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