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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


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


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


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


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)


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


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


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


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.  


Shell Loads First LNG Vessel at Gate Terminal

Coral Methane loading (Photo: Shell)

Shell loads first LNG vessel, using new LNG fuel infrastructure at Gate terminal. The new LNG fuel infrastructure included the construction of a new berth. This new berth has now started operations. The loading of Shell’s chartered LNG vessel, the Coral Methane happened on September 19th


Pavilion Energy, ExxonMobil Join on Singapore LNG Bunkering

Image: Exxon Mobil Corp

 Pavilion Energy Pte Ltd (Pavilion) and Exxon Mobil Corp. (ExxonMobil) will work together to develop liquefied natural gas (LNG) bunkering in Singapore, as well as other downstream projects, reports the Straits Times.   Both companies will also look at developing other downstream


Alaska, ConocoPhillips Eye JV to Market LNG

Image: Alaska LNG Project LLC

The state-owned Alaska Gasline Development Corp. (AGDC), and ConocoPhillips Alaska Inc. have executed a memorandum of understanding (MOU) to form a joint venture company (JV) to market liquefied natural gas (LNG) from the Alaska LNG project.  


IOC Eyes GSPC's Stake in Mundra LNG terminal

Image by Whessoe Technology Centre

 Indian Oil Corp. Ltd (IOC) wants to buy debt-laden Gujarat State Petroleum Corp.’s (GSPC) entire stake in the in the under-construction Rs 4,500 crore ($672 million) GSPC-Adani liquefied natural gas (LNG) terminal in Mundra, Gujarat, reports Livemint.  


Indian Oil Giant May Scrap LNG Vessel Tender

Photo: GAIL

GAIL India, largest state-owned natural gas processing and distribution company in India, will likely scrap the tender for hiring LNG ships after failing to negotiate acceptable terms with bidders in what would hurt India's ambition to build high-tech LNG carriers at home under the Make in India


Coal's Cost Advantage over LNG Slipping

file image: a ttypical bulk carrier at sea (Credit: BSM)

Thermal coal has been one of the commodity success stories this year, but there is a risk that it becomes a victim of its own success by eating into its advantage over liquefied natural gas (LNG) in generating electricity. The benchmark Australian thermal coal price, the Newcastle Index


Finland's 1st LNG Terminal Opens

Image: Gasum Oy

Finland’s first liquefied natural gas (LNG) import terminal at Pori on the west coast was officially opened, says Gasum. Deliveries of LNG to customers began on the same day, the company said in its statement.   It enables LNG deliveries to industrial


First Gas-Up Operation at Jebel Ali LNG Import Terminal

Excelerates FSRU Explorer at DUSUPs Jebel Ali LNG Terminal in Dubai. (PRNewsFoto/Excelerate Energy L.P.)

Excelerate Energy L.P., in collaboration with Dubai Supply Authority (DUSUP), has completed the first commercial gas-up operation at DUSUP's Jebel Ali LNG Import Terminal via Excelerate's floating storage and regasification unit (FSRU) Explorer on August 31, 2016.


Statoil to Supply Small-scale LNG to Baltics

Norway's Statoil will supply small-scale liquefied natural gas (LNG) to terminals in the Baltic Sea through Lithuania's Klaipeda LNG terminal, a company official said on Thursday. The move comes after the energy firm signed an agreement on Thursday with Litgas and Lietuvos Duju Tiekimas


BV & Ship-to-Ship LNG Bunkering

Ship-to-ship LNG bunkering

Bureau Veritas is supporting the adoption of clean fuel LNG through the classification of both vessels in the world’s first ship-to-ship LNG bunkering operation between two independent ocean-going vessels. On September 3 2016, Terntank Rederi’s M/T Ternsund bunkered LNG from Coral


Harvey Gulf ATB Earns ABS, USCG Approvals

(Image: HGIM)

Harvey Gulf International Marine (HGIM) announced it has received both ABS (American Bureau of Shipping) class functional approval and USCG (United States Coast Guard) design bases approval on a 4,000 cubic meter LNG articulating tug barge (ATB) construction drawing package; the design accounts


Gorgon LNG Cargo Arrives Japan

Photo: Chevron Corporation

 Tokyo Gas Co has received its first liquefied natural gas (LNG) cargo from Chevron Corp's $54 billion Gorgon export facility in Australia, reports Reuters.   The "Energy Confidence" vessel carrying about 70,000 tonnes of LNG arrived on Saturday at the company's Ohgishima LNG


Sovcomflot $ 1.26 bln Debt Financing Complete

Courtesy SCF Group

SCF Group completed a series of financing transactions in the total amount of USD 1.26 billion. The deals include USD 750 million of unsecured public debt and USD 512 million of bank loans raised for purposes of funding the fleet renewal and expansion programme and for the refinancing of maturing


LNG Investment Swings to North America

Photo: Chamber of Shipping of British Columbia

 The LNG industry is undergoing a dramatic transformation. North American activity (the majority of which is committed spend) is driving a return to growth in global capital expenditure. A wave of new LNG carrier newbuilds will also be required to support a huge increase in traded base-load


Six Suezmax Tankers Earn BV Gas-Prepared Notation

International classification society Bureau Veritas is to grant GAS-PREPARED notation to six Suezmax tankers under construction for Dynacom Tankers Management.   The 157,000 dwt tankers will measure 274.3 meters in length, with a beam of 48 meters and depth of 23.2 meters






 
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