LNG
Overview
LNG's role as a key feedstock is well established as it helps manage both input costs and carbon emissions. Heavy industrial users' drive to achieve net zero targets has added a new dimension to how and where it is being deployed. Overall, its use is expected to increase and is tipped to become the strongest-growing fossil fuel.
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Latest LNG news
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APLNG's Jan-Mar output higher: Origin
APLNG's Jan-Mar output higher: Origin
Sydney, 30 April (Argus) — The 9mn t/yr Australia Pacific LNG (APLNG) project in Queensland state produced and sold more LNG than the previous quarter and year earlier, Australian independent Origin Energy said in its January-March results. Output rose from the final quarter of 2023 because of the power failure of a vessel docked at APLNG's terminal in Gladstone harbour in late November , which prompted upstream operator Origin to cut flows to the liquefaction plant and APLNG to defer three cargoes to 2024. APLNG exported 134PJ (2.4mn t) of LNG through 34 cargoes for January-March, 8pc up from 124PJ and 32 cargoes the previous quarter and 4pc up on the 129PJ and 33 cargoes shipped in January-March 2023. Total APLNG production for July 2023-March 2024, the first three quarters of Origin's fiscal year to 30 June, was 519PJ, 4pc higher than 498PJ a year earlier, because of effective well and field optimisation activities, fewer maintenance disruptions and the continuing benefit of reducing workover backlog resulting in more wells being on line, Origin said. The terminal will take half a train of capacity off line for 12 days in June , following a two-day maintenance period in January. APLNG's domestic gas sales were 36PJ, steady on the previous quarter but higher by 24pc from the 29PJ sold a year earlier. Gas sales volumes for Origin's energy markets business fell by 5pc to 36PJ from 38PJ in January-March 2023. Origin said it continues to negotiate a deal with the government of New South Wales (NSW) regarding the 2,880MW Eraring coal-fired power station's future . The power plant had been due to close in 2025 but insufficient new generation capacity has been completed in NSW for this to occur. "We continue to progress large-scale batteries under development at Eraring and Mortlake power stations and recently announced our first storage offtake agreement from the Supernode battery in Queensland, taking Origin's storage portfolio to around 1GW of capacity once these batteries come on line," chief executive Frank Calabria said on 30 April. By Tom Major APLNG results Jan-Mar '24 Oct-Dec '23 Jan-Mar '23 y-o-y % ± q-o-q % ± Production (PJ) 176 167 165 7 5 Sales (PJ) 168 160 158 6 4 Commodity revenue (A$mn) 2,303 2,149 2,583 -11 7 Average realised LNG price ($/mn Btu) 12.17 11.88 14.50 -15 3 Average realised domestic gas price (A$/GJ) 6.90 6.39 6.17 12 8 Source: Origin Energy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
BP inks another LNG deal with Korea's Kogas: Correction
BP inks another LNG deal with Korea's Kogas: Correction
Corrects total volume of LNG supplied in paragraph 2 Singapore, 29 April (Argus) — BP has signed another long-term LNG sales and purchase agreement with South Korean state-owned importer Kogas, the former said today. BP will provide Kogas with up to 9.8mn t of LNG over 11 years from mid-2026 on a des basis. But other details regarding pricing and the origin of the contracted supplies were not available. This most recent deal is in addition to the existing long-term sales and purchase agreement between the two companies that was signed in 2022. Kogas on 22 April 2022 signed an 18-year LNG purchase agreement to buy 1.58mn t/yr of LNG from BP that will begin in 2025. Australian independent Woodside Energy and Kogas in February signed a sales and purchase deal for term supplies of LNG to South Korea. The deal for 500,000 t/yr on a des basis will start in 2026 and run for 10½ years. Kogas may be seeking more imported term supply as the firm has increased its downstream contractual supply deals. Kogas signed a series of deals to supply gas to subsidiaries of the country's state-controlled utility Kepco in December 2023. By Simone Tam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Europe remains wary of long-term LNG contracts
Europe remains wary of long-term LNG contracts
Amsterdam, 26 April (Argus) — European firms remain wary of long-term LNG supply contracts despite the sharp increase in LNG demand after the curtailment of Russian pipeline flows, industry experts told the Flame conference in Amsterdam this week. "Long-term LNG contracts bring risks," head of continental Europe merchant trading at Axpo, Marco Saalfrank, said. There are risks in volume, for example the risk of Russian supply returning to the continent in 10-15 years, or the risk of gas demand falling faster than expected over the next decades, he said. And there are also price hazards because hedging at the back of the curve is harder, Saalfrank said. As a result, European buyers largely hold fob offtake — rather than long-term des supply — which can be diverted to Asia if demand is weak. UK-based chemical firm Ineos only has 12pc of its long-term needs contracted and it is more exposed to competition for LNG cargoes with Asian firms, head of LNG at the firm's energy trading arm, Nicola Duffin, told the conference. The firm follows Asian LNG prices more closely than the Henry Hub, she said. Europe's reticence to commit to long-term supply makes the financing of new US LNG exporting facilities harder, according to the chief executive of Gulfstream LNG, Vivek Chandra. "LNG is bullish everywhere else but Europe," Chandra said. But those emerging countries expected to lead demand growth in the coming decades still lack the financial means to take on long-term contracts, he added. In any case, some progress has been made. Europe needs a lot of LNG to replace Russian gas, so there is a big gap that has not been contracted, but some new long-term contracts have been signed, the vice-president of strategy at Cheniere Andrew Walker said. By Isabel Valverde Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japanese gas utilities to sell more city gas in 2024-25
Japanese gas utilities to sell more city gas in 2024-25
Osaka, 26 April (Argus) — Japanese gas utilities are expecting city gas demand from their customers to rebound in the April 2024-March 2025 fiscal year, after warmer than normal weather reduced the use of the heating fuel in 2023-24. Japan's largest gas retailer by sales Tokyo Gas forecast on 25 April that its city gas sales will increase to 11.422bn m³ for 2024-25, up by 1.1pc from a year earlier. Sales to the household sector are predicted to grow by 3.4pc to 2.8bn m³, after unusually warm weather during the summer and winter of 2023-24. Supplies to the industry and commercial users are also anticipated to edge up by 0.3pc to 8.6bn m³ during the period. The optimistic outlook came after a 10.1pc year-on-year fall in city gas sales for 2023-24. Tokyo Gas sold around 2.7bn m³ of city gas, down by 2.8pc from a year earlier, to the household sector to meet weaker weather-driven demand. Sales to the industry sector plunged by 20.1pc to 4.7bn m³ because of slower operations at their customers, while wholesale sales dropped by 3.2pc to 1.56bn m³. The falls more than offset a 2.3pc rise to 2.3bn m³ in the commercial sector where hotter than normal summer weather boosted city gas demand for cooling purposes. Tokyo Gas forecast temperatures in its service area to average 16.4°C in 2024-25, down from the previous year's 17.5°C. Fellow gas retailer Toho Gas forecast its city gas sales to increase by 1.2pc from the previous year to 3.4bn m³ in 2024-25, with supplies to residential users rising by 5.6pc to 595mn m³ and sales to the industry and commercial sectors edging up by 0.3pc to 2.8bn m³. The company sold 3.37bn m³ of city gas in 2023-24, down by 2.4pc from a year earlier, pressured by the warmer weather. City gas sales by Saibu Gas are expected to rise by 2.3pc from a year earlier to 940mn m³ in 2024-25. The company expanded sales by 3pc to 919mn m³ in 2023-24. Possible increased city gas sales in 2024-25 would increase demand for its main feedstock of LNG. But the 2024-25 sales forecast by Tokyo Gas and Toho Gas would remain lower compared with their 2022-23 sales. Japan's city gas production in 2022-23 totalled 35bn m³, which required 25.5mn t of LNG, according to trade and industry ministry data. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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