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[waldron] 14/1/2019 10:57

Home LNG 14 January 2019 ‘Long-term LNG contracts review (3Q18)’ released

‘Long-term LNG contracts review (3Q18)’ released

Published by Will Owen, Editorial Assistant
LNG Industry, Monday, 14 January 2019 09:30

The ‘3Q18 long-term LNG contracts review – Qatar signs the biggest LNG contract’ report has been added to ResearchAndMarkets.com’s offering.

A total of seven long-term LNG contracts were signed in 3Q18. Three LNG contracts were signed for the export of LNG from North America, and two each from Oceania and the Middle East.

The biggest long-term LNG contract in the quarter was signed between Qatargas Operating Company Limited and PetroChina International Co. Ltd. on 10 September 2018. According to the contract, Qatargas Operating Company Limited will supply 3.4 million tpy of LNG for a period of 22 years, from 2018 to 2040.

[the grumpy old men] 10/1/2019 14:30

Star Business Journal

Shell LNG plant blockade gets no easy fix from British Columbia
By Natalie Obiko PearsonBloomberg
Thu., Jan. 10, 2019

British Columbia Premier John Horgan gave little sign his government was ready to intervene in a contentious blockade obstructing Royal Dutch Shell PLC’s $31 billion (U.S.) gas export project, shying away from condemning the Indigenous group that’s defied a court order to remove barricades.

“There is no quick fix to resolving issues that go back to 1876 and beyond,” Horgan said, referring to the year of Canada’s Indian Act and the thorny legacy created in British Columbia, where most First Nations have never formally ceded jurisdiction of their ancestral lands. “We recognize the right of individuals to protest.”
RCMP officers join hereditary chiefs and supporters as they walk towards Unist’ot’;en camp near Houston, B.C., on Wednesday, January 9, 2019.
RCMP officers join hereditary chiefs and supporters as they walk towards Unist’ot’;en camp near Houston, B.C., on Wednesday, January 9, 2019. (CHAD HIPOLITO / THE CANADIAN PRESS)

But he also acknowledged that the project, LNG Canada, had met every requirement to proceed and had the support of all 20 First Nation groups along its corridor, including the Wet’suwet̵7;en on whose lands the blockade is taking place. “We believe that LNG Canada has met the obligations that we asked them to achieve.”

The blockade underscores how hard it’s become for Canada to clear the way for sanctioned energy projects — even those blessed by all levels of government and elected Indigenous leaders. When Shell and its four Asian partners agreed to invest last October after a decade of negotiations, the project was feted as the blueprint for how industry should work with First Nations.

Yet in the months since, a group of holdouts have erected barricades on a public road, preventing TransCanada Corp. from working on the 676-kilometer Coastal GasLink pipeline that will supply the export facility. The protesters ignored a November court order to allow access.

“It’s important to understand that construction time lines require us to gain access to the area and begin activities as soon as we safely can to keep the current construction schedule and time lines in place,” Jacquelynn Benson, a spokeswoman for Coast GasLink, said in an email. “Any delays to that would affect our ability to meet those dates.” LNG Canada didn’t immediately respond to a question about delays to the project.

The project — also backed by Petroliam Nasional Bhd, Mitsubishi Corp., PetroChina Co. and Korea Gas Corp. — is Canada’s largest infrastructure project ever and the world’s biggest planned liquefied natural gas facility in years.

Indigenous leaders, including a former Wet’suwet̵7;en elected chief, have lamented the blockade for threatening a project that offers rural communities their best shot at economic development. Yet since Monday, when police arrested 14 to enforce the court order and restore access, protests have flared up across the nation in support of the blockade.

Trans Mountain

In an October interview, Horgan credited LNG Canada’s success to its Aboriginal support, contrasting it against Trans Mountain, the oil pipeline bought by the federal government from Kinder Morgan Inc. Shell was able to reach agreements with all Aboriginal groups, whereas “Trans Mountain was not,” he’d said. “I think that speaks for itself.”


Three months later, it’s not clear that made such a difference.

“British Columbia is unique in Canada — we have unceded territory and in every corner of the province we have court ruling after court ruling,” Horgan told reporters Wednesday, saying he’d spoken to Prime Minister Justin Trudeau about the impasse late Tuesday. The project, he said, “highlights the challenges of reconciliation.̶1;

[la forge] 08/1/2019 12:37

US carbon emissions see largest yearly gain in 8 years, data show
Published 38 min ago
Anmar Frangoul




Key Points

The figures are based on “preliminary power generation, natural gas, and oil consumption data.”
Transportation sector remains largest source of emissions in the U.S. for the third year in a row.

GP: Greenhouse Gas Emissions In The U.S.
Vehicles traveling along the The New Jersey Turnpike in Carteret, New Jersey.
Kena Betancur/VIEW press | Corbis News | Getty Images

U.S. carbon dioxide (CO2) emissions saw a yearly increase of 3.4 percent in 2018, according to preliminary estimates released Tuesday.

The rise represents the second-biggest yearly gain in over two decades, independent research provider the Rhodium Group said in a note. The figures are based on “preliminary power generation, natural gas, and oil consumption data.” The increase was only surpassed by the 2010 figures when the economy was bouncing back from the global financial crash, it said.

Breaking the figures down, the transportation sector remained the largest source of emissions in the U.S. for the third year in a row, with “robust growth in demand” for both diesel and jet fuel offsetting a “modest” drop in gasoline consumption.

While a record amount of coal-fired power plants were shut in 2018, emissions from the power sector grew by 1.9 percent, the note said. This was down to natural gas replacing the majority of this lost generation and feeding the majority of growth in electricity demand.

[sarkasm] 06/1/2019 07:03

BABY ITS COLD OUTSIDE

[sarkasm] 06/1/2019 06:43

European Gas Market Braces For Price Slump
By Irina Slav - Jan 05, 2019, 4:00 PM CST
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Gazprom LNG

At the end of last year, Gazprom’s chief executive Alexei Miller said he expected Gazprom’s natural gas deliveries to Europe and Turkey to book another record-breaking year in a row, reaching 201 billion cubic meters. Now, the gas market in Europe is anticipating a price drop for the first time as Gazprom expects to keep exports to Europe at the same level this year and next, Bloomberg’s Vanessa Dezem reports.

Gas prices have been steady in Europe over the past four years but after a mild winter—for now—Gazprom217;s export plans and full storage facilities could combine to put increased pressure on prices, which will increase further in the summer when Wood Mackenzie expects a rise in LNG deliveries to Europe as well: Morgan Stanley forecasts LNG imports into Europe would rise by 14 percent to 56 billion cubic meters this year.

According to Dezem, the increase in LNG deliveries will be in large part determined by the extensive LNG import and transportation infrastructure on the continent, which makes it a destination of choice for spare LNG cargoes from various delivery points. But some of the LNG expected to flow into Europe will likely also come from Russia: Novatek is currently ramping up production at its third liquefaction train at the Yamal LNG facility.

But U.S. LNG is also set to flow into Europe in larger amounts. Late last year Cheniere Energy sealed a long-term deal for LNG deliveries with Poland. The company also launched its second LNG project, in Corpus Christi, Texas, and added another liquefaction train to its first plant, in Sabine Pass. Add to this the two megaprojects that began production offshore Australia in 2018 and you get a lot of LNG capacity coming online, adding pressure on gas prices.
Related: OPEC Oil Exports To The U.S. Fall To Five-Year Low
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However, this pressure may come to pass relatively quickly. According to a Bloomberg survey among seven analysts, the average price for the benchmark Dutch next-month gas contract would be 22 euro (US$25) per MWh. That’s only slightly lower than the average for 2018, which stood at 22.28 euro (US$25.37) per MWh. But that’s in the short term. Over the longer term prices will likely stabilize higher and part of the reason will be Russian pipeline constraints.

Though it may sound surprising at first, here is the explanation supplied by Wood Mac senior research analyst for gas and LNG, Hadrien Collineau, as quoted by Hydrocarbon Engineering: “Russia currently has 257 billion m3/yr of export capacity to Europe. 128 billion m3/yr of that is Ukraine transit capacity. Nord Stream 2 and TurkStream add 87 billion m3/yr of capacity but these links will make use of existing European infrastructure, which then limits the volume of gas that can transit Ukraine to 20 billion m3/yr. Consequently, overall Russian export capacity to Europe will only increase to 235 billion m3/yr.”

In the meantime, demand for natural gas in Europe will be on a steady upward curve as local production declines due to natural depletion and coal plants are being retired, to be replaced with gas-fired capacity or renewables. Enter more LNG, seeing as the EU will hardly be particularly enthusiastic about more pipelines from Russia. So while in the near term gas prices in Europe may experience some pressure that will weigh them lower—especially if the winter continues to be mild—there is no reason to worry about the longer term. Steady demand growth would ensure healthy price levels even after Nord Stream 2 comes online.

By Irina Slav for Oilprice.com

[sarkasm] 18/12/2018 15:07

France Extends State Guarantee For Total-Participated Russian LNG Projects
By Tsvetana Paraskova - Dec 17, 2018, 6:00 PM CST Yamal LNG

France is extending the state guarantees for the Russian liquefied natural gas (LNG) projects Yamal LNG and the Arctic LNG 2 projects, Russian media quoted France’s Economy Minister Bruno Le Maire as saying after a meeting with his Russian counterpart Maxim Oreshkin in Paris.

According to Le Maire, France will also provide longer terms for loan repayment for the two Russian LNG projects, in which French oil and gas major Total has stakes.

“I confirm that we made a decision to give longer terms for repayment of loans, as for the state guarantees - this is a guarantee of the French state to the Yamal (LNG) project. All participants in this project requested it,” Russia’s TASS news agency quoted Le Maire as saying on Monday.

“This is a success and an economic signal, but behind there is a political signal that we want to strengthen our cooperation in the energy sector based on the Yamal (LNG) project. The same goes to the Arctic LNG-2 project - it is very important for us that the largest number of French companies could take part in it.”

Total holds 20 percent in the Yamal LNG project led by Russia’s Novatek and also participated by Chinese CNPC and Silk Road Fund. Yamal LNG started operations at the end of last year. Operator Novatek said earlier this month that Yamal LNG had reached full capacity at the plant’s three LNG trains.

In May this year, Total expanded its partnership with Novatek with the proposed Arctic 2 LNG project. Total and Novatek signed an agreement under which Total would buy a direct working 10-percent stake in Arctic LNG 2 on the Gydan Peninsula in the north of Siberia.

“Arctic LNG 2 will contribute to our strategy of growth in LNG by developing competitive projects based on giant low costs resources,” Patrick Pouyanné, Chairman and CEO of Total, said at the time.

The final investment decision for Arctic LNG 2 is expected next year, with first train start up potentially in 2023.

By Tsvetana Paraskova for Oilprice.com

[adrian j boris] 17/12/2018 18:06

BP closer to sanctioning northwest Africa FLNG
12/17/2018

Offshore staff

HAMILTON, Bermuda – BP has issued a limited notice to proceed to Golar LNG for provision of a floating liquefaction vessel (FLNG) for the Phase 1 Greater Tortue/Ahmeyim field development offshore Mauritania and Senegal.

This follows a preliminary agreement and heads of terms for a charter agreement with BP in April.

Golar LNG plans a vessel conversion at Keppel Shipyard in Singapore, which was also responsible for the FLNG Hilli Episeyo, incorporating Black and Veatch’s PRICO technology.

Discussions also continue concerning a minority investment in the vessel.

12/17/2018

[adrian j boris] 13/12/2018 08:46

Published 09:36 December 13, 2018
Updated 09:36 December 13, 2018

US Assistant Secretary for Energy Resources tells reporters that Nord Stream-2 seeks to deepen EU’s dependency on Russian gas.
By Kostis Geropoulos
Energy & Russian Affairs Editor, New Europe
+

The United States urged Germany to drop its political support for Russian monopoly Gazprom’s Nord Stream-2 project and warned companies that are involved in the construction of the gas pipeline that they face the risk of sanctions unless they withdraw from the controversial project.

US Assistant Secretary for Energy Resources Frank Fannon told a conference call with reporters on December 11 that Nord Stream-2 and an expanded Turkish Stream Pipeline, both of which bypass Ukraine, are designed to deepen Europe’s dependency on Russian gas and weaken the bloc’s security architecture.

“Germany can certainly remove their political support from the project…of the gas directive. That policy has been languishing for over a year and a half. That would be a positive step in advancing energy security,” Fannon said, fresh from a trip to the Czech Republic, Croatia, and Hungary.

Referring to the construction of the gas pipeline, which has an annual capacity of 55 billion cubic meters and connects Russia’s mainland pipelines to Germany through an underwater link in the Baltic Sea, Fannon said the US government has the ability to sanction Russia’s energy export pipelines under Section 232 of the Counter-Americas Adversaries Through Sanctions Act.

“Firms that are working with the Russian energy export pipeline sector are engaging in a line of business that carries a sanctions risk. We continue to review potential sanctions actions and encourage governments or companies to contact us if they have questions about this process,” Fannon said while shying away from discussing details about future any possible sanctions.



In an effort to lessen gas dependence on Russia, Fannon told reporters that the US would continue to support European energy diversification, including alternative sources of energy such as liquefied natural gas (LNG).

The controversy surrounding the Nord Stream-2 project stems from the fact that most of Europe’s gas from Russia passes through Ukraine, which emerged as a budding European and NATO ally following Moscow’s illegal annexation of Crimea and its subsequent war in eastern Ukraine, caused the European Union and the United States to impose stiff targeted sanctions against the Kremlin.

Russia’s pipelines through Ukraine are a major source of revenue for Kyiv and a key contributor to the Ukrainian state budget. Many in the West are concerned that by allowing Moscow to bypass Ukraine by diverting European gas supplies directly to Germany, Kyiv will be effectively cut off from a vitally important money maker that would further cripple its economy.

The primary concern for most observers who oppose the continued development of Nordstream-2 makes Europe more dependent on Russian gas and pipelines at a time when the bloc’s own home-produced gas resources are diminishing.

Responding to those concerns, Nord Stream’s EU representative, Sebastian Sass, told New Europe, “Politically motivated interventions against Nord Stream-2 would counteract the interests of European consumers and the EU’s energy security,” an assertion that is in line with certain EU-based proponents of the project that include German industrial giants such as BASF, as well as the consortium financing the project – Gazprom, Uniper and Wintershall of Germany, Austria’s OMV, Engie from France, and Royal Dutch Shell.

These companies have long asserted that Nord Stream-2 is being implemented in full compliance with both international law and EU legislation, while each considers it essential to secure Russian gas as a way to compete with rival US companies, particularly when, in their eyes, American LNG supplies are far more expensive and logistically challenging than betting on gas piped by corporations with ties to the Kremlin.

[sarkasm] 06/12/2018 21:52

Is This The Next Big Petrochemical Hub In The U.S.?
By Nick Cunningham - Dec 06, 2018, 3:00 PM CST
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Petchem plant

The U.S. government wants to help build a petrochemical hub in Appalachia, one that could rival, or complement, the concentration of petrochemical facilities on the Gulf Coast.

The shale gas bonanza over the past decade has led to a tidal wave of cheap natural gas, which has resulted in shuttered coal-fired power plants, new gas-fired generation and even LNG export terminals. It has also led to a proliferation of pipelines, processing facilities and chemical complexes.

Much of the gas is coming from the Marcellus and Utica Shales, located in Pennsylvania, West Virginia and Ohio. While a lot of the gas is burned in the region for heating and electricity, the thousands of shale wells in the region are located far from the downstream facilities on the Gulf Coast that turn gas into plastics and fertilizers.

However, that is set to change. Royal Dutch Shell gave the greenlight to a massive $6 billion ethane cracker facility just outside of Pittsburgh, one of a slew of planned petrochemical facilities for the region. Taken together, the chemical and petrochemical boom could turn Appalachia into a new “hub” of sorts of plastics and other petrochemical products.

The federal government is hoping to egg this on. The Department of Energy just published a report for the U.S. Congress trumpeting the case for a new petrochemical hub.

The early phase of the shale gas revolution, from the mid- to late-2000s, saw a surge in supply from the Barnett and Haynesville Shales. That led to the construction of a handful of ethane crackers on the Texas coast. The next phase of the shale gas drilling frenzy occurred from roughly 2010 or so onward, and it was concentrated in the Marcellus shale. Today, the Marcellus and Utica shales produce in excess of 30 billion cubic feet per day (Bcf/d), by far the largest source of shale gas in the country.

Shale gas production is growing so quickly that the industry essentially needs more uses for their product. Much of the gas in the Appalachian region is “wet gas,” which means that it comes with a relatively higher concentration of natural gas liquids such as ethane. All of that ethane can be a feedstock for plastics.
Related: Libya Closes All Oil Ports, Expects To Shut-In 150,000 Bpd

To date, a few companies have built pipelines to transport natural gas liquids to the Gulf Coast and to Canada. Nevertheless, ongoing increases in both natural gas (methane) and NGL production (ethane and other liquids) has meant that “the amount of ethane contained in raw natural gas production streams has exceeded domestic demand or the ability to export it abroad,” the EIA wrote in a report earlier this year. “This situation has led producers to leave some of the ethane in the natural gas stream, up to allowable limits set by natural gas pipelines and distribution systems, and to sell it as natural gas, rather than recover and market ethane as a separate product.”
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We are now entering the next chapter of this story, with major companies building downstream plants within Appalachia, potentially transforming the region into a new petrochemical hub. Just as Texas saw a wave of petrochemical investment in the early part of this decade following the spike in gas production in nearby Texas and Louisiana, the Appalachian region is in the midst of a petrochemical construction boom.

The U.S. Department of Energy forecasts that natural gas liquids will double between 2017 and 2050, “supported by an increase in global petrochemical industry demand.” However, much of the growth is frontloaded – essentially between now and 2025. “[I]ncreased demand spurs higher ethane recovery and producers focus on natural gas liquids-rich plays, where NGL-to-gas ratios are highest.” DOE is, of course, talking about the Marcellus and Utica shales in Western Pennsylvania, Eastern Ohio and parts of West Virginia.

There is likely to be environmental and public health problems associated with the petrochemical boom, which will also spur along even more shale drilling. Yet, the DOE’s remit in the report, as directed by Congress, was to only focus on the economic benefits, possible locations, infrastructure needs and energy security benefits. As such, the agency didn’t look at any of the downsides of the new Appalachian petrochemical hub.

“If the Appalachian region were its own country, it would be the third-largest gas producer in the world,” Secretary of Energy Rick Perry said on Tuesday.

DOE advocated for a petrochemical hub in Appalachia as a way to diversify the downstream sector, which is currently heavily concentrated on the Gulf Coast. “The present-day geographic concentration along the Gulf Coast of petrochemical infrastructure and supply may pose a strategic risk, where severe weather events limit the availability of key feedstocks,” the DOE report said.

When Shell’s new ethane cracker comes online in the early 2020s, it could supercharge shale gas drilling in the Marcellus and Utica shales. The region is already setting records for production. But a new wave of downstream facilities, which will soak up a lot of gas, could lead to even more drilling.

By Nick Cunningham of Oilprice.com

[adrian j boris] 06/12/2018 10:41

LNG Industry



06 December 2018 Small scale LNG: powering European initiatives to build greener fuel economy

Small scale LNG: powering European initiatives to build greener fuel economy

Published by Will Owen, Editorial Assistant
LNG Industry, Thursday, 06 December 2018 10:30


The demand for the European small scale LNG market is projected to grow from €1.9 billion in 2020 to €5.8 billion by 2030, while actuating at an estimated CAGR of 11.8% from 2020 to 2030.

Europe is likely to experience faster growth as compared to other regions in the global market owing to the mandate set by European Union on sulfur emissions. For instance, the sulfur emissions cap for marine fuel is set as 0.5% by the year 2020. Favourable prices of LNG along with growing demand from key sectors such as transportation and power generation, is projected to augment market demand over the forecast period. Also, various government regulations in light of environmental benefits of LNG have fostered the market growth in the region.

Small scale LNG includes the direct use of LNG in its liquid form. Conventional modes of regasification and subsequent introduction of LNG into the gas transmission grid for lesser production capacities have now become a part of small scale LNG. These small scale liquefaction plants possess a production capacity of less than 500 000 tpy, and vessels with a LNG storage capacity less than 30 000 m3. Small scale LNG plants are re-deployable and primarily designed for small gas field. Small scale LNG meets the growing demand from the shipping and trucking industries for fuels that are environment friendly as compared to oil and diesel.

Key findings from the report:

The European small scale LNG market is expected to reach €5.8 billion by 2030 at a CAGR of 11.8%
Based on application:
The road transport fuel segment is likely to be the largest segment of the European small scale LNG market in 2020
The marine fuel segment is expected to emerge as the fastest growing segment, over the forecast period
Based on off grid power generation:
Off-grid industrial segment is projected to hold the largest share of the European small scale LNG market in 2020
Based on supply mode:
Ship-to-ship segment is likely to dominate the market in 2020 and the trend is likely to continue over the forecast period.

Marine fuel segment: expected to experience the fastest growth during 2020 – 2030

The marine fuel segment is likely to propel at the fastest CAGR of 12.48% over the forecast period. A rise in bunkering operations has been observed for small scale ships, which suggests that the marine use of LNG is also becoming popular. Moreover, the regional fleet of LNG fuelled ships in operations are increasing, such as supply & service vessels, and passenger ships among others. LNG offers superior performance, while meeting the environmental requirements as compared to other fuels. Considering these factors, the demand for LNG as a maritime fuel across the region is expected to grow significantly.

Road transport fuel segment : likely to dominate the market by 2030

The road transport fuel segment is likely to dominate the market in 2020 with a value of €888.67 million owing to the increasing use of LNG as a cleaner road transport fuel in the region. Additionally, the volumes in truck loading have gone up by 8% as compared to last year, along with an increase in the number of LNG stations across Europe.

Off-grid power generation segment

Small scale LNG has emerged as an effective and reliable solution for off-grid power generation and supply. On account of its flexibility, small scale LNG has fuelled demand in areas which were previously unsuited to LNG as a fuel source, such as off-grid power generation in remote areas or islands. These include the use of small scale LNG in households as well as for industrial purposes. A key driver for demand in off-grid power generation application is the development of an efficient and sustainable logistics network so that end users in remote locations can be reached. In addition, the investment required to switch towards LNG power is relatively lower than for other applications such as trucking and bunkering and no major infrastructure is required.

Small scale LNG infrastructure

LNG refuelling stations are now appearing on major EU trunk lines. The key suppliers of small scale LNG in Europe include Skangas in Sweden; Gaz Natural Fenosa and Enagas in Spain; Gazprom in Russia; ENGIE in France; and Liquigas in Italy. Most of the European LNG import terminals already offer truck loading and the availability of loading bunkering ships is increasing as well. Regasification terminals in the region have adapted their services to market conditions, while offering flexibility as well as developing small scale LNG infrastructure. These small scale LNG infrastructure and services contribute towards increasing regional security of supply along with reducing EU emissions.

Europe – regional insight

Europe has witnessed significant development in small scale infrastructure in recent years. Countries such as France, Spain and the UK have multiple small scale LNG import terminals supplying LNG to industries, off-grid power generation units and truck refuelling stations via truck reloading operations. These terminals also supply LNG to the bunkering terminals for the purpose of providing LNG as a marine fuel for LNG fuelled ships. Major European countries plan to set up a bunkering network by the year 2020 for maritime operations. By the year 2025, these countries plan to have a bunkering network to serve inland waterways vessels as well. Germany, France, Spain and the UK, among other countries, are developing the ‘Blue Corridor’ network, which aims to establish LNG as an alternative fuel for medium and long-distance transport. This initiative is expected to propel the demand for LNG as a transport fuel segment over the next few years. Additionally, countries with islands are expected to adopt LNG as a fuel for off-grid power generation.

The report segments European small scale LNG market on the basis of application, infrastructure, and region.