Insight and analysis for the global LNG industr y

Editorial: Feature: Feature: Country focus: Project

Pressure Testing South Asia’s Small-Scale Philippines: Major spotlight:
the European Shifting NGV LNG Opens Potential for Arctic
gas Market Opportunities Up Markets Small-Scale LNG LNG 2

CANADA — THE
SLEEPING

With massive untapped gas reserves

and coastlines on both the Atlantic and
Pacific basins, Canada has the potential
to become an LNG exporter of global
importance. But the significance of
Canada’s entry into the LNG market may
prove far greater than the simple addition
of another LNG exporting country.
 INDEX

6 13 20
BC AB

FEATURE: FEATURE: FEATURE:

Canada — the sleeping Giant South Asia’s Shifting NGV Small-Scale LNG Opens
Opportunities Up Markets

24 27
Northwest Northern
Passage Sea Route

Arctic
Polar Cap

COUNTRY FOCUS: PROJECT SPOTLIGHT:

Philippines: Major Potential for Arctic LNG 2
Small-Scale LNG Arctic LNG 2

Utrenneye
Gulf of Ob

South Tambey

Editorial .............................................. 3 LNG News ..............................................

Yamal LNG

32
Pressure Testing the European gas Market
Global ......... 32 Shipping & Transport ...... 44
Supply ......... 35 Corporate ........................ 47
Events and Conferences ............. 30 Demand ...... 39

Copyright 2019 Minoils Media: LNG Condensed Editorial: Ross McCracken ross.mccracken@naturalgasworld.com

Managing Director: Rick Gill rick.gill@naturalgasworld.com William Powell william.powell@naturalgasworld.com

Events/Advertising: Joao Salviano joao.salviano@naturalgasworld.com Design: Jeremy Seeman contact@jeremyseeman.com

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 2

 EDITORIAL
PRESSURE
TESTING THE
EUROPEAN GAS
MARKET
pot prices for LNG delivered into Asia have sunk
S to around $5/mn Btu, the lowest level in years,
reflecting increased supply and lacklustre demand
as a result of a relatively warm northern hemisphere winter.
China’s February imports may have been up a healthy 9.7%
year on year, but this was significantly less robust than Jan-
uary’s 27.8% year-on-year increase. Japan, South Korea and
India all saw February LNG imports fall substantially -- by
11.4%, 16.5% and 9.2% respectively year on year, accord-
ing to provisional data.
Oil prices by contrast are proving more resilient, with
Brent moving higher in late January to around $67.50/b.
Oil markets are finding support from a range of factors:
ongoing crisis in Venezuela, US sanctions on Iran, and ag-
gressive cuts in Opec production led by Saudi Arabia, which
was reported to be producing some 200,000 b/d below its
quota of 10.31mn b/d in February.
The net effect is a dramatic widening of the spread
between spot LNG prices and volumes bought on long-term
contract indexed to oil, which still make up the majority of
LNG trade, particularly in Asia. These contracts are usually
indexed with a time lag, typically six months. But six months
ago, the US was still to reimpose sanctions on Iran and had
yet to agree to a number of relatively generous waivers for
key Asian importers. The oil market was pricing in a much
larger effect and as a result Brent crude was some $10/b
higher than today, peaking over $86/b on October 23.
The large spread between oil and LNG prices will prove
a major test of how the LNG market has evolved. Oil-in-
dexed LNG and pipeline gas contracts, in Europe at least,
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 3
have seen major revisions in recent years, reducing the
oil-indexed component. Deals for some new US LNG have
been struck not with oil as the pricing anchor but the key
US gas trading point, Henry Hub. Moreover, there has been
an increase in flexibility with long-term contracts, reducing
destination restrictions.
A wide spread between high oil prices and low LNG
prices will serve both to increase buyers’ demands for in-
creased flexibility and give them leverage. It reinforces the
view that oil-indexed pricing is no longer relevant in an LNG
market increasingly commoditised in its own right, one
which is developing a wider financial architecture in support
of that commoditisation.
The other great test of a low-priced 2019 will be compe-
tition between pipeline and LNG supplies. Poland’s PGNiG
picked up its fourth spot LNG cargo of the year in February,
in what must have been an opportunistic exercise in bargain
hunting. Must-run US LNG can’t price into Asia, which
means it will stay in the Atlantic basin. With spot LNG in
Asia now at a discount to the Dutch TTF hub, Middle Eastern
producers will also be looking to move cargoes into Europe.
In a fully competitive world, LNG would start to displace
pipeline imports from key European suppliers like Rus-
sia and Algeria, or force down the price of pipeline gas.
However, long-term pipeline contracts with take-or-pay
conditions limit European importers’ flexibility, despite the
under-utilised state of the region’s LNG terminals. Some
LNG may find its way in to meet rising demand from gas-
fired generation, but European power prices are also weak
and a flood of cheap thermal coal appears to be on its way
into northwest Europe.
The situation will cause much frustration on both sides
of the market. On the part of buyers turning away cheap
LNG as a result of contractual pipeline obligations; and on
the part of LNG sellers offering a competitive product but
unable to gain market access. 2019 looks set to demon-
strate just how much flexibility LNG and gas markets have
gained over the last decade, but also clearly mark out areas
where open competition is still lacking.
— NGW
 CONTRIBUTORS
ROSS MCCR ACKEN
Ross McCracken was managing editor of S&P Global’s flagship analytical news-
letter Energy Economist for 13 years. He was formerly Platts crude oil manager
EMEA. Ross has written extensively on oil, gas and power markets, with a
particular interest in long-term energy forecasts, new technologies and China. He
graduated with an MSc from the London School of Economics in 1993.

DR. NEIL ALEX ANDER FORD

Dr. Neil Alexander Ford is a freelance consultant, journalist and expert witness
on African affairs, specialising in international relations, the energy sector and
political risk. Most of his work focuses on Sub-Saharan Africa, but he also writes
on other emerging markets.

Neil has a PhD in African international relations from the University of Edinburgh
and 20 years of experience as a writer and analyst for magazines, newspapers
and websites, including as associate editor of African Business magazine.

MARTIN DANIEL
After graduating from Oxford, Martin Daniel worked in the Economics Unit of the
British Coal Corporation and then the Supply, Transport and Markets team at IEA
Coal Research. He later founded the publication Global Private Power and worked
for FT Energy and then for S&P Global Platts as editor of Power in Asia and Inter-
national Gas Report. He is currently a freelance energy consultant.

WILLIAM POWELL
William has been reporting and commenting on Europe’s gas markets for 20
years. He started in journalism at PH Energy Analysis (now ICIS Heren) in 1995,
shortly before the UK devised the National Balancing Point -- Europe’s first gas
hub. His subsequent career has included senior management and editorial
positions at FT Energy, Petroleum Economist, Argus Media and Platts, where he
latterly edited International Gas Report. His focus has been on regional markets
and how they function. William also speaks Russian and has had several literary/
academic translations published.

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 4

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CANADA — THE
SLEEPING
Neil Ford
With massive untapped gas reserves
and coastlines on both the Atlantic and
Pacific basins, Canada has the potential
to become an LNG exporter of global
importance. But the significance of
Canada’s entry into the LNG market may
prove far greater than the simple addition
of another LNG exporting country.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 6
U
S shale cannot expand forever. At some
point, the decline of earlier wells will
start to limit its ability to grow and new
sweet spots will become harder to find. The In-
ternational Energy Agency puts this point around
the mid-2020s. Others, such as consultants Wood
Mackenzie, estimate closer to 2035.
The disparity in views highlights the uncertain
depth and longevity of the US shale resource, a
situation that applies just as much to Canada’s
less developed unconventional gas plays.
A plateau in US shale oil recovery implies
a plateau in associated gas at a time when the
US’s own appetite for gas is expected to have
risen sharply. Firstly, on the domestic front, as
the country transitions from coal to gas in power
 Proposed natural gas projects in northern British Columbia, Canada
Proposed LNG Export Terminal
Proposed Pipeline Compressor station
Coastal GasLink Pipeline (TransCanada)
Pacific Northern Gas Looping (Altagas)
Pacific Trail Pipeline (Chevron-Woodside)
Prince Rupert Gas Transmission (TransCanada)
Westcoast connector Gas Transmission
AK
Grassy Point LNG
WCC LNG
Aurora LNG Prince
Rupert LNG
Pacific
NW LNG LNG Canada
Douglas CHannel LNG
Kitimat LNG
Source: North West Institute
“ [LNG Canada] is both the
culmination of an extended saga, but
also a major point of departure.”
generation and builds multiple new petrochemi-
cals plants; and secondly for export internation-
ally as LNG and pipeline gas sent across the
Mexican border.
It is at this point – somewhere between
2025-2035 -- that the only two other seriously
developing shale prospects outside of the US
should be getting into their stride – Argentina’s
Vaca Muerta and Canada’s Montney and Duver-
nay formations, both of which will need LNG to
reach their full potential.
Canada’s two largest shale plays are estimat-
ed to hold some 500 trillion ft3 (14.2 trillion m3)
of gas in addition to 20 billion barrels of natural
gas liquids and 4.5 billion barrels of oil, according
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 7
Proposed Oil Pipeline
Potential Tanker Routes
Existing Pipeline or Pipeline
Right-of-Way
Existing Oil/Gas Well
Surface Locations
BC AB
to the country’s National Energy Board. Canada
is also stable, both politically and economically --
unlike its Argentinean competitor.
Canada’s gas resources arguably represent
the great opportunity of the next decade to meet
the demand created by a global shift away from
coal – one that is complimentary to the desire to
mitigate climate change, unlike its carbon heavy
and energy-intensive oil sands.
ON THE BRINK
After years of delay and uncertainty – a period in
which Canada’s ability to deliver large new energy
projects has come under serious scrutiny -- the
LNG Canada project should finally give the coun-
try its first LNG export capacity.
It is both the culmination of an extended saga,
but also a major point of departure. Other projects
are in the pipeline, but opposition to fossil fuel
development in some areas remains strong and
global competition stronger still, suggesting that
the country could still miss out on the full poten-
tial of its unconventional gas resources.
 Proposed natural gas projects in eastern Canada

Energie Saguenay LNG

“All Canada” NB
alternative
PEI
Stolt LNGaz AC LNG Inc.
QC ME

Bear Head
Goldboro
St. Stephen LNG Corp.
LNG Pieridae
Saint John NS
Energy Ltd.
ON LNG Development
Company Ltd.

VT
NH
LNG Import Point LNG Export point under review
NY
Approved LNG Export point under review

Maritimes and Northeast Portland Natural Gas

MA
Pipeline (M&NP) Transmission (PNGT)

TransCanada Pipeline M&N US & PNGT

CT Tennessee Gas Pipeline Algonquin Gas Transmission
RI
PA
NJ

Source: NEB

The country has historically relied on exporting
gas to the world’s biggest energy market, the
US, to the south. Even a dozen years ago, it was
widely expected that US and Canadian production
would be unable to satisfy US demand and that
LNG import terminals would have to be built.
However, the US shale boom turned the mar-
ket on its head. Planned import projects were can-
celled or mothballed and unconventional gas priced
some Canadian suppliers out of the US market.
A string of LNG projects were proposed in
the US, but also in Canada to take advantage
of the glut. The Canadian government has now
issued licences for 24 LNG export schemes
and about two-thirds of all proposed new LNG
production capacity in the world is located in
Canada and the US.
However, the expansion of US gas supply, the
existence of brownfield sites housing redundant
US LNG import terminals, and the sheer length of
new pipeline required to connect reserves with
proposed projects in Canada favoured US LNG
development. Several Canadian ventures were
cancelled and others postponed, particularly in
British Columbia.
Pacific Northwest LNG, Aurora LNG, Douglas
Channel FLNG, Grassy Point LNG, Malahat FLNG,
Prince Rupert LNG, Tilbury LNG and Triton FLNG
were all cancelled or delayed in 2016 and 2017.
A consortium of Canadian gas producers has
become so frustrated with delays that they hope
to develop their own project. Advantage Oil & Gas
Ltd, Seven Generations Energy Ltd, Peyto Explo-
ration and Development Corporation and another
seven firms have banded together to try to take
over one of the mothballed projects.
However, the Canadian government still
regards 18 LNG schemes as being live, includ-
ing 13 in British Columbia, three in Nova Scotia
and two in Quebec, with combined production
capacity of 216mn mt/year, equivalent to 28.4bn
ft³/day. Not all will be built, but Canada clearly

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 8

 Canada’s proposed LNG export facilities
Export Licence Cost
Project Export Volume (mn mt/yr | bn ft3/d)
(Years) ($ billion)
Kitimat LNG 20 15 10 | 1.3
LNG Canada 40 25-40 26 | 3.5
Cedar LNG Project 25 6.4 | 0.8
Orca LNG 25 24 | 3.2
New Times Energy 25 12 | 1.6
export terminals
13 west coast

Kitsault Energy Project 20 20 | 2.7

Stewart LNG Export Project 25 30 | 4
West coast total
186.8 | 26.6
Triton LNG (On Hold) 25 2.3 | 0.3
Woodfibre LNG 25 1.6 2.1 | 0.3
WesPac LNG Marine Terminal 25 3 | 0.6
Discovery LNG 25 20 | 2.6
Canada total
Steelhead LNG: Kwispaa LNG 25 30 30 | 4.3 245.3 | 34
Watson Island 1 | 1.4
Goldboro LNG (Nova Scotia) 20 8.3 10 | 1.4
export terminals
5 east coast

Bear Head LNG (Nova Scotia) 25 2-8 12 | 1.6

East coast total
A C LNG (Nova Scotia) 25 3 15 | 2.1
48.5 | 7.4
Energie Saguenay (Quebec) 25 7 11 | 1.6
Stolt LNGaz (Quebec) 25 0.6 0.5 | 0.7
Source: Natural Resources Canada

Kogas (5%). Baker Hughes will supply four of its

“ The Canadian government regards 18
LNG schemes as being live, including
13 in British Columbia, three in Nova
Scotia and two in Quebec.”
has the potential to become an LNG exporter on
a par with Australia or Qatar.
LNG CANADA
The final investment decision (FID) on the first
phase of the LNG Canada project, which will have
two trains each with capacity of at least 6.5mn
mt/year, was approved in October, while the sec-
ond phase would double production capacity to at
least 26mn mt/year.
The consortium developing the project com-
prises the local subsidiaries of Shell (40%), Malay-
sia’s Petronas (25%), PetroChina (15%), Japan’s
Mitsubishi Corporation (15%) and South Korea’s
LMS100-PB gas turbines and eight centrifugal
compressors to the plant.
In March, LNG Canada CEO Andy Calitz said
that the FID on Phase 2 will be taken before first
production from Phase 1 in 2025. He said that
members of the consortium want “some insight
overall” on the project before sanctioning Phase 2.
With a price tag of $40 billion, the entire
scheme would be the biggest infrastructure proj-
ect by value in Canadian history. The Conference
Board of Canada estimates that the creation of a
30mn mt/year LNG industry in British Columbia
would add $7.4bn a year to GDP, while providing
an average of 65,000 jobs a year. However, that
goal remains at least a decade away.
Calitz said that the FID for LNG Canada was
the result of “years of work with First Nations,
including elected and hereditary chiefs, munici-
pal, provincial and federal governments, northern
communities, and thousands of people working in
industry in BC [British Columbia].”
Opposition from First Nations was one of the
main obstacles to the development of the Pacific
Northwest LNG project.

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 9

 Canadian gas under pressure from US shale (bn ft3)

US imports of Canadian gas US gas exports to Canada

400

350

300

250

200

150

100

50

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: US Energy Information Administration

LNG Canada considered more than 500 loca-
tions for the project, but cited British Columbia’s
large gas reserves and its location on the Pacific
Ocean as key reasons to build its plant at Kitimat
in northern British Columbia.
Kitimat’s location at the head of the Douglas
Channel allows the plant to be built as far inland
as possible to shorten the length of pipeline need-
ed to connect it to the reserves. The project will
have a year-round ice-free port and can make use
of existing infrastructure such as roads, power
lines and the airport in Terrace.
ONGOING OPPOSITION
There have been protests against the develop-
ment of LNG Canada by environmental groups
and also by some First Nations’ representatives
who oppose the construction of pipelines across
their territory, although 25 First Nations’ groups
have already sanctioned development.
The federal regulator is also currently consider-
ing a jurisdictional challenge from a private citizen
who argues that the NEB needs to approve the
construction of the supply pipeline. According to
the federal government, federal approval is only
required for projects that cross provincial boundar-
ies and the Coastal GasLink line will lie entirely on
British Columbian territory.
Ottawa is keen to support the development of
an LNG industry, but emphasizes that all projects
must have the support of the provinces, territo-
ries and First Nations concerned. Most of the
responsibility for sanctioning and monitoring LNG
terminals falls under provincial regulations, but
permits for LNG export are provided by the NEB,
while both federal and provincial environmental
assessments and permits are required.
The pipeline, which will carry gas from the
Montney shale formation, will be built by Tran-
sCanada Corporation, which hopes to sell a stake
in the project. Calitz has said that he does not
see “a single scenario” that would cause pipeline
construction to be halted.
He commented in January: “We recognize it
may not be possible to get unanimous support

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 10

 for a major infrastructure project in BC, but we be-
lieve Canada’s economy cannot prosper without a
growing and healthy resource sector. Projects like
our own provide an opportunity that many First
Nations and northern communities have not had
before and may not see again.”
ASIAN ACCESS
Any plants developed in British Columbia will enjoy
significantly shorter sailing times to Asian cus-
tomers than the lion’s share of planned new US
capacity that will be built on the Gulf coast and will
have to traverse the Panama Canal. Japan, China
and South Korea are the world’s three largest LNG
markets, with China the fastest growing.
However, the length of the pipelines required
in British Columbia means that such projects are
generally expected to have higher capital costs
than US projects.
The government of British Columbia intro-
duced an LNG-specific investment regime in 2015
and new terms of investment for gas projects in
2018, both of which are designed to make LNG
projects more financially attractive. The latter may
have made a difference, as LNG Canada post-
poned an earlier FID in 2016.
However, changes to the investment regime
have not all been positive. The Canada Border
Services Agency imposed import duties on some
fabricated industrial steel components to deter
dumping, which could push up construction costs.
EASTERN CANADA
Some projects in Eastern Canada will be able
to make use of existing pipeline infrastructure,
although the direction of flow will have to be re-
versed. The east coast projects could source gas
from the US and even the Western Canada Sed-
imentary Basin, which is estimated to hold more
than 1,000 trillion ft³ of gas, but this will mean
long pipelines, higher costs and more extensive
permitting. East coast plants will target Atlantic
basin customers, particularly in Europe.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 11
Pieridae Energy Ltd hopes to take the FID on
its $7.5bn project by the middle of this year, once
it has concluded debt and equity financing, plus
agreed an engineering, procurement and con-
struction contract. Goldboro LNG would have pro-
duction capacity of 10mn mt/year and its location
in Nova Scotia gives it shorter transport times to
northwest Europe than any US producer.
Thomas Dawson, senior vice president
for business development at Pieridae, told
Bloomberg: “Having the shortest distance to our
primary market is extremely valuable. After last
winter the system got very stressed and we now
see a lot of interest from different utilities and
companies looking for their slice of LNG to man-
age their supply portfolio.”
German utility Uniper has signed a sale and
purchase agreement to take half of the project’s
capacity for 20 years, while the German govern-
ment last year increased its loan guarantee to the
project from $3bn to $4.5bn. Switzerland’s Axpo
Holding is currently negotiating an LNG sale and
purchase agreement for another 1mn mt/year,
while Pieridae says that it is in talks over long-
term deals for another 2mn mt/year.
LONG-TERM POTENTIAL
It appears after years of delay, Canada will get its
first LNG plants on both the Pacific and Atlantic
coasts. From there, the world is its oyster. The
first plants may prove a vanguard in the future
monetisation of Canada’s vast gas resources,
circumventing the current constraints of the do-
mestic US market and entering into competition
with US LNG producers.
Alternatively, the difficulties in getting these
greenfield projects off the ground may still prove
too much for many investors. At the same time,
it is not impossible that the prospects for gas ex-
ports across Canada’s southern border once again
revive post-2030 as the US shale resource hits its
point of maximum expansion. At least by then,
with some LNG capacity, Canada would have the
choice of markets it so clearly lacks today.
 A P R I L 2 3 , 2 0 1 9 - C A L G A R Y, A L B E R TA

C AN A D A M A T TE R S

BRINGING TOGETHER THE SPECTRUM OF STAKEHOLDERS

IN CANADA’S NATURAL GAS COMMUNITY

Andy Calitz CEO, LNG Canada

LUNCHEON
Moving toward the realization of the largest private investment in Canadian economic
KEYNOTE
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SPEAKER: Dialogue Panel. Andy Calitz provides us with his perspectives.

OTHER CONFIRMED SPEAKERS:

Crystal Smith David Keane Joseph (Joe) B’Oris Rowland Harrison

Chief Councillor Chief Executive Officer Chief Development Officer Former NEB Member, Editor
Haisla Nation Woodfibre LNG Bear Head LNG Energy Regulation Quarterly

Akos Losz Richard Laszlo Michael Eddy Jay White

Columbia University President Head of Indigenous Relations VP Commercial
Center on Global Energy Policy Laszlo Energy Services LNG Canada TransCanada

Dave Nikolejsin
Martha Hall FIndlay Keith Schilling Moin Yahya Deputy Minister
President and CEO President Vice Dean / Professor of Law BC Energy, Mines and
Canada West Foundation BHGE Canada University of Alberta Petroleum Resources

Paul Cheliak Tim McMillan Cody Battershill Brent Graham

VP Public and Regulatory Affairs President & CEO Founder Manager, Public Policy
Canadian Gas Association CAPP Canadaaction.ca Fortis BC

Sander Duncanson
Dinara Millington Chris Bloomer Environmental, Regulatory
Vice President, Research President & CEO and Aboriginal law
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 SOUTH ASIA’S
SHIFTING NGV
OPPORTUNITIES
Martin Daniel
High oil prices and environmental
concerns have reawakened South Asian
interest in natural gas vehicles (NGVs).
Pakistan’s political changes make its
future direction hard to call, Bangladesh
faces gloomy sales, but India looks set to
storm ahead. However, market direction
is currently reliant on political decisions
rather than price signals. Energy market
liberalisation backed by LNG imports
could completely change the picture.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 13
N
GVs were promoted in Pakistan from the
1990s to replace imported gasoline and
diesel with indigenous gas for security of
supply and balance of payments reasons. Based
on the cost advantage of CNG, tax breaks and oth-
er incentives, NGV numbers soared from 120,000
in 2000 to 3.1 million in 2011, when Pakistan host-
ed the second-largest number of NGVs globally.
CNG use reached 0.325bn ft3/d in the financial
year ending June 2012. But problems had already
emerged in the 2000s when domestic gas pro-
duction began to falter. By the 2010s, CNG faced
intense competition for gas from generators,
industrials and residential users.
Constrained gas supplies were compounded
by safety concerns, with the government attempt-
ing to stop new conversions, ration CNG and
close refuelling stations. By FY2015-16 CNG use
had fallen to 0.176bn ft3/d.
Even so, industry group NGV Global estimates
Pakistan had 3 million NGVs in 2017, much the
same as in 2011. By January 2019, the figure was
PHOTO: WIKIPEDIA
3.7 million, according to the All Pakistan CNG
Association (APCNGA).
That jump followed a government rethink
favouring NGVs as oil prices rose and pollution
worsened. It also came in anticipation of a gas
import bonanza.
Natural gas vehicles in South Asia (no. of vehicles)
Country 1996 2000 2004 2008 2012 2016 2017 % of all vehicles

India 2,500 10,000 204,000 650,000 1,250,000 1,800,000 3,045,268 1.91%

Pakistan 0 120,000 550,000 2,000,000 2,900,000 3,000,000 3,000,000 33.04%

Bangladesh 65 1,000 31,650 150,253 210,000 220,000 220,000 10.53%

Afghanistan 0 0 0 0 0 1,701 1,701 0.26%

Source: NGV Global

LNG imports began in 2015 through Elengy’s

0.6bn ft3/d floating storage and regasification unit
NGV fuelling stations in South Asia (FSRU) at Port Qasim. The 0.75bn ft3/d Pakistan

and other main Asian countries GasPort Terminal subsequently entered operation,
with more LNG projects planned.
China Bangladesh Uzbekistan Indonesia Piped Turkmen and Iranian imports of 1.325bn
Pakistan Thailand South Korea Tajikistan ft3/d and 0.75bn ft3/d, respectively, are also
India Japan Malaysia Afghanistan planned, although these are both long-term
pipeline projects that will take years to build, if
16,000 they are completed at all. The prospect of pipeline
imports from Iran, in particular, is unlikely to
progress while US sanctions on the country are
14,000 in place.

12,000
“ NRI projects there could
be 10 million more
10,000
NGVs by 2025 in India,
if CNG stations increase
8,000 by 5,000, with NGVs
potentially accounting
6,000 for half Indian vehicle
sales by 2030.”

4,000

WINTER SETBACK

2,000 However, CNG use suffered a setback in late

2018. Gas supply problems led to the pro-
longed closure of many CNG stations as other
0 consumers were given priority. The problems
2000 2008 2012 2016 2017 were caused by strong gas demand growth
Source: NGV Global combined with low supplies resulting from

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 14

CNG use in Pakistan (mn ft3/d)
2011-12 325
The latter projection may be on the low side.
2012-13 274 In March 2019, APCNGA said gas supplies allocat-
ed to CNG should rise immediately from 0.22bn
2013-14 240 ft3/d to 0.5bn ft3/d to satisfy suppressed demand
and reduce the oil import bill by $670mn/yr.
2014-15 184
But there is supply-constrained demand in
2015-16 176 other sectors too. With strong competition for
supplies, falling output and uncertainty over the
2016-17 184 timing and stability of piped imports, increased
transport gas use will require a greater share of a
2019* 220 greater volume of LNG imports.
Source: Oil and Gas Regulatory Authority 2011-2017, APCNGA 2019 APCNGA has said this could be achieved by
letting private importers use spare capacity at
LNG terminals, operating on a tolling basis.
The government says it is open to this,

Projected gas demand by sector although its feasibility is subject to conditions in-
cluding the harmonisation of tax on LNG imported
in Pakistan (mn ft3/d) 2016-17 2029-30 by state and private enterprises. Bottlenecks in
the distribution network must also be resolved,
while private importers serving the transport
1,014
Residential sector would have to compete with those serving
1,791
other consumers.
112 The future direction of Pakistan’s LNG sector
Commercial
146 is itself uncertain under Prime Minister Imran
621 Khan’s administration.
Industr y Total 2016-17 Threats in late 2018 to renegotiate LNG
881
6,436 contracts and Khan’s visit to Qatar in early 2019
Fer tiliser
824 to seek price and payment changes with its
822 Total 2029-30 main LNG supplier mean an LNG market that
8,119 grew 45% year on year in 2018 is being closely
Cement
203
203 watched by international investors.
What they see will determine the prospects
Captive Power
343 for both LNG imports and NGVs. In a scenario
535 of unconstrained imports, and with a supportive
2,136 regulatory environment, CNG use should rise
Power
2,496 strongly, leading to further growth in NGV num-
bers. Costs and levels of consumer acceptance
Transpor t
470 are positive. It would also have a beneficial impact
643 on the country’s balance of payments.
713 However, in a scenario of constrained supply,
Own use, etc
595 CNG use has typically found itself low down the
list of government priorities when it comes to
Source: Oil and Gas Regulatory Authority’s Petroleum Review, Appendices 1 and 2
allocating scarce gas supplies.

declining domestic production and constrained BANGLADESH

LNG imports.
The Oil and Gas Regulatory Authority (Ogra)
projects domestic gas output will fall from 3.69bn
ft3/d in FY2016-17 to 1.41bn ft3/d in FY2029-30, so
the onus will fall on imports to meet gas demand
projected in the latter year at 8.12bn ft3/d, of
which 0.643bn ft3/d is expected to be for transport
sector use.
Bangladesh’s NGV market faces similar problems
to Pakistan. Faltering domestic gas output and bur-
geoning demand has resulted in increasing competi-
tion for the fuel from other, more influential sectors.
Although it grew rapidly in the 2000s, Ban-
gladesh’s NGV fleet stalled in the mid-2010s at
220,000. By June 2018, it had increased to

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 15

Projected Bangladeshi gas use
by sector (bn ft3)
269,500, according to Rupantarita Prakritik Gas,
Power Captive power Fertiliser Commercial, Agricultural a subsidiary of state energy company Petrobang-
Industry Residential CNG
la. Meanwhile, the number of CNG stations has
expanded to 599.
1,600
However, prospects for further growth appear
limited. Although CNG producers pay more for
1,400
gas, industrials and generators have priority for
supplies that will come increasingly from three
1,200 operational or firmly-planned LNG terminals.
The problem was highlighted in late 2018
1,000 when a reduction in gas supplies was borne by
CNG stations, rather than other users.
800 CNG accounted for 46.9bn ft3, or 4.8% of total
gas use in the financial year ending June 2017. But
600 Petrobangla’s latest annual report forecasts a fall in
CNG use to 34bn ft3 in FY2021-22, when it is ex-
400 pected to account for only 2.2% of gas consump-
tion. As in Pakistan, latent demand is expected to
200 go unmet as a result of competition from other
sectors, a situation which a more open import and
0 distribution environment would resolve.
2017-18 2018-19 2019-20 2020-21 2021-22

Source: Petrobangla Annual Report 2017

“ South Asia will be a

substantial growth
Indian gas use by main market sectors (bn ft3) market for LNG
Power Captive power Fertiliser Commercial, Agricultural
Industry Residential CNG
regardless of which
sectors take the fuel.”
1,600

1,400
INDIA

1,200
Indian NGV development was limited in the 1990s
and 2000s, given the size and potential of the
1,000 market. CNG was not a priority market for limited
Indian gas supplies.
However, environmental concerns became
800
increasingly important in the 2010s. The rising
oil import bill and bullish forecasts of higher gas
600 output in the 2020s added to the momentum.
The NGV fleet jumped from 1.25 million in 2012 to
400 3.045 million in 2017, and was officially estimated
at 3.3 million in early 2019.
The potential for further growth is consider-
200
able. NGVs represent less than 2% of the vehicle
fleet, which Japan’s Nomura Research Institute
0 (NRI) projects will grow by 8%/yr to 2030.
2017-18 2018-19 2019-20 2020-21 2021-22
The main constraint to date has been refuel-
Source: India Petroleum & Natural Gas Statistics, 2017-18 (MPNG) ling capacity. CNG stations were added more

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 16

Indian gas supply (bn m3)
Domestic production
65.46
LNG imports Total Gas Supply
slowly than NGVs in the mid-2010s, rising from
724 in 2012 to 1,233 in 2017.

This reflects the patchy coverage of gas distri-

bution networks. More than 80% of CNG stations

59.65
58.58

are in Delhi, Maharashtra and Gujarat, according

17.9

57.2
54.15
to Petroleum and Natural Gas Minister Dharmen-
53.11

52.76
dra Pradhan.

27
17.9

25.3
That is set to change following two tenders

21.9
to develop distribution networks. On completion
17.7

19.1
of the projects 70% of India’s population and
47.56

53% of its area -- 402 districts in 27 states and

territories – should have access to gas. The pol-
40.68

icy is integral to the government’s goal of more

than doubling gas’ share of primary energy to
35.41

33.66

15% by 2030.

32.65
32.25

31.9
In July 2018, the Petroleum and Natural Gas
Regulatory Board awarded 86 areas covering 174
districts in 22 states. In March 2019, it awarded
concessions for a further 50 areas covering 124
districts in 14 states. Existing networks cover 240
million people in 91 areas.
NRI projects there could be 10 million more
NGVs by 2025 in India, if CNG stations increase
by 5,000, with NGVs potentially accounting for
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 half Indian vehicle sales by 2030. Pradhan has
Source: India Petroleum & Natural Gas Statistics, 2017-18 (MPNG) said CNG station numbers will increase to 10,000
by the late 2020s. This implies 23 million or more
NGVs could operate by 2030.

Indian CNG activities by state, March 2018

Delhi Delhi
444 1,027,307
(31.2%) (33.2%)

Others
Guajarat Others
Guajarat 37
(2.6%) 100,129
457 CNG stations 906,133 Vehicles
(29.3%) (3.2%)
(32.1%) 1,424 Haryana 3,090,139
Haryana
73
125,227
(5.1%)
(4.1%)
Uttar Pradesh
Uttar Pradesh
Maharashtra 138
Maharashtra 137,079
(9.7%)
275 (4.4%)
794,264
(19.3%)
(25.7%)

Source: India Petroleum & Natural Gas Statistics, 2017-18 (MPNG)

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 17

Indian CNG sales (mn mt)
2.638
2.365
2.153
2.037
1.928
1.818
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Source: India Petroleum & Natural Gas Statistics, 2017-18 (MPNG)
Where infrastructure exists, NGV penetration
is high. For example, in Delhi a third of vehicles
(just over one million) are NGVs, while nearly a
third of refuelling stations are CNG, according to
NGV Global.
GROWING INTEREST
There is no lack of consumer interest in NGVs
given their cost advantage. In March 2019, the
Indian government said CNG was 60% and 45%
cheaper than gasoline and diesel, respectively.
The overall cost of CNG vehicles is about 20%
lower than either.
Vehicle manufacturers are enthusiastic, given
the stringent environmental standards squeez-
ing the market for diesel vehicles. India’s largest
car maker Maruti Suzuki produced 74,000 CNG
vehicles in 2017 and plans to sell 200,000 in 2022.
Other car makers are exploring the market, with
Volkswagen expressing interest in January 2019.
Apart from CNG-based NGVs, there is also
interest in LNG as an alternative to diesel-fuelled
heavy commercial vehicles. For example, Petronet
LNG plans to install 20 LNG stations on a 4,000
kilometre route from Delhi to Thiruvananthapuram.
An uptick in NGV activity is already occurring.
Pradhan said in February that the number of CNG
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 18
stations now exceeds 1,500, while Maruti Suzuki’s
CNG vehicle sales rose 50% year on year in the
first half of the financial year ending March 2019.
But building the new gas distribution networks
will take time. The concessions allow eight years
to complete them and associated CNG stations.
Securing sufficient gas supplies may also
prove difficult, given India’s past difficulties in
meeting output targets. Domestic gas production
fell from 1,679bn ft3 in FY2011-12 to 1,153bn ft3 in
FY2017-18. The latest figures show production for
the ten months to January 2019 up 0.4% year on
year, but 7.4% below target.
City gas use did increase by over 50% be-
tween FY2011-12 and FY 2017-18, while 14% of
gas is earmarked for distribution networks – of
which about three-quarters goes to CNG. But
there are competing demands from other users.
Nor are NGVs necessarily regarded as a long-
term option. Some players, including officials at
Maruti Suzuki, see electric vehicles (EVs) as the
real prize with NGVs an interim measure. If the
roll out of India’s distribution networks is too slow,
domestic gas output struggles, and EVs achieve
early take off, NGVs could thus miss out as coal
by wire is supplanted by coal by tyre.
MARKET POTENTIAL
The scale of South Asian energy demand, along-
side the environmental and diversification imper-
atives to use gas, and underlying gas production
issues, mean South Asia will be a substantial
growth market for LNG regardless of which sec-
tors take the fuel.
The NGV share will to a great extent depend
on how fast national gas distribution grids are
rolled out. In the absence of realistic price signals,
it will also depend on political decisions regarding
gas allocations as demand in other sectors is
pushed artificially higher by subsidies.
But as (or perhaps if) national markets and
prices are liberalised, CNG will be better placed
to prosper than more subsidised sectors such as
fertiliser production. At that stage CNG and wider
transport sector gas use could grow more rapidly
than suggested here – assuming EVs have not
overtaken them.
CNG’s cost advantage versus gasoline and
diesel make it resilient to competition from EVs. In
addition, the domination of India’s power sector by
coal-fired generation brings into question the envi-
ronmental gains of electric mobility versus CNG.
LNG Canada:
Putting Canada on
the global map of LNG
exporting countries
LNG Canada will deliver among the lowest
carbon-intensive LNG in the world, helping to address
global climate change. Our Project showcases how
industrial development can co-exist with environmental
stewardship and gain unprecedented support from
indigenous peoples and local communities.
SMALL-SCALE
LNG OPENS UP
MARKETS
Ross McCracken
Small-scale LNG describes a range of
activities, all of which have one thing
in common – they extend the reach of
LNG into new markets. The competition
is generally oil products, which LNG is
well placed to beat, both on price and
in terms of its near absence of sulphur
and relatively low CO2 emissions. Capital
costs are comparatively low and small-
scale LNG can piggy-back off existing
large-scale infrastructure to reach
otherwise inaccessible markets.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 20
S
mall-scale LNG on the supply side refers
to liquefaction plants with capacity of
less than 500,000 metric tons a year,
while on the demand side it is effectively the
breaking down of LNG into ever smaller parcels to
reach a much wider range of direct-use applica-
tions. The three main areas are shipping, road
transport and power generation, the latter usually
in remote or island settings.
According to a forecast made by Engie in 2017,
small-scale LNG demand will rise to between 75
to 95 million mt/yr by 2030, of which power will
account for 26%, marine LNG 32% and truck-
ing 42%. At this level, even as the LNG market
doubles in size, it will be an important component
of overall LNG demand. A more recent forecast by
consultants Wood Mackenzie put current small-
scale LNG at 25mn mt, rising to 30mn mt/yr in
2020, and 80mn mt/yr in 2030. The market split is
IMAGE: KTOO.ORG
about 66% trucking, 25% power generation and
9% power generation, according to WoodMac.
The trucking component may in fact be
substantially higher, owing to the rapid growth in
use of LNG fuelled trucks in China, the number
of which WoodMac cites as 220,000. Other

“ Small-scale LNG is taking on fuels
with established supply chains in
which huge amounts of capital have
been invested over many decades.”
estimates suggest 300,000, but even this number
appears a bit stale. According to Chinese media,
production of large LNG trucks in 2017 reached
96,000, up from 19,600 in 2016. The Chinese
LNG-fuelled trucking fleet may now be edging
close to or over 500,000.
Whether the higher or lower ends of the mar-
ket forecasts are realised depends a lot on price
because in all three of the major small-scale LNG
market segments the competition is oil products,
generally diesel for road transport, diesel or low
sulphur fuel oil in power generation and fuel oil or
marine diesel in shipping.
Market conditions are pushing the price of
spot LNG to low levels, while Opec has reduced
oil output, the net effect being to widen the oil/
LNG spread to LNG’s advantage, for now at least.
REGULATORY IMPETUS
Uptake also depends heavily on regulation with
limitations on sulphur and CO2 emissions pushing
users towards cleaner fuels on both land and sea.
Regulations specifically targeting sulphur and CO2
will benefit LNG.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 21
In addition to its global 0.5% cap on sulphur in
bunker fuel from January 2020, the International
Maritime Organisation last year launched a study
into the possible designation of the Mediterra-
nean as an Emission Control Area (ECA), which
would herald a sulphur cap of 0.1%.
The study’s completion is expected this
spring. In October, France came out in support of
the proposal. There are four ECAs worldwide: the
Baltic Sea, the North Sea, the North America ECA
and the US Caribbean Sea ECA.
Back on land, in May last year, the Eu-
ropean Commission presented a legislative
proposal setting the first ever CO2 standards
for heavy-duty vehicles in the EU. In February,
a deal was reached between the EU Council,
which represents member state governments,
and the EU parliament, for new rules designed
to reduce trucks’ CO2 emissions by 15% on
average compared with 2019 between 2025 and
2029. The proposals still have to be endorsed by
member states. Given the weight, power and
range challenges presented by the electrifica-
tion of heavy-duty vehicles, uptake of LNG as a
truck fuel is expected to increase to meet the
new rules.
IMAGE: LNG TRADING ASIA
A study by Imperial College’s Sustainable
Gas Institute in January found that LNG use
in trucks could reduce total greenhouse gas
emissions by a seventh against the lowest es-
timates for diesel truck emissions. However, it
also warned that some LNG engines could emit
more greenhouse gases than diesel, depending
on supply chain characteristics, engine type
and use.
 INFRASTRUCTURE CHALLENGE

The small-scale LNG Journey LNG has competed well historically against oil prod-
ucts on price and appears for now to be on the right
side of history when it comes to ever tightening en-
vironmental regulations, but small-scale LNG faces
a huge challenge when it comes to infrastructure.
Small-scale LNG is taking on fuels with estab-
lished supply chains in which huge amounts of
capital have been invested over many decades.
Gas Reserves Gas Treatment An average Asian, European or US town will boast
multiple service stations selling gasoline and
diesel, but to offer LNG remains a rarity.
It is the old ‘chicken and egg’ problem. Truck
and or shipping companies are loath to invest in
ships and trucks fuelled by LNG until there is cer-
Small-scale tainty that they can be serviced; LNG retailers are
LNG Plant reluctant to invest in the infrastructure unless they
can be sure paying customers will turn up.
Nonetheless, where there is a will there is
a way, and China once again grabs the spotlight
through the expansion of its ability to transport
LNG by truck, allowing LNG access to small
consumers in the vast areas not covered by the
nation’s gas pipeline network.
Delivery of this gas is a key component of
China’s ‘2+26 cities’ programme, designed to
shunt consumers from coal to gas use. According
to WoodMac, an extraordinary 19mn mt of LNG
were transported by truck in China in 2017, with
capacity expected to rise to 38mn mt/yr by 2025.

PIGGY BACKING
LNG Transport
This is where small-scale LNG demand can piggy
back of those big, lumpy import terminal invest-
ments. The ability to transport LNG by truck, to
provide fuel to ships or break LNG down into ISO
containers for transhipment means import termi-
nal throughput can exceed regasification capacity.
Truck loading and bunkering facilities are thus
Fueling vehicles potentially valuable bolt-ons for an existing LNG
terminal and their development is spreading.
Pavilion Energy said February 25 that had
chartered its first LNG bunker vessel to be used at
the Port of Singapore. Also in February, Singapore
LNG Corporation completed modifications to the
secondary jetty of its LNG receiving terminal on
Industrial users Residential users Jurong Island, allowing it to receive and load small
LNG ships of between 2000 m3 and 10 m3 capacity.
“We believe that there is good potential for
the small-scale LNG market to flourish in this part
of the world, and the timely completion of the
Source: GEA Group

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 22

 SSLNG Facility is an important step forward in
SLNG’s efforts to support this growth,” said inter-
im CEO Sandeep Mahawar.
Japan’s Mitsui OSK Lines (MOL) announced
in late January that its LNG-fuelled tugboat Ishin
bunkered LNG fuel at Sakai Senboku port, the
first bunkering of LNG as a vessel fuel at any port
in Japan’s Kansai region. The LNG was supplied by
Osaka Gas using a truck-to-ship procedure.
Other ports are picking up on the opportuni-
ties. In Zeebrugge, Belgium, the LNG bunkering
vessel Engie Zeebrugge has been operating since
2017, while the world’s largest bunker supply ves-
sel Kairos is operating at Klaipeda port in Lithuania.
In December 2017, Klaipeda LNG also completed a
small-scale onshore LNG reloading station, which
is serviced by LNG trucks taking LNG to consum-
ers in Estonia, Poland and Lithuania.
A string of relatively small-scale LNG bunker-
ing facilities has sprung up in the Nordic coun-
tries, a development heavily influenced by the
Baltic and North Seas ECAs, such as Pori and Tor-
nio Manga in Finland, Oera in Norway and ports in
Sweden based on the supply of LNG to ships and
industry located on the coast and inland.
“ The LNG ISO tank container market
is expected to rise in value at a CAGR
of 8.2% to 2025”
INTERMODAL CONTAINERISATION
In another example of small-scale LNG’s ability to
reach formerly inaccessible markets, the Portu-
guese island of Madeira has imported more than
100,000 tons of LNG since 2014, owing to a small-
scale supply chain developed by logistics company
Grupo Sousa. LNG is transported in standardised
ISO container from Sines, home to a full-scale
LNG import terminal on the mainland, to Madeira.  which now makes it possible for small-scale US
The containers are cryogenic IMO Type-C pres-
sure vessels fitted within an ISO standard-size
frame, which can be easily transferred from and
to ship, road or rail transport, while also acting
as storage capacity. Sousa uses 55 40 ft ISO
containers, which make up its ‘virtual pipeline’, but
the containers come in 30 ft and 20 ft sizes for
smaller applications.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 23
Sousa’s tanks are trucked from the Sines LNG
import terminal outside Lisbon to a ferry port the
opposite side of Portugal’s capital from where
they are shipped 550 miles by sea to Madeira.
The 2019-2025 Global LNG ISO Tank Container
Market Report, published in February, valued the
LNG ISO tank container market in 2018 at $92mn.
The report forecasts that the market’s value will
rise to $160mn by 2025, a compound average
growth rate of 8.2%.
Development of the virtual LNG pipeline also
allowed Madeira to offer LNG bunkering. Sou-
sa and Portugal’s Galp conducted the first LNG
bunkering operation on Portuguese territory in
November 2017 when they delivered LNG to the
cruise ship AIDAPrima.
INTERMODAL TRANSPORTATION
Madeira’s virtual pipeline is an example of inter-
modal container trade, which is particularly well
suited to islands and archipelagos, allowing a
large LNG import terminal to serve a wide geo-
graphic area in which demand is too dispersed
to warrant more import terminals or the costly
subsea construction of electricity cables or gas
pipelines.
In the Caribbean and Central America, many
islands and countries are dependent on oil-fired
power generation, with oil products transported
by ship, resulting in high electricity prices. There
is little or no chance of being reached by a gas
grid, while many governments lack the capital
to extend the electricity network. In addition to
renewables, small-scale containerised LNG offers
a real solution.
The fact that the US to the north is over-
flowing with shale gas, is in the midst of a huge
expansion of its Gulf Coast liquefaction capacity
and is hungry for new markets only reinforces the
opportunity. Containerised LNG is already making
it to Bermuda, Puerto Rico and Barbados. LNG’s
prospects in the Caribbean were also boosted last
year by an important regulatory change in the US,
LNG exporters to export up to 51.75bn ft3/yr to
countries with which the US does not have a free
trade agreement.
Madeira’s virtual pipeline, combined with stan-
dardised intermodal transportation, may prove a
blueprint for gas systems that extend hundreds of
miles beyond both LNG import terminals and the
end of the conventional pipeline system.
COUNTRY FOCUS:
PHILIPPINES:
MAJOR POTENTIAL
FOR SMALL-SCALE LNG
The Philippines is on the way to
becoming a consumer of LNG for the first
time. Manila-listed Phoenix Petroleum in
March received shareholders’ approval for
its LNG joint venture with China’s Cnooc.
The joint venture, Tanglawan Philippine
LNG, plans to start work on a 2.2mn mt/
yr terminal this year, with the start of
commercial operations targeted for 2023.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 24
E
arlier in March, Phoenix and Cnooc
signed a memorandum of understand-
ing with the Philippine National Oil Co
(PNOC) allowing it to be part of the project.
Power sector demand is likely to absorb the
full capacity of the planned new terminal in the
first instance. Tanglawan Philippine LNG aims to
develop a gas-fired power generation facility with
up to 2-GW capacity.
Almost all domestic gas production currently
goes towards power generation. According to
the Philippines Department of Energy, the power
sector accounted for 132bn ft3 (3.7bn m3) of the
country’s 130bn ft3 of gas consumption in 2017,
with industry taking the remainder.
However, the potential to develop wider
LNG use is high. The commercial and residential
sectors use no gas and gas supplies only 0.9% of
industrial energy use.
GAS GRID CONSTRAINTS
The country produces about 3.8bn m³/yr of gas,
most of which comes from the Anglo-Dutch
Regional existing dependable generating capacity (MW)
Coal 5,970
Oil 1,781
Gas 3,286
Wind 337
Solar PV 301
Biomass 84
LUZON Geothermal 805
Hydro 2,464

6,241
Coal 1,043
Oil 484 Transmission
Gas 0 line Length
9,912
Wind 90 (circuit-km)

Solar PV 396 21,180

Biomass 85
Geothermal 865 5,027
VISAYAS Hydro 19
3,621
Coal 1,357
Oil 794 4,178
Gas 0 Substation
Wind 0 Capacity
(MVA)
Solar PV 44
MINDANAO Biomass 40 33,486
Geothermal 100
25,687
Hydro 909
Source: NGCP Transmission Development Plan 2019-2040

Shell-operated Malampaya field, which is only
expected to last until 2024.
While the government is trying to boost
domestic oil and gas exploration, there are issues
over the terms of investment, tax disputes and a
moratorium on drilling in some parts of the South
China Sea, ownership of which is disputed with
China. According to Baker Hughes, there was only
one active land rig in the country in February, and
none working offshore.
Gas-fired generation amounts to 3.286 GW of
combined cycle gas turbine (CCGT) capacity and
is confined to one of the country’s three main
electricity grids, Luzon. The new import terminal,
as envisaged, will not be able to supply sufficient
gas for both the new 2 GW of gas-fired gener-
ation capacity and the existing capacity once
Malampaya depletes.
Under the government’s 2017-2040 clean ener-
gy scenario plan, the role of natural gas in the pri-
mary energy mix rises from 6.1% in 2016 to 12.4%
in 2040. This means an increase from 3.25mn
metric tons of oil equivalent (toe) to 17.1mn toe.
This is the equivalent of 18.9bn m³ a year in 2040.
Domestic gas supply is forecast to rise to 3.9bn
m³, as new fields are developed to compensate for
Malampaya’s decline, which implies LNG imports
of 15bn m³/yr or 11mn mt/yr by 2040.
These plans may change to increase gas’ role
further. The government’s long-term energy plans
are focussed on coal, but the expansion of coal-
fired generation does not appear consistent with
its commitments under the Paris Climate Change
Agreement. Both LNG and increasingly low-cost
renewables offer opportunities to reduce the car-
bon intensity of the country’s development.
COMPETING AGAINST OIL AND
INFRASTRUCTURE
The country’s island geography makes gas
grid extensions difficult, if not cost-prohibitive.

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 25

Philippines energy plan 2017-2040: Energy consumption of
primary energy supply (%) industry by fuel, 2016 (%)
2016 2040

28.7
Oil 34.9

25.9
35.4
Coal 22

19.6
29.6
Natural Gas 6.1

15.6
12.4
3.8
Hydro
2.1
17.9
Geothermal
8.5
14.1

0.9
Biomass

0.2
8.9
0.3

Electricity

Coal

Natural Gas

Petroleum products

Biomass

Biodiesel
Solar/Wind 0.3 Total Energy Total Energy
0.9 2016 2040
Biofuels 1.5 (mn toe) (mn toe)
0 53.2 137.8
Other technologies 1.5

Source: Philippines Department of Energy Source: Philippines Department of Energy

Bringing large-scale LNG to Visayas or Mindanao
would require the construction of complete LNG-
to-power supply chains. Geography also means
linking up island electricity grids with subsea
sections, while the country suffers from typhoons
and storms, which can wreak havoc with electrici-
ty lines on land.
Small-scale LNG has the flexibility to extend
the use of gas around this massive archipelago
and could prove a much cheaper and effective
option than either gas or electricity grid extension.
The country’s electricity grid consists of three
main networks: Luzon, Visayas and Mindanao. The
smallest and least developed of the three, Mind-
anao, relies on oil for 22% of its generation, while
for the country as whole 6% of grid-connected
electricity is generated from oil. Outside of the
three main grids, power is provided primarily by
diesel generators. There is significant potential for
oil-to-LNG switching, if the LNG could be made
available.
An electricity interconnector is planned be-
tween the Mindanao and Visayas grids in 2020,
while there is a 400-MW link existing between
Luzon and Visayas, which is itself made up of a
number of islands connected by 200-MW links.
The country’s electrification rate was 90.7% in
2016, but significantly lower in rural areas, leaving
an estimated 2.1mn households without power,
while some 40mn people rely on traditional bio-
mass for cooking.
The government has not hit its electrification
targets in the past, but hopes to provide basic
electricity supply to all by 2022 under the 2017-
2040 energy plan. Achieving this on a least-cost
basis while at the same time bringing the coun-
try’s coal-focused energy expansion more into
line with its international climate change commit-
ments requires more flexible means of reaching
rural populations. Renewable energy sources
will play a key role and are gaining in prominence
in the government’s plans, but small-scale LNG
could prove a critical enabler.
LNG broken down into ISO containers for
distribution by ship and truck would increase
throughput of the planned import terminal without
requiring an increase in regasification capacity. It
would allow LNG to reach small-scale, dispersed
energy demand throughout the archipelago on a
faster time scale and at lower capital cost than
the construction of electricity lines, providing gas
for power generation and as cooking fuel, which
would also be a lot healthier than biomass.
For project developers Phoenix Petroleum and
Cnooc it is good to think big first, but from then
on, it might pay LNG importers to think small.

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 26

PROJECT SPOTLIGHT:
ARCTIC LNG2
The completion ahead of schedule and
on budget of Yamal LNG’s first trains
in 2018 was a watershed moment for
Russia, marking not just the start-up of
the country’s second LNG plant, but the
first to be built by an independent gas
producer, Novatek.
D
espite a raft of proposed projects, it took
Russia nine years to add to its first LNG
plant, Sakhalin 2, which was completed
in 2009. Yamal LNG’s three 5.5mn mt/yr trains
more than doubled Russia’s LNG capacity to
27.3mn mt/yr, providing it with the ability to reach
gas markets globally, unrestrained by the geo-
graphic (and political) restrictions of its extensive
pipeline network.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 27
Now, backed by the world’s largest proven gas
reserves, which stood at an estimated 35 trillion
m3 at end-2017, four times larger than the US,
Russia aims to go further led by Novatek’s next
large-scale development -- Arctic LNG 2.
GULF OF OB
Yamal LNG opened up a prolific gas basin in the
Gulf of Ob. Arctic LNG 2 aims to build on Yamal’s
success. A final investment decision is expected
this year and the project could be up and run-
ning by the end of 2023. It will consist of three
liquefaction trains each of 6.6mn mt/yr for total
capacity of 19.8mn mt/yr. The possibility of Arctic
LNG 3 is already being discussed.
Arctic LNG 2 lies on the opposite, eastern
side of the Gulf of Ob from Yamal and will source
gas from the onshore Utrenneye field, which is in
Tazovsky District on the Gydan Peninsula in the
Yamal-Nenets autonomous region. Utrenneye at
end-2017 was estimated to hold 1.5 trillion m3
 Northwest Northern
Passage Sea Route

Arctic
Polar Cap

Arctic LNG 2

Utrenneye
Gulf of Ob

of gas and 65mn mt of liquids. In September,

South Tambey Novatek announced further discoveries on the
field estimated at an additional 405bn m3 gas and
Yamal LNG 40mn mt of liquids.
Despite its harsh, icy environment, the Gulf
of Ob offers access to both northern Europe and
Asia. In February, two new Arc7 ice-class carri-
ers made the voyage from South Korea to the
Russian port of Sabetta for the first time in winter
without the aid of ice breakers, taking just two
and a half weeks to complete the journey.
For Arctic LNG 2, Novatek has proposed build-
ing a trans-shipment terminal at Murmansk with
annual capacity of 20mn mt to reduce

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 28

 shipping costs further. The company has also
signed a memorandum of understanding (MoU)
with Japan’s Saibu Gas company for the use of its
Hibiki LNG terminal in Japan.
MOMENTUM GATHERS
A spate of contract signings in recent months indi-
cates that Arctic LNG 2 is well advanced. Novatek
is using many of the partners employed on Yamal
LNG and is keen to increase local content with
the aim of building up Russia’s indigenous LNG
supply chain capabilities. Establishing industry in
remote regions is also part of Moscow’s plans
to arrest population drift to the country’s main
urban centres in the country’s west. The project
has strong state support.
Arctic LNG 2 will comprise three offshore
gravity-based structures, from which LNG can
be loaded on to ships. These will be cheaper
than supporting the plant with piles, the solution
picked for Yamal LNG. Engineering firm Kvaerner
did studies for Novatek into using GBS, but lost
the Feed contract work to Italy’s Saipem.
The structures will be 330 metres long, 152
metres wide and 30 metres in height. Each will
have a liquefaction train, a feed gas compressor
and two boil-off compressors. The project will
have total LNG storage capacity of 687,000 m3.
The gravity-based structures, which will be
towed into place and sunk to act as foundations,
will be built by Saren, a joint venture between
Italy’s Saipem and Russia’s Renaissance Heavy
Industries, a subsidiary of RC Ronesans Insaat Ta-
ahut, a business group headquartered in Ankara.
The $2.5bn deal includes management,
design, supply of materials and equipment, con-
struction at the Novatek-Murmansk plant, as well
as commissioning and preparation for operations,
including towing and installation. Olav Olsen was
subcontracted by Saipem to provide the front-end
engineering and design.
Germany’s Siemens will supply the compres-
sor equipment for the liquefaction trains, with
the compressors for the third train to be built in
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 29
Russia. Gas turbine compressors and generators
will be supplied by Italy’s Nuovo Pignone. Italian
export credit company Sace Simest, part of CDP
group, signed a memorandum of strategic cooper-
ation with Novatek in December, having previ-
ously guaranteed a €400mn ($456mn) to finance
Yamal LNG.
Novatek holds a 60% stake in Arctic LNG 2 di-
rectly, and a further 40% via a fully-owned subsid-
iary, Ekropromstroy. France’s Total has agreed to
take a 10% stake in the project for $2.55bn with
an option to increase this by 5% should Novatek
decide to reduce its 60% holding. Total already
holds a 19% stake in Novatek.
MoUs and strategic cooperation agreements
have also been signed with Singapore’s Pavilion
Energy, Saudi Aramco, Japan’s Marubeni, Chi-
na Development Bank and the China National
Petroleum Corporation (CNPC), as well as South
Korea’s Kogas.
SANCTIONS RISK
However, one cloud hanging over Arctic LNG 2 is
the possibility of tougher US sanctions on the coun-
try and the potential reaction of would-be investors.
A new bill was introduced to the US senate in Feb-
ruary called the Defending American Security from
Kremlin Aggression Act of 2019 (Daska).
Yamal LNG saw investors deterred by US
sanctions, causing Novatek to switch to funding in
euros rather than dollars. Securing Chinese invest-
ment as western investors backed off proved crit-
ical to the project, ownership of which is Novatek
50.1%, Total 20%, CNPC 20% and China’s Silk
Road Fund 9.9%.
There is no certainty that Daska will find suffi-
cient support to pass, a similar, tougher bill having
failed in 2018, nor how it might affect Arctic LNG
2 as it refers to Russian LNG projects outside
Russia. In response to the bill’s introduction in
February, Russian finance minister Anton Siluanov
said Moscow could use public funds to support
Arctic LNG 2, suggesting Russia is determined to
press ahead.
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 NEWS: LNG GLOBAL
GLOBAL BENEFITS POSSIBLE IF
CANADIAN RESOURCES GET TO
MARKET
Canada can achieve significant economic benefits at
home and make substantial contributions to the global
emissions challenge, if it can get its oil and natural gas
resources to world markets, the Canadian Association
of Petroleum Producers (Capp) said in a new study
released March 14.
In the report, entitled Leveraging Opportunities:
Diversifying Canada’s Oil and Natural Gas Markets, Capp
says a lack of pipelines and insufficient infrastructure
are crippling Canada’s ability to compete for global
market share. That inability, the association said – which
represents Canada’s biggest oil and gas producers – is
particularly evident for natural gas and LNG.
“Global markets for liquefied natural gas (LNG) are
expected to expand substantially by the mid-2020s,
yet Canada is not moving quickly enough to capitalise
on this growing demand,” the report says. “In addition,
failure to reach these high-growth markets means we
are missing an opportunity to help reduce net global
greenhouse gas emissions (GHGs). Coal-fired electricity
generation in China, India, Southeast Asia and Europe
could be displaced using Canadian LNG, which has low-
er life-cycle emissions than LNG from other countries.”
Capp says current estimates suggest some 1,500mn
metric tons of CO2 equivalent (mtCO2e) emissions could
be eliminated every year, if new power plants in China,
India and Southeast Asia are fuelled with natural gas
instead of coal. The reductions would depend on about
375mn mt/yr of LNG displacing coal for power genera-
tion.
Canada, because of its “uniquely low” LNG emis-
sions intensity – between 0.035 and 0.13 mt of CO2e/
mt of LNG for electrified LNG facilities – could make
a substantial contribution to those reductions, the
report says, of the order of 100mn mtCO2e/year for
each Canadian LNG facility built. Non-electrified LNG
facilities typically emit between 0.255 and 0.398 mt
CO2e/mt of LNG.
Although more than 20 LNG projects have been pro-
posed for Canada, only six can still be considered to be
progressing actively, although the government numbers
more as still being live.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 32
The most active ones are: LNG Canada’s 14mn mt/
yr terminal at Kitimat, on BC’s northern coast; the joint
Woodside Energy/Chevron Kitimat LNG project, also
near Kitimat; Woodfibre LNG’s 2.1mn mt/yr facility near
Squamish, just north of Vancouver; Energie Saquenay’s
11mn mt/yr proposed facility in Quebec; and two proj-
ects in Nova Scotia – the 8mn mt/yr Bear Head LNG
facility at Point Tupper and Pieridae Energy’s 10mn mt/yr
Goldboro LNG plant.
The global emissions reduction benefits from any
of these plants, Capp says, must be recognised both at
home and internationally, where they can make a signif-
icant contribution to Canada’s commitments under the
Paris Climate Change Agreement.
Article 6 of the Paris Agreement spells out how
countries could share offset credits - Internationally
Transferable Mitigation Outcomes (ITMOs) – with
partnering countries. The terms of ITMO sharing were
debated for more than two weeks at COP 24 in Poland
last year, but participants failed to come to a consensus
on implementing the terms and the matter was put
off until COP 25 later this year in Chile. “It is essential
these rules are in place following COP 25 in 2019,”
Capp’s report says.
Recognising ITMOs would be beneficial for Cana-
da in two ways. Through global offsets, Canada could
achieve its Paris commitments, instead of implement-
ing costly and inefficient measures that focus only on
domestic emissions reductions. In addition, Canada
could grow its domestic natural gas and LNG industries
to help meet global market demand, thereby helping to
reduce global emissions and create economic and other
benefits at home.
“Canada must take a leadership role and finalise
these negotiations so Canadians receive the benefit
we deserve for our contribution to reducing net global
emissions,” Capp concluded.
POLLS SUGGEST POPULAR
SUPPORT
Nearly 80% of Canadians and more than 70% of resi-
dents in British Columbia are in favour of resource de-
velopment projects, according to the results of a survey
released March 12 by Vancouver-based Research Co.
 NE W S: LNG GL OB AL
In the online survey, conducted on behalf of LNG
Canada between February 21 and February 24, 79% of
Canadians and 71% of BC residents expressed support
for resource development projects. And 61% of respon-
dents across Canada agreed that they were “tired of
nothing getting built” in Canada and BC – a response
that swelled to 67% among residents of northern BC.
In BC, 63% of respondents expressed concern that
the provincial economy would suffer if resource proj-
ects couldn’t be built, while 74% of those in northern
BC felt the same way. Nationally, 70% of Canadians
believe the national economy will suffer if resource
projects can’t be built.
AGRI LNG PLAN FOR POST 2024
The Agri consortium planning to develop LNG transit ter-
minals to ship Azeri gas across the Black Sea is aiming
to start developing the project between 2024 and 2026.  PRICES
The Agri project aims to transit Azeri gas by pipeline
to Georgia, where it will be liquefied and transported
across the Black Sea to Romania for regasification and
sale into the Romanian, Hungarian, and possibly other
European markets.
Azerbaijan’s Trend news agency quoted one of the
four partners in the Agri project as saying in March that
project development would start after the completion of
work on developing new gas fields in the Azeri sector of
the Caspian.
The consortium comprises four state companies:
Azerbaijan’s Socar, Georgia’s GOGC, Romania’s Romgaz
and Hungary’s MVM.
Socar has undertaken to expand the existing Azer-
baijan-Georgia gas pipeline, independent of the Agri
project. Agri will involve building an LNG plant at Poti on
the Georgian coast, the purchase of two 140,000 cu m
capacity LNG tankers, as well as a regasification plant at
Midia on the Romanian coast along with 160,000 cu m³
of LNG storage tanks.  Sims said producers must accelerate investment
From Midia, the project will involve the construction
of 920km of new line linking to the Hungarian transit
grid at Varosfold via the Romanian cities of Bucharest
and Arad. Project spokesman Mitica Savu said that a fea-
sibility study for the project has been finalised, but that
as yet no decision has yet been taken on the next step.
“Discussions are continuing,” he said.  significant headwinds owing to a gas supply shortage.
The announcement of a projected timeline for the
project comes as upstream operators in the Azeri Cas-
pian are stepping up work on developing new resources.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 33
BP’s regional president for Azerbaijan, Georgia and
Turkey Gary Jones said earlier in March that BP would
drill six wells under four exploration contracts in the
Azeri sector of the Caspian over the coming two years,
as well as expanding oil and gas production at existing
production sites.
If it goes ahead the Agri project could also be used
to supply LNG to other LNG import terminals. How-
ever, these would likely have to be confined to within
the Black Sea as Turkey has long refused to permit the
passage of LNG carriers through the Bosphorus, citing
the danger to the city of Istanbul which straddles the
southern end of the straits.
OZ WATCHDOG CALLS FOR
LOWER EAST COAST GAS
High gas prices in the Australian east coast markets
pose threat to manufacturers and can force them to
relocate or shut down, Australian Competition and
Consumer Commission (ACCC) chair Rod Sims said in a
speech to the Australian Domestic Gas Outlook confer-
ence in Sydney in March.
“Gas suppliers would be well advised to consider
what they can do to provide immediate price relief to
the manufacturing sector,” Sims told the conference.
“We must all remember that, when the LNG projects
in Queensland were being commissioned, the suppliers
promised that this crisis wouldn’t happen.”
The three LNG exports projects – ConocoPhillips-Or-
igin Energy Australia Pacific LNG (APLNG), Shell’s
Queensland Curtis LNG and the Santos-led Gladstone
LNG – on Australia’s east coast are all in Queensland. All
three rely on coalbed methane (CBM) from the Bowen
and Surat Basins. 
in gas exploration and development, and governments
must, in turn, allow access to gas resources and encour-
age development of gas infrastructure.
A lack of gas is also having an impact on the east coast
export projects. A recent report by consultancy Energy-
Quest said that Australia’s east coast LNG projects face
 
“To avert the current crisis, these actions were
required a number of years ago,” Sims said. “What is
puzzling is why we are not seeing more investment in
 NE W S: LNG GL OB AL
new gas supplies now.” The watchdog would be closely
monitoring decisions made by gas producers to develop
their reserves and resources, he said.  solve the problem.
Government must also actively monitor gas produc-
ers’ compliance with their licence requirements, Sims
said, and ensure large gas producers do not withhold
gas from development and production to suit their own
commercial priorities.
The ACCC’s gas inquiry, which commenced in April
2017, highlighted that in the first half of 2017 domes-
tic gas users were paying more for gas produced in
Australia than overseas buyers. Gas prices reduced and
stabilised after an initial agreement between the federal
government and gas producers in late 2017. However,
current wholesale gas prices remain two to three times
higher than historical prices, he said.
During the course of its gas inquiry, the ACCC had
worked to promote transparency, monitor progress of
reforms and report on the operation of the gas market.
“Market participants in the east coast have less access
to information on key demand and supply fundamentals
than their counterparts in New Zealand, the US and the
European Union,” Sims said.
Addressing the same event, former Australian
energy minister Martin Ferguson said that the exports
from Queensland were not the real problem: what was
needed was more supplies in states that have applied
moratoria on production, he said, rather than LNG
import terminals, which would raise prices, not dampen
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 34
them. Gas in the east was becoming more, not less
expensive to produce and shipping it south would not
The switch in supply from south to north to increas-
ingly north to south adds costs. The Australian Competi-
tion and Consumer Commission estimates that shipping
Queensland gas to Melbourne adds $2 to $4/Gj, he said.
“New South Wales and Victoria have chosen to
abdicate their responsibilities – they offer no solution to
the mounting pressures on customers in their states.
Both governments prefer to out-source their states’ gas
needs to other states,” he said.
The local reservation plan to ensure gas demands
at home took priority is also dangerous, he said. “The
Australian Domestic Gas Security Mechanism (AGDSM)
was introduced as a short-term measure with a sunset
clause of 2023. The threat of restricting LNG exports
was intended to force LNG projects to divert more
gas into the east coast market. But it did not stimulate
production in the southern markets where the risk of a
shortfall lies.”
“Unfortunately, the federal opposition has doubled
down on export controls, announcing that it intends to
make the ADGSM permanent and to effectively use
export controls to set price caps in the market. This is a
dangerous path for a country which relies on continuing
international investment to develop its resources – it
would be especially dangerous if it led to contracts
being overturned, he said”
 NEWS: LNG SUPPLY
INDONESIA’S BONTANG LNG TO
GET ADDITIONAL GAS SUPPLY
Italian producer Eni has awarded TechnipFMC a “large”
integrated engineering, procurement, construction,
transportation and installation contract for the Merakes
gas project, offshore Balikpapan Indonesia, TechnipFCM
said March 25. The company calls a contract “large”
when its value is between $500mn and $1bn.
The contract covers five deepwater wells, and a 50-
km tie back to the existing Jangkrik floating production
unit in Indonesia. The project scope includes engineer-
ing, procurement, installation and pre-commissioning
of subsea equipment such as subsea trees, a manifold,
large bore deepwater high pressure flexible lines, umbil-
icals and distribution hardware, flexible risers, flowlines
and jumpers.
Last December, Eni got government approval to start
work on the Merakes development project. Gas will be
shipped to the Bontang LNG plant, where LNG produc-
tion has been falling. Indonesia exported 16.23mn mt/yr
of LNG in 2017, down from 18mn mt/yr in 2012. Lique-
faction plant utilisation in the country was 72% in 2017,
according to IGU data.
NIGERIA LNG EYES T7 FID IN Q4
Nigeria LNG CEO Tony Attah said its shareholders would
take a final investment decision on Train 7 in Q4 2019,
following the March 22 signature in Abuja of a $1bn
agreement between NLNG and the Nigerian Content
Development and Monitoring Board (NCDMB). The
planned date is already late: Attah said at the World Gas
Conference in June last year that the company would
take FID in 2018, but first it needed to line up buyers for
term contracts as the spot market was too risky.
The Nigerian Content Plan (NCP) for the Train 7 proj-
ect sets out the work scopes to be executed in-coun-
try, based on the provisions of the Nigerian Content
Act and existing capacities. The document will form the
operating guide for project execution and monitoring.
The NCP ensures as much of the project’s value as
possible stays within Nigeria by giving first consider-
ation to local goods, services and human resources,
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 35
as well as economic opportunities to Nigerian compa-
nies. The NCP stems from the service agreement both
parties signed in May 2017, binding them to timely ap-
provals and compliance with the Nigerian Content Act.
For the Train 7 project, the NCDMB has introduced a
provision that would ensure that a lead engineering,
procurement and construction bidder that has built
capacity in-country is not disadvantaged with regards
to cost.
The overall scope of work on T7 includes in-country
and out-of-country work: design, engineering, procure-
ment, expediting, transport, management, construc-
tion, installation, pre-commissioning and start-up
support and acceptance testing of an expansion to the
existing NLNG facility.
In July 2018, NLNG said it was seeking $6.5bn
financing to build Train 7, as well as a further $5bn for the
expanded upstream gas supply.
State-owned oil and gas company NNPC noted that
the NLNG T7 expansion would be accompanied by a de-
bottlenecking of Trains 1-6 and estimated its 49% share
of the project cost at $4.3bn. NLNG’s other sharehold-
ers are the European majors Shell (25.6%), Total (15%)
and Eni (10.4%)
The Train 7 project is aimed at boosting NLNG’s pro-
duction capacity by 35%, from 22mn metric tons/yr to
30mn mt/yr.
CYCLONE DISRUPTS
WOODSIDE’S WESTERN OZ
OPERATIONS
Australia’s Woodside said March 25 that it is operating
the Karratha gas plant and Pluto LNG plant using essen-
tial staff only due to severe weather conditions associat-
ed with cyclone Veronica.
“Due to the severe weather conditions associated
with the cyclone, Woodside has evacuated all personnel
from our offshore production platforms, and is operating
the Karratha gas plant and Pluto LNG plant using essen-
tial staff only,” Woodside said.
Tropical cyclone Veronica was located approximately
95-km east north east of Karratha early morning March
25, according to Woodside.
 NE W S: LNG SUP P LY
“At this time, the safety and welfare of our peo-
ple, their families and our communities is our highest
priority,” it said. “Once the immediate risks have passed,
Woodside’s focus will remain the ongoing welfare of
our people, their families and our communities, and the
safe return to full operations of our production facilities.
We will also engage with local authorities to understand
what assistance we can provide to the community.”
PAPUA LNG GAS AGREEMENT
SOON: OIL SEARCH
The Papua LNG gas agreement between the govern-
ment and P’nyang (PRL3) joint venture is expected to
be finalised soon, Oil Search managing director Peter
Botten said March 19 at the PNG Petroleum and Energy
Summit in the capital, Port Moresby.
“The Papua LNG gas agreement is on track to be fi-
nalised by late March and signed in early April 2019 with
a gas agreement between the state and P’nyang (PRL3)
joint venture to be finalised soon after,” Botten said.
In 2018, a memorandum of understanding was
signed between Papua LNG and the PNG government,
setting key terms and conditions for a gas agreement.
“Additionally, joint-venture partners are progressing
commercial agreements supporting integration, includ-
ing site and facility access,” he said.
The Papua LNG project will encompass two LNG
trains of 2.7mn mt/yr each and will be developed along-
side the existing PNG LNG project facilities, operated by
US major ExxonMobil.
VENTURE GLOBAL TO DOUBLE
US PROJECT SIZE
Venture Global LNG is to expand the scope of its US ex-
port business to 60mn metric tons/yr based on growing
customer demand, it said March 14. Its two projects so
far are designed to produce 30mn mt/yr in total.
It has accordingly extended its 2016 process equipment
supply agreement with Baker Hughes, a GE company,
to that new figure, whereby BHGE will deliver a modular
solution for Venture Global’s LNG export facilities under the
agreed terms and defined performance guarantees, it said.  1.2mn metric tons/year of LNG.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 36
The agreement provides for the guaranteed supply
of highly efficient and reliable modular liquefaction trains
plus power generation and electrical distribution equip-
ment that will be standardised across the company’s
Calcasieu Pass (10mn mt/yr), Plaquemines LNG (20mn
mt/yr), and expansion projects. 
The company said there was rising demand for low-
cost LNG from its international customers, which had
accounted for all the Calcasieu Pass capacity and most
of Plaquemines LNG capacity.  
The Calcasieu Pass project has received all federal
authorisations and the project’s engineering, procure-
ment and construction contractor, Kiewit, plans to
start site activities imminently. Venture has not yet
announced the final investment decision formally, but
exports are expected to start in 2022. The Plaquemines
LNG project is expected to receive its final authorisation
in August and start building later this year. Again, no
formal decision to proceed has been announced.
Venture Global LNG said March 5 it had received
approval from the US Department of Energy to export
LNG from Calcasieu Pass to non-free trade agreement
countries. Venture Global said the approval now allows
Calcasieu Pass buyers – Anglo-Dutch major Shell, UK
major BP, France’s Edison, Portuguese Galp, Spain’s
Repsol and Poland’s PGNiG – to deliver US natural gas
worldwide.
PETRONAS RELOCATES
FLNG SATU
Malaysian state oil and gas company Petronas March
12 relocated its floating LNG (FLNG) facility, FLNG Satu,
from the Kumang cluster field, offshore Sarawak, to the
Kebabangan (KBB) cluster field, offshore Sabah. 
FLNG Satu will be moored at a water depth of 120
metres in the KBB cluster field, located 90 km north-
west of Kota Kinabalu, Sabah, Petronas said March 13.
Petronas said FLNG Satu’s ability to relocate
strengthens the reliability of the company’s LNG supply
system to meet growing LNG demand. 
“Petronas has delivered 19 successful cargoes since
the commissioning of PFLNG Satu and we are confident
that this success continues in Sabah waters as well,”
Petronas upstream CEO Datuk Mohd Anuar Taib said.
Designed to last up to 20 years without dry-docking,
the 365-metre long FLNG Satu is designed to produce
 NE W S: LNG SUP P LY
YPF SAYS VACA MUERTA
BREAKEVEN UNDER $40/BOE
Argentina’s break-even cost in the Vaca Muerta shale
formation is under $40/barrel of oil equivalent (boe),
compared with around $60/boe a couple of years ago,
while at the company’s most important field, Loma
Campana, it’s under $35/boe, YPF CEO Daniel Gonzalez
said March 12 at IHS Markit’s CeraWeek in Houston.
YPF is Argentina’s state-owned oil and gas company.
“It has been a turn-around year for us as we went
from a shale play with plenty of potential to a reality,”
Gonzalez said. “The unconventionals were the factor
behind allowing us to increase our reserve base by 16%
this year.”
Gonzalez remains optimistic his company can in-
crease gas production further in coming years.
“YPF could boost its shale gas production by 30% in
the next four years, if the company has a market, which
we don’t,” he said. “So, we are seriously considering
some medium-term measures like building a pipeline
and thinking seriously about an LNG facility to really
unlock these huge natural gas reserves we have.”
VEAS OKAYS WARTSILA’S
BIO-LNG PLANT
Norwegian wastewater treatment and biogas producing
company Veas has given Wartsila ‘Notice to Proceed’
with a liquid biogas (bioLNG) plant in Asker, Norway, the
Finnish technology group announced March 13.
The facility, which will comprise a biogas upgrading
and liquefaction plant, will produce vehicle quality bio-
gas. It will be incorporated into an existing Veas biogas
plant, which is the biggest sewage sludge treatment fa-
cility in Norway, serving nearly 750,000 people. BioLNG
production capacity will be 20 metric tons/day.
The scope of supply for the bioLNG plant includes
upgrading of biogas, hot water production, liquefaction,
storage and truck loading capability. Installation is sched-
uled to be completed within 14 months, with commer-
cial operations due to launch in 2020.
Veas awarded the contract for the plant to Wartsila
in April 2018. The ‘Notice to Proceed’ was signed in
December. The project will be the fifth bioLNG plant built
by Wartsila, and its third in Norway.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 37
“Wartsila has the experience and technical know-
how needed to integrate the new bioLNG facility with
our existing plant,” said Veas managing director Ragnhild
Borchgrevink.
ALASKA SEEKS HELP TO
ADVANCE LNG PROJECT
Alaska Gasline Development Corporation (AGDC) said in
March that it has reached out to global majors Exxon-
Mobil and BP for help advancing its $43bn project in the
face of customer and investor indifference.
AGDC’s interim CEO Joe Dubler said the two com-
panies, which each have significant natural gas reserves
on Alaska’s North Slope, will work with AGDC to identify
ways to improve the project’s competitiveness and ad-
vance the regulatory process at the US Federal Energy
Regulatory Commission (Ferc).
“Our respective organisations share an interest in
the successful commercialisation of Alaska’s stranded
North Slope natural gas,” Dubler said. “BP and Exx-
onMobil possess world-class LNG expertise which
may help AGDC responsibly advance this project with
maximum efficiency for the benefit of Alaskans, and I
welcome their collaboration.”
The AGDC statement made no mention of either
BP or ExxonMobil re-investing in the project. They,
along with US major ConocoPhillips, withdrew from the
project in 2016 after a Wood Mackenzie report showed it
ranked poorly amongst other global LNG investments.
On February 28, Ferc announced that a final envi-
ronmental impact statement for the 20mn mt/yr Alaska
LNG project would be delayed until March 2020, from
November 2019, and that final federal approvals would
not be expected until June 2020.
CHENIERE ADVISES
COMPLETION OF FIFTH
LOUISIANA TRAIN
US developer Cheniere Energy said March 8 substantial
completion has been reached on the 4.5mn mt/yr Train
5 at its Sabine Pass LNG terminal in Louisiana and its
 NE W S: LNG SUP P LY
engineering, procurement and construction contractor,
Bechtel Oil, Gas and Chemicals, has given it control of
the unit.
This is the second substantial completion of a lique-
faction train announced by Cheniere in March, following
an earlier announcement related to Train 1 at the Corpus
Christi facility in Texas. All five trains at Sabine Pass have
now been completed ahead of schedule and within
project budgets. Regulatory approvals for a sixth train
have been received and a final investment decision will
depend on marketing success.
Cheniere has sale and purchase agreements with UK
utility Centrica and Total Gas & Power North America for
Train 5 with first delivery due in August 2019.
OZ EAST COAST LNG EXPORTS
UP 5% IN FEBRUARY
The three LNG export projects in the Australian state of
Queensland shipped 1.74mn metric tons of LNG in Feb-
ruary, up over 5% year-on-year, the latest data published
by Gladstone Ports Corporation showed. The three ex-
port projects are ConocoPhillips-Origin Energy Australia
Pacific LNG (APLNG), Shell’s Queensland Curtis LNG
and the Santos-led Gladstone LNG.   served by an existing in-service IEnova gas pipeline and
China was the biggest buyer in February. Asia’s
biggest economy imported 1.24mn mt of LNG, up 28%
compared with February 2018.
South Korea, the second biggest importer, imported
0.29mn mt of LNG, down from 0.36mn mt in the same
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 38
month of the previous year. The third biggest importer of
Queensland LNG in February was Japan, which import-
ed 0.14mn mt of LNG, down 55% year-on-year, the data
showed.
In 2018, Queensland projects shipped a record
20.57mn mt of LNG from the Port of Gladstone, up
1.7% year-on-year.
KBR WINS PRE-FEED
CONTRACT FOR MEXICAN
LNG PROJECT
Mexico Pacific Limited (MPL) has awarded a pre-front
end engineering design (FEED) contract to KBR for a
mid-scale natural gas liquefaction project at Puerto Liber-
tad on Mexico’s Pacific coast, KBR said in late February.
FEED is expected to start in mid-2019.
Under the deal, Houston-based KBR will provide a
pre-FEED and cost estimate for the project using Cono-
coPhillips’ optimised cascade liquefaction technology.
Puerto Libertad is fully controlled by MPL and was
previously permitted for up to 12mn mt/yr of LNG re-
gasification, according to details on MPL’s website. It is
has sufficient excess capacity to support construction of
a liquefaction facility in the range of 2mn mt/yr to 4mn
mt/yr. Existing infrastructure would allow the terminal
to access gas supply from the Permian basin and south
Texas regions as well as from Mexico.
PHOTO: WOODSIDE ENERGY
 NEWS: LNG DEMAND
CHINA’S FEBRUARY LNG
IMPORTS UP 10%
China imported 4.35mn metric tons of LNG in February,
up 9.7% year-on-year, customs department’s data pub-
lished March 23 showed. However, imports were down
sharply month-on-month. In January, China imported a
record 6.58mn mt of LNG, up 27.8% year-on-year.
During the first two months of 2019, total imports
were 10.92mn mt, up 19.7% on the same period last
year. The country imported record volumes of LNG in
2018 as demand for gas remained strong, owing to
households and industries aggressively switching for
coal to gas for heating purposes.
According to customs data released January 23,
Asia’s biggest economy imported 53.78mn mt of LNG
last year, up 41.2% on 2017.
In contrast, pipeline volumes have been growing
more slowly. China’s natural gas imports (pipeline and
LNG) in February stood at 7.57mn metric tons, up 9.1%
year-on-year, according to Chinese customs data pub-
lished March 8. Cumulative imports during the first two
months were 17.35mn mt, up 18.5%, compared with
the first two months of 2017, the customs data showed.
CHINA EXPANDS LNG
TERMINAL CAPACITIES
State-owned PetroChina’s Jiangsu LNG terminal has
received 25mn metric tons of LNG since it became op-
erational in 2011, CNPC, PetroChina’s parent company,
said March 18.
CNPC said that the third phase expansion of the
terminal is underway. Two new 200,000 m3 storage
tanks will be built, along with related infrastructure. At
present the terminal has handling capacity of 6.5mn mt/
year. Once the third phase is complete, the terminal will
have three 160,000 m3 and three 200,000 m3 LNG stor-
age tanks. The total tank capacity will increase from the
current 680,000 m3 to 1.08mn m3. The work is expected
to be complete by 2020, CNPC said.
Meanwhile, Sinopec’s Tianjin LNG has received 15
LNG vessels and unloaded 1.2mn mt of LNG this year.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 39
It has supplied 1.22bn m3 of regasified LNG via pipeline
and dispatched 261,300 tons of LNG via trucks to cus-
tomers downstream, Sinopec said.
The terminal began commercial operations in Febru-
ary last year with a cargo from Australia. Its capacity is
3mn mt/year and can supply 4bn m³/yr gas to down-
stream customers in Beijing, Tianjin, Hebei and Shan-
dong. In 2018, the terminal operated near full capacity. 
Last October, Sinopec received approval from the
Tianjin Development and Reform Commission to build
the second phase of the terminal, which entails five
storage tanks of 220,000 m³ each, as well as gasifica-
tion and external transportation facilities. Construction
was due to start in March and likely to be finished by
December 2021. Late-September, Sinopec completed
the construction of a third storage tank at the Tianjin
terminal, marking the completion of the first phase of
construction.
In addition to its Tianjin terminal, Sinopec operates a
terminal at Beihai and at Qingdao in Shandong province.
Late-October, Sinopec started work on the second
phase of Qingdao import terminal. 
Cnooc Gas and Power, a subsidiary of state-owned
Cnooc, is building additional tanks at Tianjin. It will
build six 220,000 m3 LNG storage tanks, 12 gasifiers,
12 high-pressure pumps and three low-temperature
compressors and ancillary facilities. The project will be
partially operational in 2021 and will be fully ready in
2022. Tianjin terminal is expected to have 7.25mn mt/yr
LNG processing capacity by 2030, up from 3.21mn mt/
yr in 2018.
PAKISTAN CUTS REGASIFIED
LNG PRICES
Pakistan’s Oil and Gas Regulatory Authority (Ogra)
reduced prices for regasified LNG (RLNG) in March, local
media reported.
Ogra fixed the RLNG price for consumers of Sui
Northern Gas Pipelines at $10.3/mn Btu and for consum-
ers of Sui Southern Gas Company at $10.2/mn Btu. In
February, the prices $10.5/mn Btu for Sui Northern and
$10.9/mn Btu for Sui Southern.  
The final price of the RLNG supplied to customers
also includes terminal charges, transmission costs,
 NE W S: LNG DEM AND
port charges and the importers’ margins. Importers are
Pakistan State Oil and Pakistan LNG.
Pakistan started importing LNG in March 2015 with
the commissioning of FSRU Exquisite at Port Qasim
near Karachi. Pakistan commissioned its second FSRU
in late-2017.
CHINA ‘MAJOR BUYER OF LNG
FROM ROVUMA’: BANK
A new study by South Africa’s Standard Bank (SB)
says China will become the major buyer of the output
from Mozambique’s Rovuma LNG project. SB is 20.1%
owned by the Industrial and Commercial Bank of China,
one of South Africa’s leading commercial banks, and has
a growing presence in Africa.
The Rovuma study, by SB oil and gas expert Paul
Eardley-Taylor, says that the development of Rovuma
gas will be the largest project in Africa’s history.
“We envisage Rovuma LNG will take a final invest-
ment decision (FID) in mid-2019 and reach financial close
in 2019,” the report says.  The project will be a two-train,
15.2mn metric tons/yr, $27bn-$32bn project, which
will monetise 2.6bn ft³/day of Mozambique’s offshore
resources and the bank expects the project to operate
for 25 years when complete in the mid-2020s.
SB and Conningarth Economists have written an
independent study of the macroeconomic impact of
the project on the Mozambican economy (2018 GDP
was $14bn) from LNG, domestic gas and condensate
sales. The project includes the world’s first me-
ga-trains outside Qatar, which shows the investors’
confidence that gas flow will be constantly high, as it
is in Qatar.
In 2017, Area 4 owners declared FID on the 3.4mn
mt/yr Coral South floating LNG project, following the dis-
covery of 150-200 trillion ft³ of gas in the wider Rovuma
Basin (across Areas 1 and 4), one of the world’s top ten
largest recoverable gas reserves.
SB says a future debate will be whether the govern-
ment of Mozambique should set up a sovereign wealth
fund to diversify the Mozambican economy. SB says
Mozambique can become to China for LNG, what Aus-
tralia is for its minerals and New Zealand is for its food.  berth to serve bunker vessels and ocean-going ships
SB noted that any delays to exports would have a
major impact upon Mozambique’s economy. It said a
one-year delay in the Rovuma Basin investment pro-
gramme would cost it $1.6bn-$2.2bn in lost GDP.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 40
All the output from Coral South LNG, operated by
Italian Eni, has been sold to BP. The partners in Rovuma
LNG agreed late last year to be responsible for market-
ing their own shares of the gas, which will save time
finding buyers before taking FID, but will weigh heavily
on their balance sheets compared with the conventional
project finance approach. 
Area 4 participants are ExxonMobil, Eni, which will
operate the upstream part; China National Petroleum
Corporation (CNPC); state-owned Empresa Nacional
de Hidrocarbonetos (ENH); South Korea’s Kogas; and
Portugal’s Galp.
WESPAC MIDSTREAM FILES
FOR LNG JETTY PROJECT
Canada’s WesPac Midstream-Vancouver, a subsidiary of
WesPac Midstream, said March 21 it had filed an appli-
cation to British Columbia’s Environmental Assessment
Office for its Tilbury Pacific LNG marine jetty on the
Fraser River in BC’s Lower Mainland region.
The application moves the C$175mn (US$130.5mn)
project into the public consultation phase. Assuming
timely receipt of an environmental assessment certifi-
cate, construction could begin in 4Q 2019.
The jetty, which would be connected to FortisBC’s
nearby Tilbury liquefaction facility, would serve as a
bunkering facility for LNG-powered ships operating out
of Vancouver and as a loading terminal for bulk exports
by FortisBC. The jetty would accommodate LNG carriers
up to 90,000 m3 capacity.
“The world is turning to natural gas as an energy
alternative to coal and oil,” Tilbury Pacific LNG project
manager Peter Gallenberger said. “Exporting LNG
through the Tilbury Pacific jetty will help support the en-
vironmental goals of countries that lack Canada’s wealth
of energy options, while also helping the shipping indus-
try as it shifts from bunker fuel to natural gas.”
WesPac Midstream has been planning the jetty proj-
ect since 2015, and in the last year several changes have
been incorporated to address feedback received from
First Nations, the public and potential customers. These
changes include: a proposal to build a temporary floating
as soon as 2020; construction of a permanent berth to
serve export and bunker vessels by 2022; and reducing
the jetty’s physical footprint to reduce impacts on the
marine environment.
 NE W S: LNG DEM AND
INDIA’S FEBRUARY LNG
IMPORTS DROP 9%
India’s LNG imports in February declined for the second
month in a row, according to data published March 20
by Indian oil ministry’s Petroleum Planning and Analysis
Cell (PPAC).
The south Asian nation imported LNG equivalent
to 1.91bn m3 of pipeline gas (about 1.5mn metric tons
of LNG) in February, down 9.2% year-on-year. In Jan-
uary, India imported 2.13bn m3 of LNG, down 11.6%
year-on-year.
During the first eleven months of the present finan-
cial year that began April 1, 2018, cumulative imports
were 24.76bn m3, up 4.3% compared with the same
period of the previous year. India’s LNG imports last fi-
nancial year were the highest ever at 26.4bn m³, up 7%
from the year before, according to PPAC data.
POLAND BUYS MORE SPOT LNG
Polish state oil and gas company PGNiG has bought its
fourth spot LNG cargo this year, it said, as it prepared
to receive a delivery from Norway March 21. This is the
12th spot delivery to the President Lech Kaczynski LNG
Terminal in Swinoujscie since the facility started its
operations.
LNG prices are very low globally, and with no
arbitrage opportunities, short journeys represent better
value for the seller.
PGNiG bought the cargo, produced from the Snohvit
field, from Norwegian state-controlled Equinor. The tank-
er Arctic Discoverer is carrying the equivalent of 84mn
m³ of pipeline gas.
“The specifics of spot transactions are that we seek
attractive purchase opportunities from loads available
on the global market. Good trade relations with our
partners that had been established by our LNG office
in London are helpful in this matter. PGNiG is already
recognizable on the global LNG market as a credible
brand and an increasingly active trader,” said PGNiG’s
executive board member for trade, Maciej Wozniak.
PGNiG has also bought spot cargoes this year from
the US and has a long-term purchase contract with
Qatar Petroleum. But it has agreements covering a
lot more from the US, some with projects yet to take
final investment decisions. From 2023, the company
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 41
is contracted to take over 10bn m³/yr equivalent of
LNG from the US and Qatar on long-term capacity or
purchase contracts, much of which can be traded into
other locations.
CHILEAN GAS IMPORTS FROM
ARGENTINA HEAD HIGHER
Argentina, which re-started exports of natural gas to
Chile in late 2018, shipped 356.1mn m3 to its neighbour
last year, while exports in January this year reached
93.7mn m3, online Chilean media outlet Rio Negro re-
ported in March.
“In general terms, there is a growing import trend,”
the report said, citing Chilean energy minister Susana
Jimenez.
Argentine gas exports to Chile, a global copper pro-
ducing powerhouse, has allowed the country to reduce
its imports of LNG to meet demand from electricity
generators.
Chilean LNG imports that compete with Argentine
gas fell 14% between October and December 2018
compared with the year earlier period, despite some
clauses that don’t always allow Chile to replace LNG
imports with supply from Argentina, Jimenez said.
Much of the LNG displaced by Argentine gas is
primarily due to the huge difference in prices. “The price
of Argentine gas is approximately half the value of gas
imported in the form of LNG, before adding on regasifi-
cation costs,” said Jimenez.
JAPAN’S FEBRUARY LNG
IMPORTS FALL 11%
Japan’s LNG imports in February stood at 7.35mn metric
tons, down 11.4% year-on-year, according to provisional
data released by Japan’s finance ministry March 18.
February’s imports were also lower month-on-month. In
January 2019, Japan imported 7.55mn mt of LNG. 
Japan is the world’s biggest LNG importer and im-
ports in 2018 dropped 0.9% year-on-year to 82.8mn mt.  
The average price of spot LNG imported into
Japan contracted in February was $7.5/mn Btu, down
29.2% year-on-year, the country’s trade ministry
 NE W S: LNG DEM AND
(Meti) said March 11. The price was unchanged month-
on-month. Meti prices are provided on a ‘delivered
ex-ship’ in Japan basis, or else are converted into a
‘DES’ equivalent.
Meti also published March 11 official average arriv-
als-based prices for spot LNG cargoes. The latest figures
show that February arrivals’ average value was $8.3/mn
Btu, down from $10.5mn/Btu for January. This is likely to
reflect weaker oil prices six months earlier and suggests
a sizeable discount for spot deliveries, compared with
LNG sold on term contracts.
INDIAN OIL, CHART INDUSTRIES
TO MARKET LNG IN INDIA
US-listed Chart Industries, manufacturer of engineered
equipment for the industrial gas and energy industries,
and state-owned Indian Oil Corporation (IOCL) March 18
signed a memorandum of understanding (MoU) to pro-
mote the development of LNG markets in India, Chart
said March 19.  INDIA ISSUES GUIDELINES FOR
The companies will focus on modular liquefaction,
regasification applications, LNG bunkering for barges
and other marine applications, LNG & LCNG vehicle
fuelling stations, alternative LNG mobile transportation
such as railcars and ISO containers and LNG micro
bulk systems.
The companies have entered into this MoU based
on complementary synergies and mutually beneficial
business objectives arising from the demand growth
of natural gas in India, Chart said, adding that working
together, both parties will explore opportunities for co-
operation to promote natural gas and LNG development
in multiple industrial and commercial sectors.
“The LNG opportunity in India is significant, as
evidenced by the government’s commitment for clean
fuel, and the double-digit LNG growth forecasts. We are
excited about working with IOCL as it expands our reach
into the LNG market in India and provides IOCL with
speed to market as well as expanded service access,”
said Jill Evanko, Chart’s CEO.  start of commercial operations. Thereafter, 30% of the
“This opportunity originated from the recent acqui-
sition of the VRV businesses now within our portfolio
of offerings”. Italy-based VRV designs and manufactures
pressure equipment serving the cryogenic and energy
and petrochemical end markets.  ing wharfage for the shortfall in MGT, the ministry said.
IOCL’s first LNG import terminal was recently inau-
gurated by Indian prime minister Narendra Modi. The
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 42
5mn mt/yr LNG terminal is located at Kamarajar Port in
Ennore in the southern state of Tamil Nadu. IOCL holds
a 95% stake in the Ennore LNG import terminal; Tamil
Nadu Industrial Development Corporation has the re-
maining 5%. It is the first terminal on India’s east coast.
Ennore terminal received its commissioning cargo
February 25 from Qatar. The cargo was delivered
onboard the vessel Golar Snow by Gunvor. Qatargas
sold the cargo on a free on board (FOB) basis to the
Swiss trader.
IOCL may source more LNG directly rather than
via Petronet, consultants Wood Mackenzie said in a
note published March 7. “IOCL has signed a 0.7mn mt/
yr contract with Mitsubishi for 20 years, with supply
coming from Cameron LNG in the US. We believe the
commissioning of Ennore may also lead IOCL to source
more LNG directly rather than via Petronet,” WoodMac
senior analyst Kaushik Chatterjee said. Petronet is In-
dia’s biggest LNG importer and supplies regasified LNG
to customers such as Gail and IOCL. 
FSRU PROJECTS
India’s shipping ministry has issued guidelines for
locating floating storage and regasification units (FSRU)
at major ports, Businessline reported March 11 citing a
ministry circular.
According to the ministry, a land license model will
be followed under single stage e-tendering for FSRU
project implementation with private funds, wherein the
bid reserve price will be the water area charges set as
per the land policy prevailing at a particular port. The
entity quoting the highest premium above the reserve
price to be paid to the port will win the contract, typical-
ly for 30 years.
The total licence rental for the licence period is to be
paid upfront, Businessline reported citing the circular.
The FSRU project will not be bound by any minimum
guaranteed throughput (MGT) until five years after the
project capacity will be prescribed as MGT. The licence
agreement could be terminated for defaulting on MGT
for three consecutive years. However, the licensee may
be given an option to continue with the project by pay-
The FSRU operator will also be allowed to handle its
own LNG – it can buy LNG, handle it and sell at market
 NE W S: LNG DEM AND
determined rates. For transporting LNG through barges,
vessel-related charges pertaining to barges has to be
paid to the port trust.
The operator has to submit a bank guarantee equal to
10% of the project cost, subject to a maximum of rupees
5bn ($72.6mn), as performance security to ensure timely
commissioning of the project. The performance security
shall be forfeited by the FSRU operator, if the project is
not completed within two years or an extended period
not exceeding six months as approved by the port.
India’s LNG imports are expected to rise in coming
years as new terminals come online. According to Wood
Mackenzie, India’s regasification capacity will reach
56.5mn mt/yr by 2025 from the existing 25.5mn mt/
yr. India’s ability to import significant volumes of LNG
could be enhanced further if proposed regasification
terminals proceed, WoodMac said in a note published in
March.  approval process.
The south Asian nation has five operational land-
based terminals, four on the west coast and one on the
east coast, which received its first cargo in February.  
AIE EYES IMMINENT APPROVAL
OF OZ LNG IMPORT PROJECT
Australia Industrial Energy (AIE) said March 6 that it
hopes to win approval for its Port Kembla LNG import
terminal in “the coming weeks” and then take a final
investment decision (FID).
Noting that it submitted a positive Environmental Im-
pact Statement (EIS) in November, and that key supply
and offtake contracts are “nearing finalisation,” AIE said
in a statement that it hopes to obtain development con-
sent for the eastern coast project from the New South
Wales (NSW) government soon.
“Since its launch in March 2018 the Port Kembla Gas
project has made significant progress and is in the last
stage of preparation for the final investment decision,”
the statement read.  tions for various types of vessels, such as LNG and LPG
Australia is on track to become the world’s largest
exporter of LNG and does not currently import the fuel.
But a tight supply outlook for the country’s east coast
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 43
has led to the announcements of a number of separate
import project plans for the region.
“Port Kembla is now the most advanced of the
proposed LNG import projects in Australia,” the AIE
statement said.
The project is planned to have capacity of over 2.7bn
m³/year, which would meet over 70% of NSW’s total gas
needs, according to the company. No details of the sup-
ply and offtake contracts under discussion were offered.
The company added that design has been complet-
ed for a selected site and an FSRU secured. Australia’s
Squadron Energy and Japan’s Jera and Marubeni Corpo-
ration are AIE’s partners on the project.
AIE has said it anticipates having gas to market in
the first quarter of 2020. The LNG import project was
declared as critical infrastructure by the NSW govern-
ment in June 2018, which has helped to fast-track the
N-KOM COMPLETES FIRST
FSRU DRYDOCKING PROJECT
Nakilat-Keppel Offshore & Marine (N-KOM) has success-
fully completed its first floating storage regasification
unit (FSRU) project for the 138,000 m3 FSRU Exceler-
ate owned by Excelerate Energy. 
During its period at the Erhama Bin Jaber Al Jalah-
PHOTO: FLICKR.COM/JUAN CARLOS MARTINS
ma Shipyard, the FSRU underwent routine drydocking
and repairs, in addition to modifications and retrofitting
of several new systems, including the installation of a
ballast water treatment system (BWTS), Nakilat said in a
statement issued March 24. N-KOM received the FSRU
in January. 
The vessel is now ready to sail to Bangladesh to join
Excelerate’s FSRU Excellence in the Bay of Bengal and
serve as the country’s second LNG import terminal,
Nakilat added.
To date, N-KOM has completed seven BWTS installa-
carriers as well as very large crude carriers. Established
in 2008, N-KOM is a joint-venture between Qatari state-
owned Nakilat and Keppel Offshore & Marine.
 NEWS: LNG SHIPPING & TRANSPORT
ENDESA CHARTERS GASLOG
LNG TANKER
Spain-based energy group Endesa has chartered Gas-
Log’s uncommitted newbuild LNG carrier the GasLog
Warsaw, the latter said March 21. GasLog is scheduled
to take delivery of the 180,000 m³ tanker from South
Korea’s Samsung Heavy Industries in July 2019. The
eight-year fixed-term charter to Endesa will start in
May 2021.
Gaslog CEO Paul Wogan said he was delighted to
charter the vessel to “a leading European utility and very
high-quality counterparty. This charter expands our cus-
tomer base and we look forward to further developing
our relationship with Endesa.”
The company expects the spot market to be
strong for the vessel’s first few years, especially
in the winter. The combination of the vessel’s size,
highly efficient LP-2S propulsion and industry-leading
low boil-off rate of 0.07% all combine to produce an
extremely competitive transportation cost that should
make it particularly attractive to potential charterers,
said Gaslog.
Combined with the recent delivery of the GasLog
Gladstone 2, now on a 10-year charter to Anglo-Dutch
Shell, it has been a very successful start to the year for
GasLog, the company said. As a result, it has even more
confidence in its ability to more than double its consoli-
dated run-rate earnings before interest, tax, depreciation
and amortisation by 2022.   China’s Jiangnan Shipyard Group is set to sign a
Endesa CEO Jose Bogas said that “contracting
the GasLog Warsaw on long-term charter represents
another important step in delivering a flexible and com-
petitive LNG carrier solution to service our contracted
LNG volumes over the next 20 years. We are pleased to
partner with GasLog and look forward to developing this
relationship further.”
The GasLog Warsaw is chartered to Endesa for a
fixed eight-year term, with two optional periods of six
years each. The rate of hire for the charter is in line with
mid-cycle rates. GasLog expects that the combination of
the vessel’s near-term earnings in the spot market and
the earnings from the Endesa time charter will deliver
attractive returns for its shareholders.  brane LNG fuel tank inside the hull, which is expect-
The two-year wait means Endesa will use another
tanker to transport its offtake from Cheniere’s US Cor-
pus Christi LNG project, due to start up this summer.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 44
NAKILAT’S 2018 PROFIT UP 5%
Qatari state LNG shipowner Nakilat’s net profit for
the 12 months to December 31 was Qatari riyal 892mn
($245mn), up 5.3% year-on-year, it said March 19.
The company said it “continued to push boundaries
and successfully implemented several long-term growth
strategies by strengthening its international presence
and diversifying its fleet towards maintaining global
leadership in LNG transportation.”
Nakilat said it has continued to pursue its long-term
strategic goals through the expansion of its fleet with
two additional LNG carriers. Also, the company recent-
ly acquired a stake in its first floating storage regasifica-
tion unit (FSRU). 
Company CEO Abdullah Fadhalah Al Sulaiti said
Nakilat’s strong financial performance bears testament
to the company’s prudent long-term growth plans that
has enabled it to remain resilient despite challenging the
business environment.
CHINA’S JIANGNAN SHIPYARD
GROUP TO BUILD 5 LNG
CONTAINER SHIPS
$750mn deal to build five container ships able to run on
LNG, China Daily reported in March.
One of China’s largest shipbuilders, Jiangnan will
sign the deal to construct the 15,000 TEU, or twenty-foot
equivalent unit, dual-fuel container ships at the end of
March, technical director Hu Keyi told the newspaper.
French shipping giant CMA CGM is the customer.
The gas industry has been struggling to persuade the
operators of container fleets to switch to LNG in order
to help reduce emissions and meet the International
Maritime Organisation’s 2020 target to cap the sulphur
content of shipping fuels at 0.5%.
The ships will be equipped with a bigger mem-
ed to provide strong support to long-haul container
transportation, Hu added. They are likely to be used on
Asia-Pacific routes.
 NE W S: LNG SHIP P ING & T R ANSP OR T
SAMSUNG HEAVY BAGS LNG
CARRIER ORDER
South Korean shipbuilder Samsung Heavy Indus-
tries (SHI) has received an order worth won 215bn
($191mn) for an LNG carrier from an Asian shipowner,
it said March 22 without disclosing the identity of the
shipowner.
The carrier is expected to be delivered by March
2022. Samsung Heavy did not provide any further
details about the vessel. With this, the company has
now received orders worth $1.3bn for seven LNG car-
riers this year. In January, the company said it expects
to receive $7.8bn worth of new orders for the full
year, up 24% on year, owing to a pick-up in the new
building market globally, particularly for LNG ships and
container ships
FINLAND BACKS LNG FOR HGV
FUEL
Finnish state gas company Gasum is working further
with transporter DB Schenker to develop an LNG market
for heavy goods vehicles (HGVs). Two Finnish transport
companies operating for DB Schenker, Sepi Trans and
K&O Tiilikainen, have started to use LNG in their HGVs.
The state-run company is responsible for building refuel-
ling stations.
DB Schenker is a global transport and logistics com-
pany which intends to reduce by 30% its carbon dioxide
emissions between 2006-2020 by using cleaner modes
of transport, with one of these being LNG-powered
tractor units.
“Transport generates a great deal of carbon dioxide
emissions. LNG is an effective way of reducing carbon
dioxide emissions from heavy-duty transport,” said DB
Schenker.
Up to 90% of goods in the Nordic countries are
transported by road. In Finland, delivery and heavy-du-
ty transport account for almost 40% of road transport
emissions. Up to a fifth of Finland’s emissions could be
eliminated by switching to gas as a road vehicle fuel,
according to the companies.
“Finnish transport emissions must be cut by 50%
by 2030 from the 2005 level. Compared with other
emissions-generating sectors, the contribution of the
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 45
transport sector will have to be the greatest. There is
also major interest in LNG among transport entre-
preneurs – they want to be part of the change and
lead the way. LNG is also a cheaper alternative for
transport companies than other fuels such as diesel,”
said Gasum.
The Vantaa-based Sepi Trans received its first
gas-fuelled tractor unit, a Volvo FH 460, in January and
the Helsinki-based K&O Tiilikainen’s traction unit fleet
was supplemented by another gas-fuelled one, an Iveco
Stralis NP, in December last year.
The Finnish gas fuelling station network is one
of the fastest-growing in Europe. Both K&O Tiilikain-
en and Sepi Trans agree that coverage of the filling
station network is sufficient in their operating areas.
Gasum is expanding its Nordic gas filling station
network by several new stations a year. Last year
Gasum said it would build a network of 50 filling
stations in Finland, Sweden and Norway to serve
heavy-duty vehicles.
PLUTO TO OPEN TRUCK
LOADING FACILITY
Australia’s Woodside said it would officially open an LNG
truck-loading facility at the Pluto facility in March, COO
Meg O’Neill told the Australasian Oil & Gas Exhibition &
Conference March 13.
The trucks will supply LNG to customers and com-
munities in remote areas across northern Western Aus-
tralia not connected to the grid. This development points
to Woodside’s focus on the domestic market. Pluto LNG
recently supplied its first gas to the Dampier to Bunbury
gas pipeline with successful commissioning of the Pluto
pipeline gas facility.
O’Neill said Woodside has also been working to
develop the potential for LNG as a cleaner marine fuel
and the company believes Western Australia can lead
the way in this emerging market as the International
Maritime Organisation’s 2020 deadline for low-sulphur
marine fuel approaches.
“Woodside has been talking to the big miners about
using LNG to fuel the busy marine trade routes from
Western Australia to Asia and we are tendering for a
bunkering vessel to ensure the ships can be readily
refuelled in Western Australia, using Western Australian
LNG,” O’Neill said.
 NE W S: LNG SHIP P ING & T R ANSP OR T
ITALIAN DRIVERS TO GET MORE
NATURAL GAS STATIONS
Italy, home to Europe’s biggest fleet of natural gas
vehicles, is to have even more filling stations following
an agreement between Tamoil and pipeline operator
Snam, the latter said March 20.
The agreement will see Tamoil and Snam collaborate
on the design, construction, maintenance and operation
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 46
of four compressed natural gas plants and one liquefied
and compressed natural gas plant within Tamoil’s nation-
al distributors network.
The contract is part of Snam’s initiative to boost the
growth of the CNG and LNG distribution network in Ita-
ly, through direct investment and agreements with other
operators in the sector.
Italy has about 1mn natural-gas vehicles on the road
and over 1,300 service stations. Snam is also investing
in the development of biomethane, a zero-CO2 renew-
able gas produced from urban and agricultural waste.
PHOTO: FLICKR.COM/AMANDA GRAHAM
 NEWS: LNG CORPORATE
UNIPER SELLS STAKE IN
ITALIAN IMPORT TERMINAL
German utility Uniper has sold its 48.2% stake in Italian
import terminal operator Offshore LNG Toscana (OLT) to
US First State Investments for about €400mn ($450mn),
it said March 22.
OLT’s other shareholders are Italy-based generator
and distributor Iren Group, which has a 49.1% stake;
and vessel operator Golar LNG, which has a 2.7%
stake. Uniper said the proceeds at closing later this year
are expected to be around €340mn.
The unit is about 22 km from the Tuscan coast be-
tween Pisa and Livorno and can regasify 3.75bn m³/year.
The business is subject to Italian regulation.
In February, OLT said the terminal was working at
almost 100% capacity, less than a year after it brought in
an auction to allocate capacity. Globally LNG prices are
depressed as the mild winter has coincided with more
production capacity, so more has come to Europe.
Uniper, which is developing LNG import capacity
at Wilhelmshaven in Germany, said OLT is a regulated
asset and for Uniper a purely financial minority participa-
tion. It said owning the stake did not help it expand and
optimise its own LNG portfolio.
Uniper COO Eckhardt Rummler said First State
Investments was an experienced infrastructure operator
and “we’ve always said that selected existing gas infra-
structure investments which we consider as strategic
non-core assets may be suitable for portfolio rotation.
That means that we would reinvest the sale proceeds in
our growth businesses that generate attractive returns.”
The closing of the transaction is still subject to the
office in St Petersburg March 15 for discussions on
European gas markets.
Last year Gazprom increased gas exports to France
by 5.4% compared with 2017, delivering up to 12.9bn
m³. This upward trend has continued in early 2019.
According to provisional estimates, Gazprom exported
2.5bn m³ from January 1 to March 14, 2019, showing
a 1.9% rise on the same period of 2018, Gazprom said. 
Kocher and Gazprom CEO Alexei Miller touched
upon the current trends in French and European gas
markets, while also highlighting the successful opera-
tion of the Nord Stream 1 gas pipeline, of which Engie
is a shareholder; and Nord Stream 2, for which it is
covering a tenth of the costs.
Engie has kept a lowish profile with respect to its
role in Nord Stream 2, relative to other lenders to the
project – Austrian OMV, German Uniper and Wintershall
and Anglo-Dutch major Shell. Gazprom merely said
March 15, however, that the two sides “paid special
attention to the progress of the Nord Stream 2 project.”
The project is still awaiting Danish clearance to cross
through its territorial waters, and deliveries are due to
start late this year.
NORD STREAM 1&2
Finland
Vyborg
Norway
UST-LUGA
Sweden Estonia
m

approval of the competent authorities as well as other

rea

m2
d St

rea

customary conditions, 
Latvia Russia
d St
Nor

First State Investments is the international arm of Co-

Nor

lonial First State Global Asset Management, which has Denmark Lithuania
over €127bn managed on behalf of investors worldwide.
Belarus
Griefswald

Gas Pipelines in operation

Germany Poland Ongoing Projects
ENGIE VISITS GAZPROM FOR Source: Gazprom

NORD STREAM 2 TALKS

The project is heartily disliked by a number of US sen-
The CEO of French energy giant Engie, Isabelle Kocher, ators, who would like to sanction companies involved
and former minister Francois Fillon visited Gazprom’s with it; while also possibly seeing more US LNG reach

LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 47

 NE W S: LNG C OR P OR AT E
Europe. A number of governments in eastern Europe
have also tried to stop it altogether, and contributed to
funding lobby groups in the US.
But Engie, which is rebranding itself as a green
energy company, sees gas as essential for the energy
transition. Head of gas Didier Holleaux said that as
European gas production falls, the company needs
pipeline deliveries to ensure volume is there, at a pre-
dictable price.
Kocher and Miller discussed scientific and tech-
nology co-operation as well as gas deliveries. Engie’s
(formerly Gaz de France/GDF Suez) co-operation with
Gazprom goes back some decades, with French exper-
tise helping Russia’s national gas monopoly introduce
energy efficiency initiatives in Russian industry through
a joint venture, Ecogaz. 
QATAR FARMS INTO ENI BLOCK
OFF MOZAMBIQUE
Eni has ceded Qatar Petroleum a 25.5% participating
interest in Block A5-A, offshore Mozambique, subject
to the host government’s approval, the Italian company
said March 11.
Eni won the block, in the Northern Zambezi Basin,
some 1,500 km northeast of the capital Maputo, in
the fifth competitive licensing round and the explora-
tion and production contract was signed last October.
It extends over an area of 5,133 km² in a water depth
between 300 and 1,800 metres, in a completely
unexplored zone.
When Equinor left the venture, owing to the time
taken to agree the terms for an exploration contract,
Eni took its 25.5% stake, giving it 59.5%, which will
become 34% again after the farm out is approved. Oth-
er partners are South Africa’s Sasol, with 25.5%, and
the Mozambican state company Empresa Nacional de
Hidrocarbonetos (ENH), with 15%.
“Today’s transaction represent another milestone in
the strategic path that Eni and QP undertook to further
strengthen their partnership worldwide”, Eni CEO Clau-
dio Descalzi said.
Eni has been present in Mozambique since 2006,
when it gained the giant reserves in Petroleum Contract
Area 4, in the offshore Rovuma basin. Total gas-in-place
is estimated at in excess of 85 trillion ft³ following a very
successful exploration campaign, with the discoveries of
Coral, Mamba and Agulha.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 48
The Coral initial development program includes the
construction of a 3.4mn mt/year floating LNG plant
(FLNG), to treat, liquefy, store and offload LNG. Con-
struction started in June 2017 and production is expect-
ed in 2022.
The first phase development program for Rovuma
LNG includes an onshore plant of two trains for gas
treatment and liquefaction, with capacity of 15.2mn mt/
year. The project is expected to be sanctioned in 2019
and production is expected to start in 2024.
AUSTRALIA’S WOODSIDE
INVESTS IN ONLINE LNG
PLATFORMS
Australia’s Woodside has invested in two online LNG
platforms designed to facilitate greater price transparen-
cy, efficiency and compliance in LNG markets.
“The platforms will support the evolution of the LNG
trading market and the provision of precise real-time
information, enabling market participants to more effec-
tively match supply with demand under clearly defined
governance frameworks,” it said.
GLX was launched in 2016 and its LNG trading
platform became operational the following year.
Woodside became a foundation member of GLX in
July 2017. GLX now has 55 members from around the
world signed up. Woodside said it has now become an
equity investor to further support GLX as it seeks to
deepen its trading relationships in the LNG sector. It
will also look to support GLX by facilitating the trading
of LNG cargoes on the GLX platform where the oppor-
tunity arises.
Gastrayda is a start-up that is preparing for commer-
cial launch. Gastrayda is an LNG trade management and
compliance platform that caters for the complex pricing
associated with LNG cargoes and enables real-time
comparison of competing cargo trade options.
Woodside has provided technical know-how and
support to Gastrayda and now becomes a warrant
holder, giving it the option to become an equity investor.
Woodside said it will look for opportunities to use the
platform following commercial launch.
Both GLX and Gastrayda will remain independent
LNG platforms.
“As the pioneer of the Australian LNG industry,
Woodside is proud to be supporting two homegrown
 NE W S: LNG C OR P OR AT E
technology solutions that promote a market that is
more efficient, transparent and compliant for buyers
and sellers,” Woodside CEO Peter Coleman said. “As
the LNG market continues to evolve, we see a place for
long-term and mid-term contracts as well as trans-
parent and efficient spot trading on technologically
advanced platforms.”
SEMPRA NAMES LNG TEAM
BOSSES
US Sempra Energy CEO Jeffrey Martin announced
March 18 that Justin Bird has been named president
and Lisa Glatch the COO of Sempra LNG. He said this
was a “powerful combination as we work to be-
come North America’s premier energy infrastructure
company.” It has shares in projects totalling 45mn mt/yr
of LNG capacity.
Both Bird and Glatch will be reporting to Carlos Ruiz
Sacristan, chairman and CEO of Sempra North American
Infrastructure.
“We are well positioned to serve the growing At-
lantic and Pacific markets with five strategically located
development projects that will provide direct access
to clean and reliable natural gas,” said Ruiz Sacristan.
“Justin and Lisa bring extensive expertise in developing
infrastructure projects, marketing capacity, financing,
engineering and construction. With their leadership, our
LNG business is on solid footing for continued disci-
plined growth.”
Bird led the continued development of Sempra’s five
LNG projects when he was chief development officer
for Sempra North American Infrastructure and previously
led the $7.4bn project financing of the Cameron LNG
project in Hackberry, Louisiana. In his new role, Bird will
focus on marketing and project development.
Glatch has more than 30 years of engineering and
construction experience, as well as the management
of multibillion-dollar projects and will be responsible for
engineering and construction, project controls, human
resources, external affairs and operations for Sempra
LNG. She also will continue to serve as the board chair
for Cameron LNG.
Glatch joined Sempra Energy in 2018 as strategic
initiatives officer and her primary focus has been to
support the completion of Cameron LNG’s Phase 1,
the $10b joint-venture liquefaction project that is being
built, of which Sempra Energy owns 50%.
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 49
BANGLADESH EXTENDS LNG
CONSTRUCTION TENDER
Bangladesh has extended the deadline for expressions
of interest (EOI) for its planned 7.5mn mt/yr onshore
LNG import terminal by three months, a senior govern-
ment official said March 21. Rupantorito Prakritik Gas
Company (RPGCL), a wholly-owned subsidiary of state-
owned Petrobangla, issued the tender January 29, with
the initial deadline of March 20.
“But we extended the deadline on March 14 fol-
lowing requests from some prospective bidders,” the
RPGCL official said, requesting anonymity. So far two
companies, one of which is from Japan, have submitted
EOIs, said the official without naming either.
The winner would build, own and operate the termi-
nal at Cox’s Bazaar district for 20 years and transfer it to
the state. Bangladesh now has a 3.75mn mt/yr floating
terminal (FSRU), Excellence, operated by US Excelerate
Energy. A second FSRU owned by local Summit Group
is expected to come online soon.
Commercial supply of re-gasified LNG to Bangladeshi
consumers started August 18, 2018 and Petrobangla start-
ed regular imports of LNG from Qatar’s RasGas September
9. The Excellence delivers about 510mn ft³ regasified LNG.
Apart from RasGas, Oman Trading International start-
ed supplying LNG in June under long-term deals and
Indonesia’s Pertamina has a letter of intent to supply
Bangladesh with around 1mn mt/yr for 10 years. Domes-
tic gas output is hovering at around 2.75bn ft³/d.
CIMIC BAGS WOODSIDE
CONTRACT
Australia’s Cimic Group company, UGL, as part of a joint
venture, has been awarded a new contract for services
on the Woodside-operated Karratha gas plant, Cimic said
March 18.
The new contract work includes two further multi-
year extension options. UGL has provided services at
the plant since 2015.
The joint venture, between UGL and Cape, will
provide brownfields implementation services including
planning and execution of work scope for mechanical,
electrical and instrumentation, access, fire protection ap-
plication, blasting and painting, cladding and insulation.
 NE W S: LNG C OR P OR AT E
Located 1,260 km north of Perth, Western Australia,
the gas plant includes five LNG processing trains, two
domestic gas trains, six condensate stabilisation units,
three LPG fractionation units as well as storage and
loading facilities for LNG, LPG and condensate.
BP AWARDS MORE SENEGAL
CONTRACTS
UK major BP has awarded Baker Hughes (BHGE) and
McDermott the subsea production equipment orders
for its gas project off Senegal, McDermott said March
11. The companies are working together to realise effi-
ciencies, drive project synergies and enhance delivery
times, they said.
The contracts cover subsea umbilicals, risers and
flowlines (Surf) and subsea production system (SPS)
equipment and are for the Greater Tortue Ahmeyim
natural gas project, offshore Mauritania and Senegal. BP,
BHGE and McDermott are working together to realize
efficiencies, synergies and enhanced delivery times.  m3 in the year before. Sales revenue for the year was
McDermott said the Surf contract, worth between
$500mn and $750mn, marks a number of firsts: its first
significant subsea EPCI project in West Africa; the first
project using its state of the art pipelay vessel Amazon;
and its support of BP’s first entry into Senegal and Mau-
ritania. Installation is due to begin in late 2020.
BHGE said the “major deepwater gas development
is strategically important for Mauritania and Senegal’s
domestic and global gas supply, and supports the indus-
try’s drive for a more sustainable, lower carbon future.”
BHGE and McDermott did the initial front-end engi-
neering and design (Feed) work together to define the
technology and equipment scope for a four-well devel-
LNG CONDENSED | N AT U R A L GAS WO R L D. C O M 50
opment phase. Project management and engineering
teams from BP, BHGE and McDermott will remain co-lo-
cated at McDermott’s London offices for this phase.
The initial subsea infrastructure connects the first
four of 12 wells consolidated through production
pipelines leading to a floating production, storage, and
offloading (FPSO) vessel. From here liquids are removed
and the export gas is transported via a pipeline to the
floating liquid natural gas (FLNG) hub terminal where
the gas is liquefied. Golar is to supply the FLNG unit,
which is to be built in Singapore’s Keppel yard. Its initial
production capacity is 2.5mn mt/yr of LNG.
SHIZUOKA GAS 2018 SALES
VOLUME UP 6%
Japanese city gas supplier Shizuoka Gas March 13
reported a 6% year-on-year rise in gas sales volume
for the 12-months to December 31. The company’s gas
sales volume in 2018 was 1.54bn m3 as against 1.45bn
yen 143bn ($1.3bn), up 17% on 2017, Shizuoka said.
Founded in 1910 in Shizuoka prefecture, Shizuoka
Gas supplies gas to Shizuoka city, Fuji city, Fujinomi-
ya city, Numazu city, Mishima city, Susono city, Shi-
mizucho, Nagaizumicho and Kannamicho.
PHOTO: WIKIMEDIA.COM
The company is Japan’s fourth biggest buyer of LNG
and operates the Shimizu LNG import terminal. In Janu-
ary, it entered into a sale and purchase agreement with
China’s Clean Energy to deliver LNG from its terminal in
the form of ISO tank containers.
Shizuoka Gas said it has been seeking further utili-
sation of its Shimizu LNG terminal since 2017 when it
successfully sold gas from its reloading facility.
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80%
49 51
attendees to Gastech

% % Of Exhibition Space
*Survey of 2018

Already sold

Up to US$50M Up to US$50M & Above

Stand & Sponsorship Bookings Are Now Open

Contact us to find your ideal location, stand and sponsorship opportunities based
on your budget and objectives.

Alternatively email us sales@gastechevent.com or visit our

website www.gastechevent.com

Co-Hosted by Supported by Official Partner Organised by

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