Gas Demand News

27 Mar 2020

Fully Laden LNG Tankers Sit Idle Off Indian Ports after Force Majeure

© Wojciech Wrzesien/AdobeStock

At least five fully-laden liquefied natural gas (LNG) tankers are idling offshore India, as yet unable to discharge their cargoes, after importers there declared force majeure earlier this week, according to an analyst and shipping sources.Gas demand is falling globally amid the fast-spreading coronavirus which has capped industrial output, forcing LNG tankers in several regions to remain at sea fully laden with no immediate destination, the sources said.At least three major buyers in India…

25 Mar 2020

Indian LNG Importers Issue Force Majeure Notices

An LNG Tanker - Image by donvictori0 - AdobeStock

Indian liquefied natural gas (LNG) importers have started to issue force majeure notices as domestic gas demand slumps and as port operations in the country get hit by a lockdown to curb the spread of coronavirus, sources told Reuters."Demand has reduced drastically and it is likely to go down further, a company source with Gail (India) said."Only fertilizer, power and refineries are running at parcel loads.

04 Feb 2020

LNG Tanker Diverted from China in Sign of Weaker Demand

© nikkytok / Adobe Stock

A liquefied natural gas (LNG) tanker that had been heading to China has been diverted, data intelligence firm Kpler and two industry sources said on Tuesday, probably due to lower demand for the fuel as businesses are hit by the coronavirus outbreak.The Tangguh Foja tanker loaded a cargo at the Tangguh LNG plant in Indonesia last month and had been heading to China's Rudong terminal in Jiangsu province, Refinitiv shipping data shows.It was diverted towards the South China Sea on Jan.

17 Nov 2019

Exceptional Growth in LNG Trade, Says Awilco

 Pic: Awilco LNG

The exceptional growth in LNG trade recorded in the first half of the 2019 continued in Q3, says Awilco LNG Group, the Norwegian based fully integrated pure play LNG transportation provider.According to Fearnleys LNG total LNG trade is up about 13 % in the first nine months of the year vs last year. In line with normal seasonal patterns gas prices inched upwards in Q3 but remained historically low due to increased production and muted demand in the Far East.Due to a relatively mild winter reducing gas demand for power generation and higher nuclear power generation in Japan and South Korea…

12 Nov 2019

BP, Total Pact for Adnoc LNG Supply

Photo: ADNOC

The state oil giant Abu Dhabi National Oil Company (ADNOC) signed agreements with BP and Total to book the majority of its liquefied natural gas (LNG) production up to the first quarter of 2022.With the transactions, ADNOC LNG has continued to expand its footprint into new regions and markets, said a press release.“With these new supply agreements, ADNOC LNG has shown that it can react quickly and decisively to changing market conditions while ensuring the security and quality of delivery,’’ said ADNOC LNG CEO, Fatema Al Nuaimi.

06 Nov 2019

RWE Delivers its First LNG to Britain

Image: RWE

German utility RWE has delivered its first liquefied natural gas (LNG) cargo to Great Britain.The cargo, comprised of approximately 150 000 m3 of LNG, was regasified through a Milford Haven LNG Terminal, located close to RWE’s 2000 MW Pembroke B gas-fired combined cycle gas power plant (CCGT).The cargo has been sourced from the portfolio of RWE Supply & Trading, the subsidiary of RWE which is responsible for gas and LNG trading.The cargo was loaded from Sabine Pass Liquefaction Terminal in the Gulf of Mexico…

06 Nov 2019

GasLog Sees Tighter LNG Shipping Market

Pic: GasLog

GasLog, an international owner, operator and manager of liquefied natural gas (LNG) carriers, is predicting a tighter LNG shipping market, as increasing United States LNG output combines with a seasonal uptick in demand for gas, resulting in rising demand for shipping and higher utilization of the global fleet.These underlying trends in the LNG commodity and shipping markets point towards a structurally tighter market through 2020 and into 2021.As of October 28, 2019, the LNG fleet and orderbook (excluding floating storage and regasification units (FSRUs) and vessels with capacity below 100…

18 Oct 2019

Canadian E.Coast LNG Export Plans Progress Shell Deal

Pieridae Energy moved closer to building a liquefied natural gas (LNG) export terminal on Canada's East Coast after taking ownership of fields from Royal Dutch Shell which will feed gas into the plant, the company said.The Goldboro LNG terminal would be the first on Canada's East Coast and compete with the growing number of plants on the U.S. Gulf Coast, hoping its shorter distance to Europe and further west will help sell its LNG by cutting shipping costs.Pieridae said in a statement late on Thursday it had closed a C$190 million ($145 million) acquisition of Shell's gas assets in Alberta's Foothills region, giving it most of the gas…

01 Oct 2019

Europe Looks for Gas as Groningen Folds

Image: Rystad Energy

Europe’s energy landscape will be completely changed once the Dutch shut down the largest gas field on the continent years ahead of schedule, according to Rystad Energy.The Netherland recently announced that production at Groningen – Europe’s largest gas field – will be halted in 2022, eight years earlier than initially planned. However, despite the ambitious target of decommissioning the field by 2022, Rystad Energy expects that there could be some residual production from Groningen…

01 Oct 2019

Centrica Starts Buying Cheniere LNG

Image: Centrica

British multinational energy and services company Centrica has loaded its first liquefied natural gas (LNG) cargo from the fifth LNG train at the Sabine Pass liquefaction plant in Louisiana under the agreement signed in 2013 with Cheniere Energy Partners, L.P.The gas was loaded onto the GasLog Ltd chartered Skagen vessel over the weekend and will be transiting the Atlantic to land in Europe in early October.Commenting on the first cargo, Jonathan Westby, Co-Managing Director of Centrica Energy Marketing & Trading and Global Head of LNG…

10 Sep 2019

Natural Gas to be 29% of World’s Energy Supply by 2050

Image: DNV GL

The global oil demand will peak in the mid-2020s and gas demand will keep rising to 2033, says DNV GL.Gas demand will then plateau, and the fuel will remain dominant until the end of the forecast period in 2050, when it will account for over 29% of the world’s energy supply, it said.Significant investment will be required to ensure production meets demand, including realising the potential from stranded gas reserves and for reserve replacement. DNV GL forecasts global upstream gas capital expenditure to reach USD 737 billion (bn) in 2025…

28 Aug 2019

IMO2020: Asian Hydrogen Demand to Rise

"There are going to be some projects, many of which in southeast Asia, whereby refiners will be looking to take bottom of the barrel, residue products, and put them through a gasification process to produce hydrogen which can then be used to desulfurize the sulfur particulates. That's how they are going to address IMO 2020," Angel said.
Image: © Rob/Adobe Stock

Asia's hydrogen gas demand will rise as the region's oil refineries use the gas to produce low-sulfur fuel to meet new environmental regulations, the head of the world's largest industrial gas producer said."The demand for hydrogen has grown steadily over the years at a much faster rate than GDP growth," Linde Plc's Chief Executive Officer Steve Angel told Reuters ahead of the groundbreaking ceremony for Linde's $1.4-billion gas project on Singapore's Jurong Island."The twin drivers…

12 Aug 2019

Australia Set to be the King of LNG Exports

Graph Source: U.S. Energy Information Administration

Australia is on track to surpass Qatar as the world’s largest LNG exporter, according to Australia’s Department of Industry, Innovation, and Science (DIIS).Australia already surpasses Qatar in LNG export capacity and exported more LNG than Qatar in November 2018 and April 2019, said a release from U.S. Energy Information Administration (EIA).Within the next year, as Australia’s newly commissioned projects ramp up and operate at full capacity, EIA expects Australia to consistently export more LNG than Qatar…

08 Aug 2019

Cheap Gas Killing US Coal -Rystad

Graph: Rystad Energy

A new study revealed that coal power is being replaced by cleaner energy sources in the US – primarily due to an abundance of cheap natural gas.According to Rystad Energy, new renewable energy capacity from solar and wind is on the rise in the US, and April 2019 marked the first month when more electricity was generated in the country from renewable sources than from coal.However, the growing renewable energy sector alone is not wholly responsible for the on-going retirement of…

06 Aug 2019

Tenaris Tests in Culzean Project

Image: Tenaris

Tenaris has pushed the limits of its high pressure/high temperature (HP/HT) technology, and through precision in execution in testing, delivery, running and expert services, generated outstanding results for its work on Total’s Culzean project.According to the supplier of tubes and related services for the world's energy industry and certain other industrial applications the Culzean gas field is located in the challenging waters of the North Sea, about 145 miles off the coast of Aberdeen.The field began production in June and is anticipated…

31 Jul 2019

TGES Wins Taiwan Terminal FEED Work

Map: TGES

Tokyo Gas Engineering Solutions (TGES) has been awarded a deal by Taiwan's CPC Corporation (CPC) to conduct the front end engineering design (FEED) for an expansion project of its LNG receiving terminal at Yung An.According to a statement, TGES will carry out the FEED work this year. TGES claims gas demand in Taiwan is expected to increase quickly in coming years as gas fired power plants are being encouraged due to environmental concerns.Natural gas demand in Taiwan is expected to grow rapidly in coming years as promotes natural-gas fired power plants due to environmental concerns.

29 Jul 2019

North American LNG Exports to Grow: Study

Graph: McKinsey Energy

North American LNG exports will grow quickly until 2023 then plateau until a second wave of capacity comes online from 2025, McKinsey Energy Insights said in 2019 North American Gas Outlook.Global LNG supply overcapacity puts pressure on US liquefaction capacity utilization, which has among the highest marginal costs, it said.Balancing out global LNG overcapacity is equivalent to an average US LNG capacity utilization rate of 70% from 2019-21. Construction delays primarily at…

03 Jul 2019

European Gas Prices Fall To 10-Years Low

Graph: Rystad Energy

European natural gas prices reached their lowest in at least a decade, fueled by a battle for market share between Russia, traditionally the continent's supplier, and the U.S., whose gas exports have gained momentum on the back of the shale boom.European natural gas prices are at a historical low and below the cost of shipping gas from the US to Europe. In May, prices remained just above this floor, fetching around $4.20 per million British thermal units (MMBtu).But this floor seems to be crumbling…

23 Jun 2019

Hong Kong Firms Sign LNG Deals

Hong Kong's power firms Castle Peak Power Company Limited (CAPCO) and The Hongkong Electric Co., Ltd. (HKElectric) today announced that an agreement has been entered into with Shell Eastern Trading for long-term liquefied natural gas (LNG) supply for the Hong Kong Offshore Liquefied Natural Gas Terminal.A press release from CAPCO,  a 70:30 joint venture of CLP Power Hong Kong Limited ( and China Southern Power Grid International, said that after completion of the project, Shell will supply LNG to both CAPCO and HK Electric from its worldwide LNG portfolio.With more than 50 years of experience in the industry, Shell is a leading independent producer and marketer of LNG with a globally diversified supply portfolio.CLP Power Managing Director T K Chiang said…

21 Jun 2019

Pavilion Acquires LNG assets of Iberdrola

(L to R) Mr Frédéric H. Barnaud, Group CEO of Pavilion Energy and Mr Aitor Moso, CEO of Liberalised Business, Iberdrola. Photo: Pavilion Energy

Singapore-based LNG company Pavilion Energy said its wholly owned subsidiary Pavilion Energy Trading & Supply has agreed to buy Spanish energy company Iberdrola's portfolio of liquefied natural gas (LNG) assets.The portfolio comprises about 4 million tonnes per annum (mtpa) of Iberdrola's long-term LNG sale and supply contracts.It also includes long-term regasification of approximately 2 mtpa at the Grain LNG terminal (UK), regasification access in Spain and the Spanish-France border pipeline capacity, as well as the time-charter of a newbuild MEGI LNG vessel.

06 Jun 2019

Natural Gas Flaring Hits Record High

Graph: Rystad Energy

As spot prices in the region have remained near or below zero, natural gas flaring and venting in the Permian Basin in Texas and New Mexico reached a new all-time high in the first quarter of 2019, averaging as much as 661 million cubic feet per day (MMcfd).According to research conducted by Rystad Energy,  this widespread waste of a valuable commodity is the result of persistent infrastructure challenges, a lack of sufficient takeaway capacity and an unexpected outage on a key…

03 May 2019

Global LNG Imports Up in Q1 by 11%

Pic: GasLog Ltd

Despite the liquefied natural gas (LNG) demand in the first quarter of 2019 being negatively impacted by warmer than usual weather in the Northern Hemisphere winter, global LNG imports during the period totalled 88 million tonnes (mt), compared to 79 mt in the first quarter of 2018, or an increase of 11%, GasLog said quoting Poten.In particular, China’s LNG imports totalled 15.3 mt, 24% higher than the first quarter of 2018.Europe’s LNG imports in the first quarter more than doubled to 22 mt…

26 Apr 2019

GasLog Predicts LNG Spot Rate Recovery

Pic: GasLog LNG carrier

GasLog Partners, which owns, operates, and acquires liquefied natural gas (LNG) carriers under multi-year charters, said that the longer-term outlook for natural gas demand continued to strengthen in the first quarter of 2019.Despite LNG demand in the first quarter of 2019 being negatively impacted by warmer than usual weather in the Northern Hemisphere winter, global LNG imports during the period totalled 88 million tonnes (mt), compared to 79 mt in the first quarter of 2018, or 11% growth, according to Poten.In particular, China’s LNG imports totalled 15.3 mt, 24% growth over Q1 2018.

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