Virus Lockdowns Pummel Global Gas Demand, Force LNG Output Cuts
Lockdowns to slow the coronavirus pandemic are pummelling gas demand in the world's biggest buyers of liquefied natural gas (LNG), pushing Asia's spot prices to record lows and forcing some suppliers to start cutting output. Economies worldwide have ground to a halt as virus containment measures have taken their toll, slashing gas demand for power generation, heating, cooking, vehicles and chemical manufacture. The world's biggest LNG markets - Japan, China, South Korea, and India - are all seeing a drop in demand.
Mitsubishi Beats Shell to Buy Eneco
A group led by Japan's Mitsubishi Corp will buy Eneco in a deal valuing the Dutch energy firm at 4.1 billion euros ($4.52 billion), Eneco said on Monday, beating off rival bids from Shell and private equity firm KKR.Eneco, a company owned by 44 Dutch municipalities and with a strong focus on renewable energy, said it had been swayed by Mitsubishi's plans to allow the company to continue its strategy and retain its corporate identity.The deal…
Japan Marks 50 years of LNG Imports
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…
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 arr
Prospective Bidders for Eneco Narrows
The field of prospective bidders for Dutch energy company Eneco has narrowed as initial interest from big electricity players including France's Engie and Austria's Verbund has fizzled out, sources close to the matter said.The 53 municipalities that currently own Eneco, estimated by analysts to be worth about 3 billion euros ($3.35 billion), said in December they would sell the company through an auction later this year.The process is now expected to kick off in May…
Russia: Japan's Mitsubishi Interested in Arctic LNG 2 Project
Russia's energy ministry said on Monday that Japan's Mitsubishi Corp has expressed interest in participation in the Arctic LNG 2 project, which is due to start producing liquefied natural gas in the next decade.Novatek owns a 90 percent stake in the project, with France's Total holding the other 10 percent. Novatek intends to keep a 60 percent stake in Arctic LNG 2, offering 30 percent to other investors.Energy ministry officials have met representatives from Mitsubishi…
Oil Slips 2 Percent
Oil prices dropped about 2 percent on Friday, weighed down by a falling U.S. stock market, while weak economic data from China pointed to lower fuel demand in the world's biggest oil importer.Brent crude futures for February delivery fell $1.16 to $60.29 a barrel, a 1.9 percent loss, by 1:15 p.m. ET (1815 GMT). U.S. West Texas Intermediate (WTI) crude futures fell $1.24 to $51.34 a barrel, a 2.4 percent loss.Global benchmark Brent was set for a weekly loss of about 2.2 percent…
Oil Slips on Falling U.S. Equity Market, Weak China Economic Data
Oil prices dropped more than one percent on Friday, weighed down by a falling U.S. stock market, while weak economic data from China pointed to lower fuel demand in the world's biggest oil importer.Brent crude futures fell 75 cents to $60.70 a barrel, a 1.2 percent loss, by 10:53 a.m. EST (1553 GMT). U.S. West Texas Intermediate (WTI) crude futures dropped 93 cents to $51.65 a barrel, a 1.8 percent loss.Global benchmark Brent was set for a weekly loss of about 1.7 percent…
Bangladesh Resolves FSRU Issues
Bangladesh will resume liquefied natural gas (LNG) imports this week after resolving issues with its sole floating storage and regasification (FSRU) unit, a senior official said on Monday.Two cargoes, meant to be delivered on Nov. 7 and Nov. 15, had been cancelled as the FSRU was closed due to problems with a hydraulic line that operates an emergency shutdown valve."The problem with the hydraulic line has been resolved now," said Mohammad Quamruzzaman…
Japanese Firms Sign Deals to Buy from LNG Canada
Two Japanese companies have signed agreements to buy liquefied natural gas (LNG) cargoes from the LNG Canada project, Reuters reported.Toho Gas Co signed a basic agreement with a wholly-owned subsidiary of Mitsubishi Corp to buy up to four cargoes or about 0.3 million tonnes per annum (mtpa) of LNG from the project over 15 years starting 2024/25.Tokyo Gas Co signed a heads of agreement with a wholly-owned subsidiary of Mitsubishi…
Mitsubishi Signs on $31 Bln LNG Canada Project
Japanese trading house Mitsubishi Corp said on Tuesday it will join in developing the LNG Canada project in British Columbia led by Royal Dutch Shell, which has taken a final investment decision to go ahead with the development.The C$40 billion ($31 billion) project, on the west coast of Canada, will consist of two liquefied natural gas (LNG) production facilities, known as trains, that are expected to export about 14 million tonnes per year of the fuel.LNG Canada is a joint venture between Shell, Malaysia's Petronas, PetroChina Co Lt
Bangladesh Shelves LNG Projects as Others Ramp Up
Bangladesh has put aside two smaller liquefied natural gas (LNG) projects with trading houses Gunvor and Vitol to focus on two larger LNG import terminals, one of which is already in use while the second will start up in March.Bangladesh has turned to LNG to offset falling domestic gas output to feed industrial demand and electricity generation in a nation of 160 million people where a third have no power supply.It aims to import 17 million tonnes a year of LNG by 2025, which in today's terms would make it a top five importer.
Mitsubishi to Acquire 25% Take in Bangladesh LNG Terminal
Japan’s Mitsubishi Corp has agreed to take a 25% interest in Summit's Bangladesh LNG import terminal project - which will be the country's second such terminal.The other 75% of the Summit LNG terminal will remain with Summit Corp.Mitsubishi is planning to help in the development of an offshore receiving facility in the country. It will also develop a liquefied natural gas (LNG) receiving terminal that uses a floating storage and regasification unit (FSRU) in Bangladesh.Under the project…
Plans for Another South Australia LNG Import Plant in the Works
A private firm is looking to import liquefied natural gas (LNG) to South Australia starting in 2020, around the same time as two other proposed import projects, looking to fill a supply gap as domestic gas gets sucked into LNG exports.Venice Energy, set up by former BHP Billiton executives, plans to submit a development application to the South Australian government within the next month to park a floating storage and regasification unit (FSRU) in Port Adelaide…
Oil Prices Slip On Expectations of Higher Supply
Oil prices fell on Wednesday on increasing signs that Saudi Arabia and other big crude producers may raise supply to balance a surge in demand during the peak U.S. summer driving season.Global oil benchmark Brent crude climbed above $80 a barrel last month, but prices have eased since then on talk of higher output by the Organization of the Petroleum Exporting Countries.Brent was down 35 cents a barrel at $75.03 by 1320 GMT. U.S.
Asian Traders Mull U.S. Crude Liftings in Harvey's Wake
Harvey closed nearly a quarter of U.S. refining capacity; helping to push WTI-Brent spread to widest in two years. Some oil traders in Asia are looking to snap up crude cargoes from the United States after Hurricane Harvey closed U.S. refineries, denting local demand and pushing out the price spread between U.S and Atlantic Basin crude benchmarks. Hurricane Harvey barrelled into the U.S. Gulf of Mexico coast around 10 days ago, closing nearly a quarter of the nation's refining capacity, although some of that is now coming back online.
Gazprom, Mitsubishi Corp. in Talks on LNG Cooperation
Gazprom said on Friday it had held talks with Japan's Mitsubishi Corp. on Friday about cooperation at the Russian gas giant's Sakhalin-2 liquefied natural gas (LNG) plant. The talks, in the Russian city of St Petersburg, were between Gazprom head Alexei Miller and Takehiko Kakiuchi, the president and CEO of Mitsubishi Corp, Gazprom said in a statement. It said the talks focussed on the planned construction of a third production train at the Sakhalin-2 LNG plant. (Reporting by Christian Lowe; editing by Alexander Smith)
Asia's Soaring Gas Demand Beckons New LNG Projects
Global LNG imports rose by 20 percent in 2017; new demand emerges across South, Southeast Asia. Soaring gas demand from China, India and Southeast Asia is sucking up an LNG supply glut previously expected to last for years, opening opportunity for new production from East Africa to North America that had been deemed part of the overhang. Trade flows in Eikon show global liquefied natural gas (LNG) imports have risen 40 percent since 2015, to almost 40 billion cubic metres (bcm) a month.
$3 Bln LNG-to-power Project Planned in Bay of Bengal
Bangladesh's Summit Power International said on Tuesday it signed a memorandum of understanding with Japan's Mitsubishi Corp and subsidiary Diamond Gas International to develop a $3 billion LNG-to-power project. Under the MoU, subsidiary Summit Corp, group company Summit Holdings and the Japanese firms agreed to develop an integrated liquefied natural gas (LNG) onshore receiving terminal with regasification capacity of up to 1,500 million cubic feet per day (mmcfd) at Matarbari, Moheskhali in the Bay of Bengal.
BP eyes 119 LNG Cargoes Annually From Indonesia
Oil major BP is targeting shipping 119 cargoes of liquefied natural gas (LNG) from its Tangguh project in Indonesia's West Papua province this year, including 22 for the domestic market, a company official said on Wednesday. BP expects to keep the same balance of shipments for export and the domestic market unchanged up to 2020, BP Indonesia country head Dharmawan Samsu told a parliament hearing. After 2020 BP will dedicate roughly one-third of the LNG output from Tangguh to the domestic market, or around 60 cargoes, Samsu said.