In this issue

 

Gaztransport and Technigaz (GTT), the French maritime storage tank technology company, said it received an order with three options from Samsung Heavy Industries of South Korea to equip a floating storage and regasification unit being built for Norwegian shipping line Hoegh LNG. 

Our Middle East editor

Egyptian Petroleum Minister Tarek El-Molla said the country was paying less than the global price for shipments of liquefied natural gas received in recent months from worldwide suppliers and has been extended better payment terms for future cargoes. 

Nakilat Shipping Qatar Ltd, a subsidiary of Qatar Gas Transport Co., has taken back a fifth ship as part of an agreement with Shell International Trading and Shipping to return management of Nakilat’s LNG fleet to Qatari hands. 

Our Europe editor

Royal Dutch Shell is helping to advance the project to introduce the world’s first liquefied natural-powered dredger to operate in the port of Rotterdam after signing a bunkering agreement. 

Our North America editor in New York

Eagle LNG Partners, the company with plans to develop liquefaction and export facilities on the banks of the St Johns River in Jacksonville, Florida, has formally filed its application with the US Federal Energy Regulatory Commission. 

The Penco-Lirquen LNG import project in the South American nation of Chile, with plans to ship US cargoes from Texas, has had its environmental permits suspended by the Chilean Supreme Court because of a breakdown in communication with indigenous people in the area. 

Israeli East Mediterranean company Delek Group, with plans to supply natural gas to Jordan, Israel, Egypt and the Palestinian Authority has signed an agreement to acquire Canadian company Ithaca Energy for US$525 million. 

Our North America editor in New York

The US Center for Liquefied Natural Gas, the trade association for LNG producers, shippers and terminal operators and developers, said the nation was now currently awash with natural gas and would have no problem meeting domestic needs as well as rising LNG exports. 

Williams Partners, the US pipeline company, said regulators have authorized the Atlantic Sunrise expansion project, an expansion of the existing Transco gas pipeline to connect abundant Marcellus shale-gas supplies with markets in the Mid-Atlantic and Southeast US where LNG export plants are being developed. 

Our Asia-Pacific editor

Japan said the average price of spot liquefied natural gas cargoes contracted in January jumped to its highest level in almost two years to reach $8.40 per million British thermal units, a rise of $1.30 per MMBtu compared with the $7.10 per MMBtu price logged in the same month a year ago. 

Hindustan LNG and AG&P plan to site facility in Andhra Pradesh

Our Asia editor

Atlantic, Gulf and Pacific Co. of the Philippines, the LNG infrastructure and modules supply company, has signed an accord to supply and import plant and cargoes for power stations in the East Godavari region of the state of Andhra Pradesh on the East Coast of India. 

Our Asia-Pacific editor

Marubeni Corp., the Japanese trading house and liquefied natural gas player, said it was advancing with a gas-to-power project in Indonesia that will involve the deployment of a floating storage and regasification unit (FSRU) to ship in LNG. 

Chiyoda Corp. of Japan, one of the leading global liquefied natural gas engineering and construction companies, has taken a $335 million hit on the setting up of its first subsea business in 2016. 

Our Asia-Pacific editor

Royal Dutch Shell sold more than 57 million tonnes of liquefied natural gas in 2016, though earnings from the volumes were lower and only partially offset by the start-up of the Gorgon LNG project in Australia as income from all of the Integrated Gas division dropped 27 percent to $3.70 billion from $5.05Bln in the previous year. 

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.