CS LNG News Update: 10th April 2019
By CS LNG, Apr 11 2019 08:44AM
1. FOURTH TRAIN FOR YAMAL LNG
The actual capacity of the three trains of Yamal LNG liquefaction plant is 17.5mtpa, told Novatek Chairman Leonid Mikhelson the audience of the Arctic Forum in St. Petersburg. “This is 6-7% above the projected capacity. By the end of the year we plan to launch the fourth production train with a capacity of 1mtpa”, he added. This will bring the Yamal LNG total capacity up to 18.5mtpa. Initially, only three trains with a total capacity of 16.5mtpa were planned.
[Source: Sea News 10/04/2019]
CS LNG comment: Something unusual here if the train 4 is only 1 mill tonnes!
2. AUSTRALIA CANNOT TAKE CHINA'S LNG DEMAND FOR GRANTED
It is not surprising executives from Australia's biggest liquefied natural gas exporters were rubbing shoulders with China's top energy companies in Shanghai this week. Australia has a lot riding on China's transition from a coal-powered economy to a greater reliance on gas. China's current restrictions on Australian coal exports are a reminder that Canberra cannot take demand for that commodity and iron ore for granted. The focus is increasingly on Australia's huge LNG market as Woodside, Santos and Oil Search and their partners prepare to invest $US27 billion ($49.6 billion) into new projects in Western Australia. China, which currently powers just a fraction of its huge economy with gas, will play an important role in future demand. But the message from the world's biggest LNG players at a major industry conference in Shanghai last week was one of caution. They recognise there are challenges to the huge increase being forecast for China's LNG needs. Woodside chief executive Peter Coleman, a regular visitor to China, has been warning for some time that Australia risks being over-reliant on the world's second-largest economy. "Forecasts can change as attitudes change," he says. This is something the coal sector can relate to as it comes under pressure from the environmental lobby and investors. Coleman also says his industry is “at risk of losing relevance” unless it can demonstrate why a low-carbon world needs LNG. “In Australia, we have learnt from a decade of climate policy paralysis, where society will not support policies if they are perceived to threaten living standards. Our industry needs to show it is committed to effective action on climate change," he warns. China became the world's second-biggest LNG importer after Japan last year after imports almost doubled from the previous year. Demand for natural gas from China is expected to pass 400 billion cubic metres by 2022. This demand is largely being driven by Chinese President Xi Jinping's "blue sky" campaign designed to clean up the pollution choking China's cities. But this cannot happen overnight. Li Hui, vice-president of China National Offshore Oil Corp, China's biggest LNG buyer, told the conference there were huge challenges facing the country during the transition. China's pipelines, storage and other infrastructure is underdeveloped. big LNG buyers in China lack overall planning, and procurements are sporadic because of seasonal demand that creates big swings in global prices. China plans to quadruple import capacity from its 21 terminals within the next 20 years, according to state media.
[Source: Australia Financial Review 07/04/2019]
CS LNG comment: Well they will have to revise their policy as China has been Oz focus for the past 20 years ever since the Asian financial collapse in 1997. Where else can Australia expect to sell LNG in vast quantities and expect to get paid AND have a reasonable trading relationship?
3. LNG 'COCAINE' TANKER LEAVES T&T
The Hispania Spirit, the LNG tanker on which $120 million in cocaine was found at a port at Atlantic in Point Fortin last week, has left Trinidad. On the marine tracking website marinetraffic.com stated that the vessel left Trinidad at 7.26 p.m. Sunday and it was expected that its next port of call would be at its home port on April 16 in Santa Cruz de Tenerife, in Spain. The ship’s captain and crew of 28 were on board the vessel when it left for its voyage. They were interviewed by officers of the Organised Crime and Intelligence Unit and Customs and Excise Division about the cocaine that was discovered in the vessel’s rudder last Wednesday morning. The vessel had been docked at Jetty #1 since Tuesday, and 200 kilogrammes of cocaine wrapped were discovered when the captain was checking the vessel. Point Fortin police were contacted by security personnel at Atlantic and told of the illegal cargo. Officers of the OCIU, Customs and Excise, Coast Guard and ASP Ramphal, Sgt Jones, Ag Cpl Carter, Cpls Bajan and Bates and PC David. The captain told police that he made interval checks throughout their duration in Trinidad. It was during one of those checks around 8 a.m. on Wednesday that that seven black bales of cocaine covered with nylon mesh were found. The narcotics were seized by Coast Guard officers and handed over to the Customs and Excise Division.
[Source: The Trinidad Express 09/04/2019]
CS LNG comment: It looks like TK are paying their Captains too high a salary or not employing smart captains who can’t recognise a windfall! Seriously well done to the Master for avoiding what could have been a very embarrassing and costly exercise, and to TK for having the right procedures in place. But it does put the focus on Point Fortin for their ISPS procedures and securities around the plant.