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November 21, 2016
Tokyo Gas and Centrica sign MoU to swap LNG
Tokyo Gas signed an MoU with Centrica today. Under the terms of the MoU, a framework has been agreed whereby both companies will work together to optimise contracted volumes from both Atlantic and Asia-Pacific markets through location swaps, which would achieve LNG transportation savings and lower the overall cost of LNG procurement. Tokyo Gas will procure FOB LNG from the Cove Point LNG project in the U.S.
Swap volumes could reach up to 1.4mtpa. Both companies intend to enter into a legally binding contract on the basis of this framework.
Edited from Centrica press release.
November 18, 2016
Colombia receives its first LNG cargo
Colombia has received this week its first LNG commissioning cargo at the FSRU Höegh Grace at the port of Cartagena. BP’s LNGC British Innovator, docked alongside the FSRU, that arrived in Colombia in the beginning of November. The cargo was sourced from the Atlantic LNG facility in Point Fortin, Trinidad and Tobago.
The Höegh Grace is owned by Höegh LNG and chartered to Colombia’s Sociedad Portuaria El Cayao (SPEC) for 20 years. Höegh Grace will supply gas to Grupo Termico, a consortium of thermal generators on Colombia’s Caribbean coast. The vessel will enable Colombia to import up to 3.75mtpa of LNG. Commercial operation is expected to commence in early December 2016.
November 14, 2016
Ocean LNG signs SPA with Brazil-based CELSE
Qatar Petroleum (QP) President and CEO, Saad Sherida Al-Kaabi hosted a signing ceremony for a long-term SPA between QP’s affiliate, Ocean LNG Limited, and Brazil based Centrais Elétricas de Sergipe (CELSE), a joint venture between GG Power and Ebrasil. Under the terms of the agreement, Ocean LNG, which was established for the purpose of marketing QP’s future international LNG supply portfolio sourced outside of the State of Qatar, will supply 1.3mtpa of LNG to CELSE, on an Ex-Ship basis. The shipments, which will begin in 2020 will be for use at CELSE’s Porto de Sergipe power project near Aracaju, in the Brazilian state of Sergipe.
Edited from QP Press Release.
October 28, 2016
IMO sets 2020 for global sulfur cap
In a landmark decision, 1 January 2020 has been set as the implementation date for a significant reduction in the sulphur content of the fuel oil used by ships. The decision to implement a global sulphur cap of 0.50% m/m (mass/mass) in 2020 was taken by the International Maritime Organization (IMO), the regulatory authority for international shipping, during its Marine Environment Protection Committee (MEPC), meeting for its 70th session in London. It represents a significant cut from the 3.5% m/m global limit currently in place and demonstrates a clear commitment by IMO to ensuring shipping meets its environmental obligations.
Further work to ensure effective implementation of the 2020 global sulfur cap will continue in the Sub-Committee on Pollution Prevention and Response (PPR).
The date of 2020 was agreed in amendments adopted in 2008. When those amendments were adopted, it was also agreed that a review should be undertaken by 2018 in order to assess whether sufficient compliant fuel oil would be available to meet the 2020 date. If not, the date could be deferred to 2025. That review was completed in 2016 and submitted to MEPC 70. The review concluded that sufficient compliant fuel oil would be available to meet the fuel oil requirements.
Ships can meet the requirement by using low-sulphur compliant fuel oil. Another alternative fuel is methanol which is being used on some short sea services.Ships may also meet the SOx emission requirements by using approved equivalent methods, such as exhaust gas cleaning systems or “scrubbers”, which “clean” the emissions before they are released into the atmosphere. In this case, the equivalent arrangement must be approved by the ship’s Administration (the flag State).
An increasing number of ships are also using gas as a fuel as when ignited it leads to negligible sulphur oxide emissions. This has been recognised in the development by IMO of the International Code for Ships using Gases and other Low Flashpoint Fuels (the IGF Code), which was adopted in 2015.
Adapted from IMO press release.
October 24, 2016
Pavilion Gas and Shell to import next tranche of LNG for Singapore
The Singapore Energy Market Authority (EMA) has awarded Pavilion Gas Pte Ltd and Shell Eastern Trading (Pte) Ltd each a licence to import the next tranche of LNG for Singapore. This was announced today by Mr S Iswaran, Minister for Trade and Industry during the opening of Singapore International Energy Week 2016. Pavilion Gas and Shell were selected via a two-stage Request for Proposal (RFP) process to appoint up to two LNG importers to supply Singapore with LNG. Pavilion Gas and Shell will each have an exclusive franchise: the franchise will end as soon as one of the importers reaches 1mtpa of deliveries or at the end of the 3-year period. This next tranche of imports is expected to commence from 2017.
Edited from EMA press release.