CS LNG News Update 22nd November 2018
By CS LNG, Nov 29 2018 09:15AM
1. FLORIDA LNG PROJECT ADVANCES WITH PLANS TO SUPPLY CARIBBEAN POWER AND MARITIME MARKETS
The Federal Energy Regulatory Commission has prepared a draft environmental impact statement for the mid-scale Jacksonville project in Florida proposed by Eagle LNG Partners to supply regional power and fuel markets. Eagle LNG is planning its facility for the north bank of the St. Johns River in Jacksonville and would comprise about 1mtpa of LNG output from three small liquefaction Trains, each was capacity of around 330,000 tonnes. One LNG storage tank is also proposed with a net capacity of 45,000cu m. The marine facilities would have a loading platform and two liquid loading arms capable of docking and mooring a range of LNG vessels with cargo capacity of up to 45,000cu m. LNG truck-loading facilities would have a dual bay capable of handling between 260 and 520 trucks per year. Eagle has said that the facility would serve both domestic and international markets. The company will load the fuel onto ocean-going vessels for export to countries in the Caribbean where heavy fuel oil or diesel is currently in use for power generation. It will also supply the domestic marine fuel market. Feed-gas would be delivered to the Jacksonville plant via a 120-foot-long non-jurisdictional pipeline that would be constructed, owned and operated by Peoples Gas, a subsidiary of Teco Energy. “We determined that construction and operation of the project would result in some limited adverse environmental impacts, but impacts would not be significant with the implementation of Eagle LNG’s proposed and our recommended mitigation measures,” said a FERC statement. The regulator added that its decision was based on a review of the information provided by Eagle and further developed from data requests, field investigations, scoping and contacts with federal, state and local agencies. “Although many factors were considered in this determination, the principal reasons are: the LNG terminal site would be in an area currently zoned for industrial use and is along an existing, maintained ship channel in the St. Johns River,” the FERC stated. The draft EIS comment period closes on January 7, 2019. “The Commissioners will take into consideration the FERC environmental staff’s recommendations when they make a decision on the project,” the agency added.
[Source: LNG Journal 19/11/2018]
CS LNG comment: Why would FERC encourage an LNG project in the “sunshine state” when there are enough projects in the “industrial redneck states” in the Gulf?
2. SAGA LNG ORDERING UP TO FOUR LNG CARRIERS AT CMHI Saga LNG Shipping, the LNG shipping unit controlled by Landmark Capital, is going to order up to four 80,000cu m LNG carriers at China Merchants Heavy Industry (CMHI). The contract will include a firm order for two vessels, with options for another two. An official at Saga LNG confirmed to Splash that the company has signed an MOU with CMHI for the shipbuilding contract. Currently the final design and contract work are under way and an official order will be placed in the first quarter of 2019. Saga LNG is expected to take delivery its first ever ship, a 27,000cu m LNG carrier from, CMHI’s Jiangsu yard early next year.
[Source: Splash 24/7 16/11/2018]
CS LNG comment: In the UK Saga is a holiday firm for over 60’s so having an image of zimmer framed LNG carriers is hard to shake! But it is just an MOU.
3. TWO THIRDS OF LNG ORDERS PLACED THIS YEAR ARE SPECULATIVE
Two thirds of the LNG orders placed this year have been speculative, according to Norwegian owner Awilco LNG, in a sign of the changing scene in this historically conservative sector. A total of 42 newbuilding orders have been placed year to date of which about 27 are assumed speculative, Awilco LNG stated in its latest quarterly report. Historically the LNG sector had a very small spot market, with the hugely expensive newbuilds tending to be ordered with long term contracts already secured. However, with the entrance of many new players in recent years the ratio of long term versus spot has changed considerably in the LNG trades. The current orderbook for LNG vessels above 100,000 cu m – excluding FSRUs and FLNGs – is 93 vessels, of which 37 are potentially available for contract, Awilco LNG stated. “Although the orderbook represents almost 20% of the fleet, market analysts expect the 91mtpa of new LNG production scheduled to start up from 2018 to 2021 to require more vessels than the current available tonnage and orderbook during periods of high ton-mile demand,” the Norwegian owner stated yesterday.
[Source: Splash 24/7 16/11/2018]
CS LNG comment: And that is why rates will not stay in 6 figures!