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Gas Demand News

03 May 2021

LNG Tankers Diverted from India Ports as Surging COVID-19 Cases Hit Demand

Credit: alexyz3d/AdobeStock

Liquefied natural gas (LNG) cargoes are being diverted away from ports in India as surging coronavirus cases there hamper domestic gas demand, trade and shipping sources said on Monday.Six LNG tankers diverted away from India since April 20, changing the destination to northeast Asia, Europe and Kuwait instead, said Rebecca Chia, an analyst with data intelligence firm Kpler.Further diversions and reduction in shipments to India are expected this week, trade sources told Reuters…

12 Nov 2020

Sanctions on Nord Stream 2 Pipeline Included in Annual U.S. Defense Bill

Akademik Cherskiy, - Credit: Sergei Skriabin/MarineTraffic.com

Sanctions that could hinder one of Moscow's most important projects in Europe, the Nord Stream 2 natural gas pipeline, have been included in the annual U.S. defense policy bill, two congressional aides said on Wednesday.The sanctions in the compromise National Defense Authorization Act between lawmakers in the House and Senate would penalize companies facilitating the construction of the pipeline, including ships helping operations to lay pipelines or moving rock formations on…

23 Jun 2020

Buyers of U.S. LNG to Cancel 40-45 Cargoes

An LNG Tanker Illustration - Credit: alexlmx/AdobeStock

Buyers of liquefied natural gas (LNG) are expected to cancel 40 to 45 cargoes for August loading from the United States due to a slow recovery in Asian gas demand and record-high European gas stocks, market sources said on Monday.The exact number of cancellations is yet to be confirmed as the deadline of some projects is on Monday, but six of the sources said they expected the number of August cancellations to be close to 40 to 45 cargoes, the same number that was canceled for July loading.That followed at least 20 to 30 U.S.

15 Jun 2020

Market in Focus: Gas Ships

© Wojciech Wrzesień/AdobeStock

Liquefied natural gas (LNG) shipping hasn’t been able to avoid the negative impact of COVID-19 as gas demand fell during the first quarter of 2020.The residential sector recorded the largest drop in consumption this year compared to 2019 which wasn’t helped by the mild winter seen in the US. The shut-downs of major economies and more specifically shut-ins of cargoes due to the historically low gas prices means we have basically witnessed demand destruction.LNG rates have fallen since the beginning of the year with the one-year time charter dropping by 80%.

26 May 2020

OGA: UK North Sea Gas Less Carbon Intensive than Imported LNG

An LNG Tanker - Image by Igor Groshev / AdobeStock

Gas produced from the offshore platforms in the UK North Sea is less carbon-intensive than LNG imported in the UK, the UK oil and gas regulator OGA said Tuesday.According to the OGA analysis, the production of natural gas from the UK Continental Shelf (UKCS) creates less than half as much greenhouse gas as imported Liquefied Natural Gas (LNG).Per the OGA, gas extracted from the UKCS has an average emission intensity of 22 kgCO2e/boe; while imported LNG has a significantly higher average intensity of 59 kgCO2e/boe.Worth noting…

07 May 2020

Virus Lockdowns Pummel Global Gas Demand, Force LNG Output Cuts

Lockdowns to slow the coronavirus pandemic are pummelling gas demand in the world's biggest buyers of liquefied natural gas (LNG), pushing Asia's spot prices to record lows and forcing some suppliers to start cutting output. Economies worldwide have ground to a halt as virus containment measures have taken their toll, slashing gas demand for power generation, heating, cooking, vehicles and chemical manufacture. The world's biggest LNG markets - Japan, China, South Korea, and India - are all seeing a drop in demand. Asia's spot LNG prices dropped to $1.85 per million British thermal units (mmBtu) last week, the lowest ever, as cargoes have flooded the market. "At prices in the $2/mmBtu range ... some producers are getting close to not recovering cash costs of their operations.

30 Apr 2020

LNG Carriers Build Up Around Virus-hit Europe

© Maciej Bledowski / Adobe Stock

Liquefied natural gas (LNG) cargoes are piling up off the shores of Europe as the coronavirus pandemic severely disrupts gas demand, leading to delays in tanker discharges and a rise in the number of vessels used as floating storage, analysts said.Lockdowns due to the virus have led to a slump in industrial gas consumption worldwide, reducing demand for LNG and causing cargo deferrals, delays and cancellations, initially reflected by a build up of floating cargoes in the Far East and India.Despite some vessels managing to unload as lockdowns ease…

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

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, LNG imports decreased by 8 and 9 % y-o-y Jan-Sept respectively…

12 Nov 2019

BP, Total Pact for Adnoc LNG Supply

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. “With the support of our shareholders, we have maximized access to new markets with strong LNG growth potential”“We…

06 Nov 2019

RWE Delivers its First LNG to Britain

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, USA and transported by RWE Supply & Trading to Great Britain on the Gaslog Savannah LNG carrier.Once regasified, the LNG will meet a significant proportion of any gas consumption needs of Pembroke Power Station. On a typical day Pembroke burns 8,000,000 m3 of natural gas.

06 Nov 2019

GasLog Sees Tighter LNG Shipping Market

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 100,000 cbm) stood at 507 and 110 vessels, respectively…

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

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 up to 2030 as it is technically challenging to completely shut down production in such a short timeframe.The drastic drop in output from Groningen will redefine the European energy landscape.

01 Oct 2019

Centrica Starts Buying Cheniere LNG

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, said:  â€śThis cargo represents a significant milestone in Centrica’s involvement with LNG, which goes…

10 Sep 2019

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

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, and USD 587 billion in 2050.According to  2019 Energy Transition Outlook, a report by DNV GL, unconventional onshore gas will increase from 2019 right through to the end of the forecast period, growing by 68% from 2017 production levels.

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

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, it said.Australia’s LNG export capacity increased from 2.6 billion cubic feet per day (Bcf/d) in 2011 to more than 11.4 Bcf/d in 2019.

08 Aug 2019

Cheap Gas Killing US Coal -Rystad

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 coal-fired power plants and the essential moratorium on the construction of new coal plants.“The US thermal coal industry is in severe trouble. However, coal’s demise as the fuel of choice for power generators is primarily due to the upsurge of cheap natural gas and not renewable sources of power…

06 Aug 2019

Tenaris Tests in Culzean Project

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, at peak, to provide five percent of the United Kingdom’s gas demand.Tenaris supplied TenarisHydril Blue Max and TenarisHydril Blue Heavy Wall connections…

31 Jul 2019

TGES Wins Taiwan Terminal FEED Work

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. Such movements have supported this CPC’s expansion…

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