Marine Link
Tuesday, October 24, 2017

Sabine Pass Lng

Cheniere Delays First LNG Shipment from Sabine Pass Terminal

Sabine Pass LNG Terminal. Photo by Cheniere Energy Partners

 The Sabine Pass liquefied natural gas (LNG) terminal will ship its first cargo later than initially thought, according to an announcement by Cheniere Energy Partners LP.   The Houston-based company now forecasts that its first shipment will not leave its Sabine Pass plant until late February or March 2016, a slip from a planned January departure.   Construction of the first liquefaction train at the terminal was completed ahead of schedule, Cheniere said, but the firm said that new instrumentation issues discovered during commissioning will take several weeks to address.    "We are now expecting the first cargo in late February or March," said Neal Shear, Interim President and CEO. "Construction for Trains 2-5 continues to be on an accelerated schedule and these trains are expected to come on-line on a staggered basis.”   Despite the delay, the Sabine Pass facility is slated to be the first in the lower 48 states to ship LNG overseas.   Other projects have faced delays in loading their first commissioning cargoes. Australia Pacific LNG, a project similar to Sabine Pass, where exports that were scheduled to begin in mid-June weren’t shipped until earlier this month.   Cheniere Partners owns 100 percent of the Sabine Pass LNG terminal located on the Sabine-Neches Waterway less than four miles from the Gulf Coast.   

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

Chicago Bridge Wins $1B Contract

Chicago Bridge & Iron Co. N.V. on August 1 was awarded a contract, valued at more than $1b, by Golden Pass LNG Terminal LLC for the construction of a liquefied natural gas import terminal near Sabine Pass, Texas. The engineering firm said the terminal, which is expected to start up in 2009, will have import capacity to process 15.6 million tons of LNG per year. The project is expected to create more than 1,000 construction jobs in southeast Texas. (Source: Reuters)

Teekay Charters Out Two LNG Newbuildings

Teekay LNG Partners signs two, 5-year time-charter contracts with Cheniere Marketing to provide Liquefied Natural Gas (LNG) transportation services. The fixed-rate time-charter contracts will be serviced by the two 173,400 cubic meter LNG carrier newbuildings ordered by Teekay LNG in December 2012. The newbuildings are currently under construction by Daewoo Shipbuilding & Marine Engineering of South Korea and are scheduled to be delivered in the first half of 2016.

US to Export LNG to China

Photo: Cheniere Energy, Inc

 Buyers from China are looking at long term liquefied natural gas (LNG) supplies from US firm Cheniere Energy, news agency Reuters quoted a company official as saying.   This would be the first LNG deal between the world's two biggest energy users. Cheniere Energy is set to become the first U.S. LNG exporter, with shipments to start by the end of this year.    However, no Chinese companies have signed up for any U.S. LNG cargoes so far.  

First US LNG Shipment Goes to China

Maran Gas Apollonia transiting the Expanded Panama Canals Cocoli Locks (Photo: Panama Canal Authority)

The first liquefied natural gas vessel from the lower 48 U.S. states is on its way to China, according to a Reuters interactive map on Friday, the latest sign that the expanded Panama Canal is allowing U.S. exports to reach the world's top LNG buyers in Asia.   Royal Dutch Shell's Maran Gas Apollonia loaded up with gas at Cheniere Energy Inc's Sabine Pass LNG export plant in Louisiana, the map showed. It passed through the canal earlier this week and was moving northwest up the west

Collision in Sabine Ship Channel

A Coast Guard crew passes the capsized 101-foot crew boat Rene I after it was involved in a collision with the 784-foot tanker Genmar Strength in the Sabine Ship Channel. The boat sank between the jetties where the channel enters the Gulf of Mexico, approximately two miles east of Sabine Pass, Texas. Coast Guard crews rescued three of the four men aboard the Rene I and the crew of a Sabine pilot boat rescued the fourth crewmember

U.S. DofE Likely to Grant More LNG Export Permits

The Department of Energy is likely to approve additional permits this year to companies looking to export liquefied natural gas more broadly, reports Market Watch, citing Morgan Stanley. Freeport LNG has recently received DOE approval to export LNG to countries without a free trade agreement with the U.S.. Only one other project — Cheniere Energy Inc.’s Sabine Pass — has been granted that coveted permit, informs the Wall Street Journal Market Watch report.

First US Shale Gas Exports to Sail into Oversupplied Market

When Cheniere Energy opened a new liquefied natural gas import terminal in Louisiana in 2008, a U.S. shale drilling boom quickly made it obsolete. Seven years on, with the Houston-based firm about to open a landmark export plant on the same site, the timing, again, is far from ideal.   A Reuters analysis shows that a slump in oil prices and global abundance of LNG threaten to undercut the economics of U.S. gas exports

LNG-Prices Slide, Middle East Boosts Imports

Photo: Cryptome

 The new new supply of liquefied natural gas (LNG) from Russia's Sakhalin plant and weakening demand from Egypt helped snap a months-long rally. Hence Asian spotLNG prices fell this week, reports Reuters.   Meanwhile, countries in the Middle East and North Africa led by Egypt, Kuwait and Morocco are boosting liquefied natural gas import capacity, taking advantage of low prices to meet rising energy demand, according to a Bloomberg report.  

US LNG Exports to Increase: EIA

© Wojciech Wrzesien / Adobe Stock

 U.S. Energy Information Administration (EIA)'s latest Short-Term Energy Outlook projects that the United States will export more natural gas than it imports in 2017.    The U.S. has been a net exporter for three of the past four months and is expected to continue to export more natural gas than it imports for the rest of 2017 and throughout 2018.    The nation’ status as a net exporter is expected to continue past 2018 because of growing U.S

Lithuania Receives First U.S. LNG Cargo

File Image: A typical LNG Carrier at Sea (CREDIT: QGTC))

Lithuania received its first spot shipment of liquefied natural gas (LNG) from the United States on Monday, the result of a deal aimed at reducing dependence on Russia and consolidating relations with Washington amid increased tension in the region.   Russia's annexation of Crimea in 2014 has spooked the Baltic states, once ruled from Moscow but now members of both NATO and the European Union.   "This is crucially important for the whole region

Netherlands to Receive LNG from Sabine Pass Plant

File Image: A typical LNG Carrier at Sea (CREDIT: MISC)

The Netherlands will receive its second-ever liquefied natural gas (LNG) shipment from Cheniere Energy's Sabine Pass export facility in the United States on Oct. 6, according to shipping data.   The vessel, with a capacity of 166,031 cubic metres, is currently berthed at Sabine Pass, live ship-tracking data shows.   The first delivery from Sabine Pass to the Gate terminal in Rotterdam arrived on June 8 aboard the Arctic Discoverer, a Thomson Reuters analyst said.  

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

GAIL's First Time-Swap Deal for US LNG with Gunvor

Image: GAIL (India) Limited

 Indian state-owned gas company GAIL has reached a deal with Swiss energy trading firm Gunvor to swap American liquefied natural gas (LNG) cargoes for shipments from other sources, Reuters reported.   It is the first time-swap agreement by GAIL, which is trying to juggle its LNG portfolio to cut costs for price-sensitive Indian customers after a sharp fall in Asian spot prices made its U.S. gas unattractive.   

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.

US Authorizes Non-FTA LNG Export from Golden Pass

Photo: Golden Pass LNG Terminal

The U.S. Department of Energy announced that it has signed an order authorizing Golden Pass Products LLC to export domestically produced liquefied natural gas (LNG) to countries that do not have a free trade agreement (FTA) with the United States. Golden Pass is authorized to export LNG up to the equivalent of 2.21 billion cubic feet per day (Bcf/d) of natural gas to any non-FTA country not prohibited by U.S. law or policy from the Golden Pass Terminal near Sabine Pass, in Jefferson County

Qatar LNG Not Affected by Arab States Tension -Exxon

Exxon Mobil Corp said on Tuesday that production and exports of liquefied natural gas from Qatar have not been affected by rising diplomatic tensions in the Middle East.   Saudi Arabia, the United Arab Emirates, Bahrain and Egypt on Monday cut ties with Qatar, accusing the country of supporting extremism. Qatar denies the allegations.   The growing diplomatic rift has raised concerns about global access to Qatar's LNG

DNV GL Grants AiP for Kawasaki's New MOSS Tank

KHIs new non-spherical (MOSS) tank is a IMO Independent Type B LNG tank that has been developed for use in 180KM3 LNG carriers. (Photo:  KHI)

DNV GL has awarded Kawasaki Heavy Industries, Ltd (KHI) an Approval in Principle (AiP) for its newly developed non-spherical (MOSS) tank. The new tank is a IMO Independent Type B LNG tank that has been developed for use in 180,000 m3 LNG carriers designed to pass through the new Panama Canal.   KHI said that the new tank has the same reliability as a spherical (MOSS) tank, but has an increased cargo capacity of 15 per cent

Knutsen Orders Four ME-GI Engines

Image: MAN Diesel & Turbo

Norwegian operator Knutsen OAS Shipping has ordered four MAN B&W 5G70ME-GI engines with EGR systems in connection with the construction of two 180,000 m3 liquefied natural gas (LNG) tanker newbuildings. Upon delivery in 2020, the vessels will transport cargoes worldwide for two Spanish utility companies.   According to the engine’s manufacturer MAN Diesel & Turbo, the order follows the increasingly popular path initiated by Gas Natural Fenosa

KOGAS to Receive first Cheniere LNG Cargo

File Image: A typical LNG Carrier at Sea (CREDIT: MISC)

KOGAS to receive first LNG cargo from Cheniere in July; this marks start of 20-year supply contract.   Korea Gas Corp (KOGAS) will early next month receive its first liquefied natural gas (LNG) cargo under a long-term supply deal with U.S. exporter Cheniere Energy, two sources at the South Korean company said on Friday.   The 74,000-tonne LNG cargo was loaded from Cheniere's Sabine Pass export terminal in Louisiana and is scheduled to arrive at the port of Tongyeong

Global LNG Deals Set Bullish Tone as Peru Export Halt Tightens Market

© Wojciech Wrzesien / Adobe Stock

Asian spot LNG prices stepped higher this week, shrugging off months of weakness, as Royal Dutch Shell replaced lost output from its Peru plant via spot markets and as a flurry of higher-priced deals surprised traders.   Peru's liquefaction plant suspended loadings for several weeks without explanation, exerting strain on Shell, which is the sole exporter of Peruvian LNG and was forced to pick up replacement supply on spot markets.  

GasLog Updates LNG Market Outlook

Photo: GasLog

 During the quarter ended June 30, 2017, there was continued momentum in the start-up of new LNG liquefaction capacity with the fourth train at Sabine Pass commencing commercial production.    Later this year, Wheatstone in Australia and Cove Point on the east coast of the U.S. are expected to start production. In total, Wood Mackenzie estimates that projects with approximately 28 million tonnes per annum ("mtpa") of nameplate capacity will come online in 2017

First of Yamal LNG Tankers Starts Navigation via the NSR

Christophe de Margerie. Photo: Total

 The first Arc7 ice-class LNG tanker “Christophe de Margerie” has entered the Kara Sea and has started its first LNG cargo voyage through the Northern Sea Route (NSR).    The subleased tanker will go through the NSR without the escort of icebreakers and will deliver LNG from Norway to South Korea in 15 days.   The utilization of the route from Europe to Eastern and South-Eastern Asia through the NSR halves the transportation time to market compared to the

Cheniere to Completion 4th LNG Unit Soon

Photo: Cheniere Energy, Inc

 Houston-based energy company Cheniere Energy said that it is nearing completion of its fourth liquefied natural gas unit at its massive Sabine Pass terminal in Louisiana near the Texas border.  The company, primarily engaged in LNG-related businesses, owns and operates the Sabine Pass LNG terminal in Louisiana.   "Our long-term contract with Gas Natural Fenosa commenced and first LNG production occurred from Train 4 at Sabine Pass," said Jack Fusco

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