|
Anthony Chiarello,
president and CEO of Tote, Inc., will be the opening-day keynote speaker. He
will review his company's experiences with LNG technology.
|
|
Golar LNG
Partners LP ( GMLP ) will begin trading ex-dividend on August 01, 2013. A
cash dividend payment of $0.515 per share is scheduled to be paid on ..
|
|
Petronet's Dahej LNG
import and regasification terminal processed 129.5 Trillion British thermal
units of gas in Q1 as against a volume of 127.17 TBtus in the ...
|
|
Dow Chemical Co.
supports exporting LNG to countries with which the United States has
free trade deals in place, but the company advises caution on the issue ...
|
|
Petronet LNG on
Tuesday reported a 17% drop in its June quarter net profit on account of
lower margins. April-June quarter net profit at R225 crore was lower ...
|
|
PORT ARTHUR — An
Open House designed to educate the community about Golden Pass' Products
plans to expand the company's LNG terminal drew a ...
|
|
NEW DELHI, July 30
(Reuters) - India's Petronet LNG is in talks to offer up to 18 percent
stake in its Gangavaram terminal project to a strategic partner, its
Chief .
|
|
NEW DELHI: Petronet LNG
Ltd (PLL), India's importer of liquefied natural gas, has reported 20.4% drop
in its net profit at Rs 225 crore in the first quarter of ...
|
|
In the contracted
work, which has already started, Lloyd's Register will identify technical
specifications, LNG bunkering procedures, and development of
crew ...
|
Wednesday, July 31, 2013
Additional Articles and Posted that might be of interest - Wordsmith
July 31, 3013
Articles and Posted I found interesting last night - Wordsmith
|
New Delhi: Petronet LNG
is in talks to offer up to 18 per cent stake in its Gangavaram terminal
project to a strategic partner, its chief executive A.K. Balyan said ...
|
||
|
HAMILTON, BERMUDA,
Jul 29, 2013 (Marketwired via COMTEX) -- Teekay LNG Partners L.P.
(Teekay LNG or the Partnership) (NYSE:TGP) plans to release its ...
|
||
|
ISLAMABAD: Only
after the government of Pakistan has started seriously proceeding on
controversy-hit Pak-Qatar LNG multi-billion dollars deal, the
concerned ...
|
||
|
Looking at the
universe of stocks we cover at Dividend Channel, on 8/1/13, Golar LNG
Partners LP (NASD: GMLP) will trade ex-dividend, for its quarterly ...
|
||
|
He estimates there
is $55 billion in capital coming into the Canadian LNG sector over the
next few years...and the spending spree in western Canada is starting ...
|
||
|
Petronet LNG's
earnings before interest, tax, depreciation and amortisation (EBITDA) may
rise 5.3 percent Y-o-Y to Rs 457 crore during the quarter while ...
|
||
|
CLEVELAND, July 30,
Jul 30, 2013 (Menafn - GLOBE NEWSWIRE via COMTEX) --Chart Industries, Inc.
GTLS, a leading independent global manufacturer of ...
|
||
|
The Wilgas loaded
the supercooled natural gas at the Huelva LNG terminal in southwestern
Spain, data on the website of network operator Enagas SA (ENG) ...
|
||
|
Dolat Capital
expects Petronet LNG to report a 4.9 percent growth quarter-on-quarter
(degrowth of 5.1 percent year-on-year) in net profit at Rs 257.1crore.
|
||
|
Less than a decade
ago, the conventional wisdom was that the United States would become
increasingly dependent on imports of liquefied natural gas (LNG).
|
Fracking Boom Sends Chemical Tankers to Five-Year High - Hellenic Shipping News Worldwide
Posted - July 31, 2013 - Hellenic Shipping News Worldwide
The boom in U.S. natural-gas supplies is boosting chemical exports to Asia, driving up demand for specialized ships that carry the products and sending freight rates to a five-year high.
Earnings for tankers carrying 20,000 metric-ton cargoes in stainless-steel tanks will rise 12 percent to an average of $14,500 a day next year, the most since 2009, according to RS Platou Markets AS, the investment-banking unit of Norway’s largest shipbroking group. Analysts raised their estimates for shares of Stolt-Nielsen (SNI) Ltd., the biggest owner of the vessels, and expect them to rise 24 percent in 12 months, instead of 4.9 percent as recently as May 31.
Enlarge image Fracking Boom Sends Chemical Tankers to Five-Year High
Shares of Stolt-Nielsen, which operates 155 tankers, gained 20 percent to 138 kroner ($23.26) in Oslo this year and will reach 171.25 kroner in 12 months, according to the average of four analyst estimates compiled by Bloomberg. Photographer: Andrew Wheeler/Bloomberg
The 24 percent increase in U.S. natural-gas output over the past decade is cutting costs for the nation’s chemicals producers, who will boost exports of materials used in everything from paints to plastics to a record in 2013. China, the largest importer, is on course to buy more than ever, pushing fleet use to 87.2 percent of available transportation capacity this year and 89.8 percent in 2014, the highest since 2008, Platou estimates.
“This is wonderful because it will ensure there will be more demand and the trade leg is longer,” said Rohit Pattnaik, a Gurgaon, India-based analyst at Drewry Maritime Research, an industry consultant. “The impact of U.S. petrochemicals is going to be significant for the recovery of chemical tankers.”
Revised Estimates
The price of hiring vessels on 15 trade routes rose 5.8 percent to $66.60 a ton in the past year and is headed for the highest annual average since at least 1996, according to data from Clarkson Plc (CKN), the world’s largest shipbroker.
Shares of Stolt-Nielsen, which operates 155 tankers, gained 20 percent to 138 kroner ($23.26) in Oslo this year and will reach 171.25 kroner in 12 months, according to the average of four analyst estimates compiled by Bloomberg. Just two months ago, they were anticipating a gain to 144.80 kroner. The London-based company’s profit will almost double to $116 million next year, the most since 2008, the average of 10 estimates shows.
Demand for chemical tankers will advance 3.6 percent this year while the fleet expands 2 percent, according to Ardmore Shipping Corp. (ASC), an owner of three of the vessels in Cork, Ireland. Shipments from the U.S. rose 4.6 percent to a record 13.8 million tons in 2012 and will be higher again this year, according to Drewry.
Gas Slump
Cargoes are increasing because natural-gas output in the U.S. rose to 2.48 trillion cubic feet in April, the highest for the time of year on record, Energy Department data show. Production was 2 trillion cubic feet a decade ago.
The expansion drove down the fuel’s price by 78 percent from its peak in 2005, improving margins for chemical makers using gas-based feedstocks. Plants using ethane to make ethylene, a component for detergents and plastics, are earning $1,034 a ton. Margins for European manufacturers using naphtha, a refined oil product, are less than half that because crude is only 27 percent below its peak in London trading, Bloomberg Industries data show.
While shipments to Asia may increase, U.S. plants already anticipated gains and major new capacity additions aren’t scheduled to finish until 2015, said Bill Bryant, Stolt-Nielsen’s managing director for Middle East and Africa, who has worked in the chemicals industry for more than 20 years.
Chinese Growth
Slowing growth in China could also hinder gains in freight. The world’s second-largest economy will expand 7.5 percent this year and next, the weakest since 1990, according to the average of 57 economist estimates surveyed by Bloomberg. The 17-nation euro area will contract 0.6 percent this year, the same as in 2012.
The improving U.S. economy could also increase domestic consumption of chemicals. Growth will quicken to 2.7 percent next year, the fastest in eight years, according to 79 economist estimates compiled by Bloomberg.
The chemical-shipping market has a smaller glut than crude-oil tankers and dry-bulk carriers because owners ordered fewer new vessels before the 2008-09 recession. Contracts with shipyards peaked at 26 percent of existing capacity in 2008, compared with 48 percent for oil tankers and 74 percent for bulkers, according to data from IHS Fairplay, a Redhill, England-based maritime research company.
Double Costs
The $14,500 daily rate predicted by Platou would be double what the ships need to cover expenses including crew, insurance and repairs, according to data from Moore Stephens LLP, an industry consultant. Rates for supertankers and Capesize iron-ore carriers averaged less than their operating costs this year. The ClarkSea Index, a gauge of industrywide earnings, is headed for its worst year since at least 1990.
Chemical tankers, about 550 feet long, carry more than 500 products including alcohols for solvents, aromatics for paints and sulfuric acid for insecticides. The U.S. is the largest exporter of organic chemicals, accounting for about 25 percent of volumes, according to Ardmore. China is the largest importer, the American Chemistry Council says.
The Asian country purchased an average of 4.61 million tons of chemicals a month between January and May, a 3.8 percent increase from the same period in 2012, according to Clarkson. Last year’s average of 4.38 million tons a month was an annual record.
The second-largest chemical tanker owner is Odfjell SE (ODF), with 96 of the vessels, according to its website. Shares of the Bergen, Norway-based company rose 13 percent this year and will gain 33 percent in 12 months, the average of five analyst estimates compiled by Bloomberg shows.
Ton-Mile Demand
Ardmore plans to order six more tankers and to sell 10 million shares for between $15 and $17 each, the company said in a stock-sale prospectus on July 22.
American exports to Asia boost fleet use because the voyages are longer than those from Persian Gulf suppliers, increasing what the industry calls ton-mile demand, or cargoes multiplied by distances. Each additional million tons shipped at the expense of Middle East exporters increases the industry’s average voyage duration by 0.25 percent, Platou estimates.
“U.S. gas will have an impact on providing cheap feedstocks,” said Rikard Vabo, an Oslo-based analyst at Fearnley Securities AS whose recommendations on shipping companies returned 11 percent in the past year. “That could be shipped to the Far East, which will generate substantial ton-miles. There’ll be continued growth in fleet utilization coming up every day.”
Source: Bloomberg
Post to be found at:
http://www.hellenicshippingnews.com/News.aspx?ElementId=3c5a667b-3ef9-4436-9620-fdf0b3353221&utm_source=newsletter&utm_medium=email&utm_campaign=daily
The boom in U.S. natural-gas supplies is boosting chemical exports to Asia, driving up demand for specialized ships that carry the products and sending freight rates to a five-year high.
Earnings for tankers carrying 20,000 metric-ton cargoes in stainless-steel tanks will rise 12 percent to an average of $14,500 a day next year, the most since 2009, according to RS Platou Markets AS, the investment-banking unit of Norway’s largest shipbroking group. Analysts raised their estimates for shares of Stolt-Nielsen (SNI) Ltd., the biggest owner of the vessels, and expect them to rise 24 percent in 12 months, instead of 4.9 percent as recently as May 31.
Enlarge image Fracking Boom Sends Chemical Tankers to Five-Year High
Shares of Stolt-Nielsen, which operates 155 tankers, gained 20 percent to 138 kroner ($23.26) in Oslo this year and will reach 171.25 kroner in 12 months, according to the average of four analyst estimates compiled by Bloomberg. Photographer: Andrew Wheeler/Bloomberg
The 24 percent increase in U.S. natural-gas output over the past decade is cutting costs for the nation’s chemicals producers, who will boost exports of materials used in everything from paints to plastics to a record in 2013. China, the largest importer, is on course to buy more than ever, pushing fleet use to 87.2 percent of available transportation capacity this year and 89.8 percent in 2014, the highest since 2008, Platou estimates.
“This is wonderful because it will ensure there will be more demand and the trade leg is longer,” said Rohit Pattnaik, a Gurgaon, India-based analyst at Drewry Maritime Research, an industry consultant. “The impact of U.S. petrochemicals is going to be significant for the recovery of chemical tankers.”
Revised Estimates
The price of hiring vessels on 15 trade routes rose 5.8 percent to $66.60 a ton in the past year and is headed for the highest annual average since at least 1996, according to data from Clarkson Plc (CKN), the world’s largest shipbroker.
Shares of Stolt-Nielsen, which operates 155 tankers, gained 20 percent to 138 kroner ($23.26) in Oslo this year and will reach 171.25 kroner in 12 months, according to the average of four analyst estimates compiled by Bloomberg. Just two months ago, they were anticipating a gain to 144.80 kroner. The London-based company’s profit will almost double to $116 million next year, the most since 2008, the average of 10 estimates shows.
Demand for chemical tankers will advance 3.6 percent this year while the fleet expands 2 percent, according to Ardmore Shipping Corp. (ASC), an owner of three of the vessels in Cork, Ireland. Shipments from the U.S. rose 4.6 percent to a record 13.8 million tons in 2012 and will be higher again this year, according to Drewry.
Gas Slump
Cargoes are increasing because natural-gas output in the U.S. rose to 2.48 trillion cubic feet in April, the highest for the time of year on record, Energy Department data show. Production was 2 trillion cubic feet a decade ago.
The expansion drove down the fuel’s price by 78 percent from its peak in 2005, improving margins for chemical makers using gas-based feedstocks. Plants using ethane to make ethylene, a component for detergents and plastics, are earning $1,034 a ton. Margins for European manufacturers using naphtha, a refined oil product, are less than half that because crude is only 27 percent below its peak in London trading, Bloomberg Industries data show.
While shipments to Asia may increase, U.S. plants already anticipated gains and major new capacity additions aren’t scheduled to finish until 2015, said Bill Bryant, Stolt-Nielsen’s managing director for Middle East and Africa, who has worked in the chemicals industry for more than 20 years.
Chinese Growth
Slowing growth in China could also hinder gains in freight. The world’s second-largest economy will expand 7.5 percent this year and next, the weakest since 1990, according to the average of 57 economist estimates surveyed by Bloomberg. The 17-nation euro area will contract 0.6 percent this year, the same as in 2012.
The improving U.S. economy could also increase domestic consumption of chemicals. Growth will quicken to 2.7 percent next year, the fastest in eight years, according to 79 economist estimates compiled by Bloomberg.
The chemical-shipping market has a smaller glut than crude-oil tankers and dry-bulk carriers because owners ordered fewer new vessels before the 2008-09 recession. Contracts with shipyards peaked at 26 percent of existing capacity in 2008, compared with 48 percent for oil tankers and 74 percent for bulkers, according to data from IHS Fairplay, a Redhill, England-based maritime research company.
Double Costs
The $14,500 daily rate predicted by Platou would be double what the ships need to cover expenses including crew, insurance and repairs, according to data from Moore Stephens LLP, an industry consultant. Rates for supertankers and Capesize iron-ore carriers averaged less than their operating costs this year. The ClarkSea Index, a gauge of industrywide earnings, is headed for its worst year since at least 1990.
Chemical tankers, about 550 feet long, carry more than 500 products including alcohols for solvents, aromatics for paints and sulfuric acid for insecticides. The U.S. is the largest exporter of organic chemicals, accounting for about 25 percent of volumes, according to Ardmore. China is the largest importer, the American Chemistry Council says.
The Asian country purchased an average of 4.61 million tons of chemicals a month between January and May, a 3.8 percent increase from the same period in 2012, according to Clarkson. Last year’s average of 4.38 million tons a month was an annual record.
The second-largest chemical tanker owner is Odfjell SE (ODF), with 96 of the vessels, according to its website. Shares of the Bergen, Norway-based company rose 13 percent this year and will gain 33 percent in 12 months, the average of five analyst estimates compiled by Bloomberg shows.
Ton-Mile Demand
Ardmore plans to order six more tankers and to sell 10 million shares for between $15 and $17 each, the company said in a stock-sale prospectus on July 22.
American exports to Asia boost fleet use because the voyages are longer than those from Persian Gulf suppliers, increasing what the industry calls ton-mile demand, or cargoes multiplied by distances. Each additional million tons shipped at the expense of Middle East exporters increases the industry’s average voyage duration by 0.25 percent, Platou estimates.
“U.S. gas will have an impact on providing cheap feedstocks,” said Rikard Vabo, an Oslo-based analyst at Fearnley Securities AS whose recommendations on shipping companies returned 11 percent in the past year. “That could be shipped to the Far East, which will generate substantial ton-miles. There’ll be continued growth in fleet utilization coming up every day.”
Source: Bloomberg
Post to be found at:
http://www.hellenicshippingnews.com/News.aspx?ElementId=3c5a667b-3ef9-4436-9620-fdf0b3353221&utm_source=newsletter&utm_medium=email&utm_campaign=daily
Monday, July 29, 2013
LNG Demand to Outpace Production; Europe, Russia to Gain Share - valuewalk.com
Posted - July 29. 2013 - By Hira Shahnawaz Akhtar p Valuewalk.com
Post to be found at:
http://www.valuewalk.com/2013/07/lng-demand-production-russia/
Gas liquefaction and regasification plants require large-scale investments but gas companies such as Total SA (ADR) (NYSE:TOT) remain positive on gas prices and maintain a strong outlook for Liquified Natural Gas (LNG).
Total SA (ADR) (NYSE:TOT)’s
CEO Christophe de Margerie says that his company is planning to add
more LNG capacity after reaching its goal of 17 million metric tons a
year in 2017. In the earnings presentation
of Total SA for the year 2013, Christophe claimed that the global
demand for LNG will outpace the speed at which new capacity can be
constructed and brought online.
Figure 1: Supply and Demand of LNG as per Total SA
Source: Total Earnings Presentation 2012
Total forecasts LNG demand
The company forecasts global LNG demand
climbing to double existing and sanctioned liquefaction capacity by
2030, which would ensure continued need for new LNG projects.
Recent down slide in gas prices and
changes in global demand patterns due to the euro zone crisis has
created an ironic situation. Weak European energy demand has pursued and
the prices of pipeline gas have been on the decline. Furthermore,
ventures into new transnational pipeline projects especially for import
from Russia are on the rise.
All these factors have meant that
European net importers of LNG can re-export redundant LNG and sell it at
a reasonable profit to Latin American and Asian countries. ‘This turns
them into competitors of their own LNG suppliers in Qatar, Nigeria and
Algeria, as was particularly the case in 2012,’ explains Philipp
Chladek. An increase in these so-called EU LNG reloads creates
incentives for companies to increase spot trading of LNG and renounce
long-term contracts.
Figure 2: LNG Exports by Source, 1994-2012
Source: Bloomberg
Shifts in demand and supply of LNG
While the exports of LNG from the Middle Eastern nations were declining during 2012, following global demand stagnation, the exports from European nations like Belgium, Norway and Spain rose during the same period.
On the Eastern side of Europe, Russia
displays massive potential. Recent Russian contracts with China have
meant that Russia may become one of the largest LNG suppliers in the future.
China National Petroleum Corporation
(CNPC) has bought a stake in Novatek’s Yamal project, which aims to
export LNG from the Russian Arctic. Yamal project also includes the
construction of an LNG terminal in the Russian Arctic, enabling exports
from Russia to Asia through the Northern Sea.
Rosneft and Novatek are also challenging
Gazprom’s export monopoly for pipeline gas to profit from greater
flexibility and surging demand development in Asia.
US is also emerging as a prominent
exporter of LNG. Given the significant reserves of US plus the large
reserves in shale formations, US could outpace the Middle East for top
exporter position in LNG. However, lack of LNG terminals is the issue in
the current scenario. Further DOE approvals for terminal operators,
including Cheniere and Energy Transfer Equity, could increase total
capacity to as much as 5 trillion cubic feet (from 2.6 trillion), 32
percent more than the current capacity of Qatar.
It is expected that future prices of gas
will stay low due to the presence of copious shale reserves. Despite
the oversupply in this arena, LNG will continue to have a demand-supply
gap.
Figure 3: Gas Prices in the UK, US and Russia (USD/MCM)
Source: Bloomberg
This gap will be exploited by gas firms
in Russia and in the US. European firms will also benefit temporarily as
they can use mismatches between imports and local demand to resell gas
at high rates in a market which is always gas-deficient. In the
long-run, Russia can be expected to emerge as a significant leader in
the gas market with its humongous unexploited reserves.
Post to be found at:
http://www.valuewalk.com/2013/07/lng-demand-production-russia/
Subscribe to:
Posts (Atom)