Widened Panama Canal to Open June 26; U.S. LNG Supplies Expected to Remain in Atlantic Basin
Posted on Jun 10, 2016
Hellenic Shipping News reports that the Panama Canal widening project is expected to be inaugurated June 26, allowing it to accommodate large LNG tankers and permitting U.S. Gulf Coast LNG producers to reduce the shipping time to markets in Asia by approximately ten days. However, according to an analyst, “prices in the Pacific aren’t currently high enough to create a large arbitrage opportunity to send gas from the U.S. Gulf Coast to Asian markets[,]” so “[m]ost of the LNG produced in the U.S. will remain in the Atlantic Basin for the foreseeable future because of the price collapse and...
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IEA Report: New LNG Supplies Will Need to Find New Markets
Posted on Jun 9, 2016
The International Energy Agency (IEA) has released a report which predicts a major shift in the global natural gas market over the next five years due to a 45% increase in liquefaction capacity coming online, primarily from the United States and Australia, just as demand growth from the world’s top two LNG buyers, Japan and Korea, weakens. The report projects that China, India and southeast Asian countries will emerge as key LNG buyers. According to the press release, “[f]undamental developments point to oversupply [of LNG] in the market … which should keep spot gas prices across the globe...
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Toho Gas Signs Agreement for Cameron LNG Supplies
Posted on Jun 7, 2016
Japanese utility company Toho Gas Co., Ltd. announced that it has entered into a sale and purchase agreement with Diamond Gas International Pte. Ltd., a 100% subsidiary of Mitsubishi Corporation, for the purchase of 200,000 tons/year of LNG produced at Sempra Energy’s Cameron LNG terminal under construction in Cameron Parish, La. According to the press release, the agreement calls for 3 cargoes of LNG per year over a 19-year term at LNG prices linked to the U.S. natural gas price. ...
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FERC Initiates Pre-Filing Review Process for Driftwood LNG
Posted on Jun 6, 2016
FERC has issued a letter approving Driftwood LNG’s request to initiate the pre-filing environmental review process for its proposed 26 million tonnes/year liquefaction facility and LNG export terminal on the west side of the Calcasieu River, Calcasieu Parish, La. and interconnected pipeline. The letter indicates that Driftwood LNG intends to file a formal application for the project no later than March 2017....
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FERC Authorizes Elba Island LNG Export Terminal Construction and Operation
Posted on Jun 2, 2016
FERC has issued an order authorizing Kinder Morgan subsidiaries Elba Liquefaction Company, L.L.C. and Southern LNG Company, L.L.C. to construct and operate liquefaction and LNG export terminal facilities (Elba Liquefaction Project) at the existing LNG import terminal at Elba Island, near Savannah, Ga. The order also authorizes Elba Express Company, L.L.C. to add north-to-south transportation capacity on its existing pipeline to deliver domestically-produced natural gas on a firm basis to the Elba Liquefaction Project. The order requires the proposed facilities to be constructed and made...
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Magnolia LNG Files Construction Status Report
Posted on Jun 1, 2016
Magnolia LNG has filed a report with FERC covering construction activities through May 2016 at its proposed liquefaction and LNG export terminal near Lake Charles, La. The report states that Magnolia is currently revising its Section 404/10 permit application to the U.S. Army Corps of Engineers which, once approved, is the last required federal authorization required for the project. The report also states that on May 19, 2016, Magnolia LNG submitted a request to FERC for authorization to commence initial site preparation for the project no later than August 1, 2016. ...
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Sabine Pass Train 1 Placed In Service
Posted on Jun 1, 2016
Sabine Pass LNG (Sabine Pass) has filed a letter with FERC stating that on May 27, 2016, Sabine Pass “accepted Care, Custody, and Control of Train 1 and Stage 1 OSBL from its EPC contractor, Bechtel, and placed the facilities in service.” The letter further states that the Train 1 and Stage 1 OSBL liquefaction facilities have been constructed in compliance with all the applicable conditions of FERC’s orders authorizing construction and operation of the facilities and that continuing activities will be consistent with all applicable conditions....
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