Page 11 - GLNG Week 49

GLNG
NEWS IN BRIEF
GLNG
AMERICAS
Petrobras on the lease
of the LNG regasification
terminal
Petrobras, in accordance with the commitments made through the agreement signed with the Administrative Council for Economic Defense (CADE), on July 8, 2019, informs that it is starting the process of leasing the LNG regasification terminal of Bahia, at Salvador/BA, and its integrated pipeline.
Thus, the company begins today the prequalification procedure of the candidates, aiming to qualify companies that express interest in participating in the bidding process, respecting the conditions presented in the call for prequalification, available on the Petrobras website.
The process will follow the acts and rites provided for in Federal Law 13,303/2016 (State-Owned Companies Law).
The leasing is in line with the company’s strategy of improving its capital allocation and building a favourable environment for new investors to enter the natural gas sector. PETROBRAS, December 09, 2019
Lake Charles LNG receives extension
The US Federal Energy Regulatory Commission (FERC) has granted the
developers of the proposed Lake Charles LNG export terminal in Calcasieu Parish, Louisiana, a five-year extension to construct the facility.
Energy Transfer and Royal Dutch Shell now have more time to convert the former import terminal into an export facility.
The new export terminal would consist of three liquefaction trains with a combined capacity of 16.45mn tonnes per year (tpy).
Shell acquired its stake in Lake Charles LNG through its takeover of BG Group.
In August, the companies asked the FERC for a five-year extension to complete the project, citing the “complex international merger” that required the renegotiation of agreements.
Tanker docks at Elba Island
LNG in preparation for first
shipment
A tanker was reported to have docked at Kinder Morgan’s Elba Island LNG terminal in the US state of Georgia this week ahead of the project’s first export shipment.
According to the tanker tracking website Marine Traffic, a Greek-flagged LNG tanker, Maran Gas Lindos, arrived at the terminal on December 8, after a two-week voyage from the Netherlands.
Kinder Morgan confirmed that a tanker had arrived at the facility but declined to comment further, the Houston Chronicle
reported. On December 11, observers were waiting to see whether the tanker would depart with the first export cargo from
Elba Island LNG. However, the facility is considerably smaller than other US LNG export terminals and it is estimated that it could take up to 100 days for each of its 10 small-scale trains to fill a standard LNG cargo.
Another vessel may yet arrive at the facility, which has a second jetty that has been converted from import service to handle exports.
The start-up process at the facility began in February, but was held back by several delays. Kinder Morgan reported that the terminal started commercial service in October, but it has yet to send out its first export cargo.
ASIA
Glencore almost doubles LNG trade in 2019
Spot LNG volumes traded by Glencore in 2019 have risen by over 75% compared
with last year, the company’s head of gas trading, Nathan Arentz, told the CWC
LNG conference in Rome. In particular,
the company has grown its Asian footprint, expanding in a region where LNG demand is high.
Glencore has lagged behind other commodity traders such as Gunvor, Vitol and Trafigura when it comes to participation in LNG trading. However, Arentz’s comments show that the company is also keen to grow its LNG presence.
Glencore is now closing in on the 11mn tonnes traded by leading LNG trading house Gunvor in 2018, Arentz told Reuters on the sidelines of the conference. This comes after the company experienced a dip in volumes traded in 2018.
“We just turned the needle towards Asia and are growing our volumes there very strongly,” Arentz said, adding that China and India accounted for a large proportion of the increase in volumes traded.
“I think we probably position ourselves in 2019 as the largest spot trader in China,” he added.
According to Arentz, the company is expected to deal around 11mn tonnes of spot LNG by the end of 2019, up from roughly 5.5- 6.0mn tonnes in 2018.
“We strongly believe in LNG, we will
be growing volumes very rapidly,” Arentz said. He added that as well as ramping up activity on the spot market, Glencore was also
Week 49 12•December•2019
w w w . N E W S B A S E . c o m
P11