SEA\LNG Welcomes Vancouver Fraser Port
The Vancouver Fraser Port Authority has joined SEA\LNG, the multi-sector industry coalition aiming to accelerate the widespread adoption of liquefied natural gas (LNG) as a marine fuel. Vancouver Fraser Port is the first North America port member to join the industry group.The Vancouver Fraser Port Authority is the federal agency of the Port of Vancouver, Canada’s largest port, and the fourth port member to join the coalition, alongside Port of Rotterdam, Yokohama-Kawasaki International Port Corporation (YKIP), and most recently the Maritime and Port Authority of Singapore (MPA).
Equinor Sells Natural Gas Worth USD26bln in 2018
Norwegian energy company Equinor has announced its 2018 sales of natural gas totalled $26bn, an increase of 29% from 2017.Equinor sold a total of 100 billion cubic metres (bcm) of gas worldwide in 2018. The company is the second-largest gas supplier to Europe, as well as the largest producer of natural gas on the Norwegian Continental Shelf (NCS)."As more countries prepare for the energy transition, Equinor sees strong market opportunities for gas and expects global demand to grow by around 10% towards 2030…
US to Become Third Largest LNG Exporter in 2019
The coming year is expected to make the U.S. the third largest exporter of liquefied natural gas (LNG) in the world, creating jobs stateside while reducing emissions and providing reliable energy to countries around the world, said American Petroleum Institute (API).API, Center for LNG, and LNG Allies, the three national trade associations specializing in U.S. LNG, today issued a first-of-its-kind joint statement on the extraordinary developments expected in U.S. LNG in 2019.Todd Snitchler…
EU Approves State Aid for Lithuania’s Klaipėda LNG Terminal
The European Commission said that the EC has approved under EU State aid rules the compensation granted by Lithuania to LITGAS for supplying a mandatory quantity of liquefied natural gas (LNG) to the LNG terminal in Klaipėda.In November 2013, the Commission approved under EU State aid rules an aid scheme to support the construction and operation of a liquefied natural gas (LNG) terminal at the Klaipėda seaportin Lithuania The LNG terminal has, since its construction, played a vital role in the diversification of gas supplies and security of supply in Lithuania.In June 2018…
Norway Expects Gas Export Price to Fall Until 2021
Norway expects its gas export price to fall by more than a quarter by 2021 as increasing global liquefied natural gas (LNG) supplies outstrip growth in European demand.Norway's 2019 fiscal budget on Monday showed it expects the average price for Norwegian gas to fall to 2.05 crowns/standard cubic meter (sm3) and reach a low of 1.70 crowns/sm3 by 2021, then rebounding in 2022.The projections are higher than what Norway, Europe's second largest gas supplier after Russia, was expecting in its revised budget in May, when 2018's price was seen at 1.8 crowns/sm3 and 2019 just below 1.5 crowns.The av
Qatargas, PetroChina Sign 22-Years LNG Supply Deal
Qatargas, the world’s largest LNG producer, has announced a long-term Sale and Purchase Agreement (SPA) with PetroChina International Company Limited, a unit of PetroChina Company Limited (PetroChina), to supply China with around 3.4 million tonnes of liquefied natural gas (LNG) per annum.Under the 22-year SPA, which ends in 2040, Qatargas will supply LNG from the Qatargas 2 project, a joint venture between Qatar Petroleum, ExxonMobil and Total, to different receiving terminals across China…
Equinor to Boost Drilling to Extend Norwegian Shelf Life
Oil producer Equinor aims to boost the recovery rate from its Norwegian fields to well above the global average to extend production from the mature basin beyond 2030.Equinor announced plans on Tuesday to drill up to 3,000 wells offshore from its native Norway in coming decades - almost as many as it has drilled since its startup in 1972 - to mitigate declining output from older fields, and extend the production lifetime of more than 20 installations.The company said it remained on track for to keep profitable oil and gas production in Norway towards 2030…
Hoegh LNG to Supply FLNG Terminal to Australian Import Project
Norway's Hoegh LNG has won a tender to supply a floating LNG import terminal for a consortium aiming to import liquefied natural gas to Australia's east coast from 2020 in a push to boost local supply.Australian Industrial Energy, a consortium that includes Japan's JERA and Marubeni Corp, said on Monday it signed an agreement giving it the right to lease one of Hoegh LNG's floating storage and regasification units (FSRU), to be docked at Port Kembla.The project needs approvals from the state of New South Wales, which is evaluating the proposal on a fast track as "critical state significant inf
Plans for Another South Australia LNG Import Plant in the Works
A private firm is looking to import liquefied natural gas (LNG) to South Australia starting in 2020, around the same time as two other proposed import projects, looking to fill a supply gap as domestic gas gets sucked into LNG exports.Venice Energy, set up by former BHP Billiton executives, plans to submit a development application to the South Australian government within the next month to park a floating storage and regasification unit (FSRU) in Port Adelaide, Managing Director Kym Winter-Dewhirst said.If regulatory approvals come through by March, construction could begin by June 2019, he told Reuters in an interview. The project would be funded partly by Venice's owners…
Hundreds of Oil Workers Strike in Norway
Hundreds of workers on Norwegian offshore oil and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, leading to the shutdown of one Shell-operated field and helping send Brent crude prices higher.One union said hundreds more workers would join the strike on Sunday if an agreement over union demands for a wage increase and pension rights was not reached.Royal Dutch Shell said that due to the strike it was temporarily closing production at its Knarr field, which has a daily output of 23…
ExxonMobil Considers Importing LNG to Australia
ExxonMobil Corp, southeastern Australia's biggest gas supplier, is considering importing liquefied natural gas (LNG) to help plug a looming gas shortage from 2021 and protect its market share.The move would compete with plans by both Australia's no.2 energy retailer AGL Energy to start importing LNG by 2021 and a consortium involving Japan's JERA to start imports from 2020.ExxonMobil is also stepping up exploration off the coast of Victoria and considering developing a gas field called West Barracouta close to an existing field…
Copenhagen Malmo Port Begins LNG Bunkering
Copenhagen Malmö Port (CMP) now offers bunkering of Liquefied Natural Gas (LNG). First off was the vessel Ireland, which unloaded cement in Malmö. In connection with this she was provided with LNG via tanker lorries. It's about bunkering where safety requirements are extra tough. The bunkering at the end of May was made possible through close cooperation between the LNG supplier SkanGas, the client company Cementa, and CMP. Together the companies have investigated risks, taken precautionary measures and developed routines for bunkering LNG at CMP.
LNG is the Bridge to ‘Zero Emissions’ Shipping
The advent of industry wide tightening of allowable sulfur emissions is getting nearer. Suddenly, with the deadline now little more than one year away, the countdown clock will very soon be ticking much louder. Simply stated, the cap on allowable sulfur content in marine fuels, presently at 3.5 percent in many geographical regions, will be reduced to 0.5 percent in January 2020. The 0.1 percent sulfur cap, already in effect since 2015 in coastal Emissions Control Areas (ECAs) in Europe and North America…
Norway Expects Gas Export Prices to Slip in 2019
Prices of Norwegian gas exports are likely to rise slightly this year amid strong demand, but will fall back in 2019 as liquefied natural gas (LNG) deliveries in Europe are expected to increase, the government said in its revised budget on Tuesday.Europe's largest gas supplier after Russia forecast gas export prices would rise by 0.1 crowns per standard cubic metres (sm3) to average 1.8 crowns (22.43 U.S.
Statoil Acquires 25% Stake in Brazil's Roncador
Statoil ASA and Petróleo Brasileiro S.A. (Petrobras) have agreed that Statoil will acquire a 25 percent interest in Roncador, a large oil field in the Campos Basin in Brazil. The transaction nearly triples Statoil’s production in Brazil, with attractive break-evens and potential for additional value creation for both parties through the application of Statoil’s expertise in improved oil recovery (IOR). The total consideration comprises an initial payment of $2.35 billion, plus additional contingent payments of up to $550 million.
LNG Prices Low on Oversupply
The Asian market for liquefied natural gas (LNG) remained subdued this week, weighed down by oversupply concerns and as the northern hemisphere exits its high demand summer season. Spot prices for Asian LNG <LNG-AS> were at $5.40 per million British thermal units (mmBtu), down 5 cents from a week ago. That's more than 70 percent below the $20.50 per mmBtu peak from February 2014. "Summer demand had been strong at this level (of mid$5/mmBtu). It's approaching shoulder months so prices are correcting," a Singapore-based LNG trader said. LNG deamnd weakens seasonlly during the shoulder season between the northern hemisphere's summer and winter. However, LNG markets are also generally oversupplied, largely because of soaring output from Australia and the United States.
Hit by Oil Price Drop, Algeria Turns to China for Funds
Algeria is turning to China to finance several infrastructure projects, including a new $3.2 billion port, as the North African OPEC member looks for ways to weather the collapse in global oil prices. Algeria, where oil and gas production account for 60 percent of the state budget, saw energy earnings collapse 40 percent last year, forcing the government to slash spending, raise some subsidised fuel prices and freeze major projects. With little foreign debt and more than $130 billion in reserves, Algeria's government says its economy can manage the fall in crude prices. Nevertheless, it appears Algiers is willing to move out of its comfort zone to help it cope. The Chinese funding represents the first time it has sought external funding in a decade.
Statoil's LNG Price for Lithuania to Fall by a Third
Liquefied natural gas (LNG) price from Norwegian company Statoil ASA for Lithuania is set to fall by more than one-third and the Klaipeda LNG terminal's maintenance costs are to decline by around 23% after Lithuania's gas trade company Litgas completed talks with the Norwegian supplier on a revision of their long-term gas purchase contract, reports LETA/BNS. According to Dalius Misiunas, CEO of the state energy group Lietuvos Energija (Lithuanian Energy), the price will go down to around 16-20 euros per megawatt-hour (MWh) under the new deal with Statoil, from around 27-30 euros currently.
Norway will be Lithuania's 2016 Top Gas Supplier
Lithuania will import more gas from Norway than from former sole supplier Russia in 2016 after developing infrastructure to support liquefied natural gas (LNG) imports, the country's energy minister said on Monday. Russia's Gazprom had enjoyed a supply monopoly until the end of 2014, when Lithuania opened a floating LNG import terminal to reduce energy dependence on its former Soviet master. That allowed it to import gas from Norwegian tankers, as well as via pipeline from Russia.
Statoil Says Sees European Gas Prices Bottoming Out
Norway's Statoil does not expect European gas prices to fall much further as rising demand from the power generation sector would offset an expected increase in liquefied natural gas (LNG) supply, company officials said on Wednesday. The majority state-owned Statoil, Europe's second largest gas supplier after Russia's Gazprom, sold a record 85 billion cubic metres (bcm) of gas in 2015. LNG supply to Europe is expected to rise as new liquefaction plants in the U.S. and Australia ramp up production. "LNG could potentially put pressure on prices, but then the demand will kick in and balance this," Olav Kolbeinstveit, Vice President, Market Analysis, told Reuters. "In the short-term there can be some pressure, but over time prices can't fall much more lower than they are now," he added.
Finland Scraps LNG Terminal Plan
Finnish gas utility Gasum has abandoned its plans to build the Finngulf liquefied natural gas (LNG) import terminal in Finland with an offshore pipeline connection (known as Balticconnector) to Estonia, reports Reuters. “On the basis of the studies Gasum has conducted, the Finngulf and Balticconnector projects are not regarded as commercially viable and there is not sufficient demand for them in the Finnish market,” Gasum said in a statement. The company's surveys show that the Finnish gas market has changed significantly compared to 2008, when these projects were started.
Thailand Ups Long-term LNG Imports Due to Coal Plant Delays
Thailand is increasing its planned long-term imports of liquefied natural gas (LNG) to meet rising demand after delays to the construction of coal-fired power plants, a senior official at energy ministry said on Wednesday. Energy policy makers have revised their target of LNG imports to 17.4 million tonnes in 2022 and reaching 34 million tonnes a year by 2036, up from earlier planned 23 million tonnes, Twarath Sutabutr, Director-General of the ministry's Energy Policy and Planning Office, told a news conference. "Natural gas supplies in the Gulf of Thailand will drop in the future. Thailand needs to accelerate LNG imports," Twarath said, adding the plan was subject to final approval from the national energy policy committee next month.
LNG Prices Firm on Pockets of Demand
Asian liquefied natural gas (LNG) prices edged up this week as the global market drew some support from demand in Mexico, after its state-run power company purchased six cargoes. The price of Asian spot cargoes for January delivery edged up to $7.30 per million British thermal units (mmBtu), from around $7.20/mmBtu last week. Cargoes for February delivery were lower at around $7.10/mmBtu, with supply from new projects in Australia and the United States expected to pick up in the new year. Mexico's CFE secured five LNG cargoes from Citi and one from Gazprom Marketing & Trading for delivery in the first half of 2016, traders said. Two sources said there had been some interest for cargoes into northwest Europe.