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By CS LNG, May 7 2019 10:47AM

1. WORLD'S SECOND-BIGGEST LNG TANKER CLASS VESSEL TO TRANSIT PANAMA CANAL FOR FIRST TIME

A vessel in the world's second-largest liquefied natural gas (LNG) tanker class is set to pass through the Panama Canal for the first time, the canal's chief executive said, expanding the Americas to Asia trade route for the fast growing commodity. The 'Al Safliyah', a 'Q-flex' tanker able to carry about 210,000 cubic metres of LNG, is currently in the North Pacific and on its way to Panama after discharging a cargo from Qatar into Korea Gas Corp's (KOGAS) Tongyeong terminal on April 21, shipping data in Refinitiv Eikon showed. "This is the first Q-Flex to transit the Panama Canal," Jorge Quijano, chief executive of Panama Canal Authority told Reuters. The Panama Canal was expanded in mid-2018 to handle larger oil and gas tankers, but this is the first time an LNG tanker of this size will pass through it. "This size of vessel can use the Panama Canal and could be deployed to carry LNG from the natural gas liquefaction plants in the U.S., Trinidad and Tobago and Peru," Quijano said. The ship's charterer is Qatargas, according to LNG trading and broker sources.

[Source: The Economic Times 03/05/2019]


CS LNG comment: This sounds like a very expensive PR exercise otherwise why on earth would a ballasted Qatari ship cross the Pacific to transit the Panama Canal. Possibly loading at Sabine for a trip to Europe? It will be good to read the report on the transit though.

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2. EXCELERATE BEGINS OPERATIONS AT SECOND OFFSHORE LNG FACILITY IN BANGLADESH

The Woodlands liquefied natural gas company Excelerate Energy has placed its second offshore LNG facility in Bangladesh into service. Specializing in offshore import terminals that use a special type of LNG tanker known as floating storage and regasification units, or FSRUs, Excelerate Energy said its Summit LNG project is now in operations in the Bay of Bengal. Anchored about 1.25 miles away from Excelerate Energy's Moheshkhali Floating LNG terminal near Cox's Bazaar, Bangladesh, Summit LNG is expected to double the South Asian nation's LNG import capacity. "The successful completion of the Summit LNG Terminal represents a significant positive change to Bangladesh's energy supply – helping bolster local industry while benefiting the citizens of the country," Excelerate Energy Managing Director Steven Kobos said in a statement. Developed through a 2017 concession from Bangladesh's state-owned company Petrobangla, Summit LNG has the capacity to deliver 500 million cubic feet of natural gas per day through an underwater pipeline. "This natural gas will provide huge impetus to growth and development of Bangladesh. Summit will continue its endeavor to provide low cost environmentally friendly energy solutions to Bangladesh," Summit Group Founder Chairman Muhammed Aziz Khan said in a statement.

[Source: Houston Chronicle 02/05/2019]


CS LNG comment: Hopefully a more successful start up than their previous FSRU in Bangladesh.

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3. NSW APPROVES PORT KEMBLA LNG TERMINAL

NSW has approved plans by mining billionaire Andrew Forrest and Japanese partners to build a $250 million liquefied natural gas import terminal at Port Kembla, looking to cut gas prices and avert a supply shortage. The Port Kembla project is the first of five proposed LNG import terminals in Australia to receive planning approval. All of them are looking to help plug a looming supply shortage expected in Australia’s south-east in the 2020s. Australian Industrial Energy, the joint venture planning to build the berth for a floating LNG import facility at Port Kembla, about 100km south of Sydney, said with the approval in hand it would focus on lining up gas customers. It is aiming to make a final investment decision around the middle of this year. “This terminal could supply 70 per cent of our State’s annual gas demand and help ease the cost of energy bills for NSW families and small business owners,” NSW Energy and Environment Minister Matt Kean said. The joint venture partners are Mr Forrest’s Squadron Energy, world’s biggest buyer of LNG JERA Co and Japanese trading firm Marubeni. If they decide to go ahead with the project in the middle of this year, first gas could be delivered by late 2020, they said. “We look forward to providing the best solutions to secure stable and competitive gas supply for the businesses and people of NSW by utilising our own expertise as one of the world’s largest LNG players,” JERA’s head of upstream resources, Gaku Takagi, said in a statement. JERA is a joint venture between Tokyo Electric Power and Chubu Electric Power.

[Source: The West Australian 30/04/2019]


CS LNG comment: But can they be supplied by Australian LNG? Should do!

By CS LNG, Apr 23 2019 07:59AM

1. MOZAMBIQUE EXPECTED TO BECOME A TOP 10 GLOBAL LNG SUPPLIER

According to GlobalData, Mozambique is expected to become one of the world’s top 10 largest LNG producers by the mid-2020s, when over 30mtpa of LNG comes on stream, on a par with capacity in African leaders Nigeria and Algeria. The feed gas for new LNG projects will come from the ultra-deepwater Rovuma Basin, where over 125 trillion ft3 of recoverable natural gas resources have been discovered to date. This consists of 75 trillion ft3 in block Area 1 and 50 trillion ft3 in block Area 4. Participants in Area 1 and 4 are now progressing towards final investment decisions (FID) for the onshore LNG terminals. Cao Chai, Oil and Gas Analyst at GlobalData, says: “The development break-even gas price of around US$4-5 per thousand ft3 for the onshore LNG projects in Mozambique is competitive compared to current Japan spot LNG prices of US$9.24 per thousand ft3. This is due to the relatively low expected CAPEX per million tpy in comparison to other integrated LNG projects around the world, and the low upstream cost compared to non-integrated LNG projects in the Americas.” Both external and internal Mozambique-specific challenges have slowed progression of LNG developments in the country. However, positive signs such as securing additional gas sales and purchase agreements have formed the majority of the activity from Mozambique and Rovuma LNG participants so far in 2019. These contracts are a key part of the projects progression towards the construction phase, as they provide some certainty about future revenues to underpin the massive capex of nearly US$40 billion required to bring these facilities online. Chai concludes: “The advancement of LNG business in Mozambique will transform the country to a major global LNG supplier. It will also bring direct revenue to Mozambique government and promote the growth of local industries through a domestic gas component of the initial project and follow-on expansions. Furthermore, construction on the LNG megaprojects is expected to last for over a decade providing significant employment and training opportunities for Mozambicans.”

[Source: Energy Global 17/04/2019]


CS LNG comment: Good luck to this wonderful little country but they will need help from the World Bank and IFC by adopting a sensible approach to finance and credit risk.

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2. FINAL COMMISSIONING UNDER WAY AT CAMERON LNG

The final commissioning step is under way for Train 1 at Sempra Energy’s Cameron LNG facility in Louisiana, Kallanish Energy reports. The company Monday announced it has begun pipeline feed gas flow to the first liquefaction train of the $10 billion liquefaction/export project, located at Hackberry, Louisiana. "The entire Cameron LNG team has worked safely and diligently to reach this milestone and we expect to start producing LNG this quarter," said Lisa Glatch, chief operating officer of Sempra LNG and board chair for Cameron LNG, in a statement. "Sempra Energy is now one step closer to reaching our goal of building up to 45mtpa of LNG export capacity to serve global markets,” she added. Cameron LNG will begin ramping up the feed gas deliveries to the facility as it completes the commissioning process, the company said. The company has said it expects to begin production in the second quarter of 2019, with the first exports to follow shortly. All three trains are expected to be in production in 2019. Commissioning began last November. The initial three trains or units are capable of producing 12mtpa, or 1.7 billion cubic feet per day. Cameron LNG is jointly owned by affiliates of Sempra LNG & Midstream, Total, Mitsui & Co., and Japan LNG Investment LLC, a company jointly owned by Mitsubishi and Nippon Yusen Kabushiki Kaisha (NYK). Sempra Energy indirectly owns 50.2% of Cameron LNG. The Cameron project is one of five LNG export projects being developed in North America by Sempra Energy. The Federal Energy Regulatory Commission had approved the project in June 2014, and construction started in October of that year.

[Source: Kallanish Energy 17/04/2019]


CS LNG comment: 5 years plant construction for a brownfield site? This must be a record! Still better late than never but more LNG into an already over supplied market can only be good news for end buyers but losses for sellers!

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3. GIMI FLOATING LNG VESSEL CONVERSION PROJECT GETS GO-AHEAD

Singaporean marine company Keppel has received the final approval from Golar LNG's subsidiary Gimi MS to start the conversion of an LNG carrier as part of the Gimi floating LNG project in West Africa, Keppel said Wednesday. Keppel will convert a Moss-type LNG carrier into an FLNG vessel, capable of producing around 2.5mtpa of LNG in the first phase of the BP's Greater Tortue Ahmeyim project, located offshore Mauritania and Senegal. The contract is worth $947 million, while the vessel delivery is expected in the first half of 2022, Keppel said. The contract includes the design, detailed engineering and procurement of the marine systems, as well as conversion-related construction services. The work will be similar to the FLNG vessel Hilli Episeyo's conversion, which Keppel already undertook for Golar, it said. On Tuesday, Golar LNG received a firm $700-million underwritten financing commitment from Clifford Capital, ING, Natixis, and ABN Amro for the FLNG conversion work. Keppel also completed the 30% equity stake in the Gimi MS, with Golar owning the remaining 70%. In February, Golar LNG entered into a 20-year lease and operate agreement with BP for the charter of the Gimi FLNG. BP and its partners US Kosmos Energy and National Oil Companies Petrosen and SMHPM took a final investment decision on phase 1 of the Greater Tortue Ahmeyim LNG development in December. The project is expected to expand its capacity to 10 million mt/year in later phases. The Greater Tortue Ahmeyim project is based on an estimated 15 Tcf of offshore gas and is expected to produce its first gas in 2022.

[Source: Platts 17/04/2019]


CS LNG comment: Torture, sorry Tortue, gets the go-ahead but does it really make sense using a 40yr hull as the base unit?

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!

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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?

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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.

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