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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: Klaipėda 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


MOL Signs Long-Term Charter with Uruguayan JV for FSRU

Photo: Mitsui O.S.K. Lines

 Japanese shipping company Mitsui O.S.K. Lines, has, through its wholly-owned subsidiary Lakler S.A., agreed to conclude a charter contract with Gas Sayago, for a floating storage and regasification unit (FSRU) project in Montevideo, Uruguay.   Gas Sayago is a joint venture (JV) owned by UTE – the Uruguayan state power company – and ANCAP – the state oil company.    The contract will take effect upon governmental approval which is expected to be


Asian LNG Prices Rise to Highest Levels

Photo: Chamber of Shipping of British Columbia

 Asian liquefied natural gas (LNG) gas prices reached a nine-month high this week as demand from India, Japan and South Korea underpinned sentiment, reports Reuters.   LNG for November delivery were about $6.20 per million British thermal units (mmBtu), 10 cents higher than last week, as supply-demand balances for the rest of the year appear tighter, said three traders who participate in the market. That is the highest since the week ending Jan. 8.  


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


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)


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


Partners to Build LNG Dual-fuel Bunker Ship for Singapore

Harley Marine International Holdings Pte. Ltd. said it has signed an MoU with Pavilion Gas Pte. Ltd, Mitsui O.S.K. Lines, Ltd. (MOL), and Mitsui & Co., Ltd. (Mitsui) to build the first liquefied natural gas (LNG) dual-fueled bunker tanker for Singapore.  


Samsung Heavy Cancels $776.8 mln LNG FPSO Order

Image: Samsung Heavy Industries

 South Korean shipbuilder Samsung Heavy Industries (SHI) has terminated a contract worth a 907.6 billion won ($776.8 million) for the construction of a liquefied natural gas (LNG) floating production and storage (FPSO) unit the shipbuilder signed with an unnamed European buyer back in January


First LNG-powered Hopper Dredger Launched

Worlds first LNG-powered hopper dredger Minerva launched Photo Royal IHC

The launch ceremony of DEME’s 3,500m3 LNG-powered trailing suction hopper dredger (TSHD) MINERVA took place on 3 December at Royal IHC's shipyard in Kinderdijk, The Netherlands. The official name giving and christening ceremony will take place in the spring of 2017 in Zeebrugge, Belgium.


ExxonMobil Sees PNG LNG Producing at 16 pct Above Nameplate

Photo:  PNG LNG

 ExxonMobil expects to deliver 7.9 million tonnes of liquefied natural gas from Papua New Guinea this year, around 14 percent above nameplate capacity of its PNG LNG plant,  says a report in Reuter's quoting the company's PNG head.  


GAIL Scraps $7-bn LNG Tender

Photo: GAIL India Ltd

 Indian state-owned energy firm GAIL India Ltd has scrapped a USD 7 billion tender for hiring newly built ships to ferry LNG from US after bidders did not agree to 'Make-in-India' terms, says a report by PTI.   Gail will now hire the ships from the global spot or current market to


DNV GL Debuts Tool to Support Wider Adoption of LNG as Fuel

Fitness for purpose of LNG - New tool helps overcome quality issues and protect engines by calculating the PKI methane number

New easy-to-use calculator helps overcome quality issues and protect engines European Autumn Gas Conference, The Hague: Greater use of LNG as fuel would reduce global emissions of greenhouse gases, but barriers remain to its widespread adoption


Parker Bestobell Secures $5mln Contract

Photo courtesy of Parker Bestobell

Parker Bestobell Marine, a  supplier of cryogenic valves and part of Parker, a global leader in motion and control technologies, has secured a nine vessel order,  worth $5m, making it the single biggest order that the company to date.  


Japan Starts Probe of LNG Shipping Restrictions

File Image (CREDIT: Parker Bestobell)

Japan's Fair Trade Commission (JFTC) has ordered the country's liquefied natural gas (LNG) buyers to provide details on contract requirements that prevent them from reselling the fuel to third parties, according to a source with direct knowledge of the inquiry.


Pasha Hawaii Set to Order Containerships

Honolulu-based Pasha Hawaii said the company narrowed its selection to two U.S. shipyards for the construction of two new Liquefied Natural Gas (LNG) fueled containerships, with the option to order two additional vessels. Contract specifications are expected to be finalized by the end of the month


FORAN Expands User Base in Korea

Hansung Ship Eng. Power station (Photo: FORAN)

These are difficult times for the shipbuilding industry, in particular that of Korea, which faces its worst-ever order drought. Big, medium-sized and small shipbuilders are undergoing deep restructuring as a consequence of the workload downturn


Collaborators to Develop LNG Deliveries in North UK and North Sea

From left to right: Michael Cobb, ExxonMobil; Andrew Scott, Babcock; Ian Lindsay, Babcock; Angus Campbell, BSM; Michael Morrison, Orkney; Gavin Barr, Orkney; Mark Gilks, Calor; and Luca Volta, ExxonMobil (Photo: © Colin Keldie)

Aiming to develop the infrastructure, storage and technical support needed to enable safe liquefied natural gas (LNG) operations for customers in the north of the U.K. and North Sea, including bunkering, partners ExxonMobil, Babcock International Group, Bernhard Schulte Shipmanagement (BSM)


Thailand Ups Long-term LNG Imports Due to Coal Plant Delays

Thailand is increasing its planned long-term imports of liquefied natural gas (LNG) to meet rising demand after delays to the construction of coal-fired power plants, a senior official at energy ministry said on Wednesday.   Energy policy makers have revised their target of LNG imports to 17


ExxonMobil Inks Deal to Collaborate on Caledonia LNG Project

OIC MEETING PHOTO EXXONMOBIL

ExxonMobil, Babcock International Group, Bernhard Schulte Shipmanagement (BSM), Calor and Orkney Islands Council have signed an agreement to collaborate in the “Caledonia LNG ” project. The aim is to develop the infrastructure, storage and technical support needed to enable safe


SVEZA OK'd to Supply Plywood for LNG Carriers

GTTs auditor signs of plywood samples for qualification tests. (Photo: Sveza)

SVEZA Ust-Izhora plywood mill recently obtained the GTT (Gaztransport & Technigaz) Approval confirming compliance with specification of containment system for liquefied natural gas carriers. SVEZA Group is a leader in birch plywood production


Two New SEA\LNG Partners

SEA\LNG, which works to accelerate the widespread adoption of liquefied natural gas (LNG) as a marine fuel, has welcomed two new partners, each representing key aspects of the LNG maritime value chain: ABS and Keppel Offshore & Marine’s Gas Technology Development.  






 
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