Page 10 - AsianOil Week 47 2022

AsianOil NEWS IN BRIEF AsianOil

CGG to keep running seismic agreement for strategic partnership with loading facility on Sept. 18, according to
Refinitiv data, and has a discharge date of
Japan's shipping company Nippon Yusen
centre for Shell in Brunei Kaisha (NYK) with potential collaboration Nov. 28.
for LNG logistics business on domestic or
Ajayi added that the shipment was
Brunei Shell Petroleum Company Sdn international routes, the company said last unusual as Indonesian LNG cargoes are
Bhd (BSP) has awarded CGG a multi-year month. Wisnu declined to share details of typically exported to north Asia, and that
contract extension to continue running a the partnership that were currently being India receives LNG cargoes from Qatar,
dedicated seismic imaging center at its head finalised. Indonesia: Pertamina's Shipping Oman and the UAE.
office in Seria, Brunei. Unit Plans Up to $3B Investment for Vessels Japan, China and Korea are key
In the past six years, CGG has delivered LNG consumers in north Asia, but high
land, marine, transition zone, OBC, and inventories and muted spot demand in the
high-density OBN seismic imaging results Japan's MOL, JERA to study region have weighed on Asia spot LNG
at the BSP center. prices in recent weeks.
CGG said its team would continue to ammonian fuel transport Operated by BP (BP.L), the Tangguh
apply latest tech such as Time-lag FWI, LNG plant is in Indonesia's West Papua
Q-FWI, least-squares migration, and Japan's Mitsui O.S.K. Lines Ltd. (MOL) said province and began production in 2009.
shallow imaging, to address the specific on Monday it had signed a memorandum Its output capacity is 7.6 million tonnes of
regional challenges posed by the presence of understanding (MoU) with JERA, the LNG per annum (mtpa) from two existing
of widely distributed shallow gas clouds, country's biggest power generator, to study trains.
channels, gas-charged silts, and complex transporting ammonia for using it as a fuel. BP did not immediately respond to a
fault structures around the discovered fields. The study will include looking at request for comment.
The original six-year contract was ammonia shipments to JERA's Hekinan A third train is expected to come
awarded in 2017 and was to run until power station in the Aichi prefecture, which on stream in March 2023, officials at
December 31, 2022. is scheduled to start commercial operations Indonesian upstream regulator SKK Migas
Under the terms of the original contract, towards the end of the decade, MOL said in said in July, which will bring the plant's total
CGG was to deliver the full scope of the statement. production capacity to 11.4 mtpa.
processing services for 2D, 3D, and 4D "With ammonia emerging as a next- Train-3 however has faced several delays
seismic data acquired onshore and offshore generation clean energy source that does from an initial planned start in the third
Brunei, ranging from field data processing not emit carbon dioxide during combustion, quarter of 2020 due to natural disasters
to advanced pre-stack depth imaging. large-scale demand for ammonia is delaying shipments of required construction
expected in the future, particularly for co- material and COVID-19 restrictions.
firing and as a hydrogen carrier in coal-fired
Pertamina's shipping unit power plants," according to the statement. Asia spot prices hit 7-week high,
Through the MoU, MOL and JERA
prepares $3bn investment to would study developing fuel-ammonia tracking price moves in Europe
carriers suitable for domestic thermal power
overhaul fleet plants and receiving stations, the building of Asian spot liquefied natural gas (LNG)
fuel ammonia transportation and receiving
Pertamina International Shipping, a unit of systems, and installing and operating prices rose this week for the first time since
Indonesia's state energy firm, aims to invest propulsion engines that use ammonia as September and hit a 7 week high, tracking
up to $3 billion over the next five years to ship fuel. The companies will also work European gas prices on cooler weather
rejuvenate and expand its fleet, including with relevant parties to foster regulations forecasts and after Gazprom threatened to
investing in vessels to transport liquefied regarding ammonia fuel, MOL's statement further reduce gas flows to Europe, Reuters
natural gas, an executive said. added. reported.
Pertamina International Shipping (PIS) The average LNG price for January
operates more than 400 vessels, including delivery into northeast Asia LNG-AS
three very large crude carriers (VLCC) and India to receive first LNG cargo was $31 per million British thermal units
two very large gas carriers (VLGC). "We (mmBtu), up $5.5, or 25.5%, from the
will invest big in replacing vessels," Wisnu from Indonesia's Tangguh LNG previous week, industry sources estimated.
Santoso, a director at PIS told reporters on “This week Asian rates traded up with
Tuesday. India will receive its first cargo from a significant jump midweek on the back
"We want to reduce the average age of Indonesia's Tangguh liquefied natural on the news of the price cap and upward
our fleet within the next five years to 15 gas (LNG) plant at the Dahej terminal on pressure on European pricing,” said
years from currently at around 20 years." Monday, according to a Refinitiv analyst Toby Copson, global head of trading and
The company is also planning to acquire and Refinitiv ship tracking data, Reuters advisory at Trident LNG.
vessels for LNG transportation, which it reported. “I expect some downside to come
currently does not have in its portfolio, The LNG cargo is being transported by initially for front month if more Chinese
as demand for the fossil fuel, which is the BW Helios tanker, said Olumide Ajayi, cities go in to lock-down and temperatures
considered less polluting than others, is senior LNG analyst at Refinitiv. remain mild. If we do see a cold snap we
expected to increase. "The vessel which had been acting as could see a resurgence to cover short-term
He acknowledged that shipping yards a floating storage since it lifted the cargo draw downs,” he added.
are at full capacity now and building new in mid-September is currently on a term In Europe, S&P Global Commodity
vessels could be expensive due to high charter to British oil major BP and is due Insights (SPGCI) assessed its daily
demand, but the company is open to to arrive at state-owned Petronet's Dahej Northwest Europe LNG Marker (NWM)
purchasing existing vessels as long as they terminal on November 28," he said. price benchmark, for cargoes delivered
still have good economic value. The BW Helios picked up the cargo of in November on ex-ship (DES) basis, at
PIS in October signed an initial 132,000 cubic metres at the Tangguh LNG $29.056/mmBtu on Nov. 24, a discount of

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