March 21, 2024 Green light given for Germany’s first land-based terminal
Imports:
Green light given for Germany’s first land-based terminal for liquefied gases in Stade - Press Release Summary: Germany's first land-based terminal for liquefied gases will be constructed in Stade. Hanseatic Energy Hub GmbH committed to the final investment decision for this project. The shareholders, Partners Group, Enagás, Dow, and the Buss Group, have secured financing for the terminal.
German Stade LNG hub agrees on land-based terminal from 2027 - Reuters Summary: Backers of the LNG terminal in Germany's Elbe river port of Stade have decided to build a land-based terminal from 2027. The cost of the terminal is around 1 billion euros. Hanseatic Energy Hub (HEH) announced this decision.
Spain's Enagas raises stake in Hanseatic Energy Hub to 15% - Reuters Summary: Enagas, a Spanish gas grid operator, increased its stake in the Hanseatic Energy Hub consortium from 10% to 15% on March 21, 2024. Enagas will manage the construction of a new LNG terminal in Stade, Germany, expected to begin operations in 2027. The total investment for the project is approximately 1.6 billion euros.
Japan’s LNG imports continue to decline - LNG Prime Summary: Japan's LNG imports decreased by 5.9% year-on-year in February 2024 to 6.02 million tonnes. Imports also fell from 6.1 million tonnes in the previous month. Japan's coal imports for power generation decreased by 17.7% to 7.81 million tonnes in February 2024.
Contract:
SEFE Securing Energy for Europe and Oman LNG SPA for 0.4 million tonnes per annum of LNG between 2026 and 2029 - Press Release Summary: SEFE and Oman LNG signed a Sales and Purchase Agreement (SPA) for 0.4 million tonnes per annum of LNG for the years 2026 to 2029. The signing took place on the sidelines of the Berlin Energy Transition Dialogue 2024. SEFE is the first German company to purchase Omani LNG.
Exports:
Fossil-Fuel Chiefs Unite in Slamming Biden LNG Ban - Bloomberg Summary: Fossil-fuel industry leaders opposed President Joe Biden's moratorium on LNG export licenses at CERAWeek. They argue that LNG exports could displace coal and enhance U.S. foreign policy, as seen in Europe post-Russia's invasion of Ukraine.
Petrobras exec says offshore Colombia project could find enough gas for exports - Reuters Summary: Petrobras is drilling in a promising area off Colombia's coast this year, which could justify a large project to supply natural gas to Colombia and for exports. Petrobras' head of exploration and production commented on this on Wednesday.
Venture Global approved to re-introduce hazardous fluids at Louisiana LNG plant - Reuters Summary: Venture Global LNG received U.S. regulatory approval on March 20, 2024, to reintroduce hazardous fluids into "HRSG 372" at its Calcasieu Pass LNG export plant in Louisiana. This approval from the U.S. Federal Energy Regulatory Commission (FERC) is part of Venture Global's efforts to start commercial service at Calcasieu.
Price:
Lower LNG prices trigger surge in Asian spot market purchases - Reuters Summary: Asian spot market purchases of LNG have increased due to lower prices. China, India, and Southeast Asia are buying more spot LNG to power industries and generate electricity. China's LNG imports might exceed 78.8 million metric tons, the record volume of 2021.
Analysis:
‘Risk of shortfalls’ in gas driven by Labor government’s ‘policy assault’ - Sky News Australia Summary: Saul Kavonic states Australia's gas market faces "risk of shortfalls." Issue is attributed to the Albanese government's policies. A report from the Australian Energy Market Operator indicates potential gas shortages in southern Australia starting from 2028.
Global LNG market could split if an EU carbon tax is imposed on imports - Wood Mackenzie Summary: EU may extend carbon taxes to LNG imports, transforming the market. Wood Mackenzie's report suggests an EU carbon tax on LNG could create a European price premium and bifurcate the market. The EU has extended its Emission Trading Scheme to shipping, taxing LNG cargoes from 2024.
Is The Global LNG Market Headed For Oversupply And Lower Prices? - RBN Energy Summary: In the LNG market, a shift is occurring from long-term contracts and stable trade to a scenario where a lot of LNG supply is pre-booked, yet there is uncertainty about future LNG demand. The discussion in the RBN blog highlights the building of an LNG generation with the expectation of selling at $10/MMBtu or higher.
Shipping:
Yemen’s Houthis Tell China, Russia Their Ships Won’t Be Targeted - Bloomberg Summary: Yemen-based Houthis told China and Russia their ships won't be attacked in the Red Sea and Gulf of Aden. China and Russia reached an understanding with the Houthis through talks in Oman. China and Russia may provide political support to the Houthis at the United Nations Security Council.
No LNG carrier has transited the Suez Canal for 65 days - Splash Summary: No LNG carrier has transited the Suez Canal for 65 days. The last LNG ship passed through the Suez Canal on January 16. This stoppage is due to the deteriorating security situation in the Red Sea, causing a rerouting of gas carriers around Africa.
Bunkering:
Molgas completes its first German LNG bunkering op - LNG Prime Summary: Molgas completed its first LNG bunkering operation in Germany. The operation was a partnership with Norwegian shipping firm UECC. The truck-to-ship bunkering operation occurred on March 17, 2024, at the port of Cuxhaven, Germany.
Finland’s Hamina LNG terminal hosts first-ever ship bunkering - Offshore Energy Summary: Hamina LNG terminal in Southeastern Finland, at the port of Hamina on the Baltic Sea, served as a ship bunkering site for the first time ever on March 21, 2024. The terminal's operator, Hamina LNG, announced the completion of the bunkering in cooperation with Rohe Solutions and Glander International Bunkering.
Power Generation:
Cryopeak Energy Solutions Enters Long-Term Agreement with Foran Mining to Provide Low Carbon Fuel for Power Generation - Press Release Summary: Cryopeak Energy Solutions Corporation entered into a long-term agreement with McIlvenna Bay Operating Ltd, a subsidiary of Foran Mining Corporation, on March 20, 2024. This agreement is to supply LNG for power generation and mine air ventilation at the McIlvenna Bay project in Northern Saskatchewan. Cryopeak is the largest private, vertically integrated LNG producer and service provider in Canada.
Fuel-Marine:
MEYER WERFT and Disney Cruise Line celebrate keel laying - Press Release Summary: Construction of the next cruise ship for Disney Cruise Line started with a keel-laying ceremony on March 20th, 2024. Its delivery is scheduled for 2025. It will use LNG propulsion. The ship is a sister ship of the Disney Treasure and the Disney Wish, which launched in 2022.
Earnings:
First Gen’s income rises 4% to $277m on LNG business - Manila Standard Summary: First Gen Corp. reported a 4-percent increase in attributable recurring net income to $277 million in 2023 from $265 million in 2022. First Gen's income in 2023 was P15.4 billion, up from P14.3 billion in 2022. FGEN LNG started commissioning in 2023.