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October 23, 2018
INPEX ships 1st LNG cargo from Ichthys LNG Project
INPEX confirmed that the first cargo of LNG from Ichthys LNG had left Darwin, Australia. The first cargo was headed to Naoetsu LNG terminal in Japan. At full capacity of Ichthys LNG, the offshore facilities and the two-train onshore liquefaction plant will supply 8.9 MTPA of LNG and 1.65 MTPA of LPG, along with 100,000 barrels of condensate per day.
Ichthys LNG is led by INPEX (operator, 62.245%) alongside major partner Total (30%) and the Australian subsidiaries of CPC Corporation Taiwan (2.625%), Tokyo Gas (1.575%), Osaka Gas (1.2%), Kansai Electric Power (1.2%), JERA (0.735%) and Toho Gas (0.42%).
Edited from INPEX and Total press release.
October 22, 2018
CNOOC and TOTAL amend LNG SPA
Total and CNOOC have signed an amendment to their existing LNG SPA to further strengthen their cooperation. The partners have increased the contract volume from 1 MTPA to 1.5 MTPA of LNG, sourced from Total’s global LNG portfolio, and have extended the term of contract to 20 years. The initial SPA was signed in 2008, with an annual contract volume of 1 MTPA for a period of 15 years.
Edited from Total press release.
October 22, 2018
IEA mentions the risk of insufficient LNG investment and shipping capacity
IEA mentioned in its third annual edition of the Global Gas Security Review that global natural gas markets are being reshaped by the development of major emerging LNG buyers led by China, and the rising production and exports from the United States.
The analysis finds that, while there have been real improvements in LNG flexibility that can contribute to easing supply shortages, uncertainties remain for the future evolution of gas markets. This includes a risk of tightening from insufficient investment in production and infrastructure capacity, or questions surrounding future shipping capacity growth, a pre-condition for LNG market flexibility. These uncertainties could have an impact on price volatility and hurt consumers – especially the most price-sensitive emerging buyers – and cause additional security concerns.
The report also addresses how LNG markets are reshaping shipping needs. The risk of a lack of timely investment in the LNG carrier fleet could pose a threat to market development and security of supply, which could materialize even earlier than the risk of insufficient liquefaction capacity. To address these issues, supply flexibility remains a key prerequisite to ensure further global gas trade development and security. Yet the priorities in terms of flexibility differ for long-term traditional buyers who seek the removal of destination clauses, and new emerging buyers whose priority is more focused on procuring short-term supply, usually for prompt execution.
Edited from IEA press release.
October 18, 2018
Kinder Morgan delays Elba Island LNG export project again
Kinder Morgan, the builder and primary sponsor of the Elba Island LNG export project, has mentioned that it pushed back the startup for its plant and the facility would be in service in the first quarter of 2019. The company said earlier this year that the liquefaction facility would be in operation in the fourth quarter of this year. Originally, the startup date was expected in the third quarter of this year.
The project is currently under construction of ten liquefaction units with a total capacity of 2.5 MTPA of LNG. The first of the ten units will be operated in the first quarter next year, with the remaining nine units scheduled to come online throughout 2019, according to Kinder Morgan.
No official press release, Edited from news articles.
October 17, 2018
Arkas Bunkering and Sumitomo sign a protocol for LNG bunkering
Arkas Bunkering in Turkey have signed a protocol with Sumitomo Corporation for the use of LNG as bunker fuel in Turkish and nearby seas.
A protocol focuses on distribution network and infrastructure particularly in Turkey and the surrounding region. In terms of volume, about 2.8 million tons of fuel per year are used in this region. With the collaboration, Ship-To-Ship LNG bunkering will be offered for the first time in Turkey.
Edited from Arkas Bunkering press release.