Nigeria Lng News

Höegh LNG announced on Monday that its president and CEO Sveinung J. S. Støhle is resigning to purse a career outside of Norway.The Norwegian shipowner said Støhle gave his resignation notice on October 9 and that he will remain in his role until November 1.Thor Jørgen Guttormsen will act as interim president and CEO effective November 1 and until a permanent successor is appointed.An  LNG industry veteran with more than 25 years of experience in shipping and oil and gas, Støhle has worked for Höegh LNG since 2005. He served as director and chairman of the board of directors of Höegh LNG Partners LP since April 2014 but stepped down as a chairman when assuming the position as CEO of Höegh LNG Partners LP since August 2020.

During the fourth quarter of 2019, spot LNG freight rates continued to strengthen with average reported headline rates for MEGI/X-DF LNG carriers increasing by 66% from $74,800 per day to $123,800 per day, according to Flex LNG.Rates increased steadily due to higher demand preparing for winter in Northern Asia, as well as continued floating storage, Flex LNG said.Trading patterns and LNG pricing however, continue to favor Europe as the main destination for incremental uncommitted LNG volumes due to the low spread in gas prices between Asia and Europe, as well as greater infrastructure capacity in Europe for regasification and storage.According to industry sources…

The Nigerian Liquefied Natural Gas Company (NLNG) signed a “letter of intent” with SCD JV as preferred bidder to construct the $10bn NLNG Train 7 project.SCD JV  is a joint venture consortium comprising Saipem, Chiyoda and Daewoo."SCD JV is the preferred bidder for  the contract for the Engineering, Procurement & Construction of the Nigeria LNG Train 7 Project after a competitive FEED contract," said NLNG.The intended award of the EPC contract is conditional upon the approval of Nigeria LNG Limited’s board of directors and shareholders, the approval of any governmental or regulatory authorities, the achievement of any conditions precedent…

Since its first day of operations in May 17, 1989, the Nigeria LNG Limited (NLNG)  has recorded no fewer than 45 vessels chartered-in and five chartered out, said a report in ThisDay. The chartered-in including liquefied natural gas (LNG), liquefied petroleum gas (LPG) and condensate carriers for shipment of its products to buyers across the globe. The chartered-out of its own vessels is for other operators in the market. The company’s assets are now worth over $13bn, a press release from NLNG quoted Tony Attah, Managing Director as saying. He said the NLNG had been able to generate $85bn in revenue. The company has positioned itself…

Babs Omotowa, Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG), has raised alarm over Nigeria’s dwindling investments in Liquefied Natural Gas (LNG), according to a report in Thisday. He noted that with no new investments, Nigeria would possibly drop from her current position of the 4th world’s largest exporter of LNG to 10th position by 2020. NLNG had earned $90 billion revenue since 1999 and that it has elevated Nigeria to number four exporter of LNG in the world, after Qatar, Malaysia and Australia. Omotowa, however, said with no new investments to support Nigeria’s position in the global LNG market, the country’s position would possibly drop to 10th by 2020. NLNG posted a 36.6% drop in its revenue in 2015 due to declining oil and gas prices.

Wärtsilä has signed a five-year maintenance agreement with the Nigerian gas transportation company Bonny Gas Transport Limited, (BGT), a subsidiary of Nigeria LNG Limited. Wärtsilä will monitor and service the engines on board the BGT's six new LNG carriers and deliver spare parts, as well as expertise for inspections and major service overhauls. The contract marks the beginning of a new era of cooperation between Wärtsilä and BGT, and is the first of its kind for Wärtsilä in Africa. Nigeria LNG Limited exports most of its cargo to the European Asian markets. The six LNG carriers are equipped with five Wärtsilä 50DF engines each and operate primarily on gas.

Asian spot liquefied natural gas (LNG) prices extended losses for a third week, as weak demand gave little support, with more supply beginning to flow from the United States and Australia. LNG prices for April delivery in Asia eased to $4.50 per million British thermal units (mmBtu), down 30 cents from the previous week. Gail India's purchase tender for three cargoes spread across March and April closed with the April cargo fetching a price in the mid-$4 per mmBtu range, traders said. Four cargoes offered by Indonesia's Bontang liquefaction plant will go to trading house Vitol, two international oil companies and possibly a Japanese player pending government approvals, several industry sources said. Argentina's state-run LNG buyer YPF is expected to tender for supply in coming weeks.

Asian liquefied natural gas (LNG) prices were steady this week amid limited trading activity. The price of Asian spot cargoes for February delivery was pegged at $6.90 per million British thermal units (mmBtu), in line with the previous week. Traders eyed developments in Nigeria where Eni has declared force majeure on loadings from the country's LNG export plant due to pipeline sabotage. All other suppliers continued to ship, although traders said the pace of loadings had slowed. "There's a slight backlog of vessels, they're not loading as quickly as they normally would," said a trader. Nigeria LNG's export plant at Bonny Island can produce 22 million metric tonnes of liquefied gas a year and has long-term supply contracts with buyers in Italy, Spain, Turkey, Portugal and France.

Asian liquefied natural gas (LNG) spot prices for September delivery were firm this week, supported by supply issues in Nigeria after a pipeline leak, though surplus global supplies helped ease concerns. The price of Asian spot cargoes held steady at around $8.00 per million British thermal units (mmBtu), from $7.95/mmBtu last week. Shell confirmed on Thursday that it had declared force majeure on gas supplies to Nigeria's LNG export terminal on Bonny Island in Rivers State due to a pipeline leak. "Before Nigeria happening prices were falling, so it has helped support the market," an analyst said, adding that surplus volumes globally were capping any potential upside. The analyst estimated Nigeria exports at around 7 cargoes a week.

Nigeria Liquefied Natural Gas Company (NLNG) expects to take delivery of four LNG carrier ships before year-end and another two next year, its chief executive said, positioning the state-backed gas exporter to expand its share of the growing market. NLNG signed agreements with South Korea's Samsung Heavy Industries and Hyundai Heavy Industries in 2013 to acquire six LNG carrier ships, costing more than $1.2 billion, to boost its fleet of 23. It had tapped South Korea Export and Import Bank and other lenders to fund the construction, CEO Babs Omotowa said. Omotowa said the global market for LNG - natural gas that has been cooled to a liquid form, which shrinks the volume and makes it easier to store and ship - was forecast to grow to 430 million tonnes per year by 2030 from 230 million now.

Golar LNG announced today that it has been awarded 2 time charters by Nigeria LNG Ltd ("NLNG") to employ the recently delivered Golar Frost and Golar Crystal. Employment of both vessels under these contracts will commence in January 2015 and will continue for a duration of approximately 12 months for each vessel. NLNG has elected to retire earlier than planned 3 of its smaller and less efficient LNG Carriers and to replace these with Golar's more modern and technically advanced ships, while NLNG awaits the delivery of its own recently ordered new vessels. Golar's CEO Doug Arnell commented "Golar is delighted to be selected by NLNG for these charters.

A strike by Nigeria's oil unions is not having any immediate impact on crude oil exports from Africa's top exporter, despite moving into a third day, spokesmen for leading operator Shell and Nigeria LNG said. Nigerian oil unions say the strike could affect exports if no agreement is reached with the government. The spokesman for NLNG, the gas exporter which is run jointly by Shell and the government, said he did not foresee any impact from the strike, which began on Tuesday. The dispute is over pensions and a lack of crude supplied to refineries. Also indicating that the strike has yet to have any impact, the Qua Iboe <BFO-QUA> grade of crude oil for November export came to market on Thursday, on schedule.

Braemar Engineering  announced that it has been appointed to act as Shipping Consultants to Bonny Gas Transport, the wholly owned subsidiary of Nigeria LNG (NLNG) responsible for the transport of NLNG’s output over the Atlantic to Europe and the Americas. Braemar Engineering will oversee the building of six LNG carriers, from design to delivery, with completion of the project anticipated at the end of 2016. Steel cutting on the first of the project’s LNG carriers took place on April 25 at Samsung’s Geoje shipyard in South Korea.

Inchcape Shipping Services (ISS) said it has strengthened its presence in the Niger Delta with the opening of an office on Bonny Island, Rivers State, Nigeria. The office, which complements the company’s existing presence in Lagos, Brass and close neighbor Port Harcourt, will service ISS contracts with Nigeria LNG (NLNG). ISS, which has a worldwide network of over 300 offices, has a program  of office openings in strategic locations, particularly in emerging markets and developing economies. The opening of the office on Bonny Island comes as a result of a recent contract win which will see ISS servicing some of NLNG project vessels.

Liquefied natural gas (LNG) is one of the fastest growing energy markets worldwide, and global production capacity could be more than double by the end of the decade. Higher natural gas prices and growing efficiencies in the LNG value chain are making it economically attractive to ship LNG over long distances, transforming natural gas from a regional to a global market. GE’s Power Conversion business is working closely together as a partner with the Power & Control Systems division (PCSD) of Samsung Heavy Industries (SHI). Power Conversion has been appointed to equip four LNG carriers to be built by SHI at its Geoje facility in South Korea. SHI, one of the world’s largest ship builders, is a leader in the market with its LNG carriers and ultra-large container ships.

June saw more enquiries than May, and more were converted into fixtures, but Drewry’s LNG freight index was stubbornly unchanged according to the latest LNG Insight. However, market sentiment remains positive as Cheniere took three vessels on mid-term charter, plus options. One vessel from Dynacom was also added to the first of the two ME-GI ships from Teekay, while Inpext also announced newbuildings for Ichthys. But sentiments were less positive in Africa, where the Nigerian Maritime Administration blocked ship movements from the Bonny Channel as its relationship with Nigeria LNG became even more tense. African supply has already suffered as North African suppliers have been facing feedstock problems.

Shell Petroleum Development Company Limited (SPDC) has declared force majeure on gas supplies to Nigeria LNG, effective 09:00 hrs (Nigerian time) on Wednesday, May 15 2013. This action is due to production deferment following a reported leak along the Eastern Gas Gathering System (EGGS-1) right-of-way (RoW) near Awoba in Rivers State. In line with safety precautions, we have shut down our Soku and Gbaran Ubie gas export via the EGGS1 pipeline. Some 1.5 billion standard cubic feet of gas per day is currently impacted. For a limited time and subject to capacity limitations, SPDC are able to export about 100-200MMscf/d from Soku via the GTS1.

InterManager, the international trade association for the ship management industry, has boosted its membership with several new members joining its ranks during the first quarter of this year. Full members joining include ship management company Nigeria LNG and crew manager Nedcon. They are joined by Associate members KVH, Cubisol, Jadran Pismo and Stark Moore Macmillan. Speaking as the InterManager Executive Committee Meeting in Athens today (June 7) InterManager President Alastair Evitt said: “I am pleased to report that InterManager is increasingly receiving applications for membership from a range of shipmanagement and related maritime businesses.

Bergesen has entered into a preliminary agreement with the Algerian oil company Sonatrach for employment of one LNG-carrier for minimum 20 years from delivery. Sonatrach has an option to extend the agreement by maximum five years. The vessel is the third vessel in a series of seven large LNG-carriers ordered by Bergesen at Daewoo Shipbuilding & Marine Engineering Co. Ltd, Korea. The vessel shall be delivered in third quarter 2004. Sonatrach will participate with an ownership share of 50 percent in the vessel with effect from delivery from the yard, but the vessel will be 100 percent financed by Bergesen. Final agreement with Sonatrach is expected to be concluded in the near future.

Bergesen has agreed with Nigeria LNG Limited (NLNG) on a preliminary agreement for the employment of four LNG-carriers for a minimum of 20 ½ years from delivery. Final contract is subject to NLNG making its final investment decision on its further extension called NLNG Plus. Subject to same investment decision, Bergesen will enter into an agreement with Daewoo Shipbuilding & Marine Engineering Co. Ltd., Korea, to build the vessels. Delivery shall take place in first, third and fourth quarter 2005, and in first quarter 2006. Total project price will be about $710 million, including interest and other expenses during construction period. The agreement is based on four vessels of 140.500 cbm each, but the vessels' capacity can be increased to 145.000 cbm at NLNG's option.

Bureau Veritas launched a unique Condition Assessment Program for LNG carriers. The CAP works in a similar way to existing Harmonized CAP programs for oil tankers, but has special requirements unique to LNG carriers. Speaking at the SIGTTO annual meeting in San Francisco today, Bruno Dabouis, commercial manager of BV said, "The LNG market is opening up and there are signs that a spot market for LNG carriers may further develop. That means charterers need to be able to demonstrate that they have taken special care when chartering in older vessels, a new phenomenon in the LNG market. Bureau Veritas, the only classification society present in all types of LNG containment systems and propulsion systems…

An attack by armed separatists in speedboats has forced Royal Dutch Shell to shut down its biggest offshore oil production unit in , removing a tenth of the Opec state's output. The raid on Bonga, a floating oil production and storage facility 120km offshore, has caught Nigeria's foreign oil operators by surprise. The deep water installations in the were previously thought to be beyond the reach of the militant groups that continue to harass and disrupt oil production in the swamps of the Niger Delta. The attack was aimed at Bonga but the militants also attacked two drilling rigs and three supply vessels in the area. The American captain of one supply vessel, under contract for Chevron, was taken hostage.

Shell International Trading and Shipping Company (Shell) has become the first ship operator to install Lloyd’s Register’s Hull Integrity system onboard one of its managed vessels, the 134,487 cubic metre Nigeria LNG gas carrier, LNG Rivers - a Bonny Gas Transport (BGT) owned vessel. In the next few months, the software will also be installed on sister ships LNG Sokoto and LNG Bayelsa, which are also owned by BGT. Hull Integrity is a new service from Lloyd’s Register that helps owners and operators to manage the structural integrity of their ships. It enables them to demonstrate that sound structural inspection programs are being employed, using well-trained staff who are given the tools to identify what to look for and how to report it. • user-friendly software for recording and analysis.