Important LNG Trade Developments Summed Up by GIIGNL

MarineLink.com
Tuesday, November 05, 2013
LNG terminal operations: Photo courtesy of GIIGNL

In a report just published, the International Group of Liquefied Natural Gas Importers (GIIGNL) note that in 2012, LNG trade has seen the first decline (minus 1.9%) in the past thirty years. The strong growth in spot and short term trade seen in recent years (up by 110% from 2009 to 2011) is no longer there, primarily, but not solely, in line with the lack of new supplies. Extracts fromthe report follow:

The 2011 catastrophic tsunami in Japan continued its grip on LNG flows throughout 2012, causing massive shifts eastwards of Atlantic Basin and Middle East-sourced cargoes to satisfy the strong demand of
Japan’s power industry. Its commercial effects are likely to continue beyond the current year as well as beyond a mere diversion of product flows.

On the production side, capacity additions have been below expectations and insufficient to make up for the higher loss of capacity due to planned shutdowns and unscheduled production interruptions, mainly resulting from a shortfall of feed-gas. As a result, in 2012, LNG trade has seen the first decline (minus 1.9%) in the past thirty years.

Two events in 2012, albeit of a different nature, stand out among the highlights of the year: a significant rise in reloads, and the first final investment decision (FID) of exports from North America.

1. Reloads
Reloading of cargoes in receiving terminals is generally presented as a demonstration of commercial innovation though sometimes simply allowing to overcome destination restrictions or difficult negotiations on profit sharing from cargo deviations. Considering operational cost efficiency and the environmental impact, it is doubtful that reloads will continue to be a growing feature in LNG trading, despite a total count in 2012 of 70 re- exported cargoes actually discharged in 2012 (up 60% from last year). It is noteworthy that Europe makes up more than three quarters of these reloads, nearly all attributable to Spain and Belgium, two of the countries in Europe with sufficient firm destination supplies to sustain regular reloads.

2. US LNG exports
The hotly debated US LNG exports on the other hand are to be viewed as a far more important trend with profound commercial consequences, assuming that last year’s pioneering FID by Cheniere will have several followers in 2013.

However none of the twenty or so projects somewhere “in the pipeline” in the USA and Canada have reached this final stage yet. The commercial pricing principles will be groundbreaking if the Cheniere project is followed by other projects, eagerly awaited by many Asian importers, hoping that Henry Hub-based pricing can bring relief from crude price indexation in the future.

The GIIGNL report can be accessed here: http://www.giignl.org/

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Japan Seeks Australian Submarine Contract

Japan will send a high-level delegation to Adelaide for talks on building Australia's next-generation fleet of submarines.   A former commander of the Japanese

Ghana to Roll out Shipping Training

Ghana is considering establishing modalities to compel shipping companies to introduce a training regime which ensures that their local staff gain professional qualifications in shipping.

Davao Sasa Port Modernization Project Attracts 6 Firms

Six local and foreign firms have expressed interest to construct a modern Davao Sasa Port, the Department of Transportation and Communications (DOTC), Philippines said.

Tanker Trends

Singapore MPA Wants LNG Bunkering Options

Singapore's Maritime Port Authority is seeking proposals on liquefied natural gas bunker supplies as it shifts away from fossil fuels towards gas while trying to

NewLead Holdings Announces Commercial Competency of MT Sofia

NewLead Holdings Ltd.announced today a review of the commercial competency of one of its bitumen tanker vessels, the MT Sofia since the vessel was delivered to NewLead's fleet.

Scorpio Tankers to Acquire Product Tanker

Scorpio Tankers Inc. announced today that it has entered into an agreement to purchase an MR product tanker. The Company reached an agreement with an unrelated

Ports

Ghana to Roll out Shipping Training

Ghana is considering establishing modalities to compel shipping companies to introduce a training regime which ensures that their local staff gain professional qualifications in shipping.

Davao Sasa Port Modernization Project Attracts 6 Firms

Six local and foreign firms have expressed interest to construct a modern Davao Sasa Port, the Department of Transportation and Communications (DOTC), Philippines said.

New Productivity Record at Khalifa Port

Khalifa Port Container Terminal, KPCT, set a new productivity record by handling 2615 moves in just under 13 hours on the 9,365 TEU CMA CGM Thames which called into Khalifa Port on Tuesday 21st July.

LNG

Carnival’s Costa Brand Orders Two LNG Cruise Ships

Costa’s two new cruise ships will be the largest ever built based on guest capacity; Costa will join sister brand AIDA Cruises in building the first-ever cruise

Singapore MPA Wants LNG Bunkering Options

Singapore's Maritime Port Authority is seeking proposals on liquefied natural gas bunker supplies as it shifts away from fossil fuels towards gas while trying to

Statoil 2Q 2015 Earnings Slip

Statoil delivered Adjusted earnings of NOK 22.4 billion and adjusted earnings after tax of NOK 7.2 billion in the second quarter. Statoil reported Net income in accordance with IFRS of NOK 10.

 
 
Maritime Contracts Maritime Standards Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2732 sec (4 req/sec)