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LNG Shipping News AN LNG JOURNAL TITLE ON LNG CARRIERS 30 April 2020 Record LNGC newbuilding SHIPPING NEWS slots reserved AGENDA Qatar Petroleum (QP) has reserved shipbuilding slots in China in what could be a MARKETING precursor for a major LNGC order for up to 60 ships. The slots were reserved at Hudong-Zhonghua Shipbuilding Group (Hudong), a wholly owned subsidiary of China State Ship- building Corporation Limited (CSSC). Some of the vessels will be used for exports from the North Field expansion project. Due to the virus pandemic, the signing ceremony was held remotely Imports/exports hit Up to 60 LNGCs could be or- 2 dered in China out of the 100 plus right track to ensuring that our fu- great support to this effort in line Delays on the cards envisaged, as part of Qatar’s natu- ture LNG fleet requirements will with our mutual desire to further 3 ral gas expansion plans and as be met in due time to support our strengthen the excellent relations BUSINESS fleet replacements. increasing LNG production capacity. between China and Qatar, espe- Saga’s first cargo “The value of this landmark cially during the unusual circum- 4 Virtual ceremony agreement has the potential to be stances the world is currently Port Kembla to Speaking at the virtual signing cer- well in excess of QR11 bill, depend- facing. I am also very grateful to expand 4 emony, which was held on 22nd ing on our requirements and the the Qatar Petroleum and Qatargas April, HE Saad Sherida Al-Kaabi, extent of China’s LNG shipbuilding teams, whose dedicated efforts Cameron Phase 1 Qatar’s Minister of State for Energy capacity expansion. To this end, were instrumental in realising this nears completion 4 Affairs and QP’s President and Qatar Petroleum is pleased and agreement,” he concluded. FINANCE CEO, said, “Today, we have taken proud to support the expansion of CSSC Chairman, Lei Fanpei, Nakilat’s increased yet another concrete step to rein- the LNG ship construction capacity added, “The 174,000 cu m LNGC profit 6 force Qatar’s commitment to its in China and looks forward to fur- for Qatar Petroleum is the latest global reputation as a safe and re- ther growth in the near future. generation of LNGC design cus- GTT buoyed by liable LNG producer at all times “I would like to take this op- tomised by CSSC for Qatar. The LNGC orders 6 and under all circumstances. portunity to thank Hudong’s team carrier has the world’s leading ConnectLNG “By entering into this agree- for all the hard work to bring this performance for efficiency, relia- raises funds 6 ment to reserve a major portion of contract to fruition during these bility and environmental conserva- Hudong's LNG ship construction ca- challenging times. I would also tion, demonstrating CSSC Group’s TECHNOLOGY pacity through the year 2027, we like to thank the leadership of our great efforts and commitment to are confident that we are on the esteemed partner, CSSC, for their the success of Qatar Petroleum’s projects.” QP’s LNGC fleet newbuilding Goldboro’s FID delayed again programme is described as the Pieridae is currently in negotia- On 9th July last year, the de- largest of its kind in the LNG in- Distance survey tions with German utility Uniper veloper negotiated extensions of dustry’s history and will play a piv- trials 7 to further extend the Goldboro the key deadlines that were origi- otal role in meeting the company’s ABS offers LNG project’s FID deadline to nally agreed under Pieridae’s 20- local and international projects’ remote surveys 9 June, 2021, the company said in a year contract with Uniper. shipping requirements, as well as recent financial statement. These included forecast com- replacing some of Qatar's existing LNG ORDERBOOK A 20-year agreement had al- mercial deliveries of gas to start LNG fleet. LNG small scale fleet ready been signed with Uniper to between 30th November, 2024 and Broking sources have reported offtake the entire Train 1 at Gold- 31st May, 2025; and an extension eight, plus eight options initially 10 boro, which will total 5 mill to 30th September, 2020 of the agreed at a cost of $180 mill per LNG carrier orderbook tonnes per annum. deadline to take a positive FID. n vessel. n 12 2 l NEWS LNG Shipping News 30 April 2020 LNG trades hit Arrow Energy Data and analytics company, GlobalData, has looked at how COVID-19 and other takes FID factors have affected Australian exports and Indian imports. Royal Dutch Shell’s Australian Taking Australia first, the fall in oil Ahmed added: “Despite the such as ceramics and chemicals, joint-venture, Arrow Energy, and gas prices, weak economic landmark OPEC+ deal, oil prices has resulted in the slump of LNG recently agreed a final invest- outlook, lowering LNG demand are unlikely to exhibit immediate demand. This led to some of the ment decision (FID) for the and supply glut, have hit the recovery, given the scale of de- Indian LNG importers issuing first phase of its Surat Gas Pro- country’s LNG sector hard. mand destruction across the force majeure notices to their ject in Queensland. Haseeb Ahmed, GlobalData’s globe. This effectively translates suppliers.” Arrow Energy is co-owned Oil and Gas Analyst, explained: to the likelihood of LNG operators Besides seeking delayed gas de- by Shell and PetroChina. “The unparalleled price crash had delaying discretionary expendi- liveries, Petronet LNG issued a The first phase of the $6.4 prompted LNG companies to re- ture, while having a uni-direc- force majeure notice to its sup- bill project, which was given duce capex and defer financial in- tional focus on improving plier - Qatargas - in late March, the green light by the Queens- vestment decisions (FID) on their operational efficiencies, which 2020. Similarly, Gujarat State land Government last February, respective projects. Woodside is can further delay LNG projects.” Petroleum Corp (GSPC) has issued is expected to produce up to contemplating to defer FID for its force majeure notices to its gas 90 bill cu ft per year of natural Pluto Train 2 by a year to 2021, Indian decline suppliers, as well as cancelling the gas at the optimum level of which is likely to push the start As for India, stringent measures imports of 11 LNG cargoes sched- production. year to 2025 from the previously adopted to contain COVID-19 uled to be delivered between May, The gas produced will be expected 2024.” pandemic led to a sharp decline 2020 and March, 2021. transported to the Shell-oper- Santos is to reduce its spending in natural gas demand, due to Ahmed concluded: “Already ated Queensland Curtis Lique- by about $550 mill this year. The fall in industrial and domestic the lockdown had serious impact fied Natural Gas (QCLNG) company is likely to delay its consumption. on Indian LNG importers and its facility, jointly owned by Barossa gas project FID, which was With LNG storage tanks almost extension until 3rd May can jolt Shell, China’s CNOOC and initially expected to be confirmed full, Indian LNG importers were the companies even more. This Tokyo Gas, to sell LNG to both this year. forced to refuse cargoes, citing may lead to further reduction of domestic and export markets. This may affect Darwin LNG force majeure clauses. Despite natural gas consumption and put QCLNG’s existing connections terminal’s expansion plans, as this this, LNG supply still exceeds de- the LNG imports at danger of with the market will help project was earmarked to provide mand, which will cause demand to declining to a level lower than a Arrow Energy achieve cost ef- gas to Darwin once it stops receiv- fall further in the coming months. year ago. However, a long-term ficiency, Shell claimed. ing gas from the Bayu-Undan field. Ahmed explained: “The exten- scenario might provide an opti- At a time when the down- Also, due to COVID-19-induced sions of lockdown and travel re- mistic view of the Indian LNG sec- ward economic curve, due to LNG demand uncertainty, Western strictions have impacted port tor, once the travel restrictions the oil and gas price slump Gas Corp is likely to delay its operations In India. Further, the are eased and demand gradually caused by the coronavirus, has Equus floating project. closure of gas-based industries, recoups.” n already prompted energy gi- ants to defer their investment decisions on projects, Shell will inject a substantial amount of cash into Australia’s A$2 trill economy, which is likely to ease its tight gas market. The Surat project start-up will also help Australia to im- prove its gas production, as its southeastern region is ex- pected to suffer a gas shortage in the near future, NASDAQ said in a report. n No part of this publication may be LNG Shipping News Editor Subscriptions reproduced or stored in any form by any 2 Prospect Road Ian Cochran Stephan Venter mechanical, electronic, photocopying, St Albans AL1 2AX +44 (0)7748 144265 Tel: +44 (0) 20 7253 2700 recording or any other means without the prior written consent of the publisher. 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