Important LNG Trade Developments Summed Up by GIIGNL
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:

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


Sea Truck's DP3 Construction Ship Passes Sea Trials

Sea Trucks has completed sea trials of the DP3 offshore construction vessel Jascon 18 in Singapore. Jascon 18 features a 1,800-metric-ton crane, 1,800 sq m deck and a 750-metric-ton pipelay system.

Royal Thai Navy Orders Harbor Tug

The Royal Thai Navy has ordered a new 32-meter tug from shipbuilder Italthai Marine Limited of Thailand, announced the vessel’s designer, Robert Allan Ltd.   Italthai Marine,

Eni Arctic Service Rig Extension Okayed

Italian oil company Eni has received permission from Norway's Petroleum Safety Authority to extend the use of a service rig on its troubled Arctic Goliat oil field offshore Norway until Nov.

Tanker Trends

Amid Commodity Crisis, LPG Emerges as Accidental Bright-spot

Liquefied Petroleum Gas, long a niche product used by the poor to cook and the rich to barbecue, has become a rare bright spot amid a broad commodities rout, riding

Urals Weakens Further in Baltic

Russian Urals crude differentials continued to slide in the Baltic on Thursday amid a flurry of activity with softer refining margins, pushed down by higher oil prices, still keeping buyers at bay.

N. Asia Snaps up Russian Crude Oil

Mideast crude freight to Japan highest since 2010. North Asian refiners have snapped up Russian crude oil loading in the last two months of this year to meet


Cordero Reconfirmed as FMC Commissioner

Mario Cordero was reconfirmed today as a U.S. Federal Maritime Commissioner.   Cordero joined the Federal Maritime Commission (FMC) as a Commissioner on June 3,

Port of Cleveland Scores Sediment Customer

The Port of Cleveland and its partner Kurtz Bros., Inc. have scored their first major user in the Port’s effort to market sediment for beneficial use.  Great Lakes Construction, Co.

Former Shipping Execs Indicted on Price-fixing

Three former executives of ocean freight shipping firms have been indicted for participating in a long-running price-fixing conspiracy, the U.S. Justice Department announced.


GTT Inks Framework Partnership Deal with CERN

GTT, a designer of membrane containment systems for the maritime transportation and storage of liquefied natural gas (LNG), has signed a Framework Partnership Agreement

LNG Tanker Smash Sinks Cargo Ship

The 2002-built, 8,850-dwt freighter Flinterstar is owned by Dutch shipping firm Flinter has sank after colliding nearly head on with the Marshall Islands-flagged

Finland Scraps LNG Terminal Plan

Finnish gas utility Gasum has abandoned its plans to build the Finngulf liquefied natural gas  (LNG) import terminal in Finland with an offshore pipeline connection

Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.1193 sec (8 req/sec)