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sold its laid-up, 126,530-cbm Caribbean Energy (ex-Gaea, built 1980) for demolition. The 41-year-old Moss-type LNG carrier
is expected be towed to Bangladesh or Pakistan. Brokers said the company’s 140,708-cbm HongKong Energy (ex-Northwest
Swan, built 2004) and its 138,000-cbm Singapore Energy (ex-British Innovator, built 2003) remain on-off sales candidates.
Sinokor built its fleet of LNG carriers over the past six years by buying cheap, often laid-up secondhand tonnage. But it has
only traded a couple of the vessels. In 2019, the company made its second foray into newbuildings, after a first order collapsed
in a row with Daewoo Shipbuilding & Marine Engineering five years earlier, booking four vessels at Samsung Heavy Industries
instead. But newbuilding sources said the company has only paid a deposit on one of the vessels. SIN lists Sinokor as owning
12 LNG carriers, two of which are in service, one idle and another under repair. It omits reference to the newbuildings. source :
www.tradewindsnews.com
Novatek originally asked about 15 shipowners for offers on four firm vessels and two optional ships.Observers have expressed
concerns that international bank financing for ships chartered to a Russian entity may prove difficult to secure. The gas company
plans to use lower ice-class tonnage than the specialised ice-breaking fleet of Arc7 LNG carriers it contracted for its Yamal
LNG project as it ramps up its production with a second project, the 19.8 million tonnes per annum Arctic LNG 2. These new
Arc4 vessels will take on cargoes transshipped from two giant floating storage units that will be installed near Murmansk, in
the west, and Kamchatka, at the eastern end of the Northern Sea Route. This will leave the Arc7 fleet of 15 existing vessels
and 21 newbuildings, 15 of which are being constructed at Russia’s Zvezda Shipyard Complex, to ship cargoes through the
Arctic route’s more challenging icy waters. Novatek is building up a sizeable chartered LNG fleet that looks set to top 50
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vessels by 2023. At a meeting with Russian President Vladimir Putin this month, Novatek chairman Leonid Mikhelson updated
the premiere on the company’s development plans. He told Putin: “Our plans for 2024 to 2030 are to produce four more
liquefaction trains with a total capacity of over 26 million tonnes.” Mikhelson said this will require Zvezda to build about five
tankers each year, or 26 to 30 tankers, by 2030. source : www.tradewindsnews.com
Asia’s spot LNG market is being supported by unprecedented LNG demand from North Asia, especially China, where economic
activity has been relatively robust in 2021 on the back of recovery from the pandemic. “The market is quiet about the diversions
from India, which have not affected the market at all,” an Atlantic Basin LNG supplier said. Several LNG carriers headed for
Indian ports have been diverted in recent weeks; the South Korea-flagged HL Ras Laffan was diverted from Dahej to South
Korea on May 15-16, and other vessels were previously diverted to Fujian, Europe and the Middle East, according to shipbrokers
and vessel tracking data. India’s state gas company GAIL was heard seeking an LNG cargo for June 11-13 delivery to Hazira
terminal, but this was due to disruptions at ONGC’s offshore gas production platform on the west coast due to Cyclone Tauktae,
which recently damaged offshore vessels, killing dozens. India’s gas-fired power generation has dropped as economic activity
remains affected in several states by restrictions to stem the coronavirus resurgence. “India’s power generation from gas-fired
power plants averaged 4.7 GW for the first half of May, which is 1.5 GW lower year on year. This is equivalent of a decline
in gas demand of about 10 million cu m/day,” said Andre Lambine, Senior Power Analyst at S&P Global Platts Analytics.
While Indian gas importers have largely backed away from the heavy spot market procurement seen earlier this year, the
reduction in buying interest is also partly due to the high spot prices. Citigroup in a May 24 update said that various firms in
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India have requested canceling or delaying some of their LNG deliveries, particularly for June, but at the same time the Indian
market was also highly sensitive to high LNG prices, both spot and oil-indexed, that have reduced its appetite for LNG.
“Although such cancelations or delays, if realized, would make available more LNG for the rest of the market globally, the
actual number of cargoes freed up might not be large,” Anthony Yuen, Managing Director and Head of Commodities Strategy
for Pan-Asia at Citi, said in the report. To put Indian volumes into context, Yuen said India has been importing about 3 Bcf/d
of LNG in recent months, with around 2.6 Bcf/d believed to be under contract, and cutting 0.5 Bcf/d of LNG imports for a
month might only amount to about 15 Bcf, or 0.42 Bcm. “To illustrate the relative size of this development, total natural gas
storage in much of Europe is about 13 Bcm below the 5-year average. The price impact, using European coal-to-gas switching
as a sensitivity, might only be about $0.05/MMBtu,” Yuen added. COVID-19 induced demand destruction in India threatens
some of the upside to Asian LNG prices, but overall Indian growth is still positive at more than 29 million cu m/d, keeping
Asia-Pacific LNG imports over 90 million cu m/d stronger year on year, Chris Durman, Head of LNG Analytics at S&P Global
Platts, said earlier in May. “But continued further strength in the JKM is likely to cause end-users to retreat to the sidelines,”
Durman added. source : www.platts.com, www.hellenicshippingnews.com
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WORLD'S LARGEST BIOLNG PLANT TO DOUBLE IN SIZE
Biogas will become increasingly important in the European energy transition picture, with the expectation it will supply 30-40%
of Europe’s gas needs by 2050. A major of supplier of biogas, Biokraft has ordered a biogas liquefaction plant from Wärtsilä
that will double the capacity of its existing facility, the world’s largest. A subsidiary of the Scandinavian Biogas Group, Biokraft
will add 25 tonnes per day capacity to its existing bioLNG production plant at Skogn in Norway, increasing its capacity to 50
tonnes per day. Wärtsilä supplied the facility’s original liquefaction plant. The market for liquefied biogas continues to expand
along with the increase in global efforts to restrict the use of fossil fuels. BioLNG is an abundant renewable energy source that
is used as ‘green’ fuel in transportation, industrial and marine applications. “Wärtsilä’s latest mixed refrigerant – MR – technology
used in our liquefaction plants is extremely reliable, and offers the lowest operating costs for liquefying biogas,” said Wärtsilä
Gas Solutions sales manager, biogas solutions Maria Ortiz. Wärtsilä will deliver the equipment in May 2022. Biogas is already
used as fuel in small parts of the transport sector, especially in buses. Northern Europe and Norway, which has large fishery
and forestry sectors that produce a steady volume of organic waste, underpin biogas production. In 2019, Biokraft entered into
a 7.5-year contract to supply climate-neutral liquefied biogas (LBG) to expedition cruise line Hurtigruten. Made from dead fish
and other organic waste, the LBG is used to power the line’s expedition cruise ships with fuel. source : www.rivieramm.com
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WA KAOLIN SIGNS 15-YEAR LNG AGREEMENT
Western Australian miner WA Kaolin (WAK) has signed a 15-year A$22mn ($17mn) contract for the supply of LNG for its
Wickepin Kaolin project, with Mid-West LNG (MWLNG), a unit of Perth-based Clean Energy Fuels Australia (CEFA), it said
on May 26. The LNG will be used to fire the rotary kiln at Wickepin that dries the kaolin ore, which is the first step in the
company’s proprietary K99 dry processing method, WAK said.The contract, which includes the supply of commissioning gas
from September 1, 2021, to the end of 2021, will start on January 1, 2022, and will run for 15 years with reviews at year five
and year 10, and provides for two options to extend for a further five years respectively. The contract provides for the storage
and revapourisation infrastructure, including delivery of LNG by a virtual pipeline.CEFA is developing small-scale LNG
infrastructure assets for remote mining operations and communities within Australia. CEFA, through MWLNG, is in the process
of building a new LNG plant in Mount Magnet, located approximately 600 km north of Wickepin, and WAK will be the second
customer supplied from this new facility. The Mount Magnet LNG hub is expected to supply in excess of 500 metric tons/day
LNG when fully ready, WAK said. Approval for the development of the Mid-West LNG hub at Mount Magnet was confirmed
by the Western Australian Planning Commission in November 2020. source : www.naturalgasworld.com
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tanks will be fitted with GTT's GST technology and will be delivered to Tianjin in the third quarter of 2023. The French company
won a contract for two other tanks at Tianjin in June 2020. The latest order was made under a cooperation agreement in
reached with BGG in March, envisaging the supply of an additional six tanks. source : www.naturalgasworld.com
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capacities of around 174,000 m3 and are fitted with dual-fuel, two-stroke propulsion, making them "particularly ideal for large
parcel, long haul transportation with the industry's lowest carbon footprint and unit transportation cost," Flex LNG said.Cheniere
operates the Corpus Christi and Sabine Pass LNG terminals in Texas. source : www.naturalgasworld.com
European prices
The UK National Balancing Point natural gas price and the Continental European benchmark, the Dutch Title Transfer Facility
(TTF) price, were still at high levels for the start of the summer season. The NBP was at $8.90 per MMBtu on May 28, slightly
higher than last week’s $8.85 per MMBtu as storage needs were firm and usage levels mixed. The NBP had hit a 2021 high
of $9.70 per MMBtu earlier in May. The Dutch TTF also gathered pace to be at the equivalent of $9.00 per MMBtu versus
$8.80 per MMBtu a week ago. In the spot delivered ex-ship (DES) LNG cargoes market for areas such as India and the
Middle East region, the West India Marker (WIM) price rose to $9.756 per MMBtu for July compared with last week’s $9.550.
The August West India Marker price was also higher at $9.627 per MMBtu, up from $9.500 per MMBtu . These India-Gulf
prices cover LNG spot physical shipments delivered ex-ship (DES) into ports such as those in India and in Kuwait and covering
cargoes in the range of 135,000-175,000 cubic metres capacity. The North Sea Brent crude oil price jumped on the week by
more than 6.5 percent to $69.78 per barrel on May 28, up from $65.25 per barrel in the previous week.
Oil-linked LNG
Crude prices are increasing because of the gathering pace of the resumption of global economic activity with oil needed for
industry and fuel. However, there was also concerns about inflation in countries like the US where this Memorial Day weekend
is the traditional start of the US summer driving season when gasoline demand soars. Structural and regulatory worries in the
US oil and gas industry since January 2021 have seen retail gasoline prices soaring more than 55 percent to over $3.05 per
gallon on average compared with $1.95 per gallon just over a year ago, according to data from the American Automobile
Association.At current Brent oil price levels, the long-term, crude-linked LNG price was at around $9.25 per MMBtu.
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US data
The US exported 18 LNG cargoes in the past week compared with 21 shipment in the previous week, with a combined LNG-
carrying capacity of 67 billion cubic feet, according to the US Energy Information Administration. Seven cargoes were lifted
from the Sabine Pass plant in Louisiana and four from Cameron LNG, while the two Texas plants, Freeport LNG and Corpus
Christi, each shipped three cargoes and one departed from the Cove Point in Maryland and none from Elba Island in Georgia.
“Natural gas deliveries to US LNG export facilities averaged 10.5 billion cubic feet per day, or 0.22 Bcf per day higher than
last week,” added the EIA. The EIA said US pipeline natural gas exports to Mexico increased by 1.3 percent to 6.0 Bcf per
day.US Gulf Coast LNG futures prices jumped on the week as the market demand was high for American export volumes.
The July US GCL free-on-board (FOB) cargo quote was $8.543 per MMBtu versus $7.340 per MMBtu last week. The August
GCL FOB was quoted at $8.336 per MMBtu versus last week’s $7.346 per MMBtu.The US Henry Hub benchmark spot natural
gas price was unchanged on the week at $2.85 per MMBtu, as was the New York Mercantile Exchange front-month natural
gas futures price at $2.960 per MMBtu.On the US storage front, net injections totaled 115 Bcf for the week compared with the
five-year (2016-2020) average net injections of 91 Bcf and last year's net injections of 105 Bcf during the same week. “Working
natural gas stocks totaled 2,215 Bcf, which is 63 Bcf lower than the five-year average and 381 Bcf lower than last year at this
time,” said the EIA.The dollar, the base currency in energy, rose against the euro. In April 2020 one US dollar bought you
€0.93 cents in Europe. The dollar was able to be exchanged for €0.82 on May 28, up from €0.81 last week.
Global liftings
In the LNG shipping market, data showed that there would be around 115 cargo liftings in the week through Sunday May 30
from producing nations in the Pacific Basin, the Atlantic Basin and the Arab Gulf region. This is higher than the previous
week's 104 liftings.The Pacific Basin will account for around 43 shipments in the week through May 30, including 20 from
Australia, around six from Malaysia and six from Indonesia, two from Brunei and two from Papua New Guinea.The Basin’s
Pampa Melchorita facility on the Pacific Coast of Peru is currently off stream because of technical issues.Another four cargoes
were being lifted from Gazprom’s Sakhalin Island plant in the Russian Far East.In the Atlantic Basin there were scheduled to
about 43 liftings, including 19 departures from the US in the week through May 30.Six shipments were departing from Nigeria,
five from Algeria, one from Trinidad, one from Angola, one from Cameroon, one from Egypt’s Idku plant and seven from the
Russian Arctic Yamal plant.A further 29 cargoes were scheduled to depart from the Arab Gulf region in the week through May
30, mostly from Qatar but also including two headed for Asia from Oman and two from Abu Dhabi’s Das Island plant in the
United Arab Emirates. Shipping charter rates for LNG carriers in the spot market declined in the past week by up to $6,000
per day in the West of Suez market to between $59,000 per day and $56,000 per day for vessels of 155,000-165,000 cubic
metres capacity. For vessels East of Suez fixture levels were down by about $8,000 per day and were quoted at between
$61,000 per day and $58,000 per day, according to London brokers.
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UK natural gas data
Natural gas pipeline supply to the UK market increased on the morning of May 28. Data from National Grid showed that
instantaneous pipeline flows from the North Sea rose to 181.35 million cubic metres of supply, up from 168.77 mcm of flows in
the same period last week. That’s as UK domestic gas domestic and industrial demand plunged to 181.31 mcm of flows
compared with last week’s 206.66 mcm. Supply flows on May 28 at gas grid connections near the UK’s two LNG terminals
at Milford Haven in Wales, South Hook LNG and Dragon LNG, rose to 31.24 mcm (22.49 mcm May 21). The pipeline flows
near the Isle of Grain LNG terminal on the shore of the Thames-Medway estuary, southeast of London, jumped to 42.60
mcm (15.93 mcm). North Sea pipeline gas supply dropped to the St Fergus terminal in northern Scotland to 19.60 mcm (34.90
mcm).Flows plunged to 8.70 (32.03 mcm) to one of two terminals at Bacton in Norfolk on the East Coast of England, with
the other facility closed.The Easington terminal on the Yorkshire coast saw flows decline slightly on the week to 39.13 mcm
(40.48 mcm) while flows to the Teesside terminal were also lower at 20.07 mcm (22.24 mcm).A National Grid data weekly
snapshot also showed that on May 26 natural gas provided the main proportion of the UK’s energy mix for power generation,
amounting to 42.6 percent of the total.Other UK power sources on that date comprised nuclear 16.8 percent, wind 15.1 percent,
imports 11.7 percent, biomass (wood) 7.3 percent, solar 5.1 percent, hydro 1.3 percent and coal 0.1 percent.
Pipeline flows to EU
Pipeline natural gas flows from Norway on the morning of May 28 to the European Union nations of Germany, Belgium and
France were mostly lower. While flows to the German terminal at Emden increased to 67.7 mcm compared with 56.8 mcm at
the same time last week, pipeline flows through Germany’s Dornum terminal dropped to 43.4 mcm versus last week’s 52.9
mcm. The Zeebrugge (Belgium) flows declined to 35.8 mcm (43.1 mcm) along with flows to Dunkirk (France) of 42.4 mcm
(48.6 mcm), according to data from the Norwegian pipeline network and terminals operator Gassco. The Norwegian aggregated
(including UK) exit flows on May 28 were higher at 270.4. mcm compared with 267.7 mcm of flows a week ago. source :
www.lngjournal.com
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the largest being Bontang. Their existing nameplate export capacity of over 20 MTPA has been dropping as domestic demand
increases.
Pipelines
Indonesia, because of its lack of pipeline infrastructure, linked to the islands geography, was the first exporting nation to
become a user of regasified LNG in the home market. It already has five regasification facilities nationwide with the first of
them, the FSRU “Nusantara Regas Satu”, having come on line in 2012. “To strengthen the country's energy independence
and resilience, Pertamina through subsidiaries and PT Badak LNG will provide integrated LNG infrastructure to support
Pertamina's refinery business development in Cilacap,” said Pertamina. The small-scale onshore terminal will be implemented
under the, land-based regasification expansion programme with an estimated investment cost of US$151.7 million. Accords
have been signed covering the project by Pertamina natural gas (PGN) unit head Haryo Yunianto, the head of Kilang Pertamina
Internasional (KPI), Djoko Priyono, the President of Pertamina International Shipping, Erry Widiasto, and the Chief Executive
of Badak LNG, Gema Iriandus Pahalawan. The signings were witnessed by the President of the Pertamina group, Nicke
Widyawati. “The agreements cover three scopes, namely, between PGN and KPI for the provision of LNG infrastructure,
between PGN and PT Badak LNG to provide LNG storage and break-bulking facilities and between PGN and the shipping
unit for the utilization of LNG ships with a long-term time charter scheme,” explained Pertamina.
Retail LNG
Pertamina also said it was planning the development of the retail LNG fuel market in southern Central Java. Indonesia’s LNG
export plants, apart from Bontang, are the BP-operated Tangguh plant where a third Train is scheduled to start up in 2022
and take output to over 10 MTPA. The third liquefaction facility is the smaller scale Donggi-Senora plant, a joint venture
between Pertamina, Mitsubishi Corp. of Japan and Korea Gas Corp. and with production of 2 MTPA. The world’s first LNG-
to-power floating project and Indonesia’s second small-scale regasification terminal, located offshore Amurang in North
Sulawesi, started in September 2020. Indonesia was also the first country to turn a liquefaction and export plant at Arun into
a regasification terminal. The terminal additionally started truck-loading services in 2020. Pertamina’s regasification programme
already includes construction of a small-scale regasification terminal at the port of Teluk Lamong. source : www.lngjournal.com
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to a combination of two indices, the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF), netted back for
transportation charges,” said Tellurian. The LNG would be delivered on free-on-board (FOB) basis from the Driftwood facility,
the project on the Gulf Coast with proposed total output of 27.6 MTPA. The Gunvor’s global commodities business already
involves almost 18 MTPA of traded LNG cargoes. “Tellurian intends to market up to 10 MTPA of LNG in our first phase on a
JKM, TTF or blended price basis, as our integrated model provides the flexibility to offer this valuable product,” explained
Tellurian President and Chief Executive Octávio Simões. “We welcome Gunvor, the largest independent global trader of LNG
volumes, to Driftwood and look forward to providing a cleaner fuel to meet growing global energy needs,” stated Simões.
Tellurian had hinted in its first-quarter earnings report at the start of May 2021 that the improving market favoured the signing
soon of supply agreements. The Houston, Texas-based company said it continued to build its Gulf Coast natural gas business
and had concentrated on paying down debt. The overall project plan for Tellurian now is for the Driftwood liquefaction plant to
have first-phase production of 16 MTPA, rising to over 27 MPTA with expansions. Tellurian produced 3.3 billion cubic feet of
natural gas for the quarter in the Haynesville shale basin in north Louisiana. Tellurian’s upstream assets include 9,704 net
acres and interests in 72 producing wells. The company ended the first quarter with around $58.7M of cash and cash equivalents
and generated $8.7M in revenues from natural gas sales. Tellurian added that it still had a strong balance sheet consisting of
around $270.3M in total assets. Charif Souki, the Executive Chairman of Tellurian, said in a presentation last month that the
use of the gas-fired power option was growing in Asia and his company hoped to start finalising commercial agreements based
on the current “very strong gas market fundamentals” in Asia and Europe. source : www.lngjournal.com
LNG carrier deliveries are expected to slow from the third quarter, with 12 scheduled for both the third and fourth quarters of
this year, before slowing further in 2022-2023.In other activities in mid-May 20121, BW Group said a $128.3 million financial
package was arranged to help fund a converted floating storage and regasification unit (FSRU) as part of a gas-for-power
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project in the Latin American nation of El Salvador.The financial package has a 15-year contractual term. The funds provide
resources for the purchase and conversion of the “BW Tatiana” LNG carrier to an FSRU.This is the region's first FSRU, which
will be permanently moored at the Port of Acajutla in El Salvador.BW LNG is developing the project with Invenergy, a
multinational power generation and operations company.Invenergy and BW LNG will jointly commission, operate and maintain
the FSRU. source : www.lngjournal.com
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said that considering China is Australia’s leading trading partner, the impact of the Covid-19 dispute has been relatively small
in terms of LNG and other commodity shipments to China amid previous Chinese economic threats against Australia.
Australian LNG deliveries to China totalled 3.06 million tonnes in April 2021, an increase of 10 percent from the same period
of 2020 and making up 45 percent of China's total LNG imports.
Japan’s nuclear
“Higher nuclear generation is expected to cause Japan’s LNG imports to fall in 2021 and 2022, and will more than offset any
increases to LNG imports from the assumed economic recovery,” said the Australian report.“However, the pace of increase in
nuclear generation remains uncertain, and subject to potential delays and slippages,” it added. South Korea’s LNG imports
increased strongly in the last few months of 2020, supported by temporary nuclear and coal power plant outages and strong
buying ahead of winter. “This follows relatively weak LNG imports earlier in 2020, when imports were weighed down by both
the impacts of the Covid-19 pandemic on power demand, and by the restart of nuclear power plants,” said the report. Over
the full year, South Korea’s LNG imports declined by 2.3 percent to 41MT. South Korea’s LNG imports are forecast to stage
a modest recovery in 2021 and 2022, rising by about 1.5 percent a year. The report said that Taiwan’s LNG demand was
relatively resilient in 2020 despite the impacts of Covid-19, supported by increases in gas-fired power generation. “The
Taiwanese government is aiming to increase the share of gas-fired power generation in its electricity mix, from the current
share of 35 percent to 50 percent by 2025,” stated the report.Taiwan’s LNG imports are projected to grow in the next few
years to reach 24MT by 2026. source : www.lngjournal.com
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CHINA'S SINOPEC EXTENDS ARAB WORLD PRESENCE WITH ALGERIA
ACCORD AFTER QATAR LNG AND IRAQ GAS DEALS
Sonatrach, the Algerian state energy company and operator of two liquefied natural gas export plants, and Sinopec of China,
an importer of LNG from nations like Australia, have signed an accord to extend and broaden the Chinese major’s 20-year oil
producing role in the North African country. Sinopec, whose full name is China Petroleum & Chemical Corp., has signed a
memorandum of understanding with Sonatrach in Algiers as part of the extension of their partnership and with the aim of
seeking other development projects. “This accord emphasizes the will of the two parties to consolidate their existing relations
and extend their cooperation, through the search for new partnership opportunities,” said a statement after the talks in Algiers.
The two parties noted that they already had a “historic partnership” dating back to 2001 when Sinopec signed an Enhanced
Oil Recovery (EOR) contract for the Zarzaitine oil field in the Illizi Basin that had already been in production since 1960. The
Illizi Basin in southeast Algeria near the border with Libya also contains significant untapped shale gas and shale oil resources.
A US report on global shale oil and gas resources mapped an overall shale prospective area of 26,600 square miles for the
Illizi Basin, one of four identified main shale areas in Algeria.When the Zarzaitine oil field deal was signed in 2001, Algeria
was the 14th-largest global producer and has since dropped to 16th place as investment has ebbed and flowed over the years.
Sonatrach said it aimed to define the framework for further cooperation with Sinopec with a view to concluding a new
hydrocarbon contract. The Algerian company said this agreement would extend the operating life of the Zarzaitine field beyond
2023, the end of the term of the current contract. “The accord also aims to identify joint investment opportunities for both
parties in hydrocarbon exploration and production projects, integrating cooperation in the field of LNG and petrochemicals in
Algeria,” added the statement. Sinopec’s most recent new oil and gas deal in the Arab world was in Iraq where in March 2021
it won the licence to further develop the Mansuriya natural gas field, located near the Iranian border. The field is located about
100 kilometres northeast of Baghdad and near the town of Khanaquin. The field previously had plateau production of around
320 million standard cubic feet per day. Sinopec is one of the leading gas companies among the Chinese major and is the
lead developer of the Fuling shale-gas project in China and has LNG import contracts from overseas, including from Australia
and most recently Qatar. Under the Qatari agreement signed in February 2021, LNG cargos will be delivered by Qatar to
China starting in January 2022. The shipments will be delivered to terminals where Sinopec has capacity, including the eastern
Shandong province, the autonomous region of Guangxi and at Tianjin Port, east of Beijing. source : www.lngjournal.com
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