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Oil Indexation News

10 Dec 2015

Ophir Energy signs up LNG buyers for Fortuna

Ophir Energy has signed a preliminary agreement to sell gas from its Fortuna floating liquefied natural gas (FLNG ) project in west Africa. All the six counterparties are established LNG buyers in European and Asian markets. The oil and gas explorer’s announcement that it had found six buyers for the gas shored up confidence in the project, which comes amid weak LNG prices, sluggish demand and rising global output. The cost of the Fortuna project off the coast of Equatorial Guinea has already been slashed from $800 million to $600 million. Ophir is selling 2.2 MTPA of LNG offtake, however the total demand requested under the HoAs has seen the offtake sold several times over.

21 Oct 2014

Weak Oil Threatens US Export of LNG

Plunging global oil prices may turn hopes for cheap liquefied natural gas supplies from the United States into a costly disappointment for Asian buyers who have already invested billions of dollars in long-term contracts. The 26 percent price slide since June to $85 a barrel exposes cracks in the assumption by utilities and industrial companies from Japan to India that cheap U.S. LNG would muscle into high-value Asian energy markets from 2016. Oil prices form the backbone of LNG trade to Asia, because exporters outside the United States typically tie 25-year supply deals to crude oil prices. If prices continue to fall, these suppliers from Qatar to Australia will regain their edge over upstart U.S. producers. "From the buyer's view, $80 oil makes oil-linked supplies less expensive ...