LNG NEWS WEEKLY DATE 14th MAY 2021

HYUNDAI LNG NETS REPSOL NEWBUILDING

Spanish charterer Repsol has selected South Korean owner Hyundai LNG shipping for a long-term charter deal on an LNG
newbuilding. Newbuilding sources said Hyundai LNG emerged as the preferred choice for the business after it was shortlisted
against competitor Norway’s Knutsen OAS shipping in a tender process earlier this year. Knutsen has traditionally been a
favorite for winning Spanish business, so the selection appears to have surprised some of those following the tender.
Shipowners said Hyundai LNG is likely to have presented the most competitive deal. Repsol’s tender offered a 10-year charter
on the vessel.
Expansion drive
The company needs additional tonnage to lift its us volumes from venture global LNG’s under-construction - Calcasieu pass
export facility in Louisiana, where it has contracted to buy one million tonnes per annum of LNG. Hyundai LNG, which currently
operates eight LNG carriers, has been particularly active in expanding its gas carrier fleet in the past few months. In April,

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Hyundai LNG inked 20-year contracts with Petronas LNG on up to six LNG carrier newbuilding’s, with the three firm vessels
worth more than $550m in total. The LNG carriers will be built at Hyundai heavy industries and used to ship cargoes from the
LNG Canada project. Last month, Hyundai LNG also extended its VLGC commitments with orders for four vessels for delivery
dates in 2023. The company splashed out $166.5m on two 94,000-cbm VLGC newbuilding’s at Daewoo shipbuilding & marine
engineering. The ships are believed to have been contracted against charters with Dubai-based BGN international. These were
in addition to a pair of 86,000-cbm VLGC newbuilding’s contracted at Hyundai samho heavy industries for charter to South
Korean LPG importer E1.
Hyundai LNG is controlled by IMM Private Equity.
IMM acquired the business in June 2014, when it was spun off from Hyundai Merchant Marine. But the fund that controls
Hyundai LNG shipping matures in 2022. South Korean shipping players speculate that MM “fattening up” the shipowner and
improving its returns profile with a view to selling it on in the near term. Source : www.tradewindsnews.com

CNOOC TENDERS FOR TRIO OF LNG CARRIER NEWBUILDING’S

Chinese energy firm invites bids as CSSC’s new duo hit the sales block. Chinese National Offshore oil Corp (CNOOC) has
emerged in the market for three LNG carrier newbuilding’s. Industry sources said the Chinese energy company has invited at
least 10 shipowners to submit offers. Companies in china and japan are believed to be in the mix. They detailed that CNOOC
has specified vessels with x-df propulsion systems that will be built in china. CNOOC is understood to be offering long-term
charters of 10 years and more on the Newbuilding’s. The country’s main LNG shipbuilder, Hudong-Zhonghua shipbuilding
(group), is understood to limbering up for the business. It is unclear how CNOOC plans to deploy the LNG vessels. But brokers
pointed to CNOOC’s wide range of LNG import contracts — the company recently announced a free-on-board long-term deal
to buy LNG from the Novatek-led Arctic LNG 2 project in Russia, interests in 13 Chinese LNG terminals and ambitions to
extend its global reach further. Last month, CNOOC expressed its interest in hooking up Qatar’s LNG $29bn north field east
project. The state-controlled energy company, along with other Chinese entities, is under pressure to increase china’s supplies
of natural gas in pursuit of the country’s goal of being carbon Neutral by 2060. CNOOC has said it wants to boost its supply
of natural gas to account for more than 30% of its production by 2025, up from 19% today.

CHINESE RESALES OFFERED

The company’s request for offers on new LNG carriers comes as another pair of Chinese Newbuilding’s are being quietly
offered for resale. Brokers said the 174,000-cbm Mu Lan and sistership Gui Yang, which are due for delivery from Hudong-
Zhonghua in June and September respectively, are up for grabs. The pair were ordered in early 2019 as part of a huge mixed
newbuilding haul placed by CSSC (Hong Kong) shipping leasing at Chinese shipyards. They were widely seen as the first
speculative LNG orders placed by Chinese players. But brokers commented that the vessels have been constructed without
reliquefication capabilities. The two vessels are among the seven LNG ships on order at Hudong-Zhonghua, five of which are

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due for handover this year. If confirmed, the CNOOC Newbuilding’s could help restock the flagging LNG orderbook at the
Chinese yard. Aside from the CSSC shipping leasing vessels, the shipbuilder is also due to handover two floating storage and
regasification units to Dynagas this year and a single 18,600-cbm LNG bunker vessel to Mitsui OSK lines. The yard is also
building two 79,960-cbm specialized size LNG carriers for k line for delivery in 2022. Source : www.tradewindsnews.com

NEXT-GENERATION LNG CARRIERS AND ICE BREAKERS SET TO USHER

IN NEW ERA
Northern Sea Route public council chairman Sergey Frank says developing shipping in the high north is not a race. A new
breed of ice-breaking LNG carrier designed to spend more time in ice and geared for year-round operations will start moving
through the Northern Sea Route(NSR) by mid-2023. This new ARC7 fleet will be largely controlled by a Sovcomflot - Novatek
joint venture — smart LNG — and its chairman Sergey Frank, a former Sovcomflot (SCF group) chief executive who is now
non-executive chairman. Talking to tradewinds about the new fleet’s progress and his passion for the NSR, Frank also spoke
in his capacity as chairman of the Northern Sea Route public council think tank. Frank first went to the Arctic in 1977. The
region had always held huge fascination for him — a spark lit by his maritime college tutors who had served on shipping
convoys in the region during world War II. He said cargo shipped through the NSR has seen a near fivefold increase since
2016, rising from 7.5 million tonnes just before the start-up of the Yamal LNG project to 33 mt last year. The largest contributor
is LNG, followed by oil-based, mineral and transit shipments, such as towage and kit needed to build plants. He said there is
every sign — based on sanctioned projects — that it will grow again this year. But the next big expansion is likely to come in
2024 with the start-up of the Novatek-led Arctic LNG 2 project, when NSR volumes are expected to grow to 80 mt — a more
than tenfold expansion on 2016’s figures.

Frank cited four factors behind the growth. He said climate change is opening a window for safe navigation along the route.
A shorter shipping distance between the west and Asia is another strong driver. He added that advances in technology are
allowing vessels to operate safely in Arctic waters with design and equipment that is already of a far higher specification than
that deployed on commodity shipping. While the installation of infrastructure along the route is also developing “relatively fast”
and on schedule, Frank also cited the new generation of ice breakers under construction and next level satellite coverage and
onshore support bases for search and rescue as underpinning the momentum. He said the good news for shipping is that this
infrastructure will not only provide support for vessels in harsh winter conditions but potentially for new seasonal summer transit
trades, which will be attractive and affordable for existing vessels. He sees this as a more realistic scenario than companies
building specialized ARC7 ice-class fleets. Frank said the industry has already witnessed the demand for route alternatives
when the Suez Canal was blocked by the grounding of the 20,388-tEU boxship ever given (built 2018) on 23 March. He
repeatedly turned to Greek philosophy, quoting Heraclitus’ theory that everything flows and nothing stays still. Frank said NSR
transit movements will grow, explaining that it could be a very interesting channel for shipping companies from the west coasts

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of the USA and Canada, and north-west Europe, which could use the summer season to reposition vessels. He conceded
that the route might not be for everyone, adding that in the shipping community, there will always be those ready to accept
risk, those that avoid it and local specialists. But he said: “there is a space and there is a place for the Northern Sea Route
within this balanced and integrated transportation system of the 21st century.” However, he is frustrated by those who will not
consider the NSR and its potential to cut shipping distances. “It is a bit exotic that we are seriously talking about how to
populate Mars but we don’t understand a lot about what is basically a stone’s throw distance from us,” he remarked. Smart
LNG currently has 14 ARC7 vessels under construction at Russia’s Zvezda shipbuilding group. “When the next generation of
ARC7 LNG carriers and the new ice breakers come into service in 2023, we will be much better prepared to launch a year-
round navigation in the eastern sector of the NSR,” Frank said. But he added that it is important to respect the Arctic. “Every
voyage gives us more data, more facts and more understanding,” he said. “We need to make our next steps very accurately
and after a thorough analysis. We are not in the race to make achievements every next month. It is not a sport, it’s a serious
business.” Source : www.tradewindsnews.com

QATAR BETS BILLIONS ON THE FUTURE OF LNG

When It Comes To LNG, Qatar Is All In, Expanding Its Liquefaction Capacity By Over 40%, Investing In More Than 100 LNG
Carriers And Adding CCS Technology. 1997 proved to be a watershed year for Qatar when its first LNG cargo arrived in Japan
for Chubu Electric Power Co, under a 25-year sales and purchase agreement (SPA). The deal, along with another SPA with
seven other Japanese utility and gas companies signed in 1994, laid the foundation for the Middle East country’s LNG pre-
eminence on the global stage. Now, some 25 years later, the next evolution in Qatar’s LNG development is in full swing. In
March, Qatar Petroleum (QP) announced it would not renew the decades-old Qatar Gas Liquefied Natural Gas Company
Limited (QC1) joint venture with Total, ExxonMobil, Marubeni and Mitsui. The QC1 JV was responsible for developing Qatar’s
first LNG project – the source of that first cargo to Chubu Electric. An estimated capex of US$5Bn was spent for the initial
development covering the LNG plant, Ras Laffan port, offshore facilities and seven 135,000-m3, Moss-type LNG carriers – Al
Zubarah, Al Kohr, Al Rayyan, Al Wajbah, Al Wakrah, Broog and Doha. Under the structure of the JV, QP controlled a 65%
stake, with affiliates of Total and ExxonMobil each holding a 10% interest and Mitsui and Marubeni each with a 7.5% ownership.
As of 1 January 2022, the state-owned oil and gas company will take full ownership of QC1, which controls facilities with a
production capacity of approximately 10 mta of LNG. Commenting on the consolidation of ownership, Qatar Minister of State
for Energy Affairs and QP president and CEO Saad Al-Kaabi said: “This event marks the start of the next chapter in QG1’s
history, which we hope and believe will be even more successful than the last chapter, and we look forward to serving our
customers for the next three decades from this world-class asset.”

THE TOP LNG EXPORTERS

In 2020, Qatar exported 77.13M tonnes of LNG, down 0.9% year-on-year and fractionally less than Australia’s 77.77M tonnes,
which claimed the global top spot for the first time, according to GIIGNL Annual Report 2021. Other LNG exporters in 2020

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in the Middle East were Oman, with 9.76M tonnes, and UAE, with 5.71M tonnes. Year-on-year, Australia registered a healthy
uptick of 3.2%, despite the demand destruction caused by Covid-19 and outages at Prelude FLNG. Among the world’s top five
LNG exporters, only the third-place US, with LNG exports of 44.76M tonnes, scored a double-digit growth gain – a whopping
32.6% y-o-y rise. Russia exported 29.6M tonnes and Malaysia 23.85M tonnes of LNG to round out the world’s top five
exporters.

FID ON EXPANSION
Qatar’s LNG production is fed by the giant North Field, which has recoverable reserves of more than 900 trillion standard
cubic feet (SCF), or approximately 10% of the world’s known gas reserves. In February, QP took FID on the US$28.75Bn
expansion of the North Field East (NFE) project to raise the Persian Gulf country’s LNG production capacity from 77 mta to
110 mta. The decision to proceed with the investment was announced at a signing ceremony held to celebrate the execution
of the project’s key onshore engineering, procurement and construction (EPC) contract. The main scope of the EPC contract
is the construction of four mega-LNG trains with a capacity of 8M tonnes each, with associated facilities for gas treatment,
natural gas liquids recovery, as well as helium extraction and refining within Ras Laffan Industrial City. While LNG is a fossil
fuel, Qatar clearly has its eyes on the global clean energy transition. In announcing the FID, Minister Al-Kaabi noted a
significant part of investment in the expansion project that will advance decarbonisation. “One of the most important
environmental elements of the NFE project is its CO2 capture and sequestration (CCS) system, that will be integrated with our
wider CCS scheme in Ras Laffan, which – once fully operational – will be the largest of its kind in terms of capacity in the
LNG industry, and will be one of the largest ever developed anywhere in the world,” he added. Drewry Maritime Financial
Research (DMFR) assistant manager Santosh Gupta said the CCS scheme offers “a potential of added environmental, social
and corporate governance (ESG) benefits to LNG charters.” Mr Gupta added: “Ships carrying LNG cargoes from these projects
will have lower full-cycle carbon emissions.” The NFE project marks the first phase of Qatar’s LNG expansion plans and in
addition to LNG, the project will produce condensate, LPG, ethane, sulphur and helium. Production is set to begin in Q4
2025. A second phase of the project – North Field South (NFS) – is expected to further boost the LNG production capacity of
the country, from 110 mta to 126 mta. NFS will feature two new LNG trains, with a capacity of 8 mta each, and is expected
to begin production in 2027.

HISTORIC LNG NEWBUILD PROGRAMME

So how do you back the largest LNG expansion project in recent memory? The only way you can – with an historic, US$19Bn,
100+ LNG carrier newbuild programme. In March, QP issued a tender package aimed at selecting world-class shipowners for
the long-term time charter of LNG carriers to satisfy the future requirements of QP and its subsidiaries. Besides the NFE
project, the tender package managed by QP for Qatargas covers the requirements for the LNG volumes that will be produced
from the US$10Bn Golden Pass LNG export project at Sabine Pass, Texas. Affiliates of QP and ExxonMobil own Golden Pass

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LNG, which will begin exporting LNG in 2024. QP has a 70% interest and ExxonMobil the remaining 30% stake in the 16-mta
project. Furthermore, the tender includes options to replace time charters for a number of Qatar’s LNG carriers that will expire
in the next few years. Shipbuilding slots for the enormous shipbuilding programme were secured in 2020 by QP with South
Korea’s Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries (HHI) and Samsung Heavy Industries
(SHI), along with China’s Hudong-Zhonghua Shipbuilding – representing about 60 to 70% of the global LNG shipbuilding
capacity. Once shipowners are selected through the tender process, they will be assigned one of these reserved newbuilding
slots, with ship deliveries expected between 2024 and 2026. Reportedly, QP has offered shipowners four options for the firm
charter hire period: 10, 12, 15 or 20 years – with ‘options’ to extend the period up to 25 years. The newbuild LNG carriers are
expected to have two-stroke, fuel-efficient dual-fuel prime movers, either MAN Energy Solutions’ high-pressure, Diesel-cycle
ME-GI or WinGD’s low-pressure, Otto-cycle X-DF engines. MAN Energy Solutions has its own Otto-cycle engine, due out
next year, that could be in the running, too.

ATTRACTIVE LONG-TERM CHARTERS

In his analysis of the tender, Mr Gupta – DMFR assistant manager – examined shipowners’ potential returns on investment in
these ships against their cost of capital, highlighting charter lengths as a vital determining factor. “We believe charter duration
is the key difference between the new tenders and Nakilat’s ongoing time charter contracts on existing LNG ships,” said Mr
Gupta. “While the charter contract on Nakilat’s existing LNG vessels is for a period of firm 25 years with two extension options
– five years followed by another five years – the firm period for the new tender contracts is a maximum of 20 years, with an
option to extend for another five years.” Drewry believes this highlights the declining useful life of LNG vessels, due to technical
advancements and environmental regulations. “We expect long-term charter rates to be around US$75,000 per day for the
new LNG ships, which is well below the implied long-term charter rates of US$90,000 per day on Nakilat’s existing wholly
owned LNG vessels,” said Mr Gupta. “We believe lower long-term charter rates can be attributed to the comparatively smaller
size of these vessels (compared to Q-Flex and Q-Max LNG ships) and the decline in long-term LNG charter rates in the last
10 years,” he added. Despite these lower freight rates, Mr Gupta believes the 20-year time charter is the most attractive of
the options offered in the tender. Additionally, he expects shipowners with existing relationships with Qatargas will be the
“primary beneficiaries of this tender, assuming they bid.” One of those is Nakilat, which has a long-standing business
relationship with Qatargas and QP, through its JV-controlled fleet of 45 vessels. “We expect some of these joint ventures to
participate in the bidding,” said Mr Gupta. “In addition to these entities, there could be some new bidders as well, both
independent and in joint venture. We believe shipowners are looking at a bigger share of the earnings from LNG ships this
time compared with the previous time. Most of Qatar’s existing Q-Max and Q-Flex LNG ships were delivered between 2007
and 2010 and were built at Korean shipyards.” Besides Nakilat, Mr Gupta highlighted Teekay LNG as another potential bidder.
“During its recent analyst calls, the company had indicated that it would be interested in Qatar’s LNG tender. The company
has not ordered any LNG ship in the last three years and has been focusing on deleveraging its balance sheet. It believes it

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has a competitive advantage over other players, given that it does not have any new order outstanding at present. In contrast,
competitors have high borrowings related to ongoing deliveries,” he said. Since a number of LNG carriers could be built in
China, Chinese shipowners are expected to participate in the tender, according to Drewry. Additionally, China has emerged
as a leading importer of LNG and buyer of Qatar LNG. In 2020, China imported 10.72M tonnes of LNG from Qatar, almost
16% of its LNG demand during the year. Overall, China imported 68.91M tonnes of LNG, accounting for 19.3% global share –
second only to Japan’s 74.43M tonnes. Some of those LNG newbuilds could be fitted with LNT A-Box cargo-containment
technology from LNT Marine. The company is part of a joint industry project with QP, ABS, Shanghai Waigaoqiao Shipbuilding
– a subsidiary of China State Shipbuilding – and others to develop new medium and large LNG ships designs. Other signatories
to the agreement are Qatargas and affiliates of ConocoPhillips, ExxonMobil, Shell and Total. “We believe this is another step
towards QP’s strengthening relationship with Chinese shipyards,” concluded Mr Gupta. SOURCE : WWW.RIVIERAMM.COM

BP SUBSIDIARY INKS SECOND SPA WITH WOODFIBRE LNG

Woodfibre LNG, a subsidiary of Pacific Oil & Gas Ltd, has signed an LNG sales and purchase agreement (SPA) with a wholly
owned, indirect subsidiary of BP. Covering the delivery of 0.75 mta for over 15 years on a free on board basis, this is the
second SPA signed between Woodfibre LNG and BP Gas Marketing Limited (BPGM), increasing their total LNG offtake to 1.5
mta – over 70% of Woodfibre LNG’s future annual production. Being developed on the former site of a pulp mill about 70 km
north of Vancouver, British Columbia, Canada, Woodfibre LNG would have two trains with a nameplate capacity of 2.1 mta
and storage capacity for 250,000 m3 of LNG. Powered by hydroelectric power, Woodfibre LNG’s electric drive turbines are
expected to significantly reduce the total greenhouse gas emissions of the LNG project. “Forward-looking companies like BP
are turning to projects like ours for sustainable, stable gas that will supply a clean energy mix,” said Pacific Oil & Gas president
Ratnesh Bedi. “We look forward to working with BPGM to deliver Canadian natural gas from one of the lowest carbon footprint
LNG facilities in the world and help advance the climate goals of growing economies as they phase away from coal, lower
their emissions, and meet Net-zero targets.” Added Woodfibre LNG president Ron Bailey, “The use of renewable energy for
e-drive power places Woodfibre – and Squamish – at the forefront of the world’s clean energy transition.” FID on the US$1.3Bn
project is expected this year. SOURCE : WWW.RIVIERAMM.COM

US$45M LNG BUNKER VESSEL ORDERED FOR MEDITERRANEAN

Italy’s Fratelli Cosulich Group has ordered an LNG bunkering vessel from China’s CIMC SOE shipyard for operation in the
Mediterranean with a capacity of over 8,000 m3 of LNG and 500 m3 of marine gasoil, the new LNG bunker vessel (LNGBV)
will have a cargo management system and an LNG sub-cooling system designed and supplied by Wärtsilä. Environmental
impact and cargo losses will be reduced by boil off gas management technologies. Propulsion will be supplied by azimuth
thrusters, providing mano durability in port areas. With an approximate price tag of US$45M for construction, the vessel is
backed by financing from the Fratelli Cosulich Group and a pool of financial institutions composed of BPER Banca, Banca
Popolare di Sondrio, Cassa Depositi e Prestiti, with insurance coverage provided by SACE Simest with ’Garanzia Green.’ Since

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it supports the decarbonization of maritime transport in the Mediterranean Sea, the LNG bunkering project could receiving
further support through a grant of €4.5M (US$5.5M) from the European Union under the Connecting Europe Facility (CEF)
programme. PwC advised Fratelli Cosulich during the process of applying for the CEF blending call facility 2019. Operating in
the marine fuel sector globally for over 50 years, the group has operational experience in the LNG sector through its subsidiary
ECOS, which manages FSRU Toscana off the Tuscan coast. When it is delivered by CIMC SOE in 2023, the vessel will be
managed by Fratelli Cosulich LNG. Commenting on the order for the LNGBV, honorary group president Andrea Cosulich said
the group “acted proactively” to provide refueling coverage in the Mediterranean, supporting the surge in new LNG-fuelled
ships “equipped with alternative propulsion, especially in the field of passenger ships. Our group will be ready to offer its
services with cutting-edge solutions and in line with the evolution of technology itself.” Italy continues to invest in LNG bunkering
and small-scale infrastructure to bolster its decarbonization efforts. Ravenna Knutsen, a midsized LNG carrier, was recently
delivered by South Korea’s Hyundai Heavy Industries to support the new ssLNG terminal in the Port of Ravenna, set to open
later this year. There are currently 31 LNG bunker vessels in operation globally, according to DNV’s Alternative Fuel Insights.
This latest contract would grow the orderbook to 21 vessels under construction. SOURCE : WWW.RIVIERAMM.COM

GAIL SEEN GAINING FROM SPOT LNG SURGE, CGDS INSULATED

As Financial Express reported earlier, experts pointed that the price surge may reduce natural gas imports as price-sensitive
consumers in the power and fertilizer sectors are likely to refrain from using the commodity and switch to alternate fuels and
feedstocks. The current surge in the prices of Asian spot liquefied natural gas (LNG) seen to improve marketing margins for
Gail, while other gas utilities such as Gujarat Gas (GGL), Mahanagar Gas (MGL) and Indraprastha Gas (IGL) can offset the
impact of rising prices owing to their lower exposure to spot markets and increase in supply prices. Asian spot LNG price is
up 72% from low of $5.6/ million british thermal unit (mbtu) in early March to the current level of $9.65/mbtu as severe winter
depleted gas inventories in North Asia and Europe leading to competition for LNG supplies. From the lows of $2/mbtu recorded
in may 2020, spot LNG prices increased to $10.7/mbtu on an average in December, spiraling to $18.5/mbtu in January as
severe winter in northeast Asia raised demand. Analysts at ICICI Securities pointed that steeper rise in spot LNG prices
compared with the price of gas imported from us (henry hub) has meant Gail can sell its us LNG at higher rates. Gail usually
sells about 10-12% of its us LNG cargoes at spot LNG price in the second half of every financial year. The agency estimates
Gails FY22 gas marketing earnings before interest, taxes, depreciation and Amortization at `4,940 crore if ten cargoes are
assumed to be sold at spot LNG prices. Utilities such as MGL and IGL will likely remain largely unaffected by the price surge
as spot LNG constitute only 3-12% of their overall gas sourcing. Though spot LNG constitutes about 60% of industrial gas
sourcing for GGL, analysts at Jefferies remain comfortable on its margins stating that the 15-35% price hike taken in December-
January “appears to factor in a similar spot LNG price”. The country imports about 50% of its gas requirement, and the
procurement is distributed between long term and spot market contracts, depending on the price signals. LNG imports fell 3.1%

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annually to 32,855 million metric standard cubic metre in fy21 while the value of LNG imports dropped 22% annually to $7.4
billion, as spot rates averaged only $2.6/mbtu in the first half of the fiscal. Source : www.financialexpress.com

PROJECT SPOTLIGHT : RIO GRANDE LNG

Of three major planned new LNG developments in the Brownsville area, it was announced in March that
Annova LNG’s 6.5mn mt/yr project had fallen by the wayside, apparently unable to secure offtake
agreements which would have allowed the developer to borrow funds to build. This leaves the 4mn mt/yr
Texas LNG, which is targeting an FID in early 2022, and NextDecade’s much larger 27mn mt/yr Rio
Grande project, but only the latter has managed to secure any offtake
agreements to date. Moreover, it too has suffered setbacks and is
having to adapt to changing market preferences for LNG with a lower
carbon footprint. The project, which is located at the relatively
uncongested Brownsville deepwater port, has a commitment from
Anglo-Dutch major Shell to take 2mn mt/yr of LNG, but an additional
agreement with European utility Engie for 2.9mn mt/yr fell through last
year, owing to concern over the project’s emissions profile, according
to reports at the time. The sales and purchase agreement with Shell
was negotiated on a free on board basis with full destination flexibility
and is linked 75% to the price of Brent oil and 25% to domestic US gas
price indices, including Henry Hub. The first phase of the project is expected to comprise two 5.97mn mt/yr trains, leaving
NextDecade some way short, for the moment, in terms of agreed offtake. But the project has attracted backers beyond Shell.
In October 2019, Abu Dhabi-based Mubadala Investment Company reached an agreement to purchase $50mn of NextDecade’s
common stock in a private placement at a price of $6.27/share. The deal gives Mubadala the opportunity to contribute a
certain amount of project-level capital once the FID is taken. NextDecade also scrapped plans for a 16.5mn mt/yr LNG plant
at Galveston Bay in January, following advice from the US Army Corps of Engineers that part of the project site falls under a
special navigation designation, which would require Congressional approval to remove. As a result, the company remains
focused on Rio Grande and still hopes to take a final investment decision this year on the project’s first two-train phase.

EPC CONTRACTS SECURED

NextDecade in March extended agreements with contractor Bechtel, keeping the pricing terms in place until the end of the
year and extending the validity of the engineering, procurement and construction (EPC) contracts until July 31, 2022. This
effectively buys more time to seal offtake agreements. The EPC contracts were signed in May 2019. The fully wrapped lump-
sum turnkey EPC contracts include cost, schedule, and performance guarantees. In addition to two or three liquefaction trains,

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phase one consists of two 180,000-m³ storage tanks and two marine berths at a total cost of $9.57bn. The first two trains
are expected to generate an EPC cost of about $543/mt. The EPC contracts include full site preparation activities, which are
expected to further reduce the costs per ton of the remaining trains to below the first phase cost of $543/mt. To achieve such
low-cost production, Next Decade will use proven technologies, including Air Products AP-C3MR liquefaction and Baker
Hughes rotating equipment. Electrical engineering company ABB will provide integrated automation and electrical solutions to
optimise plant performance and efficiency. As part of the EPC deal, Bechtel undertook limited notice-to-proceed activities from
June 1, 2019 to January 1, 2020 and agreed to accept up to $15mn in NextDecade common stock in consideration for certain
activities. NextDecade is moving to make its project more environmentally sustainable in order to jump to the front of the queue

in the

LNG PROJECT BEAUTY PAGEANT.

The company has formed a subsidiary called NEXT Carbon Solutions to develop what it says will be one of the largest carbon
capture and storage (CCS) facilities in North America at the Rio Grande site. It estimates that it will be able to reduce
CO2 emissions from the plant by more than 90% without major design changes and that, although this represents a significant
additional cost to the $15bn project, it would be 80% cheaper building the CCS capacity now rather than retrofitting it later.
The idea comes at an interesting time for CCS development and commercialisation in the US, which has more experience of
CO2 management than is often recognised, owing to the extensive use of CO2 in enhanced oil recovery (EOR). There are
currently 10 CCS facilities in the US with a combined capture capacity of more than 25mn mt/yr. The country has over 100
sites where EOR is underway using CO2 and more than 8,000 km of CO2 pipelines. CCS is also a priority for US oil majors
Chevron and ExxonMobil in their strategies to reduce CO2 emissions from oil and gas operations. In addition, the regulatory
environment has become more supportive of CCS in recent years. Most significantly, the US has a tax credit which currently
provides $18/tCO2 for EOR and $29/tCO2 for dedicated geological storage, rising linearly to $35/tCO2 and
$50/tCO2 respectively by 2026. Projects have to commence construction before 2024 to benefit from the credit.

FEED GAS
NextDecade has a memorandum of understanding (MoU) with Canada’s Enbridge, dating from September 2019, to construct
a pipeline to feed gas to the LNG plant, if it goes ahead. The Rio Bravo pipeline in southern Texas would flow up to 4.5bn
ft3 /d of gas to Rio Grande from the Agua Dulce area. Rio Bravo consists of twin pipelines, each rated at 2.25bn ft3 /d, which
will each deliver gas to three of Rio Grande’s eventual six liquefaction trains. The 220-km pipelines lie within the state borders
of Texas and therefore do not need federal regulatory approval. The Agua Dulce area benefits from eight existing pipelines
connecting it to the Waha gas hub with total capacity of 6.7bn ft 3 /d, while three further pipelines with combined capacity of

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4.7bn ft3 /d have also been sanctioned. This will allow the Agua Dulce area to attract significant volumes of low-cost natural
gas from the Permian Basin and Eagle Ford shale. The ability to acquire what is seen as essentially surplus gas from liquids
production in the Permian Basin and Eagle Ford is a key part of the economic case for Rio Grande. Rather than pay Henry
Hub prices, gas at Agua Dulce is expected to cost around $0.5/mn Btu, or lower, according to some estimates. Although the
collapse of oil demand in 2020, owing to the impact of the Covid-19 pandemic on transport, saw both US oil and gas
production fall, both started to recover in the second half of last year. With the OPEC+ group retaining tough output restrictions,
despite higher oil prices, US shale producers have a window of opportunity to boost output and capture market share. And
while many US shale companies say they are focusing on capital discipline as opposed to output growth in the current
environment, both the US oil and gas rig counts have jumped since November, suggesting some producers cannot resist the
lure of higher prices, which, in turn, is likely to ensure a steady supply of cheap gas in the Agua Dulce area. SOURCE :
WWW.NATURALGASWORLD.COM

KHI DEVELOPS WORLD’S LARGEST VOLUME CARGO STORAGE

FACILITY FOR LARGE LIQUEFIED HYDROGEN CARRIERS
Kawasaki Heavy Industries has developed
the world’s largest volume (40,000m 3
class/1 unit) cargo storage facility (CCS:
cargo containment system) to be mounted
on a large liquefied hydrogen carrier and has
approved the basic design AiP (Approval in
Principle). It was acquired from the Japan
Maritime Association. The cargo storage
facility that acquired AiP this time is for
transporting a large amount of cryogenic
liquefied hydrogen whose volume has been reduced to 1/800 by cooling to minus 253°C and is used as a marine liquefied
hydrogen cargo storage facility. It is the largest volume in the world. This equipment is a new type of heat insulation developed
by utilizing the design/construction technology and safety technology of the 1,250m 3 type liquefied hydrogen carrier “Suiso
Frontia” that we built for the first time in the world. It is a cargo storage facility with a structure. This AiP is based on the IGC
code , the provisional recommendation for bulk transportation of liquefied hydrogen by the International Maritime Organization
,the ship classification rules, and the risk assessment results using the HAZID (Hazard Identification Study) analysis method .
It is given by the main features of this cargo storage facility are as follows:
1. In order to realize mass transportation of cryogenic liquefied hydrogen, the tank volume is the same as that of a large
LNG carrier.

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 2. A self-supporting system independent of the hull has been adopted to realize a structure that flexibly responds to heat
shrinkage during the loading of liquefied hydrogen at extremely low temperatures.
3. In order to reduce the boil-off gas (BOG) generated by the invading heat from the outside, a newly developed high-
performance heat insulation system is adopted.
4. Boil-off gas naturally generated from cargo storage equipment is effectively used as propulsion fuel for ships,
contributing to the reduction of carbon dioxide emissions related to liquefied hydrogen transportation.
We are developing this cargo storage facility as part of the NEDO subsidy project, and are currently putting a 160,000m 3
type large liquefied hydrogen carrier equipped with four of these cargo storage facilities into practical use in the mid- 2020s.
We are developing for. As the early realization of carbon neutrality is required all over the world, we have realized mass
transportation of liquefied hydrogen, which is expected to increase in demand as clean energy, with this large liquefied hydrogen
carrier, and promoted decarbonization by popularizing hydrogen energy. Contribute to the affluent life of people around the
world and the future of the global environment.
Overview of cargo storage equipment : Tank method: Independent tank , Diameter: About 43m, Volume: About 40,000m
3, Large liquefied hydrogen carrier (cargo storage volume: 40,000m 3 x 4 units installed image) Source : www.khi.co.jp

GROUPS EXTEND METHANE STANDARD TO GLOBAL LNG SECTOR

In the wake of the United Nations Environment Programme’s publication earlier this month of a new report on global methane
emissions, two established certification organisations said May 13 they will collaborate to help reduce methane emissions from
the production and transport of liquefied natural gas. MiQ, the independent and not-for-profit partnership between RMI and
SYSTEMIQ, has already developed a global certification model to incentivise methane abatement across the oil and gas sector,
starting with upstream production. US producers like EQT and Northeast Natural Energy have already adopted standards
developed by MiQ. Now MiQ will extend its standard to the LNG value chain through a collaboration with Carbon Limits, a
diverse group of engineers, economists and policy experts with strong expertise and experience in mitigating greenhouse gas
(GHG) emissions in the oil and gas sector. The move will create the first independently audited certification standard for LNG
this summer, aiming to tackle the environmental impacts of methane emissions head-on, MiQ said. Certification will be done
on an asset basis to ensure accuracy, offering certainty on environmental performance. “We need to redefine our energy
systems so that they work in lockstep with our global environmental goals, and the development of this cutting-edge standard
represents a tangible leap forward,” said Georges Tijbosch, MiQ’s senior advisor. “From early summer, LNG producers and
buyers will be given the tools to provide the transparency currently missing in the market, helping to pick up the pace in our
fight against climate change and taking us one step closer to Net-zero.” Equivalent to eight times the CO2 emissions from
the global aviation sector in a normal year, the impact of global methane emissions from oil and gas is significant, and with
oil and gas expected to remain part of the energy mix beyond 2030, a global standard for measuring methane marks a critical
step in its abatement. Achieving 0.2% methane emissions performance, Carbon Limits says, would have a “huge” impact on

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global annual GHG emissions – equivalent to taking 1.2bn cars off the road by 2030. “Methane emissions from oil and gas
installations are hard to trace and quantify with large discrepancies in estimates as a result,” Carbon Limits managing director
Stephanie Saunier said. “Robust monitoring, reporting and verification frameworks are needed, established through an
independent and science-based process.” The MiQ standard, which is audited by a third party, assesses methane emissions
performance based on three metrics – methane intensity, company practices, and methane detection technology deployment –
and grades that performance across a sliding A-F scale which ensures transparency and makes it easy for buyers to understand
the environmental performance of the LNG they are buying. SOURCE : WWW.NATURALGASWORLD.COM

FINANCING DEAL REACHED ON EL SALVADORLNG POWER PROJECT

A division of BW Group, an oil and gas producer, said May 12 its partners had closed on a financing deal to support an LNG-
to-power project in El Salvador. BW LNG said it closed on a $128.3mn financial deal with sustainable energy developer
Invenergy and IDB Invest, part of the Inter-American Development Bank Group, to back a floating storage and regasification
unit (FSRU) for the greater Energia del Pacifico (EDP) LNG-to-power project. “This is the region's first FSRU, which will be
permanently moored at the Port of Acajutla, Sonsonate, El Salvador,” the companies said. “Invenergy and BW LNG will jointly
commission, operate and maintain the FSRU.” The planned FSRU facility has a maximum design capacity of 280mn ft3 /d.
The regasified LNG will be piped from offshore to a 378 MW natural gas-fired power plant. Once completed in 2022, the
parties involved estimate the facility will meet about 30% of the nation’s demand for cleaner fuels. "The close of financing for
the FSRU represents a significant step forward in the completion of the transformational EDP project, the foundation for El
Salvador's clean energy future," Meghan Schultz, the senior vice president for finance and capital markets at Invenergy, said.
The EDP project is comprised of the 378-MW natural gas-fired power plant, the FSRU and a 44-km electric transmission line
that will connect to El Salvador’s Central American Electrical Interconnection System. SOURCE : WWW.NATURALGASWORLD.COM

SINGAPORE LNG TO EVALUATE GREEN MODULAR DATA CENTRE

SYSTEM
SINGAPORE LNG Corp (SLNG), the National Supercomputing Centre (NSCC) SINGAPORE, the National University of
SINGAPORE (NUS) and state-owned consultancy Surbana Jurong (SJ) have signed a memorandum of understanding to
explore the development of a proof-of-value (POV) for a green modular data centre system, SLNG said on May 11. “The
collaboration is in line with the global search for sustainable solutions to meet the growing demands for data centre rack space,
as SINGAPORE accelerates its digital transformation,” SLNG said. The centre would be the first-of-its-kind in SINGAPORE if
proven feasible. The concept is to install approximately one petaflop of NSCC’s supercomputer at the SINGAPORE LNG
terminal on Jurong Island and use the terminal’s stable and continuous chilled seawater supply to reduce the heat generated.
The chilled seawater is discharged as part of the terminal’s LNG regasification process that ensures a steady send-out of
natural gas for the country’s power generation needs. The project will also explore powering the prototype system with renewable
solar energy or green power backup using hydrogen fuel cell, instead of a diesel power generation set, SLNG said. If the

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concept proves successful, the system has the potential to save 0.2 MW of power. “While SLNG remains committed to fulfilling
and even exceeding our energy security mandate, we are also keen to do our part, especially where we can leverage on our
LNG expertise and terminal infrastructure, to help catalyse new possibilities for a more sustainable energy future,” said Tan
Soo Koong, CEO, SLNG. Tan Tin Wee, CEO of NSCC said that SLNG produces a huge amount of cold energy which is
partially discharged as chilled seawater. “We have the opportunity to tap on this excess cooling source instead of using more
electricity to help cool our supercomputer and data centres,” he said. “If successful, this prototype will demonstrate the value
of industrial symbiosis, where one industry's waste can be converted into another industry’s resource. By combining this with
renewable energy such as solar power from photovoltaic farms, the novel concept could be a potential model for future green
sustainable supercomputer data centres in SINGAPORE.” Additionally, NUS will contribute its expertise in liquid cooling
technology for the POV, and Surbana Jurong will leverage its engineering design expertise in new and renewable energies,
low carbon technologies, cold energy harnessing and smart grid for the project. SOURCE : WWW.NATURALGASWORLD.COM

US LNG EXPORTS EXPECTED TO REMAIN FLAT NEXT YEAR

The US Energy Information Administration (EIA) reported May 11 that the lack of new export capacity means there will be no
change in US LNG exports next year. EIA in its latest monthly market report forecasts LNG exports will average 9.2bn ft3 /d
both this year and next. “Flat LNG exports in 2022 reflect our expectation that limited new export capacity will come online
during the forecast period,” the report read. US LNG exports last month averaged 9.2bn ft3 /d, the most since the US started
exports in 2016. May levels, however, are expected to reach only 8.6bn ft3 /d before moving back toward 9bn ft3 /d to meet
summer demand in the Asia and European markets. For the domestic market, EIA expects natural gas consumption will
average 82.6bn ft3 /d this year, down about 0.7% from last year. Higher prices for natural gas mean some power generators
will adopt coal instead. Gas consumption next year is forecast to average 82.5bn ft 3 /d. Total US natural gas production is
expected to average 91.1bn ft3 /d this year, a 0.3% decline from last year, but increase to 93.1bn ft3 /d in 2021. The decline
for this year is largely a result of the impact that cold February weather had on production centers in Texas. The expected
increase in production next year is a reflection of higher commodity prices relative to 2020. SOURCE : WWW.NATURALGASWORLD.COM

CHINACIMC TO BUILD LNG BUNKER VESSEL FOR FRATELLI COSULICH

Italian shipping company Fratelli Cosulich has placed an order for an LNG bunkering vessel at
China's CIMC SinoPacific Offshore & Engineering shipyard, it said on May 10. The vessel with approximately 5,300 metric
tons of dwt will be able to transport over 8,000 m3 of LNG and 500 m3 of marine gas oil for bunkering. It will be equipped
with Wartsila propulsion and power generation systems. Its investment cost is $45mn, the company said. “This important
investment reaffirms the group’s commitment to safeguard the environment and to operate with absolute safety,” the company
said. “Our efforts are focused on decreasing our footprint, and on contributing to the infrastructure for the entire shipping and

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logistics sector.” Fratelli Cosulich said that since the project is contributing to the decarbonisation of maritime transport by
deploying LNG bunkering solutions in the Mediterranean Sea, it may be awarded a grant of €4.5mn ($5.6mn) by the EU under
the Connecting Europe Facility programme. The vessel will be managed by the recently established
Fratelli Cosulich LNG. Delivery of the vessel is expected in the summer of 2023. SOURCE : WWW.NATURALGASWORLD.COM

CNOOC TO EXPAND ZHUHAI LNG IMPORT TERMINAL

The second phase of CNOOC Gas and Power’s 3.5mn metric tons/year Zhuhai LNG terminal has been approved by
the Guangdong Provincial Development and Reform Commission, the company said on May 7. In the second phase, CNOOC
Gas and Power will double the processing capacity of the terminal to 7mn mt/year. The company will add five storage tanks,
each with a capacity of 270,000 m3 . Work is expected to start in June and the second phase is likely to come online in
December 2023, CNOOC Gas and Power said. The terminal, located in Guangdong province, at present has three storage
tanks, each with a capacity of 160,000 m3 . The terminal has imported over 13mn mt of LNG since it became operational in
November 2014. It processed over 900,000 mt of LNG in the three months to March 31, 2021 (Q1), up 89% year/year,
CNOOC Gas and Power said last month. The terminal supplies gas to cities of Guangzhou, Hong Kong, Foshan, Zhuhai,
Zhongshan, Macao and Jiangmen. CNOOC Gas and Power, a unit of state-run CNOOC, operates nine LNG import terminals
at Tianjin, Shanghai, Ningbo, Putian, Yuedong, Dapeng, Zhuhai, Hainan and Shenzhen. SOURCE : WWW.NATURALGASWORLD.COM

MYANMAR APPROVES $2.5BN GAS POWER PROJECT

Myanmar's military junta has approved a gas-fired power plant project that will cost $2.5bn, the country's Directorate of
Investment and Company Administration (DICA) said on May 7. This is part of the $2.8bn worth of projects that the junta,
which seized power in February, has sanctioned. The electricity generated by the power plant will be sold domestically, DICA
said. It did not disclose which company will be setting up the power plant. The country's first gas-fired power plant came
online in June last year. The plant is operated by CNTIC VPower – an equal joint venture between China National Technical
Import Export Corp and VPower Group. There are a number of other companies planning to develop gas-fired power projects
in Myanmar. Bangkok-listed TTCL Public Co signed a power purchase agreement earlier this year with Myanmar state-run
Electric Power Generation Enterprise for the 388-MW gas to power project in the Yangon region. TTCL is developing the
project along with Japan’s Sojitz Corp, Shikoku Electric Power Co, and Inpex Corp. It is due online in 2024. Another Thai
firm, PTTEP in December 2020 secured the right from the government to develop a $2bn gas-to-power project in the country.
Japan’s Marubeni Corporation, with Sumitomo Corporation, Mitsui, and Eden Group, has also been granted permission to
develop a gas-fired power plant in the Thilawa region of Myanmar. SOURCE : WWW.NATURALGASWORLD.COM

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AUSTRALIAN LNG EXPORTS DECLINE IN APRIL
Australian LNG exports in April were 6.9mn metric tons (mt), down 4.1% month/month, energy consultancy Energy Quest said
on may 13. The country exported a record 7.2mn mt of LNG in March. Exports to china have not been impacted despite rising
trade tensions between the two countries. Australian projects delivered 43 cargoes to china in April, nearly a record, after
delivering 29 in march and 40 in April 2020, energy quest said. However, Bloomberg reported earlier this week that second-
tier Chinese LNG importers had been ordered to stop procurement of the fuel from Australia. Energy quest said that lack of
gas for LNG projects is a bigger threat to LNG exports than anything china might do. "in particular production from the north
west shelf is soon expected to start declining and the same is likely with some of the Queensland projects later this decade,"
it added. Source : www.naturalgasworld.com

LNG PRICES RISE AS OTHER MARKETS UNNERVED BY GASOLINE

LINES IN US AND 800 BARGES BLOCKED ON MISSISSIPPI
Cargoes of Liquefied Natural Gas were still the subject of high prices in North Asia and Europe as the Japan-Korea marker
for spot cargoes hit the $10 per million british thermal units mark while European benchmark LNG values increased to their
highest in 2021. The total number of LNG shipments being lifted this week in the pacific basin, the Atlantic basin and the Arab
Gulf Region was expected to be around 103, slightly lower than last week. Spot market buyers were still active in Asia while
European prices rose on lower stocks and colder weather. Demand was also solid in North Asia with the June JKM spot cargo
price increasing to $9.125 per MMbtu, up from last week’s $9.060 per MMbtu.

The July JKM cargo quote jumped even higher to $10.225 per MMbtu compared with last week’s $9.775 per MMbtu, while the
August JKM was quoted at $10.275 per MMbtu versus $9.775 per MMbtu a week ago. The UK national balancing point natural
gas price and the continental European benchmark, the Dutch title transfer facility (TTF) price, reached their higher levels so
far in 2021. The NBP increased again to $9.40 per MMbtu on May 14, up from last week’s $8.65 per MMbtu because of
wholesale gas storage demand and unseasonal weather. The Dutch TTF also moved up to the equivalent of $9.35 per MMbtu
versus $8.55 per MMbtu a week ago. In the spot delivered ex-ship (des) LNG cargoes market for India and the middle east
region, the west India marker (wim) price edged higher to $8.552 per MMbtu for June, up from $8.486 a week ago. India
continued to be hit by a covid-19 crisis in major cities and in the countryside, though only some state lockdowns were in force
and fuel prices were up. The July west India marker price jumped to $9.550 per MMbtu from $8.533 per MMbtu a week ago
and August hit the $9.600 per MMbtu mark, also from $8.533 per MMbtu, on anticipated medium-term demand.

These India-Gulf prices cover LNG spot physical shipments delivered ex-ship (des) into ports in India, Dubai and Kuwait and
covering cargoes in the range of 135,000-175,000 cubic metres capacity. In the oil and commodities markets, analysts in
Europe and asia said a vision emerged of “Venezuela USA” this week with lines at gasoline pumps and a back-up of almost
800 barges on the mississippi river because cracks were discovered on a bridge near Memphis in Tennessee and closed the

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waterway that is crucial to us oil, grain and commodities exports and supplies. The north sea brent crude oil price dropped 3
percent to $66.81 per barrel on may 14, down from $68.53 per barrel a week ago as us energy and export woes managed to
offset actual conflict in the middle east in fighting between israel and the hamas group in gaza. At current brent oil price levels,
the long-term, crude-linked LNG price was at around $8.95 per MMbtu.
USA Data
The US exported 21 LNG cargoes in the past week, one less than the previous week, with a combined LNG-carrying capacity
of 74 billion cubic feet, according to the us energy information administration. Seven cargoes were lifted from the Sabine pass
plant in Louisiana, four each from corpus Christi and the freeport facility in Texas, three from the Cameron plan in Louisiana,
two from cove point in Maryland and one from Elba island in Georgia. “Natural Gas deliveries to USA LNG export facilities
(LNG pipeline receipts) averaged 11.0 billion cubic feet per day, about the same level as last week,” added the EIA. The EIA
noted that us pipeline natural gas exports to Mexico increased by 4.7 percent to 6.2 BCF per day. USA Gulf coast LNG
futures prices jumped compared with last week and showed continued demand for cargoes. The June GCL FOB price increased
to $7.758 per MMbtu, up from $7.390 per MMbtu. The July US FOB cargo quote was $7.700 per MMbtu versus $7.362 per
MMbtu last week. The August gcl FOB was quoted at $7.742 per MMbtu versus last week’s $7.378 per MMbtu. The us Henry
Hub benchmark spot natural gas price declined on the week to $2.87 per MMbtu compared with $2.89 per MMbtu a week
ago. The New York mercantile exchange, front-month natural gas futures price edged higher to $2.970 per MMbtu versus
$2.930 per MMbtu. USA Net injections into storage totaled 71 BCF for the week compared with the five-year (2016-2020)
average Net injections of 82 BCF and last year's Net injections of 104 BCF during the same week. “working natural gas stocks
totaled 2,029 BCF, which is 72 BCF lower than the five-year average and 378 BCF lower than last year at this time,” said
the EIA. The dollar, the base currency in energy, weakened 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 14 down on €0.83 last week.
Global liftings
In the LNG shipping market, data showed that there would be around 103 cargo liftings in the week through Sunday May 16
from producing nations in the pacific basin, the Atlantic basin and the Arab Gulf region. This is lower than the previous week's
108 liftings. The pacific basin will account for around 44 shipments in the week to may 16, including 20 from Australia, around
10 from Malaysia and five from Indonesia, and at one or two each from several other plants including Papua new guinea,
Brunei, the pampa melchorita facility on the pacific coast of Peru. Around four liftings are scheduled from Gazprom’s Sakhalin
island plant in the Russian far east. In the Atlantic basin there are scheduled to about 34 liftings, including 16 departures from
the us in the week through May 16. Five shipments are departing from Nigeria, four from Algeria, two from Trinidad, one from
equatorial guinea one from Egypt’s Damietta plant and seven from the Russian arctic Yamal plant. A further 25 cargoes were
scheduled to depart from the Arab Gulf region in the week through may 16, mostly from Qatar but also including four headed
for asia from oman and three from abu dhabi’s das island plant in the United Arab Emirates. Shipping charter rates for LNG

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carriers in the spot market were still at high levels of up to $77,000 per day for west of suez and $72,000 per day east of
suez, according to London brokerages.
UK market data
Natural gas pipeline supply to the UK market dropped on the morning of may 14. Data from national grid showed that
instantaneous pipeline flows from the north sea declined to 219.60 million cubic meters of supply from 233.14 MCM of flows
in the same period last week. That’s as UK domestic gas demand also dropped to 187.75 MCM of flows compared with last
week’s 262.69 MCM. Supply flows on may 14 at gas grid connections near the UK’s two LNG terminals at Milford haven in
wales, south hook LNG and dragon LNG, declined to 26.94 MCM (28.15 MCM may 7). The pipeline flows near the isle of
grain LNG terminal on the shore of the Thames Medway estuary, southeast of London, rose to 17.59 MCM (8.16 MCM). North
sea pipeline gas supply flowing to the st Fergus terminal in northern Scotland increased to 35.03 MCM (28.15 MCM). Flows
declined to 30.55 (41.52 MCM) to terminals at bacton in Norfolk on the east coast of England as one facility was closed.
The easington terminal on the Yorkshire coast was receiving lower flows of 70.90 MCM (77.59 MCM) while flows to the
Teesside terminal rose to 25.25 MCM (12.98 MCM). National grid data also showed that through may 12 natural gas provided
the main proportion of the UK’s energy mix for power generation, amounting to 46.6 percent of the total. Other UK power
sources on that date comprised nuclear 13.7 percent, imports 12.0 percent, wind 11.4 percent, biomass (wood) 7.2 percent,
solar 5.6 percent, coal 1.8 percent and hydro 1.7 percent.
Pipeline flows To EU
Pipeline natural gas flows from Norway on the morning of may 14 to the European union increased. Supply levels were up for
main pipelines to Germany, Belgium and France. The flows to the German terminal at emden increased to 81.9 MCM compared
with 79.7 MCM at the same time last week, while pipeline flows through Germany’s dornum terminal rose to 51.9 MCM from
last week’s 48.2 MCM. The Zeebrugge (Belgium) flow was also higher at 34.0 MCM (25.9 MCM), while pipeline flows to
Dunkirk (France) reached 41.7 MCM (32.8 MCM), according to data from the Norwegian pipeline Network and terminals
operator gassco. The Norwegian aggregated (including UK) exit flows on May 14 rose to 297.1 MCM compared with 286.3
MCM of flows a week ago. Source : www.LNGjournal.com

GAZPROM EXPECTS RUSSIAN NATURAL GAS SUPPLY RECORDS IN

NEXT WINTER SEASON BACKED BY STORAGE PLANS
Gazprom, the Russian natural gas company and pipeline and LNG exporter to Europe and Asia, has completed measures to
ensure uninterrupted domestic and foreign gas deliveries with adequate underground working gas stockpiles for the end of the
year when monthly supplies are expected to hit record levels. “Gazprom’s management committee has ordered stockpiles of
at least 72.63 billion cubic meters working gas inventories in UGS facilities in Russia and increased their potential maximum
daily deliverability to 847.9 million cubic metre, which would reach new record highs,” said Gazprom. “This should ensure the
reliable operation of the unified gas supply system (ugss) in the 2021-2022 autumn-winter period,” added the company. The
working gas inventories in the neighboring republic of Belarus will amount to 1.09 BCM Russian underground storage managers

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were set to perform scheduled preventive maintenance and repairs at gas production, transmission, underground storage and
processing facilities, as well as to prepare transport and specialized equipment for winter operations.

The report noted that lessons had been learnt from the autumn-winter period of 2020–2021, which was marked by lengthy
cold spells in the area covered by Russia’s UGSS. Air temperature had stayed below the climate normal for long periods of
time. “The company confidently passed through the period of peak demand and completely fulfilled its obligations both in
Russia and abroad,” stated Gazprom. Gazprom has supplied pipeline gas to china for more than a year under the “power of
Siberia” project and also supplies japan and south Korea with LNG cargoes from the Sakhalin plant in the Russian far east.
Gazprom said the from October 2020 to march 2021, gas supplies to domestic consumers via Gazprom’s gas transmission
system grew by 8.9 percent against the autumn-winter period of 2019-2020.Gas demand from foreign customers had also
substantially increased with export volumes rising 14.8 percent in the period from October to march. In October 2020 and
January 2021, Gazprom recorded new all-time high figures of monthly gas supply at 17.4 bcm and 19.5 bcm respectively.
“Highly reliable supplies are to a great extent secured by the work of underground gas storage facilities in Russia,” said
Gazprom. “During the heating season, 60.6 bcm of gas was withdrawn from the ugss facilities, which is the record-high
volume withdrawn in the entire history of Russia’s gas industry,” said Gazprom. source : www.LNGjournal.com

TEEKAY LNG BOOSTS PROFITS AND VOYAGE REVENUES AND

BENEFITS FROM MARCH-APRIL CHARTER DEMAND
Teekay LNG partners, whose gas group units own, charter or have stakes in 77 vessels, including 47 liquefied natural gas
carriers and 30 liquefied petroleum gas or multi-gas vessels, reported a first-quarter Net profit following a loss in the year-
ago period as voyage revenues also jumped. First-quarter Net income attributable to partners and preferred unit holders swung
to a profit of $87.59 million from a loss of $32.90m in the prior-year period. Voyage revenues increased 9 percent in the first
quarter to $152.80m versus the $139.88m in the in the same three months of 2020. “Results were positively impacted by
operational claims under the partnership’s charter contracts, lower repairs and maintenance expenses and lower Net interest
expense during the first quarter of 2021,” said the company. “These increases were partially offset by redeployment of certain
LNG carriers at lower rates and unscheduled off-hire for repairs,” added Teekay. Teekay said it secured three LNG charters
during March and April 2021, increasing the partnership's LNG fleet to 98 percent fixed for the remainder of 2021, and 89
percent fixed for 2022. In its chartering activities, the partnership in April 2021 secured a fixed-rate charter contract for the
“oak spirit” LNG carrier, which is expected to commence in august or September 2021, for a period of one-year. In March
2021, a one-year, spot market-linked charter contract, with a one-year, fixed-rate option was arranged for the “creole spirit”
LNG vessel. Both of the vessels are modern, next generation, large LNG carriers with two-stroke engines with M-type
electronically controlled gas injection (MEGI). As regards the dual-fuel, diesel-electric powered carrier, “Arwa Spirit”, which is
52 percent-owned by Teekay, the company said the charterer had exercised its one-year option to extend the contract to May
2022 at a fixed-rate. “The strength of our fixed-rate LNG contract portfolio was evident again this quarter as Teekay LNG

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continued to generate strong earnings and cash flows even as the broader spot LNG shipping market declined from the high
levels experienced during the recent winter period,” said Mark Kremin, president and chief executive of Teekay gas group ltd.
“This decline was short-lived, however, as LNG demand rebounded counter-seasonally in late-march and into the second
quarter of 2021,” added Kremin. “We were able to take advantage of this strength by chartering out three LNG vessels,
including one on a 12-month spot market-linked contract that allows us to achieve full utilization of the vessel while also
retaining upside to strong markets,” stated the CEO. Source : www.LNGjournal.com

ITALIAN GAS GRID AND LNG TERMINAL OPERATOR SNAM BOOSTED BY

HIGH USAGE AND TRANS-ADRIATIC PIPELINE
Italian natural gas Network company and LNG importer SNAM reported a more than 8 percent increase in Net profits as more
natural gas was used in Italy and it benefited from foreign investments in the Trans-Adriatic pipeline bringing gas from
Azerbaijan and its stake in the Abu Dhabi’s pipelines system in the United Arab Emirates. SNAM, whose name comes from
Societa Nazionale Metanodotti (national pipeline company), operates the gas grid and the onshore Panigaglia facility in the
northwest near genoa as well as having a 49 percent stake in the LNG facility, the “FSRU Toscana”, moored 22 kilometers
off the Italian coast between the cities of Livorno and Pisa. The company said quarterly Net profits amounted to €313 million,
an increase of 8.3 percent over the prior year earnings as a result of the positive contribution from associate companies and
the optimization of SNAM’s financial structure. SNAM said the volumes of natural gas injected into the Italian Network in the
first quarter tallied 18.22 billion cubic metres, a 6.8 percent increase on the same quarter of 2020. The company's first-quarter
revenues rose 5.6 percent to €717m and debts at the end of the quarter amounted to €13.7 billion versus €822m at the end
of December 2020. “The increase in gas demand, recorded in all consumption sectors, is mainly attributable to the colder
temperatures recorded in the quarter, which were characterized by an average daily temperature that was around 0.7°c lower
than in the same period of last year,” said SNAM.

SNAM’s assets outside Italy include a share in a minority stake in Abu Dhabi national oil co. (ADNOC) gas pipelines in the
United Arab Emirates. The Italian company joined several equity funds in the ADNOC gas pipelines transaction, valued at over
$10 billion and comprising 20-year management rights for 38 pipelines in the UAE. Snam is also one of the shareholder in
Greek Gas Network owner DESFA along with Spain’s Enagás and Belgium’s fluxys. The three companies hold a combined 66
percent in DESFA while the Greek state owns 34 percent. The three also have a stake in trans-Adriatic pipeline bringing
Caspian natural gas from Azerbaijan via Greece and Albania and under the Adriatic sea to Italy. SNAM said that in the first
quarter the total volume of natural gas that moved through the Italian storage system came in 6.55 billion cubic meters, a 2.5
percent increase on the 6.38 bcm of gas handled. “The increase was mainly attributable to higher withdrawals from storage
as a result of colder temperatures in the first quarter of the year compared with the corresponding period in 2020,” added
SNAM. In the first quarter, a total of 0.38 BCM of LNG was regasified at the panigaglia LNG terminal near genoa versus 0.46
bcm in the same three months of 2020 as seven LNG carriers unloaded cargoes compared with 12 vessels in the 2020

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quarter. SNAM said quarterly Net income from foreign equity investments amounted to €69m, up by €17m, or 32.7 percent,
compared with the first quarter of 2020. “This was mainly as a result of the positive contribution from the trans-Adriatic pipeline
(€16m) , which started operations on the 15th November 2020, and from July 2020, to the entry of ADNOC gas pipelines into
the group's portfolio,” explained SNAM. SNAM also said in its outlook for the rest of 2021 that it expected Italian natural gas
demand to rise. “The most recent estimates on the evolution of demand for natural gas in Italy for the current year show an
increase over 2020, as a result, in particular, of the expected recovery of industrial production and to the colder temperatures
recorded in the 2021 winter,” said SNAM. Source : www.LNGjournal.com

JAPANESE LNG AND ENERGY ENGINEER JGC FORECASTS UPSURGE

AND PROSPECTS FOR PLANT AND TERMINAL ORDERS
JGC holdings corp., the Japanese energy and LNG engineering group whose current work includes the LNG Canada project
and the Coral South Floating LNG venture offshore Mozambique, posted lower net sales in the past fiscal year, though adjusted
profits increased as it forecast a sector upsurge. During JGC’s fiscal year from April 2020 until the end of March 2021 net
sales amounted to 433.9 billion yen ($3.99bln), lower than the forecast 480.0bln yen ($4.41bln), though ordinary (adjusted
net) income was higher at 25.5 billion yen ($234.5m) compared with income of 22.3bln yen ($205.7m) reported in the previous
fiscal year. Because of the impact of covid-19 over the past year, earnings per share dropped to 20.37 yen (us$0.19) from a
forecast 31.70 yen ($0.29) per share. “We had assumed that our business environment impacted by covid-19 would have
returned to normal during the period concerned, but the situation has been unclear and different from our assumptions,” said
JGC. “In these circumstances, the net sales were affected by the fact that construction progress could not get a sharp recovery
towards the end of the fiscal year to reach our forecast,” added JGC. “The operating income and ordinary income exceeded
the forecasts because of margin improvements in domestic and overseas projects and a reduction in general and administrative
expenses,” stated the company.

JGC expected business to grow in the LNG sector in the coming years. “LNG is a cleaner, lower-carbon fossil fuel for the
energy transition and is expected to keep growing steadily amid higher demand in emerging economies,” stated the Japanese
company. JGC said it would also seek to strengthen its contract portfolio to secure some of the many projects anticipated for
LNG production and receiving terminals and gas-fired thermal power plants. Additionally, JGC said projects would also likely
increase in the already “traditional” renewable energy business such as in solar power, energy storage and biomass power
generation, as well as in the new and experimental fields of hydrogen and ammonia fuel. JGC said its outstanding contracts
in the LNG sector amounted to 509.8bln yen ($4.6bln) compared with 617.4bln ($5.6bln) at the end of the previous fiscal
year.Petroleum refining engineering contracts, including in nations like iraq, amounted to around 444.1bln ($4.0bln). JGC’s
corporate structure has JGC holdings as the parent company and JGC corp. Operating the overseas engineering, procurement,
and construction (EPC) business of the JGC group. JGC was chosen by Iraq to upgrade the oil refinery at Basrah, located
525 kilometres southeast of the capital Baghdad. That Iraqi lump-sum EPC contract is valued at more than $3bln and the

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completion date is 2025. Outstanding contracts increased in JGC’s overall engineering sector backlog amounting to 1.24 trillion
yen ($11.4bln), also including some power generation and chemical projects, versus 951.3bln yen ($8.74bln) at the end of the
previous fiscal year. As part of the medium-term business plan, JGC said it would also be investing around 200bln yen
($1.8bln) in key corporate activities such as digital transformation and research and development. Its financial targets for the
2025 fiscal year include net sales of 800bln yen ($7.35bln), operating income of 60bln yen ($500m) and net profit of 45bln
yen ($413m). JGC also explained its aims in promoting clean energy as well as, and not instead of, human welfare. “We
remain committed to our traditional mission of creating a more prosperous future, which has been redefined to reflect our
purpose of improving the intertwined health of humans and the earth,” stated JGC. Source : www.LNGjournal.com

PIVOTAL LNG AND NORTHSTAR FUEL EXPANSION IN FLORIDA

REVEALS EXPERTISE OF US SMALL-SCALE LNG SECTOR
The LNG supply company in the us state of Florida owned by pivotal LNG and Northstar midstream, plans to increase the
liquefaction capabilities to 360,000 gallons per day and double its storage capacity to 4 million gallons using the growing
expertise of construction services companies in the us small-scale LNG sector. The existing liquefaction plant in the port of
Jacksonville in Florida, called JAX LNG, started operations in 2018 and is the largest of three us fuel plants owned by pivotal
and NorthStar. This Florida project is supported by the growing expertise of American companies in the small-scale liquefaction,
storage and shipping construction services sectors. JAX LNG is located along the St. John’s river in Jacksonville and the
expansion is expected to be placed in service by early 2022 to support a new long-term LNG supply agreement for shipping.
Following completion of the JAX LNG expansion, pivotal’s network of LNG assets will reach a total production capacity of more
than 470,000 gallons per day and a storage capacity of 9 million gallons at its three facilities in florida, alabama and
pennsylvania. “We are thrilled to have the opportunity to meet our customers’ LNG needs and the growing LNG demands in
the eastern us,” said tim delay, vice president of pivotal LNG. “The expansion at JAX LNG with our partner northstar further
demonstrates our commitment to investing in the future of clean energy,” added delay. Construction of the liquefaction plant
expansion is underway and led by the salof ltd company of texas. “Our approach to natural gas facilities ensures the highest
attention to the safety and well-being of the facility operators and the local community, while also ensuring we protect our
customers’ investment,” said Robert Luhrs, president of Salof. “We specify equipment and systems that meet the latest
environmental standards and reliability,” he added. “We are extremely proud to be leading the delivery of the JAX LNG
expansion. Many of our modular units are already installed at the site, and we look forward to successfully commissioning the
phase 2 facility,” stated Luhrs. The pivotal-NorthStar joint venture’s Alabama plant at Trussville can produce 60,000 gallons
and has 4.8 million gallons of storage, while the Towanda facility in Wyalusing in Pennsylvania has production of 50,000
gallons per day and storage of 80,000 gallons. For the storage expansion, JAX LNG is working with subsidiaries of matrix
service company, a leading contractor to the energy and industrial markets and a leader in small-scale to mid-size LNG
liquefaction and storage terminals. Matrix completed the roof lift of the new 2-million-gallon storage tank in December 2020,

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fulfilling a major construction milestone in the project.“We are pleased to help JAX LNG bring this critical infrastructure to life,
providing cleaner alternative fuel,” said matrix service company president and chief executive John R. Hewitt. “Beginning with
the engineering and construction of the first LNG storage tank for this facility, we value our ongoing relationship and appreciate
the opportunity to continue providing safe, high-quality work to help JAX LNG achieve its current and future business objectives,”
stated Hewitt. In 2019, NorthStar formed Polaris new energy (Polaris), an LNG marine transportation company. Polaris is
having a new 5,400 cubic metres capacity LNG bunkering barge constructed at Fincantieri bay shipbuilding of Wisconsin and
an integrated tug with the master boat builders company. When complete, this new articulated tug and barge (ATB) unit will
deliver LNG maritime fuel along the us east coast. “The shipyards building our tug and barge are making solid progress. The
ATB ‘clean Canaveral’ will be in operation by the end of 2021,” said Tim Casey, senior vice president of LNG at NorthStar.
He added that the “clean Canaveral” will not only serve customers in the Jacksonville area, but will also have the ability to
transit up and down the east coast to serve customers in other ports. He noted that the ATB’s ocean-going capability will
provide great flexibility in helping polaris build out its business. Source : www.LNGjournal.com

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