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Tuesday, October 23, 2018

Angola Lng News

Angola LNG Ramps Up Exports ahead of Maintenance

(File photo: Angola LNG)

Angola's sole liquefied natural gas (LNG) project is stepping up exports of cargoes in the spot market ahead of maintenance, three industry sources said on Tuesday.The plant has issued several tenders in the spot market for LNG cargoes to load in May and June, the sources said.Angola's Soyo plant, which has a capacity of 5.2 million tonnes of LNG per year, will be undergoing a planned shutdown for maintenance in July, with production expected to resume in early August, a company spokeswoman said.The spokeswoman declined to comment on the plant's recent rise in exports…

Total Launches Zinia 2 Development in Deep Offshore Block, Angola

Photo: Total

Total and its partners have taken the final investment decision to launch the Zinia 2 deep offshore development in Block 17, 150 kilometers offshore Angola. The Zinia 2 project will have a production capacity of 40,000 barrels per day (b/d), sustaining Pazflor field production, on stream since 2011. Zinia 2 is the first of several possible short-cycle developments on Block 17 that will unlock its full potential by connecting satellite reservoirs to the existing floating storage, production and offloading (FPSO) units. “Zinia 2 opens a new chapter in the history of Block 17.

LNG Prices Climb on Limited Supply

© donvictori0 / Adobe Stock

Asian spot liquefied natural gas (LNG) prices rose this week to their highest since February as buying interest from China remained firm and as supply is expected to be limited during maintenance in August.Spot prices for July delivery in Asia were at $9.60 per million British thermal units (Btu) this week, gaining 40 cents from the previous week and are at the highest for this time of the year since 2014.Higher oil prices had been deterring some buyers from snapping up cargoes in the spot market in recent weeks but some of them may now need to cover their requirements promptly…

Angola LNG to Charter Out Tankers After Pipe Rupture

Angola's new liquefied natural gas (LNG) export project aims to charter out its entire tanker fleet for at least a couple of months after a major rupture on a flare line crippled output at the $10 billion plant last month. The project partners led by U.S. oil major Chevron have approached shipbrokers to charter out all seven LNG carriers dedicated to Angola's liquefaction facility, three sources said. One of the tankers has already been chartered to a shipper and is due to load a cargo in Nigeria soon. "The other ships are currently being discussed ... some of the charters being discussed are at least until July or August," one of the sources said. Another source said Angola LNG had expressed interest in locking in any charters that become available.

LNG Prices Dip on Stock Builds as New Supply Looms

Asian spot LNG prices fell this week as top consumer Japan struggled with surplus stock and Chevron's new Gorgon project neared start-up, which will feed into an already oversupplied market. The big worry was about Russia's Sakhalin-2 export plant, hit by a production "glitch" on Jan. 26, a spokesman said, as talk circulated of potential cargo cancellations. Loading disruptions could tighten spot LNG prices for March delivery in Asia, trading lower at $4.90 per million British thermal units (mmBtu), from $5.10 per mmBtu the previous week. Most traders said Sakhalin's technical problems will mean cargo rescheduling but not cancellation. Gail India's purchase of a total of two cargoes from BG Group and Qatar's RasGas in February and March, respectively, signalled further bearishness ahead.

Vitol buys Angola LNG Shipment

File Image: CREDIT QGTC

Trading house Vitol purchased a liquefied natural gas (LNG) shipment from Angola's Soyo production facility following a tender, trade sources said.   The vessel is currently sailing off South Africa on a heading which indicates a delivery to India or markets in Asia, the sources said.   Reporting by Oleg Vukmanovic

May LNG Cargo Prices Fall on Waning Demand

File Image: a typical LNG carrier at sea (CREDIT: MISC)

Asian spot LNG prices edged lower this week amid thin trade for May cargoes and as focus shifts towards June supplies. Spot prices for May delivery of LNG in Asia fell by 35 cents to $5.40 per million British thermal units (mmBtu), as interest for May cargoes weaken because most end-users have already secured their necessary feedstock for the month. Prices for June delivery of LNG in Asia was pegged slightly higher at $5.50/mmBtu amid expectations that demand could return as North Asian buyers begin purchasing cargoes to meet summer demand.

Angola Ships First Offshore LNG Cargo

First LNG Shipment Ceremony: Photo credit Angola LNG

The first cargo was sold to Angola's state oil & gas company and is currently being shipped to Brazil by the  LNG carrier 'SS Sonangol Sambizanga', one of seven 160,000 m3 LNG vessels that are under long-term charter to the Angola LNG project. Angola LNG, the Soyo-based facility built to create value from Angola's offshore gas resources, confirms that production of liquefied natural gas (LNG) has safely commenced at the Angola LNG plant in Soyo and that its first cargo has been shipped, marking the first new LNG supply to come on-stream since 2010.

LNG Prices Retreat on Soft Demand

Asian spot prices for liquefied natural gas (LNG) extended their fall this week on slack demand, although production issues in Australia helped stem losses. LNG for May delivery in Asia traded at around $4.20 per million British thermal units (mmBtu), compared with $4.30 per mmBtu last week. LNG for June delivery was lower at around $4.00 per mmBtu. Mechanical problems at Australia's Gorgon LNG export terminal are expected to halt production for 30 to 60 days, a development which traders said had helped stop prices sliding further this week. "The impact is that the market hasn't come down quicker," a trader said. On the shipping side, however, it had contributed to a glut in tankers.

Energy: Uncertain Outlook for LNG Market

June saw more enquiries than May, and more were converted into fixtures, but Drewry’s LNG freight index was stubbornly unchanged according to the latest LNG Insight. However, market sentiment remains positive as Cheniere took three vessels on mid-term charter, plus options. One vessel from Dynacom was also added to the first of the two ME-GI ships from Teekay, while Inpext also announced newbuildings for Ichthys. But sentiments were less positive in Africa, where the Nigerian Maritime Administration blocked ship movements from the Bonny Channel as its relationship with Nigeria LNG became even more tense. African supply has already suffered as North African suppliers have been facing feedstock problems.

First Angola LNG Transits South Atlantic

Angolan LNG arrival: Photo credit Angola LNG

The 160,000 m3 cargo - which left Soyo aboard the SS SONANGOL SAMBIZANGA last month - has been safely unloaded at Petrobras' regasification terminal in Guanabara Bay, Rio de Janeiro. CEO, Angola LNG Marketing Ltd. said: "Our main priority is safe and reliable production and delivery of Angolan LNG to the world. At full production it is expected that over 70 cargoes per year will leave the Angola LNG plant, supplying 5.2 million tons per year of LNG, plus propane, butane and condensate.

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. "Shell doesn't want to be exposed so they've been covering their positions…

Boskalis Secures Dredging Work in Africa

Royal Boskalis Westminster N.V. has been awarded three dredging-related contracts on the African subcontinent with a combined value of approximately EUR 75 million. In Angola, Boskalis has been awarded a contract by Angola LNG Ltd. for dredging activities related to maintaining the access channel and turning basins of the Soyo LNG port. The project will be executed in joint venture and involves the removal of approximately 11 million cubic meters of sand and silt by medium-sized trailing suction hopper dredgers. Work is set to commence in the third quarter of 2015 and will be completed by the end of 2017. Boskalis also executed the initial capital dredging and reclamation works for this LNG port on behalf of Angola LNG Ltd. from early 2007 until mid-2009.

Signet Constellation and Signet Stars & Stripes

The Signet Constellation and Signet Stars & Stripes are the latest development in Robert Allan Ltd.’s RAstar series of tugs. These two powerful new escort tugs have been delivered to their owner’s – Signet Maritime Corporation of Houston, Texas. They were constructed to provide marine support services to Angola LNG Supply Services (ALSS) in the Port of Pascagoula, Mississippi. Designated as RAstar 3100s and designed by Naval Architects Robert Allan Ltd. of Vancouver, BC, they were constructed by Trinity Yachts LLC, at their Gulfport, MS shipyard.

Heavy-Duty Sea-Fire Systems Protect Crew and Tugs

To meet strict international codes, the marine transportation and logistics services company Signet Maritime Corporation recently installed Sea-Fire suppression and detection systems on three new tugs. Two of the vessels are 100' x 40' RAstar 3100 Class Terminal Support/Escort tugs. Built by Trinity Offshore, M/V Signet Stars & Stripes and M/V Signet Constellation were recently christened in Gulfport, Mississippi. The third, M/V Signet Weatherly, is a 108' x 40' 4" RAmparts 3200 ASD tug, built by Signet Shipbuilding, and was delivered March 10, 2012. Each tug is protected by a custom-engineered, automatic Sea-Fire FM-200 fire suppression system and FireStop Detection system. An EPA-approved alternative to halon, FM-200 is safe for people and equipment.

Vitol Signs Deal with Angola LNG

Photo: Vitol

Angola LNG (ALNG) and Vitol, the world’s largest independent energy dealer, have entered into a multi-year LNG sales agreement. Under the agreement, ALNG cargoes will be delivered to Vitol at destinations around the world. Commenting on the sales agreement, Artur Pereira, CEO, Angola LNG Marketing Ltd, said: “This sales agreement is an important step for Angola LNG and demonstrates our ability to respond to the needs of our customers and the market. Pablo Galante Escobar, Head of LNG, Vitol, said; “We are delighted to have entered into this agreement with Angola LNG.

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. Russia's Sakhalin II plant is tendering to sell three cargoes loading in September and one in October, relieving supply constrained markets.

Asian LNG Spot Prices Jump after European Gas Outages

© Wojciech Wrzesień / Adobe Stock

Asian liquefied natural gas (LNG) spot prices jumped this week in reaction to volatile price spikes on European gas markets and ongoing demand from the region's major consumers. Spot prices for January delivery hit $10.50 per mmBtu, 40 cents above last week, with February prices seeing similar levels. In a tumultuous week, European gas prices gyrated wildly following a flurry of major pipeline and production outages coinciding with high demand and freezing weather. The rally began…

Angola LNG Compressor Leak Delays Loading Program

A compressor leak at Angola's new liquefied natural gas (LNG) export plant has delayed loading programs and reduced output at the $10 billion project, which is due to shut for two months from July, a site manager said. Delays caused by a leaking valve at an air compressor unit has meant that LNG initially due to start being pumped aboard a waiting vessel on Tuesday this week has been pushed back to Monday next week. The leak will affect the export of Angola's third LNG shipment of 2014 for which it is currently collecting bids as part of a tender launched last week. "Five days ago an air compressor issue arose with one of the valves somehow leaking," a site source said.

Rig salvage work off Angola LNG to start in Q2

Salvage work to remove a capsized drilling rig lying in shallow waters off Angola's new liquefied natural gas (LNG) plant is due to start in the second quarter, Italian oil services firm Saipem said. The capsize of Saipem's Perro Negro 6 occurred last summer during efforts to bore a tunnel below an underwater canyon for a gas pipeline that would feed the liquefaction facility. Saipem has awarded the salvage operation to an as-yet unidentified company, a spokesman said. "The activities will start in the second quarter following the customary authorisation from local authorities," the spokesman said. The disaster killed one person and cut off feedgas from Chevron-operated blocks 0 and 14, which were to be linked to the plant this year via the canyon tunnel.

LNG Rebounds as Asian Buyers Replenish Inventory

file Image: A loaded LNG carrier transits the Med in a recent photo (CREDIT: Robert Murphy)

Interest for prompt spot cargoes still keen; demand could roll over to April. Asian spot liquefied natural gas (LNG) prices rebounded this week as persistently cold weather in North Asia forced buyers to enter the spot market to replenish inventory. Spot prices for March <LSG-AS> delivery in Asia climbed 40 cents to $10.60 per million British thermal units (mmBtu) this week, according to several LNG traders in Asia. Cargoes for delivery in the first half of March are trading between $10.70 and $11 per mmBtu while cargoes for the second half of the month are trading at just above $10 a barrel…

LNG Price Gains Face Ceiling as New Supply Emerges

Asian spot liquefied natural gas (LNG) prices rose this week on the back of rallying gas benchmarks in Europe and a production outage in Angola. The price of LNG for December delivery was $7.20 per million British thermal units (mmBtu), up around 25 cents from a week earlier, buoyed by gains in British month-ahead gas prices. UK December gas rose as much as 10 percent this week. Further LNG spot gains may be capped as prices close the gap with long-term, oil-indexed LNG contract levels and with new supply emerging from U.S. and Australian liquefaction projects, analysts and trade sources say. LNG importers arbitrage between buying shipments on spot markets or through their long-term contracts which tend to act as a ceiling on spot prices.

Salvage of Capsized Rig to Finish by March 2015

Photo courtesy of Saipem

Salvage work to remove a capsized rig lying in shallow waters offshore from Angola's new liquefied natural gas (LNG) export plant should be completed by March 2015, the company in charge of the operation said. The three-legged Perro Negro 6 drilling rig overturned last summer as it was being positioned to bore a tunnel for a gas pipeline key to feeding the $10 billion plant. Italian oil services firm Saipem chose South African company Smit Salvage, a unit of Netherlands-based dredging specialist Boskalis, to remove its rig.

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