Page 8 - GLNG Week 03 2022
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GLNG                                            AMERICAS                                               GLNG


       Panama Canal reports LNG transits down




       30% year on year in December 2021




        PERFORMANCE      LNG transits via the Panama Canal decreased by  has been a stark rise in North American exports,
                         30% year on year in December 2021, according  with US suppliers rerouting LNG shipments
                         to data sent to S&P Global Platts last week by the  across the North Atlantic to Europe.
                         Panama Canal Authority (PCA). This decline   Certainly, there have been numerous tankers
                         appears to have been largely the consequence of  that passed through the Panama Canal while
                         the surge in European LNG demand, which saw  travelling southward towards Asia before rerout-
                         the Atlantic Ocean become the primary route of  ing to Europe. Additionally, there have been ves-
                         transportation for fuel from the US. (See: China  sels that made a U-turn before arriving at the
                         reportedly seeks to resell LNG amid gas crunch,  canal, S&P Global Platts noted.
                         page 4)                                The recent decline in LNG transits via the
                           According to PCA data, some 35 LNG tran-  Panama Canal represents a reversal of the steady
                         sit tankers passed through the Panama Canal in  upward trend that has been noted over the last
                         December 2021. This is a 30% decline from the  few years. The PCA marked the difference, com-
                         50 tankers that passed through the canal during  menting: “This time last year, the world’s global
                         the same month of 2020.              economic recovery, combined with a record cold
                           The decline in the figures for the fourth quar-  winter in Asia, led to historic demand for LNG
                         ter of 2021 was less drastic. PCA data show that  and a sudden surge in vessels arriving at the Pan-
                         there were 114 LNG transits during the last three  ama Canal in hopes of transiting on the way to
                         months of last year, down by 17% on the figure of  Asia.”
                         138 reported for the same period of 2020.  The canal operator body went on to note that
                           European demand for LNG has reached  the current situation in Europe had caused LNG
                         unusually high levels in recent months, due as  exports to start mainly flowing in that direction,
                         the Continent deals with ongoing energy short-  causing transportation routes to shift from the
                         ages during the heating season. As a result, there  Panama Canal to the Atlantic.™




       Delfin targeting FID on FLNG project in 2022




        INVESTMENT       PRIVATELY owned Delfin Midstream is tar-  discussions for more than we need for the first
                         geting a final investment decision (FID) on its  vessel. We just need to get a couple of those guys
                         planned floating LNG (FLNG) project in the  across the line.”
                         US Gulf of Mexico, offshore Louisiana, later this   Delfin FLNG entails up to four liquefaction
                         year.                                vessels that would each be able to produce up to
                           The news, which was reported by Reuters,  3.5mn tonnes per year (tpy) of LNG, or a com-
                         comes as no surprise given that the company  bined total of up to 13mn tpy. Gas would be sup-
                         already said in mid-2021 that it had pushed back  plied to the vessels via existing offshore pipelines
                         the FID to later in 2021 or 2022. The project has  – Delfin purchased UTOS, the largest offshore
                         run into several delays, which started before the  gas pipeline system in the Gulf, for the project
                         onset of the coronavirus (COVID-19) pandemic  in 2014. According to Poston, each vessel would
                         as the company worked through the regulatory  cost about $2bn and the first would be expected
                         review process and looked for LNG buyers to  to enter service around 2026, four years after the
                         sign offtake agreements. The pandemic initially  FID.
                         made potential buyers even more scarce. Now,   The Delfin project also includes a brownfield
                         though, the outlook appears brighter despite the  deepwater port that would require minimal
                         delays.                              additional infrastructure investment, according
                           “This is the best macro environment that the  to the company’s website.
                         LNG business has ever seen,” Delfin’s CEO, Dud-  Delfin also owns a second gas pipeline system
                         ley Poston, told Reuters this week, adding that he  in the Gulf, Grand Chenier, which can either be
                         was “very confident” the company would reach  used for a second deepwater port for the com-
                         FID this year.                       pany’s planned Avocet FLNG project or for an
                           “We’re now seeing the most sustainable  expansion of Delfin LNG. Poston told Reuters
                         interest from LNG buyers ... that we’ve seen in  this week that after the first FID, Delfin would
                         years and Delfin only needs two to three buy-  start working on Avocet, which would add two
                         ers,” Poston said. “We’re already in contractual  more 3.5mn tpy liquefaction vessels.™



       P8                                       www. NEWSBASE .com                        Week 03   21•January•2022
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