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News In Brief

13 Apr 2012 10:53:12 | glm

Indonesia's first FSRU sails to West Java

Indonesia's first floating storage and regasifiction (FSRU) unit is set to leave the Jurong Shipyard in Singapore to sail to its Jakarta Bay, according to Indonesia's state owned oil and gas company Pertamina.

"The facility will undergo stages of cooling down and commissioning by the end of April and is expected to be in commercial operation in May 2012," said the company's director Karen Agustiawan at the FSRU release ceremony at the shipyard in Singapore this week.

Norwegian shipowner Golar LNG has delivered the 125,000 cubic metre (m³) LNG Khannur - which has changed its name to Nusantara Regas Satu - to Nusantara, a joint venture between Pertamina and PGN, the national gas group.

The vessel - on an 11-year charter to Nusantara that is worth around $500m - will serve as the FSRU, which will have a capacity of 3.8m tonnes per annum. (ICIS)

Lithuanian government seeks Norwegian LNG

The Lithuanian government aims to secure Norwegian LNG supplies for the Baltic country's planned LNG regasification terminal, a spokesman for its energy ministry confirmed on Wednesday.

The country sent a delegation, including energy minister Arvydas Sekmokas, to meet with Norwegian officials this week to discuss opportunities for the Baltic state to buy LNG from the Snøhvit LNG plant.

Lithuanian oil terminal operator Klaipėdos Nafta is developing a 2.1bn-3.0bn cubic metre/year floating LNG terminal at Klaipėda port, scheduled to be operational by 2014.

The company has invited gas suppliers to tender for the right to provide LNG to the terminal. The deadline to accept supply offers is 27 April, according to a spokeswoman.

Last year, Klaipėdos Nafta signed preliminary agreements with Spanish utility Gas Natural Fenosa and US LNG company Cheniere to import LNG to the terminal (ICIS)

Cove talks continue after Mozambique clarification

The Mozambique government has clarified the rate of a new tax on capital gains, which will apply to the sale of Cove Energy launched in February.

Cove Energy holds assets in Mozambique's Rovuma Basin Offshore Area 1, where US-based explorer Anadarko Petroleum is leading a large-scale LNG export project. In a letter to the Africa-focused explorer, the government said it has set the tax rate at 12.5%.

Discussions with bidders for the company are ongoing, a Cove statement said on Monday. Anglo-Dutch major Shell, as well as Thailand's state oil and gas company PTT, are among the bidders for the company (see GLM 24 February 2012). The successful bidder will join Anadarko, UK oil and gas company BG and Italy's ENI in targeting East Africa's LNG export growth. (ICIS)

India and Qatar deepen their energy ties

India and Qatar signed an initial energy cooperation agreement in which the two governments pledged to pursue joint upstream and downstream investments, the Indian Ministry of External Affairs said in a statement on Monday. The deal - signed by Qatar's Minister for Industry and Energy Mohammed Bin Saleh al-Sada and his Indian counterpart S Jaipal Reddy - detailed greater cooperation on oil and gas exploration as well as refining activities, although the deal could pave the way for greater LNG cooperation.

Indian LNG import consortium Petronet has a long-term contract with Qatar's RasGas for 7.5m tonnes per annum (mtpa). The Indian company is in talks for an additional 2-3mtpa of long-term LNG, but the two sides have yet to agree pricing terms.

Qatar has reportedly offered up to 5mtpa of long-term LNG to Indian buyers at a pricing formula close to 14.5% of Brent crude, although this is understood to be higher than Indian buyers' expectations. (ICIS)

Greek shipper Tsakos joins LNG newbuild rush

Greece-based shipping company Tsakos Energy Navigation has put in an order with a South Korean shipyard for one firm LNG vessel with an option for an additional carrier, the company said in a statement on Tuesday.

The company said it was in discussions to charter out the vessel on a long-term basis and is confident that it will secure employment before delivery in early 2015. Tsakos did not disclose the identity of the shipyard, although shipping sources have previously told ICIS that the contract had been awarded to Hyundai Heavy Industries (see GLM 23 March).

"We are particularly pleased with this order as it expands our presence in this exciting field. LNG operations require a particular set of discipline and commitment in order to gain credence with the sector's premier charterers and we are proud to have met the challenge," said Tsakos chairman John Stavropoulos.

In addition to the newbuild, Tsakoas said that the 150,000 cubic metre Neo Energy has started a new four-year charter agreement on 28 March with a "major international entity" at a 'rate reflective of current market conditions'. UK-headquartered portfolio supplier BG Group is understood to be the counterparty (ICIS).

Arrow to submit Curtis LNG environmental plan

Arrow Energy, the joint venture between Shell and PetroChina, will release the environmental impact statement (EIS) for its planned LNG export project on Curtis Island in the eastern Australian state of Queensland on 16 April, the company said in a statement on Thursday.

The EIS, which outlines the coal-seam gas-based project's potential environmental, social and economic impact, will be available for public review for a six-week period. Arrow previously submitted the EIS for the upstream and pipeline component of the project, which has also been released for public review. Anglo-Dutch major Shell and Chinese state oil and gas company PetroChina are planning to take a final investment decision on the construction of the project's first two 4 million tonne per annum capacity trains in late 2013. Arrow CEO Andrew Faulkner said the release of the LNG plant EIS was a significant step towards project sanction. (ICIS)

Hokkaido to receive first cargo in October 2012

Japanese gas supplier Hokkaido Gas will receive the first commissioning cargo at its new Ishikari import facility on 7 October ahead of the plant's commercial start-up in December, the company said late last week.

The cargo will be sourced in Russia's Sakhalin plant. Hokkaido has a contract with Japan's largest gas utility Tokyo Gas to receive 300,000 to 400,000 tonnes per annum of LNG for 11 years from fiscal year 2012/2013.

The volumes will be mainly sourced from Tokyo Gas long-term contracts with the Sakhalin-2 project and its Australian supply sources (see GLM 5 August 2011). (ICIS)

Singapore targets LNG bunkering for marine fuel

The Maritime and Port Authority of Singapore, together with DNV, has established as joint industry project (JIP) to study the operational feasibility of LNG bunkering in Singapore, the Norway-based company said on Thursday.

The JIP was launched in January 2012 with the aim to provide recommendations to Singapore government authorities on the technical and commercial aspects of LNG bunkering in Singapore.The shipping industry is looking to LNG as a cleaner marine fuel to meet the international regulations, since LNG has much lower emissions compared with the conventional marine diesel oil.

At present, there are 25 LNG-fuelled ships, all of which are operating in the Norwegian Emission Control Area and bunkering from shore facilities, while 24 LNG-fuelled ships are on order, the DNV statement said. (ICIS)

BC export project earns final nod from Canada

The Canadian government has signed off on the export license of the BC LNG Export Co-operative, a proposed 1.8 million tonne per annum (mtpa) floating facility, the Canadian natural resources agency said on Wednesday.

The project, which is led by Houston-based LNG Partners and the Haisla First Nation of British Columbia, was granted the 20-year export license by the regulatory National Energy Board (NEB) on 2 February. Wednesday's announcement is the final green light granted by the Canadian government. The small-scale, barge-based liquefaction scheme will be marketed through a cooperative of natural gas producers, LNG buyers and marketers.

This is the second Canadian LNG export license approved by the NEB. The proposed 10mpta Kitimat LNG liquefaction earned Canada's first export license in late 2011. (ICIS)

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