In this issue

 

Our Europe editor

Eni Chief Executive Claudio Descalzi has held talks in the Mozambique capital Maputo with the southeast African nation’s President Filipe Jacinto Nyusi centred on the Italian energy company’s approval of investment in the Coral South floating LNG project.

Oil Search, the Australian-listed energy company with a stake in Papua New Guinea LNG and in natural gas resources to underpin a second project, said annualized production at the liquefaction facility near Port Moresby amounted to 89 cargoes shipped at the end of October.

Our Europe editor

ExxonMobil, the US major and a shareholder in the world's largest liquefied natural gas supply complex in Qatar, has joined a UK project to develop LNG bunkering infrastructure as well as storage and technical support in the north of Scotland.

Qatari LNG production company RasGas said it had delivered its first cargo to the newest French import terminal in the Channel port of Dunkirk as the facility ramps up its regasification capabilities for the European winter season.

An Australian oil and gas exploration, development and production company said it has made advances in its aim to produce Italian gas in 2017 from its Teodorico field in the Adriatic Sea offshore northeast Italy, giving the European nations much-needed supplies.

Our Asia-Pacific editor

Modec Inc., the Japanese maker of oil and natural gas production platforms and other energy industry equipment, has developed a floating power plant that uses liquefied natural gas as the fuel for electricity generation.

The main Spanish natural gas and LNG companies, Enagas and Gas Natural Fenosa, have launched a project with the state-run railway company Renfe to run Europe’s first locomotives powered by LNG.

Our North America editor in New York

ConocoPhillips said it was in the process of selling its Kenai liquefied natural gas plant in the state of Alaska, the first US liquefaction and export plant to come on stream in 1969 and which went on to export cargoes to Japan for 46 years.

Our Asia-Pacific editor

The Tokyo Commodity Exchange and the Singapore Exchange (SGX) have signed an agreement to cooperate in developing the liquefied natural gas derivatives and futures market in Asia.

The Japanese government-run LNG Producer-Consumer Conference in Tokyo has heard from a list of speakers focusing on moves to abolish destination clauses in contracts and facilitating LNG trading at the same time as improving energy security.

Woodside Energy Chief Executive Peter Coleman told the LNG Producer-Consumer Conference in Tokyo that the era of the 20-year supply contract was not yet over, even as Egypt alone has bought almost 100 spot cargoes so far in 2016.

Our Asia editor

Imports of liquefied natural gas to India continued to rise in 2016, surging by 18.6 percent in October compared with the same month a year ago, helped by slowly rising regasification capacity while LNG shipments continued to be limited by a lack of east coast terminals and nationwide pipeline infrastructure.

Japanese liquefied natural gas imports rose last month as did shipments of thermal coal for power generation as LNG cargoes from new production in Australia offset falls in volumes from the Middle East and Asia.

Norwegian player’s faith in FSRUs may be underscored with new orders

Our Europe editor

Hoegh LNG, the Norwegian fleet owner and floating storage and regasification unit charterer, posted a modest rise in third-quarter profits as the Latin American state of Colombia became an importer using the FSRU “Hoegh Grace” and a Chilean project prepared to take another ship.

News Nudges

Cove Point LNG makes progress

The US Cove Point LNG export project in Maryland, owned by Dominion Energy, is almost 75 percent complete, according to the latest progress report filed with the Federal Energy Regulatory Commission. The existing import terminal on Chesapeake Bay is being transformed into a liquefaction plant and is scheduled to come on stream in 2018. “At the terminal, work continued on modifications to the existing plant in the areas of the jetty platforms and tie-in scope,” said Dominion. “Construction activities conducted during the January period included preliminary commissioning activities for new compressor units and associated equipment, final building completion activities, and earthwork for corrosion protection and electrical grounding,” it added.


Awilco LNG earnings

Awilco LNG, the small Norwegian fleet operator in the spot market, said the positive trend seen in the fourth quarter of 2016 persisted into 2017 as charter rates West of Suez further improved to $52,000 per day while East of Suez rates was reported at $38,000 per day. “Despite high activity and increasing spot market rates, the short-term and mid-term time charter rates have only slightly improved,” said Awilco as it reported lower full-year freight income of $34.8 million compared with $37.4M in 2015.


Golar raising market funds

Golar LNG, the global LNG fleet operator and floating storage and regasification unit specialist, is raising up to $400 million by selling a form of bond, Convertible Senior Notes due in 2022. Golar is offering $350M of the paper in a private placement to institutional buyers and with $52.5M added, depending on demand.