A tripling of LNG output likely to hit the shipping market

FLNG 09.01.2019 kl 07:14 50992

A predicted tripling of sanctions for global LNG projects in 2019 threatens to disrupt future shipping logistics as demand for the gas enters a more volatile phase because of a rapid increase in supply.

This is the result of a likely record year for final investment decisions (FIDs) that will ultimately deliver more than 60M tonnes of LNG per year (mta), nearly three times the 21 mta sanctioned in 2018, as the research director for Wood Mackenzie Giles Farrer forecasts. Inevitably, increased availability of LNG will influence where tankers deliver their loads.

But Wood Mackenzie also predicts shorter-term volatility in the vagaries of the weather that could affect shipping movements – “a mild end to [the 2019] winter could send more LNG into Europe and drive prices down further,” he said.

The energy consultant’s predictions come at a time of concern over the availability of LNG tankers to handle the huge extra output, particularly in the spot market because most of the fleet are locked into exclusive long-term charters. In a mid-2018 study, the International Energy Agency highlighted a possible shortfall in vessels as a threat to the security of supply, particularly in more remote regions.

The dearth of available LNG carriers is reflected in rocketing spot charter rates. In November, they shot to US$190,000 a day, five times higher than in early May.

Overall though, it appears the tanker fleet will have to adjust to changes in demand in the medium-term future. “Asian LNG demand growth will not keep pace with LNG supply and Europe – northwest Europe in particular – will have to absorb the surplus, especially during the summer,” he predicted in a release this week. “But Europe needs additional imports and flexibility, given its increased reliance on maxed-out Russian and Norwegian imports.”

It is therefore likely, he added, “there would be more LNG imports than required. And that in turn would provide competition to pipe imports and put pressure on prices,” he said. However Mr Farrer does not see the level of oversupply in 2019 that others fear.

A record number of LNG projects, as measured by volume, are due to get the green light. Wood Mackenzie sees the frontrunners in the race to hit FID in 2019 as the giant US$27Bn Arctic LNG-2 project in Russia, at least one project in Mozambique and three in America. Of the latter, Wood Mackenzie identifies three major operations as top picks – Golden Pass, Calcasieu Pass and Sabine Pass Train 6.

But that is not all. There are other projects in the pipeline in America as well as in Qatar, Papua New Guinea, Australia and Nigeria, all aiming for FID in 2019.

Wood Mackenzie sees other global influences that would inevitably determine the course of the growing LNG shipping network. “A recession would bring gas/LNG demand and oil prices down, delay FIDs and push the global LNG market back a few years,” said Mr Farrer. “But there could be a worse scenario for the gas market: a major economic downturn happening in 2020 or 2021, just after 60-100 mta of LNG has taken FID. That would wipe out our forecast price recovery post-2020 and make our forecast that prices soften a little around 2025 look a lot worse.”

Chinese demand is also less certain than it was in 2018, particularly if Beijing rethinks its headlong switch from coal to gas. In the last two years demand for LNG hovered between 40-45% growth, but that could fall to about 20%. However, as Wood Mackenzie pointed out, even if that happened China would remain by far the largest customer for LNG in the global market.

Redigert 21.01.2021 kl 08:51 Du må logge inn for å svare
29.04.2019 kl 12:49 3868

Flex LNG signs $550m of financing for four LNG carriers
Hamilton, Bermuda
April 29, 2019

Flex LNG LTD (OSE:FLNG) (“Flex LNG” or the “Company”) is pleased to announce that it has entered into a sale-charterback transaction with Hyundai Glovis Co. Ltd. (“Hyundai Glovis”) for the vessels Flex Endeavour and Flex Enterprise. Under the agreement, Flex LNG will sell the vessels for a gross consideration of $420m, with a net consideration of $300m adjusted for a non-amortizing and non-interest bearing seller’s credit of $120m in total.

Flex Endeavour and Flex Enterprise will be charted back on a time-charter basis to subsidiaries of Flex LNG for a period of ten years. The Company will have options to acquire the vessels during the term of the time-charters. At the end of the ten-year charter period, Flex LNG will have the right to acquire the vessels and Hyundai Glovis will have the right to sell the vessels back to Flex LNG for a total consideration of $150m, net of the $120m seller’s credit. The existing ship management agreements will be novated to Hyundai Glovis, securing continuation of the ship management services.

The transaction with Hyundai Glovis remains subject to customary closing conditions and is expected to close in the third quarter of 2019. In connection with the transaction, the existing mortgage loans for the two vessels totaling approximately $194m will be prepaid and the transaction will thus significantly increase our liquidity.

Furthermore, Flex LNG is also pleased to inform that the $250m bank facility agreement for Flex Constellation and Flex Courageous, announced on 28 February 2019, has now been signed. The funds will be available for drawdown in connection with the scheduled deliveries in June and August, respectively.

Øystein M. Kalleklev, Chief Executive Officer, commented:
"We are pleased to announce a partnership with Hyundai Glovis, a top-tier global logistics and distribution company. The transaction secures us long-term financing at attractive terms and will significantly boost our cash position by more than $100m. With the two financings we are very well capitalized to take delivery of our remaining newbuildings. Cash break-even levels of less than $50,000 on average for these two financings demonstrate our ability to raise competitive and long-term financing from a diverse set of funding sources.

For further information, please contact:
Øystein M. Kalleklev,
Chief Executive Officer
Flex LNG Management AS
Telephone: +47 23 11 40 00
E-Mail: IR@flexlng.com

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02.05.2019 kl 13:17 3710

Trump-Putin 1-0

‘Freedom gas’: US opens LNG floodgates to Europe

US energy secretary Rick Perry will sign two export orders for liquefied natural gas (LNG) in Brussels today (2 May), in a move officials said will double America’s export capacity to Europe to 112 billion cubic meters per year as of 2020.

Seventy-five years after liberating Europe from Nazi Germany occupation, “the United States is again delivering a form of freedom to the European continent,” said Rick Perry, the US energy secretary.

“And rather than in the form of young American soldiers, it’s in the form of liquefied natural gas,” he told reporters in Brussels on Wednesday (1 May).

“So yes, I think you may be correct in your observation,” he said in reply to EURACTIV, who asked whether “freedom gas” would be a fair way of describing US LNG exports to Europe.

Perry is in Brussels to sign an LNG export order “with a couple of companies” on the sidelines of the first EU-US high-level business forum on energy, hosted by the European Commission on Thursday (2 May).

“So that’s a big deal,” Perry told a small group of journalists invited to a briefing. “The opportunity for Europe to have a very substantial supportive alternative to Russian gas is on display here,” he said.

The LNG export orders come as a follow-up to a July 2018 joint statement by European Commission President Jean-Claude Juncker and US President Donald Trump, in which both sides agreed to strengthen strategic energy cooperation.

“The European Union wants to import more liquefied natural gas (LNG) from the United States to diversify its energy supply,” the statement said.

It’s only been a couple of years since the US started exporting LNG, and Japan is currently the biggest destination country. But the new export orders will allow doubling capacity to Europe, said Steven Winberg, assistant US secretary for fossil energy, who was sitting alongside Secretary Perry as part of an impressive US delegation.

“We’re expecting about 8 billion cubic meters per annum of [additional] US LNG into Europe over a 12 month period. We have about 10bcm per annum of capacity right now, so we could in effect double exports to Europe,” Winberg said.

“Perhaps even more relevant is that by 2020, we will go from 50bcm of export capacity to 112bcm per annum – more than doubling capacity in the next 18 months,” Winberg added.

LNG is significantly more expensive than pipeline gas from Russia and Norway, which are currently the two main exporters of gas to Europe. But some EU countries – chiefly Poland and the Baltic states – are ready to pay a premium in order to diversify their supplies.

Bulgaria, which is currently 100% reliant on Russian gas, said it was ready to import LNG from the US if the price was competitive, suggesting a $1 billion US fund could be used to bring the price down.

But Perry dismissed any suggestion that the US government would interfere on pricing, saying it was up to the companies involved to sign export and import deals.

“We are competing against a state actor which is heavily subsidised,” said, Gordon Sondland, US ambassador to the EU, in reference to Russia’s Gazprom. “And the more volume we do, I think the price will come down naturally,” he added.

Nord Stream 2 in the firing line

According to Perry, the US move on LNG exports will undermine the economic authority of Nord Stream 2, a controversial pipeline project designed to bring Russian gas directly to Germany via the Baltic Sea.

“It makes it more and more economically unfeasible,” said the US energy secretary. “When you get a 20 year contract signed for LNG and you know that the product is going to be delivered in a timely fashion over the next 20 years, why would you want to go to another source of energy?,” he asked.

“Russia will cut off your gas in a moment’s notice if you’re not following their political direction,” Perry warned, referring to a high-profile dispute between Ukraine and Russia over transit fees, which left Europe in the cold during the winter of 2006-07.

“We are not for Nord Stream 2,” Perry said, adding it was “a bad idea to have a single source of supply” for gas in Europe. “Every day that Nord Stream 2 is not completed is another day that the EU has more options for their future natural gas supplies,” he added.

Not only is the US opposed to Nord Stream 2, it has actually threatened to impose sanctions on European firms that participate in the Russian-sponsored gas pipeline project. And those sanctions remain on the table, Perry warned.

“The idea that sanctions are available is still very much a reality,” Perry said, adding it will be up to the US President to decide” whether to apply them or not.

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02.05.2019 kl 22:20 3610

Number of LNG tankers passing through Panama Canal in 2018 up 77% on year: canal authority

Houston — The number of LNG tankers through the expanded Panama Canal in 2018 increased 77% year on year, according to the Panama Canal Authority.
Looking at the volume of LNG carriers transiting the canal so far in 2019, this year's total could match 2018's number or increase this year if good weather conditions permit. As of March, 194 LNG tankers passed through the canal, the canal authority has reported. This represents 67% of the last year's total of 290. In 2017, the total was 163, while it was only 17 in 2016.

Since its expansion in June 2016, of the 6,000 Neopanamax ships that have transited to date more than 50% have been container ships, 26% have been LPG carriers and LNG carriers have been 11%. Dry and liquid bulk carriers, car carriers and cruise ships have made up the remaining transits.

According to the PCA, more than 90% of the LNG world's fleet can now transit the Panama Canal and this allows LNG producers in the Atlantic Basin, mainly those on the US Gulf Coast, to send cargoes to Asia, where 70% of the global demand is found.

The PCA last year doubled to two its guaranteed daily slots for LNG tankers. It also lifted some daylight restrictions for the ships.

However, due to a severe drought caused by an El Nino,thePCA has reduced the maximum authorized draft for vessels transiting the Neopanamax locks for the fifth time this year. The drought has reduced water levels in two of the canal's largest tributary lakes. The draft restrictions are likely to reduce canal traffic significantly, which can lead to finding other routes or the option to pass through the canal with less cargo, making such exports less competitive. The latest maximum authorized draft is 13.41 meters (44 feet), effective April 30.

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03.05.2019 kl 08:14 3492

Pareto: FLNG kan betale utbytter fra H2 2019.
Redigert 21.01.2021 kl 08:11 Du må logge inn for å svare
08.05.2019 kl 20:04 3239

Her er status på Flex sine fartøy, alle i arbeid og Constellation kommer 10 juni. https://www.flexlng.com/fleet-list/
1. Owned FLEX ENDEAVOUR DSME MEGI + PRS 2018 173,400m3 0,075% Employed
2. Owned FLEX ENTERPRISE DSME MEGI + PRS 2018 173,400m3 0,075% Employed
3. Owned FLEX RANGER SHI MEGI 2018 174,000m3 0,085% Employed
4. Owned FLEX RAINBOW SHI MEGI 2018 174,000m3 0,085% Employed
5. Owned FLEX CONSTELLATION DSME MEGI + PRS 2019 173,400m3 0,075% Available 10th June 2019 Ex-yard
6. Owned FLEX COURAGEOUS DSME MEGI + PRS 2019 173,400m3 0,075% Available 31st August 2019 Ex-yard
Redigert 21.01.2021 kl 08:11 Du må logge inn for å svare
09.05.2019 kl 13:24 3094

Jeg synes igrunnen at Flex klarer sek OK i dag. Er det noen som har nor nytt pm rater?
Redigert 21.01.2021 kl 08:11 Du må logge inn for å svare
10.05.2019 kl 22:18 2895

(Reuters) - No liquefied natural gas (LNG) vessels that left the United States in March and April have gone to China, Refinitiv Eikon shipping data shows, as the trade war between the two nations escalates.

On Friday, the United States increased its tariffs on $200 billion in Chinese goods to 25% from 10%, rattling financial markets already worried the 10-month trade war between the world’s two largest economies could spiral out of control.

So far this year, only two vessels have gone from the United States to China - one in January and one in February - versus 14 during the first four months of 2018 before the start of the trade war.

For a graphic on U.S. LNG shipments to China, see: tmsnrt.rs/2LB9nXV.

The data, however, shows a handful of vessels from the United States are still sailing across the Pacific Ocean and some could end up in China.

In 2018, 27 LNG vessels went from the United States to China, down from 30 in 2017. Most of those, however, left U.S. ports before the trade war started, with 18 tankers going to China in the first half of the year and just nine during the second half.

Executives at Cheniere Energy Inc, which owns two of the three big operating U.S. LNG export terminals, said this week that the trade war is “unproductive and creates some added costs for our Chinese consumers” but “hasn’t had an impact on us” and is not expected to have an impact going forward.

The United States and China started imposing tariffs on each other’s goods in July 2018. As the dispute heated up, China added LNG to its list of proposed tariffs in August and imposed a 10-percent tariff on LNG in September.

The United States is the fastest-growing LNG exporter in the world, while China is the fastest-growing importer of the fuel.

U.S. LNG sales jumped 61 percent in 2018 versus 2017, making the country the fourth-biggest exporter in the world, while China, the world’s second-biggest buyer of the fuel, increased its purchases by 39 percent last year as it weans its power and industrial sectors off coal to reduce pollution, according to data from the International Gas Union.

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13.05.2019 kl 16:29 2702

LNGC: Spot rates starting to move –right on schedule

After a month of high fixture-activity we are now starting to see marked moves up in the LNGC spot market
According to Poten, at least seven fixtures were concluded last week, with average TFDE-rates now marked up to USD 51,000/day –up more than 20% w/w (+10,000)
Redigert 21.01.2021 kl 08:11 Du må logge inn for å svare
15.05.2019 kl 19:10 2582

Uke 20:

LNG Rates
Spot Market (USD/Day) This week Change
East of Suez 155-165 000 cbm $33,000 $3,000
West of Suez 155-165 000 cbm $65,000 $0
1 Year T/C 155-160 000 cbm $78,000 $7,000
Redigert 21.01.2021 kl 08:11 Du må logge inn for å svare

Hei, Jeg ser flng har fylt inn skjema for registrering på NYSE. Er det noen som vet fra hvilken dag aksjene blir handlbare der?
Redigert 21.01.2021 kl 08:11 Du må logge inn for å svare
16.05.2019 kl 11:23 2852

Flex går bra i dag noen som har noe nytt om rater?
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17.05.2019 kl 10:43 2737

US LNG exports edge up on week

Liquefied natural gas exports from the U.S. increased over the last week, according to data from the Energy Information Administration (EIA).

EIA stated in its weekly report that eleven LNG vessels, seven from Sabine Pass and two from Cove Point, departed from the United States between May 9 and May 15.

According to the data, the eleven vessels held a combined LNG-carrying capacity of 38.0 bcf.

Two vessels—one at Sabine Pass and one at Corpus Christi—were loading at their terminals on Wednesday.

It is worth noting that Sempra Energy, the owner of the Cameron LNG facility in Louisiana, started LNG production from its Train 1 and expects to load cargoes in the coming weeks.

Redigert 21.01.2021 kl 08:11 Du må logge inn for å svare
17.05.2019 kl 11:01 2735

Kan ikke huske å ha sett noen spesifikk dato. Blir listet etter søknaden er behandlet i H2 en gang.
Redigert 21.01.2021 kl 08:11 Du må logge inn for å svare
20.05.2019 kl 09:53 2542

LNGC: Spot rates moving further up, limited ship availability
The LNGC spot market continues to heat up, with another six fixtures (at least) concluded last week according to Poten & Partners. Another five are on subjects

With this, vessel availability remains low, withonly two vessels promptly available in the Atlantic basin. Eight ships free in the Pacific, however most of these are less efficient steam shipsRates have surged over the past week, with TFDE-rates quoted on average around USD 56,500/day –up near 50% in two weeks. So far in May we have seen near 25 fixtures, which sets the month on par to beat theall-timehigh count of 44x fixtures from May last year.Brokers are now already talking about MEGI-rates approaching six digits, withTeekay LNG Partners having fixed a 2008-built ship to Cheniere for a year at aroundUSD 80,000/day. This would peg MEGI-rates near USD 100,000/day for the same duration

Flex LNG is reportedly also closing in on maiden work for its next newbuild, with the Constellation (according to Tradewinds) on subjects for a 20-40-dayjob straight out of the yard

While the longer-termsustainability of LNGC spot rates have been dampened (in our view)after all the newbuild orders over the past six months, we still expect strong momentum going forward. Flex LNG and Golar LNG are our toppicks on this rebound
Redigert 21.01.2021 kl 08:11 Du må logge inn for å svare
20.05.2019 kl 10:16 2531

Brudd over 200dg
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23.05.2019 kl 16:43 2383

Saudi Arabia wants to buy tons of American natural gas

New York (CNN Business)Saudi Arabia has placed a huge bet on American natural gas.
In a sign of shifting energy fortunes, Saudi Aramco announced a mega preliminary agreement on Wednesday to buy 5 million tons of liquefied natural gas per year from a Port Arthur, Texas export project that's under development.
If completed, the purchase from San Diego-based Sempra Energy (SRE) would be one of the largest LNG deals ever signed, according to consulting firm Wood Mackenzie.
Aramco, Saudi Arabia's crown jewel, would also inject a cash infusion into the Port Arthur development in exchange for a 25% stake.

"This is a major statement about the Saudis entering the LNG market and about how price competitive the outlook is for US gas," said Ira Joseph, head of gas and power at S&P Global Platts.
Although the agreement calls for Saudi Arabia to purchase LNG from the United States, Joseph said it's unlikely the fuel would end up being used to meet the kingdom's vast electricity needs. More likely, Aramco will try to sign up buyers in South America and Europe for the LNG.
"We expect Saudi Aramco will use this volume to establish a global portfolio as it seeks to become a global gas player," Giles Farrer, Wood Mackenzie's research director, wrote in a report.
Saudi investment offsets trade war headaches
Aramco is the world's largest oil company and owns America's largest refinery, which is also located in Port Arthur. But Aramco is just beginning to build its LNG footprint.
"We see significant opportunities in this market and we will continue to pursue strategic partnerships which enable us to meet rising global demand for LNG," Amin Nasser, Aramco's CEO, said in a statement.
The shale revolution has made the United States the world's largest producer of natural gas, a title it's held since 2009 after surpassing Russia.
There's so much natural gas that much of it is being turned into LNG, a super-cooled form of the fuel that it can be transported by ship overseas. China and other developing nations have turned to LNG as a cleaner alternative to coal.
The support from deep-pocketed Saudi Arabia could offset trade war headwinds facing America's US LNG industry.
But US-China and US-Saudi relations are tense.
China imposed a 10% tariff on US LNG in September. Earlier this month, China retaliated against new US tariffs by raising the duties on LNG to 25%. US oil, on the other hand, has been spared China's tariff wrath -- for now at least.
The Saudi Arabian government has been accused of ordering the death of journalist Jamal Khashoggi, and its conflict with Yemen has been condemned by the US Congress. Sempra other companies doing business with Saudi Arabia faces a risk of criticism.
Sempra did not respond to a request for comment about concerns over its partnership with Saudi Arabia.
State oil companies hedge their portfolios
Foreign oil companies are helping to accelerate America's transformation into an LNG powerhouse.
ExxonMobil (XOM) has partnered with Qatar's state oil company on Golden Pass LNG, an export project located in Sabine Pass, Texas. The $10 billion project, scheduled for completion in 2024, is expected to have the ability to eventually export about 16 million tons of LNG a year.
The deals are further evidence of OPEC nations trying to hedge their bets due in part to rising concerns about climate change.

"As the energy transition intensifies," Farrer said, oil-focused national oil companies are "diversifying their exposure away from oil and into gas and LNG."
Farrer said Aramco has also been rumored to be interested in LNG deals in Australia, Arctic Russia and other major markets.

For Sempra, the Aramco deal is likely to increase confidence around the Port Arthur project, which is one of five LNG developments the company is working on in North America.
Wood Mackenzie said the Port Arthur project now likely has enough export volume under contract to secure debt financing. A final investment decision could be reached by the end of 2019 or early 2020.

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