Page 12 - GLNG Week 06

GLNG
NEWS IN BRIEF
GLNG
The first LNG powered shuttle tankers for KNOT will be built by Daewoo Shipbuilding & Marine Engineering Co. Ltd., and after delivery in 2022 the ships will be dedicated to shuttle crude oil produced in waters off the North Sea and the Barents Sea. The vessels will be able to reduce emissions of CO2 equivalents significantly compared to conventional oil-fueled shuttle tankers.
Through Vår Energi,ENI has many interests in North Sea gas and oil fields and is thus one of the major players in the area. This contract is the third and fourth long-term time-charter shuttle-tanker contracts between ENI and KNOT.
The NYK Group is dedicated to achieving the SDGs through the group’s business activities and its medium-term management plan “Staying Ahead 2022 with Digitalization and Green,” and this low carbonisation of marine fuel is one of the group’s initiatives. NYK GROUP, February 10, 2020
European gas prices fall to
15-year low of under $100
per 1,000 cubic metres
Gas prices in Europe have fallen to $101.70 per 1,000 cubic metres, Vedomosti reports. Gas prices in Zeebrugge reached $95.70 per 1,000 cubic metres on February 7, which is a 15-year low.
“We note that spot gas prices in Europe have been below $100 per 1,000 cubic metres in February, which is unusually low for the winter. The last time such price levels were observed was in September 2019. Given the spot price level in Europe, domestic deliveries are currently more valuable for Russian
gas producers than exports to Europe, we estimate,” VTB Capital (VTBC) said in a note.
“While both Gazprom and Novatek’s Yamal LNG export a sizable portion of gas on long- term oil-linked contracts (for Gazprom, the share of oil-linked and hybrid contracts stands at around 40%, we believe), the low level of spot European gas prices might present risks to our financial forecasts for Russian gas companies,” VTBC concluded.
Gas prices have been depressed by a combination of an unseasonably warm
winter and the fact that both Gazprom and Ukraine’s national gas company, Naftogaz, built up significant reserves of stored gas in anticipation of a fresh gas war had the two companies failed to negotiate a new gas transit deal. A deal was reached in the last days of last year and both companies are now starting to unload their reserves of stored gas.
MIDDLE EAST
Qatargas signs long-term SPA to supply LNG to Kuwait
Qatargas announced the signing of a new, long term liquefied natural gas (LNG) sale and purchase agreement (SPA) with Shell to deliver 1 million tons per annum of LNG to the State of Kuwait, commencing this year.
Commenting on the signing of the SPA, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs
said: “We are pleased to announce this new long term agreement between Qatargas
and Shell for the supply of LNG to the State of Kuwait, following the recent agreement signed between Qatar Petroleum and Kuwait Petroleum Corporation. These agreements demonstrate our commitment to the State
of Kuwait, which is a very important LNG market and is part of our strive to be the LNG supplier of choice for our customers. I would like to take this opportunity to thank our valued partner, Shell, with whom we share a long history of fruitful collaboration and we look forward to continuing to work together to put LNG at the forefront of the world’s drive towards cleaner and more sustainable energy sources.”
His Excellency Minister Al-Kaabi added: “This new SPA also further underlines Qatargas’ position as the market leader
in LNG and demonstrates the Company’s distinguished track-record of providing reliable LNG to the global market place and its continued ability to capture opportunities in a highly competitive environment.”
Commenting on the new SPA, Khalid bin Khalifa Al Thani, chief executive officer, Qatargas, said: “Qatargas is delighted to conclude this new SPA with Shell. We believe this agreement provides a win-win solution for both companies and deepens the relationship with a valued partner and shareholder. Qatargas is committed to
meeting the clean energy needs of customers who depend upon reliable, flexible LNG deliveries.”
The SPA provides for the supply of LNG from Qatar Liquefied Gas Company Limited (4) (Qatargas 4), a joint venture between Qatar Petroleum (70%) and Shell (30%). QATARGAS, February 10, 2020
Global Yatirim Holding’s
Naturelgaz to buy Socar’s
Turkish LNG unit
Naturelgaz has signed an agreement to purchase 100% of SOCAR Turkey LNG, Global Yatirim Holding announced on February 6. After the share transfer, Naturelgaz and Azerbaijani state-controlled company SOCAR Turkey LNG will be merged under Naturelgaz, Global Yatirim Holding, parent company to the enterprise set to be acquired, said in a filing with Borsa Istanbul.
Naturelgaz, a 95.5%-owned subsidiary
of Global Holdings, is one of the leading CNG (compressed natural gas) suppliers and distributors in Turkey and Europe.
The acquisition will further strengthen the position of Naturelgaz in the LNG, bulk CNG, and auto-CNG businesses, increasing volume and geographical coverage while diversifying the product portfolio, Global said.
Currently, the infrastructure of Naturelgaz consists of 10 bulk CNG plants, three auto- CNG stations, 296 CNG road tankers and 47 industrial-scale compressors.
“Post-acquisition the infrastructure will enlarge to 12 bulk CNG plants, 11 auto-CNG stations, 345 CNG road tankers and 67 CNG compressors, with expansion coming from new regions,” Global added.
In 2019, Naturelgaz distributed 167mn Sm3 of CNG, while SOCAR Turkey LNG distributed 35.4mn Sm3 of CNG and LNG, according to Global.
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Week 06 13•February•2020