Wednesday, February 19, 2014

News and other Items of interest

Ichthys LNG celebrates FPSO keel laying
 
LNG Industry - The Ichthys LNG (liquefied natural gas) project, operated by Inpex, has celebrated a key milestone for its FPSO (floating production, storage and ...
 
 
DailyFinance - Sempra Energy has joined the exclusive ranks of fully approved U.S. LNG exporters. In the lower 48 states there are plans to export more than 35 .
 
 
LNG Industry - Louisiana LNG Energy has filed an application with the US Department of Energy (DOE) for long-term authorisation to export liquefied natural gas ..
 
 
The ₹4,320-crore Ennore LNG import terminal project, coming up at Ennore Port near Chennai, has gathered pace with the Petroleum and Natural ...
 
 
The Australian - The final three of the 82 modules which will be joined to form the first LNG train (processing unit) are being completed and over 90 per cent have been ...
 
 
The Globe and Mail - The framework for a tax regime for LNG is not expected to unlock a flood of final investment decisions – industry is likely to wait until legislation is ...
 
 
Zacks.com - Golar LNG Limited (GLNG - Snapshot Report) could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the ..
 
 
Wall Street Journal - SINGAPORE, Feb. 18, 2014 /PRNewswire/ -- Prices of liquefied natural gas (LNG) for March delivery to Asia gained 3.2% from February, averaging a ...
 
 
NewHampshire.com - NORTHUMBERLAND — A proposal to build a $100 million liquefied natural gas (LNG) production facility is making town leaders bullish on the future
 
Bloomberg - Profits from liquefied natural gas, or LNG, projects will be taxed at an initial rate of 1.5 percent, Michael de Jong, finance minister for the nation's ...
 
 
 
  

China Looking at Role in Cyprus LNG Plans - Maritime Executive

Posted - February 18, 2014 - Maritime Executive

China is looking at playing a role in Cyprus' multi-billion-dollar plans to develop the island's natural gas reserves, including possible investment in a liquefied natural gas (LNG) export terminal.

Cyprus hopes to attract large investors to take a stake in its gas fields, an option which a Chinese delegation is in Cyprus to discuss.
"There is very strong interest from China... in energy, in the whole value chain, upstream, downstream and midstream," Cypriot Energy Minister George Lakkotrypis told Reuters on Tuesday.

He said the Chinese delegation includes China Shipbuilding Industry Corporation.

He said delegates were interested in the development of an LNG export terminal, including potentially a floating LNG facility (FLNG).

"The Chinese delegation will also discuss taking a stake in Cypriot gas fields," a source with the delegation told Reuters.

China is seeking to access new gas sources around the world as its energy demand rises and the government encourages industry to move to cleaner gas from coal.

ITALY ALSO INTERESTED

Italian energy major ENI is also interested in Cyprus' gas fields, and is set to sign a memorandum of understanding (MOU) with the government over the construction of an LNG export terminal.

ENI has already signed an exploration and production-sharing contract with the government to search in three offshore areas, with exploration expected to begin in the second half of this year.

In hopes gas can buoy the economy, which was rescued by an international bailout in March 2013, Cyprus has been planning the Vasilikos LNG export plant since U.S.-based Noble Energy discovered the Aphrodite field.

The estimated $10 billion needed to build the LNG export terminal and infrastructure would be the largest investment in the island's history.

However, the project was thrown into doubt when drilling results revealed smaller reserves than initially hoped.

Mean reserve estimates were reduced to 5 trillion cubic feet (140 billion cubic meters) from 7 tcf, which is not enough to justify building the LNG project unless more gas is found.

The plans also face opposition from Turkey, which has said it would oppose any attempt to pre-sell Cypriot gas before a settlement over the divided island is found.

Cyprus's Greek and Turkish communities have been estranged since 1974, when Turkey invaded the island's north after a brief Greek-inspired coup, though the seeds of partition were sown years earlier, soon after independence from Britain in 1960.

Cyprus's partition is a headache for the European Union. The island is represented in the EU by its Greek Cypriot side, which has veto-wielding rights over Turkey's wish to join the bloc. 

By Henning Gloystein and Michele Kambas (C) Reuters 2014.

Post to be found at:
http://www.maritime-executive.com/article/China-Looking-at-Role-in-Cyprus-LNG-Plans-2014-02-18/

Swedish shipping company orders LNG vessel - Hellenic Shipping News Worldwide

Posted - February 19, 2014 - Hellenic Shipping News Worldwide

Erik Thun is designing one of the first dry cargo vessels with LNG powered pulpulsion.

Together with ship yard Ferus Smit and class society Lloyds Register we designing and building a Dry Cargo vessel in Holland. The design process is ongoing and keel lying will happen after summer with delivery in August 2015.
http://www.futureshipping.se/thun-lng-drycargo-infosheet.pdf

Post to be found at:
http://www.hellenicshippingnews.com/News.aspx?ElementId=4fdd4ea4-d41b-4849-a133-7a48262f8262&utm_source=newsletter&utm_medium=email&utm_campaign=daily

Tuesday, February 18, 2014

News - Posts and Items of Interest

Chart and Westport LNG fuel systems are 'top products'
 
LNG Industry - Chart LNG and Westport LNG truck fuel systems have been recognised by the editors of Heavy Duty Trucking (HDT) as two of their Top 20 Products

Finland orders LNG fueled icebreaker
 
Marine Log - FEBRUARY 17, 2014 — Finland's Arctech Helsinki Shipyard has now received an order, which has been in the works for quite a while, for the Finnish ..

Govt likely to invite fresh tenders for LNG supply
 
PakTribune.com - ISLAMABAD: Another tender for the supply of liquefied natural gas (LNG) is on the cards as the Ministry of Petroleum and Natural Resources is ...
 
 
Businessweek - State-run Egyptian Natural Gas Holding Co. is in the “final stage” of reviewing three offers for rental of a regasification unit that would permit LNG ...
 
 
The Motorship - US companies Pivotal LNG and WesPac Midstream have announced their selection by shipping company TOTE to provide LNG supply facilities for ..
 
 
LNG Industry - Douglas Westwood has released a report that poses the question, 'Could Methane Hydrates Challenge LNG in Japan?' While the shale gas boom ...
 
 
CBC.ca - "LNG's kind of this mystical thing. You know, everybody talks about LNG, but nobody really understands what's involved in producing LNG," said ...
 
 
24 Hours Vancouver -How did LNG become the political equivalent of LSD in British Columbia? Today's provincial budget will mostly be about what a high time B.C. is ..
 
 
MarineLink - Claimed by the Port of Zeebrugge to be the world's first LNG fuelled tugboat, the M/T Borgoy was refuelled recently in the Belgian coastal port in a ..
 
 
Oil & Gas Journal - The US Department of Energy conditionally approved LNG exports from the Cameron LNG LLC terminal in Louisiana to countries that do not have a ..  
 
 
 

Mitsui O.S.K. to Invest Billions in Floating LNG Regasification and FPSOs - Bloomberg

Posted - February 18, 2014 - Bloomberg - Chris Cooper - ccooper1@bloomberg.net; Kiyotaka Matsuda- kmatsuda@bloomberg.net

Mitsui O.S.K. Lines Ltd. (9104) plans to invest as much as 400 billion yen ($3.9 billion) in deep-sea gas production and transportation to revive profitability amid a glut in the bulk shipping market.
The world’s largest merchant fleet operator, which announced its first floating storage regasification plant in October, is targeting as many as five more by the fiscal year starting April 2020, Takeshi Hashimoto, a managing executive officer at the energy and offshore business, said in an interview in Tokyo yesterday. Mitsui O.S.K. will also partner in floating production ship projects, Hashimoto said.
Mitsui O.S.K. aims to tap soaring demand for liquefied natural gas as resistance to nuclear energy grows following Japan’s nuclear disaster and pollution concerns hamper coal plants. The Tokyo-based company is focused on LNG as investments in vessels to haul coal and iron-ore weighed on earnings after excess supply of the ships dragged down freight rates.
“Deep-sea investments are the new highlight of Mitsui O.S.K.’s strategy,” Hashimoto said. “There’s less competition because of the high investment costs, technical skills involved, and need for financing.”
Mitsui O.S.K. has forecast a return to profit this fiscal year with net income of 57 billion yen as a weaker yen helps push up the value of revenue from dollar contracts. The company posted a loss of 179 billion yen in the 12 months ended March.
Shares of Mitsui O.S.K. jumped 3.4 percent, the most since Feb. 7, to close at 424 yen in Tokyo today. Rival Nippon Yusen K.K. gained 1.6 percent, while Kawasaki Kisen Kaisha Ltd. (9107) rose 1.7 percent.

‘Cheaper, Quicker’

Mitsui O.S.K.’s floating storage regasification unit, or FSRU, will be built by Daewoo Shipbuilding & Marine Engineering Co. (042660) and is for a project in Uruguay, the line said in October. The unit will cost about 40 billion yen, Hashimoto said.
“It’s cheaper and quicker to build a regasification unit at sea than on land,” he said. “There’s no need to buy the land. There’s also no need to negotiate with residents in the area, because it’s offshore.”
Mitsui O.S.K. is also aiming to double its floating production, storage and offloading vessels, known as FPSO, to 10 from five, by fiscal 2020, Hashimoto said. The FPSO units each cost about $1 billion to $1.5 billion and so the company will partner with Japanese companies to split the cost, he said.
The shipping line is focusing on LNG as global demand is set to increase as developing countries step up consumption to meet their energy needs, Hashimoto said.
Global LNG trade is set to increase 31 percent from 2012 to 2018 as a record number of projects from the U.S. to Australia come to fruition, according to the International Energy Agency’s medium-term market report, published in June.

China Demand

China’s appetite for gas will double by 2018 as Asia’s biggest economy seeks to replace dirty coal-burning power plants, International Energy Agency forecasts show.
“The share of gas as a source of energy is going to increase,” Hashimoto said. “It’s becoming increasingly difficult to increase nuclear use after Fukushima and there are problems with sulfur oxides and nitrogen oxide emissions with coal. Emerging economies are increasingly going to start choosing LNG as they build facilities.”
The shipping line announced in December it was partnering with Mitsui & Co. (8031), Marubeni Corp. (8002) and Modec Inc. (6269) on a floating production and storage unit off the coast of Brazil.
Nippon Yusen is also targeting deep-sea gas and oil to boost profits. The line, which last year announced its venture won a contract to operate two FPSO vessels from a group led by Petroleo Brasileiro SA (PETR4), has said it may double its FPSO fleet to six by 2020.

Post to be found at:
http://www.bloomberg.com/news/2014-02-17/mitsui-o-s-k-targets-3-9-billion-in-deep-sea-gas-investments.html

Monday, February 17, 2014

LNG tanker explosion would be as powerful as 50 atomic bombs - Hellenic Shipping News Worldwide

Posted - February 17, 2014 -   Hellenic Shipping News Worldwide - Malta Independent

The total energy released in the event of a liquefied natural gas tanker exploding would be as powerful as 50 atomic bombs, an engineer claimed yesterday. Stanley Zammit, who is also a Birzebbuga PN local councillor, made the claim when speaking at a press conference convened by PN MEP candidate, and human rights lawyer, Therese Comodini Cachia. The information could, said Mr Zammit, be easily found online.

He said that the residents of Birzebbuga and Marsaxlokk are not against cheaper utility rates and cleaner air, but they are very concerned over the added risk they will be facing once the floating storage unit (FSU) – a modified tanker that stores liquid gas – will be anchored in the middle of Marsaxlokk port.

“The government has begun working on a strategic project without having a strategic plan”, said Mr Zammit. “How will this project affect the local plans? Why did Enemalta stop considering a pipeline or an offshore storage unit? At a public meeting a few days ago, all the Enemalta executives said was that these would not be viable because of the government’s timeframe and budget. At this same meeting, it was confirmed that a gas cloud could ignite with devastating consequences. This project is being pushed forward too quickly and the planning is weak.”

Mr Zammit also referred to The Malta Independent’s report quoting the concerned captain of the FSU saying that the wave patterns could pose serious risks to the ship. “Who has legal jurisdiction over the ship? What if the captain decides that the ship should be moved? Will he be the one to decide?” Mr Zammit said that strong waves could jeopardise the LNG refuelling process, which is very delicate and has to be done at a temperature of minus 162 degrees Celsius.

He also called on the authorities to answer other relevant questions, such as how the project will affect fishermen and insurance premiums on nearby property and fishing boats. “What will happen to the National Fireworks Festival and to barbeque areas that the public can enjoy today? Ninety-one per cent of Marsaxlokk and Birzebbuga residents are against the inshore FSU. How will they be affected?”

Mr Zammit said that the FSU can be placed far away from land. He mentioned the Livorno LNG plant, where the FSU was anchored 22 miles away from the power plant. He also said that a similar project in Trieste had been scrapped because the authorities had failed to supply all the relevant information.

Insurance companies informing clients their properties are losing value

Mrs Comodini Cachia told members of the press that she has already been approached by a number of people who have been advised by their insurance companies that the value of their Marsaxlokk and Birzebbuga properties will be falling because of the project and the risks attached to it.

The MEP candidate also spoke about The Malta Independent story and said that the captain of the FSU had confirmed residents’ concerns. “We have learnt that the captain himself is worried about the wave patterns and insisted on a breakwater. But this will not happen. The government is not listening to the captain and it is not listening to the residents of Marsaxlokk and Birzebbuga. That is bad administration.”

Mrs Comodini Cachia said that the FSU will not be self-propelled and, in the event of an emergency, it would have to be towed out of the port. The ship will be carrying 160,000 cubic metres of LNG.

“Residents have a right to know what is going on before decisions are taken. They have a right to know how their lives will be affected. They also have a right to know if there are any alternatives to this project. What inconveniences will they have to face? What concerns will they have to live with?” The human rights lawyer, who grew up near Birzebbuga, expressed her concern at the fact that the area where parents take their children to swim will be put at risk.

She also insisted that businesses could be affected and the value of property will fall. “But first and foremost, I believe in people’s right to health and safety. This is not about keeping within timeframes and budgets: this is about people’s lives.”

The MEP hopeful also questioned the government’s choice of having an onshore re-gasification unit and a floating storage facility when these could have been included in one single unit. She asked whether the FSU could place other fuel storage facilities, and the Malta Freeport, at risk. “An explosion aboard the FSU could damage the power station – the country’s single source of power generation. The whole country would be in the dark and we would not even be able to produce drinkable water.”

The government-appointed Consultative Council for the South should also pitch in and advise the government, but it has remained silent so far, Ms Comodini Cachia pointed out.

Malta Freeport demanding guarantees

The Malta Independent yesterday revealed that the Malta Freeport will be demanding guarantees from the Government and Electrogas because of concerns on the FSU that will be placed so near to its terminal. Sources claimed that, while Electrogas may have ironed out some of the concerns raised by the captain of the floating facility, levels of concern on the security of the operation are being sounded by different entities in the area. Amongst these is The Malta Freeport that is reportedly considering the matter legally and will be demanding guarantees on the security of the operation.

Malta could be forced to pay back interconnector funds

In the meantime, in an article published today in this newspaper, PN MEP candidate Stefano Mallia warns that the EU could withdraw funds allocated for the Malta-Sicily interconnector because, with the construction of the LNG plant, it will hardly be used.

Mr Mallia points out that, in the 18-year power purchase agreement, the government has agreed to a penalty clause if a minimum threshold of electricity is not bought. “This condition alone jeopardises the investment made for the electricity interconnector with Sicily. This is why the interconnector will now only be used at just 20 per cent capacity. This fact is leading to serious doubts as to whether the EU will accept that it provided some €20 million for a project that will now de facto almost become redundant.”

According to Mr Mallia, informed sources are saying that the EU could ask for these funds to be returned if it feels that the original scope of the project is being discarded.

The PN MEP candidate also questions whether Malta could also lose the funds allocated for a gas pipeline and warns that the on-land gasifier and floating storage combo is the first one of its kind and should, therefore, not be situated near built-up areas.

Source: Malta Independent 
Post to be found at:
http://www.hellenicshippingnews.com/News.aspx?ElementId=48a59111-b558-420a-949d-b61b681ef869&utm_source=newsletter&utm_medium=email&utm_campaign=daily

Friday, February 14, 2014

News Posts and other Items of Interest

LNG to play key part in Tuesday's provincial budget
 
Energeticcity.ca - With the federal budget presented this week, BC residents can now switch their focus, to next Tuesday's, provincial budget. Premier Clark revealed her ..

March 28th Options Now Available For Cheniere Energy (LNG)
 
NASDAQ - Investors in Cheniere Energy Inc. (Symbol: LNG) saw new options become available today, for the March 28th expiration. At Stock Options Channel ...
 
 
portworld - Demand for liquefied natural gas (LNG) is likely to drive any new developments in Russia's Baltic ports, according to a senior government official.
 
 
Yemen Post - As Yemen is looking for some closure following three decades of nepotism and widespread corruption, Yemen's LNG controversy has become the ..
 
 
Pique Newsmagazine - Vice president Byng Giraud said its early days for planning for the liquefied natural gas (LNG) plant and that many of the most important questions ...
 
 
Money Morning - Worldwide demand for liquefied natural gas (LNG) has doubled since 2000, and for investors looking to enter this burgeoning market, LNG shipping ...
 
 
The Express Tribune - Engro's LNG terminal, which will be located at Port Qasim, will be the first in Pakistan and follows multiple attempts to import LNG that were bogged ..
 
 
Baltimore Sun - Domestic natural gas supply has increased enough to reduce the wholesale price to well below what foreign markets would offer for it. So Dominion ..
 
 
Alaskajournal.com - JUNEAU — State legislators are continuing their review of the state's proposed deal with North Slope producers and TransCanada Corp. on a major ...
 
 
Reuters - Only a few LNG export projects have won a final investment decision over the ... plans would not affect the plant, given the booming demand for LNG