Teekay LNG Partners today reported adjusted net income of $35.6 million for the quarter ended March 31, 2012, compared to $25.9 million for the same period of the prior year.

During the first quarter of 2012, the Partnership generated distributable cash flow of $50.8 million, compared to $39.1 million in the same quarter of the previous year. The increase primarily reflects the incremental distributable cash flow resulting from the following acquisitions: Multigas carriers delivered in June and October 2011; a 33 percent interest in four liquefied natural gas (LNG) carriers delivered between August 2011 and January 2012; one liquefied petroleum gas (LPG) carrier delivered in September 2011; and a 52 percent interest in six LNG carriers completed in February 2012.

On April 12, 2012, the Partnership declared a cash distribution of $0.675 per unit for the quarter ended March 31, 2012. The cash distribution was paid on May 14, 2012 to all unitholders of record on April 23, 2012.

“The Partnership’s distributable cash flows increased in the first quarter due to a month of contribution from our interest in the Maersk LNG fleet, in addition to incremental contributions from the newbuilding Multigas carrier and two newbuilding Angola LNG carriers which delivered during the past two quarters,” noted Peter Evensen, Chief Executive Officer of Teekay GP L.L.C. “These additional cash flows enabled us to raise our first quarter distribution by 7 percent, while maintaining our coverage ratio above 1.0.”

“The delivery of the fourth and final Angola LNG carrier in January completed our latest newbuilding program; however, we continue to actively pursue new acquisition opportunities and organic growth projects,” Mr. Evensen continued.

“Given the positive market fundamentals in the LNG sector and our financial strength, we believe there will continue to be attractive growth opportunities for the Partnership.”

LNG World News Staff, May 17, 2012

GasLog , an international owner, operator and manager of liquefied natural gas (LNG) carriers, today reported its financial results for the quarter ended March 31, 2012.

Highlights

• GasLog reports Revenue of $16.6 million, EBITDA of $8.4 million and Profit of $2.2 million, for the first quarter of 2012.
• GasLog’s budgeted new building program is fully funded, based on initial public offering “IPO”, concurrent private placement and committed debt.
• The 8 LNG newbuildings are on schedule and within budget.
• 100% utilization of GasLog Savannah and GasLog Singapore during the first quarter of 2012.
• 40% of the floating interest rate exposure has been hedged at a weighted average interest rate of approximately 4.4% (including margin) as of March 31, 2012.
• Continued strong fundamentals for the LNG industry.

Mr. Peter G. Livanos, Chairman and Chief Executive Officer, stated “We were satisfied that the completion of our recent offering has now provided the capital for us to implement the business plan for our committed new ships under construction. In addition to this, and in spite of increased costs related to our becoming a public company, we are pleased to report results that are better than our expectations. Our construction program at Samsung Heavy Industries in Korea is on time and on budget, with the first ship having been launched and undergoing outfitting on schedule for delivery in January 2013. GasLog, with its technical platform and customer relations, continues to be well placed to take advantage of the projected growth in the LNG trade.”

Financial Summary

Revenues were $16.6 million for the quarter ended March 31, 2012 ($16.3 million for the quarter ended March 31, 2011: +1.9% year over year). The increase is mainly attributable to an increase in revenues in the vessel ownership segment, with GasLog’s existing fleet performing at 100% utilization.

Vessel operating and supervision costs were $3.5 million for the quarter ended March 31, 2012 ($3.0 million for the quarter ended March 31, 2011: +14.4% year over year). The increase is mainly attributable to organizational growth in GasLog’s vessel management segment.

General and administrative expenses were $5.2 million for the quarter ended March 31, 2012 ($3.0 million for the quarter ended March 31, 2011: +71.5% year over year). The increase is primarily attributable to increases in personnel expenses, directors’ fees, and travel expenses as well as one-off equity-settled compensation expense related to the former chief executive officer and staff bonuses. This increase is generally in line with GasLog’s planned growth and the reporting and compliance requirements of being a public company.

Financial costs were $3.0 million for the quarter ended March 31, 2012 ($2.3 million for the quarter ended March 31, 2011: +28.6% year over year). The increase is primarily a result of increased interest expense as a result of swapping floating rate interest to fixed rate interest in connection with the outstanding indebtedness related to the vessel GasLog Savannah.

EBITDA was $8.4 million for the quarter ended March 31, 2012 ($10.5 million for the quarter ended March 31, 2011: -20.1% year over year). This decrease is mainly attributable to higher general and administrative expenses.

Profit for the period was $2.2 million for the quarter ended March 31, 2012 ($5.0 million for the quarter ended March 31, 2011: -56.7% year over year). This takes into account a year-on-year increase in unallocated expenses of $2.0 million, from $1.4 million to $3.4 million which is mainly attributable to higher general and administrative expenses.

As GasLog stated in the final prospectus filed April 2, 2012 for its IPO, the ramp-up of general and administrative expenses is expected to exceed revenue growth in 2012, as GasLog’s newbuildings will only commence delivery in 2013. Accordingly, GasLog expects 2012 profit will be lower than in 2011.

LNG World News Staff, May 17, 2012

Liquiline, an independent service provider of transport and storage of LNG and LBG, said it has been during the last few years asked by gas consumers to help them source LNG.

Through Liquiline’s network of LNG suppliers the company has approached potential LNG suppliers with an enquiry from its customer to buy LNG.

“We have a.o. helped source LNG to shipping companies and industrial companies. Liquiline is now offering such services on a broader basis to new and existing customers,” the company said in a statement.

“Being independent means that we are not controlled by an LNG or LBG supplier, and as such we can help our customers source LNG and LBG from various locations. Liquiline has a large network of potential LNG suppliers that could be approached,” the company added.

LNG World News Staff, May 17, 2012; Image:

Sembcorp Marine’s subsidiary Sembawang Shipyard was recently awarded two LNG carriers life extension projects from North West Shelf Shipping Service Company, Australia (NWSSSC).

NWSSSC is the shipping service provider to the vessel owner, International Gas Transportation Company Limited (IGTC), a North West Shelf Venture company registered in Bermuda.

The 20-year-old LNG vessels Northwest Seaeagle and Northwest Sandpiper are scheduled to enter Sembawang Shipyard in June and September 2012 for major repairs and upgrading which, when completed, will further extend the vessels’ trading lives for another 10 years or more.

The awards further reinforce Sembawang Shipyard’s global leadership position in highly specialized LNG carriers’ life extension work after the successful execution of similar life extension work for NWSSSC’s Northwest Sanderling in 2009, Northwest Snipe in 2010 and Northwest Shearwater in 2011.

LNG World News Staff, May 17, 2012; Image: Shell

Petronet’s Dahej LNG terminal on India’s west coast is due to get a cargo of LNG onboard the 137,248 cbm Sohar LNG on May 20, according to shipping data.

The Dahej terminal in Gujarat is India’s first LNG import terminal and has a nominal capacity of 10 MMTPA.

The terminal is meeting around 20% of the total gas demand of the country.

LNG World News Staff, May 17, 2012; Image: Petronet

BC Premier Christy Clark continued her Jobs and Trade Mission yesterday by touring the Negishi Terminal, Asia’s first liquefied natural gas (LNG) facility, and promoting B.C.’s promising LNG sector to potential Japanese partners.

“This is a great opportunity to see, first hand, how an LNG terminal works, the types of jobs and skills required to work in the industry and of course, to see how much more real market demand there is for LNG in Japan right now,” said Premier Clark. “Japan imports the most LNG in the world and I am here to tell them that British Columbia has vast natural gas resources and our government is committed to developing and growing this sector.”

Entering the Asian market will help diversify B.C.’s natural gas sector, allowing it to be more competitive. Japan and Korea are the top two importers of LNG in the world, and B.C. has the natural resources and ideal location as North America’s shortest route to Asia to help supply that demand.

Premier Clark’s tour of the Negishi LNG Terminal, which opened in 1969, follows closely the announcement by Shell Canada Limited, Korea Gas Corporation, Mitsubishi Corporation and PetroChina Company Limited that they will jointly develop an LNG export facility near Kitimat, called LNG Canada. The project will consist of two LNG processing units, each with the capacity to produce six million tonnes of LNG annually, with an option to expand in the future.

“This project will have countless economic benefits for the region and the rest of the province, creating thousands of jobs during construction and hundreds of permanent, full-time jobs during operation,” said Premier Clark.

Our government’s LNG Strategy, a part of Canada Starts Here: The BC Jobs Plan, expects to see three LNG facilities operating by 2020, potentially creating 800 long-term jobs, as many as 9,000 new construction jobs, and thousands of spin-off economic jobs in areas such as transportation, engineering and environmental management.

In Tokyo, the B.C. government signed an MOU with Japan Oil Gas and Metals National Corporation (JOGMEC) to work together and share information on natural gas activities. JOGMEC’s key responsibility as a government-run organization is to seek a stable supply of natural resources for Japan, such as natural gas, oil and metallic minerals.

“Today’s agreement with JOGMEC is really about expanding our relationship with Japan’s main energy buyer while at the same time enhancing our opportunities in the overall natural gas field,” said Premier Clark.

LNG World News Staff, May 17, 2012; Image: gov.bc

Santos GLNG welcomed the release of the Queensland Water Commission’s (QWC) Underground Water Impact Report today which confirms the detailed studies already undertaken by Santos GLNG.

The QWC report confirms the impact of Santos GLNG’s operations will be minimal and manageable and that almost all of the landholder bores within our operating areas will not be adversely impacted.

Santos GLNG has implemented a state-of-the-art water monitoring system which detects any potential impacts early and has a comprehensive water management plan to mitigate any impacts.

Further, the QWC work does not include the water management programs Santos GLNG is already undertaking, including a project with URS and CSIRO to reinject treated water from coal seams to top-up Roma’s town water supply with around 50 years of supply.

Attending the official launch of the QWC Report today in Toowoomba, President Santos GLNG Mark Macfarlane said that even though there would be a minimal impact in Santos GLNG’s areas of operations, he understood the need for communities to have comprehensive information about what was happening in their water system.

“Santos GLNG is proud to lead the industry in its water management and monitoring activities,” Mr Macfarlane said.

“We started the rollout of our state-of-the-art water monitoring program in 2010 and already we monitor more than 100 surface and groundwater locations within our gas field operations.”

In an industry first, this water monitoring information is publicly available through the Santos GLNG Water Portal – www.santoswaterportal.com.au.

Mr Macfarlane said Santos GLNG was also conducting a pilot with a group of landholders providing them with the tools to tap into real-time data on water levels occurring within their water bores.

“Through our comprehensive water management program, Santos GLNG is well advanced in implementing many of the QWC Report monitoring requirements and plans are already in place to rollout the remaining,” Mr Macfarlane said.

Santos GLNG will commence discussions with the three potentially impacted landholders in the immediate and future affected areas to plan and conduct further investigations as to whether the water level drawdown might impact on the ability of their bores to produce water.

If it is assessed that any impact on water supply availability is likely to occur, we will discuss and agree options to address any impacts on their water supply.

These options may include activities such as deepening a bore pump or replacing a bore.

Mr Macfarlane said Santos GLNG would ensure that no landholders’ groundwater water supply was adversely impacted due to activities conducted by the Project.

LNG World News Staff, May 17, 2012

Exoma Energy announced interim drilling results for the Alma‐1 exploration well.

At 11.00 am the well was at 1042 metres depth and the operation on site was coring in the Rewan formation, immediately above the Betts Creek coal measures. The actual form ation depth encountered in the well is about 15 metres deeper than the pre‐drill estimate.

Chip samples of Toolebuc shale were recovered across an interval of approximately 19 metres, starting at 451 metres depth. The true thickness of the shale will be measured when the geophysical logs are run at the end of drilling operations.

Exoma has a 50% beneficial interest in both ATP 996P and the Alma‐1 well. CNOOC Galilee Gas Company Pty Ltd is earning its participating interest by a farmin whereby CNOOC provides the first $50 million of joint venture expenditures on Exoma’s five Galilee Basin ATP’s.

LNG World News Staff, May 17, 2012

The Methane Heather Sally LNG carrier, with a capacity of 145,613 cubic metres, is due to arrive in the UK’s Dragon terminal from Nigeria on May 24, according to the Milford Haven Port Authority website.

BG and Petronas between them have contracted for the full capacity at Dragon LNG’s Milford Haven site over the next 20 years.

BG Group owns 50 per cent of Dragon LNG Terminal, Petronas 30 per cent and 4 Gas 20 per cent.

LNG World News Staff, May 17, 2012; Image: BG

Snam and Fluxys have reached an agreement to acquire E.ON’s 15.09% stake in Interconnector (UK), owner and operator of the subsea pipeline between the UK (Bacton) and Belgium (Zeebrugge) providing a strategic bi-directional link between the UK and the continental gas trading places.

Last January, Snam and Fluxys entered into a strategic alliance aimed at promoting the integration of the European gas networks and subsequently agreed in February to jointly acquire Eni’s 16.41% stake in Interconnector (UK). As with the acquisition of Eni’s stake, both companies are to contribute 50% each in the acquisition of E.ON’s stake.

Carlo Malacarne, CEO of Snam, said: “Today’s announcement represents a further confirmation of Snam’s commitment to becoming a major integrated player in the European regulated gas business through the development of the North-South corridor and the creation of a Southern European gas hub. The agreement also fosters our partnership with Fluxys and gives a further contribution to enhancing flexibility and security of supply in Europe, in line with the recommendations and provisions of the EU’s third legislative package”.

Walter Peeraer, Managing Director of Fluxys, commented: “This new agreement strengthens our partnership with Snam to enhance security of supply by enabling South to North flows between Italy and the UK. Our venture will connect the gas trading places in the Northwest and the South of Europe and stimulate deeper liquidity across the European gas system. We are also looking forward to sharing our cross-European know-how with Interconnector (UK) to support the company’s development also after its exemption period until 2018.”

The total consideration for the 15.09% stake in Interconnector (UK) amounts to € 127 million. Snam and Fluxys expect to complete the transaction by the end of 2012. Prior to completion, the transaction requires approval from the relevant authorities as well as from the Board of Interconnector (UK).

LNG World News Staff, May 17, 2012; Image: Interconnector

Santos GLNG and Woodside Energy have won environment awards at the Australian Petroleum Production and Exploration Association (APPEA) national conference in Adelaide.

Announcing the awards at the Conference Dinner, APPEA Environmental Affairs Committee Chairman Eric Streitberg said this year’s awards clearly illustrated the Australian oil and gas industry’s high standards of environmental management.

Category A (Producer) winner: Santos GLNG

Santos has implemented an online water portal that shows results from more than 100 monitoring locations at which the Santos GLNG Project monitors surface and groundwater.

Users of the Santos GLNG Water Portal can access information on surface and subsurface water quality test results for aquifers and can view water bore levels. The information is updated quarterly.

The portal is also a one-stop public resource offering fact sheets, technical documents and answers to frequently asked questions about the Santos GLNG water management program.

The award recognises the water portal’s contribution to openness, accountability and environmental excellence.

Category B (Explorer) winner: Woodside Energy

Woodside’s partnerships with the Australian Institute of Marine Science (AIMS) and the Western Australian Museum (WAM) have improved scientists’, industry’s and the broader community’s understandings of biodiversity and ecological function in Western Australia’s tropical marine communities.

Since 1993, Woodside (on behalf of its Browse joint venture partners) has collaborated with AIMS on more than 40 scientific expeditions to the offshore atolls of the Kimberley. This work has resulted in more than 20 peer-reviewed papers.

Since 1998, Woodside and the WAM have partnered in ground-breaking research on the marine biodiversity of the Dampier Archipelago and the waters off the Kimberley region for the Browse and Pluto projects. This is aimed at minimising the environmental footprint of hydrocarbon exploration and production. It has led to five major peer-reviewed papers.

Woodside’s strong relationships with these partners continues to underpin the company’s current and future developments.

This award recognises the positive outcomes on the environment and Australia’s offshore exploration industry that can be gained through sharing knowledge.

Industry raising the bar

Mr Streitberg said Australia’s oil and gas industry recognises that its environmental credentials are critical to maintaining community and government support for industry access to energy resources.

“The industry has a strong environmental record, but companies such as Santos and Woodside continue to find new ways to enhance their performance,” Mr Streitberg said.

LNG World News Staff, May 17, 2012; Image: Woodside

The Gazprom headquarters hosted a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Delyan Dobrev, Bulgarian Economy, Energy and Tourism Minister.

The meeting addressed the current status of the Russian-Bulgarian cooperation in the energy sector. The focus was placed on the South Stream project implementation.

The meeting participants underlined that the project was being implemented within the preset deadlines. In addition, the parties noted the successful results of a tender procedure selecting the contractor for carrying out the spatial planning, environmental impact assessment and project documents preparation for the Bulgarian section of the South Stream gas pipeline.

LNG World News Staff, May 17, 2012

Total gas sales volume by Tokyo Gas for the month of April 2012 came to about 1,225.407 million m3, increased by 48.627 million m3 (+4.1%) from April 2011.

In the residential sector, volume totaled 372.039 million m3, up 1.6% from April 2011, while in the business sector (consisting of commercial, public, and medical use), with the increased operation rate on the part of existing facilities, etc., the volume increased by 8.8% to 216.963 million m3

. In the industrial sector, volume totaled about 450.288 million m3, up 3.8% from last year, due to the increased operation rate on the part of existing facilities, etc.

Volume for wholesale supply to other gas companies totaled about 186.117 million m3, up 5.0% from April 2011 due to increased demand of wholesale gas suppliers.

LNG World News Staff, May 17, 2012

In a significant milestone for the Arrow LNG Project, Arrow Energy has invited four parties to tender for the design and construction of Arrow’s upstream gas infrastructure in the Bowen and Surat basins in Queensland.

The parties have been invited to tender for the Front End Engineering Design (FEED ) for surface infrastructure including well head facilities, gas compressors as well as gathering and water treatment systems.

The contract also includes the potential to roll over into subsequent Engineering, Procurement and Construction Management services (EPcM), subject to commercial attractiveness and a positive final investment decision around the end of 2013.

Arrow Chief Executive Andrew Faulkner said the invitation to tender for the FEED and EPcM represented a key milestone for Arrow’s LNG project.

“Arrow remains in a strong position to realise the potential of our significant gas reserves and this tender is the next major step in progressing our LNG project,” Mr Faulkner said.

“The Upstream FEED and EPcM contract will be one of the single largest contracts in the Arrow LNG Project.”

Arrow’s LNG Project involves taking gas from future wells in both the Surat and Bowen Basins in south east and central Queensland, to Gladstone via two gas pipelines and across to Curtis Island for processing and export.

Mr Faulkner said Arrow remained on track with its LNG project, enjoying the continued strong backing of its shareholders Royal Dutch Shell and PetroChina.

The outcome of the FEED and EPcM tender is expected to be announced later this year.

LNG World News Staff, May 17, 2012

Waste Management today announced it has started construction on its new compressed natural gas (CNG) fueling facility to convert its fleet of trucks that service the Columbus, Ohio area.

This will be Waste Management’s first fleet of compressed natural gas trucks in Ohio. The CNG fueling station is being built at its Canal Winchester location.

“This new fueling facility will give us the direct capability to fuel a CNG fleet in the Columbus area, and with the CNG fleet, we’ll lower our fleet emissions, helping to reduce our dependence on foreign oil. This demonstrates our commitment to being a positive environmental contributor to the communities we serve,” said Frank Fello, Senior District Manager for Waste Management of Ohio.

“The transitioning of our 55 trucks to CNG fits within our sustainability goals and our company’s overall strategy to minimize our environmental footprint,” Fello added.

By late this summer, 25 new CNG trucks are expected to arrive. The transition of the rest of the fleet to CNG will occur over the next couple years.

The trucks will emit nearly zero air particulates and up to 25 percent fewer greenhouse gas emissions. The engines also run quieter than traditional diesel engines, reducing noise during collection operations on community streets.

The trucks, which use a “slow-fill” method, carry approximately 50 gallons of CNG.  This capacity allows them to run 10 to 12 hours and complete a typical day’s waste or recycling collection route.

Waste Management’s fleet of about 1,500 CNG and liquefied (LNG) vehicles is the largest in the North American waste industry. As part of the company’s annual fleet conversion, Waste Management expects 80 percent of its new collection vehicle purchases to be natural gas powered trucks.

It currently has natural gas fueling stations at 27 facilities throughout North America and more under development.

Waste Management is embracing clean fuel technology across North America and part of its sustainability goals include lowering emissions by 15 percent and increasing the fuel efficiency of its fleet by 15 percent by the year 2020.

LNG World News Staff, May 17, 2012

]]> http://www.lngworldnews.com/usa-waste-management-starts-construction-on-cng-fueling-facility/feed/ 0 http://www.lngworldnews.com/nigerian-lng-heads-for-portugal-3/ http://www.lngworldnews.com/nigerian-lng-heads-for-portugal-3/#comments Wed, 16 May 2012 13:26:07 +0000 LNG World News http://www.lngworldnews.com/?p=79567

Port of Sines in Portugal is scheduled to receive a shipment of LNG from Nigeria on May 19, according to the Port of Sines website.

The LNG Bayelsa tanker, with a capacity of 135,000 cbm cubic metres, is sailing from Nigerian Bonny terminal.

The terminal is held by REN Atlântico and has a nominal send out capacity of 600,000 cubic meters per hour (5.26 bcm per year), with a peak capacity of 900,000 cubic meters per hour.

LNG World News Staff, May 16, 2012; Image: REN

Polish Gas Transmission Operator GAZ-SYSTEM said it has obtained all the necessary corporate approvals to raise the share capital of its subsidiary Polskie LNG by the amount of 398 mln PLN.

The share capital of Polskie LNG will be raised by 398 thousand new, ordinary registered shares with a nominal value of 1,000 PLN per share.

After this transaction, the share capital of Polskie LNG will increase from 670 mln PLN to 1,068 mln PLN, the company said in a statement.

The Polskie LNG Company was appointed to construct the terminal for off-take of LNG in Świnoujście, and it is owned by the Gas Transmission Operator GAZ-SYSTEM.

The LNG Terminal in Świnoujście is the main investment being fulfilled in Poland with a view to improving the energy security of the country and, at the same time, is the first project of this type in Central and Eastern Europe.

Along with the transmission infrastructure currently under construction, the LNG terminal will not only enable Poland access to the world LNG market but also other countries in the region.

1 Polish zloty = 0.291062 U.S. dollars

LNG World News Staff, May 16, 2012; Image: Polskie LNG

A RasGas team led by RasGas Managing Director (MD), Hamad Rashid Al Mohannadi, held a productive meeting with the KOGAS President, Kangsoo Choo to explore business opportunities and further cooperation between the two companies.

The meeting held in Seoul, South Korea, recently,  is part of the MD’s ongoing annual visits to RasGas’ long-term customers.

This KOGAS visit follows a new long-term LNG Sales & Purchase Agreement (SPA) signed on 12 February, 2012.

During his stay in Seoul Al Mohannadi also paid a visit to the RasGas South Korea Liaison Permanent Office (KLO) where he met the KLO staff who provided him with an overview of the South Korea energy outlook. He personally thanked them for their great efforts and support of the RasGas teams in Doha. He also visited Hyundai Heavy Industries shipyard in Ulsan and met with Venture Offshore Project Management Team.

The visit is part of a wider Asian tour that included a visit to Japan and Tawian. In Japan, the MD attended a special ‘graduation’ ceremony celebrating the full engagement of 31 Qatari nationals in the overseas development of the onshore Barzan Gas Project and their Project Management Team led by Venture Group Manager, Nafez A Bseiso. In Taiwan, Al Mohannadi met with CPC Corporation Chairperson, Shao-Hua Chu, following up on the long-standing relationship between the two companies.

Throughout the South Korea part of the tour, Al Mohannadi was accompanied by Marketing & Shipping Executive, Khalid Sultan Al-Kuwari, Ali Khalaf Al-Kaabi, Mark Laudick and Dean Murphy from the Long Term Sales, Marketing & Shipping Department.

LNG World News Staff, May 16, 2012

NGVA Europe announced that two more of its members have applied for seats on the association’s Board of Directors: Westport and Swagelok.

Together with GNVert, Bohlen & Doyen, Linde and Gasrec they will have to be officially confirmed by the next annual General Meeting (to be held at NGV2012 Bologna/Italy, next June 19th) to join NGVA Europe’s governing body.

The strongly growing support by manufacturers of NGVs, engines & filling stations and the increased backing by major gas suppliers is a clear signal by the industry to policy makers, indicating natural gas and biomethane will play a major role in the future fuel mix.

LNG World News Staff, May 16, 2012

The European Commission has cleared the proposed acquisition of joint control over the Angolan company Angola LNG by BP of the UK, Chevron Global Energy of the US, Eni of Italy, Sonangol of Angola and Total of France.

The joint venture will be active in the production of LNG in Angola and the worldwide supply of LNG. The Commission found that the transaction would not raise competition concerns because of the joint venture’s moderate anticipated market share, the presence of a number of credible competitors in the market concerned and competitors’ unchanged ability to access re-gasification terminals.

The joint venture would transform natural gas, obtained as a by-product from oil production and transported along pipelines to its liquefaction plant in Angola, into LNG. The LNG would then be sold to customers around the world for re-gasification.

The parties’ activities overlap in the market for the wholesale supply of LNG in the EEA. Given the JV’s moderate anticipated market share and the presence of a number of credible competitors, the Commission found that the joint venture and its parent companies will continue to face sufficient competitive constraints on the market for the wholesale supply of LNG. Although three of the parent companies (Total, Eni and BP) hold capacity rights in re-gasification terminals in the European Economic Area (EEA), they will not be able to shut out third parties from accessing them because EU law ensures third party access to gas import infrastructures, including re-gasification terminals. Thus, the creation of the joint venture does not lead to any change as regards competitors’ ability to access gas import infrastructures.

The Commission therefore concluded that the transaction would not impede effective competition in the EEA or any substantial part of it.

LNG World News Staff, May 16, 2012; Image: Bechtel

Eni of Italy announced a new giant natural gas discovery in Area 4, offshore Mozambique,at the Coral 1 exploration prospect.

The results for this well, drilled in the southern part of Area 4, are of particular significance. The Coral discovery is estimated to contain between 7 and 10 tcf of gas in place, exclusively located in Area 4. With these new results at Coral 1, Eni estimates that the resources exclusively located in Area 4 range between 15 and 20  tcf of gas in place. The new discovery further increases the total potential of the Mamba complex discovered so far in Area 4 Offshore Rovuma, which is now estimated to hold between 47 and 52 tcf of gas in place.

Coral 1 is located 65 kilometers off the Capo Delgado coast in a water depth of 2,261 meters and reaches a total depth of 4,869 meters. The well was drilled approximately 26 kilometers south east of the Mamba South 1 discovery.

The discovery well encountered a total of 75 meters of gas pay in single high-quality Eocene sand. This discovery is particularly significant since it confirms a new exploration play, which is independent of those drilled so far in previous Mamba wells. Eni will run a production test on the Coral 1 discovery.

Eni plans to drill at least another five wells to fully establish the upside potential of Area 4.

Eni is the operator of Area 4 with a 70-percent participating interest. Co-owners in the area are Galp Energia (10 percent), KOGAS (10 percent) and ENH (10 percent, carried through the exploration phase).

LNG World News Staff, May 16, 2012

Taiwan’s Yung-An LNG terminal is due to receive a cargo of liquefied natural gas this week, according to Kaohsiung Port Authority.

The British Diamond tanker, with a capacity of 151,945 cbm, will reach Yung-An terminal on May 18.

The Yung-An terminal is Taiwan’s first liquefied natural gas receiving terminal, and it is operated by CPC.

LNG World News Staff, May 16, 2012; Image: CPC

BC Premier Christy Clark applauded the continued progress of the liquefied natural gas (LNG) export facility near Kitimat, LNG Canada.

Shell Canada Limited, Korea Gas Corporation (KOGAS), Mitsubishi Corporation and PetroChina Company Limited announced that they are jointly developing LNG Canada. Two LNG processing units near Kitimat are proposed, each with the capacity to produce six million tonnes of LNG annually.

“While B.C. is lucky to be blessed with abundant natural resources, it’s also our government’s smart investments in infrastructure and skills training that make us a desirable, safe harbour for investment, as we see here today with this announcement,” said Premier Clark. “This brings us one step closer to having three LNG facilities up and running by 2020, a key target set out in the BC Jobs Plan.”

Shell Canada Limited will hold a 40-per-cent interest in LNG Canada, with KOGAS, Mitsubishi Corporation and PetroChina Company Limited each holding 20-per-cent interests. LNG Canada would include the design, construction and operation of a gas liquification plant and facilities for the storage and export of LNG, including marine off-loading facilities and shipping.

“The proposed LNG Canada project will need thousands of jobs during construction and hundreds of full-time, permanent jobs during operations,” said Lorraine Mitchelmore, president of Shell Canada Limited. “The community would also experience the near- and long-term economic development opportunities that accompany an energy infrastructure project, as well as open up new export markets for Canada’s natural gas supply.”

As part of Canada Starts Here: The BC Jobs Plan, government has pledged to have at least one LNG pipeline and terminal online by 2015 and have three in operation by 2020. The government has made a commitment to help the sector grow, diversify, and establish access to new markets for B.C.’s natural gas.

The growth and diversification of the natural gas sector is a major focus of work to build on the foundation of the BC Jobs Plan to increase economic opportunities across the province.

LNG World News Staff, May 16, 2012

The ten regional electric power companies in Japan consumed 4,556,979 mt of LNG in April, a year-on-year rise of 33.4 percent, according to the Federation of Electric Power Companies of Japan (FEPC).

The power companies received 4,714,972 mt of LNG in April, a rise of 28.9 percent on year.

The companies consumed 5,039,257 mt of LNG in March, a year-on-year rise of 31.8 percent.

Power companies account for two-thirds of total Japanese LNG imports.

LNG World News Staff, May 16, 2012; Image: TEPCO

Following a world survey of the marine industry, Zeus Development Corporation has identified 63 LNG-fueled ships in operation or under development, up from 48 units last December.

These ships do not include more than 300 tankers that also consume LNG.

June 6-7, Zeus will host an LNG-Fueled Marine Advancements meeting to present the survey, review trends and tour a unique new LNG-turbine propulsion system by GE.

“Accelerating growth is what you would expect under these circumstances. What surprised us is the rate,” Tom Campbell, LNG-fuel analyst at Zeus, said. “High oil prices, impending emissions regulations and technical advancements are propelling the market faster than we expected.”

A key factor is International Maritime Organization Tier III emissions standards, which are slated to take effect in 2015-2016. The regulations require operators to reduce sulfur and nitrogen oxide emissions. For existing ships, after-exhaust treatment is proving more popular, but for newbuilds, operators are taking advantage of LNG’s unique properties.

“As LNG is better understood, architects are able to design ships specifically for LNG storage and propulsion,” Campbell said. “Firms such as Wärtsilä now offer integrated onboard fuel delivery systems and power units for shipbuilders.“

Zeus’ survey finds that LNG usage is growing beyond coastal ferries in Europe and offshore service vessels for the oil and gas industry, to large cruise ferries and container vessels while expanding geographically from Europe to North America and Asia. Currently projects underway in Belgium, Sweden, Finland, South Korea, Singapore, Japan and elsewhere have made efforts to offer LNG bunkering and incentives to support LNG-fueled marine technology.

Representatives from the following companies will attend the Houston meeting June 6-7: Argent Marine, Bestobell, Caterpillar, Chaney LNG Engineering, CH-IV, Cheniere Energy, DNV, Freeport LNG, General Dynamics, GE, Honeywell, Huntington Ingalls, Idemitsu Kosan, IPR-GDF SUEZ, J.E. McKechnie, John W. Stone Oil, Lake Michigan Carferry, Lockheed Martin, Longbow Technology, MAN Diesel, Martin Energy, Puget Sound Energy, Repsol, RRJ Management, Shell, Taylor Wharton, Tidewater and Wärtsilä.

LNG World News Staff, May 16, 2012; Image: Wärtsilä

The B.C. Ministry of Energy and Mines yesterday announced the Greenhouse Gas Reduction regulation that advances the adoption and deployment of natural gas vehicles (NGVs) in BC. 

Westport Innovations believes this important program will benefit British Columbia’s economy, environment and transportation options for industry. The regulation permits a utility to spend up to $62 million on vehicle and ferry incentives, up to $12 million on compressed natural gas (CNG) fuelling stations and up to $30.5 million on liquefied natural gas stations, for a total of $104.5 million.

“This is a positive step that will promote the use of domestic BC natural gas as a transportation fuel, and generate both environmental and economic benefits for our province and residents,” said David Demers, CEO of Westport Innovations. “British Columbia is home to world-class companies that both generate and use natural gas transportation technology, and this program will allow the accelerated adoption of natural gas heavy-duty vehicles.”

This regulation allows utility companies to deliver natural gas transportation programs until March 31, 2017, including the opportunity to:

• Offer incentives to transportation fleets that would use natural gas such as  buses, trucks or ferries
• Build, own and operate compressed natural gas fuelling stations or liquefied natural gas fuelling stations
• Upgrade facilities to provide training to safely maintain natural gas vehicles

The Greenhouse Gas Reduction regulation will promote the use of British Columbia’s abundant natural gas resources as a transportation fuel in heavy-duty transport vehicles, such as trucks, transit buses, school buses, refuse trucks and marine vessels.

The program’s objectives include displacing high carbon fuel, reducing greenhouse gas (GHG) emissions, and increasing  natural gas fueling infrastructure. Natural gas vehicles are a proven technology used across the globe.  Natural gas is 25 to 40 per cent cheaper than gasoline and diesel and produces up to 25 per cent fewer GHG emissions compared to a gasoline or diesel vehicle.

In addition, the Province is offering direct grants of up to $2,500 to purchasers of qualifying CNG vehicles. This is being offered through the $14.3 million Clean Energy Vehicle Program, announced in Nov. 2011.

BC has an abundant supply of low cost and low carbon natural gas. This program will allow local governments and businesses to take advantage of the benefits of natural gas, including lower fueling costs and reduced greenhouse gas emissions.

LNG World News Staff, May 16, 2012; Image: Wetsport

QGC Pty Limited, developer of the Queensland Curtis LNG Project, said it has awarded a A$70 million pipe supply contract to Tyco Water, a wholly-owned subsidiary of Tyco International.

Tyco is supplying carbon steel, concrete-lined trunklines and pipe fittings to support water gathering in QGC’s gas fields in the Surat Basin of southern Queensland.

QCLNG Senior Vice President Alexander (Sandy) Nairn said Tyco had sourced all materials from Australian suppliers, delivering a significant boost to local manufacturing.

“Tyco has ordered 20,000 tonnes of steel and 10,000 tonnes of cement mortar,” Mr Nairn said.

“The steel is being supplied by Australian firm BlueScope Steel and the sand and cement is being sourced from suppliers local to Tyco’s production facilities at Wacol in Queensland and Somerton in Victoria,” Mr Nairn said.

Tyco is expected to employ an extra 100 people and has increased production from one to two shifts at its Wacol factory to accommodate the contract.

The finished pipes and fittings are being carried to QGC’s gas fields by local transport companies.

The trunklines are used to move water from regional ponds to QGC’s central water treatment plants.

LNG World News Staff, May 16, 2012

MISC Berhad of Malaysia today said that for the first quarter ended 31 March, the group recorded revenue of RM2,403.9 million, a 17.8% decrease as compared to RM2,924.4 million in the same calendar period of last year.

The revenue decrease was largely due to reduction in Liner business revenue from lower volume carried and lower freight rates.

The business segment suffered a 93.0% reduction in liftings following the Group’s decision to completely exit from the Liner business operations by middle 2012. Lower revenue in Heavy Engineering business segment further contributed to the decrease in Group revenue.

Lower earning days from reduced demand combined with softer rates have translated to 3.5% revenue decrease in Petroleum business.

On the back of lower revenue, the group’s operating profit of RM12.2 million for the quarter was 93.2% lower than the comparative quarter’s operating profit of RM180.2 million. The decrease in the group’s operating profit was largely due to higher losses in Liner business and lower profit in Heavy Engineering business.

Despite 8.4% revenue growth in Chemical business, increased operating costs particularly bunker, has resulted in higher losses for the segment.

The group suffered loss before tax of RM373.9 million for the quarter, a 67.9% increase as compared to RM222.7 million loss before tax in the comparative quarter, mainly due to lower operating profit generated in the current quarter. The group recognised additional impairment provision on its ships of RM116.4 million in the current quarter following decrease in asset values from deterioration of shipping markets. In comparison, the group recognised impairment provisions of RM456.6 million in the comparative quarter.

The group also recognised RM220.5 million additional Liner exit provisions in the current quarter.

PROSPECTS

Compounded by continuing uncertainties in global economic growth, the prospects for shipping industry continue to remain challenging. Low freight rates, rising bunker costs and vessels supply overhang contribute to the challenges faced and do not bode well for the rest of the year. Cost management will be an important priority in the few quarters ahead.

Meanwhile, LNG market remains favorable with buoyant demand for gas energy in Japan, whilst the prospects for offshore and Heavy Engineering businesses remain favorable in the short and medium term and continue to provide stability to the group.

Chubu Electric of Japan said that it has reached agreement with INPEX to acquire a 0.735% interest in the Ichthys LNG Project from INPEX group of companies.

The acquisition by Chubu Electric is subject to certain conditions, including Australian government regulatory approvals.

The Ichthys LNG Project Participants will jointly develop the Ichthys field, located in the Browse Basin offshore of Western Australia, for the production of LNG, LPG and condensate.

INPEX is the operator of the Ichthys LNG Project, making it the first Australian LNG project to be operated by a Japanese company.

Under the terms of the sale agreement, Chubu Electric will enter into a joint venture to develop the Ichthys LNG Project through its wholly-owned Australian subsidiaries, Chubu Electric Power Ichthys Pty Ltd and Chubu Electric Power Exploration Pty Ltd.

Chubu Electric will also purchase 490,000 tons of LNG per year over 15 years from the Ichthys LNG Project.

LNG World News Staff, May 16, 2012; Image: INPEX

BG Group today announced its fifth consecutive Tanzania gas discovery with the Mzia-1 exploration well located in Block 1, offshore southern Tanzania.

Mzia-1 is BG Group’s first discovery within the deeper Cretaceous section and opens an extensive new play fairway within the Group’s offshore acreage in Blocks 1, 3 and 4, to complement the now proven Tertiary fairway.

Preliminary evaluation of the results indicates 55 metres of natural gas pay in good quality sands.  An extensive logging programme has been completed, including the acquisition of pressure data and gas samples.

Significantly, the well has de-risked a number of adjacent Cretaceous prospects, which could form part of a future Mzia hub. These prospects are expected to be tested in a future appraisal programme to be defined following incorporation of data from this new well and 3D seismic.

The new resources proven by Mzia and the potential of adjacent prospects are currently under evaluation. Prior to drilling Mzia-1, BG Group had estimated mean total gross recoverable resources approaching 7 trillion cubic feet of gas from the four previous discoveries drilled in Tanzania.

Mzia-1 is approximately 45 kilometres offshore southern Tanzania in a water depth of 1 639 metres. It is some 23 kilometres from the Jodari-1 discovery and is part of the 2012 three-to-four well exploration programme.

Following the imminent completion of operations at Mzia, the Deepsea Metro-1 will relocate to Block 3 for the drilling of the next exploration prospect, Papa-1.

BG Group as operator has a 60% interest in Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy plc holding 40%.

LNG World News Staff, May 16, 2012