AI
Monday, July 09, 2012 7:27:41 PM
Capt'n--I'll add to your response to Lloyd re: Natgas prices. Natgas is our Apple!
Natural Gas, and especially LNG is the name of the game in energy these days. I'll follow with just a small tip of the iceberg so you'll gain some insight into the business:
Japan expects to import 20% of LNG from N.America (keep in mind that we don't even have the ability to export that capacity yet)
TOKYO, June 27 | Wed Jun 27, 2012 8:27am EDT
(Reuters) - Japan expects to import 15 million tonnes of liquefied natural gas (LNG) from North America per year from as early as 2016 once the United States lifts restrictions on exports to the world's biggest LNG buyer.
A group of Japanese cabinet ministers on Wednesday cited the volume estimate, which amounts to about 20 percent of Japan's annual LNG imports, in a discussion on how to drive growth of the world's third-biggest economy after last year's Fukushima nuclear crisis, a government official said at a news conference.
A rise in the costs of importing more fuel to cover a drop in nuclear capacity since the Fukushima disaster helped drag Japan into its first trade deficit in three decades last year.
Tokyo now seeks ways to cap costs as it aims to rely less on nuclear power in the medium-to-long term.
Japan wants to tap cheaper natural gas in the United States and Canada if and when their facilities are ready to cool natural gas to a liquid for transport, and a few Japanese companies have made preliminary agreements to invest in such projects.
Wednesday's estimate did not include a breakdown between the United Sates and Canada but referred to planned investments by four Japanese companies in two U.S. shale gas projects - Cameron in Louisiana and Cove Point in Maryland.
The wash of domestic shale gas hitting U.S. markets has sent gas prices plummeting, and buyers across the world have lined up to buy cheap American fuel. But concerns that the fledgling movement to export LNG could drive up U.S. prices have drawn opposition from consumer groups.
Tokyo has been negotiating with Washington since last year to allow more shale gas projects to export LNG to countries other than those that have free trade agreements with the United States, hoping to receive LNG via the Panama canal.
Clarksons LNG News Update 27th June 2012
1. NOVATEK TO PRE-SELL YAMAL LNG GAS NEXT YEAR CEO
Russia's Novatek, due to launch Russia's next liquefied natural gas project in partnership with Total in 2016, will pre-sell half the gas by the end of next year, its chief executive, Leonid Mikhelson, told reporters.
"After we take a final investment decision and before we begin project financing, we plan to sign contracts with consumers and will contract out about 50 percent of the Yamal LNG project (gas). Signing contracts will open up project financing for us."
A final investment decision is due by the end of the year, he told reporters on Friday at the Russian government's answer to Davos, the St Petersburg International Economic Forum. The remarks were embargoed for publication on Tuesday.
He said Novatek had chosen French bank Societe Generale and Russian banks Gazprombank and Sberbank to organise project financing for the $20 billion LNG project.
Yamal LNG will start producing 5 million tonnes per year of LNG in 2016, with a peak of 15 million tonnes.
Gazprom, Russia's gas export monopoly, will formally handle export of Yamal LNG volumes, clearing them with customs, but arrangements for final marketing to end-users remain unclear.
Russia currently has only one LNG production complex, the 10 million tonne per year Sakhalin-2 plant on the Pacific island of the same name, which stepped into the breach last year to supply additional volumes to Japan after the Fukushima disaster.
Royal Dutch Shell, partner of Gazprom in Sakhalin-2, is lobbying heavily for expansion of the plant, arguing competitive pressures in Asia mean the partners should seize their chance now.
Analysts say Yamal LNG, which will deliver the super-cooled blue fuel to market via Russia's icebound northern seas in a fleet of bespoke ice-class LNG carriers, could have trouble competing on the Asian market.
But Mikhelson said current prices for LNG in Asia LNG-AS suggested the project could produce good returns.
"Our priority markets are the Asia Pacific region, Europe, and in theory it may be economically worthwhile to sell it to South America," Mikhelson said. "Of those, Asia Pacific is the most interesting.
"Current prices of $14-$15 per million British thermal units in Asia, even with large transportation costs, are profitable," he added "I understand there will be competition from Australian LNG projects which are closer to these markets. But given the cost of Australian gas, Yamal LNG is competitive."
Reuters 26/06/2012
2. CHINA’S CNPC WINS APPROVAL FOR LNG STORAGE IN HAINAN
Top Chinese oil and gas producer China National Petroleum Corp (CNPC) has won approval for a liquefied natural gas (LNG) storage project on Hainan island, a report said.
The 850 million yuan ($133.6 million) Shennan LNG storage project consists of 200,000 cubic metres of LNG storage tanks and a wharf with a receiving capacity of 10,000-20,000 cubic metres on LNG ships, the China Energy News reported on Monday.
The first phase of the project, with a storage capacity of 40,000 cubic metres, is expected to be put into operation in May 2013, it said.
The storage tanks will be used to receive LNG from CNPC's two operating terminals in Rudong and Dalian as well as planned terminals in Tangshan and Shenzhen.
CNPC, which operates its gas business via PetroChina and Kunlun Energy, last year started up its two LNG receiving terminals in Rudong and Dalian, with total annual capacity of 6.5 million tonnes.
CNPC has said it plans to step up LNG sales in the coming years, in line with a government push for cleaner energy.
It plans to sell 11.5 billion cubic metres or around 9 million tonnes of LNG to domestic users by the end of 2015 and aims to promote the use of LNG in at least 200,000 vehicles by the end of 2015.
Another major LNG project in Hainan is held by CNOOC Group, top Chinese liquefied natural gas receiving terminal developer. The company started to construct a 2.0 million tonne-per-year LNG terminal in the southern island province in November 2011.
Reuters 26/06/2012
3. BOSKALIS GETS 10-YEAR PAPUA NEW GUINEA LNG PACT
Dutch dredging company Royal Boskalis Westminster NV said Tuesday that its associated company Smit Lamnalco has been awarded a 10-year contract for providing terminal services at the Papua New Guinea liquefied natural gas terminal near Port Moresby.
MAIN FACTS:
-The total contract value is $120 million and Boskalis's share is $60 million. Services will commence mid-2014.
-The contract, which has additional extension options, is awarded by Esso Highland, a unit of Exxon Mobil Corp.
-The PNG LNG export terminal is part of a larger integrated LNG production, processing and liquefaction project which started following the discovery of three major gas field in Papua New Guinea. Both the offshore and onshore infrastructure is currently under construction and expected to be operational in 2014. Smit Lamnalco will provide towage and marine support services for LNG vessels at the terminal for which it will invest in 4 new 65 ton bollard pull tugboats.
Market Watch 26/06/2012
4. KBR SELECTED TO EXECUTE TWO FLNG STUDIES FOR HOEGH LNG
KBR announced today that it was selected as Hoegh's preferred engineer to execute pre-FEED studies for two of its projects off the coast of Israel and offshore Australia.
KBR will provide the pre-FEED study for the King liquefied natural gas-floating production storage and offloading (LNG-FPSO) facility currently being evaluated for Noble Energy's giant Tamar gas field off the coast of Israel. KBR has developed FPSOs that are in use worldwide and is recognized as one of the world's leading providers of onshore LNG plants and FPSOs.
Hoegh LNG awarded KBR a second FLNG pre-FEED study for an unnamed project offshore Australia. The four-month pre-FEED is intended to provide a Total Installed Cost (TIC) estimate for a two mtpa FLNG facility to enable further evaluation of the project. KBR will perform a cost estimate study, taking Hoegh's existing generic LNG FPSO FEED study and adapting the capex cost for the operator's field-specific basis of design. Should the project economics prove viable, FEED could start as early as 4Q 2012.
Both projects will be performed in KBR's London Operating Center, utilizing the company's substantial and growing FLNG engineering capability spread over the London, Houston and Perth offices.
"We are excited about providing the initial engineering work for an innovative LNG FPSO solution to support Hoegh LNG's already-developed concept," said Roy Oelking, KBR Group President, Hydrocarbons. "We are pleased to work with Hoegh LNG, Daewoo Shipbuilding & Marine Engineering Co., and the Tamar field owners in developing one of the first LNG FPSOs to come to market. KBR has been working with Hoegh LNG since 2010 and we are confident that, together, we will help Hoegh deliver the optimum solution for bringing Tamar gas to the market."
Market Watch 25/06/2012
5. SOVCOMFLOT CHARTERS TWO LNG TANKERS TO SHELL, RUSSIA
At the XVI St. Petersburg International Economic Forum Russia’s Sovcomflot, the world’s largest operator of ice class vessels, signed an agreement to provide Shell will the use of two modern LNG carriers on the basis of a long-term time charter.
The agreement was concluded following a tender process, which resulted in Shell International Trading and Shipping Company (STASCO) choosing SCF Sovcomflot’s gas-carriers for the transportation of its LNG by sea.
The vessels have been ordered at STX Offshore & Shipbuilding (South Korea) and will be built with the participation of JSC United Shipbuilding Corporation (JSC “USC”). The first tanker is due to be commissioned in late 2014 and the second vessel in early 2015. The involvement in the project of Russian shipbuilders will facilitate the establishment of the domestic production of sophisticated, higher value ships in Russia (e.g. at Novye Admiralteyskie verfi, Kotlin island) and will provide for the future specialised gas carrier needs of Russian oil & gas companies, for work on the continental shelf, in order to develop Arctic and Subarctic offshore fields. Shell will play an active role in the allocation of gas-carriers to serve Russian production, something which is covered by the agreement previously signed between Shell, SCF and USC during last year’s XV-th St. Petersburg International Forum. Today’s agreement between SCF and Shell also provides for a broadening in the range of domestic components and other equipment to be used in the construction process.
Lng World News 22/06/2012
6. QATAR PLANS POWER PLANT AT UK SOUTH HOOK LNG TERMINAL
Qatar Petroleum plans to build a 500 megawatt (MW) combined heat and power (CHP) plant at its South Hook liquefied natural gas import terminal in Wales, Europe's biggest, it said in preliminary submissions to the UK's National Infrastructure Planning authority.
"The proposed CHP plant will have an installed capacity of up to 500 MW and produce sufficient electricity to both meet the existing LNG terminal's power needs and to export surplus electricity," Qatar Petroleum and project partners ExxonMobil and Total said in an environmental impact assessment report to the planning authority.
It expects to make a submit a formal application in first-quarter 2013, the authority said.
The plan includes the option to eventually export surplus power into the National Grid transmission system via a plug-in point at Pembroke Power Station.
Britain depends on Qatar for nearly all of the UK's LNG supplies via the South Hook terminal.
Reuters 26/06/2012
7. HAMBURG WORKS ON LNF FEASABILITY
The Port of Hamburg has welcomed its first LNG ship, the Norwegian Coastguard's KV Barentshav, to mark the “LNG – the Norwegian Experience” conference organised by the German-Norwegian Chamber of Commerce, Innovation Norway and the classification society DNV Germany.
The visit marks the port's commitment to forging ahead with LNG infrastructure in the future.
KV Barentshav belongs to the Norwegian Coastguard fleet and is deployed for fishery control, sea rescue, policing customs inspections and environmental checks within Norwegian territorial waters.
The vessel is interesting because it has an environmentally friendly motor. Propulsion of the vessel is through a propeller, driven mechanically either via the main engine or a gas-fuelled electric motor. Two engine-rooms and tanks are available for this, one for diesel propulsion and one for gas operation using LNG. The four gas-fuelled engines producing power for the electric motor start and stop automatically, depending on the power requirement. The diesel engine only comes into use for towing assignments and special runs at high speeds of up to 20 knots.
The Hamburg Port Authority (HPA) and Linde Group want to promote the use of LNG and are at present compiling a feasibility study on the commercial use of LNG in Hamburg. The findings of this research could be used for making a start on concrete infrastructure projects such as an LNG bunkering facility.
“The Port of Hamburg should be a leader for environmental friendliness and efficiency. In future, propulsion systems using liquefied natural gas should be playing a part here. With worldwide cooperation we now need to create the standards and the foundations for the essential infrastructure. The Port of Hamburg performs an immensely important role as a feeder port for the Baltic and consequently we are working on the essential preliminaries for the LNG infrastructure needed in Hamburg. We are also looking into equipping newbuildings for our own fleet with LNG technology,” said HPA managing director, Jens Meier.
To this end and to further its knowledge in building and operating LNG-powered ships, the Port of Hamburg is working closely with experts from Norway. Norway has had gas powered ferries for over ten years and has the necessary infrastructure in place to refuel ships using LNG.
Maritime Journal 26/06/2012
8. GDF SUEZ DELIVERS FIRST LNG CARGO TO THAILAND AS PART OF ASIAN SUPPLY BUILD-UP
GDF-Suez, the European-based LNG player, has delivered its first cargo to PTT in Thailand as part of a deal to supply three cargoes during 2012 and as it builds up its Asia-Pacific customer base.
The cargo was delivered to the PTT Map Ta Phut LNG import terminal which has only been in operation for a year.
"These new LNG volumes will allow PTT to fulfil Thailand's growing natural gas needs as well as to secure a new energy source for the country," GDF-Suez said.
The Paris-based company said it considered Asia to be a core development region for its LNG business, with strong growth prospects and new supply potential.
The group has already concluded five short-term and medium-term agreements in the region.
From 2010 to 2016, GDF-Suez is planning to deliver a total of about 8.4 million tonnes to Korea Gas Corp., China national Offshore oil Corp., Malaysia's Petronas and now PTT.
Jean-Marie Dauger, Executive Vice President of GDF-Suez in charge of the Global Gas and LNG business, said: "The agreement with PTT confirmed our successful global strategy in LNG: to be a major LNG player in the Atlantic Basin as well as a reliable supplier in the Asia Pacific Basin.
"Our LNG portfolio is permanently optimized and allows us to develop new markets," said Dauger.
GDF-Suez receives LNG supplies from six countries and amounting to 16.5 MTPA.
It also operates a fleet of 17 LNG carriers and has a significant presence in regasification terminals around the world.
Additionally, it is developing the Bonaparte Floating LNG project offshore northwest Australia to produce 2 MTPA for the Asian market.
Lng Journal 27/06/2012
9. UFG OF SPAIN NAMES NEW MANAGING DIRECTOR
UFG of Spain, a specialist gas company operating in international LNG markets, said it has appointed Cesare Cuniberto as managing director.
Cesare Cuniberto previously occupied the post of Chairman and Managing Director of Tigáz, the largest gas distribution and marketing company in Hungary, and which pertains to the Italian multinational energy group Eni.
Cesare Cuniberto replaces Alessandro Della Zoppa who now returns to Italy to take up a new professional challenge in the Eni group.
Della Zoppa will maintain his position as a member of the Board and Executive Committee of UFG.
Lng World 27/06/2012
10. PASCAGOULA’S LNG IMPORTING FACILITY COULD SEE EXPORTS AS WELL
GE Energy Financial Services' co-owned Gulf LNG Energy regasification and liquefied natural gas storage facility in Pascagoula has received approval from the U.S. Department of Energy to export liquefied natural gas.
The $1.1-billion facility, which began operations in October, received two shipments of LNG -- natural gas super-chilled for transport by ship -- prior to its ribbon cutting, but hasn't received any since.
Gulf LNG Energy spokesman Bill Baerg said that the price of the natural gas is lower in the United States than in other parts of the world, so producers of LNG can receive more for their cargoes elsewhere.
The Gulf LNG facility is contracted under 20-year firm service agreements for all of its capacity with a group of LNG producers, including several major oil and gas companies, to support the facility and provide a source of LNG. The companies pay a monthly fee for storage and access to the facilities, similar to renting space in an office building.
"The amount of ship traffic and how often the ships visit the terminal is really up to our customers," he said. "From our standpoint, that terminal is fully available for their use when they want to call on it."
Due to this shift in global markets, Baerg said Gulf LNG is now seeking to export LNG and earlier this month received federal approval to export LNG to free trade agreement countries if it can put together a deal that is commercially viable.
He said the company will eventually ask for the ability to export to non-free trade countries.
Gulf LNG also has a terminal in Savannah, Georgia, that is taking similar steps.
"If we are successful in developing a project with customers to export LNG, we would need to develop facilities at the terminal which would allow us to take natural gas, liquefy it and then export it," he said. "But the first step is to receive the approval to do such."
Baerg said the company is pursuing projects for export facilities but nothing has been contracted at this point and the process is in the very early stages. Though Gulf LNG is looking at export as an option, Baerg said he's confident that the United States can be an attractive market for LNG imports as global markets change in the years to come.
The Gulf LNG terminal, operated by a subsidiary of El Paso Corporation, is located adjacent to the Bayou Casotte Ship Channel in the Port of Pascagoula on the Gulf Coast. It receives, stores and reheats imported LNG. The terminal consists of two 160,000 cubic meter storage tanks with a combined capacity of 6.6 billion cubic feet.
GE Energy Financial Services has experience in many midstream sectors and unconventional gas. Its $2.4 billion midstream equity and debt investment portfolio consists of stakes in a midstream master limited partnership, gas storage assets, 40,000 miles of gas pipelines and its stake in the Gulf LNG regasification terminal. GE Energy Financial Services, directly and indirectly, controls its 50 percent stake in Gulf LNG while El Paso controls the other 50 percent, and through a subsidiary, is the operator.
Clarksons LNG News Update 3rd July 2012
1. JAPAN NUCLEAR RESTART WORRIES LNG SHIPPING
Restart is small, but concerns exist in the LNG industry that more are to come
JAPAN has restarted one of its nuclear reactors, with the LNG shipping industry maintaining a close eye on whether the restart spells a complete return to nuclear and a consequent cap on Japan’s LNG consumption growth.
Analysts say the restart of Kansai’s reactor this weekend and another in July will have minimal impact on LNG shipping, only cutting out one vessel’s worth of imports into Japan.
However, at the Informa LNG Global Congress last week, LNG industry commentators expressed concerns that Japan could eventually opt for nuclear over expensive LNG imports. The restart of Kansai’s reactor could be the beginning of Japan’s nuclear plants coming back into business, they said.
It is uncertain whether nuclear will make a full return, but support for more nuclear energy is gradually building, with Japan’s prime minister urging the country to get behind this weekend’s restart of Kansai’s reactor.
A full return to nuclear, which made up nearly 30% of Japan’s energy mix before the Fukushima disaster, would reduce the need for extra LNG imports on vessels.
China, India and southeast Asia could provide the demand growth for cargoes, but there are concerns that these regions will not want to pay current high prices for LNG.
This would jeopardise future investments in projects, given that they rely heavily on importers willing to pay high prices, industry analysts say.
Japan’s nuclear restart comes after the country shut its remaining operating reactors in May for maintenance. Other reactors had been offline following the Fukushima disaster last year.
Lloyd’s list 02/07/2012
2. US LAWMAKERS PRESS DOE TO SPEED LNG EXPORT REVIEW
U.S. lawmakers representing states rich in shale gas called for the Obama administration to expedite approval of liquefied natural gas exports on Friday, mounting the first real push in support of gas exports on Capitol Hill.
A bipartisan coalition of 21 lawmakers in the House of Representatives said the Obama administration needs to moveforward with its review of companies looking to export LNG.
"We urge you to bring a renewed sense of urgency to the approval process," the group said in a letter to Energy Secretary Steven Chu.
Until now, lawmakers have mostly stayed on the sidelines regarding the issue of selling gas abroad, a prospect that has come to the forefront due to the booming U.S. natural gas sector, but potentially pits manufacturers against the oil and gas industry.
The few lawmakers that had been vocal about exports, including Congressman Edward Markey and Senator Ron Wyden, raised concerns that the United States might be at risk of trading away its newfound energy security advantage and raising prices for consumers.
Reuters 29/06/2012
3. ANGOLA LNG SHIP SEEK SPOT CARGOES FROM NORWAY AND NIGERIA
Two vessels will achieve high rates as tonnage availability is tight.
TWO liquefied natural gas carriers assigned to ship Angola’s LNG have started to sail away from Angola to seek cargoes elsewhere and are likely to benefit from rising rates in the emerging spot market.
The 2011-built, 160, 276 cu m Soyo and Malanje, both owned by Japan’s NYK group, have left the coast of Angola and are ballasting to Norway and Nigeria respectively, Lloyd’s List Intelligence reported today.
The vessels will be able to pick up cargoes from LNG plants in Norway and Nigeria and ship them on the spot market, benefiting from present high rates, said Lloyd’s List Intelligence analysts.
The situation highlights how LNG carriers can benefit from delayed export projects such as those in Angola.
Rather than remain inactive for long periods, carriers can ship cargoes on the nascent LNG shipping spot market where brokers report rates currently as high as $148,000 per day for voyages to Asia.
It is not known what rate the two NYK vessels will have achieved.
Present spot and short-term rates have improved since earlier this year, when they dropped to around $105,000 per day as more vessels were available for employment. The market has since tightened, with few ships available to charterers, and this has driven a rate rise.
LNG shipping does not have a developed spot market similar to those serving the tanker and dry-bulk industries but as specialist fleet and LNG demand grows, a spot market appears to be emerging tentatively.
However, there are still calls for the industry to improve flexibility and move away from long-term contracts where ships do not deviate from assigned routes.
Since being delivered from Samsung Shipbuilding & Heavy Industries in South Korea last year, Soyo and Malanje have each carried three shipments from Nigeria to Asia, including South Korea, Japan and China, according to Lloyd’s List Intelligence movement data.
Lloyd’s list 02/07/2012
4. TWO NEW LNG CARRIERS ORDERED BY MOL
Mitsui OSK Lines has ordered two new LNG carriers, one each from Kawasaki Heavy Industries and Mitsubishi Heavy Industries, both with steam turbine propulsion and independent spherical Moss-type tanks.
The first vessel is of 164,700m³ capacity, scheduled for delivery in 2016, and based on a new design from Kawasaki Heavy Industries, built to suit the expanded Panama Canal dimensions, while maintaining a hull size allowing it to call at major LNG terminals worldwide.
The second ship is to MHI’s ‘Sayaendo’ design, of 155,300m³ tank capacity. It will feature a continuous cover over its four Moss-type spherical tanks. The cover is integrated with the ship’s hull, achieving weight reduction for increased fuel efficiency, while maintaining overall hull rigidity. Delivery is scheduled for 2017.
Both vessels will be chartered to the Kansai Electric Power, and will adopt a new steam turbine engine that reuses steam for heating. An advanced heat insulation system is said to offerthe lowest LNG vaporisation rate – 0.08% – of any LNG carrier, and to effectively control surplus boil-off gas.
The Motorship 02/07/2012
5. ORIGIN’S LNG PROJECT INKS SUPPLY DEAL
Origin Energy's Australia Pacific LNG joint venture has finalised a 20-year supply contract with a Japanese power company.
Australia Pacific LNG (APLNG) will supply about one million tonnes of LNG to Kansai Electric Power Company over 20 years under an agreement reached on Friday, Origin said.
Kansai and APLNG signed a heads of agreement for supply of gas in November 2011.
APLNG consists of coal seam gas (CSG) fields in Queensland's Surat and Bowen basins, and a pipeline to an LNG plant on Curtis Island off the coast of Gladstone.
First production of gas is expected in 2015, and the Kansai supply agreement would start in 2016.
The project is owned by Origin, US giant ConocoPhillips and China Petrochemical Corp (Sinopec).
9News 29/06/2012
6. CHIYODA AWARDED EPC CONTRACT FOR HITACHI LNG TERMINAL
Chiyoda Corporation, Japan's laeding engineering and construction firm, today announced that Chiyoda has been awarded on EPC contract by Tokyo Gas Engineering Co. Lt. for Hitachi LNG Terminal in lbaraki port, Hitachi district. Site Work will start in FY 2013 and operation will start in FY 2015.
CSW 02/07/2012
7. CHINA YARD REPAIRS LNG CARRIER
The Jiangsu Xinrong Shipyard in China said the 125,468 cubic metres capacity LNG carrier "Koto", belonging to BW Fleet Management, has berthed at the yard for repairs. "The carrier 'Koto' was involved in an incident in Malaysian waters two years ago, which caused the engine room to be flooded and power to be lost," the yard said. "We negotiated with the Marine Board and interested parties to take the vessel from the Yangtze River to the yard for a check and evaluation before repairs," it added.
LNG Journal 02/07/2012
8. FRENCH LNG IMPORT THREAT
The new socialist French government may decide in the next few days to freeze natural gas prices, thus affecting LNG imports. Finance Minister Pierre Moscovici was considering blocking a 5 percent price increase requested by the nation's main LNG importer GDF-Suez. A price freeze would lead to French LNG re-exports and more cargo diversions.
LNG Journal 02/07/2012
9. TOKYO GAS RECEIVES FIRST CARGO FROM AUSTRALIA’S PLUTO PROJECT
Tokyo Gas received its first cargo Friday from Australia’s Pluto project, at its Sodegaura import terminal in Tokyo Bay, the largest Japanese gas utility said. Tokyo Gas received about 78,000 mt of LNG (equivalent to 3.6 Bcf of gas) on its Energy Horizon, the company said. Tokyo Gas is one of Pluto’s foundation customers and holds a 5% equity stake in the project. The utility has a 15-year long-term contract to buy between 1.5 million mt/yr (equivalent to 192,000 Mcf/d of gas) and 1.75 million mt/yr of LNG from Pluto. The Pluto gas field was discovered in the Carnarvon Basin, about 190 km (118 miles) northwest of Karratha, in 2005.
Platts 2/07/2012
10. ELEVEN COMPANIES BID FOR EXPLORATION RIGHTS OFFSHORE GREECE: MINISTRY
Eleven companies have bid for hydrocarbon exploration rights in three blocks offshore western Greece, the country’s environment and energy ministry said Monday. Two companies submitted individual bids, while the rest formed four consortiums, the ministry said. It did not say when winners would be announced. Bids for the Ioannina block off northwestern Greece were submitted by a consortium formed by Hellenic Petroleum, Italy’s Edison and UK-listed oil and gas exploration company Melrose Resources; a consortium formed by Greece’s Energean Oil and Gas, Canada-based Petra Petroleum and US-listed Schlumberger; Canada’s Arctic Hunter Energy and K.O. Enterprises in a joint bid; and Africa-focused Chariot Oil and Gas in an individual bid. A consortium formed by Energean Oil and Gas, the UK’s Trajan Oil and Gas, and Schlumberger bid for the Gulf of Patras block off the northwestern Peloponnese, as a did the Hellenic Petroleum, Edison and Melrose Resources consortium. Bids for the Katakolo block off the western Peloponnese were made by the Energean, Trajan and Schlumberger consortium, while an individual bid was made by Grekoil Energy Ventures. The ministry statement described the response to the bidding competition as “exceptionally successful, despite [Greece’s] bleak financial environment and scaremongering of recent times.”
Platts 02/07/2012
11. STX OFFSHORE TO COLLABORATE WITH KOGAS TO DEVELOP LNG KNOW-HOW
Companies will co-design engineering and maintenance technologies
STX Offshore & Shipbuilding has inked a memorandum of understanding with Korea Gas Technology Corp to co-develop liquefied natural gas expertise.
Under the agreement the companies will work together to produce new technologies in the LNG field, including engineering, reliquefaction and regasification, and maintenance technologies for LNG carriers. They . Both companies said the effort would diversify their product offerings.
STX on Thursday won an order from Greek shipowner Alpha to build a 160,000 cu m LNG carrier for $192.4m, with the option of a second one. STX has been pushing hard to consolidate its place as an LNG carrier builder.
KoGas Tech is an engineering arm of Korea Gas Corporation, the world’s largest LNG buyer.
Lloyd’s list Asia 29/06/2012
Natural Gas, and especially LNG is the name of the game in energy these days. I'll follow with just a small tip of the iceberg so you'll gain some insight into the business:
Japan expects to import 20% of LNG from N.America (keep in mind that we don't even have the ability to export that capacity yet)
TOKYO, June 27 | Wed Jun 27, 2012 8:27am EDT
(Reuters) - Japan expects to import 15 million tonnes of liquefied natural gas (LNG) from North America per year from as early as 2016 once the United States lifts restrictions on exports to the world's biggest LNG buyer.
A group of Japanese cabinet ministers on Wednesday cited the volume estimate, which amounts to about 20 percent of Japan's annual LNG imports, in a discussion on how to drive growth of the world's third-biggest economy after last year's Fukushima nuclear crisis, a government official said at a news conference.
A rise in the costs of importing more fuel to cover a drop in nuclear capacity since the Fukushima disaster helped drag Japan into its first trade deficit in three decades last year.
Tokyo now seeks ways to cap costs as it aims to rely less on nuclear power in the medium-to-long term.
Japan wants to tap cheaper natural gas in the United States and Canada if and when their facilities are ready to cool natural gas to a liquid for transport, and a few Japanese companies have made preliminary agreements to invest in such projects.
Wednesday's estimate did not include a breakdown between the United Sates and Canada but referred to planned investments by four Japanese companies in two U.S. shale gas projects - Cameron in Louisiana and Cove Point in Maryland.
The wash of domestic shale gas hitting U.S. markets has sent gas prices plummeting, and buyers across the world have lined up to buy cheap American fuel. But concerns that the fledgling movement to export LNG could drive up U.S. prices have drawn opposition from consumer groups.
Tokyo has been negotiating with Washington since last year to allow more shale gas projects to export LNG to countries other than those that have free trade agreements with the United States, hoping to receive LNG via the Panama canal.
Clarksons LNG News Update 27th June 2012
1. NOVATEK TO PRE-SELL YAMAL LNG GAS NEXT YEAR CEO
Russia's Novatek, due to launch Russia's next liquefied natural gas project in partnership with Total in 2016, will pre-sell half the gas by the end of next year, its chief executive, Leonid Mikhelson, told reporters.
"After we take a final investment decision and before we begin project financing, we plan to sign contracts with consumers and will contract out about 50 percent of the Yamal LNG project (gas). Signing contracts will open up project financing for us."
A final investment decision is due by the end of the year, he told reporters on Friday at the Russian government's answer to Davos, the St Petersburg International Economic Forum. The remarks were embargoed for publication on Tuesday.
He said Novatek had chosen French bank Societe Generale and Russian banks Gazprombank and Sberbank to organise project financing for the $20 billion LNG project.
Yamal LNG will start producing 5 million tonnes per year of LNG in 2016, with a peak of 15 million tonnes.
Gazprom, Russia's gas export monopoly, will formally handle export of Yamal LNG volumes, clearing them with customs, but arrangements for final marketing to end-users remain unclear.
Russia currently has only one LNG production complex, the 10 million tonne per year Sakhalin-2 plant on the Pacific island of the same name, which stepped into the breach last year to supply additional volumes to Japan after the Fukushima disaster.
Royal Dutch Shell, partner of Gazprom in Sakhalin-2, is lobbying heavily for expansion of the plant, arguing competitive pressures in Asia mean the partners should seize their chance now.
Analysts say Yamal LNG, which will deliver the super-cooled blue fuel to market via Russia's icebound northern seas in a fleet of bespoke ice-class LNG carriers, could have trouble competing on the Asian market.
But Mikhelson said current prices for LNG in Asia LNG-AS suggested the project could produce good returns.
"Our priority markets are the Asia Pacific region, Europe, and in theory it may be economically worthwhile to sell it to South America," Mikhelson said. "Of those, Asia Pacific is the most interesting.
"Current prices of $14-$15 per million British thermal units in Asia, even with large transportation costs, are profitable," he added "I understand there will be competition from Australian LNG projects which are closer to these markets. But given the cost of Australian gas, Yamal LNG is competitive."
Reuters 26/06/2012
2. CHINA’S CNPC WINS APPROVAL FOR LNG STORAGE IN HAINAN
Top Chinese oil and gas producer China National Petroleum Corp (CNPC) has won approval for a liquefied natural gas (LNG) storage project on Hainan island, a report said.
The 850 million yuan ($133.6 million) Shennan LNG storage project consists of 200,000 cubic metres of LNG storage tanks and a wharf with a receiving capacity of 10,000-20,000 cubic metres on LNG ships, the China Energy News reported on Monday.
The first phase of the project, with a storage capacity of 40,000 cubic metres, is expected to be put into operation in May 2013, it said.
The storage tanks will be used to receive LNG from CNPC's two operating terminals in Rudong and Dalian as well as planned terminals in Tangshan and Shenzhen.
CNPC, which operates its gas business via PetroChina and Kunlun Energy, last year started up its two LNG receiving terminals in Rudong and Dalian, with total annual capacity of 6.5 million tonnes.
CNPC has said it plans to step up LNG sales in the coming years, in line with a government push for cleaner energy.
It plans to sell 11.5 billion cubic metres or around 9 million tonnes of LNG to domestic users by the end of 2015 and aims to promote the use of LNG in at least 200,000 vehicles by the end of 2015.
Another major LNG project in Hainan is held by CNOOC Group, top Chinese liquefied natural gas receiving terminal developer. The company started to construct a 2.0 million tonne-per-year LNG terminal in the southern island province in November 2011.
Reuters 26/06/2012
3. BOSKALIS GETS 10-YEAR PAPUA NEW GUINEA LNG PACT
Dutch dredging company Royal Boskalis Westminster NV said Tuesday that its associated company Smit Lamnalco has been awarded a 10-year contract for providing terminal services at the Papua New Guinea liquefied natural gas terminal near Port Moresby.
MAIN FACTS:
-The total contract value is $120 million and Boskalis's share is $60 million. Services will commence mid-2014.
-The contract, which has additional extension options, is awarded by Esso Highland, a unit of Exxon Mobil Corp.
-The PNG LNG export terminal is part of a larger integrated LNG production, processing and liquefaction project which started following the discovery of three major gas field in Papua New Guinea. Both the offshore and onshore infrastructure is currently under construction and expected to be operational in 2014. Smit Lamnalco will provide towage and marine support services for LNG vessels at the terminal for which it will invest in 4 new 65 ton bollard pull tugboats.
Market Watch 26/06/2012
4. KBR SELECTED TO EXECUTE TWO FLNG STUDIES FOR HOEGH LNG
KBR announced today that it was selected as Hoegh's preferred engineer to execute pre-FEED studies for two of its projects off the coast of Israel and offshore Australia.
KBR will provide the pre-FEED study for the King liquefied natural gas-floating production storage and offloading (LNG-FPSO) facility currently being evaluated for Noble Energy's giant Tamar gas field off the coast of Israel. KBR has developed FPSOs that are in use worldwide and is recognized as one of the world's leading providers of onshore LNG plants and FPSOs.
Hoegh LNG awarded KBR a second FLNG pre-FEED study for an unnamed project offshore Australia. The four-month pre-FEED is intended to provide a Total Installed Cost (TIC) estimate for a two mtpa FLNG facility to enable further evaluation of the project. KBR will perform a cost estimate study, taking Hoegh's existing generic LNG FPSO FEED study and adapting the capex cost for the operator's field-specific basis of design. Should the project economics prove viable, FEED could start as early as 4Q 2012.
Both projects will be performed in KBR's London Operating Center, utilizing the company's substantial and growing FLNG engineering capability spread over the London, Houston and Perth offices.
"We are excited about providing the initial engineering work for an innovative LNG FPSO solution to support Hoegh LNG's already-developed concept," said Roy Oelking, KBR Group President, Hydrocarbons. "We are pleased to work with Hoegh LNG, Daewoo Shipbuilding & Marine Engineering Co., and the Tamar field owners in developing one of the first LNG FPSOs to come to market. KBR has been working with Hoegh LNG since 2010 and we are confident that, together, we will help Hoegh deliver the optimum solution for bringing Tamar gas to the market."
Market Watch 25/06/2012
5. SOVCOMFLOT CHARTERS TWO LNG TANKERS TO SHELL, RUSSIA
At the XVI St. Petersburg International Economic Forum Russia’s Sovcomflot, the world’s largest operator of ice class vessels, signed an agreement to provide Shell will the use of two modern LNG carriers on the basis of a long-term time charter.
The agreement was concluded following a tender process, which resulted in Shell International Trading and Shipping Company (STASCO) choosing SCF Sovcomflot’s gas-carriers for the transportation of its LNG by sea.
The vessels have been ordered at STX Offshore & Shipbuilding (South Korea) and will be built with the participation of JSC United Shipbuilding Corporation (JSC “USC”). The first tanker is due to be commissioned in late 2014 and the second vessel in early 2015. The involvement in the project of Russian shipbuilders will facilitate the establishment of the domestic production of sophisticated, higher value ships in Russia (e.g. at Novye Admiralteyskie verfi, Kotlin island) and will provide for the future specialised gas carrier needs of Russian oil & gas companies, for work on the continental shelf, in order to develop Arctic and Subarctic offshore fields. Shell will play an active role in the allocation of gas-carriers to serve Russian production, something which is covered by the agreement previously signed between Shell, SCF and USC during last year’s XV-th St. Petersburg International Forum. Today’s agreement between SCF and Shell also provides for a broadening in the range of domestic components and other equipment to be used in the construction process.
Lng World News 22/06/2012
6. QATAR PLANS POWER PLANT AT UK SOUTH HOOK LNG TERMINAL
Qatar Petroleum plans to build a 500 megawatt (MW) combined heat and power (CHP) plant at its South Hook liquefied natural gas import terminal in Wales, Europe's biggest, it said in preliminary submissions to the UK's National Infrastructure Planning authority.
"The proposed CHP plant will have an installed capacity of up to 500 MW and produce sufficient electricity to both meet the existing LNG terminal's power needs and to export surplus electricity," Qatar Petroleum and project partners ExxonMobil and Total said in an environmental impact assessment report to the planning authority.
It expects to make a submit a formal application in first-quarter 2013, the authority said.
The plan includes the option to eventually export surplus power into the National Grid transmission system via a plug-in point at Pembroke Power Station.
Britain depends on Qatar for nearly all of the UK's LNG supplies via the South Hook terminal.
Reuters 26/06/2012
7. HAMBURG WORKS ON LNF FEASABILITY
The Port of Hamburg has welcomed its first LNG ship, the Norwegian Coastguard's KV Barentshav, to mark the “LNG – the Norwegian Experience” conference organised by the German-Norwegian Chamber of Commerce, Innovation Norway and the classification society DNV Germany.
The visit marks the port's commitment to forging ahead with LNG infrastructure in the future.
KV Barentshav belongs to the Norwegian Coastguard fleet and is deployed for fishery control, sea rescue, policing customs inspections and environmental checks within Norwegian territorial waters.
The vessel is interesting because it has an environmentally friendly motor. Propulsion of the vessel is through a propeller, driven mechanically either via the main engine or a gas-fuelled electric motor. Two engine-rooms and tanks are available for this, one for diesel propulsion and one for gas operation using LNG. The four gas-fuelled engines producing power for the electric motor start and stop automatically, depending on the power requirement. The diesel engine only comes into use for towing assignments and special runs at high speeds of up to 20 knots.
The Hamburg Port Authority (HPA) and Linde Group want to promote the use of LNG and are at present compiling a feasibility study on the commercial use of LNG in Hamburg. The findings of this research could be used for making a start on concrete infrastructure projects such as an LNG bunkering facility.
“The Port of Hamburg should be a leader for environmental friendliness and efficiency. In future, propulsion systems using liquefied natural gas should be playing a part here. With worldwide cooperation we now need to create the standards and the foundations for the essential infrastructure. The Port of Hamburg performs an immensely important role as a feeder port for the Baltic and consequently we are working on the essential preliminaries for the LNG infrastructure needed in Hamburg. We are also looking into equipping newbuildings for our own fleet with LNG technology,” said HPA managing director, Jens Meier.
To this end and to further its knowledge in building and operating LNG-powered ships, the Port of Hamburg is working closely with experts from Norway. Norway has had gas powered ferries for over ten years and has the necessary infrastructure in place to refuel ships using LNG.
Maritime Journal 26/06/2012
8. GDF SUEZ DELIVERS FIRST LNG CARGO TO THAILAND AS PART OF ASIAN SUPPLY BUILD-UP
GDF-Suez, the European-based LNG player, has delivered its first cargo to PTT in Thailand as part of a deal to supply three cargoes during 2012 and as it builds up its Asia-Pacific customer base.
The cargo was delivered to the PTT Map Ta Phut LNG import terminal which has only been in operation for a year.
"These new LNG volumes will allow PTT to fulfil Thailand's growing natural gas needs as well as to secure a new energy source for the country," GDF-Suez said.
The Paris-based company said it considered Asia to be a core development region for its LNG business, with strong growth prospects and new supply potential.
The group has already concluded five short-term and medium-term agreements in the region.
From 2010 to 2016, GDF-Suez is planning to deliver a total of about 8.4 million tonnes to Korea Gas Corp., China national Offshore oil Corp., Malaysia's Petronas and now PTT.
Jean-Marie Dauger, Executive Vice President of GDF-Suez in charge of the Global Gas and LNG business, said: "The agreement with PTT confirmed our successful global strategy in LNG: to be a major LNG player in the Atlantic Basin as well as a reliable supplier in the Asia Pacific Basin.
"Our LNG portfolio is permanently optimized and allows us to develop new markets," said Dauger.
GDF-Suez receives LNG supplies from six countries and amounting to 16.5 MTPA.
It also operates a fleet of 17 LNG carriers and has a significant presence in regasification terminals around the world.
Additionally, it is developing the Bonaparte Floating LNG project offshore northwest Australia to produce 2 MTPA for the Asian market.
Lng Journal 27/06/2012
9. UFG OF SPAIN NAMES NEW MANAGING DIRECTOR
UFG of Spain, a specialist gas company operating in international LNG markets, said it has appointed Cesare Cuniberto as managing director.
Cesare Cuniberto previously occupied the post of Chairman and Managing Director of Tigáz, the largest gas distribution and marketing company in Hungary, and which pertains to the Italian multinational energy group Eni.
Cesare Cuniberto replaces Alessandro Della Zoppa who now returns to Italy to take up a new professional challenge in the Eni group.
Della Zoppa will maintain his position as a member of the Board and Executive Committee of UFG.
Lng World 27/06/2012
10. PASCAGOULA’S LNG IMPORTING FACILITY COULD SEE EXPORTS AS WELL
GE Energy Financial Services' co-owned Gulf LNG Energy regasification and liquefied natural gas storage facility in Pascagoula has received approval from the U.S. Department of Energy to export liquefied natural gas.
The $1.1-billion facility, which began operations in October, received two shipments of LNG -- natural gas super-chilled for transport by ship -- prior to its ribbon cutting, but hasn't received any since.
Gulf LNG Energy spokesman Bill Baerg said that the price of the natural gas is lower in the United States than in other parts of the world, so producers of LNG can receive more for their cargoes elsewhere.
The Gulf LNG facility is contracted under 20-year firm service agreements for all of its capacity with a group of LNG producers, including several major oil and gas companies, to support the facility and provide a source of LNG. The companies pay a monthly fee for storage and access to the facilities, similar to renting space in an office building.
"The amount of ship traffic and how often the ships visit the terminal is really up to our customers," he said. "From our standpoint, that terminal is fully available for their use when they want to call on it."
Due to this shift in global markets, Baerg said Gulf LNG is now seeking to export LNG and earlier this month received federal approval to export LNG to free trade agreement countries if it can put together a deal that is commercially viable.
He said the company will eventually ask for the ability to export to non-free trade countries.
Gulf LNG also has a terminal in Savannah, Georgia, that is taking similar steps.
"If we are successful in developing a project with customers to export LNG, we would need to develop facilities at the terminal which would allow us to take natural gas, liquefy it and then export it," he said. "But the first step is to receive the approval to do such."
Baerg said the company is pursuing projects for export facilities but nothing has been contracted at this point and the process is in the very early stages. Though Gulf LNG is looking at export as an option, Baerg said he's confident that the United States can be an attractive market for LNG imports as global markets change in the years to come.
The Gulf LNG terminal, operated by a subsidiary of El Paso Corporation, is located adjacent to the Bayou Casotte Ship Channel in the Port of Pascagoula on the Gulf Coast. It receives, stores and reheats imported LNG. The terminal consists of two 160,000 cubic meter storage tanks with a combined capacity of 6.6 billion cubic feet.
GE Energy Financial Services has experience in many midstream sectors and unconventional gas. Its $2.4 billion midstream equity and debt investment portfolio consists of stakes in a midstream master limited partnership, gas storage assets, 40,000 miles of gas pipelines and its stake in the Gulf LNG regasification terminal. GE Energy Financial Services, directly and indirectly, controls its 50 percent stake in Gulf LNG while El Paso controls the other 50 percent, and through a subsidiary, is the operator.
Clarksons LNG News Update 3rd July 2012
1. JAPAN NUCLEAR RESTART WORRIES LNG SHIPPING
Restart is small, but concerns exist in the LNG industry that more are to come
JAPAN has restarted one of its nuclear reactors, with the LNG shipping industry maintaining a close eye on whether the restart spells a complete return to nuclear and a consequent cap on Japan’s LNG consumption growth.
Analysts say the restart of Kansai’s reactor this weekend and another in July will have minimal impact on LNG shipping, only cutting out one vessel’s worth of imports into Japan.
However, at the Informa LNG Global Congress last week, LNG industry commentators expressed concerns that Japan could eventually opt for nuclear over expensive LNG imports. The restart of Kansai’s reactor could be the beginning of Japan’s nuclear plants coming back into business, they said.
It is uncertain whether nuclear will make a full return, but support for more nuclear energy is gradually building, with Japan’s prime minister urging the country to get behind this weekend’s restart of Kansai’s reactor.
A full return to nuclear, which made up nearly 30% of Japan’s energy mix before the Fukushima disaster, would reduce the need for extra LNG imports on vessels.
China, India and southeast Asia could provide the demand growth for cargoes, but there are concerns that these regions will not want to pay current high prices for LNG.
This would jeopardise future investments in projects, given that they rely heavily on importers willing to pay high prices, industry analysts say.
Japan’s nuclear restart comes after the country shut its remaining operating reactors in May for maintenance. Other reactors had been offline following the Fukushima disaster last year.
Lloyd’s list 02/07/2012
2. US LAWMAKERS PRESS DOE TO SPEED LNG EXPORT REVIEW
U.S. lawmakers representing states rich in shale gas called for the Obama administration to expedite approval of liquefied natural gas exports on Friday, mounting the first real push in support of gas exports on Capitol Hill.
A bipartisan coalition of 21 lawmakers in the House of Representatives said the Obama administration needs to moveforward with its review of companies looking to export LNG.
"We urge you to bring a renewed sense of urgency to the approval process," the group said in a letter to Energy Secretary Steven Chu.
Until now, lawmakers have mostly stayed on the sidelines regarding the issue of selling gas abroad, a prospect that has come to the forefront due to the booming U.S. natural gas sector, but potentially pits manufacturers against the oil and gas industry.
The few lawmakers that had been vocal about exports, including Congressman Edward Markey and Senator Ron Wyden, raised concerns that the United States might be at risk of trading away its newfound energy security advantage and raising prices for consumers.
Reuters 29/06/2012
3. ANGOLA LNG SHIP SEEK SPOT CARGOES FROM NORWAY AND NIGERIA
Two vessels will achieve high rates as tonnage availability is tight.
TWO liquefied natural gas carriers assigned to ship Angola’s LNG have started to sail away from Angola to seek cargoes elsewhere and are likely to benefit from rising rates in the emerging spot market.
The 2011-built, 160, 276 cu m Soyo and Malanje, both owned by Japan’s NYK group, have left the coast of Angola and are ballasting to Norway and Nigeria respectively, Lloyd’s List Intelligence reported today.
The vessels will be able to pick up cargoes from LNG plants in Norway and Nigeria and ship them on the spot market, benefiting from present high rates, said Lloyd’s List Intelligence analysts.
The situation highlights how LNG carriers can benefit from delayed export projects such as those in Angola.
Rather than remain inactive for long periods, carriers can ship cargoes on the nascent LNG shipping spot market where brokers report rates currently as high as $148,000 per day for voyages to Asia.
It is not known what rate the two NYK vessels will have achieved.
Present spot and short-term rates have improved since earlier this year, when they dropped to around $105,000 per day as more vessels were available for employment. The market has since tightened, with few ships available to charterers, and this has driven a rate rise.
LNG shipping does not have a developed spot market similar to those serving the tanker and dry-bulk industries but as specialist fleet and LNG demand grows, a spot market appears to be emerging tentatively.
However, there are still calls for the industry to improve flexibility and move away from long-term contracts where ships do not deviate from assigned routes.
Since being delivered from Samsung Shipbuilding & Heavy Industries in South Korea last year, Soyo and Malanje have each carried three shipments from Nigeria to Asia, including South Korea, Japan and China, according to Lloyd’s List Intelligence movement data.
Lloyd’s list 02/07/2012
4. TWO NEW LNG CARRIERS ORDERED BY MOL
Mitsui OSK Lines has ordered two new LNG carriers, one each from Kawasaki Heavy Industries and Mitsubishi Heavy Industries, both with steam turbine propulsion and independent spherical Moss-type tanks.
The first vessel is of 164,700m³ capacity, scheduled for delivery in 2016, and based on a new design from Kawasaki Heavy Industries, built to suit the expanded Panama Canal dimensions, while maintaining a hull size allowing it to call at major LNG terminals worldwide.
The second ship is to MHI’s ‘Sayaendo’ design, of 155,300m³ tank capacity. It will feature a continuous cover over its four Moss-type spherical tanks. The cover is integrated with the ship’s hull, achieving weight reduction for increased fuel efficiency, while maintaining overall hull rigidity. Delivery is scheduled for 2017.
Both vessels will be chartered to the Kansai Electric Power, and will adopt a new steam turbine engine that reuses steam for heating. An advanced heat insulation system is said to offerthe lowest LNG vaporisation rate – 0.08% – of any LNG carrier, and to effectively control surplus boil-off gas.
The Motorship 02/07/2012
5. ORIGIN’S LNG PROJECT INKS SUPPLY DEAL
Origin Energy's Australia Pacific LNG joint venture has finalised a 20-year supply contract with a Japanese power company.
Australia Pacific LNG (APLNG) will supply about one million tonnes of LNG to Kansai Electric Power Company over 20 years under an agreement reached on Friday, Origin said.
Kansai and APLNG signed a heads of agreement for supply of gas in November 2011.
APLNG consists of coal seam gas (CSG) fields in Queensland's Surat and Bowen basins, and a pipeline to an LNG plant on Curtis Island off the coast of Gladstone.
First production of gas is expected in 2015, and the Kansai supply agreement would start in 2016.
The project is owned by Origin, US giant ConocoPhillips and China Petrochemical Corp (Sinopec).
9News 29/06/2012
6. CHIYODA AWARDED EPC CONTRACT FOR HITACHI LNG TERMINAL
Chiyoda Corporation, Japan's laeding engineering and construction firm, today announced that Chiyoda has been awarded on EPC contract by Tokyo Gas Engineering Co. Lt. for Hitachi LNG Terminal in lbaraki port, Hitachi district. Site Work will start in FY 2013 and operation will start in FY 2015.
CSW 02/07/2012
7. CHINA YARD REPAIRS LNG CARRIER
The Jiangsu Xinrong Shipyard in China said the 125,468 cubic metres capacity LNG carrier "Koto", belonging to BW Fleet Management, has berthed at the yard for repairs. "The carrier 'Koto' was involved in an incident in Malaysian waters two years ago, which caused the engine room to be flooded and power to be lost," the yard said. "We negotiated with the Marine Board and interested parties to take the vessel from the Yangtze River to the yard for a check and evaluation before repairs," it added.
LNG Journal 02/07/2012
8. FRENCH LNG IMPORT THREAT
The new socialist French government may decide in the next few days to freeze natural gas prices, thus affecting LNG imports. Finance Minister Pierre Moscovici was considering blocking a 5 percent price increase requested by the nation's main LNG importer GDF-Suez. A price freeze would lead to French LNG re-exports and more cargo diversions.
LNG Journal 02/07/2012
9. TOKYO GAS RECEIVES FIRST CARGO FROM AUSTRALIA’S PLUTO PROJECT
Tokyo Gas received its first cargo Friday from Australia’s Pluto project, at its Sodegaura import terminal in Tokyo Bay, the largest Japanese gas utility said. Tokyo Gas received about 78,000 mt of LNG (equivalent to 3.6 Bcf of gas) on its Energy Horizon, the company said. Tokyo Gas is one of Pluto’s foundation customers and holds a 5% equity stake in the project. The utility has a 15-year long-term contract to buy between 1.5 million mt/yr (equivalent to 192,000 Mcf/d of gas) and 1.75 million mt/yr of LNG from Pluto. The Pluto gas field was discovered in the Carnarvon Basin, about 190 km (118 miles) northwest of Karratha, in 2005.
Platts 2/07/2012
10. ELEVEN COMPANIES BID FOR EXPLORATION RIGHTS OFFSHORE GREECE: MINISTRY
Eleven companies have bid for hydrocarbon exploration rights in three blocks offshore western Greece, the country’s environment and energy ministry said Monday. Two companies submitted individual bids, while the rest formed four consortiums, the ministry said. It did not say when winners would be announced. Bids for the Ioannina block off northwestern Greece were submitted by a consortium formed by Hellenic Petroleum, Italy’s Edison and UK-listed oil and gas exploration company Melrose Resources; a consortium formed by Greece’s Energean Oil and Gas, Canada-based Petra Petroleum and US-listed Schlumberger; Canada’s Arctic Hunter Energy and K.O. Enterprises in a joint bid; and Africa-focused Chariot Oil and Gas in an individual bid. A consortium formed by Energean Oil and Gas, the UK’s Trajan Oil and Gas, and Schlumberger bid for the Gulf of Patras block off the northwestern Peloponnese, as a did the Hellenic Petroleum, Edison and Melrose Resources consortium. Bids for the Katakolo block off the western Peloponnese were made by the Energean, Trajan and Schlumberger consortium, while an individual bid was made by Grekoil Energy Ventures. The ministry statement described the response to the bidding competition as “exceptionally successful, despite [Greece’s] bleak financial environment and scaremongering of recent times.”
Platts 02/07/2012
11. STX OFFSHORE TO COLLABORATE WITH KOGAS TO DEVELOP LNG KNOW-HOW
Companies will co-design engineering and maintenance technologies
STX Offshore & Shipbuilding has inked a memorandum of understanding with Korea Gas Technology Corp to co-develop liquefied natural gas expertise.
Under the agreement the companies will work together to produce new technologies in the LNG field, including engineering, reliquefaction and regasification, and maintenance technologies for LNG carriers. They . Both companies said the effort would diversify their product offerings.
STX on Thursday won an order from Greek shipowner Alpha to build a 160,000 cu m LNG carrier for $192.4m, with the option of a second one. STX has been pushing hard to consolidate its place as an LNG carrier builder.
KoGas Tech is an engineering arm of Korea Gas Corporation, the world’s largest LNG buyer.
Lloyd’s list Asia 29/06/2012
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