Japan increases LNG flexibility through collaboration with S.Korea and Italy
Japan agreed to cooperate with South Korea and Italy in the procurement of LNG. It is the second largest LNG importer behind China, which seeks more flexibility while strengthening energy security. JERA, Japan’s largest utility company, and South Korea’s Korea Gas Corp. (KOGAS), a major buyer of LNG, are working together on joint procurement, cargo exchanges and other forms of collaboration, the Japan Ministry of Economy, Trade and Industry said in a Sunday statement. The South Korean Ministry of Trade, Industry and Energy, which co-signed the statement…
Vietnam will select an investor for the $2.5 billion Nghi Son LNG Power Plant by October
A provincial official in Vietnam's Thanh Hoa Province said that authorities plan to select a developer for a $2.5billion LNG-fired energy plant by October through a competitive bidding process. The Nghi Son LNG Power Plant, located in the Nghi Son Economic zone of the province, would have a capacity of 1.5 gigawatts. It would begin commercial operations in 2030. Nguyen Tuan, the deputy director for the zone, said that the bids would be opened on 30 September and the investor's name would be announced in mid-October or at the end of October. Tuan said that the project will also include a LNG terminal, storage and regasification facility.
CNPC Pulls Staff from Iraq Oilfield
China National Petroleum Corp (CNPC), a top investor in Iraqi oil, has withdrawn about 20 employees from the West Qurna-1 field operated by U.S. major Exxon Mobil because of tensions in the region, a company source familiar with the matter said.CNPC made the move on Sunday after last week's killing of Iranian general Qassem Soleimani in a U.S. drone strike in Iraq, the Beijing-based source said, adding that the state firm has kept staff in place at two other fields.Tehran retaliated with missile attacks on U.S.-led forces in Iraq on Wednesday, stoking fears of a wider war."CNPC pulled out its staff from West Qurna on Jan.
Prelude FLNG Starts Production in Australia
Royal Dutch Shell said on Wednesday it has begun output at its Prelude floating liquefied natural gas (FLNG) facility in Australia, the world's largest floating production structure and the last of a wave of eight LNG projects built in the country over the last decade.Though the project started up later and cost more than originally estimated, it is expected to further cement Australia's lead as the world's biggest LNG exporter, after the country took the crown in November.In a statement, Shell said wells have now been opened at the Prelude facility, located 475 kilometers north-north east of Broome in western Australia.
Prelude FLNG to Start Producing at End-2018
Royal Dutch Shell expects production at its Prelude floating liquefied natural gas (LNG) unit to start at the end of the year, a spokeswoman told Reuters on Tuesday."We continue to progress Prelude towards operations, with safety and quality being our main focus ... We expect to see production around the end of the year," she told Reuters in an emailed statement.Prelude - which will process natural gas produced offshore northern Australia and export it as LNG - is expected to have an annual LNG production capacity of 3.6 million tonnes.
Mitsubishi Signs on $31 Bln LNG Canada Project
Japanese trading house Mitsubishi Corp said on Tuesday it will join in developing the LNG Canada project in British Columbia led by Royal Dutch Shell, which has taken a final investment decision to go ahead with the development.The C$40 billion ($31 billion) project, on the west coast of Canada, will consist of two liquefied natural gas (LNG) production facilities, known as trains, that are expected to export about 14 million tonnes per year of the fuel.LNG Canada is a joint venture between Shell, Malaysia's Petronas, PetroChina Co Ltd, Mitsubishi and Korea Gas Corp.Mitsubishi said it share of the project is 15 percent and it will take delivery of 2.1 milli
S.Korea LNG Imports Set to Ease from Record
South Korean imports of liquefied natural gas are set to ease from record levels racked up in the first-half of the year, with appetite for the fuel from utilities seen fading as a raft of nuclear power stations come back online.The country's imports of the commodity jumped nearly 16 percent year-on-year to a record 22.7 million tonnes in the first six months of 2018, according to customs data in mid-July, boosted by demand from power firms as around half the nation's 24 nuclear plants were shut for maintenance.But with an average of only six reactors expected to be offline over the rest of the year…
Exxon Expands Mozambique LNG Project to Cut Costs
Exxon Mobil will expand its Rovuma liquefied natural gas (LNG) project in Mozambique by half to cut production costs as the partners prepare to book the plant's supply and formally tap lenders in September, the company told Reuters.The U.S. oil giant took charge of the East African LNG project's onshore operations following a $2.8 billion deal with Italy's Eni last year, adding to its suite of projects in Qatar, Papua New Guinea, Russia and the United States.It now aims to build the world's biggest liquefaction units, or trains…
Woodside Mulls Texas Sempra LNG Exit
The chief executive officer of Woodside Petroleum Ltd said on Tuesday that Australia's biggest independent oil and natural gas company will soon decide whether to continue to invest in Sempra Energy's Port Arthur liquefied natural gas (LNG) export project in Texas. "We've got to make some decisions pretty soon about our continued pursuit (of Port Arthur) with Sempra," said Coleman, noting that Woodside has been paying part of the project's development costs. "What we've been doing is just paying our way (with Port Arthur), and whether that is going to give us an adequate return, I would say today that is very challenged," Coleman said.
Russia's Novatek, S.Korea's Kogas Sign LNG Agreement
Russian energy company Novatek and South Korea's state-run Korea Gas Corp (KOGAS) signed an agreement on liquefied natural gas (LNG) cooperation after talks between Russian President Vladimir Putin and his South Korean counterpart, Moon Jae-in, on Friday.After the signing of the agreement, Putin said South Korean firms may join Novatek's Arctic LNG project. Reporting by Denis Pinchuk and Polina Nikolskaya; Writing by Tom Balmforth
New LNG Contract Framework to Spur 'Oil-like' Trading Model
Introduction of GTC contracts could spur trading, cut costs; traders say existing system inefficient and tedious. A new umbrella contract meant to streamline trading of liquefied natural gas (LNG), bogged down in red tape and wrangling over terms, could boost liquidity, draw in new entrants and speed up the market's transition to an oil-like model. Already a mainstay of crude oil and pipeline gas trading, general terms and conditions (GTCs) provide a framework that traders can opt into by reference, scrapping the cumbersome system which currently sees LNG bought and sold through a web of bilateral master sales agreements (MSAs).
Cheniere's LA Sabine Pass LNG Output Dips
The volume of gas flowing into the facility dropped from about 3.2 billion cubic feet per day on Wednesday to 2.8 bcfd on Thursday and a projected 1.5 bcfd on Friday, Reuters data showed. One bcfd is enough gas to fuel about five million U.S. homes. The plant had been operating near full capacity with about 3.2 bcfd of gas flowing in since mid-January when freezing water during a brutal cold snap forced the company to briefly reduce operations. Officials at Cheniere would not comment on the latest reduction. Earlier this week, the company said its operations were not affected following an order on Feb.
KOGAS in LNG Arbitration with North West Shelf Gas
South Korea's state-run Korea Gas Corp (KOGAS) has gone into an arbitration with Australia's North West Shelf Gas to settle a liquefied natural gas (LNG) contract that ended in 2016, a company spokesman said on Monday. The KOGAS spokesman declined to give further details. Woodside Petroleum, the operator of the North West Shelf joint venture was not immediately available for comment. The arbitration relates to a difference over an agreed price renegotiation during a mid-term supply contract, a source familiar with the matter told Reuters, declining to be named due to the sensitivity of the matter.
Swiss Traders Grab $10 Billion Slice of LNG Market
Traders mopping up LNG glut, finding new emerging market buyers. Swiss trading houses are muscling in on the global market for liquefied natural gas, until now the preserve of energy giants, and expect to grab a $10 billion share of the rapidly growing business this year. Trafigura, Gunvor, Vitol and Glencore are all shaking up a decades-old system dominated by Western oil majors and state energy producers which sell LNG directly to large consumers on long-term contracts. They plan 2017 shipments that will be more than triple the 2015 level, according to Reuters calculations based on figures for the four traders provided by trade sources.
KOGAS to Receive first Cheniere LNG Cargo
KOGAS to receive first LNG cargo from Cheniere in July; this marks start of 20-year supply contract. Korea Gas Corp (KOGAS) will early next month receive its first liquefied natural gas (LNG) cargo under a long-term supply deal with U.S. exporter Cheniere Energy, two sources at the South Korean company said on Friday. The 74,000-tonne LNG cargo was loaded from Cheniere's Sabine Pass export terminal in Louisiana and is scheduled to arrive at the port of Tongyeong, South Korea on July 2, one of the sources said. Both sources declined to be identified.
LNG Sellers, Asian Buyers Spar Over Contract Terms
A spat brewing between Qatar, the world's No.1 producer of liquefied natural gas (LNG), and its biggest customers in Japan underscores rising tensions between buyers and sellers of the super-chilled fuel as a supply glut unbalances the market. Importers of LNG having been pushing for greater benefits amid the surplus, signing new, cheaper contracts that give them more flexible terms, while exporters try to preserve long-term supply deals written in their favour during tighter markets. Worried some buyers are becoming too bold in their push for an advantage…
Australia Plans to Limit LNG Exports
Australia's conservative government unveiled a radical plan on Thursday to restrict exports of liquefied natural gas (LNG) at times when domestic shortages push up local prices, aiming to ease soaring energy costs for local manufacturers. The plan would allow Australia's resources minister to impose controls on LNG exports on advice from the market operator and regulator, as the government seeks to cap domestic gas prices, which have become a political hot potato. "It's not a threat. This will be export controls. They will not be able to export gas if that has the consequence of reducing the availability of gas for the Australian market…
South Korean Tender Stirs LNG Market
Asian spot LNG prices jumped this week, buoyed by hopes Korea Gas Corp's new tender would match past buying sprees and by emerging demand from China and Japan. Spot prices for June delivery rose to $5.70 per million British thermal units (mmBtu), a 20 cent jump over last week, but traders cited sharply divergent views on pricing, saying the disagreements contributed to market inertia. Still, Korea Gas Corp's Thursday tender for June and July supply - set to close on April 26 - immediately stirred up bullish offers, rescuing an otherwise muted trading week.
Korea Gas Corp Launches Tender for June, July LNG Cargoes
Korea Gas Corp has launched a tender seeking to buy liquefied natural gas (LNG) cargoes for delivery in June and July, trade sources said on Thursday. The scope of the company's demand is unclear as each supplier has a limit on the number of cargoes it is allowed to offer, but the firm has not spelled out an upper limit for deliveries, trade sources said. (Reporting by Oleg Vukmanovic)
Top LNG Buyers Form Alliance to Push for Flexible Contracts
The world's biggest liquefied natural gas (LNG) buyers are clubbing together to secure more flexible supply contracts in a move that further shifts power to buyers rather than producers. Japan, China and South Korea are the world's biggest LNG importers, accounting for about 55 percent of global purchases, according to data from energy consultancy Wood Mackenzie. The countries' biggest respective buyers are joining together to extract concessions from producers that would give them supply flexibility such as having the right to re-sell imports to third parties, something they are not allowed to do under so-called destination restrictions.
