PT Perusahaan Gas Negara (PGN) signed an initial agreement to purchase up to 5 million metric tons of liquefied natural gas (LNG) per annum from Energy Equity Epic Sengkang Pty Ltd (EEES).
"PGN will receive between 1.5 and 5 million metric tons of LNG per annum *MTPA* from EEES. The LNG is expected to be delivered from 2012 as part of a five-year contract," PGN president director Hendi Prio Santoso said.
Hendi refused to divulge the contract's value, saying the pricing was one of the issues the two companies would finalize later.
Stewart Elliot, CEO of EEES's parent company Energy World Corporation Ltd, said EEES had produced a surplus of gas at its block in Sengkang, Central Sulawesi.The company was also planning to build an LNG plant, he added.
"We will build the LNG plant with a production capacity of 2 MTPA to begin with.
"We will then ramp up the capacity to 5 MTPA," he said.
Elliot added EEES would spend between US$400 million and $500 million to build the 2 MTPA plant.
EEES has been preparing for the plant's permit and putting together its component manufacturing.
"We expect the plant will start operating in 12 to 18 months from now," he added.
Hendi said the LNG would be supplied to PGN's LNG-receiving terminals it was planning to build in West Java and North Sumatra.
As has been reported earlier, PGN and state oil and gas company PT Pertamina have formed a consortium to build the two LNG-receiving terminals in those particular regions.
Sep 8, 2009
InterOil’s PNG LNG project seeks approval
Papua New Guinea’s second liquefied natural gas project is edging forward after Canadian independent InterOil and its joint venture partners submitted a project agreement to the government to build the proposed plant in Port Moresby.
InterOil said that both the Prime Minister of PNG, Michael Somare, as well as the Minister for Petroleum and Energy, William Duma, have stated their support for the proposed project and associated agreement.
The proposed project targets a $6 billion two train LNG facility, with each train capable of producing about 4 million tonnes of LNG per year. Current plans call for first production of LNG towards the end of 2014 or beginning of 2015.
At least 5000 jobs are expected to be created at peak construction of the InterOil facility. Economic returns from the project are expected to help fund public infrastructure and community services in Papua New Guinea, such as education and health, and provide income to land owners.
InterOil's partners in the project are Petromin PNG Holdings and Pacific LNG Operations.
InterOil said that both the Prime Minister of PNG, Michael Somare, as well as the Minister for Petroleum and Energy, William Duma, have stated their support for the proposed project and associated agreement.
The proposed project targets a $6 billion two train LNG facility, with each train capable of producing about 4 million tonnes of LNG per year. Current plans call for first production of LNG towards the end of 2014 or beginning of 2015.
At least 5000 jobs are expected to be created at peak construction of the InterOil facility. Economic returns from the project are expected to help fund public infrastructure and community services in Papua New Guinea, such as education and health, and provide income to land owners.
InterOil's partners in the project are Petromin PNG Holdings and Pacific LNG Operations.
Sep 7, 2009
Indonesia Tangguh begins trial at train 2
Indonesia's Energy Minister said trial runs at the second LNG train at the Tangguh project began last week and the first train would resume operations by the second week of October at the latest.
The Tangguh LNG plant in Papua, led by BP's Indonesian unit, started up this year but was temporarily shut in August to resolve technical problems.
"Second train commissioning started. Trial runs are on," the minister, Purnomo Yusgiantoro, told Reuters in an interview.
Indonesia's oil watchdog BPMIGAS said last week the LNG plant, which has a capacity to produce 7.6 million tonnes per year (tpy) via two trains, will ship only 16 cargoes of liquefied natural gas in 2009, well short of its previous estimate of 56 cargoes.
BPMIGAS monitors oil and gas firms operating in Indonesia.
Indonesia, the world's third-largest LNG exporter after Qatar and Malaysia, plans to use more natural gas at home to avoid costly oil prices as its own oil reserves dwindle.
Yusgiantoro said fertiliser customers had placed a request for 0.5 million tonnes of LNG from Donggi-Senoro project and the remaining 1.5 million tonnes was yet to be sold.
He said the promoters were still negotiating price and financing of the project.
The Donggi-Senoro project, which will require $1.7 billion for upstream activities and $2 billion for downstream, has been under threat since Vice President Jusuf Kalla said in June gas from the project should be sold to the domestic market.
Yusgiantoro said Indonesia, the world's largest thermal coal exporter, would export 150 million tonnes of coal annually from 2015. It exported 140.35 million tonnes of coal in 2008.
"We will increase it by 20 million tonnes to 30 million tonnes per year up to the level that it can be massively exported," Yusgiantoro said. Currently, Indonesia uses 40 percent of its output locally and exports the rest.
The Tangguh LNG plant in Papua, led by BP's Indonesian unit, started up this year but was temporarily shut in August to resolve technical problems.
"Second train commissioning started. Trial runs are on," the minister, Purnomo Yusgiantoro, told Reuters in an interview.
Indonesia's oil watchdog BPMIGAS said last week the LNG plant, which has a capacity to produce 7.6 million tonnes per year (tpy) via two trains, will ship only 16 cargoes of liquefied natural gas in 2009, well short of its previous estimate of 56 cargoes.
BPMIGAS monitors oil and gas firms operating in Indonesia.
Indonesia, the world's third-largest LNG exporter after Qatar and Malaysia, plans to use more natural gas at home to avoid costly oil prices as its own oil reserves dwindle.
Yusgiantoro said fertiliser customers had placed a request for 0.5 million tonnes of LNG from Donggi-Senoro project and the remaining 1.5 million tonnes was yet to be sold.
He said the promoters were still negotiating price and financing of the project.
The Donggi-Senoro project, which will require $1.7 billion for upstream activities and $2 billion for downstream, has been under threat since Vice President Jusuf Kalla said in June gas from the project should be sold to the domestic market.
Yusgiantoro said Indonesia, the world's largest thermal coal exporter, would export 150 million tonnes of coal annually from 2015. It exported 140.35 million tonnes of coal in 2008.
"We will increase it by 20 million tonnes to 30 million tonnes per year up to the level that it can be massively exported," Yusgiantoro said. Currently, Indonesia uses 40 percent of its output locally and exports the rest.
CNOOC Shanghai terminal to receive 1st LNG cargo
The Shanghai LNG project, a joint venture between CNOOC and Shenergy Group, is expected to receive its first cargo of liquefied natural gas (LNG) from Malaysia around Sept. 20, an industry source said.
The shipment would be about 80,000-90,000 cubic metres, the source said, adding that the fuel would be used later to test new facilities.
Previous imports from Malaysia were diverted to Wuhaogou, an existing small LNG terminal in the financial hub, which has two 50,000 cubic metre LNG tanks and one 20,000 cubic metre tank and serves as backup supplies for the city.
Wuhaogou is run by Shanghai Gas (Group) Co Ltd, a unit of Shenergy Group. The group controls Shenergy Company .
Under a long term contract, Malaysia's Petronas will supply 3.03 million tonnes of LNG a year to the new Shanghai terminal for 25 years starting from 2009.
China National Offshore Oil Corporation (CNOOC), parent of CNOOC Ltd, has one terminal in Guangdong and another in Fujian in operation.
The shipment would be about 80,000-90,000 cubic metres, the source said, adding that the fuel would be used later to test new facilities.
Previous imports from Malaysia were diverted to Wuhaogou, an existing small LNG terminal in the financial hub, which has two 50,000 cubic metre LNG tanks and one 20,000 cubic metre tank and serves as backup supplies for the city.
Wuhaogou is run by Shanghai Gas (Group) Co Ltd, a unit of Shenergy Group. The group controls Shenergy Company .
Under a long term contract, Malaysia's Petronas will supply 3.03 million tonnes of LNG a year to the new Shanghai terminal for 25 years starting from 2009.
China National Offshore Oil Corporation (CNOOC), parent of CNOOC Ltd, has one terminal in Guangdong and another in Fujian in operation.
Sep 6, 2009
Yemen LNG says to start producing in "coming weeks"
Yemen LNG expects to start production from its new gas liquefaction plant in the "coming weeks", the company's chief executive said.
The first cargo was originally scheduled to be exported in August, but start-up problems, including leaking valves and minor glitches, delayed first production.
"Well we are in the start-up phase at the moment, we are working very hard and should see (production) in the coming weeks," Joel Fort said.
"We are not yet producing LNG but we are flowing gas through the first LNG train at the moment."
The Total-led Yemen liquefied natural gas (LNG) project in Balhaf, is expected to help boost economic growth in the country to nearly 8 percent, almost double last year's gross domestic product.
Other investors in the project include U.S.-based Hunt Oil and Yemen Gas Co, which own 17.2 percent and 16.7 percent, respectively.
The project has the capacity to produce 6.7 million tonnes of LNG for export from the Gulf of Aden port of Balhaf.
At the end of 2008, Yemen held 17.3 trillion cubic feet (tcf) of proven natural gas reserves, according to the BP Statistical Review.
The first cargo was originally scheduled to be exported in August, but start-up problems, including leaking valves and minor glitches, delayed first production.
"Well we are in the start-up phase at the moment, we are working very hard and should see (production) in the coming weeks," Joel Fort said.
"We are not yet producing LNG but we are flowing gas through the first LNG train at the moment."
The Total-led Yemen liquefied natural gas (LNG) project in Balhaf, is expected to help boost economic growth in the country to nearly 8 percent, almost double last year's gross domestic product.
Other investors in the project include U.S.-based Hunt Oil and Yemen Gas Co, which own 17.2 percent and 16.7 percent, respectively.
The project has the capacity to produce 6.7 million tonnes of LNG for export from the Gulf of Aden port of Balhaf.
At the end of 2008, Yemen held 17.3 trillion cubic feet (tcf) of proven natural gas reserves, according to the BP Statistical Review.
Aug 27, 2009
Qatar to up LNG sale to India
Qatar's RasGas will raise liquefied natural gas (LNG) supplies to India by 50 percent from November, a top official at gas importer Petronet LNG said on Thursday, but that will still leave scope for spot purchases.
The booming economies of China and India have propped up the long-term outlook of LNG market, as demand from traditional buyers such as South Korea and Japan has eased due to the rise in alternative energy sources such as nuclear power and coal.
At present Petronet imports 5 million tonnes of LNG every year from RasGas under a long-term deal, and supplies were to be raised to 7.5 million tonnes from the last quarter of 2009.
"It is 100 percent. Certainly we will receive it from November," Chief Executive Officer P. Dasgupta told reporters.
"India is always going to be driven by supply and not by demand".
Despite the start in April of output from Reliance Industries' huge gas find in its D6 block, which will eventually double local output, India will still have a gas deficit.
"Contrary to our nervousness about D6 gas, in April-June, D6 gas coming in to the tune of almost 25-30 mmscmd (million cubic metres a day), we sold a record 98 trillion British thermal units (tBtu) compared to 78 tBtu year ago," Dasgupta said.
He said Petronet's 10 million tonne a year Dahej terminal in western India could regassify 160 cargoes per year, and the enhanced RasGas supplies would translate to 120 cargoes. Its short-term supply deal with BP will end next month.
In the June quarter, Petronet imported 4 spot cargoes and in September quarter it planned to import 6 parcels, with two scheduled for arrival in September. Dasgupta said the firm would import 5 spot LNG cargoes in October and November.
He said Petronet was also in talks with Indian explorer Oil and Natural Gas Corp to jointly acquire a stake in InterOil's LNG project in Papua New Guinea. The Canadian firm has said it was looking to sell a stake of up to 35 percent.
Earlier this month Petronet signed a deal with Exxon Mobil Corp to buy 1.5 million tonnes of LNG a year for 20 years from Australia's Gorgon project to be regassified at its upcoming Kochi terminal in south India from late-2014.
The booming economies of China and India have propped up the long-term outlook of LNG market, as demand from traditional buyers such as South Korea and Japan has eased due to the rise in alternative energy sources such as nuclear power and coal.
At present Petronet imports 5 million tonnes of LNG every year from RasGas under a long-term deal, and supplies were to be raised to 7.5 million tonnes from the last quarter of 2009.
"It is 100 percent. Certainly we will receive it from November," Chief Executive Officer P. Dasgupta told reporters.
"India is always going to be driven by supply and not by demand".
Despite the start in April of output from Reliance Industries' huge gas find in its D6 block, which will eventually double local output, India will still have a gas deficit.
"Contrary to our nervousness about D6 gas, in April-June, D6 gas coming in to the tune of almost 25-30 mmscmd (million cubic metres a day), we sold a record 98 trillion British thermal units (tBtu) compared to 78 tBtu year ago," Dasgupta said.
He said Petronet's 10 million tonne a year Dahej terminal in western India could regassify 160 cargoes per year, and the enhanced RasGas supplies would translate to 120 cargoes. Its short-term supply deal with BP will end next month.
In the June quarter, Petronet imported 4 spot cargoes and in September quarter it planned to import 6 parcels, with two scheduled for arrival in September. Dasgupta said the firm would import 5 spot LNG cargoes in October and November.
He said Petronet was also in talks with Indian explorer Oil and Natural Gas Corp to jointly acquire a stake in InterOil's LNG project in Papua New Guinea. The Canadian firm has said it was looking to sell a stake of up to 35 percent.
Earlier this month Petronet signed a deal with Exxon Mobil Corp to buy 1.5 million tonnes of LNG a year for 20 years from Australia's Gorgon project to be regassified at its upcoming Kochi terminal in south India from late-2014.
Oct 3, 2008
No change in wholesale gas price pressure, NGSA
"This winter season, we believe that all the combined market forces (slightly warmer than normal weather, stagnant economic growth, moderate growth in overall demand, near record storage levels and a healthy supply) will cause flat price pressure on the gas market compared to last winter," said NGSA Chairman Patrick J. Kuntz, who also is vice-president of gas and oil sales at Marathon Oil Co.
He said US gas production is expected to be nearly 8% higher this winter than a year earlier, based on an independent analysis by ICF International of Fairfax, Va., which NGSA commissioned. "Explorers and developers responded to the market signals, and companies are producing more domestic gas. Current production rates are at their highest level since the early to mid-1970s," Kuntz told reporters at a briefing.
Technology also is playing a significant role, he continued. "Much of our increase in domestic gas production is coming from unconventional plays where technological advances have unlocked the resource. Horizontal drilling is another big advance that allows more gas to be produced from a single well," he said.
NGSA forecasts that 31,530 wells will be completed during the 2008-09 heating season, 753 or 2.4% more than the 30,777 completions during the same period a year earlier. Average production is expected to climb 7.9% year-to-year to 57.5 bcfd from 53.3 bcfd, while the annual average rig count is expected to rise 4.4% to 1,535 from 1,470.
He said US gas production is expected to be nearly 8% higher this winter than a year earlier, based on an independent analysis by ICF International of Fairfax, Va., which NGSA commissioned. "Explorers and developers responded to the market signals, and companies are producing more domestic gas. Current production rates are at their highest level since the early to mid-1970s," Kuntz told reporters at a briefing.
Technology also is playing a significant role, he continued. "Much of our increase in domestic gas production is coming from unconventional plays where technological advances have unlocked the resource. Horizontal drilling is another big advance that allows more gas to be produced from a single well," he said.
NGSA forecasts that 31,530 wells will be completed during the 2008-09 heating season, 753 or 2.4% more than the 30,777 completions during the same period a year earlier. Average production is expected to climb 7.9% year-to-year to 57.5 bcfd from 53.3 bcfd, while the annual average rig count is expected to rise 4.4% to 1,535 from 1,470.
Sep 17, 2008
Stronger LNG prices
Qatargas chairman and CEO Faisal al-Suwaidi has forecasted stronger price levels as well as demand in the Atlantic Basin.
“Qatar sees much of the new growth potential in the Atlantic Basin and has executed strategies to develop secure markets there,” al-Suwaidi said. “Achieving these objectives required investing billions in terminals and ships to access the deep liquid markets of the northwest Europe and the US. This investment ensures sufficient market capacity for the new large trains.
“By 2010 over 120mn tonnes of LNG could be targeting the Atlantic Basin and there should be over 200mn tonnes of terminal capacity waiting for it. So what we see is solid growth in LNG demand in all markets and sufficient production, ships and terminals to deliver it where it is needed the most.”
While declining to discuss specific price ranges, al-Suwaidi added that “We see that gas is deeply discounted in the Atlantic Basin relative to oil on an equivalent energy basis, and hope to see prices strengthen relative to oil in the coming years.”
Sitting on 900tn cu ft of gas reserves, the third largest reserves in the world, Qatar has invested billions in its infrastructure to ensure that it can meet its ambitious goals for exporting LNG to Asia, Europe and North America.
Al-Suwaidi is positive about LNG growth for the future. “Eight new LNG trains around the world will come into production increasing capacity by some 20%,” he said. “This new capacity is meeting customers in Asia and the Atlantic Basin ready for the gas. This expansion will continue, albeit at a slightly slower pace, and likely to average over 10% per annum growth through the end of the decade.”
“Qatar sees much of the new growth potential in the Atlantic Basin and has executed strategies to develop secure markets there,” al-Suwaidi said. “Achieving these objectives required investing billions in terminals and ships to access the deep liquid markets of the northwest Europe and the US. This investment ensures sufficient market capacity for the new large trains.
“By 2010 over 120mn tonnes of LNG could be targeting the Atlantic Basin and there should be over 200mn tonnes of terminal capacity waiting for it. So what we see is solid growth in LNG demand in all markets and sufficient production, ships and terminals to deliver it where it is needed the most.”
While declining to discuss specific price ranges, al-Suwaidi added that “We see that gas is deeply discounted in the Atlantic Basin relative to oil on an equivalent energy basis, and hope to see prices strengthen relative to oil in the coming years.”
Sitting on 900tn cu ft of gas reserves, the third largest reserves in the world, Qatar has invested billions in its infrastructure to ensure that it can meet its ambitious goals for exporting LNG to Asia, Europe and North America.
Al-Suwaidi is positive about LNG growth for the future. “Eight new LNG trains around the world will come into production increasing capacity by some 20%,” he said. “This new capacity is meeting customers in Asia and the Atlantic Basin ready for the gas. This expansion will continue, albeit at a slightly slower pace, and likely to average over 10% per annum growth through the end of the decade.”
Jul 12, 2008
LNG News Headlines - July 7 -12, 2008
Samsung signs up Kanfa for first floating LNG vessel
Sevan Marine subsidiary Kanfa Aragon AS today signed a Letter of Intent with Samsung Heavy Industries Co. Ltd. in Korea for the development of a liquefied natural gas production topside to the world's first Floating Liquefied Natural Gas (FLNG) production vessel.
The FLNG topside will be based on Kanfa's liquefaction technology. Kanfa's scope of work includes the design and engineering of the liquefaction plant as well as procurement of major equipment items. The contract value is estimated at approximately US$200 million.
The vessel will be owned and operated by FLEXLNG and will be ready for operation late 2011. The vessel will have a gas processing and liquefaction topside with an LNG capacity of approximately 1.7 million metric tons (15. million tonnes) per annum LNG.
Sevan Marine wins $200 mln LNG vessel project
Norway's Sevan Marine said on it had won a $200 million deal from South Korea's Samsung Heavy Industries Co (010140.KS: Quote, Profile, Research) to supply its technology for a liquefied natural gas (LNG) production vessel.
The topside production equipment for the vessel will be based on liquefaction technology developed by Sevan's Kanfa Aragon AS subsidiary, Sevan Marine ASA said in a statement.
"Kanfa Aragon's scope of work includes the design and engineering of the liquefaction plant as well as procurement of major equipment items," Sevan Marine said.
"The contract value is estimated at approximately $200 million," Sevan said.
The vessel will be ready for operation in late 2011, it said.
Argentina Imports Third LNG Cargo as Bolivia Cuts Supply
July 11 (Bloomberg) -- Argentina may receive its third cargo of liquefied natural gas for delivery this month at Excelerate Energy LLC's Bahia Blanca GasPort terminal amid reduced gas supplies from neighboring Bolivia.
The Madrid Spirit, a 138,000 cubic-meter tanker, set sail from Idku terminal in Egypt carrying a cargo from the North African country and will reach Argentina on July 28, AISlive data on Bloomberg show. BG Group Plc and Gaz De France market Idku's output, according to World LNG Review 2008 published by U.S. Energy Intelligence Research.
Bolivia currently is sending about 2 million cubic meters of gas of day to Argentina, 26 percent of the 7.7 million cubic meters it agreed to sell in 2006, ABI reported, citing Energy Minister Carlos Villegas.
The first two LNG cargoes into Argentina came from Trinidad and Tobago in May and June, the ship tracking data showed, where BP Plc and partners produce LNG, natural gas that's been chilled into a liquid to be shipped on specialist tankers,
Argentina faces energy shortages after price caps curtailed investments and economic growth increased demand. The government rationed power to the country's biggest industrial companies last year after the coldest winter in about eight decades.
StatoilHydro says Snoehvit LNG restarted
Norway's StatoilHydro restarted production of liquefied natural gas (LNG) from its Snoehvit field in the Arctic on Thursday and the plant is now operating at 60 percent of capacity, the company said on Friday. The LNG plant at Hammerfest on the shores of the Barents Sea has been beset by teething problems since its start up in late 2007.
Samsung Heavy completes construction of worlds no. 1 LNG tanker
Samsung Heavy Industries Co. of South Korea, the world's second-largest shipyard, said Friday it has completed building the world's largest liquefied natural gas (LNG) tanker.
Mozah, the name of the 266,000-cubic-meter tanker, will be transferred to Qatar in August, and supply gas to the United States and Europe, said Samsung.
Samsung Heavy Industries won the 290 million U.S. dollar contract to build the LNG tanker in March 2006, the then largest-ever contract, the company said.
Samsung said by 2010 it plans to deliver 10 additional LNG tankers of the same size to Qatar.
Spice Energy to import LNG from Indonesia
NEW DELHI: Spice Energy will import LNG from Indonesia at its proposed $400 million import terminal in Haldia while its unit Cals Refineries has signed a deal with oil major BP plc to source up to five million tonnes a year of crude oil for its $1.1 billion refinery in the same city.
“We have signed a framework agreement with Indonesian State-run firm Pertamina for sourcing liquefied natural gas for the Haldia import and re-gassification facility we plan to set up by 2011,” Spice Energy CEO Ravi Chilukuri told PTI.
Spice Energy is setting up a 2.5 million tonnes facility that would sell gas to fertilizer plants in West Bengal.
In the same port city, Cals Refineries, the Bombay Stock Exchange listed firm, where Spice Energy promoters hold just under 15 per cent stake, is relocating a five million tonne refinery from Germany by the first quarter of 2010. It has also got BP to commit 2.5 million tonnes a year of heavy crude and a similar quantity of light crude for the refinery. He said Spice had also signed a deal with Indonesian miner PT Tambang Batubara Bukit Asam Tbk to buy six million tonnes of coal a year for 20 years from 2011. — PTI
Chevron to triple size of Australia LNG project
U.S. energy firm Chevron Corp plans to triple the production capacity of its proposed Wheatstone liquefied natural gas (LNG) project off western Australia to 15 million tonnes a year, the firm said.
Chevron said expansion plans for the project came after it found a significant gas extension at its Iago gas field, which lies adjacent to its Wheatstone gas field in western Australia.
Chevron, which is also the operator of the proposed Gorgon LNG project in the same region, said it was now looking at combining the resources in the Wheatstone and Iago fields into a single project with three processing units.
"We've now got enough gas to support a multi-train development and we're also looking at the option of bringing in third-party gas," Chevron's spokeswoman Nicole Hodgson said.
The Wheatstone LNG project, which will also supply Australian markets as well as exports, is expected to enter the front-end engineering and design (FEED) stage in 2009, she said.
Italy sets new tariffs for LNG terminal use
Italy's energy regulator has updated the tariffs for the use of LNG terminals in the country from October 2008 to September 2012.
The Authority for Electricity and Gas has set the tariffs to allow for a rate of return (WACC) on Regulatory Asset Base equal to 7.6 percent in real terms before tax, according to Snam Rete Gas, Italy's gas network operator.
"Furthermore, it is established an additional remuneration, up to 3 percent above WACC, for new capex for a maximum of 16 years period," it said in a statement on Thursday.
The operational costs will be adjusted every year taking into account inflation and efficiency gains set by the regulator equal to 0.5 percent in real terms, it said.
"The regulation for the next period guarantees a substantial stability leveraging on principles of continuity and coherence with the objective of providing incentives for development capex," Snam Rete Gas Chief Executive Carlo Malacarne said in the statement.
The planned expansion will bring the total capacity of Chevron-operated LNG projects in Australia, Wheatstone and Gorgon, to 30 million tonnes a year.
Sevan Marine subsidiary Kanfa Aragon AS today signed a Letter of Intent with Samsung Heavy Industries Co. Ltd. in Korea for the development of a liquefied natural gas production topside to the world's first Floating Liquefied Natural Gas (FLNG) production vessel.
The FLNG topside will be based on Kanfa's liquefaction technology. Kanfa's scope of work includes the design and engineering of the liquefaction plant as well as procurement of major equipment items. The contract value is estimated at approximately US$200 million.
The vessel will be owned and operated by FLEXLNG and will be ready for operation late 2011. The vessel will have a gas processing and liquefaction topside with an LNG capacity of approximately 1.7 million metric tons (15. million tonnes) per annum LNG.
Sevan Marine wins $200 mln LNG vessel project
Norway's Sevan Marine said on it had won a $200 million deal from South Korea's Samsung Heavy Industries Co (010140.KS: Quote, Profile, Research) to supply its technology for a liquefied natural gas (LNG) production vessel.
The topside production equipment for the vessel will be based on liquefaction technology developed by Sevan's Kanfa Aragon AS subsidiary, Sevan Marine ASA said in a statement.
"Kanfa Aragon's scope of work includes the design and engineering of the liquefaction plant as well as procurement of major equipment items," Sevan Marine said.
"The contract value is estimated at approximately $200 million," Sevan said.
The vessel will be ready for operation in late 2011, it said.
Argentina Imports Third LNG Cargo as Bolivia Cuts Supply
July 11 (Bloomberg) -- Argentina may receive its third cargo of liquefied natural gas for delivery this month at Excelerate Energy LLC's Bahia Blanca GasPort terminal amid reduced gas supplies from neighboring Bolivia.
The Madrid Spirit, a 138,000 cubic-meter tanker, set sail from Idku terminal in Egypt carrying a cargo from the North African country and will reach Argentina on July 28, AISlive data on Bloomberg show. BG Group Plc and Gaz De France market Idku's output, according to World LNG Review 2008 published by U.S. Energy Intelligence Research.
Bolivia currently is sending about 2 million cubic meters of gas of day to Argentina, 26 percent of the 7.7 million cubic meters it agreed to sell in 2006, ABI reported, citing Energy Minister Carlos Villegas.
The first two LNG cargoes into Argentina came from Trinidad and Tobago in May and June, the ship tracking data showed, where BP Plc and partners produce LNG, natural gas that's been chilled into a liquid to be shipped on specialist tankers,
Argentina faces energy shortages after price caps curtailed investments and economic growth increased demand. The government rationed power to the country's biggest industrial companies last year after the coldest winter in about eight decades.
StatoilHydro says Snoehvit LNG restarted
Norway's StatoilHydro restarted production of liquefied natural gas (LNG) from its Snoehvit field in the Arctic on Thursday and the plant is now operating at 60 percent of capacity, the company said on Friday. The LNG plant at Hammerfest on the shores of the Barents Sea has been beset by teething problems since its start up in late 2007.
Samsung Heavy completes construction of worlds no. 1 LNG tanker
Samsung Heavy Industries Co. of South Korea, the world's second-largest shipyard, said Friday it has completed building the world's largest liquefied natural gas (LNG) tanker.
Mozah, the name of the 266,000-cubic-meter tanker, will be transferred to Qatar in August, and supply gas to the United States and Europe, said Samsung.
Samsung Heavy Industries won the 290 million U.S. dollar contract to build the LNG tanker in March 2006, the then largest-ever contract, the company said.
Samsung said by 2010 it plans to deliver 10 additional LNG tankers of the same size to Qatar.
Spice Energy to import LNG from Indonesia
NEW DELHI: Spice Energy will import LNG from Indonesia at its proposed $400 million import terminal in Haldia while its unit Cals Refineries has signed a deal with oil major BP plc to source up to five million tonnes a year of crude oil for its $1.1 billion refinery in the same city.
“We have signed a framework agreement with Indonesian State-run firm Pertamina for sourcing liquefied natural gas for the Haldia import and re-gassification facility we plan to set up by 2011,” Spice Energy CEO Ravi Chilukuri told PTI.
Spice Energy is setting up a 2.5 million tonnes facility that would sell gas to fertilizer plants in West Bengal.
In the same port city, Cals Refineries, the Bombay Stock Exchange listed firm, where Spice Energy promoters hold just under 15 per cent stake, is relocating a five million tonne refinery from Germany by the first quarter of 2010. It has also got BP to commit 2.5 million tonnes a year of heavy crude and a similar quantity of light crude for the refinery. He said Spice had also signed a deal with Indonesian miner PT Tambang Batubara Bukit Asam Tbk to buy six million tonnes of coal a year for 20 years from 2011. — PTI
Chevron to triple size of Australia LNG project
U.S. energy firm Chevron Corp plans to triple the production capacity of its proposed Wheatstone liquefied natural gas (LNG) project off western Australia to 15 million tonnes a year, the firm said.
Chevron said expansion plans for the project came after it found a significant gas extension at its Iago gas field, which lies adjacent to its Wheatstone gas field in western Australia.
Chevron, which is also the operator of the proposed Gorgon LNG project in the same region, said it was now looking at combining the resources in the Wheatstone and Iago fields into a single project with three processing units.
"We've now got enough gas to support a multi-train development and we're also looking at the option of bringing in third-party gas," Chevron's spokeswoman Nicole Hodgson said.
The Wheatstone LNG project, which will also supply Australian markets as well as exports, is expected to enter the front-end engineering and design (FEED) stage in 2009, she said.
Italy sets new tariffs for LNG terminal use
Italy's energy regulator has updated the tariffs for the use of LNG terminals in the country from October 2008 to September 2012.
The Authority for Electricity and Gas has set the tariffs to allow for a rate of return (WACC) on Regulatory Asset Base equal to 7.6 percent in real terms before tax, according to Snam Rete Gas, Italy's gas network operator.
"Furthermore, it is established an additional remuneration, up to 3 percent above WACC, for new capex for a maximum of 16 years period," it said in a statement on Thursday.
The operational costs will be adjusted every year taking into account inflation and efficiency gains set by the regulator equal to 0.5 percent in real terms, it said.
"The regulation for the next period guarantees a substantial stability leveraging on principles of continuity and coherence with the objective of providing incentives for development capex," Snam Rete Gas Chief Executive Carlo Malacarne said in the statement.
The planned expansion will bring the total capacity of Chevron-operated LNG projects in Australia, Wheatstone and Gorgon, to 30 million tonnes a year.
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