LNG port raises environmental and security concerns - LIHERALD.com

Posted - August 29, 2013 - By Ray Ellmer - LIHERALD.com

It’s been more than a month since hundreds of people attended a meeting at the Allegria Hotel to voice their opposition to a proposed liquefied natural gas terminal in the Atlantic Ocean, 17 nautical miles southeast of Jones Beach. If built, a pipeline extending from the station would hook up to an existing pipeline 2.2-miles south of Atlantic Beach.
According to Larry Ragonese, press director for the New Jersey Department of Environmental Protection, New Jersey Gov. Chris Christie has not changed his position on LNG terminals ever since he vetoed a similar proposal in 2011. “What he said on the record at the time hasn’t changed”, Ragonese told the Herald. “We haven’t had a change of heart.”
Christie’s veto letter stated that the project “would present unacceptable and substantial risks to New Jersey’s residents, natural resources, economy and security.”
The latest proposed station, Port Ambrose, is also a liquefied natural gas terminal, a deepwater port that imports and exports natural gas. It would allow enormous LNG vessels — as long as the Empire State Building is tall — to directly connect to the region’s natural gas system.
The port would be located near the entrance to the New York Harbor, in two active Coast Guard training areas; in the middle of a proposed offshore wind farm area, and among several fishing zones and wildlife migration routes. The port south of Jones Beach, and east of Monmouth Beach in New Jersey, would connect to an offshore pipeline two miles off Atlantic Beach.
 Liquefied natural gas is natural gas that has been super-chilled — it is clear, colorless and extremely volatile. This gas is compacted so that large volumes can be shipped overseas. LNG should not be confused with gasoline or compressed natural gas; each LNG tanker has the energy equivalent of 55 Hiroshima bombs. All LNG imports are from
foreign countries — over two-thirds of the world’s natural gas is in Russia and the
Middle East. Sources include Russia, Yemen, United Arab Emirates, Qatar, Algeria, Egypt, Nigeria and soon, Iran.
Port Ambrose is a direct threat to our domestic homeland security. This past week, U.S. Sen. Edward Markey called on President Obama to order the U.S. Coast Guard to review security procedures for shipments of liquefied natural gas from Yemen to terminals near Boston.
 And from an environmental position, there is a real concern that if Port Ambrose exports liquefied natural gas, there will be more pressure from the energy industry to permit hydraulic fracturing, or “fracking,” in New York.
Among the other environmental impacts: empty LNG tankers will destroy vast quantities of marine life by having to refill billions of gallons of seawater to replace liquid cargos that suck in trillions of fish, eggs, larvae, and other life. Additionally, the project would dredge up over 20 miles of a sea floor where thousands of tons of garbage were dumped from New York City barges in the 1960s, ’70s and ’80s — thousands of tons of toxic sediment in the ocean that would, if released, directly affect the water quality off the Long Beach barrier island. 
 The port would be vulnerable to the destructive forces of hurricanes and nor’easters. Even with the latest technology, equipment and strict federal regulations, there would be inevitable gas spills due mechanical failure and human error. The City of Long Beach will not receive any financial benefit from the LNG terminal
connection of a gas line that runs through Long Beach. There will be few, if any, jobs created from this project. The project has completed its scoping sessions in Long Beach and Edison, N.J.
An environmental impact statement will be issued and there will be more time for
further public input. I urge the Long Beach City Council, Nassau County, state and federal elected representatives to follow Governor Christie’s lead and demand that Governor Cuomo veto the Port Ambrose LNG project.

Ellmer is a Long Beach resident and a former co-chair of the city’s advisory committee on the proposed LNG terminal.

Post to be found at:
http://www.liherald.com/stories/LNG-port-raises-environmental-and-security-concerns,49510?content_source=&category_id=5&search_filter=&event_mode=&event_ts_from=&list_type=&order_by=&order_sort=&content_class=&sub_type=&town_id=

Oh to be big in LPG, and VLGCs, now that shale gas is here - Hellenic Shipping News Worldwide

Posted - August 30, 2013 -  Hellenic Shipping News Worldwide

The shale gas boom in North America is helping drive both returns for very large gas carriers (VLGCs) and interest in VLGC newbuildings towards record highs. Freight rates in the first five months of this year jumped by 75 per cent as charterers sought out the tonnage needed to move the growing volumes of liquefied petroleum gas (LPG) coming onto the market. Falling in the 75-85,000m3 size range, VLGCs are the largest LPG carriers afloat and the gas shipping industry’s workhorses when it comes to transporting large volumes of propane and butane over long distances. The 150-vessel VLGC fleet transports LPG as fully refrigerated cargoes.
Today the Middle East, traditionally the leading exporter of LPG by a wide margin, is using more of its gas output as feedstock for its own expanding petrochemical production. The rise in LPG exports from the US Gulf has come at just the right time as it is helping to compensate for falling Middle East shipments and offset any potential market disruption. It is also generating more tonne-miles, thus keeping VLGCs busy and shipowners happy.
Although some of the freight rate buoyancy recorded earlier in the year has eased slightly, average monthly earnings for VLGCs on 12-month time charters are still expected to clear the US$1 million mark this year. This is about 7.5 per cent higher than the 2012 average and 20 per cent above the breakeven mark. Spot rates have been as much as 50 per cent higher at various times over the first half of 2013.
The development of the newfound unconventional oil and gas resources in the US, much of which is rich in natural gas liquids (NGLs), is impacting the global energy and petrochemical industries. The increasing output is giving rise to rebounds in US chemical manufacturing and exports of refined products and LPG.
After a decade in which LPG imports outweighed imports, the US became a net exporter of LPG once again in 2011 and seaborne shipments are forecast to grow strongly in the years ahead. By the end of 2012 LPG export cargo loadings in the US had reached the 5 million barrels per month (bpm) level, about 50 per cent ahead of a year earlier.
Propane accounted for 90 per cent of this traffic and butane 10 per cent. With propane in Houston now costing about 60 per cent of that in Japan and the US market for propane currently oversupplied, it is not difficult to appreciate the overseas interest in US product.
Approximately 90 per cent of the US LPG export cargoes are shipped from Gulf Coast terminals, primarily to Latin America and Europe. Existing Gulf LPG terminals are being expanded and new facilities are being planned to cope with the growing export volumes. The terminal expansion projects are set to double the US LPG export capability, to 12 million tonnes per annum (mta), by 2015. Not surprisingly, Asian buyers are becoming increasingly interested in the VLGC cargoes originating in the US.
The opening of the enlarged Panama Canal in early 2015 will help trim the shipping costs associated with these long-distance deliveries. In terms of Panama Canal transits VLGCs are currently a borderline case. Only the smallest ships in the class, or about 20 per cent of the fleet, are able to utilise the Canal as it stands. The enlarged waterway will be able to accommodate the entire fleet.
Healthy VLGC freight earnings are expected to be sustained for at least the next two years due to the relatively small number of newbuildings entering into service over the period. In capacity terms the global VLGC fleet is set for net growth of about 12 per cent over the 2013-14 period, based on a vessel lifespan of 28 years. This is broadly in line with the anticipated increase in seaborne movements of LPG.
However, the unfolding attractiveness of the VLGC market has prompted a surge in newbuilding orders over the past year, including by some shipowners new to the sector. Shipbuilders currently hold contracts for a reported 35 VLGC newbuildings and many of the latest wave of orders come with options for further vessels attached. The level of contracting has been so brisk that the world fleet is set for another spurt in net growth in 2015-16, of getting on for 15 per cent at the very least.
Whether the continued growth in LPG production is going to be enough to keep a rapidly expanding fleet fully occupied and enjoying healthy rates of return beyond 2015 is a moot point. Industry watchers are urging constraint in deliberations on further newbuilding orders on the grounds that any additional VLGCs contracted at this stage would lead to overtonnaging and a fleetwide rates collapse.
Notwithstanding the threat of another bust cycle, bold shipowners see the current market situation as a golden opportunity. VLGC newbuilding prices are at historic lows and shipyard berth slots for early deliveries are available.
Furthermore, China is emerging to challenge the traditional dominance of leading Korean and Japanese shipyards in VLGC construction. Orders have recently been placed for the first VLGCs to be built in China, at very attractive prices.
Shipowners opting for new tonnage stand to gain in other ways, to the extent that the temptation to phase out older tonnage sooner rather than later is gaining ground. Today’s newbuildings are more eco-friendly than existing VLGCs, most notably in terms of fuel consumption.
Embracing the latest marine engine technology will result in reduced fuel bills and further savings will be gained through the application of improved hull lines, modern antifouling coatings and more efficient propeller/rudder arrangements. With fuel now accounting for over 50 per cent of operating costs, shipowners are more willing than ever to consider investments in measures that will reduce lifecycle costs.
Fleet renewal and fleet creation with fuel-efficient, high-quality VLGCs that are claimed to achieve savings in fuel costs of 15 per cent makes more sense than ever before.
Source: BIMCO

Post to be found at:
http://www.hellenicshippingnews.com/News.aspx?ElementId=1bcc17a7-10b9-4268-b96b-c65be8ecc9cd&utm_source=newsletter&utm_medium=email&utm_campaign=daily

What Investors Should Know about Today's New LNG Deals - Market Watch

Posted - Aug. 28, 2013, 3:35 p.m. EDT - Market Watch

Aug 28, 2013 (ACCESSWIRE via COMTEX) -- When the First Nations Group Limited Partnership (FNLP) signed its benefits agreement with the B.C. government and backers of the Kitimat LNG project for a proposed 463-kilometre pipeline earlier this year, Robert Metcs was in the background, smiling.

Metcs, the President of Havlik Metcs Limited, which represented the 15 First Nations in the FNLP, says the $200 million agreement is a new benchmark for how business can be done between government, industry and aboriginal peoples in Canada.

The proposed pipeline will carry liquefied natural gas (LNG) from Summit Lake north of Prince George to the proposed Kitimat LNG facility, as well as provide a number of economic opportunities for First Nation communities along the route.

Metcs said his job was to "go out and get the best deal we could," for the First Nations with Kitimat LNG project backers Apache Canada and Chevron Canada.

The Oil & Gas Investments Bulletin (OGIB) spoke with Metcs recently about negotiating with First Nations communities, and what investors should know about why some deals work out, while others don't.

OGIB: How does the process start when a company comes to a First Nation community? What's the right and wrong way to start a negotiation?

Robert Metcs: Traditionally, proponents would develop a project to a certain point and their lawyers would advise that there is a duty to consult with First Nations. That can work two ways. Most of the time what you are going to get on the other side of the table is a process that might lead to an impact benefit agreement, where there are some benefits through contracting opportunities, jobs and/or some form of payment over time. There is no real partnership. Or, you could have outright opposition and a pathway to litigation. That is where Northern Gateway looks to be now. It has become a symbol of how not to do consultation. I think that there is a widespread view out there that the traditional way of doing things is not serving anybody's interests.

OGIB: What are some good examples of negotiations with First Nations?

Metcs: A good example is the Haisla First Nation with their BC LNG project with Houston-based LNG Partners LLC. That company went to talk to the Haisla before they even started planning the project for a floating LNG facility, asking if they wanted to be partners. We are trying to do something similar with the LNG-related pipeline proposals, which is to go to the proponents and say that there is the opportunity for first Nations to be partners, that there is value to be created and that this is economically advantageous to you as a proponent and as a business person to have the First Nation on board. Let's sit down and figure out what this value is and how to make this work. There is a commercial benefit to getting First Nations on board as partners, and we are going to continue to try to explore that angle. What we have seen with LNG and natural gas is that many First Nations are willing to sit down and have this discussion within the context of a cost-benefit analysis. That does not appear to be the case with any of the oil pipelines.

OGIB: Why are the First Nations in your group in favour of natural gas pipelines, but not oil?

Metcs: I don't think that's an irrational position. One of the reasons we could do this deal was because the FNLP First Nations came to view natural gas as different from oil. The fear at first was that if they said yes to natural gas pipelines, they would have to say yes to oil pipelines. There was a diametrically opposed view with respect to natural gas and oil within FNLP. There are differences in terms of what happens if a pipeline leaks or bursts. Oil is a different animal, particularly along the BC coast and in the Interior. The cost benefit analysis appears to be in favour of natural gas and goes the other way in terms of oil. It's not the pipeline; it's what's in the pipe. What goes in them is a consideration.

OGIB: What are some of the misconceptions you think investors have about companies working with First Nations?

Metcs: That they are always opposed to everything. That you can't do business with them. That they don't live up to agreements. This is partly the media's fault. FNLP was a pretty unique deal. 15 First Nations said yes to a massive pipeline project, but the only question I seem to get is "What about oil?" You can talk about oil, but FNLP is an example of something that most people thought was impossible. Why it happened and whether it can be replicated are legitimate questions that should be asked.

OGIB: Help investors understand the cost-benefit analysis and why it worked out for the FNLP?

Metcs: The potential impacts of a project on rights and title and the environment are always going to be front and centre. You should be minimizing the impacts, which means doing things like rerouting from areas that are sensitive and respecting the legitimate concerns that First Nations will have. At the same time you should be trying to maximize things on a commercial basis. It's not about proponents taking money out of their pockets and saying 'How much of the pie are we going to give you?' One thing we learned from the FNLP deal was that you can create value by having First Nations as partners as this can reduce project risk, accelerate timelines, all of the things you can put a number on. That's real economic value that can be shared, so there's an upside for everybody to do this. You also have to remember that each First Nation is its own government with its own constituents. There's politics involved. The communities eventually need to make a decision, weigh the potential benefits against the potential impacts. The more attractive you can make that decision, the better. With FNLP, we got 15 Nations across the finish line. You aren't going to get a positive decision every time, but that's not irrational either.

OGIB: Is the FNLP agreement solid? Do investors have anything to worry about in terms of it falling apart down the road given this is all still a proposal?

Metcs: The only thing I can say is that, as in any agreement, we tried to align the interests of the parties going forward. With any agreement you can have circumstances change. There may be issues going forward, but I don't think there is any more danger of this agreement falling apart than there would be with any other agreement.

OGIB: What's next in terms of negotiations with First Nations and companies looking at natural gas and LNG projects in BC? 

Post to be found at:

http://www.marketwatch.com/story/what-investors-should-know-about-todays-new-lng-deals-2013-08-28?reflink=MW_news_stmp

Output from Nigeria, others, eases global LNG supplies - Business Day

Posted - August 29, 2013 - BY Editor - Business Day

Higher output of liquefied natural gas (LNG) from Nigeria, Algeria and Angola marks a turnaround from a period of volatile output in recent months, easing global LNG supplies.
LNG spot prices fell to $15.30 per million British thermal units (mmBtu) last week as African suppliers pumped out more cargoes in a spree of tenders aimed at Asian and Latin American buyers, reported Reuters.
A three-week naval blockade of Nigeria’s Bonny Island production facility crippled exports last month, but output has rebounded since and its first free-on-board tender has been successfully concluded.
Malaysia’s Petronas and BG Group have each won a cargo from the facility loading in early September, according to trading sources.
Angola’s new LNG plant also appears to have surmounted recent setbacks after exporting a third cargo, amid talk that a fourth cargo may be imminent before the facility shuts down for diagnostic tests.
Angola’s first cargo sailed to Brazil. The second was sold in a tender process to Chevron, the plant’s operator, which then re-sold it to China National Offshore Oil Corp. for around $16.20/mmBtu. Chevron is said to have paid $16/mmBtu for the cargo.
Angola’s third cargo was said to be heading to Japan.
But it is Algeria that has dealt traders the biggest surprise with a spree of tenders for spot and medium-term LNG supplies in recent weeks. Algeria’s state-run energy firm Sonatrach has launched several LNG sales tenders including for single cargoes, a six-cargo strip from October and a 12-month supply commitment, trade sources said.
Three tenders offered to global buyers is unusual for Algeria where falling gas production and a lack of upstream investment has reduced LNG output in recent years. But the country’s LNG output may rise after officials agreed to scale back piped gas deliveries to Italy, signalling a shift in export strategy for Africa’s biggest gas producer.
Japan has relied heavily on LNG to make up for the nuclear power capacity it lost after the 2011 tsunami, but utilities have recently been ramping up coal use to cut costs.

Post to be found at:
http://businessdayonline.com/2013/08/output-from-nigeria-others-eases-global-lng-supplies/

LNG - Australia - Two Posts

Two posts with reference to Australia -

LNG for transport not commercial: Caltex Gas Today Caltex Australia has stated it will not be pursuing plans to develop LNG for transport in the short-term. Speaking after Caltex's half year results presentation ...

UPDATE 1-Order-starved Cape pins hopes on Australia LNG Reuters Costs in Australian LNG development have rocketed, partly due to high wages and a strong currency, and so have put the brakes on development there over the ...

Import of LNG SSGC’s top priority: MD - The Nation

Posted - August 29, 2013-  Staff Reporter - The Nation

KARACHI - Sui Southern Gas Company Managing Director Zuhair Siddiqui has said that import of LNG is company’s top priority. He highlighted different hurdles and issues being faced by the company’s management in this regard.
He was giving the presentation to the Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi who visited SSGC head office for the first time after assuming the charge of the ministry. He was also accompanied by the Minister for State Jam Kamal Khan and Federal Secretary, MP&NR Abid Saeed.
Federal Minister gave suggestions and instructions to SSGC management for addressing these issues.
Focusing on other important developmental projects, MD SSGC informed that in Balochistan, Zarghoon Gas Pipeline Project will be completed during September 2013 and the cost incurred would be Rs 1.458 billion.
After completion of the said project around 25 mmcfd gas will be added in SSGC’s system that will be provided to Quetta city. The project consists of around 64 km long pipeline network.
The MD elaborated on other gas supply projects, which were completed during recent past or under completion.  He said that Jhal Magsi, Sinjhoro, Kunnar Pasakhi, Mehar, Rehman and Nar Baghla gas supply projects were completed against a cost of Rs. 3.432 billion, comprising of 291 km long pipelines that added around 235 mmcfd gas in SSGC’s system.
Managing Director informed the guests that during the last 5 years, company has succeeded, for the first time, to bring down its UFG by 2 percent. The Managing Director also explained the progress on SSGC’s Natural Gas Efficiency Project (NGEP).
The Federal Minister was also informed by the Managing Director about the huge receivables of Rs. 50.53 billion from KESC and Rs. 16.32 billion from Pakistan Steel Mills which are due since long. MD said that KESC is not acknowledging the late payment surcharge.
Later, the Minister and Secretary visited different departments that included 1199 Contact Center, IT’s Geographical Information System (GIS) and Data Storage Centre and expressed their satisfaction over the smooth management. 

Post to be found at:
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/29-Aug-2013/import-of-lng-ssgc-s-top-priority-md

Japan aims for lower LNG prices and possible new suppliers - UPI.com

Posted - Published: Aug. 27, 2013 at 1:53 PM - UPI.com

As part of its push for cheaper prices of liquefied natural gas and more sources for imports, Japan plans to host an LNG conference next month, a government official said.
"Reducing LNG costs is a crucial policy issue for Japan right now," Shinichi Kihara, who heads the natural resources and energy agency within the Minister of Economy Trade and Industry, was quoted as saying in The Australian newspaper. Kihara said that high gas prices coupled with record demand in the wake of the Fukushima disaster were hurting Japan's trade balance.
Delegates from potential new suppliers in Africa will be invited to the conference, along with traditional gas producers from Australia and the Middle East.
Japan is now the world's top LNG importer. In the 12 months ending March 2013 it imported 86.9 million tons of LNG.
The government aims to change the traditional pricing model of linking LNG's cost to oil for LNG imports, which dates back to the late 1960s.
Japan now pays $16 per thousand British thermal units for LNG, while the price in the United States was only $4, Kihara said. Factoring for the liquefaction process and transport, Kihara noted that the price from the United States jumps to $11 or $12, but "that's still 30 percent cheaper than what we are paying now," he said.
Buying U.S. shale gas was like purchasing from a "supermarket" at true market prices, he added.
The Australian report notes that the Japanese government is encouraged by the Obama administration's decision to issue an export permit for shale gas from the Freeport LNG project in the United States and is confident that permits will also be issued for the Cameron terminal in Louisiana and Cove Point in Maryland.
"That's going to change the game," Kihara said.
Furthermore, any success Japan may have in its attempts to change the LNG pricing structure could adversely affect Australia's LNG sector, which is facing massive cost increases.
Japan currently buys 70 percent of Australia's LNG exports. Australian LNG exports totaled $11 billion in 2010-11 but are expected to reach $30 billion in 2016-17.
A report by Japan's Institute of Energy Economics released earlier this month found that Japan is likely to continue to boost gas imports to record levels even if it restarts some of the country's stalled nuclear plants.
Japan's Nuclear Regulation Authority is reviewing applications from utilities to operate about a dozen of the country's 50 reactors, shut down in the wake of Fukushima.
But as Fukushima's crisis increasingly worsens, the fate of those applications is uncertain.

Post to be found:
http://www.upi.com/Business_News/Security-Industry/2013/08/27/Japan-aims-for-lower-LNG-prices-and-possible-new-suppliers/UPI-70951377626035/

Koch Supply & Trading Takes Nigerian LNG in Market Debut - Maritime Executive

Posted - August 28, 2013 - Reporting by Oleg Vukmanovic; Editing by Dale Hudson (C) Reuters 2013 - Maritime Executive

Koch Supply and Trading has bought six liquefied natural gas (LNG) cargoes of Nigerian origin and leased a tanker to carry the fuel, its first taste of spot LNG trading, trade sources said.

Volumes likely originate from Italian utility Enel's long-term capacity at Nigeria's Bonny Island LNG export facility, several traders said.

"We think this strip of cargoes may not have been bought directly from Enel. It could have been traded around a few times," a trade source said.

The deal was apparently concluded months ago but the cargoes will only start to be loaded onto ships from October for onward delivery.

The new entrant has also sealed its transportation needs with a year-long lease of the 152,300-cubic-metre-capacity Seri Bakti tanker at a rate of $82,000/day, shipping sources said.

Koch Supply and Trading was not immediately available to comment.

Koch set up an LNG trading desk in June last year with a focus on delivering cargoes to East Asia and Latin America, according to a company statement at the time.

New players are entering the LNG spot trading market as banks reduce their presence due to strict capital controls, while growth in traded volumes gives more traders space in which to operate.

Glencore Xtrata, Noble Group, Axpo and DufEnergy Trading recently set up LNG trading desks, joining trading giants Vitol, Gunvor and Trafigura , which made their move a few years ago.

Singapore's Temasek Holdings in April set up its own LNG arm, Pavillion Energy, with $1 billion of capital to invest in upstream projects, storage and import terminals.

Vitol, the world's biggest oil trader and dominant force in LNG among the trading houses, made its mark after securing deals to supply LNG to Kuwait, South Korea and Argentina, in addition to trading regularly on the spot market.

Gunvor bought 19 LNG cargoes from Peru in 2011 and has transacted spot business ever since, while Trafigura won a tender to supply 19 cargoes to Mexico this year.

The trading houses hope to exploit spot trading opportunities to Asia and Latin America at a time when dramatic price differences between geographic regions are fuelling profits.

Prices in Europe are at around $10 per million British thermal units and in the United States have sunk to about $4/mmBtu, while top LNG consumers in Asia and Latin America pay around $15.50/mmBtu.

Post to be found at:
http://www.maritime-executive.com/article/Koch-Supply--Trading-Takes-Nigerian-LNG-in-Market-Debut-2013-08-28/

FGE: US gas price sensitive to LNG exports - Oil & Gas Journal

Posted - HOUSTON, Aug. 27, 2013 - OGJ editors - Oil & Gas Journal


The future price of natural gas in the US depends greatly on development of LNG exports, the outlook for which remains unclear, says Facts Global Energy (FGE).
In an analysis comparing its projections for LNG exports with a base-case production forecast by the Energy Information Administration’s Annual Energy Outlook (AEO), FGE sees problems.
FGE’s LNG export expectations are much greater than EIA’s: 40 million tonnes/year in 2020 and almost 80 million tpy in 2025, assuming full utilization of capacity, vs. 5.5 million tpy in 2020 and almost 30 million tpy in 2030 in the AEO reference case.
Expected pipeline exports to Mexico plus LNG exports at FGE’s projected rates would absorb all incremental gas production in the AEO reference case.
“Obviously, this is an untenable outcome as there is no room for domestic demand growth,” FGE says. “It implies that Henry Hub prices must rise higher than the AEO reference-case projections both to incentivize domestic gas supply and ensure that domestic demand is adequately served.”
The AEO reference-case price projections are $4.87/MMbtu in 2025 and $5.40/MMbtu in 2030, with domestic consumption growing 0.7%/year during 2010-30.
“Given the large number of variables at play, it is challenging to nail down exactly how high Henry Hub could rise if LNG export capacity materializes as anticipated by FGE and is fully utilized,” FGE says.
The firm notes AEO’s scenario assuming high economic growth and low oil and gas resources shows Henry Hub gas prices rising to $6-7/MMbtu by 2030. But that scenario for economic growth assumes the addition of only about 35 million tpy of LNG equivalent to US consumption in comparison with the reference case.
“Clearly, if LNG exports increase by some 50 million tpy more than projected by the AEO, US gas prices could settle at a higher plateau—perhaps $7-8/MMbtu if domestic demand remains robust,” FGE says.

Post to be found at:
http://www.ogj.com/articles/2013/08/fge-us-gas-price-sensitive-to-lng-exports.html

Technip Awarded FEED for LNG Liquefaction Project in U.S. - Maritime Executive

Posted - August 27, 2013 - Maritime Executive

Technip was awarded by Trunkline LNG Export, LLC the front-end engineering and design (FEED) contract for the potential expansion of the existing liquefied natural gas (LNG) import terminal located in Lake Charles, Louisiana.

The potential expansion project includes a LNG liquefaction plant, with a total export capacity of up to approximately 15 million tonnes per annum, so that a portion of the vast additional supplies of natural gas produced from shale gas fields across the US can be exported to international markets. The total liquefaction capacity could be achieved through up to three identical trains, with associated utilities and offsite facilities as well as the re-use of the existing LNG offloading, storage and marine facilities. Air Products has been selected to supply its C3MR liquefaction process technology for this FEED study.

Technip’s operating center in Houston, Texas will execute the contract with the support from the Group’s center in Paris, France. It is scheduled for completion during the first half of 2014.

David Dickson, Technip’s Senior Vice President, North America Region, stated: “Adding liquefaction capabilities to the existing infrastructure would provide the option of switching from regasification to liquefaction, depending on the world market for LNG. This award constitutes the first LNG liquefaction FEED project for Technip in the US. It is also a true testimony of BG Group and its partners’ trust in our expertise as, after working for them in the subsea and offshore businesses, we are now expanding our collaboration to onshore.”

Post to be found at:
http://www.maritime-executive.com/article/Technip-Awarded-FEED-for-LNG-Liquefaction-Project-in-US-2013-08-27/

DNV supports LNG introduction as ship fuel in Germany - Hellenic Shipping News Worldwide

Posted - Wednesday, 28 August 2013 - Hellenic Shipping News Worldwide

On the occasion of the visit of the German Minister of Transport, Peter Ramsauer, to Caterpillar's factory in Rostock, DNV's Country Manager Jörg Langkabel, said that making technology-based decisions is complex for each individual company, as is finding the right way into the future. DNV supports the overall political will and dedication to reduce harmful emissions from ship operations.
DNV is helping the industry in Germany to introduce LNG as an economic and safe alternative fuel for ships. The new environmentally friendly dual-fuel Caterpillar M 46 engine is fully capable of running on LNG and meets all the Tier III requirements in gas mode.
At the event, the presented possibility of converting a large number of ships with Caterpillar engines to LNG showed that this technology is now leaving the market niche and spreading out into the industry. As the most experienced class and service provider, DNV is playing an important role in supporting this development.
Mr Ramsauer made reference to Germany's fuel strategy for the transportation industry, including shipping. He explained that the German government is ready to support pilot projects like retrofitting new engine solutions on ships.
Caterpillar pointed out that 450 ships are now using the M43C-type engine, which can be converted to an LNG-fuelled M 46 DF engine. The majority of these engines are installed on ships with German owners. About 190 of these ships are less than six years old and therefore in principle suitable for conversion to LNG. Most of the ships are container feeders of similar design. There is thus the potential for a standardised, cost-effective retrofit of a large number of ships.
"The transport industry can play a leading role by changing fuel. With our mobility and fuel strategy, we have introduced a way forward for a change with a long-term horizon, making this suitable for continuous planning and implementation," said Mr Ramsauer. He demonstrated the government's willingness to implement changes, stating that the MS Atair ship - which belongs to the German Authority for Shipping and Hydrographics - will be replaced by a new LNG-fuelled ship in 2015.
"DNV is convinced that LNG is an environmentally friendly fuel and the best available option to reduce emissions. We can offer many services relating to ship-specific solutions as well as advice on infrastructure needs and investments by ports and authorities. DNV's tool for assessment and guidance on using LNG as fuel is the LNG Ready service, where the technical solutions are examined and alternatives compared on an OPEX and CAPEX basis, enabling customers to make a strategic decision," said Mr Langkabel.
He added that DNV has a long and proven track record on LNG since the 1960s, when DNV was instrumental in the development of the Moss-design round transport tanks for LNG, a design still in use. DNV classed Norway's first LNG-fuelled ferry, which has been operational since 2000, and classes more than 90 per cent of all LNG-fuelled ships. The newest is the Stavangerfjord cruise ferry belonging to the Norwegian owner Fjordline. This ship is 170 metres long and can carry 1,500 passengers and 600 cars. It will serve the busy ferry connections between Norway and Denmark.
Source: DNV

Post to be found at:
http://www.hellenicshippingnews.com/News.aspx?ElementId=df98c602-8332-43b8-b58e-bbec513ebf8c&utm_source=newsletter&utm_medium=email&utm_campaign=daily

India's ONGC to Buy $2.64-Billion Stake in Anadarko Mozambique Gas Block - Maritime Executive

Posted - August 26, 2013 -   Maritime Executive

India's Oil and Natural Gas Corp (ONGC.NS) has agreed to buy 10 percent in a gas field offshore Mozambique from Anadarko Petroleum Corp for $2.64 billion, as the explorer looks to offset diminishing supplies from domestic gas fields by buying overseas assets.

The purchase of U.S. oil company Anadarko's (APC.N) stake is the latest in a handful of overseas assets that ONGC Videsh, the overseas businessunit of state-controlled ONGC, has bought in the last couple of years to boost India's energy needs.

In June, ONGC and state-run Oil India Ltd (OILI.NS) signed a deal to buy a 10 percent stake in a Mozambique gas field from Videocon Group (VEDI.NS) for $2.48 billion.

"There is a lot of energy demand and whatever volumes of gas we are able to bring to the country are of utmost significance," A. K. Srinivasan, ONGC's group general manager for finance, told Reuters. "Mozambique will be a big LNG hub for the future."

Anadarko said it would remain the operator of Area 1, with a working interest of 26.5 percent in the block, which is located in Mozambique's deepwater Rovuma Basin.

Recent discoveries have turned the Rovuma field into a major draw for global energy producers and boosted Mozambique's natural gas reserves to around 150 trillion cubic feet or enough to supply Japan, the world's top LNG importer, for 35 years.

Rovuma has the potential to become one of the world's largest liquefied natural gas (LNG) producing hubs by 2018, and is strategically located to supply gas to India at competitive prices.

SEEN CLOSING BY MARCH 2014

ONGC, which expects the cash transaction to close by March 2014, is likely to finance the deal through internal cash balance and fresh borrowings, Srinivasan said, adding that financing details would be finalized over the next few months.

The company's bonds were trading at marginally wider spreads on Monday, underperforming tightness in the market, and shares fell as much as 3.8 percent in the Mumbai market .NSEI that was trading flat, on worries about its higher debt levels.

Analysts expect ONGC's two recent acquisitions to lead to higher debt levels, although a credit downgrade is unlikely.

"Given current market conditions and uncertainty about India, financing may be a challenge and we think most of it will come from the bank market. That said, a potential bond activity cannot be ruled out," a U.S. bank said in a note.

STARVING FOR GAS

ONGC, which has struggled to maintain output from its ageing wells off India's west coast, will be interested in buying more overseas assets to feed the energy needs of Asia's third-largest economy, Srinivasan said, but declined to give details.

"The country is starving for gas, for our power development and any other development," he said.

Demand for gas in India far outstrips consumption, but prices have been kept low for strategic industries, deterring investment in the sector. India has few energy resources other than coal and is the world's fourth-biggest importer of fuel.

After Anadarko, which has been looking to focus more on its domestic assets, Japan's Mitsui & Co Ltd is the second-biggest holder in Mozambique's offshore Area 1 block, with a stake of 20 percent.

Indian state refiner Bharat Petroleum Corp (BPCL.NS) owns 10 percent while Thai state oil company PTT Exploration and Production PCL PTTE.BK has an 8.5 percent interest and Mozambique's state-owned ENH 15 percent.

Outbound announced deals involving Indian companies so far this year stand at $35.8 billion, compared to $62 billion last year and a record $70.3 billion in 2008, Thomson Reuters data shows.

Bank of America Merrill Lynch (BAC.N) advised ONGC Videsh and Citigroup (C.N) advised Anadarko on the transaction.

Reporting by Sumeet Chatterjee and Michael Erman; Additional reporting by Umesh Desai and Denny Thomas in HONG KONG; Editing by G Crosse and Clarence Fernandez (C) Reuters 2013.

Post to be found at:
http://www.maritime-executive.com/article/Indias-ONGC-to-Buy-264Billion-Stake-in-Anadarko-Mozambique-Gas-Block-2013-08-26/

MENA set to lose pole position on gas grid - Zaway

Posted - August 26, 2013 - Zaway

The Middle East and North Africa (MENA) region is set to lose its dominant position as the world's largest supplier of liquefied natural gas (LNG), according to the International Gas Union (IGU).
"In 2012, the Middle East produced 112.7 million tons per annum (MTPA) and Asia-Pacific 80.8 MTPA," the IGU said in its annual report reported published on August 21.
"This trend is likely to reverse in the coming decade as new Australian projects are expected to come on-stream post-2015 and prospects for growth in LNG exports turn to newer regions such as North America and East Africa. "While LNG export terminals crop up elsewhere, Middle East exporters face a myriad of issues, ranging from higher domestic demand to political turmoil that would likely hurt export potential going forward. In fact, Qatar production may start to decline in the near future as it is already operating at peak capacity and it may have limited technological room to expand production without investing heavily in new LNG trains, the IGU noted.
For now Qatari LNG exports dominate global supplies. The country holds more than a quarter of the world's liquefaction capacity and a third of its exports, or 77 MTPA last year - three times more than its nearest rival Malaysia.

While Qatar led the Middle East charge, other regional countries faltered. Growing domestic demand and political turmoil in places like Egypt, Algeria, Yemen and Libya meant that global LNG trade fell 1.6% to 237.7 million tons last year ‑ its first annual decline in decades.
Indeed, future growth may not be found in Middle East markets. Algeria's new LNG plants will be to replace declining capacity only, while Qatar is already producing at near peak levels.
"After the commissioning of its final mega-train in early 2011, Qatar's role as the driver of liquefaction capacity growth in recent years has faded," said the IGU. "Taking its place is Australia, where projects currently under construction account for 64% of all projects that have reached FID [final investment decision], representing 62 MTPA of capacity."
GROWING MARKET
The Middle East states' loosening grip on the global LNG sector comes at a time when the demand for chilled natural gas is rising fast.
Since 2005, 15 additional countries have begun importing LNG.
To meet the rising need, 26 new LNG projects were underway at the end of last year and a number of new LNG-exporting regions are emerging in places such as the Canadian West Coast, Eastern Africa and the US Gulf Coast.
"Global LNG demand should continue to grow in the short term and the market will continue to be supply-constrained at least until 2015," said Jerome Ferrier, president of IGU. "Traditional consumers will keep their place on the market and a large number of new players are expected to emerge.
"Such dynamics will accentuate the globalization of the LNG market and probably change the price environment for the benefit of a larger use of non-oil-linked pricing. It is certain that LNG prices will remain firm, but their regional dichotomy will continue to provide opportunities for arbitrage trading."
Nearly 50% of new liquefaction capacity will be built in Asia Pacific by 2017, even as Middle East capacity remains flat during the period.
Another competitor to Middle East exporters could emerge from East Africa where huge gas discoveries in 2010-2013 have led to the proposal upwards of 30 MTPA of capacity in Mozambique and Tanzania, though underground resources could support upwards of 75 million MTPA, IGU said.
"Projects in the region have the advantage of low domestic demand and geographic proximity to Asian markets."
TRADE FLOWS
Middle East LNG exports to Asia have helped build strong trade flows with one of the world's most dynamic emerging economies over the past decade. The region's LNG exports to Asia-Pacific had more than tripled to 54.3 million tons in 2012, compared to 15.3 million tons in 2011.


However, that trade flow may decline as major LNG consumers such as Japan, South Korea, China and India switch to Pacific, East African and North American supplies.
Other factors could also hurt LNG prospects from the MENA region.
After enjoying a huge cost advantage in developing LNG projects over the past decade, Middle East producers are no longer the cheapest.
"Over the next 10 years, the Atlantic Basin is expected to have the lowest project costs as a result of brownfield economics in the United States due to synergies from building on existing regasification sites," said IGU.
Cost considerations have emerged as a primary concern for new LNG exporters. A number of Australian projects have reported dramatic cost escalations leading to delays and slow-downs.
In tandem, Asian countries have also been bolstered by the wide variety of suppliers and are negotiating lower LNG prices.
The LNG space is set to evolve over the next decade as new exporters and importers come on line and the shale gas revolution that has transformed North America reaches other places such as China, South America and Europe.
With Asia seeking a number of alternatives, such as pipeline imports from Central Asia and Russia and investing heavily in renewable energy, not every LNG project will find suppliers ‑ some will fall by the wayside.
There is little doubt that LNG will emerge as one of the most desirable sources of energy, but it's unclear what role Middle East gas exporters or reserve holders will play in its burgeoning future.
© alifarabia.com 2013

Post to be found at:
http://www.zawya.com/story/Gas_leaders_lose_ground-ZAWYA20130826072826/?weeklynewsletter&zawyaemailmarketing

ABS Forms Global Gas Solutions Team: New team addresses market needs specific to LNG/LPG - Hellenic Shipping News Worldwide

Posted - Tuesday, 27 August 2013 -  Hellenic Shipping News Worldwide

ABS, a leading provider of global maritime classification services, has taken another step forward to meet industry needs with the formation of the ABS Global Gas Solutions Team to leverage the organization's LNG and LPG capabilities. This group of experienced gas professionals will work alongside owners, shipyards and equipment manufacturers to provide an extensive range of services to this growing market.
"The discovery of new gas resources around the world and the exciting potential for wide-scale adoption of gas as a marine fuel are leading to a dynamic shift in the global marketplace," says ABS Chairman and CEO Christopher J. Wiernicki. "This team will comprise highly experienced technical professionals that will provide support throughout a project's lifecycle to meet the specific needs of our marine, inland waterways and offshore energy clients."
Patrick Janssens will lead this organization as Vice President for Global Gas Solutions. Janssens is currently the ABS Vice President for LNG with responsibility for projects in Europe and Asia. He previously was Senior Vice President of Technology at FLEX LNG where he focused on the development of floating LNG liquefaction projects. Janssens was also Chief Technical Officer at Exmar, where he was in charge of the development of the world's first LNG regasification vessels and many newbuilding projects with major shipyards worldwide.
Commenting on Janssens selection, Wiernicki noted, "Patrick is a recognized industry leader in all areas of LNG. His experience in economic and concept evaluation, project construction and operational analysis makes him the right choice to lead this team."
In the near term, an important area of focus for the ABS Global Gas Solutions Team will be the growing gas market in the United States.
"With its diverse maritime market, increasing gas production and stricter emissions requirements, the US is becoming a catalyst for the next revolution in the global gas marketplace," says Janssens. "To help clients navigate the unique characteristics and requirements of the US, our team of professionals brings together both the technical and market experience to help owners, shipyards and manufacturers successfully develop gas projects."
Roy Bleiberg, currently Director of Engineering for ABS Americas, will assume the new role of Director of US Gas Development. He brings more than 24 years of global marine and offshore systems experience to the position as well as an in-depth knowledge of US Federal and state regulatory requirements. Bleiberg spearheads ABS class activities on several cutting edge US LNG projects, including the Harvey Gulf dual fuel offshore support vessels, TOTE's dual fuel new construction and conversion projects, and various floating LNG export terminal projects in development.
In the area of client operations, Kurt Larsen will assume the new role of Director of US Gas Operations and Performance. Larsen currently serves as Assistant Chief Surveyor within the Corporate Classification Department where he oversees all global survey issues for new construction and in-service LNG vessels. He has more than 24 years of experience with an extensive working knowledge of in-service LNG vessels. Larsen also has led several IACS projects on LNG operational standards.
Joining Bleiberg and Larsen will be a US-based team of ABS gas specialists with extensive knowledge of LNG floating structures and systems, gas fuel systems and equipment, and regulatory and statutory requirements. Utilizing its global experience, the team also will assist clients with specification reviews, risk and hazard assessments, bunkering suitability reviews, new construction project management and training.
Source: ABS

Post to be found at:
http://www.hellenicshippingnews.com/News.aspx?ElementId=8a62baf8-cebb-4bbb-894d-54de5d17ed87&utm_source=newsletter&utm_medium=email&utm_campaign=daily

COLUMN-Asian LNG prices may gain on import-export capacity mismatch: Clyde Russell - Reuters

Posted - Mon Aug 26, 2013 2:44am EDT - Clyde Russell - Reuters


LAUNCESTON, Australia, Aug 26 (Reuters) - Liquefied natural gas (LNG) prices in Asia tend to rise ahead of the northern winter, but this year it's possible that the gains will be maintained for longer into the new year.
There appears to be a looming mismatch between LNG demand and supply, with more import terminals coming on line across the region than global export supply can keep pace with.
While many of the new terminals already have long-term supply agreements in place, there is still likely to be pressure for spot cargoes, especially from China.
Spot Asian LNG prices dropped to $15.25 per million British thermal units (mmBtu) last week, and while they have gained since the mid-year low of $14.13 in May, they are still below the $19.67 per mmBtu peak, reached in early February.
As is customary in many commodity markets in Asia, China is likely to be the swing factor in what happens to LNG demand.
Chinese imports of the super-chilled fuel were 9.679 million tonnes in the first seven months of the year, a gain of 21 percent over the same period in 2012.
While this is an impressive gain and puts China on track to meet the 16.5 million tonnes for 2013 imports forecast by top oil and gas producer China National Petroleum Corp, it is still well short of what the country is capable of buying.
Total import capacity is currently about 21.9 million tonnes and is slated to rise by another 9.7 million tonnes by the end of the year, with three terminals being commissioned.
Another 5.2 million tonnes may come online in 2014, which would take Chinese import capacity to just under 37 million tonnes, an increase of 68 percent on the current capacity.
However, it's unlikely that all of this capacity will be utilised as China's domestic prices are low enough to render new supplies of LNG uncompetitive, and there are limits as to how much loss the state-owned oil giants are willing to shoulder in order to boost natural gas availability.
Despite a 15 percent rise in domestic prices in July, China's gas is around $8.85 per mmBtu, meaning current spot prices are at a premium of about 72 percent.
However, while it's unlikely all the capacity will be used, it's equally likely that some will, and this will boost Chinese demand for spot LNG cargoes.
This will come at a time when other LNG import terminals are coming online in Asia, including new facilities in Singapore, Malaysia and South Korea.
Again, some of this capacity is covered by long-term contracts, but it's worth bearing in mind that these contracts will currently be met from existing supplies, thus diverting cargoes that may have been available for the spot market.
JAPAN TO TAKE MORE LNG
It's also possible that Japan's LNG imports will continue to grow, especially since it seems to be taking longer to get any significant nuclear power capacity running in the wake of the Fukushima meltdown in March 2011.
Japan's only two operating nuclear plants are scheduled to be idled for maintenance by September, and the country may be without atomic power until July next year, according to industry officials.
This may boost LNG imports by 1.7 percent to fresh record highs of 88.3 million tonnes for the financial year to March 2014, anther factor that may tighten Asian LNG markets.
On the downside for LNG demand is the situation in India, where a falling rupee has made LNG more expensive.
LNG is too expensive in India to be used by power generators and is only competitive in industries where it competes with oil-based products like naphtha, such as fertilizer making.
While the depreciation on the rupee also boosts the price of oil products, if LNG prices do rise for the northern winter, it's likely that they will rise more relative to crude oil, thereby making the imported gas less competitive.
Nonetheless, there is still significant new LNG import capacity becoming available in Asia and little immediate boost to supplies.
New LNG export capacity has come online in Angola and Algeria this year, and prices have recently softened after a blockade of Nigerian facilities was lifted.
However, the next huge boost to supply is coming from Australia, which is expected to overtake Qatar as the world's top exporter of the fuel within the next few years.
But the first of the seven projects currently under construction, the 15.6 million tonne a year Chevron-operated Gorgon project is likely to start by the end of 2014 at the earliest.
The other projects then follow, with the last due to be completed by 2017, although whether these timelines can be maintained is uncertain given Australia's recent history of delays and cost blowouts.
What does seem clear is that much of the rise in Asia's import terminal capacity is likely to be operational before the gains in supply come onstream.
Even if only some of the new import capacity is utilised, it's likely to tighten the LNG market, and lift prices, until the new export plants are commissioned.

Clyde Russell is a Reuters market analyst. The views expressed are his own.--


Post to be found at:
http://www.reuters.com/article/2013/08/26/column-russell-lng-asia-idUSL4N0GR10Y20130826

Import of LNG faces fresh hurdles - DAWN.com

Posted - 2013-08-26 07:42:04 - DAWN.com

ISLAMABAD: Controversies over the import of liquefied natural gas (LNG) seem to be a never-ending game even after the passage of five years and an expenditure of $5 billion in additional oil imports.
A fresh tender for the import of 500 million cubic feet of LNG has been questioned at the very outset by former and prospective bidders. They see the request for proposals (RFP) sought by Inter State Gas Systems (ISGS) in conflict with the country’s procurement rules and apparently favouring a single party.
Simultaneously, a controversy is still brewing among the board of directors of Sui Southern Gas Company over the reported cancellation on Aug 17 of another tender for 500mmcfd of LNG in which a single bid was evaluated.
Informed sources said an influential group within the SSGC board was now questioning the majority decision of cancellation of bidding results of LNG Retrofit project and trying to call a fresh board meeting to undo an earlier decision taken by it with a vote of 6 to 5. The other group is reported to have decided to provide recording of the proceedings to courts of law.
Documents available with Dawn suggest that a major contender to most of the previous LNG biddings has openly questioned the tender issued by ISGC that seemed to be on behalf of SSGCL.
“The RFP lacks clarity on the procuring agency for the LNG services and the roles of SSGC and ISGS”, said Global Energy International in a letter to ISGS — a public sector company set up for natural gas import projects.
It said the ISGS was defined in the RFP as guiding the procurement services and SSGC as company providing letter of credit for LNG services even though PPRA (Public Procurement Regulatory Authority) rules distinctively put forth the rights and obligations of procuring agency but in this case the procuring agency (SSGC) was not the advertising agency and hence “may constitute a violation of PPRA rules”.
DEVIATION FROM POLICY: The Global Energy of Turkey said the requirement in the RFP to transport LNG by terminal operator or owner was in conflict with LNG Policy 2011. It said shipping/transportation was a distinct separate activity from
re-gasification services (which include berthing and unloading of LNG carrier to terminal vessel, conversion from liquid to gas and delivery of LNG to designated point).
“Bundling re-gasification and shipping may constitute a violation of PPRA rule 10 & 32 which call for widest possible specification.” This bundling is also not in accordance with LNG Policy 2011 which specifies storage, re-gasification and transportation of LNG as the only responsibilities of the terminal operator. “It seems that the tender has been designed with a pre-determined proposal/project design in mind” and hence a violation of PPRA Rule 4.
Moreover, the Global Energy pointed out that LPG Company was a wholly owned subsidiary of SSGC specified in the current tender for retrofitting of LNG terminal for supply of 500mmcfd and, hence, responsible for all terminal and post costs, pilot fees, tug fees and marine costs.
While the contract for terminal services is for 20 years, the ISGS tender for supply of LNG was for 10 years, which seemed to be in breach of rule 32 of the PPRA rules 2004.
It said the requirement to put the responsibility on the LNG operator to transport LNG was discriminatory because the Economic Coordination Committee had directed all the public sector entities to use PNSC vessels, but instead of following the directive, it was trying to put the transportation responsibility on others.
Also, the SSGC and ISGC are committing on behalf of the government to make capacity payments (throughput guarantees) without any LNG supply contract which is likely to be uneconomical, become a very sensitive issue and invite judicial intervention. It said the tender was also not clear about LNG supply — whether it was 400mmcfd initially or 500mmcfd and then 625 MMCFD.
While the company had also raised questions about price evaluation criteria that was in conflict with LNG Policy, it said a high variation in Wobbe Index (low local BTU/higher for LNG imports) from spiked supply “will most likely blow turbines and other industrial equipment in Pakistan”.
Building quality adjustment facilities for interruptible supply was twice expensive as for baseload as the facility would be used at 50 per cent capacity and it was unclear how SSGC would hold terminal operator responsible for quality of gas when SSGC itself would be responsible for LNG procurement.
Moreover, only 400mmcfd swap capacity exist between North and South gas transmission system while interruptible supply will block whole capacity but deliver only half the gas — bad value for money. All these issues,
“prima facie lead to the conclusion that RFP is restrictive, narrowly-focused and may contain multiple violations of PPRA rules”, the Global Energy said.

Post to be found at:
http://dawn.com/news/1038433/import-of-lng-faces-fresh-hurdles

News and and Items from over the weekend -

A collection of material that was posted over  the weekend -

Global LNG-Supplies Ease On African Tender Spree The Star Online LONDON: Liquefied natural gas (LNG) spot prices fell to $15.30 per million British thermal units (mmBtu) this week as African suppliers pumped out more ... LNG project development in Canada too expensive: International ... Stockhouse The IGU report comes as the race to supply the Asian market with LNG further ... Washington approved a third U.S. LNG project this month, a $2 billion facility on ... FACT to buy LNG from Petronet terminal The Hindu Fertilisers and Chemicals Travancore Limited (FACT) has decided to go in for spot purchase of LNG from Petronet LNG terminal on Puthuvype Island, which ... Petronas, Progress push on with LNG Victoria Times Colonist Early design work is underway on the Pacific Northwest LNG project while the federal government decides whether to allow Progress to be bought by Malaysia's ... Yemen demands higher LNG price from Korea SteelGuru Korea, by far the biggest consumer of gas from Yemen, paid an average price of USD 317.30 per tonne for Yemeni LNG in July compared with USD 952.60 for ... Indian Oil Corporation going ahead with Rs 4500 crore LNG project ... Economic Times CHENNAI: State-run Indian Oil Corporation is "going ahead" with its Rs 4,500 crore LNG terminal project in Tamil Nadu to supply piped gas in the southern ... Gail didn’t maximise Kochi Terminal capacity: Petronet LNG Economic Times NEW DELHI: Petronet LNG (PLL) has accused Gail India for underutilisation of its Kochi terminal capacity, which has received the first cargo of liquefied natural ... GMB explores partners for Gujarat 4th LNG terminal SteelGuru State ports regulator, Gujarat Maritime Board has invited comparative bids, (popularly known as SWISS Challenge Route) to develop greenfield LNG port ... Ten stocks in focus in Friday morning trade Economic Times NEW DELHI: Indian markets are likely to trade in a range with a positive bias on Friday tracking strong global cues. The immediate support level for Nifty is ... Global LNG-Supplies ease on African tender spree Reuters LONDON, Aug 23 (Reuters) - Liquefied natural gas (LNG) spot prices fell to $15.30 per million British thermal units (mmBtu) this week as African suppliers ...
First LNG ship arrives in Kochi Times of India KOCHI: Kerala on Tuesday took a great leap into the 'green gas' field with the arrival of the first LNG carrying vessel at the Petronet LNG terminal at Puthuvype ...
Algeria Shunts Gas from Italy Into Global LNG Exports The Maritime Executive Algeria's output of liquefied natural gas (LNG) may rise after officials agreed to scale back piped gas deliveries to Italy, signaling a shift in export strategy for ...
Canada at competitive disadvantage for LNG export? UPI.com High development costs for Canadian liquefied natural gas projects could make it more difficult for Canada to compete with the United States, a new report says.
Peru postpones LNG contract release Business News Americas Peru's private investment promotion agency ProInversión postponed until further notice Friday's (Aug 23) release of the second contract version for an LNG ...
Mitsui evaluating LNG import option for Chile Business News Americas Japan's Mitsui is evaluating options to import LNG into Chile to supply power generation in an effort to clean up the coal dominated grids.The US... This news ...
Petronas Gas sees brighter prospects from LNG regasification The Borneo Post BRIGHTER PROSPECTS: LNG vessels berthing at Petronas Gas' regasification terminal platforms. Petronas Gas' prospects have been viewed as bright on the ...
Surveying underway for LNG pipeline Port Lavaca Wave The Woodlands-based Excelerate is planning a pipeline from near Edna to the port to feed floating liquefaction storage and offloading vessels and ship the LNG ...
Gas fears eased as new study shows demand for Australian gas will ... Herald Sun FEARS that WA could lose in a future LNG trade war with the US and the Middle East are eased by a study that predicts demand for Australian gas will continue ...
Posted by Muhammad Iqbal Business Recorder LONDON: Algeria's output of liquefied natural gas (LNG) may rise after officials agreed to scale back piped gas deliveries to Italy, signaling a shift in export ...