No New Australian LNG Projects Doesn't Mean No New LNG
Conventional wisdom in the liquefied natural gas (LNG) sector is that no new projects will be built for several years, given the vast cost can't be reconciled with the current low prices. This view has led some in the industry to predict that the market will flip back to a structural shortage sometime in the early to mid-2020s, once again sending prices soaring as new supply takes so long to be built and become operational. The cancellation or deferment of investment decisions on several projects in Australia, Canada, the United States and elsewhere seems to perfectly illustrate the view that no new LNG will be coming to market once the plants currently under construction are completed.
LNG Could Follow Crude Oil's Lead: Russell
In contrast to the carnage in crude oil markets, liquefied natural gas (LNG) prices in Asia have enjoyed relative stability for the past three months, but it's unlikely the calm will persist much longer. Spot Asian LNG prices <LNG-AS> ended last week at $5.60 per million British thermal units (mmBtu), about 28 percent below the recent peak of $7.80 reached on Nov. 22. In contrast, Brent crude oil has dropped 46 percent from its recent peak in early October to trade currently around $28.55 a barrel. The relative outperformance of spot LNG holds over the longer term as well, with the price of the super-chilled fuel having dropped 68 percent since its all-time high of $20.50 per mmBtu in February 2014.
First LNG Loaded from QCLNG Project in Australia
BG Group began loading the first cargo of LNG from its Queensland Curtis LNG (QCLNG) facility to the vessel Methane Rita Andrea December 28. The second cargo of LNG from the facility will be loaded onto the Methane Mickie Harper, which is expected in Gladstone in the first week of January. QCLNG is the world's first LNG project to be supplied by coal seam gas. The start of production from the plant's first LNG train is the result of more than four years of development and construction on Curtis Island.
BG loads First QCLNG Cargo
BG Group today announced that it has been loading the first cargo of LNG from its Queensland Curtis LNG (QCLNG) facility since 28 December. The vessel being loaded is the Methane Rita Andrea. The second cargo of LNG from the facility will be loaded onto the Methane Mickie Harper which is expected in Gladstone in the first week of January. QCLNG is the world's first LNG project to be supplied by coal seam gas. The start of production from the plant's first LNG train is the result of more than four years of development and construction on Curtis Island.
China’s Growth Plans are Positive for Global Shipping
China’s aim of 7.5% GDP growth for 2014 is positive news for the shipping market – in particular, dry bulk, the Baltic and International Maritime Council (BIMCO) said in a report published today. Despite being a little down on the 2013 GDP growth of 7.7%, BIMCO said the growth target of 7.5% set by China’s Premier Li Keqiang at his first appearance at China’s annual parliamentary session bodes well for shipping, trade and commodity demand in 2014. In 2013, Chinese seaborne imports surpassed the 2 billion metric tons, mark according to CRSL.
Trellborg Supplies Fenders to Australian Developments
Trelleborg Marine Systems has been awarded three contracts to supply fender systems to all three liquefied natural gas (LNG) projects on Queensland’s Curtis Island, Australia. Having already been awarded the contracts to supply docking and mooring equipment and monitoring software earlier in the year, Trelleborg has now been chosen to supply the Queensland Curtis LNG, Gladstone LNG and Australia Pacific LNG projects with SCN Super Cone and ANP Arch Fender Systems. Queensland Curtis LNG is the world's first project to turn coal seam gas into LNG, Trellborg said.
Strategic Marine Wins Offshore Cargo Catamaran Contract
Western Australian (WA) ship builder Strategic Marine has signed a contract with repeat client Offshore Plant Hire for the construction of a 24 meter heavy duty offshore cargo catamaran. The catamaran will be built at Strategic Marine's Singapore facility which is nearing the end of a major expansion program which will see the shipyard more than double its capacity. The vessel will be completed in the first quarter of 2013 and is expected to operate in WA’s North West. The contract follows the delivery of a 27 meter work barge to Offshore Plant Hire earlier in 2012.
Australia to be Largest Gas Exporter?
Oil and gas professionals tip Australia to become world’s largest gas exporter by 2030. Delegates at the 2012 Australasian Oil and Gas Conference forecast huge growth in Australia’s role in the energy markets, tipping the country to become the largest gas exporter by 2030, according to a poll conducted by GL Noble Denton. Australasian Oil and Gas Conference, Perth – 23 February 2012: Oil and gas industry professionals are confident in Australia’s ability to become the world’s…
Confirmation Arrow Energy to Acquire Bow Energy
Australia’s Arrow Energy Holdings Pty Ltd confirmed that it has entered into a Scheme Implementation Agreement with coal seam gas company Bow Energy Ltd under which Arrow has agreed to acquire all of the shares in Bow for a cash consideration of A$1.52 per Bow share. The offer values Bow at A$535 million. Bow Board members have unanimously recommended shareholders vote in favour of the offer, in the absence of a superior proposal and subject to an independent expert concluding that the offer is in the best interests of Bow shareholders. The offer allows Bow shareholders to realize the value of their Queensland coal seam gas (CSG) assets, and is subject to customary conditions including regulatory and Court approvals, and Bow shareholder approvals.
WESMAR’s Commercial Bow Thrusters Part of Huge Australian LNG Project
WESMAR has shipped six of its large commercial bow thrusters for installation on three, 80-meter Ropax (Ro-Ro) vessels that will be working on a liquefied natural gas (LNG) project of historic proportion in Australia. The vessels are part of the Curtis Island LNG project and will be working off Gladstone near Curtis Island. The order is from Ultimate Marine Power, WESMAR’s dealer along the Australian East Coast. According to the Owner/Director of that company, Dave Murray, two each of the six WESMAR 180 KW AC V2-34 (250 HP) Bow Thruster systems will be installed on each Ropax vessel.
GL Noble Denton wins LNG Project Deal
QGC, a leading Australian coal seam gas explorer and producer, has selected GL Noble Denton to provide verification services for the development of the Queensland Curtis Liquefied Natural Gas (LNG) project, which is expected to supply more than 8.5 million tonnes of LNG per annum through the development of two LNG trains. GL Noble Denton's experts will oversee the pipeline construction portion of the project over a two-year period. The company will supply inspection services for the installation of the 540 kilometre underground line between natural gas fields in Australia's Surat Basin and a natural gas liquefaction plant on Curtis Island near Gladstone on Queensland's coast.