Marine Link
Monday, October 23, 2017

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

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.  

LNG Prices Low on Oversupply

By Henning Gloystein   The Asian market for liquefied natural gas (LNG) remained subdued this week, weighed down by oversupply concerns and as the northern hemisphere exits its high demand summer season.   Spot prices for Asian LNG <LNG-AS> were at $5.40 per million British thermal units (mmBtu), down 5 cents from a week ago. That's more than 70 percent below the $20.50 per mmBtu peak from February 2014.  

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)

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

Singapore LNG Market to Grow at 10.39% Through 2025

Photo: Singapore LNG Corporation Pte Ltd

 The market for LNG in Singapore is projected to grow at a CAGR 10.39% during 2016-2025, due to the push from Singapore government towards adoption of cleaner energy sources, capacity addition of natural gas / LNG based power plants and emergence of Singapore as a regional trading hub for LNG in Asia-Pacific.    "Growing demand from power generation sector, favorable LNG prices and government initiatives to setup Singapore as LNG hub is expected to drive Singapore LNG

Dordrecht Inland Seaport to Get LNG Bunker Station

Photo: Port of Rotterdam

 The Port of Rotterdam Authority wants a new multi-fuel bunkering station for refuelling with LNG and other cleaner fuels. The anticipated location of the bunkering station is Krabbegors/Duivelseiland at Dordrecht Inland Seaport.    The Port of Rotterdam Authority and PitPoint.LNG have therefore signed a declaration of intent regarding a joint investigation into the construction of such a multi-fuel bunkering station.    

BP’s LNG Carrier Fleet is Growing

BP said it will take delivery of six new, state-of-the-art liquefied natural gas (LNG) tankers in 2018 and 2019 to support its expanding global LNG portfolio.   BP’s finance partners KMarin and ICBC Leasing are investing more than $1 billion in the tankers. The vessels will join BP’s exixting fleet to help service a 20-year liquefaction contract with the Freeport LNG facility in Texas, as well as other international LNG projects in BP’s global portfolio.  

The Nautical Safety Profile

(Image: MARIN)

MARIN is working together with the industry to develop the Nautical Safety Profile for operations and risk management.   Liquefied natural gas (LNG) is increasingly being used as an alternative fuel, both at sea and on land, to reduce pollution from transportation.    In 2011 the first LNG carrier arrived at the Rotterdam Gate terminal, and last year the terminal was upgraded to facilitate the transfer of LNG to shuttle tankers

Wärtsilä Inks Maintenance Deal with GasLog

LNG carrier GasLog Greece (Photo: Wärtsilä)

Wärtsilä said it has signed an engine maintenance agreement with Monaco-based GasLog LNG Services, covering eight LNG carriers operating on Wärtsilä dual-fuel engines.   The agreement, effective as of October 1, 2017, consists of Dynamic Maintenance Planning (DMP), technical support, secured availability of spare parts and specialized technical personnel around the clock as well as constant performance monitoring

Unifeeder Rolls out First Retrofitted LNG-Powered Shortsea Box Ship

Photo: Unifeeder A/S

 The world first shortsea container vessel with LNG is operated by Unifeeder. Unifeeder offer multimodal shipment by the world’s first LNG container vessel.    The environment has always been a major factor when the European industry choses partners. At Unifeeder, we are proud of being front runners operating and testing the first retrofitted LNG container vessel in the world, says Shortsea Director Niels Kjaer-Richardt

Chevron Starts LNG Output at Wheatstone Project

Wheatstone Project in Western Australia. Photo: Chevron Corporation.

Chevron Corporation announced it has started producing liquefied natural gas (LNG) at the Wheatstone Project in Western Australia. The first cargo is on track to be shipped in the coming weeks.   “First LNG production is a significant milestone and is a credit to our partners, contractors and the many thousands of people who collaborated to deliver this legacy asset,” said Chevron Chairman and CEO John Watson

LNG Market to Reach USD 20.6 bln by 2025

Phone: Exxon Mobil

 The global liquid natural gas (LNG) market is expected to reach USD 20.6 billion by 2025, growing at a CAGR of 12.7%, Research and Markets reported.   Rising focus on development and expanding gas pipeline infrastructure and growing demand for natural gas from downstream sectors is a crucial driving factor for the industry.   Decreasing LNG prices along with execution of favorable government rules and regulations

Yamal LNG to Ship Two LNG Cargoes in November

(File photo: PAO Sovcomflot)

The Russian Yamal LNG project will ship the first two cargoes of liquefied natural gas in November, followed by another four in December, Russia's customs service said on Tuesday.   The Yamal LNG project is co-owned by local Russian gas producer Novatek, as well as France's Total, China's CNPC and the Silk Road Fund.   Reporting by Oksana Kobzeva 

Statoil Selects Gas4Sea for LNG Bunkering in Rotterdam

Photo: Gas4Sea

Gas4Sea partners - ENGIE, Mitsubishi Corporation and NYK - have been selected by Norwegian multinational energy group Statoil to be their liquefied natural gas (LNG) marine fuel supplier in the port of Rotterdam, in the Netherlands, for four crude shuttle tankers.   The four planned dual fuel vessels are to come into service in early 2020 and will be operated by Statoil in Northern European seas.   Gas4Sea will supply LNG using the ENGIE Zeebrugge which started operations earlier

Skangas Delivers Milestone Fuel Change

(Photo: Skangas)

Skangas said its vessel Coralius has for the first time both cooled down tanks and delivered liquefied natural gas (LNG) in one operation. The receiving vessel LEG/C Navigator Aurora was supplied with just under 500 mt LNG in the middle of a voyage between Sweden and South Europe over October 7 and 8, 2017.   Going from using diesel oil to LNG requires time consuming but necessary process of cooling down operation of the receiving ship’s fuel gas tanks from ambient conditions to

FLNG Hilli Episeyo Departs Singapore Early

 Golar LNG Limited said today that its floating liquefied natural gas (FLNG) vessel Hilli Episeyo departed Singapore for Cameroon earlier than anticipated, leaving at 10 a.m. local time on October 12.   Hilli Episeyo was scheduled to leave Singapore between October 15 and October 20, but Golar LNG said a decision was made to complete LNG bunkering in Cameroon rather than in Singapore. The voyage to Cameroon is expected to take between 32 and 40 days.   

Cheniere Partners Completes Train 4 at the Sabine Pass LNG

Loading of the first commissioning cargo at the Sabine Pass LNG Terminal - February 2016. File Photo: Cheniere Energy, Inc.

 Cheniere Energy Partners has announced that Substantial Completion of Train 4 of the Sabine Pass liquefaction project in Cameron Parish, Louisiana (SPL Project) was achieved on October 9, 2017.    Commissioning has been completed and Cheniere Partners' EPC partner Bechtel Oil, Gas and Chemicals has turned over care, custody, and control of Train 4 to Cheniere Partners.   Under a sale and purchase agreement (SPA) with GAIL (India) Limited

SUNY Maritime College to Host LNG Conference

© Александр Беспалый / Adobe Stock

As demand for liquefied natural gas (LNG) grows, so does the need for LNG carriers. Many shipping companies in recent years have placed orders for LNG ships, and shipyards are busy building them. The maritime industry is also exploring ships powered by natural gas, rather than more traditional sources.   To address this topic, SUNY Maritime College will host a conference, LNG: Not just a cargo, on Thursday, November 2

MOL Names Newbuilding LNG Carrier 'Energy Liberty'

MOLs LNG carrier Papua. File Photo: MOL

 Mitsui O.S.K. Lines (MOL) has announced that on October 16, a naming ceremony for a newbuilding LNG carrier, jointly owned by MOL and Tokyo LNG Tanker, was held at the Tsu Shipyard of Japan Marine United Corporation.  Among the crowd of well-wishers on hand for the ceremony were Tokyo Gas Co., Ltd. President Michiaki Hirose, who gave the name Energy Liberty to the vessel, after which his wife cut the rope.  

Wood Wins LNG Platform FEED Contract

Pic:  John Wood Group PLC

 The Honghua Group Limited has awarded a $12 million front-end engineering design (FEED) contract to Wood for its liquefied natural gas (LNG) platform development in the West Delta area of the Gulf of Mexico.   The main objective of the FEED is to finalize the design of the world’s first offshore platform-based natural gas liquefaction and storage facility. Wood recently completed the pre-FEED for this project.  

Maritime Reporter Magazine Cover Oct 2017 - The Marine Design Annual

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