Tuesday, September 18, 2012

Massive gas projects hang all hopes on price

Massive gas projects hang all hopes on price:
PUBLISHED: 17 Sep 2012 18:08:06 | UPDATED: 18 Sep 2012 00:01:37
LNG projects on Curtis Island, near Gladstone in Queensland, are expected to come online in 2015.

Alexandra Cain

Three liquefied natural gas plants are under construction in Queensland to meet expected high demand from Asia. It is hoped they will profit from an increase in the gas price. The costs of extraction are expected to increase as thousands of wells are drilled. There is a lull in the negotiation of long-term contracts.
This is the REALITY of an LNG Greenfield ...

Do you want this at James Price Point?

The once lovely Curtis Island on the barrier reef. And this is just the start. Hello gas station pumping our gas to China. Bye bye pristine waters from run off and pollution from passing ships, bye bye dugongs, wildlife and fragile coral ecosystems from dredging and silty sludge for miles up the coast. This is so disgraceful. I'm so bloody angry.
Amanda Shoebridge's Photo
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  1. Sept 18 (LNGJ) - Main Pass Energy Hub, a US joint venture involving Freeport McMoRan Energy, has applied to the US Department of Energy for a licence to export to Free Trade Agreement countries from a Floating LNG facility to be located 16 miles offshore Louisiana. The MPEH export project is one of MORE THAN A DOZEN being developed in the US.


    Sept 18 (LNGJ) - Woodside Petroleum completed the sale of a minority stake in the planned Browse LNG Development to Japan Australia LNG, a company set up by Mitsubishi Corp. and Mitsui. The sale involves the Japanese companies taking a 16 percent interest in the East Browse venture and an 8 percent interest in the West Browse venture for US$2 billion. This gives the new partners a 14.7 percent interest in Browse LNG. Woodside's interest in Browse will be reduced from 46 percent to 31.3 percent, but it remains operator.


    Tuesday, 18 September 2012

    Chicago Bridge and Iron, the engineering company founded in 1889 to span US rivers, was involved in constructing bulk liquid storage way back in the late 19th century and the modern company known for its LNG storage expertise is now moving into floating liquefaction plant contracting with a vessel (pictured) developed by Modec of Japan and others.



    The latest problem occurred when the containment dome aboard the Arctic Challenger barge was damaged during tests off the coast of Washington state over the weekend.

    Other equipment has faced problems. In July, the Noble Discoverer drillship slipped its moorings and dragged anchor, almost running aground in Dutch Harbor in the Aleutian Islands.

    The company has already spent around $5 billion on the Arctic effort, according to published reports, but Odum told the Chronicle that the estimates of huge oil pockets beneath the Arctic waters justify the difficult project.


    OSLO, Sept 18 (Reuters) - BP shut a Norwegian oil and
    gas field after a potentially dangerous leak, the company said
    on Tuesday, six days after the incident forced the emergency
    shutdown of the facility.
    "A substantial escape of hydrocarbons occurred on the Ula
    field in the Norwegian North Sea on 12 September," the Petroleum
    Safety Authority (PSA) said. "The PSA considers the incident to
    have had a substantial potential."
    "The leak arose in the separator module on Ula's production
    platform," it added.


    Natural gas just capped its fourth straight loss. Traders are blaming the supply glut again.

    Nymex gas futures settled 3.2% lower Tuesday and the United States Natural Gas Fund (UNG) is down 1.9% recently.

    “The weak-season fundamentals are starting to weigh on the market,” Gene McGillian of brokerage Tradition Energy tells Dow Jones Newswires’ David Bird.

    Summer demand is finished and the winter buying season hasn’t yet arrived. “At 3.4 trillion cubic feet, we’ve got a whole lot of gas in storage,” McGillian added.

  2. The situation is changing fast.


    Project Delays and Prospects of Cheaper LNG Supplies from North America Threaten Australia’s Plans to Emerge as the Leading LNG Exporter


    Australia’s plan to emerge as the world’s leading LNG supplier faces the challenges of rising project costs, project delays and the prospect of cheaper LNG supplies from North America. Australia plans to have an active LNG liquefaction capacity of about 123.8 Million Metric tons per annum (MMtpa) by 2017, backed by its plan to boost Coal Seam Gas (CSG) production. However, the country’s CSG projects are witnessing cost and time overruns due to difficulties in estimating reserves and production. Workforce shortages and regulatory challenges are also adding to the difficulties. On the other hand, prospects of cheaper LNG supplies from North America are attracting key Asian LNG importers such as Japan, Korea, and India. Japan, the largest LNG importer in the world, plans to import as much as 20% of its LNG requirements from North America. This growing preference for cheaper North American LNG supplies among Asian buyers is likely to affect the prospects of planned LNG projects in Australia.



    TOKYO: Resource-hungry Japan called Wednesday for a revamp of the world’s LNG market, as it ramps up its hunt for new sources of energy for a country badly scarred by the Fukushima disaster. Industry minister Yukio Edano said Liquefied Natural Gas was set to be a huge growth sector over the coming years, and the regionally stratified market for it produced huge price disparities


    TEPCO negotiating to buy LNG from North America

    Business Sep. 19, 2012 - 06:51AM JST ( 1 )

    TOKYO —

    Japan’s biggest utility, Tokyo Electric Power Co (TEPCO), is in advanced talks to secure liquefied natural gas (LNG) supplies from North America and help reduce high import prices as Japan cuts reliance on nuclear power after the Fukushima disaster, company officials said on Tuesday.

    Plentiful supplies have depressed North American gas prices to just over $3 per million British thermal units (mmBtu), sparking interest from Asian markets, where prices for spot LNG are much higher, at around $13 per mmBtu.

    At the same time Japan, the world’s largest LNG importer, has been scouring the globe for supplies of the gas to fuel power stations as most of the country’s nuclear plants have been closed down since the earthquake and tsunami last year.

    For TEPCO, the operator of the Fukushima Daiichi plant, securing cheaper fuel supplies is a crucial part of its business reform plans as it faces billions of dollars of compensation costs for the disaster. The company was nationalized earlier this year.

    “We have been in negotiations with several projects,” Toshiaki Koizumi, the general manager of Tokyo Electric’s fuel department, said at a briefing in Tokyo.

    “We want to procure LNG from the United States and Canada where prices are linked to Henry Hub. The talks have made progress, but I cannot say when they will be finalized,” Koizumi said, referring to the main U.S. gas distribution center.
    Tokyo has been negotiating with Washington since last year to allow more shale gas projects to export LNG to Japan, which hopes to receive LNG shipped via the Panama Canal as early as in 2015.

    Chubu Electric Power Co, Tokyo Gas, Osaka Gas Co and Sumitomo Corp have already announced deals to buy U.S. shale gas.
    All five major Japanese trading houses have invested in shale oil and gas projects in North America, spending a total of more than $13 billion since Sumitomo became the first firm to take part in a shale gas development in 2009.

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    Gas Engineer