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Lng Demand

LNG Shipping Under Pressure from Tumbling European Re-exports

LNG re-exports by European countries. Source Drewry Maritime Research

  LNG shipping freight rates continue to be under pressure from weak Asian demand and a growing fleet. Shipowners are now pinning hopes on a revival in European demand. However, European LNG demand growth will not be sufficient to raise freight rates, according to the newly launched LNG Forecaster report published by global shipping consultancy Drewry. Until the recent fall in oil prices, Asian LNG prices were at a premium compared to piped gas prices in Europe. European traders therefore preferred to re-export cargoes to more profitable Asian markets (see figure below). This helped to create substantial shipping demand as vessels found employment on both legs of the trade, first in import and then in re-export.  However, as Asian demand has weakened, the price differential between Asian LNG and European piped gas has eroded, which has hit re-exports from Europe. Spain, the biggest re-exporter from Europe, shipped 1.3 million tonnes of LNG during the first eight months of the current year, down 40% over the same period last year. But can Europe be the game changer? The recent fall in oil prices has made LNG competitive compared with piped gas, which has the potential to create more demand for LNG in European countries as they seek to diversify their supply base. However, a growing preference for renewable sources of energy and weakening domestic gas consumption will cap any major surge in LNG demand in Europe


LNG: Gas Demand Drives Investment

A bright future is forecast for the LNG industry, as long-term gas demand drives major investment in global LNG facilities. A new report from energy business advisors, Douglas-Westwood (DW), predicts the Pacific basin will be the main contributor to a ten year global investment high of $26 billion per annum by 2015. The report is being launched this week at the 6th FLNG Asia Pacific Summit, Singapore and the 5th Annual Gas Storage Conference, London


Bomin Linde, Lithuanian LNG Terminal sign MoU

OSLO, Feb 19 (Reuters) - Lithuania's liquefied natural gas import terminal and Germany's Bomin Linde LNG will work together to develop the use of LNG as marine fuel in the Baltic Sea, the terminal's operator Klaipedos Nafta said on Thursday. Lithuania opened the first LNG import terminal in the Baltic states last December to cut its dependence on pipeline gas imports from Russia. "In close cooperation both companies aim to jointly develop the LNG fuel market including the necessary


Lithuania Mulls LNG Exports

Image: KlaipÄ—da State Seaport Authority

 Domestic glut prompts Lithuania  government to consider selling-off surplus gas supplies, reports Reuters. Lithuanian LNG importer Litgas could be about to start re-exporting LNG bought.   Lithuania opened an LNG import terminal in 2014 and started exporting natural gas to neighbouring Estonia earlier this year, breaking the supply monopoly of Gazprom.   The Ministry of Energy forecasts that, in 2016


As Freight Rates Fall, LNG Shippers Brace Consolidation

Faltering LNG demand, growing tanker fleet drag on freight rates. Shippers who ply the seas to deliver liquefied natural gas (LNG) in massive tankers are likely to face a wave of consolidation and asset sales, with freight rates plunging as a growing fleet clashes with tepid demand. Companies that manage to weather the shakeout in one of the key sectors in the global shipping industry should be in a prime position, however


Keppel, BG Group JV to supply LNG Bunkers in Singapore

BG Group and Keppel to fuel ships with LNG in Singapore Photo BG Group

First delivery of LNG bunker expected to commence in 2017 Keppel Offshore & Marine Ltd (Keppel O&M), through its wholly-owned subsidiary KS Investments Pte Ltd (KSI), and BG Group plc (BG Group) have been selected to supply Liquefied Natural Gas (LNG) bunker to vessels in the Port of Singapore. The joint bid submitted by Keppel O&M and BG Group for the LNG bunker supplier licence is one of the two top bids selected by the Maritime and Port Authority of Singapore (MPA)


Report: LNG Fleet Needs to Expand 66%

The global fleet of tankers carrying liquefied natural gas needs to expand by 66% by 2010 to meet current and future demand from exporters including Qatar, Australia and Nigeria, according to LNG Shipping Solutions, as reported by Bloomberg. About 205 carriers need to be ordered, adding to the 182 ships in service and 127 units already contracted to be built, to meet demand for existing and future LNG projects.,As many as 105 vessels need to be ordered to meet demand for future projects and


LNG Bunkering Study Released by LR

LR LNG Bunkering Study: Image credit LR

Key finding is that demand for the deep sea trades could grow significantly if LNG bunkers are competitively priced compared with other fuel options. The 52-page study, which is being launched at Gastech 2012, assesses the likely scale of demand for LNG fuel and LNG-fuelled newbuilds using a unique interactive model of data drawn from major industry stakeholders. The 2011-2012 study says global acceptance of LNG as a marine fuel will depend on the development of a global bunkering


Global LNG-Asia Prices Creep Higher on Japanese Demand

Asian spot liquefied natural gas prices edged higher as scattered demand from Japanese buyers and others helped stem the recent decline in prices, traders said on Friday.   The price of spot LNG for April delivery inched up to $6.75 per million British thermal units (mmBtu) on Friday from $7.65 the previous week, while Europe's benchmark UK gas hub prices slipped to trade at a discount.   "We've seen some end-user demand in Japan," a trader said.  


Pressure Steady on LNG Shipping Rates -Drewry

LNG shipowners will have to wait until 2018 for earnings to improve, when the majority of new US plants are expected to come online, according to the latest edition of the LNG Forecaster report published by global shipping consultancy Drewry. The first quarter of 2016 was no better than the previous quarter for LNG shipowners as spot rates remained low at around $30,000pd. Two new liquefaction plants, Australia Pacific LNG (APLNG) in Australia and Sabine Pass LNG in the US


Nigeria's LNG Export Falls

Photo: Nigeria LNG Limited

 Babs Omotowa, Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG), has raised alarm over Nigeria’s dwindling investments in Liquefied Natural Gas (LNG), according to a report in Thisday.   He noted that with no new investments


US Battles Russia for European LNG Market

Image: Cheniere Energy

 As the U.S. prepares to enter the European gas markets with its first delivery of liquefied natural gas, Norway and Russia are expected to increase production to lower prices and make exporting less desirable to the U.S., reports Daily Sabah.  


Statoil: Limited U.S. LNG Impact in Europe this Year

File Image: An LNG STS Transfer underway (credit: Excelerate)

The European natural gas market is well supplied by pipeline gas from Norway and Russia, Norway's Statoil said on Wednesday, adding that it expected only limited impact from U.S. liquefied natural gas (LNG) supply this year. "Looking at the gas market moving forward the starting point is


AIDAprima Makes Maiden Call at Southampton

AIDAprima (Photo: AIDA Cruises)

AIDA Cruises’ new flagship AIDAprima docked in Britain’s Southampton port for the first time on the morning of April 27, 2016, as part of a four-day short cruise. AIDAprima will become the first cruise ship to depart from a German port all year round


LNG Producers Seek New Markets to Soak up Surplus

The world's top producers of liquefied natural gas (LNG) are investing in ship-fuelling operations, floating import terminals and power plants to open new markets and keep from drowning in a fuel surplus expected to last into the next decade.  


How Japan Can Lead the Marine Renaissance

Image: GE

Being an island nation, Japan is inevitably dependent on seaborne trade. Over time, this has led to it becoming a strong player in the global maritime market.    Japan’s shipbuilding pedigree has gained the country a foothold in LNG carriers


Third LNG-ready Tanker Delivered to Crowley

Photo: Crowley

Crowley takes delivery of Louisiana, third Jones Act tanker with LNG capability   Crowley Maritime Corp. has taken delivery of Louisiana, the third of four new, Jones Act product tankers being built for the company by Philly Shipyard, Inc


French Banks Eye Yamal LNG Project

Image: Yamal LNG

 French banks may participate in lending for the Russia's Yamal liquefied natural gas (LNG) project, a relevant agreement may be signed in 2016, Tass reported quoting Russia's Economic Development Minister Alexei Ulyukayev.   "As for French banks - we have made very serious


UASC, Qatargas and Shell Join to Push LNG as Marine Fuel

Qatargas CEO Khalid bin Khalifa Al Thani (fifth left), United Arab Shipping Company CEO Jorn Hinge (fourth left), and Managing Director and Chairman of Qatar Shell Companies, Michiel Kool (sixth left) along with other officials after the signing ceremony. Photo: Qatargas

 Qatargas, United Arab Shipping Company (UASC) and Shell signed a Memorandum of Understanding (MoU) to explore the development of LNG as a marine fuel in the Middle East region.    This is the second such agreement signed by Qatargas and Shell in as many months and establishes


Cheap Oil Slows Move to LNG as Bunker Fuel

Low oil prices are denting the take-up of liquefied natural gas as a cleaner source of energy to power ships, and it will be a few more years yet before the fuel makes serious inroads into the marine bunker market.   The global shipping sector is under pressure from governments to reduce


Cochin Shipyard, Samsung Heavy Pact for LNG Ship Project

Image: Cochin Shipyard Limited (CSL)

 Cochin Shipyard Limited (CSL) has signed a memorandum of understanding (MoU) with South Koreas second-largest shipbuilder, Samsung Heavy Industries (SHI) to team up to bid for the GAIL (India) Ltd tender to build liquefied natural gas (LNG) ships.   


Sinopec Rolls Out Beihai LNG-import Terminal

Image: Sinopec

 China Petroleum and Chemical Corp (Sinopec) has taken delivery of the first LNG cargo at its new terminal at Beihai City in Guangxi Zhuang, with the arrival yesterday of the LNG carrier Methane Spirit, delivering a cargo from ConocoPhillips-operated Australia Pacific LNG (APLNG)project in


Cyprus LNG Terminal Non-starter?

Cypriot President Nicos Anastasiades. Photo: Cyprus Govt

 Cypriot President Nicos Anastasiades has said that building an LNG terminal in Cyprus will depend on discoveries and the results of the country’s third licensing round.   Discussing the Cyprus Exclusive Economic Zone’s third licensing round


New ClassNK Guidelines for Gas-fueled Ships

class nk logo.jpg

Classification society ClassNK has released the fourth version of its Guidelines for Gas Fueled Ships.   With the introduction of increasingly strict environmental regulations, the industry is now turning toward the use of cleaner fuels such as LNG and more recently other low flashpoint


Hanjin to Divest Assets

Image: Hanjin Shipping

 The South Korean carrier Hanjin Shipping plans to generate USD 357 million from asset sales.    South Korea’s largest container operator by capacity plans to sell items such as dry bulk activities while the debt-stricken shipping group negotiates with shipowners for a






 
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