In this issue

 

KBR Inc., the US energy and LNG engineering company, said that in a decision involving a subsidiary, the United States Second Circuit Court of Appeals denied Petroleos Mexicanos (Pemex), Mexico's national oil and gas company, a petition for the rehearing of a judgment in favour of KBR amounting to more than $465 million.

Finland’s natural gas utility and development company Gasum has opened the nation's second LNG filling station, located at the southwest port of Turku as it builds a nationwide network.

Our Europe editor

Gas Natural Fenosa and the Spanish Gas Association are taking over as the General Secretariat of the International Gas Union (IGU) for a period of six years and the IGU headquarters will be based in Barcelona in the run-up to major LNG and gas industry conferences in Washington DC and Shanghai.

US natural gas marketed production is forecast to decline for the first time since 2005 and growing domestic gas consumption, along with higher liquefied natural gas exports and pipeline deliveries to Mexico, will contribute to the Henry Hub benchmark price rising.

Our North America editor in New York

Cheniere Energy is on its way to reaping the rewards of the liquefied natural gas industry and low US shale-gas prices as it reported a narrowing third-quarter loss as operations ramped up at its Sabine Pass LNG export plant in Louisiana where two processing Trains now on stream and the commissioning of Train 3 was well underway.

Our North America editor in New York

Dominion Resources said its Cove Point liquefied natural gas export plant on Chesapeake Bay in the state of Maryland was three-quarters built and on schedule for coming on stream in 2017 to supply customers from Japan and India.

Sempra Energy, the California utility and liquefied natural gas developer, said its Cameron LNG export project in Louisiana was facing construction delays because of heavy rains affecting work schedules and flooding at the fabrication yard near the Louisiana city of Baton Rouge.

Our Europe editor

Royal Dutch Shell said LNG sales volumes for the third quarter amounted to 15.23 million tonnes and were 54 percent higher than for the same quarter a year ago, mainly reflecting Shell’s enlarged portfolio after the acquisition of BG Group.

Royal Dutch Shell and energy partners from Singapore and the UK have started a drilling programme covering two wells as part of the possible development of a liquefied natural gas export project in the East African state of Tanzania.

Our Asia-Pacific editor

China Petroleum and Chemical Corp., known as Sinopec, has taken delivery of its first dedicated vessel to ship cargoes from the Australian Pacific LNG plant in the state of Queensland.

The Latin American state of Colombia could soon be receiving US LNG cargoes from the Sabine Pass plant in Louisiana as its first import facility prepares to start operations after the arrival of a Floating Storage and Regasification Unit at the northern port city of Cartagena on the Caribbean coast.

Our Asia-Pacific editor

Chevron Corp. and its Wheatstone LNG project partners in Western Australia will need to provide additional investment as completing the delayed venture is expected to cost US$5 billion more than expected.

LNG Ltd., the Australian LNG project developer, said it was continuing to follow a marketing-led strategy for its two North American export projects on the US Gulf Coast and Canada and believes it can satisfy the front part of the 2021-2022 demand window.

Belgian shipping company Exmar said it was continuing to discuss the acquisition by Royal Vopak of the Netherlands, the global petroleum storage company, of its LNG Floating Storage and Regasification Unit (FSRU) business.

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.