Oct
09
LNG Weekly News Flash on 17.06.2019


Good morning and welcome to the LNG Marketplace Weekly News Flash. Here is the latest news we have selected for you from all over the media. Let’s start today with a recap of some of
LNG deals that were signed by Russia at the St. Petersburg International Economic Forum 2019. The Chinese companies are investing in the development of Novatek’s LNG projects in the Arctic region of Russia! Novatek has signed a preliminary deal to create
a joint venture with China’s Sinopec and Gazprombank to market LNG and gas to customers
in China we read on Hellenic Shipping News. According to Marine Log, Russia’s Novatek
and Sovcomflot, China’s Silk Road Fund and COSCO Shipping have also signed an agreement
to establish a shipping joint venture called Maritime Arctic Transport. The new company is aimed to manage an icebreaking
tanker fleet transporting LNG along Russian Arctic coast known as Northern Sea Route. Also the Japanese energy company Mitsui will
invest in Russian Arctic LNG 2 project as we read on The Japan News. Novatek has signed as well two agreements
for sale of LNG to Vietnam. Vietnamese market is of great interest due
to the fast pace growth in energy demand this we found on Kallanish Energy. On the same website we read, that Austrian integrated oil and gas firm OMV, has signed
a cooperation agreement concerning LNG, with Russian state-owned gas company Gazprom. Are the American LNG exports threatened while
several countries, including China, turn to Russian sources? On the other hand, Polish Oil and Gas Company
(PGNiG) has signed an agreement with the Venture Global LNG to increase American
LNG imports to Poland as the country seeks an alternative for Russian supplies informs Reuters. Well, in this situation, Europe reportedly already saved around $8 billion on its natural
gas bill last year, as Russia was forced to renegotiate some gas contracts, given the
pressure of U.S. shale gas revolution, a rapid expansion of the LNG industry and EU liberalization
of energy markets we read on US News and Oil Price. Now, let’s move on to some LNG shipping
headlines. According to Freight Waves, LNG’s shipping first and only cooperative, called “Cool
Pool”, is disbanding due to the diverging business strategies of its founding members! The company was launched in 2015 with LNG
carriers contributed by three owners: Dynagas, GasLog and Golar LNG. The idea behind was to improve the vessels
utilization and to allow for the use of Contracts of Affreightment – a contract for the carriage
of a certain volume over a specified time without chartering a particular vessel. Strong short-term demand for new LNG carriers is expected to lead to an additional 252 newbuild
vessels joining the fleet by 2024. In the long-term demand shall average to 50
vessels per year this piece of news we found on LNG World Shipping. The 2020 sulphur cap seems to have accelerated LNG as fuel adoption! In the first five months of 2019 there are
already 40 new orders, states LNG Industry. Also the analysts have dramatically revised
their LNG bunkering projections. It is predicted presently, that there will
be 101 LNG bunkering locations by 2025, up from the 27 forecasted last year, according
to Splash 247. Last but not least some important news from
Europe! The Tornio Manga LNG gas receiving terminal has been inaugurated in northern Finland,
being the largest in the Nordic region, states Gas World. Pricing agency Platts received its first transparent bid for a cargo of LNG for delivery into Europe! The bid came from Trafigura for a cargo for
delivery into Barcelona at the end of July. Platts assesses the Asian spot price with
its Japan Korea Marker (JKM) process. However, this was the first time the company
had received a transparent bid for that process in Europe! Well, no wonder LNG regas in Europe remains high,
this summer 126% higher than last year and 24% above the record set in Summer 2011. Due to the weak demand from Asia, Europe has
become the destination of choice for LNG produced within the Atlantic basin, as we read on Hellenic
Shipping News. In this scenario, it certainly comes at no surprise, that the first LNG cargo shipped
from Sempra Energy’s Cameron export terminal in Louisiana is heading to France. Another LNG tanker due at Cameron apparently
chartered by Spain’s Repsol from Russia’s Novatek could deliver a Cameron cargo to Spain. The fact, that cargoes are shipped to Europe
shows how weak the demand is in Japan as stated on Finance Yahoo. That’s it for this week. Tune in next week for more news and until
then thanks for tuning in. If you like our weekly news flash and do not
want to miss any of the future episodes, simply subscribe to any of our podcasting channels,
including Youtube, Apple Podcast, SoundCloud, Android Podcast, RSS and Email.