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Tuesday, September 18, 2018

Natural Gas Prices News

Europe Set for LNG Supply Surge

Europe is luring twice as many liquefied natural gas (LNG) tankers as last year and more are expected in what is now the premium-priced market after a year-long demand slump in Asia. In just a week, seven new LNG tankers embarked for Belgian, British and Dutch ports and six more may arrive in the next month, attracted by the widest and most consistent premium to Asian prices in at least five years, price data on Reuters Eikon shows. The shift signals an end to Asia's huge LNG price premium to Europe's benchmark UK gas hub, raising hopes that supply will over coming years be more evenly spread between the basins, traders said. "We see NBP (UK natural gas prices) plus transportation returning as a price benchmark to Asia…

China’s LNG Terminals Underutilized

Pic: China National Offshore Oil Corp

According to an Interfax analysis of customs data, China used just over half its LNG regasification capacity in 2014, as tariff hikes and cheaper competing fuels hit gas demand growth. Slow downstream demand, driven by rising natural gas prices and sluggish GDP growth, coupled with rising pipeline imports and plunging prices of alternative fuels, have halved China's LNG consumption growth, said industry sources. While Chinese LNG imports in 2014 were up 10.3 percent from 2013, the growth was lower than the 20.3 percent and 22.7 percent registered in 2012 and 2013, Platts data showed.

Global LNG-Asia Prices Creep Higher on Japanese Demand

Asian spot liquefied natural gas prices edged higher as scattered demand from Japanese buyers and others helped stem the recent decline in prices, traders said on Friday. The price of spot LNG for April delivery inched up to $6.75 per million British thermal units (mmBtu) on Friday from $7.65 the previous week, while Europe's benchmark UK gas hub prices slipped to trade at a discount. "We've seen some end-user demand in Japan," a trader said. A ship broker also said there had been interest from Japanese buyers on a few cargoes coming up in Australia, along with "a little bit more interest" from China. Top importer Japan took delivery of record volumes of LNG in January, while demand from other major importers Korea and China has disappointed.

Dept. of the Interior Raises $539M in Gulf Lease Sale

   Sally Jewell, Secretary of the Interior (Dept. of the Interior photo by Tami Heilemann)

The U.S. Department of the Interior sold leases on oil and gas properties in the Gulf of Mexico today, receiving $538.7 million in high bids. The U.S. Department of the Interior's Bureau of Ocean Management (BOEM) took bids for 169 tracts on the U.S. Outer Continental Shelf off Louisiana, Mississippi and Alabama, the Bureau announced in a press release. 42 offshore energy companies submitted a total of 195 bids totaling $583 million, meaning most of the tracts had just one bidder.

Suez Canal to Feel Pinch of Slow Down

Photo: Suez Canal Authority

The traffic developments through the Suez Canal showed the change in each type of transient and cargo ships, which gives an indication of the future of traffic in the canal, according to analysis conducted by Daily News Egypt. According to data, the contradiction between the low number of vessels and higher payloads shows a tendency to rely on bigger ships to save costs. The Suez Canal will have to cope with this development and maintain an appropriate depth to meet the requirements of these larger vessels.

US Exports First Shale Gas

The United States has exported its first liquefied natural gas (LNG) cargo from the lower 48 states, after a tanker set sail from Cheniere Energy's Sabine Pass export terminal in Louisiana. The Asia Vision LNG tanker left the dock at the Sabine Pass terminal at 0139 GMT (7.39 p.m. on Wednesday local time), shipping data on Reuters showed. Expected to become an importer of LNG just a decade ago, the shale gas revolution in the United States unlocked cheap, abundant gas supplies, allowing the country to become an exporter instead. The first U.S. exports come just days before production begins at the Chevron Corp-led Gorgon LNG project in Australia…

CNOOC Reports Worst Result Since At Least 2011

File photo: CNOOC

China's offshore oil and gas producer CNOOC Ltd reported its worst annual result since at least 2011, with revenue from its core oil and gas business tumbling 17 percent last year, but it expects to raise output 2017 as oil prices rebound. CNOOC reported a net profit of 637 million yuan ($92.5 million) in 2016, down nearly 97 percent from 20.2 billion yuan in profit in 2015. Total revenue from oil and gas fell to 121 billion yuan from 147 billion yuan in 2015. "CNOOC managed to eke out a tiny profit thanks to cost efficiencies and the oil price rebound during 4Q…

US Could Eliminate Energy Imports -EIA

Figure 1 (Source: EIA)

EIA's AEO2015 projects that U.S. The Annual Energy Outlook 2015 (AEO2015) released today by the U.S. Energy Information Administration (EIA) presents updated projections for U.S. energy markets through 2040 based on six cases (Reference, Low and High Economic Growth, Low and High Oil Price, and High Oil and Gas Resource) that reflect updated scenarios for future crude oil prices. "EIA's AEO2015 shows that the advanced technologies are reshaping the U.S. energy economy," said EIA Administrator Adam Sieminski.

Indonesia Unveils Port Reforms, New Investment Rules

The amount of time it takes for imports to clear Indonesian ports will be reduced to 3.7 days from 4.7 days under new reforms of procedures, the chief economics minister said. The port changes were announced on Tuesday as part of an 11th package of measures President Joko Widodo's government has rolled out since September to try to improve the investment climate. Previous packages included a new formula for minimum wages, easier import rules, numerous tax incentives and a revision to the negative investment list of sectors partially or fully closed to foreign investors. Coordinating Minister for Economics Darmin Nasution said 18 government agencies with authority at ports currently have different criteria for customs checks.

U.S. Freight Recovery Spurs Diesel Demand

File Image: CREDIT AEP

U.S. freight movements have started increasing again, which should help boost consumption of distillate fuel oil in 2017 and 2018. The tonnage of freight moved by road, rail, barge, pipeline and air cargo has been increasing year on year since October, after stagnating for much of 2015/16 (http://tmsnrt.rs/2qSDLAJ). Freight movements hit a new record in February, before slipping slightly in March, according to the U.S. Bureau of Transportation Statistics (http://tmsnrt.rs/2rTVx58). Most freight is hauled by equipment that uses diesel engines, or jet turbines in the case of air cargo.

U.S. Natural Gas Prices Tumble as Coal Surges

File Image (credit Inland Marine)

U.S. natural gas prices have tumbled by more than 10 percent since late May as hedge funds start to liquidate a near-record bullish position accumulated in the expectation of a tighter market that failed to materialise. Hedge funds and other money managers reduced their combined net long position in the two main futures and options contracts linked to Henry Hub prices by 584 billion cubic feet in the week to May 30. Fund managers reduced their net long position by the largest amount in any one week since November 2016, after raising it by a cumulative 1,721 bcf during the previous 12 weeks.

US LNG Going Global

© Anatoly Kolodey / Adobe Stock photo

The U.S. liquified natural gas (LNG) market is ripe with opportunity, according to American Action Forum (AAF). "When coupled with the tension surrounding Qatar (the largest exporter of natural gas in the world), this makes U.S. LNG production a very attractive option," said Kimberly VanWyhe is the Director of Energy Policy at the AAF. In 2016, LNG exports from the U.S. totaled 184,141 million cubic feet with a value of roughly $564 million. Currently the U.S. is exporting LNG to 23 out of 35 countries that can accept LNG transport vessels, a sharp change from this time last year.

US LNG Shipments Point to Global Gas Price Convergence

Image by East-West Center

The emergence of US liquefied natural gas as a competitive alternative for European and Asian customers, combined with an oversupplied market, should drive more convergence between natural gas prices at major hubs and weaken the link between gas and oil prices, Fitch Ratings says. The first shipment of US liquefied natural gas (LNG) from Cheniere Energy's Sabine Pass facility to Europe arrived in Portugal at the end of April. It is unclear how many more shipments will arrive in Europe in the near term…

Record Low Interest in US GoM Leases

A U.S. government sale of oil and gas drilling leases in the western Gulf of Mexico attracted the lowest number of bids on record on Wednesday as slumping oil prices kept producers from plowing money into expensive offshore prospects. The yearly sale, held by the Bureau of Ocean Energy Management (BOEM), attracted $22.7 million in high bids, the smallest in the western Gulf since 1983 when leases were first broken down into regions, the BOEM said, reaping just one fifth of the value of last year's offers. "The continuing drop in oil prices and low natural gas prices obviously affect industry's short-term investment decisions," BOEM Director Abigail Ross Hopper said in a statement, also stressing the long term potential of Gulf of Mexico oil and gas production. U.S.

Future LNG Exports to Impact Traffic, Tug Requirements

Workboat requirements will soar as heightened safety requirements for LNG transit demand tighter oversight. The Louisiana Gulf is gearing up to export liquefied natural gas from Sabine Pass and Lake Charles in the state’s southwest and Plaquemines Parish in the southeast. Over the next five years, as LNG import terminals begin exporting and new terminals are built, more tugs and channel pilots will be needed, industry experts said last month. A convoy system will be employed to handle outgoing and incoming tankers. Safety rules for the region’s waterways are also almost certain to be revised.

U.S.-bound LNG Tanker with Russian LNG Diverted

File Image: A typical LNG Carrier at Sea (CREDIT: QGTC)

A liquefied natural gas (LNG) tanker probably carrying some supply from a Russian export project has been diverted from the United States, ship-tracking data shows. Engie's Gaselys LNG tanker was diverted on Friday from the Everett terminal in Boston, Massachusetts, where gas prices have tapered off since spiking during a cold snap. The vessel picked up the cargo from storage tanks at Britain's Isle of Grain import terminal in early January. The delivery to the United States was unusual because the LNG at Isle of Grain's tanks also contained some supply from Russia's new Yamal export plant.

Canada's First LNG Export Terminal Seen as One-off

Woodfibre LNG, Canada's first liquefied natural gas export project, will be a "nice-to-have" fillip for the country's gas producers but does not signal the start of a west coast LNG boom, industry watchers said on Monday. Privately held Woodfibre LNG Ltd said on Friday it will start building its C$1.6 billion ($1.2 billion) project in Squamish, British Columbia, next year after its Singaporean parent company authorized the funds last week. It is the first of more than a dozen LNG projects proposed for British Columbia to get the final go-ahead, but analysts say Woodfibre is unlikely to herald an investment surge from other developers given the challenging economics of an oversupplied LNG market.

Can Trump Make Coal Great Again?

File Image: a cargo of barged coal  makes its way on the U.S. inland river system (CREDIT: Inland Marine)

Most of the U.S. coal industry doubts Donald Trump can fulfill his promise to make the ailing industry great again in a country awash in dirt-cheap natural gas, a competing fuel. But a small sub-section of the coal sector that mines metallurgical coal - a variety used by steel makers instead of power plants - is gearing up for a Trump-inspired boom. That's because the Republican president-elect has promised a spending surge for roads, bridges and tunnels after he takes office on Jan.

Indiana Logistics Summit - a Big Draw

Nearly 500 people attended the 14th Indiana Logistics Summit Photo Ports of Indiana

Nearly 500 people descended upon the Indiana Convention Center in Indianapolis Nov. 16-17 during the 14th annual Indiana Logistics Summit to hear over 20 speakers discuss global logistics issues and their impacts on the regional economy. "Global Connections" was the theme and attendees heard how Québec's $9 billion maritime strategy will impact Indiana as well as how railroads are adjusting to the fossil fuel implosion. Dr. Robert E. Martínez, Vice President for Business Development and Real Estate for Norfolk Southern Corp., the fourth largest railroad in the U.S.

Fuel Talk: Greener Ships 'Abandoned'

Push Back: Leaders citing limited returns for “green-fuels” investments include (from left): Håvard Ulstein, MD, Island Offshore; Karsten Sævik, CEO, Remøy Shipping; and Ståle Kyrkjedelen, Norway’s Operations Manager, Bourbon Offshore. (Photo: William Stoichevski)

In the immortal words of one Kermit the Frog, “it’s not easy being green.” Nor inexpensive. Offshore ship owners managing the demand “fallout” of the past year and navigating myriad environmental strictures say their leap of faith toward greener fuels has taken its toll. The idealism of a decade ago has eroded, they say, in the face of lost offshore business, especially long-term contracts. Oil company clients that once insisted on high-spec, “green” vessels haven’t renewed contracts for those ships.

Moody's: Global Shipping Challenged by Oversupply

Photo by International Chamber of Shipping

Moody's outlook for the global shipping industry in 2017 is negative, reflecting continued oversupply and a 7%-10% decline in EBITDA. Dry bulk freight rates will remain low due to subdued demand, though deferred vessel deliveries, cancellations and scrapping will help curb net capacity growth. Airline profitability will weaken slightly in the year ahead, Moody's Investors Service says in its 2017 outlook for the global transportation industry. Aircraft lessors' margins will weaken amid stiff competition, while shipping companies will continue to be challenged by an oversupply of vessels.

64% Gowth for LNG Bunkering Market

Photo: Ramboll Oil and Gas

Detailed insights and analysis of the global market for LNG bunkering fuel have been included in a new market research report recently published by Transparency Market Research (TMR). The report includes an analysis of market’s historical statistics to present an overview of the growth trajectory exhibited by the global LNG bunkering market over the past few years and forecasts the course the market is likely to adopt over the report’s forecast period. On the basis of capacity…

Bright Future for LNG Bunkering - TMR

Image Courtesy TMR

Transparency Market Research (TMR) have given a detailed insights and analysis of the global market for LNG bunkering fuel in its recently published market research report. On the basis of capacity, the market, which had a valuation of mere 70 kilo tons in 2013, is projected to expand at an astounding 63.6% CAGR between 2014 and 2025 and reach 22,540 kilo tons by 2025. The report includes an analysis of market’s historical statistics to present an overview of the growth trajectory…

Maritime Reporter Magazine Cover Sep 2018 - Maritime Port & Ship Security

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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