplier of U.S.
Global LNG Trade Continues to Increase
Höegh LNG Partners, a provider of floating liquid natural gas (LNG) services under long-term contracts, said that with new LNG production facilities in the US and around the world coming on stream, global LNG trade continues to increase.This, together with competitive LNG pricing and environmental arguments, are driving interest in FSRUs world-wide, said the company which owns and operates floating storage and regasification units (FSRUs) which act as floating LNG import terminals. "With an established platform of long-term contracts…
Bechtel Bags Rio Grande LNG EPC Deal
US project management services provider Bechtel has won the engineering, procurement, and construction (EPC) contracts totaling $9.565 billion for the LNG export project developer NextDecade-led Rio Grande liquefied natural gas (LNG) project in the US.The fully wrapped lump-sum turnkey (LSTK) EPC contracts include cost, schedule, and performance guarantees, NextDecade said in its statement.The EPC contracts are for the first phase of the Rio Grande LNG project, which consists of three liquefaction trains, two 180,000 cubic…
Total to Discuss Anadarko Assets with Algeria
Total will meet Algerian authorities for talks over its plans to buy Anadarko's assets in the country and is not worried by media reports that Algiers would block the deal, Chief Executive Patrick Pouyanne said on Wednesday."We will meet Algerian authorities very soon," Pouyanne told shareholders at the company's annual meeting in Paris. "We are not worried. It is normal that authorities seek to have dialogue with their principal partners and Total is one of the partners of Algeria."Algeria's energy minister said on Monday…
Uniper Sells Italian LNG Plant Stake
German energy group Uniper has concluded an agreement with Australian fund First State Investments to divest its stake in OLT Offshore liquefied natural gas (LNG) Toscana.First State Investments will acquire Uniper’s entire OLT stake. The purchase price for Uniper’s stake amounts to approx. €400 million ($452 million) and will be adjusted at closing for any distributions already made to Uniper in 2018 and 2019. The resulting net proceeds at a closing later this year are expected to be at a level of approx. €340 million.Uniper has a 48.2% stake in OLT.
Qatar Awards FEED Contract to McDermott
Qatar Petroleum said it has awarded the front end engineering and design (FEED) contract for the North Field Expansion Project’s offshore pipelines and topsides facilities to McDermott Middle East Inc.The scope of work awarded includes engineering design for eight unmanned wellhead platform topsides, four 38” trunk lines and four 28” intrafield lines, and is expected to take 12 months to complete.Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of Qatar Petroleum, said, “This award comes…
FSRU: Bangladesh Terminal Makes First STS Transfer
Bangladesh's second liquefied natural gas (LNG) floating facility is set to receive its first ship-to-ship transfer of gas from an Algerian cargo, a spokeswoman from operator Summit LNG Terminal said on Thursday.'Summit LNG', the floating storage and regasification unit (FSRU), will receive 159,000 cubic meters of LNG from Oman Trading International, with the transfer expected to be completed by Thursday night.The LNG tanker, Creole Spirit, loaded gas from Bethioua, Algeria, she said, adding that a second LNG tanker is expected to arrive on June 3.The FSRU is 75% owned by Summit Corp, a unit of Summit Power International, while its remaining stake
Saudi Aramco to Buy LNG from US
Saudi Arabia’s state owned oil company Saudi Aramco will buy 5 million tons of liquid natural gas per year(LNG) from the U.S. company Sempra Energy, based in San Diego under a 20 year agreement.The heads of agreement (HOA) between the companies anticipates the negotiation and finalization of a definitive 20-year liquefied natural gas (LNG) sale-and-purchase agreement (SPA) for five million tonnes per annum (Mtpa) of LNG offtake from Phase 1 of the Port Arthur LNG export-project under development. It also includes the negotiation and finalization of a 25% equity investment in Phase 1 of Port Arthur LNG.Amin Nasser…
FLNG Satu Achieves First LNG at Kebabangan
Petronas has produced its first liquefied natural gas (LNG) from a floating LNG (FLNG) facility at the Kebabangan cluster field, 90 kilometers offshore the eastern state of Sabah, the Malaysian state-owned oil company announced on Tuesday.First gas from Kebabangan was introduced into the Petronas FLNG (PFLNG) Satu’s turret system via a 5-kilometer flexible pipeline on May 4, followed by three days of start-up activities that lead to production of the first LNG drop on May 7.Petronas said it expects the first LNG cargo delivery in June 2019.Operated by Kebabangan Petroleum Operating Company Sdn Bhd (KPOC)…
Novatek in Arctic LNG 2 Deal with TechnipFMC
Russian largest independent gas producer and liquefied natural gas (LNG) player Novatek signed a deal with TechnipFMC for its Arctic LNG 2 project.The contract was signed on engineering, procurement, supply, construction and commissioning (EPC) of an integrated liquefied natural gas facility with an annual liquefaction capacity of 19.8 million tons under the Arctic LNG 2 project, said a press release from the Russia's second largest natural gas producer.The contract terms provide for the launch of the first train of the project in 2023…
Gazprom Finds New Yamal Offshore Fields
Russian state gas producer Gazprom has discovered two new offshore fields in the Yamal region with total reserves of more than 500 billion cubic meters (bcm), the company said on Friday.The fields are located in the Kara Sea and hold 390.7 bcm and 120.8 bcm respectively, Gazprom said.(Reporting by Anastasia Teterevleva and Gabrielle Tétrault-Farber; Writing by Tom Balmforth; Editing by David Goodman)
