Marine Link
Friday, March 24, 2017

US O&G Industry Reaps the Benefits of International Trade

© Alexandre / Adobe Stock

Rising exports have thrown a lifeline to U.S. shale producers and refiners, giving them an additional outlet at a time when the domestic market has been at risk of becoming saturated. The United States exported record quantities of natural gas, propane, gasoline, distillate fuel oil and light crude last year while continuing to import the heavy oils needed by its refineries. Gas exports increased by almost 30 percent in 2016 and have more than tripled in the last decade, limiting the build up of unused gas and supporting prices in recent months despite the warmest winter on record.

Shell Plans to Build Floating Gas Plant

According to an Oct. 9 report from The Wall Street Journal, Royal Dutch Shell PLC announced plans to deploy the world's first floating liquefied-natural-gas facility, off the coast of northwestern Australia, in a move that could have major repercussions for the global natural-gas industry. (Source: The Wall Street Journal)

Western GofM Oil/Gas Lease Bidding: NOIA Comments

National Ocean Industries Association President Randall Luthi encouraged by sales, urges further offshore developments. "This sale is on-par with expectations and shows that the offshore oil and natural gas industry is still committed to domestic exploration and production. The Federal government benefits from this sale through non-income tax revenue and the promise of future income through rents and potential royalties upon production. With enormous economic challenges facing the U.S., and the impending "fiscal-cliff" dominating the national conversation, it is gratifying to see the offshore industry stepping up to the plate and providing hundreds of millions of dollars to the U.S. treasury.

Linde to Cooperate with SBM

Germany's Linde formed a global alliance with SBM (of the Netherlands to develop and market floating production, storage and offloading (FPSO) units for the liquefied natural gas industry. Under the deal, Linde contributes gas hardware such as pretreatment, fractionation and liquefaction based on its proprietary process LiMuM. SBM for its part contributes for example marine technology including hull and LNG storage tanks systems, power generation systems, mooring systems, cryogenic offloading systems and its experience of operating FPSO, Linde added. (Source: Reuters)

Scale of BC's LNG Terminal Plans Questioned

Lelu Island Area: Photo courtesy of Pacific Northwest

The British Columbia government has staked its future on natural gas exports, banking on a revenue windfall of at least $100-billion. Yet growing market pessimism and a sudden broadside from large gas consumers is casting fresh doubt on the planned scale of the emerging liquefied natural gas industry, reports the 'Financial Post'. The Pacific Northwest LNG project, located on Lelu Island in the Port Edward district, will liquefy and export natural gas produced in northeastern British Columbia by Progress Energy Canada.

ICE to Offer First US Gulf Coast LNG Futures Contract

With the United States about to become a net exporter of natural gas for the first time in 60 years, Intercontinental Exchange Inc said on Wednesday it would begin trading the first-ever U.S. liquefied natural gas futures contract in May. ICE said the contracts would be cash-settled against the Platts LNG Gulf Coast Marker price assessment and use Platts-derived U.S. GCM LNG forward curves for daily settlement purposes. The curves will have an initial term of 48 months. "Domestic and international market participants now have a risk-management solution that lays the foundation for a more effective means of hedging their spot and forward exposure," J.C. Kneale, ICE's vice president, North American power and natural gas markets, said in a statement. U.S.

Job Opportunities in NE Florida LNG Sector

File photo

Northeast Florida is taking the lead in the natural gas industry to attract and keep business in the area. Viewed as a viable player in this industry, the region is building upon its status as an importer and exporter of liquefied and compressed natural gas by cultivating its available, skilled workforce to support this growing industry, says the JAXUSA Partnership via Business Wire. Significant developments are occurring in the area that will offer employment opportunities. Clean Energy Fuels Corp.

Will LNG Remain a Key Energy Source?

© phonix_a / Adobe Stock

Japan imported 8.3 million metric tons of LNG in January, an increase of 1.06 million metric tons compared to the previous year. The data, released by the Japanese Ministry of Finance, also reveals that the amount the country pays for LNG imports had increased by 6.7 percent since 2015. Japan is one of the largest LNG importers in the world and it is expected that gas and LNG will continue to remain a key energy source in the future. The nation’s reliance on LNG rose in 2011 following the closure of the country’s nuclear reactors…

MMS Publishes Final Regulations for Bonus Bids

The Department of the Interior's Minerals Management Service (MMS) published a final rule regarding the use of electronic funds transfer (EFT) by oil and natural gas companies bidding on Outer Continental Shelf federal leases. The final rule provides additional administrative flexibility to allow the agency to require EFT payment methods when appropriate. The rule will save time and money for the oil and natural gas industry and the Federal government. Previously, MMS did not have the authority to require bidders to use EFT to submit their one-fifths bonus bid payments. Since August 1997, companies have had the option of using EFT to submit their bonus bid payments.

MMS Publishes Final Regulations for Bonus Bids

The Department of the Interior's Minerals Management Service (MMS) published a final rule regarding the use of electronic funds transfer (EFT) by oil and natural gas companies bidding on Outer Continental Shelf federal leases. The final rule provides additional administrative flexibility to allow the agency to require EFT payment methods when appropriate. The rule will save time and money for the oil and natural gas industry and the Federal government. Previously, MMS did not have the authority to require bidders to use EFT to submit their one-fifths bonus bid payments. Since August 1997, companies have had the option of using EFT to submit their bonus bid payments.

CNOOC Reports Worst Result Since At Least 2011

File photo: CNOOC

China's offshore oil and gas producer CNOOC Ltd reported its worst annual result since at least 2011, with revenue from its core oil and gas business tumbling 17 percent last year, but it expects to raise output 2017 as oil prices rebound. CNOOC reported a net profit of 637 million yuan ($92.5 million) in 2016, down nearly 97 percent from 20.2 billion yuan in profit in 2015. Total revenue from oil and gas fell to 121 billion yuan from 147 billion yuan in 2015. "CNOOC managed to eke out a tiny profit thanks to cost efficiencies and the oil price rebound during 4Q…

Petronet LNG Commissions Expanded Dahej LNG

Photo: Petronet LNG Ltd

 Petronet LNG Ltd has annouced that the part facilities of the expansion of Dahej LNG Terminal from 10 tlko 15 MMTPA i.e. regasification facility has been commissioned and under stabilization.    As such the additional gas send-out from Dahej LNG terminal  in the north-west state of Gujarat has commenced. The balance part of the expansion i.e. two LNG storage tanks are likely to be completed by October, 2016.   Petronet LNG is one of the leading players in oil and natural gas industry space. It has India’s first and largest LNG supply terminal located at Dahej.  

Porter Voices Concerns Over Texas Pipelines

Commissioner David Porter

Commissioner David Porter of the Texas Railroad Commission (RRC) Tuesday visited several south Texas border oil and gas facilities and pipeline rights-of-way to meet with field staff, operators, law enforcement and security officials to examine the vulnerability of Texas’ critical industry infrastructure. "While oil and gas operators take every precaution to limit any threat to their equipment and product, the unfettered flow of illegal aliens complicates their efforts,” said Porter. Commissioner Porter recently sent a letter to U.S. Customs and Border Protection (CBP) Commissioner R.

Canadian LNG Prospects Dim: IEA

Pic: Ministry of Natural Gas Development, Canada

The International Energy Agency (IEA) says prospects for British Columbia’s nascent LNG sector export projects have ‘darkened’ and deferrals are likely. British Columbia faces intense competition from the rest of the world in developing its liquefied natural gas industry in part because projects will not be viable at today's low gas prices, IEA says. In a five-year outlook on global demand for natural gas, the Paris-based agency throws cold water on the B.C. government’s hopes of being home to three liquefied natural gas projects by 2020.

Sailing into the Arctic’s Future

Randall Luthi (Photo: NOIA)

Last month, a large cruise ship completed its inaugural cruise through the Northwest Passage. The historic journey brought nearly 1,700 passengers from Seward, Alaska, past the rugged wilderness and isolated villages of the Arctic, to the concrete jungle of New York City. Along the way, passengers and crew were treated to a stunning contrast of climates, geography and culture. While understandable, concerns over passenger safety, wildlife disruptions and water pollution went unrealized during the historic cruise through the passage.

MN 100: Bordelon Marine

Bordelon Marine is a provider of marine transportation and support services to the oil and natural gas industries in the Gulf of Mexico and around the world, offering a full range of offshore vessels that aid activities, including construction support, exploration, production, ROV and dive support, oceanographic research and survey mapping, as well as military and special operations. Family run since 1979, this year marks the 35th anniversary of Bordelon Marine, which owns and operates a fleet of modern offshore supply vessels ranging in size from 110-170 feet, mostly built after 2001.

Baker Hughes' CEO to Present at 2014 Barclays Energy-Power Conference

Baker Hughes's Chairman and Chief Executive Officer, Martin Craighead,

Baker Hughes Incorporated announced that the Company's Chairman and Chief Executive Officer, Martin Craighead, will be making a presentation at the Barclays CEO Energy-Power Conference on Wednesday, September 3, 2014, at 9:45 a.m. Eastern time. Those interested can listen to the presentation and view the presentation materials during the conference, by logging onto the "Events & Presentations" page on our website at: www.bakerhughes.com/investor. They could also listen to a replay…

NOIA Commends Passage of HR 1231, Reversing Moratorium

“With the passage of HR 1231, the Reversing President Obama’s Offshore Moratorium Act, the House of Representatives showed they are listening to the American people. Average working Americans know that our long term energy solution includes increased exploration for oil and natural gas off our shores and this bill would expedite increased exploration and the setting of production goals  from those offshore areas. “Every step we make today in assuring the United States is willing to compete with other countries, such as Cuba and Brazil,  by providing opportunities to develop our own offshore oil and natural gas resources consistently and safely has an immediate effect in calming the international oil market.

U.S. Offshore Energy: NOIA Responds to State of the Union Address

File photo CCL

“The President continues to take credit for the surge in domestic oil and natural gas production when the fact is almost all of the increase came from private and state, not federal, lands. The President spoke again about the need for more jobs. Yet his Administration continues to block expanded domestic offshore energy production on the 85 percent of the Outer Continental Shelf that remains off limits for political reasons, even though developing those areas would usher in an economic renaissance…

LNG America Selects ABS for LNG Bunker Barges

LNG America announces the selection of the American Bureau of Shipping (ABS) as the classification society for North America’s first LNG bunker barges, currently being designed by Jensen Maritime. ABS will assist LNG America in working with shipbuilders and regulators in developing these first-of-their-kind barges that meet or exceed all technical and regulatory requirements. “We are pleased to be working with ABS on this important domestic initiative. ABS has watched ship propulsion move from wind to coal, from coal to oil, and now from oil to natural gas.

British Columbia Signs LNG Deal with Petronas

Agreement between the government of BC and Pacific NorthWest LNG establish signed. Photo: BC Gov News

B.C. Premier Christy Clark has announced an agreement in principle with Pacific NorthWest LNG, owned in majority by Malaysia's Petronas, for a liquefied natural gas development on the province's northwest coast. Hailed as “the largest capital investment in B.C. history,” Clark said the LNG framework will result in stable, long-term revenue for B.C. and $36 billion in investment, including a proposal for an LNG facility near Prince Rupert. Both are intended to provide certainty…

CFE Extends 2-Cargo LNG Tender Close by One Day

Mexico's state-run power utility CFE has extended the close of a buy tender seeking two liquefied natural gas (LNG) cargoes in April by one day to Wednesday, trade sources said. The deliveries are due to arrive at Mexico's Altamira terminal on the Atlantic coast. CFE just filled a separate tender for supply to the Manzanillo terminal on the Pacific, but it was not immediately clear which companies won that tender. (Reporting by Oleg Vukmanovic)

Gail India Seeks First-half April LNG Cargo

Gail India launched a tender seeking a liquefied natural gas (LNG) cargo for delivery in the first-half of April, trade sources said.   The tender, launched on Monday, follows two recent cargo purchases also for delivery in April. (Reporting by Oleg Vukmanovic, editing by Louise Heavens)

Maritime Reporter Magazine Cover Mar 2017 - The Green Marine Technology Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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