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TOP NEWS

Foran Energy and Cheniere ink long-term LNG SPA

November 24, 2021, by Sanja Pekic

U.S. LNG exporter Cheniere and Chinese city gas supplier Foran Energy have signed a 20-year LNG sale and purchase agreement (SPA).

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To be precise, Cheniere‘s subsidiary Cheniere Marketing has entered into this binding 20-year LNG SPA. The SPA follows the heads of agreement that subsidiaries of Cheniere and Foran signed back in November 2020.

Under the new deal, Foran will buy approximately 0.3 million tonnes per annum of LNG from Cheniere Marketing. This is on a delivered ex-ship basis for a term of 20 years beginning in January 2023.

The purchase price for LNG under the SPA is indexed to the Henry Hub price, in addition to a fee.

“This long-term LNG solution supports Foran’s goals and provides additional supply as China continues to seek cleaner, lower-carbon natural gas to meet its economic and environmental goals,” said Jack Fusco, Cheniere’s CEO.

“This SPA once again demonstrates the strength of the global LNG market today, particularly in China, and underscores the value of Cheniere’s leading ability to tailor solutions to help our customers advance their long-term energy and environmental priorities.”

TGE scores storage tank job for Yangjiang LNG

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November 22, 2021, by Sanja Pekic

German-based LNG storage contractor TGE Gas Engineering has signed a tank engineering, procurement, and construction (EPC) contract for the Yangjiang LNG storage project.

Courtesy of TGE

Specifically, the consortium of TGE Gas Engineering and China Chengda Engineering signed this EPC contract for the project.

The Yangjiang LNG Peak Shaving Storage Project is a proposed LNG terminal, located in China’s Guangdong Province.

It is jointly established by PO&G and Guangdong Yudean Natural Gas under a 50/50 partnership.

The company has started the LNG tank piling works previously, on 30 September 2021.

The project includes two 160,000 cubic metres prestressed concrete full containment LNG storage tanks. In addition, there are also:

  • Processing facility of 175,000 cubic metres LNG Jetty;

  • Sea water drainage system;

  • 12 LNG truck loading stations;

  • LNG gasification facilities and auxiliary facilities.

The scale of the Yangjiang LNG project is 2.8 million tonnes per annum, while the total design scale is six million tonnes per annum

Energy trio join in on reporting on GHG-neutral LNG cargoes method

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November 18, 2021, by Sanja Pekic

Singapore-based Pavilion Energy, state-owned QatarEnergy, and U.S. oil major Chevron have jointly published a reporting methodology to produce a statement of GHG emissions for delivered LNG cargoes.

Courtesy of QatarEnergy

A team of representatives from all three companies developed the statement of greenhouse gas emissions (SGE) methodology. Also, the global sustainability consultancy Environmental Resources Management (ERM) supported the team.

The companies say this is the first such published methodology that will apply to sales and purchase agreements (SPAs). Specifically, this concerns the executed SPAs by Pavilion Energy with QatarEnergy and Chevron.

The methodology provides a calculation and reporting framework for GHG emissions from wellhead-to-discharge terminal, based on industry standards.

The goal is to create a common standard for the reporting and verification of the GHG emissions associated with producing and delivering an LNG cargo. This is to drive greater transparency and enable stronger action on GHG reduction measures.

Independent academic experts, commercial institutions, and verification bodies have reviewed the SGE methodology. It also complements key industry efforts developed in parallel; specifically the Monitoring, Reporting and Verification (MRV) and GHG Neutral Framework by the International Group of LNG Importers (GIIGNL).

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Platts: Asia-Pacific LNG shipping rates surge to all-time high

November 19, 2021, by Sanja Pekic

According to Platts, Asia-Pacific LNG shipping day rates have reached an all-time high of around $300,000 a day for a standard LNG carrier due to winter demand.

 

On 18 November, Platts assessed Asia-Pacific LNG shipping day rate at nearly six times more than at the start of the month.

The region’s last achieved a record high of around $175,000 a day in mid-January. In other words, it has been mostly between $50,000 and $70,000 a day for most of the year.

The Atlantic LNG shipping day rate also surged to around $245,000 a day this week. However, it hit a record high in January with nearly $300,000a day.

The LNG shipping demand was strong from the start of 2021 due to the energy crisis, as European and Asian LNG prices climbed. Now, most charterers have secured their short positions in advance. So, LNG vessels have been busy on longer voyages to Asia.

The supply of ships in the Pacific is extremely constrained, Platts says. Considering this and the fact that winter is coming, charterers of short positions might have to pay more.

Some charterers felt the latest high-priced deal may not repeat for subsequent fixtures. Others said the LNG shipping market was harsh since it had no independent owners with ships available for charter. This is because charterers secured winter tonnage from March till July 2021.

In mid-October, the volume of LNG cargoes on the water had hit a new record. This amounted to above the five-year average level. The reason is a steep contango in the LNG price structure. Because of the situation, traders booked more vessels which lead to a surge in demand for LNGCs that are yet to return to the spot market.

Freight rates for January 2021 loading will be dependent on the severity of winter in north Asia, said Platts in conclusion.

TUESDAY, JULY 27, 2021

Chennault Airport breaks ground on $4M cargo facility

Chennault International Airport has broken ground on a $4 million facility that represents its entry into the air cargo sector.

The air cargo pass-through facility is anticipated to be certified for international cargo by U.S. Customs and Border Protection.

The new facility will be the centerpiece of Chennault’s latest effort to provide economic diversity and ultimately create new jobs at the airport, which is recognized as an emerging aerospace hub.

The project is propelled by $3 million in capital outlay funding from the Louisiana Legislature with the balance of the funding paid by the Chennault International Airport Authority.

“The willingness to change and look for opportunities outside of the norm is critical to remaining relevant in our dynamic world today,” Chennault Executive Director Kevin Melton said in making the announcement. “Chennault remains a game-changer for Southwest Louisiana—and we’re excited to offer this new opportunity for more development and more jobs.”

Chennault has retained air cargo consultant David Whitaker to help identify potential industry partners in the time ahead.

“Chennault is a very robust airport with enormous potential and Southwest Louisiana is a cargo-rich region of the world,” said Whitaker, who has more than 30 years of airport and air cargo operations experience.

Construction of the 10,000-square-foot warehouse will take 12-18 months. Contractor Trahan Construction was selected to build the facility; the contract was executed June 7.

As the warehouse is being built, ongoing discussions are planned with potential ground handling partners on such related issues as ramp handling, warehouse operations and securing unique ground equipment to service large aircraft.

“Much of the industry is already familiar with Chennault and the Lake Charles Region, given its first-class MRO tenants—including Northrop Grumman, Million Air, LandLocked Aviation Services and Citadel Completions,” Whitaker said. “Chennault offers relief to airlines and freight forwarders who need space and attention.”

“We believe there is value for companies to move goods through Chennault,” said Melton. “We provide a low-cost alternative to the larger markets where expense, ground delays, and airspace delays affect the efficient flow of goods.”

Denise Rau, president of the Chennault International Airport Authority’s board of commissioners, cited the airport’s legacy of public-private partnerships, saying that Chennault’s potential to become a Gulf Coast location for air cargo operations will rest in the same kind of partnerships.

Chennault International Airport, a center of aerospace activity based in Lake Charles, serves the needs of civilian and military aircraft from around the world with world-class infrastructure, state-of-the-art facilities and an array of tenant partners. Its runway is 10,700 feet long, 200 feet wide and built with 17-inch-thick concrete, with a newly refurbished parallel taxiway that has runway capabilities as well.

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