Tuesday, October 27, 2020

Sumitomo News

Japan's LNG Investments Drive Faces Risk of Souring

Image credit: vladsv - AdobeStock

Japan's banks and public agencies have funneled nearly $25 billion into liquefied natural gas (LNG) projects since 2017 but the investments may sour as prices plummet from the COVID-19 pandemic and as climate change risks rise, a new study shows.Spurred on by the government to boost energy security since the 2011 Fukushima disaster shut down the country's reactors, Japan's investment in LNG rivals that for coal, the dirtiest fossil fuel, while more…

Belgium: Northwester 2 Offshore Wind Farm Complete

Image Credit: Parkwind

The 219 MW Northwester 2 wind farm has been completed and is now supplying the Belgian grid electricity by all of its 23 fully operational wind turbines producing 9,5 MW each. This wind farm, owned by Parkwind (70%) and Sumitomo (30%) is the first to use the MHI Vestas V164-9.5 MW turbines in commercial operation. The first turbine was installed in December 2019.This is the seventh wind farm in the Belgian North Sea, which now brings the total offshore energy capacity to 1…

Virus Lockdowns Pummel Global Gas Demand, Force LNG Output Cuts

Illustration; An LNG Carrier - Image by vladsv/AdobeStock

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.

WFW Advises on Race Bank Wind Farm Deal

Image: WFW

Watson Farley & Williams (WFW), an international law firm based in London, said that it has advised Race Bank Wind Farm Limited on its USD 608 million sale of transmission system assets relating to the 573 MW Race Bank offshore wind farm to Diamond Transmission Partners.Race Bank is a joint venture owned by Ørsted (50%), Macquarie European Infrastructure Fund 5 (25%), a fund established by Sumitomo Corporation, Sumitomo Mitsui Banking Corporation and Development Bank of Japan (12.5%)…

Offshore Wind Cable Market to Reach $3B

Image: ZTT

The global offshore wind cable market is estimated to grow at CAGR above 16% over the forecast time frame 2019 to 2026 and reach the market value around $3 billion by 2026.The demand for offshore wind cables has seen significant development due to the paradigm shift towards fresh renewable techniques with increasing consciousness of carbon emission limits, said a report by Acumen Research and Consulting."Offshore wind turbines are rapidly growing, with a higher capacity production more than onshore wind generation.

Japanese Firms Begin Offshore Wind Surveys

Map: Sumitomo Corporation Group

Japanese companies Sumitomo Corporation and Electric Power Development Co., Ltd. (J-POWER) have begun an offshore ground investigation off the coast of Japan to explore the possibility of developing an offshore wind power plant.The Japanese government is currently in the process of determining areas to be designated as offshore wind power development promotion areas under a new law enacted this fiscal year, for which the government will invite applications…

MOL, Mitsui Join in Modec FPSO Project

Pic: MODEC

Mitsui O.S.K. Lines and Mitsui & Co have participated in a long-term charter business  operated by MODEC for the purpose of providing a floating production, storage, and offloading system (FPSO) for use in the Area 1 block offshore Mexico and a loan agreement for the Project was entered into on April 12, 2019.Mitsui and MOL invested in Area1 Mexico MV34 B.V. ("MV34"), a Dutch company established by MODEC, which will engage in FPSO leasing, operations and maintenance services.In December 2018, MV34 concluded the charter agreement with Eni Mexico S. de R.L.

Engie, EDPR, Sumitomo Pact to Build French Offshore Wind Farms

Image: EDP Renewables

French utility Engie and Spanish partner EDP Renovaveis (EDPR) announced their alliance with the Japanese group Sumitomo Corporation to build the French offshore wind farms of Dieppe-Le Tréport and Yeu-Noirmoutier.As part of the alliance, Sumitomo Corporation acquires a 29.5% equity stake in the French offshore projects (Dieppe Le Tréport and Yeu Noirmoutier) and will bring to the consortium its proven and complementary offshore wind expertise in terms of development…

Arkas Bunkering, Sumitomo Corporation in LNG Bunkering Deal

Pic: Arkas Holding S.A.

Arkas Bunkering have signed a protocol with Japan-based Sumitomo Corporation for the use of liquefied natural gas (LNG) as bunker fuel in Turkish and nearby seas. As environmentally-friendly buildings, vessels and fuels have become more popular than ever, new applications acting as reminders for both states and civil initiatives of their environmental responsibilities continue to emerge. With International Maritime Organisation’s (IMO) global sulphur cap set to enter into force in 2020…

Freeport Signs Initial LNG Offtake Deal with Sumitomo for Train 4

* Privately-owned U.S. liquefied natural gas terminal operator Freeport LNG said it had signed a binding agreement with a U.S.

What Glencore-Tohoku Coal talk Impass Means for Market

File Image (CREDIT: AdobeStock / © Leonid Eremeychuk)

Electric utilities in Japan and other Asian countries are driving blind when it comes to coal prices after the failure of Japan's Tohoku Electric and Glencore to agree on an annual thermal coal contract that is used to set prices for the region. Tohoku Electric, a major Japanese utility, and Glencore, the world's biggest exporter of seaborne thermal coal, abandoned the talks last month on their annual Australian supply contract. "Both parties seem to have tried hard to come to a consensus but always had large difference in price expectations this year…

Race Bank Offshore Wind Farm Officially Opens

(Photo: Ørsted)

A new offshore wind farm officially opened this week that is capable of powering over half a million U.K. homes.The Race Bank wind farm located off the North Norfolk coast is capable of generating 573 megawatts (MW) of green electricity from its 91 Siemens Gamesa 6 MW wind turbines.

First Cove Point LNG Lifting Departs Maryland

File Image: CREDIT Dominion Energy

The first contractual liquefied natural gas (LNG) cargo from Dominion Energy Inc's newly constructed Cove Point LNG export plant in Maryland in the United States left the facility on Monday, Thomson Reuters Eikon ship tracking data showed. The cargo is expected to act as a drag on spot LNG prices <LNG-AS> as it coincides with the resumption of exports of the fuel from the Papua New Guinea LNG plant, which had been shut following a powerful earthquake.

Glencore Acquires Rio Tinto's Hail Creek Coal Mine

File Image (CREDIT: AdobeStock / (c) Carolyn Franks)

Glencore consolidating in coal as Rio exits; Rio Tinto shares rise 0.9 pct, Glencore slips. Glencore is buying Rio Tinto's Hail Creek coal mine and the Valeria coal project in Australia for $1.7 billion, tightening the Swiss trading and mining giant's grip on coal as its rivals exit the industry. The acquisition, announced by both companies on Tuesday, follows Glencore's purchase of half of Rio Tinto's Hunter Valley coal operations, also in Australia, for $1.1 billion last year in a deal with China's Yancoal Australia Ltd.

EU Mergers and Acquisitions

© mybaitshop/Adobe Stock

The following are mergers under review by the European Commission that could be of interest to the global maritime and energy communities. -- Austrian company Borealis, Canada's Nova Chemicals and French oil and gas major Total to set up a joint venture (notified Feb. -- British turnaround specialist Melrose Industries to acquire British engineering company GKN (notified Feb. -- German steel company ELG Haniel and and Spanish peer Iberinox 88 SA to set up a joint venture (notified Feb.

Vessel Docks at Maryland Cove Point LNG Terminal

The Dominion Energy Cove Point Terminal. (CREDIT: Dominion Energy)

Gemmata could be the first vessel to pick up fuel from the facility since the tanker came from Spain - a non-LNG exporting country - with less than a full cargo, according to the shipping data. In addition to Gemmata, another vessel, the Methane Spirit, is also headed for Cove Point, according to the shipping data. Methane Spirit is located near Singapore and is expected to reach Cove Point around March 31. Once it enters service, Cove Point will be the second big LNG export terminal in the lower 48 U.S.

Cove Point LNG Terminal's First Export Imminent

File photo: Methane Spirit loads from the Australia Pacific LNG Gladstone terminal (Photo: Teekay)

Methane Spirit, a liquefied natural gas tanker, said on Thursday it would arrive at Dominion Energy Inc's Cove Point LNG export facility in Maryland around March 31, according to Reuters shipping data. If correct, that could be the first vessel to pick up a cargo from the LNG facility, which Virginia-based Dominion said it expects to enter service in March. Dominion said it planned to spend $4 billion to add export facilities at Cove Point, long an LNG import terminal on the Chesapeake Bay.

Gazprom Secures $1.19 Bln Loan from Japanese, US Banks

Russian energy major Gazprom said on Tuesday it would receive 1 billion euros ($1.19 billion) in a five-year loan from Japan's Mizuho Bank Ltd and Sumitomo Mitsui Banking Corp, as well as U.S. lender JP Morgan Chase Bank.   ($1 = 0.8413 euros) (Reporting by Dmitry Solovyov; Editing by Jack Stubbs)

Japan Fires Up Biomass Energy as Fuel Shortage Looms

© Mikael Damkier / Adobe Stock

As the sun sets on Japan's solar energy boom, companies and investors are rushing into wood-burning biomass projects to lock in still-high government subsidies. More than 800 projects have already won government approval, offering 12.4 gigawatts (GW) of capacity -- equal to 12 nuclear power stations and nearly double Japan's 2030 target for biomass in its basic energy policy. The sheer number of projects has raised questions about how they will all find sufficient fuel…

Oman Oil Closes $2 Billion Loan Financing

Oman Oil Co, the Omani state-owned petroleum firm, has completed a $2 billion loan financing, a source close to the matter said. The company’s funding efforts are part of a wider push by the government to raise international finance to reduce pressure on its budget, which has been hit by low oil prices. Oman Oil has signed a revolving credit facility (RCF) of $1.15 billion, with a five-year maturity, and has slightly amended the terms of an existing $850 million revolving loan that matures in 2019, the source said.