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CERAWeek's third day highlighted global economic trends, shifting geopolitics, emerging government policies and advances in technologies. The industry business leaders talked about current global LNG demand and the existing market players of the same. Further, Energy Company of the Future session helped to explore future opportunities in the LNG market. Another session, Future of Global Gas was chaired by Simon Blakey, advisor, global gas, IHS Markit.
Qatar Petroleum is planning to reduce its dependency on imports and increase its domestic production. In order to fuel up its local energy industry, the firm has signed a preliminary deal with Schlumberger and Baker Hughes worth $2.47 billion on Monday. The initial agreement will involve investment in production facilities, training and development. Qatar is strategizing to boost its LNG production by 43% by 2023-24.
China’s Clean Energy has inked an LNG supply deal with Japanese city gas supplier, Shizuoka Gas. Under the supply deal, Shizuoka Gas will transport 1600 metric tonnes of LNG annually for the next three years to Clean Energy. LNG transportation will be carried out from Shizuoka’s Shimizu terminal through ISO tank containers. Currently, Shizuoka Gas is the only firm capable of re-exporting fuel by re-loading LNG onto ships.
OMV has announced that the company will export gas which will compete on price, firmly rejecting US’ criticism over Nord Stream 2. The Austrian energy company is the stakeholder in the planned Nord Stream 2 pipeline to Germany. OMV’s CEO said “If the U.S. were to offer competitively priced liquefied natural gas (LNG) in Europe, they need not worry about the prospect of supply from NS 2 gas”.
According to the sources, China National Oil Corp (CNOOC) has sold a LNG cargo which is floating offshore South Korea. This cargo has been sold for the second time pointing out the drop in winter gas demand in China. Unlike 2017/18 winter, when China was desperate to keep up with the super-chilled fuel demand, this move signifies that the nation has overcome those times.
Australia-based Sheffield Resources has contracted the joint venture between Woodside and Energy Developments (EDL) to supply LNG to the Thunderbird mineral sands project. According to the 15-year deal, the JV will deliver 1950 terajoules of LNG annually to the project. LNG will be supplied from Woodside’s Pluto facility through a road tanker fleet. The Thunderbird project has a mine life of 42 years, and production will begin in 2020.
British energy company, Ophir Energy has informed that it has rejected Medco Energi’s International Tbk PT’s potential buyout offer. Indonesian oil and gas group made an unsolicited approach to buy Ophir in October last year offering 340 million pounds in cash. Meanwhile, Ophir’s shares lost almost half of their value after failing to find financing for its LNG project in Africa last year.
The world's biggest ship-to-ship LNG transfers began yesterday in Turkey’s Mehmet Tecimen. The LNG transfer is between BOTAS's Floating Storage Regasification Unit (FSRU) and Al Sadd vessel, which brought LNG from Qatar. In a press briefing, oil utilities regional director of BOTAS said that the entire LNG transfer procedure will take two days.
The Board of Directors of Russia’s Gazprom have agreed on the company’s LNG bunkering plan. The company will continue its work of developing infrastructure to produce and market LNG as a marine fuel. A group statement stated “Gazprom continues to build the LNG production, storage and shipment complex near the Portovaya compressor station. It is planned to use the plant’s output to, inter alia, bunker marine vessels in Russia.”
Oil supermajor, Shell today informed about commencing production from Prelude floating liquefied natural gas (FLNG) facility in Australia. Currently the world’s largest floating production structure, Prelude is estimated to annually produce 3.6 million tonnes of LNG, 1.3 million tonnes of condensate and 400,000 tonnes of LPG. The project is operated by Shell where Japan’s Inpex Corp, Taiwan’s CPC Corp and Korea Gas Corp are other partners.
Malaysian state-owned Petronas has entered into a 20-year deal with Cheniere Energy Partners LP to buy LNG from the sixth plant at the Louisiana export terminal. Under the agreement, Petronas has agreed to purchase about 1.1 million tons a year from the Sabine Pass facility. The firms have agreed to index the purchase price to Henry Hub, plus a fee.
Russian gas giant, Gazprom has signed a Memorandum of Understanding (MoU) with Japan’s Itochu Corporation on the Baltic LNG project. Chairman of the Gazprom Management Committee and CEO, Itochu Corporation held a working meeting in St. Petersburg. With this agreement, Gazprom and Itochu have confirmed their interest in potential collaboration in the framework of the project.
Total has decided to sell 4% stakes in its Australian Ichthys LNG project to Inpex. This procurement will be worth $1.6 billion following cost overruns. Total E&P President said “This transaction is part of our constant portfolio review to optimize our capital allocation,” He has also given assurance that Total will be committed to its Australian project and won’t give up its 26% stakes in the same.
Novatek will start the production of LNG on the shore of the Baltic Sea in February, as stated by a contractor working at the project. Novatek is the largest non-state natural gas producer of Russia. The company will be building an LNG plant and terminal along with Gazprombank in the Baltic Sea port of Vysotsk. The plant’s capacity is expected to be 800,000 tonnes in 2021.
According to sources, Royal Dutch Shell’s Prelude floating LNG unit is expected to start at the end of the year. The natural gas produced offshore northern Australia will be processed here and exported as LNG. Prelude’s capacity of annual LNG production is assumed to be 3.6 million tonnes. Apart from LNG, it will also process 1.3 million tonnes a year of condensate and 400,000 tonnes a year of LPG.
Gulf nation, Qatar has announced withdrawal from the cartel of oil producing nations, OPEC. The announcement came from Qatar’s Energy Minister who said that Doha wants to concentrate on the production of natural gas in the upcoming years. Qatar is currently the world's biggest LNG supplier. With this decision, Qatar will become the first Gulf country to leave the bloc of 15 oil-producing countries.
US Department expressed its disagreement on Russia’s Yamal LNG transfers in Norwegian waters. In a statement, US said "At a time when Russian gas comprises a growing proportion of Europe's energy imports, additional volumes of Russian gas will undercut Europe's energy diversification efforts.” The ship-to-ship transfers in Norwegian waters from Yamal, one of the world’s largest LNG terminals will create a dent in energy diversification efforts of Europe, believes US.
South American nation, Argentina will start its first-ever LNG exports in 2019. Gas will be exported from the Vaca Muerta shale play. Belgian energy shipping giant, Exmar will position its floating LNG unit (FLNG) to the Port of Bahía Blanca according to a 10-year deal with Argentina’s energy firm YPF. Argentina will now join the club of global LNG exporting nations.