Global LNG Prices Hold Steady in Weak Trade
Asian spot liquefied natural gas (LNG) prices were little changed on Friday as mild demand and the extended holiday period kept a lid on trading activity. The spot price for February was steady at about $10.10 per million British thermal units (mmBtu), in line with the previous week. Traders said, however, that prices were nominal given there was limited activity. Brazil's state-run energy giant Petrobras has shown interest in purchasing spot cargoes, one trader said, but high inventories across Asia have kept buyers on the sidelines there. There were early signs of demand for cargoes delivering in March, the source said. The LNG market has been slowly declining since September as energy prices generally have been hit by a slide in oil.
Oil Price Crash Claims First US LNG Project Casualty
Excelerate Energy's Texan liquefied natural gas terminal plan has become the first victim of an oil price slump threatening the economics of U.S. LNG export projects. A halving in the oil price since June has upended assumptions by developers that cheap U.S. LNG would muscle into high-value Asian energy markets, which relied on oil prices staying high to make the U.S. supply affordable. The floating 8 million tonne per annum (mtpa) export plant moored at Lavaca Bay, Texas advanced by Houston-based Excelerate has been put on hold, according to regulatory filings obtained by Reuters. The project was initially due to begin exports in 2018. Excelerate's move bodes ill for thirteen other U.S.
Excelerate Energy & the Year of LNG
This being the “Yearbook” edition of Maritime Reporter & Engineering News, it would be remiss to not have coverage of LNG, one of the hottest fueling trends in maritime circles, particularly in North America. For a unique insight on a rapidly evolving market, MR caught up with Edward Scott, COO, Excelerate Energy, which is making big strides in the LNG Regasification sector, and recently received on the of the world’s largest and most capable units, the FSRU Experience which he touts as the world’s largest and most capable FSRU.
Hope Services, Inc. (HSI) Delivers Again
On October 5, 2009, Hope Services Inc. (HSI) delivered the M/V Lavaca Bay to Higman Marine Services, of Houston, Texas. The 2000 horsepower boat measures 72 ft by 30 ft with a draft of 10 ft. Hope Services, Inc. has been designing and building vessels since 1986, but has been expanding its operations over the last year to include more vessel repair and refurbishment at its Dulac, Louisiana, facility. In addition to the core ship building operations, HSI has now expanded to include offshore oil and gas fabrication, off loading of jackets and decks as well as storage of that equipment.
