Page 12 - GLNG Week 04

GLNG EUROPE GLNG
French LNG imports hit 10-year high in 2019
PERFORMANCE
FRENCH LNG imports soared to a 10-year high in 2019, local transmission system opera- tor (TSO) GRTgaz reported last week, causing a steep fall in gas prices.
The country took 219 TWh of LNG during the year, equivalent to around 20.9bn cubic metres of regasified supply, GRTgaz said. This marks an 87% increase year on year, it said.
“The return of LNG [to Europe], which had mainly gone to Asia in the aftermath of the Fuk- ushima nuclear accident, has helped diversify gas sources in Western Europe and made gas prices competitive on the wholesale market in France,” the operator said.
France does not produce any oil and gas of its own, relying on a mix of LNG, mostly sourced from Algeria, and piped gas from Norway and Russia to cover its needs. The surge in LNG imports came despite France seeing only a mod- est increase in gas demand of 2% to 451 TWh
(43 bcm), caused by higher consumption in the power sector.
Spot gas prices in France dropped over 40% y/y in 2019 as a result of the supply glut, to €13.60 ($15.00) per MWh, GRTgaz said.
The country’s re-export of gas meanwhile came to 115 TWh (11 bcm) last year – a record volume and up 72% compared with the amount transited in 2018. Its exports to Spain and Swit- zerland rose by nearly 75%, according to GRT- gaz. Spanish gas demand climbed 14% last year, following a spike in consumption by industrial users and power plants.
LNG importers across Europe increased pur- chases last year, taking advantage of record low prices, driven down by rising global supply and lacklustre demand in Asia. The continent took around 95 bcm of regasified LNG during the year, up 88%, while its imports via pipeline came to 425 bcm, down 5%.™
Greece gets EU backing for LNG bunker ship
PIPELINES & TRANSPORT
GREECE has secured EU support for the con- struction of the East Mediterranean’s first LNG bunkering vessel.
The country’s state gas utility DEPA reported signing a €20mn ($22mn) loan agreement on January 28 with the European Investment Bank (EIB). The loan will cover 50% of the vessel’s cost, it said. Earlier the company also obtained a €8.9mn grant from the EU’s BlueHUBs initia- tive, aimed at developing LNG and CNG supply chains in the Eastern Mediterranean.
In a statement, DEPA President Ioannis Pap- adopoulos said the EIB loan was another “vote of confidence in the Greek economy,” confirm- ing that its investment climate had improved significantly.
“Furthermore, this is a green investment, which paves the way for cleaner and more com- petitive maritime transport in the eastern Med- iterranean,” he said, noting it would help Greece meet its climate goals.
The planned bunkering vessel will store up to 3,000 cubic metres of LNG and will be based in the Greek port of Piraeus. But it will also refuel ships in other ports in Greece and the wider area.
Refuelling ships with LNG is seen as one way shipowners can comply with stricter IMO emis- sions limits that came into force this year. Not only
does the fuel release 99% less sulphur oxides, eas- ily clearing IMO standards, but it will emits 80% less nitrogen oxides, 25% less carbon dioxide and 99% fewer fine particles.
While LNG has become a mainstream ship- ping fuel in northern Europe, and is gaining in popularity in the West Mediterranean, ships in the East Mediterranean continue to rely on con- ventional fuels. It is hoped that the launch of the DEPA vessel will encourage similar investments in the region.
The EIB has been investing in European gas projects for decades. But the EU bank recently announced it would drop all support for fossil fuels at the end of 2021, cutting €2bn in annual investments, following pressure from member states.™
P12
w w w. N E W S B A S E . c o m Week 04 30•January•2020