Cygnus Energy LNG News Weekly 04th June 2021

LNG NEWS WEEKLY DATE 04th JUNE 2021
PETRONAS STARTS TO MOVE ON ITS THIRD FLNG UNIT NEWBUILDING

State energy company floats front-end engineering and design tender for next offshore liquefaction plant. Malaysia’s Petronas
has invited companies to start work on the design of its third floating LNG (FLNG) production unit. The state-controlled energy
giant launched a search for companies to lead consortia or joint ventures to work on the front-end engineering and design of
a 2 million tonne per annum to 3-mtpa floater to be sited off Sabah, in east Malaysia. The work covers an extension to the
existing jetty that connects to Petronas Chemicals Fertiliser Sabah facility, tie-ins for a virtual pipeline system, LNG bunkering
and onshore and subsea feed gas pipelines.
Going again
Bids are due this week. Petronas said the work is expected to take 15 months. The company said “multiple” companies will
undertake competitive FEED work, which will then roll over into an engineering, procurement, construction and commissioning
contract. This will be the third FLNG unit for Petronas, which has so far led the field in the number of floating LNG units it has
Sandp@cygnus-energy.com Gas@cygnus-energy.com
(Sale and Purchase) (Gas projects)
in operation. It was first to market with an FLNG unit, exporting an initial cargo from its 1.2-mtpa PFLNG Satu (built 2016) in
April 2017. The unit had been deployed off Sarawak state, to the south-west of Sabah on the main gas field linked to Petronas’
Bintulu LNG plant. But Petronas wanted proof of location flexibility and in 2019 it shifted the unit to work a different gas field.
The PFLNG Satu was built by Daewoo Shipbuilding & Marine Engineering with Technip handling the unit’s topsides. In March,
Petronas became the first company to produce LNG from two FLNG units. It exported a first cargo from the Samsung Heavy
Industries-Technip-built, 1.6 mtpa PFLNG Dua (built 2020). The unit is being used to monetise the Rotan gas field, 140 km
(87 miles) off Kota Kinabalu in east Malaysia.
Wide range
Aside from these two firsts for Petronas, just three other FLNG units have been put into service. In the heavyweight corner is
Shell’s vast 3.6-mtpa Prelude FLNG unit off north-west Australia, while the Exmar-controlled, 500,000-tonnes barge-based
Tango FLNG weighs in as the smallest. In a class of its own is the first LNG carrier-to-FLNG unit conversion — Golar LNG’s
2.4-mtpa Hilli Episeyo. This unit is working off Cameroon, where it has produced more than 55 cargoes. There are more LNG
floaters under construction for projects that kicked off several years ago. Next year, the ENI-led 3.4-mtpa Coral South FLNG
unit is due to be in operation off Mozambique. The floater is under construction at SHI. Another conversion will follow, when
BP’s 2.3-mtpa Tortue FLNG project fires up off Senegal and Mauritania in 2023. At about a total of 15-mtpa LNG production
capacity for all the existing and under-construction units, FLNG still remains a very small part of the 356 mtpa of LNG produced
globally in 2020. But FLNG has also been undergoing something of a revival. Both Golar LNG and US-listed New Fortress
Energy are actively working on new concepts and designs. New Fortress has bought two semi-submersible drilling rigs from
Maersk, which it plans to convert into quick start-up units under a new concept Fast FLNG, while Golar LNG is looking at
Mark II conversion and newbuilding designs. source : www.tradewindsnews.com
IVORY COAST SEEKS OFFERS FOR FSRU TO SUPPLY LNG

Gas-hungry West African nation Ivory Coast has put out a call to companies able to provide and operate a floating storage
and regasification unit to supply LNG. The country’s Ministry of Mines, Petroleum and Energy — via state electricity company
Cote d’Ivoire Energies (CI Energies) — is seeking offers to provide and operate an FSRU, supply LNG and connect related
infrastructure to the existing gas network. Bidders will be responsible for the design, financing, construction, ownership,
operation and maintenance of the FSRU, and building related infrastructure, which CI Energies will either rent or lease, with
an option to acquire or buy from the outset. Companies can also offer in separate LNG storage and regasification units that
would work in combination. CI Energies is requesting a gas send-out of 50 million cubic feet per day, with options to increase
this in the period to 2030. It has specified a storage capacity of 125,000 cbm to 135,000 cbm but said other sizes may be
offered. Offers are to be based on an initial operating period of 10 years. The government is proposing for the FSRU to be
located in the Vridi Canal area of the Port of Abidjan. But companies can propose other locations. The Ivory Coast tender
comprises three lots, of which the FSRU provision and that of LNG supply for the facility falls into Lot 2. The ministry is also
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tendering for a new 200 MW power plant and gas supply to an existing facility. Bids must be valid for six months and are due
in by 14 June. Those following the business described it as a form of “emergency tender”. The ministry said its energy planning
for the period 2022 to 2030 has revealed a deficit in natural gas volumes. It cited constraints on its energy policy including
the implementation of projects, unavailability of gas suppliers and a growth in demand for electric power. This is not the first
attempt to put an FSRU into the Ivory Coast. In 2017, Golar LNG was selected as the preferred provider in a project led by
energy major Total after a battle with BW LNG for the job. The project was due for start-up in 2018 but those who worked on
it said it appears to have “fallen away”. source : www.tradewindsnews.com
MARANGAS SWOOPS ON LNG OPTIONS AT SHI

Greek shipowner extends its position to three, apparently open vessels. Maria Angelicoussis-led Maran Gas Maritime has
firmed up two LNG carrier newbuilding options at Samsung Heavy Industries (SHI) in South Korea. The yard announced that
it had inked a KRW 417bn ($374m) deal to build two LNG ships for an Oceanian company, ducking the naming of the
contracting party and pricing the vessels at $187m each. It said the newbuildings will be equipped with devices to boost fuel
efficiency and will be delivered by July 2024. Newbuilding sources said the vessels are for Maran's account. In December
Greek shipowner Maran was linked to a single order for an LNG -carrier then priced at KRW 206bn ($186m) at SHI. The
vessel is due for delivery in July 2023. The newbuildings announced by the yard this week are understood to be options
attached to this original order. Sources said the vessels are speculative and not yet committed to any business. Maran, along
with Japanese shipping giants NYK Line, Mitsui OSK Lines (MOL) and K Line, is also sitting on four LNG newbuilding slots
for the TotalEnergies-led Mozambique LNG project. The Greek company’s berths for this east Africa business are at SHI. But
Total Energies, formerly Total, has opted to delay the project for at least one year due to militant attacks close to its Afungi
construction site and the 17 LNG newbuildings have yet to be firmed up. SHI has achieved 59% of its revised $9.1bn order
target to date this year, winning $5.4bn worth of contracts for 44 ships to date. The yard upped its target from $7.8bn as the
pace of ordering picked up in 2021. source : www.tradewindsnews.com
DYNAGAS DOUBLES UP ON LARGE LNG CARRIER NEWBUILDINGS AT

HYUNDAI HEAVY
Five LNG orders have been confirmed in one week as options tempt and contract business is firmed up. Greek shipowner
Dynagas has upped its number of LNG carriers on order at Hyundai Heavy Industries to four ships after firming up a pair of
optional vessels. Dynagas chief executive Tony Lauritzen confirmed the company had ordered two 200,000-cbm LNG carriers
at the yard that are due for delivery in the second half of 2023. Speaking about their unique size, Lauritzen said the vessels’
terminal compatibility is similar to a 180,000-cbm LNG carrier. He said the ships will be fitted with MAN Energy Solutions new
low-pressure ME-GA two-stroke dual-fuel engine, with an exhaust gas recirculation system to reduce greenhouse gas
emissions. Lauritzen said the LNG carriers will be built with a Mark III Flex plus cargo-containment system that will give them
a natural cargo boil off of 0.065% per day — the lowest available in the industry. Reliquefaction systems will handle unused
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boil-off. “The vessels will offer to their end users wide terminal compatibility, competitive freight economics and the best
obtainable emission profile,” Lauritzen said.
Thinking big
Dynagas is the only shipowner to have ordered LNG carriers of 200,000 cbm, after quietly opting to up the capacity of a pair
of 180,000-cbm newbuildings contracted at HHI last year. There are currently no vessels of this size on order elsewhere or
in the trading world fleet, with the only larger ships being Qatar’s 210,000-cbm Q-Flex and 265,000-cbm Q-Max vessels.
The first two ships — contracted in May 2019 — are understood to have been fixed to US producer Cheniere Energy on mid
to long-term charterers. Lauritzen declined to comment on whether the latest newbuildings have charter contracts or if Dynagas
is holding any further options at HHI. The Dynagas pair comes in a week where three more LNG carrier orders have been
declared, cementing business for each of South Korea’s big three yards. Compatriot Maran Gas Maritime firmed up two options
at Samsung Heavy Industries, boosting its tally at the yard to three ships. In an announcement referencing the order, SHI
priced the vessels at $187m each. On Monday, Daewoo Shipbuilding & Marine Engineering held a signing ceremony with South
Korea’s Hyundai LNG Shipping for a single 174,000-cbm LNG newbuilding. The vessel was contracted against a 10-year
time-charter with Spain’s Repsol.
Upbeat prospects
It is unclear whether Dynagas or Maran Gas have business for their latest newbuildings, with both sets of orders understood
to be speculative at this stage. With prices rising at shipyards and slots filling up, newbuilding brokers said it is likely that
options look too tempting to turn down. In addition, brokers point to the long-term market for LNG as looking positive. Term-
chartering activity for LNG carriers has been unseasonably high in the second quarter and while activity and charter rates have
fallen in the past two weeks, brokers said the forward cargo price suggests sustained tonne-mile demand. One said there has
been a “noticeable increase” in enquiry for medium-term charters of between three and five years. They said charterers are
looking at longer periods in a bid to be able to lock in lower rates than they would pay for a one to two-year deal. source :
www.tradewindsnews.com
INTERNATIONAL GAS UNION BACKS LNG-FUELLING AS BEST

AVAILABLE SOLUTION TO CUT EMISSIONS
World Bank's negative view of LNG as 'dead on arrival' is ‘premature’ and IEA 2050 roadmap will likely ‘be derailed’, gas
body says. LNG use for marine propulsion has increased five-fold between 2015 and 2020, according to the International Gas
Union (IGU), which published its annual report on Thursday. Around 1.5m tonnes of the gas was supplied as bunkers in 2020,
with some 22 LNG bunker vessels now in operation globally, the IGU 2021 World LNG Report said. "LNG is currently the best
and immediately available solution at scale that can reduce the environmental impact of maritime transport and preserve air
quality," as per the report.
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Premature
Speaking on a webinar to present the report, IGU secretary general elect Andy Calitz said maritime bunkering was here to
stay. Even though ammonia will eventually enter the frame as a bunker fuel, Calitz said it was "premature" by the World Bank
to declare in a recent report that LNG fuelling is “dead on arrival”. SEA-LNG chairman Peter Keller also weighed in, saying
the World Bank did the world “a disservice” with its statement, as alternatives to LNG are not available yet and will not be for
quite some time. Gas and LNG can immediately reduce emissions and be the key pathway to decarbonisation as more
renewable gas, hydrogen, and carbon capture-and-storage are added, the IGU said in its 12th annual summary. Delving into
the figures, IGU World LNG Report Task Force chair Birthe van Vliet from Shell said LNG trade growth was “muted” in 2020,
increasing by just 1.4m metric tonnes (mt) as it was “heavily impacted” by the global pandemic. Exports increased from the
US, Australia and Russia, but dropped in countries such as Trinidad and Tobago, Malaysia and Egypt. Imports into China and
India grew, while declines were witnessed in Europe, Mexico and Japan. Re-exports rose to 2.6m mt, with Singapore and
France responsible for a combined 1.5m mt. Some 19m mt of new regasification capacity was added in 2020 across 39
countries, with Myanmar becoming an importer and Croatia following earlier this year. Ghana, El Salvador, Vietnam and
Nicaragua are expected to come after that. The IGU flagged up the growth of small-scale LNG as “an important new sector”,
as well as of LNG for marine and road fuelling.
Volatile pricing
The LNG sector saw volatile prices throughout the year. Ciaran Roe, global director for LNG at S&P Global, said 2020 saw
the lowest LNG prices on record at “significantly below” $2 per MMBtu. However, prices spiked to the other extreme in January
and February of this year on the back of “stellar demand growth” from North Asia. Sindre Knutsson, vice president of gas and
LNG markets at Rystad Energy, said the industry had expected about 56m mt of new liquefaction capacity to be sanctioned
during 2020 but just one project was eventually given the green light. The analyst estimates that some 32m mt of regas
capacity was delayed last year. Knutsson said the LNG carrier fleet grew by 7% in 2020 with 35 vessels added. At the start
of 2021, there were 130 vessels on order — or 23% of the existing fleet. Calitz said he was not going to leave the IEA’s net-
zero 2050 roadmap report, which said fossil fuels such as gas should be avoided, “hanging in the air”. The IGU has the
greatest respect for the IEA and Calitz said it is in support of the Paris Agreement on climate change. But he added: “The
IGU believes that the economic, the human and societal costs of the proposed IEA roadmap makes it very likely to be derailed.”
source : www.tradewindsnews.com
RUSSIA’S FIRST LNG BUNKER BARGE COMPLETES SEA TRIAL

The ship will be christened Dimtry Mendeleev and is expected to enter the Gazprom fleet in the second half of 2021. The
systems for loading, storing, and discharging LNG will be tested in the next stage. In December 2020, Dmitry Mendeleev was
set afloat after the completion of the vessel’s main construction stage. The Arc4 ice-class vessel can carry up to 5,800 m3
of LNG and will be used for LNG bunker operations in the ports of St Petersburg, Ust-Luga and Primorsk. The equipment on
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the vessel is in compliance with international Marpol Convention standards and ECO-S environmental certification. Dmitry
Mendeleev is built to support zero emissions and is fitted with a propulsion system fuelled by boil-off LNG. The vessel also
sports an integrated digital system which can be controlled directly from the navigation bridge by just one crew member. In
late May, Gazprom began constructing a major new gas, LNG and chemicals complex at Ust-Luga in northwestern Russia
that will include the 13 mta Baltic LNG plant. Gazprom is developing the site with project partner RusGazDobycha and expects
expects production at the facility to begin in 2026. The two-train LNG export facility at Ust-Luga will be Gazprom’s second
LNG export plant in addition to its nearly 11 mta Sakhalin LNG project in Russia’s Far East. source : www.rivieramm.com
FIRST STUDY MEASURES METHANE EMISSIONS FROM LNG CARRIER

The study was conducted with support from industry collaborative Collaboratory to Advance Methane Science (CAMS) and
Spanish energy operator Enagas. Results from the study will provide crucial data into the greenhouse gas profile of LNG
carriers to identify opportunities to improve the environmental performance. Researchers collected comprehensive direct
measurements over the course of Cheniere’s chartered newbuild GasLog Galveston’s round-trip voyage from Cheniere’s Corpus
Christi liquefaction facility to a discharge port in Europe. Data gathered during the voyage includes measuring engine exhaust
as well as fugitive emissions. CAMS said the results of the study are expected to be released in a peer-reviewed journal. The
lead researcher for the study and lecturer in chemical engineering and renewable energy at Queen Mary University, Dr Paul
Balcombe said state policies looking to regulate the industry to meet climate goals will rely on accurate emissions data.
“Accomplishing this will depend on ensuring transparent, emissions-related data is available and lessons learned from studies
such as this are implemented,” he said. GasLog chief operating officer Paolo Enoizi said “We are proud to be a part of the
CAMS effort to measure and monitor methane emissions from the GasLog Galveston under real-world operating conditions.
As responsible shipowners, we view the efforts undertaken by the CAMS as critical to minimising the environmental footprint
of the global LNG shipping fleet and supporting the continued success and competitiveness of the LNG industry.” “Enagás is
intensively working in the detection and quantification of methane within its assets to minimise emissions,” said Enagas gas
assets general manager Claudio Rodríguez.“We believe improving the accuracy of the emissions data along the gas value
chain is critical, and this first-of-its-kind study will shed light on methane emissions associated with the logistic supply chain
– informing us of our greatest prospects for development.” CAMS members include Cheniere, Chevron, Equinor, ExxonMobil,
Pioneer Natural Resources, Sempra LNG, and Shell. The consortium is administered by GTI, a leading research, development
and training organisation. source : www.rivieramm.com
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NEWLY DELIVERED CARRIER TO TRANSPORT LNG FROM LNG CANADA
PROJECT
The newbuild will transport LNG from the LNG Canada project in British Columbia, as well as from other locations around the
world, under an 18-year time-charter contract with Diamond Gas International, a wholly owned subsidiary of Mitsubishi
Corporation, who also has a stake in the LNG Canada project. The Hyundai Samho Heavy Industries-built ship is owned by
NYK, Asia LNG Transport and Mitsubishi Corp through the joint venture Diamond LNG Shipping. NYK Group will be responsible
for ship management. Diamond Gas Crystal is equipped with a state-of-the-art WinGD dual-fuel slow-speed diesel engine
(X-DF diesel engine) and can operate on marine gas oil or boil off gas stored in the cargo tank. The 297-m long vessel will
also feature a reliquefaction system that can use reliquefied excess boil-off gas and return it to the cargo tank. The cargo tank
will be a 174,000-m3 capacity membrane-type tank that will use advanced insulating materials to suppress the boil-off rate
in the cargo tank and realise superior efficiency and economical LNG transportation. NYK Line has also signed a shipbuilding
contract with China Merchants Jinling Shipyard for four LNG-fuelled pure car truck carriers to be delivered between 2022 and
2023. source : www.rivieramm.com
GHANA’S TEMA LNG COMMISSIONING LIKELY DELAYED

With the originally intended FSU Torman II still at Singapore’s Sembawang shipyard, Tema LNG’s interim replacement Vasant
1 has arrived offshore Ghana in late May. However, our data indicates the vessel is not carrying Tema LNG’s commissioning
cargo, suggesting the terminal’s start-up will be delayed to later in June. Ghana’s plans to become sub-Saharan Africa's first
LNG importer are likely to be delayed to later in June, our data indicates. The country was originally expected to receive its
commissioning cargo at the new Tema LNG terminal by the end of May. The terminal is ‘operationally ready’, according to a
project spokesperson speaking to S&P Global Platts at the beginning of May.
Torman II FSU
The project originally comprised the Torman
LNG FRU and a Moss-type LNG floating
storage unit (FSU), named Torman II, which
was converted from the LNG carrier LNG
Flora. However, our AIS data showed in late
May the Torman II was still at its Sembawang
shipyard in Singapore. The reasons for the
delay could not be ascertained at the time of
writing.
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Replacement FSU
The Tema LNG project likely sub-chartered the FSU Vasant 1 from India’s Swan Energy to take on the role as dedicated
storage vessel for the Ghana LNG project. The 180,000m3 vessel arrived off Ghana’s Tema port on 26 May but has not
approached the Torman FRU, according to our data. The Vasant1 is not carrying Tema LNG’s commissioning cargo, our data
also suggests.
LNG supply
LNG will be supplied under a long-term contract with Shell. The company indicated earlier this year that it was seeking to
enhance its LNG market position by unlocking new markets. Shell did not specify the timing or origin of Tema LNG’s
commissioning cargo; our market visibility did not indicate a laden LNG carrier en route to Ghana at the time of writing.
However, we highlight that Shell holds a roughly 26pct share in the Bonny Island LNG complex in neighbouring Nigeria. Ghana
already imports gas from Nigeria via the West African Gas Pipeline (WAGP), but this supply is frequently hampered by
interruptions, making LNG an attractive alternative. Shell announced it would invest in a seventh train at Nigeria’s Bonny Island
LNG complex on 13 May. Once operational, the new train will expand capacity at Bonny Island to 30mtpa.
Chinese engineering
TGE Marine Gas Engineering commissioned the construction for a 28,000 m3 capacity barge-type FRU, including the design
and supply of the cargo handling system and tank material package, with Chinese shipbuilder Jiangnan Shipyard. French
certification company Bureau Veritas completed the barge’s classification in March. The unit had arrived in Ghana from China
in January. The FRU’s tank system comprises two ISO cylindrical tanks with nameplate capacity of 14,000m3 each. Five
modular compact regasification skids will provide a peak send-out rate of 335 t/h or roughly 2mtpa. The FRU unit is part of
a flexible design intended to work in parallel with a larger floating storage unit (FSU). Tema LNG’s surrounding infrastructure
was constructed by China Harbour Engineering Company (CHEC). The terminal is backed by Helios Investment Partners and
Africa Infrastructure Investment Managers.
Expanding LNG map

To date, Africa’s only country to import LNG has been Egypt via its FSRU capacity at Ain Sokhna. Commissioning of Ghana’s
Tema LNG terminal will expand the continent’s LNG map to the sub-Saharan region. As in Southeast Asia, LNG in Africa is
seen as a relatively quick and inexpensive way to meet growing gas demand for power generation in the coming years. Source
: www.lngjournal.com
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AVENIR LNG’S HIGAS LNG TERMINAL ON SCHEDULE
Avenir LNG is set to receive the commissioning cargo for its new Sardinian HIGAS LNG terminal via the company owned LBV
Avenir Accolade on Wednesday. The cargo was loaded and re-exported from Croatia’s Hrvatska LNG. The small-scale terminal
is designed to unlock Sardinia for the global LNG market with help from conventional FSRU capacity shared with Avenir’s
partners. According to Avenir LNG’s plans and the scheduled arrival of the Avenir Accolade, the terminal at Porto di Oristano
is on schedule.
The Avenir LNG-controlled vessel Avenir Accolade is currently en route to the island of Sardinia in Italy, our data shows.
The 7,500m3 vessel is transporting the commissioning cargo for Europe’s latest LNG terminal, the Avenir LNG-owned
HIGAS facility in Porto di Oristano on Sardinia’s western coast. The Avenir Accolade’s cargo is a re-export from Croatia’s
Hrvatska LNG terminal, itself only about 6 months old. The FSRU LNG Croatia, stationed at Hrvatska LNG, last received a
Yamal LNG-derived cargo via the Methane Nile Eagle through a Zeebrugge transshipment earlier in May, according to our
data.
Unlocking market on schedule

HIGAS is a small-scale LNG import, storage and distribution
facility and is designed to unlock one of Europe’s major islands
for LNG supply. The HIGAS terminal is the first certified small-
scale LNG facility of its kind in Sardinia. Avenir LNG hold 80pct
of the equity and has partnered with Italian engineering company
Gas & Heat and gas and energy cooperative CPL Concordia, who
each hold a 10pct stake in the project. Considering the Avenir
Accolade’s scheduled arrival and Avenir LNG’s plan to have HIGAS ‘fully operational by Q2 2021’, the terminal at Porto di
Oristano is on schedule. LNG will be stored in 6 horizontal low-pressure cryogenic tanks to meet inland LNG demand by truck
and small satellite stations. The terminal has capacity to load up to 8,000 LNG trucks per year via two truck loading bays,
which is roughly equivalent to annual terminal throughput capacity of 700,000 tonnes LNG. HIGAS will also be connected to
Sardinia’s gas pipeline system to allow gas supply to local industry. Avenir LNG also envisions HIGAS to facilitate marine
bunkering and truck refuelling.
Demand growth
Increasing demand for cleaner-burning fuels has contributed to a robust increase in Italian LNG demand over the past three
years. However, several Italian regions with growing demand clusters in the Mediterranean having hitherto only had limited
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access to such alternative fuels, according to Avenir LNG. Italian LNG demand is on a path to recovery since it was hit
severely by the coronavirus pandemic.
Low-cost flexibility
Avenir LNG is a fully integrated small-scale LNG supplier engaged in alternative fuel distribution. The company’s strategy is
to aggregate volumes from a collective of customers and thereby create financially attractive economies of scale. Each customer
is priced on a percentage of usage rather than whole asset utilisation to ‘open new markets that would otherwise be considered
cost prohibitive’, according to Avenir LNG. Over time, Avenir is planning to move into the integrated power and industrial
market and commission similar terminals to the HIGAS facility elsewhere, potentially employing small-scale floating storage
and regas solutions. Source : www.lngjournal.com
ARGENTINA TO BOOSTS LNG IMPORTS IN MAY, POTENTIAL FSRU EN-

ROUTE
Faced with declining gas production and limited scope to cover a projected shortfall with regional pipeline supply, Argentina
has issued extra LNG tenders in April and is set to boost LNG imports in May. A second but unnamed FSRU has also been
fixed short-term from 26th May, which broadly coincides with the arrival of the Exemplar FSRU delivering a cargo around
20th May. Argentina has swiftly increased its LNG buying ahead of winter in a bid to avoid a gas supply shortfall. Our data
and market outlook indicate imports in May will be the highest since 2018. Market visibility suggests the country will import at
least 0.36mmt this month, up 0.16mmt (80pct) compared to imports in May 2019. Argentine LNG demand only amounted to
0.06mmt in May last year.
Early hope dashed
Argentina initially hoped to be able to rely on its
Vaca Muerta shale play to not only meet the bulk
of domestic demand but also reaffirm its role as
a regional gas exporter – both via pipeline and
the Tango FLNG plant in 2018. However,
sustained drilling campaigns and repeated large-
scale investment have not come to pass. Among other factors, Argentina’s economy has been severely affected by the
prevailing coronavirus pandemic, which hampered the persistent drilling necessary for sustained shale gas production. The
country also lacks sufficient gas storage capacity to bridge seasonal spikes. YPF was forced to declare force majeure on its
Tango FLNG plant in late June last year.
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Pipeline gas insufficient
Gas imports via pipeline are unlikely able to bridge the gap completely. Although IEASA concluded a short-term contract
with Bolivian producer YPFB last year, that supply only amounts to a minimum of 14 million m³/d in May-August compared
to a previous commitment of c. 18 million m³/d. Bolivian gas production, like Argentina’s, has been declining, government
data show.
Additional tenders for extra LNG

In April this year, state-run oil and gas company Integración Energética Argentina (IEASA) issued a tender seeking 13 shipments
for delivery between May and August. These cargoes are earmarked to bolster a previous tender round of 24 shipments and
are earmarked for an unnamed FSRU that has yet to be deployed at the port of Bahía Blanca.
Second FSRU required

Argentina is likely to require more than one FSRU in operation to manage the required higher gas throughput during the winter
period. Draught restrictions at Escobar mean conventional LNG carriers cannot approach the GNL Escobar GasPort terminal
fully laden. The Escobar facility has been Argentina's only LNG terminal since release of the Exemplar FSRU at Bahia Blanca
in October 2018. This year, IEASA has chartered a second FSRU from Excelerate Energy, according to state news agency
Télam. The unidentified FSRU is scheduled to dock at Bahía Blanca on 26th May and remain there until early September but
neither YPF nor IEASA have elaborated further. This start date broadly coincides with the arrival of another Excelerate Energy
FSRU – the Exemplar – delivering a Ras Laffan-derived cargo on Thursday, 20th May, our data shows. The vessel had
previously been stationed as Argentina’s second FSRU at Bahía Blanca from 2008 until late 2018. Source : www.lngjournal.com
CHENIERE-SHELL TRADE EUROPE’S SECOND CARBON-NEUTRAL LNG

CARGO
Europe received its second caron-neutral LNG cargo last week via a Cheniere-Shell trade as part of the of the companies’
long-term LNG Sale and Purchase Agreement. Shell is building a track record as an importer of carbon-neutral LNG in both
Europe and Asia whilst Cheniere sees climate-friendly LNG as an important growth segment of the global LNG market.
Cheniere announced last week that its Sabine Pass LNG plant had supplied a carbon-neutral LNG cargo to Shell. The shipment
was part of the companies’ long-term LNG Sale and Purchase Agreement, a statement by the US company said. The cargo
was delivered to a European terminal in early April, the statement also read. According to our data, the Shell-controlled
Magdala arrived at the OLT Toscana terminal in western Italy on 5th April. The vessel carried a 0.07mmt cargo, which had
been loaded at Sabine Pass LNG on 22nd March. Cheniere’s press release suggests the cargo was sold FOB.
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Sharing credit
Reminiscent of a similar carbon-neutral LNG trade by Gazprom and
Shell earlier this year, Cheniere and Shell ‘worked together to offset the
full lifecycle greenhouse gas emissions associated with the LNG cargo’.
The two companies thus retired nature-based offsets to account for the
estimated CO2e emissions produced through the entire value chain,
meaning from production at the wellhead through to use by the end
consumer. CO2e stands for ‘Carbon dioxide equivalent’. The term is
used to bundle different greenhouse gases (GHG) in a common unit. In March, Shell received Europe’s first carbon-neutral
LNG cargo at the Dragon LNG terminal in Wales. The shipment was supplied by Gazprom’s Yamal LNG contingent. Cheniere’s
statement suggests each party covered different parts of the value chain, with Cheniere responsible for offsetting the estimated
CO2e emissions attributable to upstream as well as liquefaction activities up to the FOB delivery point.
CE Tags
Cheniere announced in February it would provide emissions tags (CE Tags) to all LNG cargoes produced at its Sabine Pass
and Corpus Christi plants from 1H 2022. CE Tags are designed to enhance environmental transparency by quantifying the
estimated GHG emissions of LNG cargoes from the wellhead to the cargo delivery point. “We believe significantly enhanced
data-driven emissions transparency will support Cheniere, our customers and our suppliers as we work to identify tangible
opportunities to quantify and improve environmental performance,” said Jack Fusco, Cheniere’s President and Chief Executive
Officer, in February. “We consider this announcement to be a critical first step for the industry. Cheniere will continuously work
to improve the data incorporated in the CE Tags with the ultimate goal of providing dynamic GHG emissions data.”
Growing market
"I think offering climate solutions to our customers is going to be a bigger and bigger portion of our business," Jack Fusco
said during Cheniere’s first quarter earnings call, according to Reuters. Asia is currently at the forefront of sourcing
environmentally friendly LNG. Shell has traded seven carbon-neutral cargoes to Asia since 2019, inter alia with Tokyo Gas,
CNOOC Gas & Power and Taiwan’s CPC.Moreover, Singapore’s Pavilion Energy imported the country’s first carbon neutral
LNG cargo on 11th April. Pavilion also signed long-term LNG supply contracts with Qatar Petroleum and Chevron that mandate
specific GHG data provision with each cargo.The two deals cover LNG supply of 2.3mtpa from 2023. Last year, Singapore
imported 4.01mmt, according to our data and calculations. Roughly 1.21mmt were re-exported with the majority going to China.
Source : www.lngjournal.com
11
LATEST US LNG PROPOSAL IN LOUISIANA MOBILIZES ENVIRONMENT
ACTIVISTS CITING CLIMATE CHANGE AND HURRICANES
The US LNG export project developer Venture Global is facing environmental challenges with multiple filings from environmental
activists to the Federal Energy Regulatory Commission for the proposed project at Calcasieu Pass in Cameron Parish in
Louisiana, known as the CP2 LNG project. Venture Global subsidiaries, CP2 LNG and the Venture Global CP Express pipeline,
have already asked FERC to initiate the National Environmental Policy Act (NEPA) pre-filing review process. As part of the
project, CP2 LNG proposes to build, own and operate an LNG facility with a nameplate liquefaction capacity of 20 million
tonnes per annum of LNG on a 550-acre site. The CP2 plant would be developed next to Venture Global’s 10 MTPA Calcasieu
Pass LNG project currently under construction. The US environmental lobby, led by the Sierra Club, has mobilized against the
project and its thousands of jobs, LNG export income for the United States and clean energy for Asia. Filings to the FERC
amounted to dozens of petitions in April and May 2021, each signed by up to 50 individuals in an obviously orchestrated
campaign calling for CP2 to be blocked. Reasons cited included climate change and the supposed increased frequency and
severity of hurricanes on the US Gulf Coast. The CP2 plant would have a connecting natural gas pipeline, the CP Express,
proposed to run from Jasper County in Texas to the proposed liquefaction facility in Cameron Parish. CP Express would consist
of about 85 miles of 48-inch-diameter pipeline and almost 6.0 miles of 24-inch-diameter lateral pipeline to connect the CP2
plant to the existing natural gas pipeline grid in east Texas and southwest Louisiana. One new compressor station is proposed
to be constructed east of Vinton in Louisiana.
New FERC rules

“The National Environmental Policy Act (NEPA), now requires that FERC consider climate change when identifying
environmental issues,” stated the Sierra Club in one of the many filings in opposition to CP2. “Pursuant to its obligations
under NEPA, the Commission must consider the environmental impacts of climate change on and from LNG projects,” it
reminded the regulator. “Additionally, it is consistent with the purposes of NEPA for the Commission to also assess the indirect
impacts of upstream and downstream project-related activities and to disclose the greenhouse-gas emissions associated with
them,” the Sierra Club told the FERC. “The impacts from this project from and to climate change may also additionally affect
other issues already identified by FERC as pertinent to environmental review, such as endangered and threatened species,
water resources, fisheries, and wetlands, cultural resources and public safety,” it stated. “Louisiana state law also supports
consideration of climate change adaptation in the environmental analysis,” added the Sierra Club. “As previously noted, the
CP2 Project is located in a region highly susceptible to the effects of climate change, including the increased frequency and
severity of hurricanes. This, combined with sea level rise and associated storm surge, flooding and erosion risks, raise questions
on the safety and prudence of construction and operation of LNG terminals in this region,” said the filing from the Sierra Club.
12
Construction
The Arlington, Virginia-based company has also started building the Plaquemines LNG export facility at river mile-marker 55
on the west side of the Mississippi, about 30 miles south of New Orleans. However, the Plaquemines project is not so far
advanced as the first Calcasieu Pass plant. Venture Global also has a fourth project in the planning stage called Delta LNG.
Under the Venture Global plan, the second Calcasieu Pass (CP2) would include 18 liquefaction blocks, each with a nameplate
capacity of around 1.1 MTPA, four LNG full containment storage tanks, two marine loading berths, as well as on-site 1,440-
megawatt power generation facilities. The CP2 project would be built in two phases, with each phase to have 10 MPTA of
nameplate capacity, with Phase One constructing nine Trains, two tanks, a 720-megawatt power plant, two marine berths and
ancillary facilities. The project targets the start of Phase One construction activities for the second quarter of 2023 with the
first deliveries planned for the second quarter of 2025. Full commercial operations are scheduled to be achieved by mid-2026.
Source : www.lngjournal.com
ALGERIAN ENERGY COMPANY AND LNG EXPORTER SONATRACH

AMENDS NATURAL GAS SUPPLY AGREEMENT WITH ITALY
Algerian energy company and LNG exporter Sonatrach and Italian oil and gas company Eni have signed an amendment to the
contract for the sale and purchase of natural gas delivered to Italy. The signing came at a meeting held at Sonatrach
headquarters in Algiers to approve the changes to the contract first signed in 1977. The amendment to the gas sales contract,
which sets the commercial conditions for the delivery of natural gas for the gas year 2021-2022, was signed within the
framework of the review of projects involving Sonatrach and Eni. “The clauses define the principles of delivery by Sonatrach
to Eni of additional volumes into the Italian market,” said a statement without giving volume details or prices. “This amendment
reaffirms the commitment of the two parties to consolidate their existing relations and once again showed their willingness to
strengthen long-term cooperation,” it added. Sonatrach is one of the main suppliers of LNG and pipeline natural gas to Europe
and in February 2021 commissioned the Boosting III project. This venture involves the Hassi R'mel gas hub in Laghouat
province of central Algeria, which produces and supplies over half of the nation’s natural gas. The giant Hassi R’Mel field had
been in long-term decline but the $2-billion project will boost volumes during 2021 and beyond. The project will increase and
stabilize feed-gas supplies to the Mediterranean Coast from the Hassi R'Mel hub to the port of Arzew where one of the nation’s
two LNG exports plants are located. Algerian LNG exports have been falling in recent years and amounted to a combined
10.58 MT in 2020 from the Arzew plant and the second facility at Skikda, a decline of 13.5 percent. Italy received 2.14MT of
LNG shipments last year under its supply contract. The pipeline natural gas transported to Italy starts from the Hassi R'mel
hub and is supplied through the Trans-Mediterranean Pipeline from Algeria via Tunisia to Sicily and then onwards to the
mainland of Italy. Algerian gas volumes to Italy amounted to 14.8 Bcm in 2020, an increase of 12 percent compared with
2019. Source : www.lngjournal.com
13
WORLD ENERGY INVESTMENT REPORT PRAISES QATAR LNG
EXPANSION AND EXPECTS RUSSIAN AND US PROJECT SPENDING
Global investment in energy is set to rebound by nearly 10 percent during 2021 to $1.9 trillion, reversing most of last year’s
drop caused the Covid-19 pandemic, with Qatar and its LNG expansion praised by the International Energy Agency in its
annual investment report. The Paris-based IEA said in the “World Energy Investment” report said that Qatar makes a “strong
statement of intent” with its move to expand LNG capacity. “Qatar’s decision to move ahead with the world’s largest LNG
expansion, and to include carbon-capture technologies in this investment, is a strong signal of its intent to maintain a leadership
position in LNG,” said the IEA in launching the report. The IEA said there were signs that spending by some global oil and
gas companies was also starting to diversify. IEA analysis suggested capital spending by the industry on cleaner energy
investments suggests it could rise from 1 percent to 4 percent in 2021. “LNG liquefaction investment dropped by more than a
third in 2020 but is expected to grow by more than two-thirds in 2021 to over $23 billion,” said the report. “Qatar, Russia and
the United States are set to pick up construction project activity, although the outlook remains very uncertain in Mozambique
due to security concerns,” explained the report in the section on LNG and natural gas pipelines.
Market signals
The IEA said that market signals for LNG picked up in late 2020, with a sharp rebound in prices due to colder weather across
Asia, a drop in nuclear and coal in Japan and South Korea, and unplanned outages of LNG plants. The report noted that the
announcement in February 2021 of a final investment decision for Qatar Petroleum’s 33 million tonnes per annum North Field
East expansion, gave the go-ahead to the largest single LNG project by capacity ever sanctioned. On the LNG import side,
there are nearly 200 billion cubic metres of regasification capacity under construction worldwide. “Despite construction delays
due to Covid-19 and project specific issues, a pipeline of new projects, particularly in Asia, is aiming to ensure that infrastructure
is in place to satisfy anticipated growth in demand,” added the EIA. The report also covered other sectors such as oil and gas
upstream upstream, electricity and renewables. Oil and natural gas investment is expected to rebound by about 14 percent in
2021 to nearly $710Bln in 2021 after dropping by 25 percent last year. Upstream spending will rise even as the hydrocarbons
industry remains under strong pressure from the pandemic and from energy transition idealogues. “The oil and gas industry
has never seen a year like 2020, and the reverberations are still being felt in the finances and strategies of companies across
the sector,” said the EIA. “After a sharp decline in 2020, our bottom-up analysis of publicly announced oil and gas company
spending plans shows an 8 percent increase in upstream spending in 2021, taking the total spending to over $350Bln, but
this remains well below 2019 levels,” added the report.
Power sector
Power sector investment worldwide is set to increase by around 5 percent in 2021 to more than $820Bln, its highest ever
level, after staying flat in 2020.“Renewables are dominating investment in new power generation capacity and are expected
to account for 70 percent of the total this year,” stated the IEA. The rising share of renewables in new power generation
14
investment has been accompanied by a sharp drop in approvals for new coal-fired power plants, which are some 80 percent
below where they were five years ago. “However, there was a slight increase in go-aheads for new coal-fired projects in
2020. This was largely due to China, where the government lowered restrictions on building new plants, giving a green light
for construction in more provinces,” stated the IEA. “Cambodia, Indonesia and Pakistan were other countries where coal-fired
final investment decisions (FIDs) picked up in 2020,” added the EIA. Those three countries together approved almost 5
gigawatts (GW) of new coal capacity in total. In India, the amount approved dropped below 1 GW, its lowest level in a decade.
The IEA report also stated that the $750Bln that is expected to be spent on clean energy technologies and efficiency worldwide
in 2021 “remains far below what is required” in climate-driven scenarios. Source : www.lngjournal.com
JAPAN AND OTHERS FILL LNG FINANCE GAP LEFT BY SOME WESTERN
BANKS
Japanese and Chinese banks will be providing the project financing for many oil and gas projects and liquefied natural gas
ventures as some European banks, led by French bank Société Générale, prefer to bet on funding experimental new energy
ventures and renewables rather than hydrocarbon resources required for the next 30-odd years and more. The largest Japanese
bank, Mitsubishi UFJ Financial Group, has just taken over the financing advisory role for a medium-scale LNG export project
in the Canadian Atlantic province of Nova Scotia, run by Pieridae Energy. Japanese and Chinese financial institutions, as well
as Asian and Middle East banks, are showing continuing willingness to fill financing gaps for LNG and other natural gas and
oil projects. At the same time, many companies are finding bank lending themselves on their own account as their credit
ratings improve. However, some European and US banks, even those bailed out by taxpayers and governments after the 2008
financial crash, are now shunning oil and gas for renewables and experimental fuel projects. The project financing switch has
already occurred for the Arctic LNG II project under construction in Russia. The project in Siberia is led by Russian natural
gas company Novatek and several partners, including France’s TotalEnergies and Japanese and Chinese companies. Banks
from China and Japan and some in Europe have been keen to invest in the Russian LNG venture to supply natural gas to
Asia for the next 30 years. The decision by Toronto Stock Exchange-listed Pieridae to hire the largest bank in Japan as its
advisor for LNG project financing came after previous advisor Société Générale had committed itself to phase out new oil and
gas financing.
Shares jump
Pieridae, based in Calgary in the Canadian province of Alberta, saw its shares surge 5 percent to C$0.42 (US$0.35) after
the withdrawal of the French and the arrival of the Japanese to organise project financing. Société Générale is France's third-
largest bank and only the seventh largest in Europe and said in September 2020 that it preferred to invest mostly in renewable
energies aligned with the objectives of the Paris Agreement. It had previously been a front-rank investor in LNG. “Société
Générale is embarking on a new decisive stage in its climate strategy to strengthen its leadership in the energy transition
15
alongside its clients and to align all of its activities with the objectives of limiting global warming as defined by the Paris
Agreement,” declared the bank. The bank confirmed it had stopped providing support to both the Goldboro LNG plant proposed
by Pieridae and a separate project, Québec GNL, the liquefaction venture in the French-speaking Canadian province of
Québec. The Paris-based bank has set itself precise sector-by-sector alignment targets for each of its financing portfolios,
starting with the most carbon-intensive sectors. It also plans to have limited exposure to shale oil and gas production in North
America by 2023.
Capital
Pieridae will now rely on Mitsubishi-UFJ Bank to help raise the project financing of around US$8 billion for its proposed
Goldboro LNG plant in Nova Scotia. Pieridae’s Golboro LNG plant, which will sell volumes to Uniper Global Commodities, the
marketing arm of German utility Uniper, is expected to be constructed at a site in Nova Scotia, located about 250 kilometres
northeast of the provincial capital Halifax. It will include two liquefaction Trains with each producing 4.8 million tonnes per
annum of LNG. The production from the first Train has been sold to Uniper on a 20-year binding contract with a 10-year
extension. “Pieridae owns three deep-cut gas plants, allowing it to control costs and the value chain to supply Goldboro LNG,”
said the company. “The interconnectivity of these facilities allows for options such as future consolidation of volumes. The
entire pipeline infrastructure exists and is all under-utilized,” Pieridae added. Pieridae’s assets returned to strong production
averaging 44,800 barrel of oil equivalent per day in the quarter, a 17 percent increase from the prior quarter. Annual production
increased from 22,397 barrels of oil equivalent per day in 2019 to 42,000 boe/d in 2020, an increase of 88 percent. The
three gas plants, Jumping Pound, Caroline and Waterton have a combined capacity of 750 million cubic feet per day but
operate at just 420 million cubic feet per day. The Nova Scotia Mi’kmaq First Nation tribe and Pieridae continue to have a
dialogue to discuss First Nation participation as an active partner in the Goldboro LNG project. “This agreement with Pieridae
is an example of how companies can respect our Mi’kmaw Rights and Title, and also provide an opportunity for Mi’kmaq
participation in development on our lands,” Pieridae cited the First Nation as saying in its latest presentation. Source : www.lngjournal.com
TANZANIA MAY START BUILDING $30 BILLION LNG PROJECT IN 2023

Tanzania plans to begin the construction of a delayed $30 billion liquefied natural gas project in 2023, following the resumption
of talks with companies including Equinor ASA. Construction is expected to take about five years, Energy Minister Medard
Kalemani told lawmakers on Thursday. The project gained momentum after President Samia Suluhu Hassan took office in
March, and directed her administration to fast-track delayed investments. Plans for an LNG plant on Tanzania’s southern coast
and a pipeline connecting offshore fields have been under consideration since 2014. Talks, however, stalled for more than a
year under Hassan’s predecessor John Magufuli. The announcement on construction of the project comes months after Total
SE suspended work on a similar plan in neighboring Mozambique following insurgent attacks. Tanzania’s project, which has
lagged Mozambique, is set to benefit from Hassan’s push to boost investment and accelerate economic growth in a nation
where policy uncertainty had stifled business. Hassan ordered the resumption of negotiations with the companies in May, about
16
four months after Equinor’s decision to take a $982 million impairment on the project following failure to settle fiscal and
commercial terms with Tanzania. “We expect to conclude negotiations for a host government agreement and review production
sharing agreements” by the end of June 2022, Kalemani said. The government has finalized compensation procedures with
more than 600 residents of the southern Tanzanian town of Lindi to pave way for the project, he said. Tanzania and the
companies are discussing a proposed two-train onshore LNG plant to export gas from the East African nation. Other project
partners include Royal Dutch Shell Plc, Exxon Mobil Corp., Sophi Energy Ltd. and Pavilion Energy Pte Ltd. Separately, the
government is building a pipeline network to connect and distribute gas to more than 10,000 homes and factories, mostly in
the commercial hub of Dar es Salaam, Kalemani said. Tanzania and Mozambique have for more than a decade been sub-
Saharan Africa’s foremost gas frontier-investment destinations after explorers found more than 100 trillion cubic feet of the
resources in their territories. Mozambique’s projects, with companies including Total, Eni SpA and Exxon Mobil and a projected
investment of at least $60 billion, are threatened by an insurgency in the nation’s gas-rich regions. Source : www.bloomberg.com
TECHNOLOGY: DUAL-FUEL LNG TRUCK ENGINES

Long-distance road haulage faces significant challenges when it comes to batteries. The key
problem is the size and weight of the batteries required to deliver sufficient range. The large size
leaves insufficient space and capacity for cargo haulage to be profitable, while recharging
infrastructure remains limited. In contrast, the low cryogenic temperature at which LNG is stored
means it has sufficient energy density to deliver long driving ranges – up to 1,600 km. Compressed
natural gas (CNG) appears the best option for passenger autos running on gas, and is generally
favoured for city distribution trucks, refuse collection and for urban and suburban buses (where
electrification is also an option), but when it comes to regional and international transport, LNG is
a mass-scale, alternative fuel deployable today. Europe saw a 60% jump in the number of LNG
refuelling stations in 2020 from 250 to 400. This reflects the growing number of natural gas-
fuelled vehicles, particularly CNG and LNG-fuelled trucks; 6,802 new gas-powered truck registrations were made last year,
according to industry association NGVA Europe.
LNG engines – intrinsically cleaner

LNG engines are internal combustion engines (ICEs) based on existing designs for diesel and gasoline engines. Diesel ICEs
produce particulate matter (PM), a major contributor to local air pollution. This is the result of diffusion combustion, where the
oxidizer and the fuel are separated before being burnt, which tends to lead to incomplete combustion and the production of
soot. Diesel ICEs also produce NOx because they are lean burn – i.e. the diesel is burnt with an excess amount of air and,
as nitrogen is the main component of air, NOx production tends to be higher than for a rich burn engine. Both NOx and PM
are treated post-combustion in the exhaust system, but because this after-treatment is imperfect, there is usually a trade-off
17
between the level of NOx and PM emitted into the environment. LNG, even if injected as a liquid, vaporises quickly and mixes
with air to provide much more complete combustion. PM emissions are negligible. This has an important knock-on effect
because, as there is no trade-off between PM and NOx, the combustion and after-treatment processes can be optimised to
reduce NOx emissions. Carbon emissions are also lower for the simple reason that LNG contains less carbon than diesel.
CH4 (methane/natural gas) has a carbon to hydrogen ratio of 1:4, whereas diesel has a carbon to hydrogen ratio of about
1:1.75, although this varies depending on the season and in different markets and between suppliers.
Pilot fuel
LNG is difficult to use alone in a compression ignition engine because it has a low cetane value. The cetane value represents
ignition delay, or the time between the start of injection and the increase in pressure in the engine cylinder.
This is why a small amount of pilot fuel – diesel – is used to create first phase combustion in a compression ignition LNG
engine, which provides a rapid build-up of pressure, sufficient to allow second phase ignition of the LNG/air mix.
While LNG has a low cetane value, it has a high octane value, which reduces pre-ignition or ‘knocking’. Pre-ignition usually
results in incomplete combustion and therefore PM emissions. As a result, the only PM emissions from dual fuel compression
ignition LNG engines result from the small amount of pilot fuel used. Diesel compression ignition engines have gone through
multiple stages of innovation and development to improve efficiency and reduce emissions, the two most important developments
being turbocharging and the shift from single injection points to multiple injection points. Although LNG use presents new
challenges, both innovations can be applied to LNG compression ignition dual fuel engines, promising increased efficiency and
lower emissions in the future.
Reducing methane slip

According to LNG truck manufacturers, such as Sweden’s Scania, CO2 emissions reductions from LNG engines can reach up
to 20%, compared with diesel engines, operating in optimal conditions. But studies, for example the Sustainable Gas
Institute’s Can Natural Gas reduce emissions from transport? show that real-life GHG reductions are lower, depending on the
specific engine type, mode of operation and level of methane slip. Methane slip is an area which has improved significantly
since the first LNG engines came on to the market and some older GHG emissions studies for road transport do not reflect
the performance of modern engine designs. Methane slip, like diesel’s PM emissions, is the product of incomplete combustion,
leading to some methane escaping through the exhaust system. Methane is a considerably more potent GHG than CO2 ,
18
particularly if its effect is measured over a 20-year as oppose to 100-year period. Marine
engine manufacturer and developer Wärtsilä notes that it has cut methane slip from its dual
fuel engines by 85% since 1993. It says there are a range of ways in which methane slip can
be further reduced, mainly by focusing on engine designs which result in faster and more
complete combustion. Wärtsilä believes its next combustion concept will reduce methane slip
by more than 50% to around 1 gram per kWh. The first LNG engines had methane slip of
about 16 g/kWh.
Bio-pathway
However, LNG engines’ GHG reductions see a step change when combined with biomethane
liquefied to form bio-LNG, also known as liquid biomethane. This can be used in the same
engines and with the same infrastructure without new modifications. Using 100% bio-LNG can
result in CO2 emission reductions of up to 90%, compared with diesel, according to Scania,
but a more likely prospect is for the share of bio-LNG in road transport fuel to rise gradually,
to allow sufficient time for an expansion in biomethane production.
For dual fuel engines, there are also options for replacing the pilot diesel fuel, for example with hydrogenated vegetable oil or
biodiesel (Fatty Acid Methyl Ester). NGVA Europe says that more than 25% of gas refuelling stations in Europe are already
providing biomethane and that its use amounts to 17% of all gas used as transport fuel in the region. As the number of CNG
and LNG vehicles rises, it may prove difficult to sustain or increase this percentage even if the absolute volume of biomethane
rises. Nonetheless, NGVA Europe forecasts that by the end of the decade, there will be about 10,000 CNG and 2,000 LNG
stations in Europe, and that the proportion of biomethane will have risen to an average 40%. Source : www.naturalgasworld.com
DISCLAIMER: The news, opinions, reports, updates and data or views contained on the Reports page may not represent the opinions or views of CYGNUS ENERGY, ITS OWNERS, ITS employees or its agents or affiliates. CYGNUS ENERGY makes no representation, warranty or guarantee as to
the accuracy or completeness of the information contained in any News, Research, Analysis or Opinion provided by this service. the information has been taken and credited and cited to the sources as per the citation given in the report/newsletter herein. Under no circumstances will CYGNUS
ENERGY, its owners, employees, gents or affiliates be held liable by any person or entity or institution or company for decisions made or actions taken by any person or entity that relies upon the information provided here. While every care has been taken to ensure that the information in this
publication is accurate, CYGNUS ENERGY, can accept no responsibility for any errors or omissions or any consequences arising therefrom. Figures are based on latest available information, which is subject to subsequent revision and correction. The views expressed are those of CYGNUS ENERGY
and do not necessarily reflect the views of any other associated company. NEWS AND SOURCE: LNGWORLDNEWS, LNG INDUSTRY, NATURAL GAS WORLD, LNG JOURNAL, RIVIERAMM , THE HINDU BUSINESS, ARGUS MEDIA, PETROWATCH, REUTERS, IGU LNG REPORT, TRADEWINDS,
MONEYCONTROL,LNG JOURNAL, RIVIERAMM,
CYGNUS ENERGY
Gas & OIL
118 Connaught Rd W, Sai Ying Pun, Hong Kong
sandp@cygnus-energy.com (SALE N PURCHASE)
gas@cygnus-eneryg.com (GAS PROJECTS)
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LNG NEWS WEEKLY DATE 04th JUNE 2021

PETRONAS STARTS TO MOVE ON ITS THIRD FLNG UNIT NEWBUILDING

IVORY COAST SEEKS OFFERS FOR FSRU TO SUPPLY LNG

MARANGAS SWOOPS ON LNG OPTIONS AT SHI

DYNAGAS DOUBLES UP ON LARGE LNG CARRIER NEWBUILDINGS AT

INTERNATIONAL GAS UNION BACKS LNG-FUELLING AS BEST

RUSSIA’S FIRST LNG BUNKER BARGE COMPLETES SEA TRIAL

FIRST STUDY MEASURES METHANE EMISSIONS FROM LNG CARRIER

GHANA’S TEMA LNG COMMISSIONING LIKELY DELAYED

Expanding LNG map

Unlocking market on schedule

ARGENTINA TO BOOSTS LNG IMPORTS IN MAY, POTENTIAL FSRU EN-

Additional tenders for extra LNG

Second FSRU required

CHENIERE-SHELL TRADE EUROPE’S SECOND CARBON-NEUTRAL LNG

New FERC rules

ALGERIAN ENERGY COMPANY AND LNG EXPORTER SONATRACH

TANZANIA MAY START BUILDING $30 BILLION LNG PROJECT IN 2023

TECHNOLOGY: DUAL-FUEL LNG TRUCK ENGINES

LNG engines – intrinsically cleaner

Reducing methane slip

MONEYCONTROL,LNG JOURNAL, RIVIERAMM,

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