In this issue

 

Woodside Petroleum, operator of two liquefied natural gas production plants in Western Australia, has completed the transaction with Australian resources company BHP Billiton worth up to US$400 million to acquire half of its gas assets in the offshore Scarborough field and the Carnarvon Basin for future LNG production.

Our Europe editor

UK company Ophir Energy has signed a joint venture agreement to develop the Fortuna floating liquefied natural gas project offshore Equatorial Guinea in West Africa with shipping company Golar and oil services firm Schlumberger to produce free-on-board cargoes priced at around $6 per million British thermal units.

The Dutch Port of Rotterdam said it would soon begin using a liquefied natural gas-powered dredging vessel, currently being built at the Barkmeijer shipyard in Friesland in northwest Holland, for service in basins of the port, one of Europe’s main LNG import terminals.

Our North America editor in New York

The US Center for Liquefied Natural Gas, a trade association of LNG producers, shippers and terminal operators and developers, has sent a letter to congressional leaders and the new administration of President-elect Donald Trump to move forward with on a new energy bill.

Our Europe editor

Inter-regional natural gas and LNG trade is set to grow by 45 percent over the next 10 years and by 70 percent through 2040 as overcapacity is gradually absorbed, new players enter the stage, incumbents are challenged and the market rebalances.

The International Energy Agency questioned whether shale-gas well productivity gains in the US that will underpin growing liquefied natural gas production could be maintained at current levels in areas such as the Marcellus Shale in the northeast US.

Russia should be well placed to take advantage of the world’s rising needs for natural gas, including from its Yamal LNG project in Siberia, but the problems facing the country’s gas industry are as big as the size of its resources, the International Energy Agency said its 2016 World Energy Outlook.

Our Europe editor

Qatar’s liquefied natural gas marketing company will supply 1.3 million tonnes per annum of cargoes to the largest gas power plant in Latin America being built in Sergipe, the smallest state in Brazil, located in the northeast of the country.

Black and Veatch, the US liquefaction technology and energy project company based in Kansas, said it was selected as owner’s engineer by Centrais Eletricas de Sergipe for the 1,516-megawatt combined-cycle, gas-fired power project in northeast Brazil, which will receive LNG cargoes from Qatar Petroleum marketing company Ocean LNG.

Governments of both West African nations support the plans and will sign a new accord

Our North America editor

Kosmos Energy, the US exploration and development company based in Dallas, said it was pushing ahead with developing its huge natural gas discoveries offshore Mauritania and Senegal, with plans including the deployment of two floating LNG production vessels and supplying domestic gas-fired power plants in both West African nations.

Our North America editor in New York

The Canadian province of British Columbia said the decision by the Asian-run Woodfibre LNG project to proceed and its full authorization means it will also be locked into using state-backed electricity and associated technology being pushed onto all liquefaction and export ventures.

PetroChina, the Chinese energy company and liquefied natural gas terminal owner, has commissioned new storage and regasification facilities at the Rudong import terminal, previously visited by British Columbia Premier Christy Clark.

Our Europe editor

Flogas Britain, the UK liquefied natural gas provider, and a unit of Norwegian company Stolt-Nielsen are working on a joint project to bring small LNG shipments to the eastern Scottish Port of Rosyth.

The US Federal Energy Regulatory Commission has issued a letter authorizing Cheniere Energy to proceed with commissioning of its third production Train at the Sabine Pass export plant in Louisiana, opening the way for the selling of more spot cargoes on the LNG market.

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.