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LNG - liquefied natural gas

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Sheffield signs LNG supply deal with Woodside

Sheffield Resources Limited has secured a 15-year agreement with Woodside Energy Limited and Energy Developments Pty Ltd for the supply and delivery of 1,950 terajoules per annum of liquified natural gas to the Thunderbird Mineral Sands Project in northern Western Australia. LNG will be supplied from Woodside’s Pluto LNG Truck Loading Facility near Karratha in Western Australia and transported to Thunderbird’s LNG storage facility by a newly formed joint venture between Woodside and EDL. The joint venture will own and operate a purpose-built road tanker fleet to safely and reliably deliver the LNG to Thunderbird, as is customary with other gas logistic arrangements in place for the towns of Broome, Derby and other communities in the Kimberley. The advantage of using LNG at Thunderbird is three-fold, providing Sheffield with a low cost, low emission fuel source that is ideally suited to the ilmenite low temperature roast (LTR) process proposed for the Thunderbird processing plant.

As previously announced on 19 September 2018, Sheffield has secured infrastructure funding support from the Northern Australia Infrastructure Facility (NAIF). Part of the $95 million financing package will be allocated to the proposed Thunderbird LNG storage and power station facilities, which will be constructed and operated under separate agreement with third parties. This arrangement will enable Sheffield to capture long-term gas supply cost savings relative to the Bankable Feasibility Study (BFS) published in March 2017. The BFS assumed an outsourced LNG storage and power station facility model on a Build Own and Operate (BOO) basis. The NAIF funding arrangements enable in-sourcing of LNG storage and power station facilities to take place, providing significant reduction in operating costs compared to BFS assumptions.

The Agreement is subject to a number of customary conditions precedent, including the Company making a final investment decision toward the development of Thunderbird.

Source : Strategic Research Institute
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IOC & Gail evaluating investing in Adani LNG terminal - Report

ET reported that Indian Oil and Gail are still evaluating plans to invest in a INR 6,000 crore liquefied natural gas import terminal being developed by the Adani Group in Odisha. The plan was announced in 2016. According to a preliminary pact signed in September 2016, the Adani Group had agreed to give away half of equity stake in the LNG terminal to Indian Oil and Gail. The two state-run companies were to also book 3 million tonnes and 1.5 million tonnes a year of regasification capacity, respectively, in the 5-million-tonne terminal.

The PSUs have gone ahead with their plans on regasification capacity but have yet to take a final call on their equity investments. As per ET report ““Gail and Indian Oil Corp are jointly carrying out techno-commercial and legal due-diligence studies.”

It is unclear why the government firms have taken so long to make up their mind on investing in the project. A spokesperson for the Adani Group said construction orders have been placed and the LNG terminal is on track.

Adanis have roped in French energy giant Total to invest in Dhamra LNG terminal. The companies will jointly develop various regasification LNG terminals, including Dhamra LNG, on the East coast of India.

Source : ET

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Gazprom Neft considering LNG production in Russia's Arctic

Reuters reported that Gazprom Neft, the oil arm of Russian gas giant Gazprom, is studying the possibility of its own liquefied natural gas (LNG) production in the Arctic as it tries to monetise its vast natural gas reserves. The discussions follow the successful launch of the Arctic-based Yamal LNG plant, controlled by Novatek, in December 2017. Russia wants to boost its global LNG market share in the next decade to around a fifth, from about 5 percent now.

Russia has only two large LNG plants in operation - Yamal LNG with capacity of 16.5 million tonnes per year and Sakhalin Energy, at more than 10 million tonnes, on the eastern island of Sakhalin.
Gazprom Neft announced a tender late last year for a study on how best to use its gas reserves in the Yamal region. The company is seeking an analysis of oil and gas markets and ways to process its gas including in LNG form.

The project is in its initial stages, a Gazprom Neft spokesman said.

Source : Reuters
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First LNG-Bunkering of M/S Containerships Nord

We are happy to announce that our first LNG-fuelled container vessel, M/S Containerships Nord, successfully underwent her first Marine LNG bunkering at the Port of Rotterdam on 24th of January. Around 240 metric tons of Marine LNG was bunkered to the vessel – an amount that can take her on a roundtrip from Rotterdam to St. Petersburg and back sailing through the Kiel canal twice. The first bunkering was carried out at lay bay berth in a ship-to-ship LNG bunkering operation from Shell’s Bunker Vessel, the Cardissa. In future, the bunkering will be carried out at a normal operational berth simultaneously with loading and discharging operations. This means no disadvantages in operative efficiency will occur compared to traditional oil burning vessels.

Bunkering procedures are based on detailed hazard identification and safety assessments. All vessel crew have passed essential LNG bunkering specific training, and safety is a priority throughout the bunkering operation.

M/S Containerships Nord started sailing from China towards Europe in Mid-December and reached the European waters after passing the Suez Canal after two and half weeks sailing. The three sister vessels will follow the same route after their delivery later this year.

After receiving the next two newbuilds, Containerships can start offering its customers a service based on LNG in large extend. These vessels have endurance of 14 days with LNG, and they will be bunkered once per roundtrip during their regular service loop between Containerships’ core ports in the North and Baltic Seas.

As part of the agreement signed by Containerships and Shell, Shell will supply the LNG for Containerships’ LNG vessels via ship-to-ship bunkering at the Port of Rotterdam. All the newbuilds will be bunkered by Shell bunker vessels, including the Cardissa.

Source : Strategic Research Institute
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Global LNG production in2019 to be up 11% YoY- Rystad Energy

Global LNG production is one element to watch in 2019. As shown in the figure the global liquefaction capacity is expected to increase from 396 million tonnes in 2018 to 434 million tonnes in 2019. Most of the new capacity will be added by the commissioning of US projects. The US capacity expected to grow from 29 million tonnes to 61 million tonnes this year as Cameron LNG, Elba Island and Freeport start operations and Sabine Pass and Corpus Christi continue to ramp up. Australia will overtake Qatar as the world’s largest LNG exporter with the ramp up in production in Prelude FLNG and Ichthys.

With the new capacity, global LNG production will reach close to 350 million tonnes this year up 11% YoY which will lead to a looser market.

Source : Strategic Research Institute
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Qatar plans to order 60 new LNG carriers - Minister

Reuters reported that South Korea's presidential office said that Qatar's energy minister outlined plans during a bilateral summit for Doha to order 60 new liquefied natural gas carriers. The energy minister, Saad Sherida Al-Kaabi, who also serves as deputy chairman of Qatar Petroleum, said he expects cooperation with experienced Korean shipbuilders on constructing the LNG carriers, according to a statement issued by South Korea's presidential office. Financial details of the plan weren't disclosed.

Speaking during a luncheon after the summit, the chief executive of South Korea's Daewoo Shipbuilding & Marine Engineering Co said most of the LNG carriers owned by Qatar were built by Korea's top three shipbuilders.

He said he hoped South Korean would be considered a primary option for building new LNG carriers for Qatar.

Source : Reuters
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Tokyo Gas to step up overseas LNG investment - CEO

Reutters reported that Japanese gas distributor Tokyo Gas will target investment in overseas infrastructure projects in liquefied natural gas (LNG) and renewable energy to boost its offshore earnings, its chief executive said. The country's biggest city gas seller and major buyer of LNG plans to leverage its links with foreign partners or team up with other Japanese companies to chase deals, President & CEO Takashi Uchida said.

Uchida told Reuters in an interview this week, tjat "We want to make an aggressive investment in Southeast Asia and North America this year to expand our LNG value chain."

Under a three-year business plan that kicked off last April, Tokyo Gas plans to spend 260 billion yen ($2.4 billion) to boost its earnings from abroad to 20 percent of its targeted operating profit of 130 billion yen in the year to March 2021.

In the year to March 2018, earnings outside of Japan accounted for about 5.8 percent of its group operating profit of 116.3 billion yen.

"Since we have struggled to win any major overseas deals through auctions last year, we plan to seek one-on-one deals through our foreign partners or join forces with other Japanese companies," he said.

Tokyo Gas is eyeing LNG import terminal projects in the Philippines and Vietnam. The company also wants to proactively seek new deals in renewable energy, such as offshore wind power, Uchida said, as it aims to raise its equity interests in renewable energy to 600,000 kilowatts abroad by the mid-2020s from zero now.

SAVINGS ON LNG
In an effort to diversify procurement sources and reduce costs, Tokyo Gas last year signed non-binding contracts to buy LNG from Anadarko Petroleum's Mozambique project, Royal Dutch Shell's LNG Canada project and Sempra Energy's Energia Costa Azul LNG project in Mexico.

Mr Uchida said that "Given the soft LNG market, we were able to win those new deals that were more beneficial to us than the existing contracts. We have not abandoned our goal to raise short-term and spot LNG purchases, but we can derive good terms for long-term contracts under the current market circumstances."

He said that Tokyo Gas' tie-up with Britain's Centrica in LNG procurement from Mozambique was an example of winning more flexibility from sellers.

Japan's Fair Trade Commission in 2017 ruled that destination restrictions that prevent the reselling of contracted LNG cargoes breach competition rules. He said that "Some suppliers have relaxed destination restrictions over the existing contracts."

Source : Reuters
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Bangladesh seeks developers for its first onshore LNG terminal

Reuters reported that Bangladesh is seeking expressions of interest to build the country's first onshore liquefied natural gas (LNG) import terminal, according to a company official and a document posted on the company's website. The South Asian country, which has a population of more than 160 million is turning to land-based LNG terminals as its first imports of the super-chilled fuel through a floating platform were delayed due to the weather and technical issues.

Rupantarita Prakritik Gas Co, part of state-owned Petrobangla, which oversees LNG supplies, has requested interest from potential terminal developers for a land-based LNG regasification terminal at Matarbari in the Cox's Bazar district of southern Bangladesh.

The expression of interest is for the design, engineering, procurement, construction and commissioning of a land-based terminal that can handle 7.5 million tonnes per annum (mtpa) of LNG, including receiving, unloading, storage and re-gasification facilities. The project is on a build-own-operate basis for 20 years, with ownership then transferred to the Bangladeshi government or a company nominated by the government at no cost.

Mr Mohammad Quamruzzaman, managing director of Rupantarita Prakritik Gas said thath "A land-based LNG terminal is now our top priority."

Source : Reuters
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Shizuoka Gas signs deal with China's Clean Energy to supply LNG

Reuters reported that Japanese city gas supplier Shizuoka Gas Co has signed a binding agreement with China's Clean Energy to deliver liquefied natural gas (LNG) from its Shimizu terminal in western Japan. Shizuoka Gas will transport the LNG through so-called ISO tank containers, typically pressurized tubes that hold the LNG in its super-chilled state and correspond in size to standard shipping containers to allow movement by truck, rail and container ship.

While some Japanese companies currently distribute LNG domestically via ISO tanks, this is the first term deal for a Japanese buyer to sell LNG overseas via ISO containers, said Edmund Siau, an analyst at energy consultancy FGE.

In Japan, only Shizuoka Gas currently has the capability to re-export fuel by re-loading LNG onto ships.

Under the agreement, Shizuoka Gas will supply 1,600 metric tonnes of LNG a year for a period of three years from 2019 to 2021 to Clean Energy, a fully owned subsidiary of China's Dalian Inteh Holdings Co, it added.

Shizuoka Gas said it has been seeking further utilisation of the terminal since 2017 when it first sold gas from the reloading facility.

LNG supplied from Shizuoka will be delivered to Taishan Gas Group and Rizhao Public Transport Group in China through Clean Energy and Ants Energy as an LNG selling company under Dalian Inteh Holdings, the statement said.

FGE's Siau said that transporting LNG via ISO tanks is usually done on trucks for small-scale distribution and currently still occurs within markets such as China and Japan.

Source : Reuters
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Petronet LNG net profit rises 7pct for Q3 2018

Petronet LNG, India’s largest importer of natural gas, reported a 6.90 per cent increase in net profit at INR 565.31 crore for the Q3 ended December 2018. The company had reported a net profit of INR 528.79 crore during the corresponding quarter last financial year. Total income of the firm during the quarter rose 30 per cent to INR 10,186 crore from INR 7,798 crore posted in the same quarter last financial year.

The company said its total expenses during the December quarter jumped by a third to INR 9,374.90 crore.

For the first nine months of the current financial year, Petronet's net profit increased 10 per cent to INR 1,715.23 crore.

Source : Strategic Research Institute
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Qatar & Exxon to proceed with USD 10 billion Texas LNG project

Reuters reported that Qatar Petroleum and Exxon Mobil Corp are expected to announce plans next week to proceed with a USD 10 billion project that will expand a liquefied natural gas export facility in Texas, three people familiar with the transaction said. ConocoPhillips, the third partner in the existing import terminal, plans to sell its 12.4 percent stake and does not plan to participate in the expansion.

LNG demand is soaring. Worldwide consumption of the fuel is expected to more than double to 550 million tonnes a year (mtpa) by 2030, triggering a race among oil and gas companies eager to dominate the market. Golden Pass LNG began as a receiving and regasification facility in Sabine Pass, Texas able to handle up to 2 billion cubic feet of natural gas imports per day.

However, as US gas production has soared to new records, bolstered by shale production, the demand for export capacity has increased. The potential $10 billion expansion, first announced in 2014, would focus on this new market dynamic. It is part of Qatar Petroleum's plans to invest some USD 20 billion in the United States as the company seeks to increase its overseas oil and gas footprint.

The most likely buyer for ConocoPhillips' stake is Exxon Mobil, two of the people said, adding that the existing partners do not want to bring in another participant, as plans for the project are in advanced stages.

Currently, Exxon has a 30 percent stake in the LNG export project, and Qatar Petroleum holds a 70 percent stake. The two have been strengthening a global alliance across LNG projects from the United States to Mozambique.

Source : Reuters
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Gazprom plans construction of LNG production facility in Poronaisk

Gazprom is going to build an LNG production facility on the Sakhalin, press center of the Sakhalin Government says referring to the results of a working meeting betweenMr Alexey Miller, Chairman of the Gazprom Management Committee, and Valery Limarenko, Acting Governor of the Sakhalin Region, held in St. Petersburg. The first phase foresees the construction of a facility for liquefaction of natural gas in the Poronaisk district. The facility with annual capacity of up to 100,000 tonnes will ensure LNG supplies to the Kunashir, Shikotan and Iturup islands. LNG will be delivered by seaborne transport.

According to Valery Limarenko, Poronaisk is considered as the optimal site for construction of the plant in view of logistics.

The head of the Sakhalin Region, said that “Geographic location of the port in the middle of the island lets arrange round-the-year transshipment of cargo for, let’s say the Kuril islands. Besides, the facility will be located in the vicinity of railways and motor roads. It is necessary for shipments of LNG fuel to remote areas of the Sakhalin.”

General Gas Supply and Gasification Scheme for the Sakhalin Region is to be updated by the end of 2019. Development of documentation on the sources and the scope of financing will begin in february.

Source : Strategic Research Institute
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Anadarko Petroleum announces Mozambique LNG agreement with CNOOC

Anadarko Petroleum Corporation announced Mozambique LNG1 Company Pte Ltd, the jointly owned sales entity of the Mozambique Area 1 co-venturers, has signed a Sale and Purchase Agreement with CNOOC Gas and Power Singapore Trading & Marketing Pte Ltd. The SPA is for 1.5 million tonnes per annum for a term of 13 years. Mr Mitch Ingram, Anadarko Executive Vice President, International, Deepwater & Exploration, said that "We are pleased to announce this SPA with CNOOC, an important global energy player in one of the biggest and fastest growing LNG markets in the world. This deal gives China's largest LNG importer access to Mozambique LNG's world-class gas resources, which are strategically located off the East Coast of Africa, and will provide China with a clean source of energy for years to come.”

Mr Ingram said that "Mozambique LNG is extremely pleased to have CNOOC onboard as one of our foundation customers. This agreement adds to our growing list of customers in the Asia-Pacific region, demonstrating the excellent progress we are making toward our stated goal of taking a final investment decision during the first half of this year. We expect to announce further SPAs in the near future."

Meanwhile, the Anadarko-operated Mozambique LNG project will be Mozambique's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 MTPA to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

Source : Strategic Research Institute
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Siemens sign deal with Novatek to supply gas compressors for Arctic LNG 2 plant

Russian gas producer Novatek said that it had signed a deal with German tech giant Siemens to buy compressors for its new Arctic LNG 2 natural gas liquefaction plant. "The scope of supply under the contract includes three feed gas compressors and six boil-off gas compressors", the Russian firm said in a press release.

Novatek deputy chief Mr Aleksandr Fridman said that equipment for the third production line, or LNG train, will be made in Russia, adding this was "consistent with our strategic aim of creating and developing an LNG Center of Excellence in Russia."

Mr Fridman said that "Siemens and NOVATEK have a successful working relationship as they supplied to gas turbine generators and boil-off gas compressors for our Yamal LNG plant. Our next project, Arctic LNG 2, will utilize new technological solutions and employ domestic manufacturers."

Source : Sputnik
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China's LNG imports reach another record amid high stocks

Reuters reported that China's imports of liquefied natural gas rose to another monthly record in January, even as the country grapples with high gas inventories amid a warmer-than-usual winter, according to shipping data and industry sources. The world's second-largest LNG importer took 6.55 million tonnes of LNG in January, beating the previous record hit in December by nearly 2 percent, according to Refinitiv Eikon shipping data.

China's imports last year surged 41 percent from 2017 after gas shortages the previous winter prompted Chinese companies to stock up on supplies and pre-order cargoes, with Beijing continuing to push millions of households to switch to gas from coal for heating. But the import growth is not wholly due to a rise in demand, said an industry source familiar with the Chinese market.

The source said that "When people see these numbers, they think Chinese demand is up but actually it is causing a headache (for importers) as (they) have overbought and can't find demand to absorb the cargoes," declining to be identified as he was not authorised to speak with media.

China National Offshore Oil Corp resold at least one LNG cargo in January and possibly another, an unusual move during what is typically a peak demand period and highlighting this year's warmer weather, industry sources said. Chinese traders are offering LNG cargoes to international buyers or selling into their domestic market at lower-than-expected prices, the first source said.

He said that the Lunar New Year holiday has also made the situation worse because factories are shutdown for a least a week.

Wholesale LNG from small, land-based liquefaction plants fell to CNY 3,500-3,950 a tonne on Feb. 2, less than half levels of last year, according to Chinese gas-price monitoring agency yeslng.com.

Source : Reuters
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Boskalis krijgt groot contract voor LNG-transport

FONDS KOERS VERSCHIL VERSCHIL % BEURS
Boskalis
23,00 -0,09 -0,39 % Euronext Amsterdam

(ABM FN-Dow Jones) Boskalis heeft een contract gekregen voor het transport van modules voor een LNG-uitvoerhaven in Noord-Amerika. Dat maakte het maritieme bedrijf donderdag bekend.

Het contract heeft een waarde van 55 miljoen dollar, met opties voor meerwerk ter waarde van 30 miljoen dollar.

Boskalis moet een groot aantal modules vervoeren van een productiewerf in China naar Noord-Amerika, en moet dat ook logistiek beheren. Het maritieme transportbedrijf zal hiervoor twee zware-ladingschepen met open achtersteven inzetten, die hierdoor bezet zullen zijn van het tweede kwartaal van 2021 tot het derde kwartaal van 2022.

Door: ABM Financial News.
info@abmfn.nl
Redactie: +31(0)20 26 28 999

© Copyright ABM Financial News B.V. All rights reserved.
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Hapag-Lloyd first in world to convert large container ship to LNG

Hapag-Lloyd will retrofit its 15,000 TEU ship “Sajir” to operate using liquified natural gas (LNG). In future, the engine system will be able to function using either of two types of fuel: LNG or low-sulphur fuel oil (LSFO). The contract for the retrofitting was signed at the end of last week with Hudong HONDHOA Shipbuilding (Group) Co., LTD. The conversion will be carried out in the Shanghai-based shipyard Huarun Dadong Dockyard Co., Ltd.

During its time in the shipyard, the ship’s fuel system and its existing heavy fuel oil-burning engine will be converted into a dual fuel engine. The plan will be to operate the vessel using LNG, but to also be able to use low-sulphur fuel oil (LSFO) as a backup. “By converting the ‘Sajir’, we will be the first shipping company in the world to retrofit a container ship of this size to LNG propulsion”, says Richard von Berlepsch, Managing Director Fleet Management at Hapag-Lloyd. “By carrying out this unprecedented pilot, we hope to learn for the future and to pave the way for large ships to be retrofitted to use this alternative fuel.”

Image: Hapag-Lloyd

Using LNG in the shipping industry could potentially reduce CO2 emissions by 15 to 30 percent and sulphur dioxide and particulate matter by more than 90 percent.

The “Sajir” is one of the 17 vessels in Hapag-Lloyd’s fleet that were originally designed to be LNG-ready. Its 16 sister ships are also technically prepared for retrofitting. With the conversion of the “Sajir”, Hapag-Lloyd will be implementing a technological option to reduce the environmental impact of large vessels.

Source : Strategic Research Institute
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Pieridae Energy inks Goldboro LNG benefits deal with Mi’kmaq First Nations

Pieridae Energy Limited announced that the Nova Scotia Mi’kmaq Benefits Agreement which it negotiated with the Assembly of Nova Scotia Mi’kmaq Chiefs (the Assembly) has now been ratified.

Mr Alfred Sorensen, CEO of Pieridae said that “We are looking forward to collaborating with the Mi’kmaq of Nova Scotia, and their leadership, in realizing for them the benefits of this important project.”

This Benefits Agreement establishes the framework under which the Mi’kmaq of Nova Scotia will benefit economically from the development, construction and operation of the Goldboro LNG Project. A Memorandum of Understanding (MOU) signed in 2013 originally outlined the relationship between Pieridae and the Mi’kmaq in Nova Scotia and this new Benefits Agreement underscores Pieridae’s commitment to ongoing engagement and relationship building with the First Nations communities in Nova Scotia.

Chief Terrance Paul, Co-Chair for the Assembly of Nova Scotia Mi’kmaq Chiefs said that “Nova Scotia is unceded Mi’kmaq territory and the management of our lands and resources is a priority for our Nation. As we look to ensure responsible development and environmental stewardship that reflect a Mi’kmaq voice, it’s important that we can bridge that gap with industry. This agreement with Pieridae is an example of how companies can respect our Mi’kmaw Rights and Title, and also provide an opportunity for Mi’kmaq participation in development on our lands.”

Source : Strategic Research institute
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Centrica and Tokyo Gas ink deal to purchase Mozambique LNG

Reuters reported that British energy supplier Centrica and Tokyo Gas have agreed to jointly purchase 2.6 million tonnes of liquefied natural gas a year from Mozambique LNG Company.

Centrica LNG Company Ltd, a subsidiary of Centrica, and the Japanese energy company said the LNG will be delivered ex-ship from Mozambique LNG from the start-up of production until the early 2040s.

Mozambique LNG1 is owned by US oil and gas producer Anadarko Petroleum Corporation and partners in a consortium which is developing the project aimed at serving both the Asia-Pacific and European markets.

It will consist of two liquefaction trains with the capacity to produce 12.88 million tonnes per year in its initial phase and is expected to be completed by 2023-2024.

Separately, Anadarko said Mozambique LNG1 Company has signed an agreement with Shell International Trading Middle East Ltd for 2 million tonnes of LNG a year for 13 years.

Source : Reuters
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