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Sunday, July 15, 2018

Sabine News

Tokyo Gas Takes First LNG Cargo from Cove Point

© Dexter / MarineTraffic.com

Japan received its first shipment of liquefied natural gas (LNG) on Monday from Dominion Energy Inc's newly completed Cove Point export plant, the beginning of a jump in imports from the United States by the world's biggest buyer of the fuel.The docking of the tanker LNG Sakura at Tokyo Gas Co's Negishi terminal near Tokyo is another marker of shifting global energy flows as the United States ramps up exports of gas and oil from shale formations.The cargo is the first of 2.2 million tonnes of LNG a year Japanese companies are purchasing under long-term contracts from Cove Point in Maryland.

Panama Imports Its First LNG Cargo

(Photo: BAM International)

Panama has imported its first liquefied natural gas (LNG) cargo to commission the newly built $1 billion Costa Norte facility and power plant at Colon, expected to be a launch-pad for LNG trade across Central America.Many utilities in Central America and the Caribbean remain reliant on burning oil to generate electricity, but LNG offers a cleaner, cheaper and more efficient alternative.Shipping data shows the Engie-chartered Provalys tanker arrived last week, carrying a cargo exported from the Sabine Pass plant in Louisiana in March.AES Panama, a unit of U.S.

Trafigura Strikes 3-year LNG Deal from U.S. Project

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

Commodity trader Trafigura on Tuesday said it agreed to buy 0.5 million tonnes of liquefied natural gas (LNG) annually over three years from the Freeport LNG export plant in the United States.   Deliveries from Freeport LNG Marketing will begin in 2020 from its facility on Quintana Island near Freeport, Texas, Trafigura said.   The deal builds on Trafigura's 15-year, 1 million tonne per annum agreement with Cheniere Energy for supply from its Sabine Pass plant in Louisiana, which was announced in January.   Reporting by Oleg Vukmanovic

Feedgas Flows into Sabine Pass LNG Export Plant Drop Again

Sabine Pass LNG export plant (File photo courtesy pf Cheniere Energy)

Feedgas supplies into Cheniere Energy's Sabine Pass liquefied natural gas (LNG) export plant in Louisiana fell again after recovering briefly following a month-long maintenance shutdown affecting one of three production units, data showed on Tuesday.Input levels on the three pipelines serving the facility showed feed levels had fallen to 2,180 million cubic feet/day (mcf/day) on Tuesday after a fall and briefly recovering to a high of 2,860 mcf/day on Saturday.Current inflow levels suggest that the expected restart of the plant's third liquefaction train, or unit, had suffered a setback.Chenie

NYK LNG Carrier Rescues Sailors in Caribbean

Sailors in small boat prior to rescue. Photo: NYK Line

Marvel Falcon, a liquefied natural gas (LNG) carrier owned by NYK, offered humanitarian assistance to four sailors requesting rescue on on May 13, said a press release from the company. The LNG carrier had been sailing from the port of Balboa, Panama, to the Sabine Pass LNG terminal in the U.S. state of Louisiana when the small boat was spotted. The rescued sailors had departed from Port Limon, Costa Rica, on May 7 to deliver fuel to another boat, but they experienced engine trouble on May 8 and had drifted at sea for the next few days.

Dominion Energy Denies LNG Contract Renegotiations

File photo: The first commissioning cargo is loaded at the Sabine Pass LNG Terminal in February 2016 (Photo: Cheniere Energy)

Dominion Energy Inc said on Tuesday it had no plans to renegotiate any of its liquefied natural gas sales contracts, a day after India's oil minister said state-owned gas processor GAIL (India) Ltd was renegotiating deals with Dominion and another U.S. producer. "The characterization of contract renegotiations is false ... and Dominion Energy does not intend to renegotiate contract terms in the future," the company said in a statement. India's oil minister Dharmendra Pradhan told lawmakers on Monday that GAIL was renegotiating purchase contracts with Dominion Energy and Cheniere Energy Inc…

Qatargas Inks Deal to Deliver LNG to Austria's OMV

State-run Qatargas on Wednesday agreed a sale and purchase deal with Austrian oil and gas group OMV to deliver up to 1.1 million tonnes of liquefied natural gas annually for five years. From January 2019, the gas will be provided by Qatar Liquefied Gas Co, a venture between Qatar Petroleum and Shell . It will be delivered to the Gate LNG Terminal in the Netherlands on board Qatargas’ chartered LNG vessels. Facing threats to its market share in Europe from a wave of new U.S. supply and in Asia from new Australian plants, Qatar has sealed similar deals with Uniper, RWE Supply and Trading, Centrica and Petronas UK to secure access to northwest European import terminals.

Sabine Pass LNG Plant Suffers Outage

File photo: Cheniere Energy

Production at Cheniere Energy's Sabine Pass liquefied natural gas (LNG) export plant in Louisiana is running well below capacity, resulting in disruption to cargo loadings, trade sources said. Feed gas supply into the liquefaction plant plunged sharply during the weekend, data on the Thomson Reuters Eikon terminal showed. Flows fell to 630 million cubic feet/day on Jan. 19 from 3.2 billion cubic feet/day on Jan. 15. Freezing weather may have disrupted water supply to Sabine Pass, market sources said.

Gail India Seeks to Shed 24 U.S. LNG Cargoes

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

Gail India launches tender to sell 24 liquefied natural gas (LNG) cargoes from the Cove Point export facility in the United States in 2019-2020, according to trade sources. The tender is split into three tranches, with the first tranche offering six cargoes in the first half of 2019, six in H2 2019, and 12 in 2020, traders said . Prospective buyers must bid for all the cargoes in any given tranche. Gail purchased 2.3 million tonnes annually from Dominion Energy's Cove Point export plant, with an added 3.5 million tonnes annually due from Cheniere Energy's Sabine Pass facility in Louisiana.

Next-wave LNG Terminals get Smaller, More Flexible

Cheniere's Sabine Pass LNG Terminal (CREDIT: Cheniere)

The liquefied natural gas market is growing every year, but the terminals that ship and receive the fuel are shrinking. The booming sector's next-generation infrastructure is being designed for a emerging-market buyers that want smaller volumes on shorter, more flexible contracts. LNG export terminals, where the gas is liquefied and put on vessels for shipping, have traditionally been massive, custom-built facilities that cost tens of billions of dollars. And so to justify the investment, they have typically required equally massive, long-term supply deals, often lasting a decade or more.

Panama Canal Expects LNG Tanker Traffic to Rise 50%

(File photo: Panama Canal Authority)

The number of liquefied natural gas (LNG) tankers traversing the Panama Canal is expected to jump 50 percent by September due to rising exports of the fuel from the United States, the head of the canal's governing agency told Reuters. After adding a third set of locks in 2016, the Panama Canal Authority expects that growing global demand for LNG will boost transit through the waterway, said Jorge Quijano, head of the authority. Demand for LNG has taken off in recent years because of abundant supplies of natural gas…

Hoegh LNG Signs FSRU Deal with Gas Natural Fenosa

Floating storage and regasification unit (FSRU). Photo: Höegh LNG

Norway's Höegh LNG said on Wednesday that its floating storage and regasification unit (FSRU) Höegh Giant has started its time charter contract with Spanish LNG operator Gas Natural Fenosa. The  initial term of the contract is three years, and it includes the option for Gas Natural Fenosa to utilize the unit as an FSRU at a pre-defined day rate and for a pre-defined term. Until FSRU employment is established, the unit will trade in Gas Natural Fenosa's fleet, earning a LNG carrier spot-market-linked day rate.

Cove Point LNG Terminal's First Export Imminent

File photo: Methane Spirit loads from the Australia Pacific LNG Gladstone terminal (Photo: Teekay)

Methane Spirit, a liquefied natural gas tanker, said on Thursday it would arrive at Dominion Energy Inc's Cove Point LNG export facility in Maryland around March 31, according to Reuters shipping data. If correct, that could be the first vessel to pick up a cargo from the LNG facility, which Virginia-based Dominion said it expects to enter service in March. Dominion said it planned to spend $4 billion to add export facilities at Cove Point, long an LNG import terminal on the Chesapeake Bay.

Cheniere's LA Sabine Pass LNG Output Dips

File Image: Cheniere's Sabine Pass LNG Export facility (CREDIT: Cheniere)

The volume of gas flowing into the facility dropped from about 3.2 billion cubic feet per day on Wednesday to 2.8 bcfd on Thursday and a projected 1.5 bcfd on Friday, Reuters data showed. One bcfd is enough gas to fuel about five million U.S. homes. The plant had been operating near full capacity with about 3.2 bcfd of gas flowing in since mid-January when freezing water during a brutal cold snap forced the company to briefly reduce operations. Officials at Cheniere would not comment on the latest reduction.

Vessel Docks at Maryland Cove Point LNG Terminal

The Dominion Energy Cove Point Terminal. (CREDIT: Dominion Energy)

Gemmata could be the first vessel to pick up fuel from the facility since the tanker came from Spain - a non-LNG exporting country - with less than a full cargo, according to the shipping data. In addition to Gemmata, another vessel, the Methane Spirit, is also headed for Cove Point, according to the shipping data. Methane Spirit is located near Singapore and is expected to reach Cove Point around March 31. Once it enters service, Cove Point will be the second big LNG export terminal in the lower 48 U.S. Cove Point is designed to liquefy about 0.75 billion cubic feet per day (bcfd) of gas.

First LNG Export Cargo Departs Cove Point LNG

File Image: the Cove Point LNG Terminal (CREDIT: Dominion Energy)

The Gemmata liquefied natural gas tanker left Dominion Energy Inc's Cove Point LNG export facility in Maryland early Friday, likely carrying the first export cargo from the facility that was expected to enter service in March, according to Reuters shipping data and energy traders. Officials at Dominion were not immediately available for comment. When the Gemmata docked at Cove Point earlier this week, analysts said it would likely be the first vessel to pick up fuel from the facility since the tanker came from Spain - a non-LNG exporting country - with less than a full cargo.

First LNG from Cheniere US to GAIL India

Photo: GAIL

Cheniere Energy and GAIL (India) today marked the commencement of their 20-year Sale and Purchase Agreement (SPA) to supply U.S.-sourced liquefied natural gas to India from Cheniere’s Sabine Pass liquefaction facility in Louisiana, with one of GAIL’s first shipments departing from the facility. The ship will set sail after today’s ceremony to mark the occasion at Sabine Pass in the presence of Cheniere President and CEO Jack Fusco and GAIL Chairman and Managing Director Mr. B.C. Tripathi, who were joined by Consul General Dr. Anupam Ray, as well as representatives from Cheniere and GAIL.

LNG Cargo from US Plant does U-turn for UK

File Image: The Cove Point LNG facility (CREDIT: Dominion)

The first liquefied natural gas (LNG) cargo exported from a new plant in the United States at Cove Point will arrive in Britain later this month as Asian spot LNG prices weaken relative to European benchmarks. The Gemmata tanker is expected to arrive at the UK's Dragon terminal on March 20, according to the local port authority at Milford Haven. As Asian spot LNG prices weakened, the tanker performed a U-turn in the middle of the Atlantic this week away from Asia and towards Europe, shipping data shows.

GAIL India to get 90 LNG Cargos from U.S. in 2018

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

India's state-owned GAIL (India) Ltd on Friday said it would be annually receiving about 90 cargoes of liquefied natural gas (LNG) from Sabine Pass and Cove Point LNG terminals in the U.S.   GAIL has long-term deals to annually buy 5.8 million tonnes U.S. LNG. GAIL would be procuring about $2 billion worth of LNG per annum from USA from the fiscal year 2018/19.   GAIL on Saturday received its first consignment of LNG from the U.S. under the long-term deals at Dabhol terminal in western India. Reporting by Nidhi Verma

First Cove Point LNG Lifting Departs Maryland

File Image: CREDIT Dominion Energy

The first contractual liquefied natural gas (LNG) cargo from Dominion Energy Inc's newly constructed Cove Point LNG export plant in Maryland in the United States left the facility on Monday, Thomson Reuters Eikon ship tracking data showed. The cargo is expected to act as a drag on spot LNG prices <LNG-AS> as it coincides with the resumption of exports of the fuel from the Papua New Guinea LNG plant, which had been shut following a powerful earthquake. The 160,000-cubic metre LNG tanker Adam LNG left Cove Point on Monday with a draft of 91 percent, suggesting it was full, according to the data.

Panama Canal LNG Volume Soars as Global Demand Grows

On April 17, the Panama Canal transited three LNG vessels – Clean Ocean, Gaslog Gibraltar and Gaslog Hong Kong – in one day, marking a first for the waterway. (Photo: Panama Canal Authority)

The Panama Canal may carry five times as much liquefied natural gas (LNG) in 2020 as it did last year as production of the fuel expands in the United States and Asian import demand rises, the head of the canal's governing agency told Reuters.LNG volumes traversing the Canal could hit 30 million tonnes a year before the end of 2020, said Jorge Quijano, who leads the Panama Canal Authority, up from 6 million tonnes last year.Demand for LNG has risen significantly in the last three years as the increase of supply…

Cheniere Mulls Third Liquefaction Train at Corpus Christi

(File image: Cheniere Energy)

U.S. liquefied natural gas (LNG) company Cheniere Energy Inc said it planned to make a final investment decision to build the third liquefaction train at its Corpus Christi LNG export facility in Texas in the first half of 2018:Cheniere said on Friday its Cheniere Corpus Christi Holdings LLC subsidiary engaged financial institutions to arrange up to $6.4 billion of credit facilities. The unit already has about $4.6 billion of existing credit facilities.Cheniere said it will use the credit facilities to fund a portion of the costs of developing…

Panama Canal Welcomes Inaugural Transit of LNG Sakura

LNG SAKURA. Photo Copyright ©OCEANBREEZE, MarineTraffic.com

The Panama Canal welcomed the inaugural transit of the LNG Sakura as it carried the first-ever liquefied natural gas (LNG) shipment from the Dominion Cove Point terminal in the United States to Japan. The transit, which occurred this past weekend, marks the beginning of a new LNG commercial route between the United States and Asia from the recently inaugurated Dominion Cove Point terminal in Maryland, the second U.S. LNG export terminal to come online after Sabine Pass began operations in 2016.

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