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You will find in this section the latest public news regarding the liquefied natural gas market, regulation and innovations. Please type any keyword in the search box and /or use the  ”area”, “topic” and “date” filters to refine your search. Feel free to submit your news to GIIGNL using the contact form.


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.

October 19, 2016

Qatargas and Petronas ink new 5 year SPA

Qatargas today announced the signing of a new five-year SPA with PETRONAS LNG UK Limited.

Under the terms of the new SPA, Qatargas will deliver LNG to PETRONAS until 31 December 2023, an extension of its current contract due to expire on 31 December 2018. [...] A total of 1.1MTPA is secured for a partnership that will now extend to a decade-long supply of LNG to the UK-based entity.The LNG will be supplied from Qatargas 4 (Train 7), a joint venture between Qatar Petroleum and Shell which started production in January 2011 and will be delivered on board Q-Flex LNG vessels to Dragon LNG terminal at Milford Haven, United Kingdom.

Edited from Qatargas press release. 

October 17, 2016

Jean-Marie Dauger appointed President of GIIGNL

Jean-Marie DAUGER became President of GIIGNL (International Group of LNG Importers) at the General Assembly held in New Orleans on the 17th of October 2016. Until that date, he was the Vice-President for Europe of GIIGNL.
Until last year, Jean-Marie DAUGER was Senior Executive VP of ENGIE (ex GDF SUEZ and ex Gaz de France), a member of its Executive Board in charge of Global Gas & LNG.
Jean-Marie DAUGER is also the Co-Chairman of the World Energy Council (WEC).

Born in 1952, Jean-Marie DAUGER is a Chevalier de l’Ordre National du Mérite and Chevalier de la Légion d’Honneur.

October 17, 2016

Golar Power reaches FID on Sergipe Power Project

Golar Power announced today that it has approved taking FID on the Porto de Sergipe Project, a combined cycle power plant in Brazil. Located near Aracaju, the state capital of Sergipe, the 1,516 megawatt power station will be the largest thermal power station in South America. The project will supplement hydropower during dry seasons and help to meet growing demand for electricity in the region. In connection with the Sergipe FID, Golar Power has entered into a 25-year agreement to charter Golar Nanook, a new-build FSRU to be delivered in November 2017. 

Edited from Golar press release.