In this issue

 

Wednesday, 01 February 2017

Egypt and Jordan joined the LNG-buyers’ club by using an FSRU in 2015, which offers a faster, cheaper alternative to land-based regas terminals. In the long run Egypt will develop the Zohr gas field, but in the short-term, it remains reliant on LNG to meet its natural gas demand. At odds, around 82% of the Jordan’s electricity is currently generated via imported LNG and there is still upside – making both countries an outlet for spot LNG cargoes from the United States. 

Uncertainty and speculation about US President Donald Trump’s connection with Russia has been fuelled by his appointment of Rex Tillerson, the former ExxonMobil CEO, as Secretary of State. This choice brings public scrutiny to an “exaggerated Russia and ExxonMobil connection”, says Anna Belova, GlobalData’s senior oil & gas analyst. 

Wednesday, 01 February 2017

Just like Egypt, Jordan’s gas needs far exceed its production and supply from Egypt has been interrupted since a 2011 blast that destroyed the pipeline linking Jordan with Egypt. Looking for an alternative, secure option to import natural gas, Jordan arranged with Golar to set up the country’s first FSRU Eskimo at the port of Aqaba in May 2015, underpinned by a 5-year SPA with Shell.

Australia’s Texas LNG, the midscale LNG projects planned for the port of Brownsville, has entered into its second marketing phase after signing up customers from China and Southeast Asia. 

Lake Charles-based 8 mtpa Magnolia LNG, under development in Louisiana, has signed a Heads of Agreement (HoA) with Vessel Gasification Solutions Inc. (VGS) in relation to shipping cargoes to India. The non-binding HoA between Magnolia and VGS stipulates a future free-on-board (FOB) Sale and Purchase Agreement (SPA) over 20 years of up to 4 mtpa, half of the planned initial capacity at the Louisiana plant. 

Is it cheaper to pay for the price spikes of spot LNG cargoes during the winter season or for building new pipelines in New England? That is the key question to solve surging gas-to-power demand in this unique corner of the United States. 

NextDecade, the US project developer run by former Shell executive Kathleen Eisbrenner, has signed land agreements for a 1,000 acres site with deep water access to the Gulf of Mexico at Shoal Point, Texas, for the development of a “multi-billion dollar” LNG export facility. 

The Point Comfort near-shore LNG project in Calhoun County, Texas., run by Lloyds Energy Group, has submitted an application to the US Department of Energy (DoE) to export shipments to countries with a US Free Trade Agreement (FTA). 

Wednesday, 01 February 2017

Air Products, a leading US LNG equipment maker, has made a takeover approach to Yingde Gases – the largest gas services company in China. With this move, Air Products seeks to expand its foothold in this key market in Asia after completing a company overhaul.

Australia’s Liquefied Natural Gas Ltd, whose ventures include the Magnolia LNG plant in Louisiana and the Bear Head facility planned for Nova Scotia, has been asked by the Australian Securities Exchange (ASX) to explain reasons behind the 23% surge of its shares. 

A project aimed at importing liquefied natural gas cargoes into the UK natural gas market at the port of Barrow-in-Furness in Cumbria, northwest England, from Louisiana on the US Gulf Coast is still alive after an offtake agreement was extended to November 2017. 

Swing supply sets the price of oil and significantly influences that of natural gas. Though OPEC members seem to have finally overcome internal rifts and are starting to implement production cuts – the cartel has lost much of its clout to US wildcats drillers who have effectively emerged as the new price-setters. A marginal recovery in oil prices can prompt American shale drillers to produce more liquids as well as shale gas that helps underpin an expansion of US LNG exports.

Wednesday, 04 January 2017

To quote an American saying – and President-elect Donald Trump just got lucky with the discovery of the vast Wolfcamp Shale in Texas that holds oil and gas reserves worth up to $900 billion.

Manzanillo, a regasification plant at the Mexican Pacific Coast, has recently received a few cargoes from Sabine Pass. Cheniere, having exported it first cargo to Manzanillo in August for $4.23/mmBtu, has sent out another cargo in October and one more in November. Yet, such shipments will abate – they will be priced out by pipeline gas deliveries once the 12 new interconnectors are up and running.

News Nudges

Boost in tonne-mile figures

Shipping observers anticipate a surge in tonne-mile figures as more and more of America’s shale gas gets liquefied and exported. Poten & Partners’ analysis of the first 26 Sabine Pass export shipments reveals that every 1 million ton of cargo exported requires 1.75 ships. On this basis, the new US projects will require a total fleet of 113 ships.


1st US cargo reaches Japan

JERA says it believes that “buying US LNG will contribute to a stable energy supply in Japan by diversifying supply sources and LNG price indices.” The 50:50 joint venture of Tepco and Chubu Electric, brought the first US LNG cargo to Chubu's Joetsu regas terminal on January 6, following a one month voyage from Louisiana via the Panama Canal.