Germany: Shell is first key account for LNG-terminal in Brunsbüttel

 The LNG-terminal in Brunsbüttel on Germany's north coast is in the planning stage since several years. The russian invasion into Ukraine could accelerate the completion. The operating company can introduce a major customer, the multinational oil and gas company Shell, writes SPON:

The operating company of the German Railway Terminals in Brunsbüttel has a large shopping center in the country. A statement stating that "the shell of a substantial part of the capacity of the terminals in the Brunswüttel for imports from LNG is free of charge", according to the German LNG Terminal GmbH mit. "Beide the pages of the work of the Daran, Umfang and Dauer of the partnership can be highly contracted to be united."

The Terminal is located in 2026 in operation and has a capacity of billions of cubic meters of gas. Long-lived for the import of green water-based derivatives, ammonia is also available.

Wilhemshaven FSRU is taking shape

MarineLog writes:

"Mitsui O.S.K. Lines Ltd. (MOL) and LNG Terminal Wilhelmshaven (LTW) have signed an agreement to build and charter a 263,000 cu.m LNG Floating Storage and Regasification Unit (FSRU) for the planned LNG terminal in Wilhelmshaven, which is Germany’s only deep water port and can be reached without any tidal constraints.

The FSRU will be built by South Korean’s Daewoo Shipbuilding and Marine Engineering (DSME) then chartered by LTW (which is a subsidiary of Düsseldorf headquartered Uniper SE) for 20 years.

DSME said in a filing last week that it had signed a contract worth $340 million to build an FSRU for an undisclosed customer.

The FSRU will make it possible to offload, store and regasify LNG for the German market. It will be moored off the coast not far from Wilhelmshaven and will handle incoming LNG tankers there. The regasified gas will then be pumped from the FSRU along a short connecting pipeline under the sea to the port facilities and finally fed into the German gas transmission network. This eliminates the need to construct complex regasification facilities on land."

 You can read the rest of the piece via the below link:

https://www.marinelog.com/shipping/markets/wilhelmshaven-fsru-to-be-built-by-dsme/

 

Klaus Humpich: future scope of application for LNG

German engineer Klaus Humpich aka NukeKlaus explains the effects of the shale boom in the US the option to replace coal plants.
He focuses especially on the transport of LNG via railroad cars model DOT-113:

"Ein solcher Kryotankwagen ist nach dem Prinzip der Thermosflasche gebaut. Der eigentlich Tank besteht aus mind. 5 mm starkem Edelstahl (Type 304 oder 304L stainless steel nach ASTM A240/A240M gefertigt). Edelstahl ist notwendig, da normaler Stahl nicht die tiefe Temperatur von -162,2 °C aushält (Versprödung). Die äußere Hülle besteht aus mind. 11 mm dickem Kohlenstoffstahl. Sie ist die eigentliche Schutzhülle bei Unfällen. Zwischen beiden Hüllen besteht Vakuum und eine zusätzliche Isolierung gegen Strahlung (Mylar). Die Isolierung muß so gut sein, daß der tägliche Druckanstieg nur 3 psig (0,2 bar) beträgt. Der Tankwagen muß mindestens 45 Tage unterwegs sein können, bevor er beginnt Gas abzublasen. Er ist also während des Transports hermetisch abgeschlossen und es gelangt kein Erdgas in die Umgebung. Um dies zu erreichen, dürfen die Tankwagen nur mit 32, 5 Gewichtsprozenten beladen werden und bei Transportbeginn höchstens einen Druck von maximal 15 psig (1,034 bar) aufweisen. Der Trick, mit der unvermeidlich von außen eindringenden Wärme fertig zu werden, besteht also darin, stets im Nassdampfgebiet zu verbleiben. Es verdampft beständig eine entsprechende Menge des flüssigen Erdgases – wodurch dieses sich selbst kühlt – und steigt als Dampf in den Gasraum oberhalb der Flüssigkeit auf. Dadurch steigt natürlich der Druck im Behälter an. Um ein platzen zu verhindern, verfügt der Tankwagen über mehrere Sicherheitsventile, die gegebenenfalls den Druck kontrolliert abbauen. Dies geschieht schon bei etwa der Hälfte des Berstdruckes für den inneren Behälter. Bei der äußeren Hülle ist das Auslegungskriterium ein Mindestdruck von 2,6 bar gegen das Einbeulen (Vakuum im Zwischenraum)."

You can read the rest of the piece via the below link:

http://www.nukeklaus.net/2019/10/26/erdgas-weiter-auf-dem-vormarsch/adminklaus/

The reasons behind rising LNG charter rates

"So what is behind the move? A key catalyst has been the US sanctions slapped on state-owned Chinese shipping company Cosco for breaching Iranian oil sanctions. This has effectively ‘blacklisted’ a number of vessels operating under long term charter e.g. from Tangguh in Indonesia, Bintulu in Malaysia and the North West Shelf in Australia.  The sourcing of replacement vessels in the spot market has driven up rates.
Four icebreakers used to transport LNG from the Yamal peninsula were also impacted by sanctions, given a Teekay JV with a Chinese company owned by Cosco.  But this issue was resolved last week via an ownership restructure that circumvented the sanctions.

The Cosco issues have grabbed headlines but there are a couple of other factors behind the recovery in charter rates:

1. Contango: Both TTF and JKM forward curves are in steep contango (rising forward prices) across the next two months. This reflects market normalisation from very weak prices across the summer. Curve contango is encouraging cargo owners to use LNG vessels as floating storage i.e. you get paid for delaying delivery of the cargo given rising prices.
2. Distances: As new US export volumes come online, they are increasing average shipping distances, particularly if the LNG is flowing to Asia. This effectively increases utilisation of the global vessel fleet, acting to tighten supply and support charter rates."

You can read the rest of the piece via the below link:

https://timera-energy.com/charter-rate-surge-shakes-lng-market/ 

Oil-gas-links and the outlook on US shale gas

Natural Gas World gives an interesting insight on the US oil and gas market:

"According to a Reuters report, LNG bagged a 14% share of the European gas market in the period October 2018 to August 2019, up from 5% in the same period a year earlier. Gas Infrastructure Europe reports that gas storage in Europe was 89.65% full as of August 20, with storage in Austria, Belgium, the Czech Republic, Denmark, France, Germany and the Netherlands over 90%. European gas prices reached a 10-year low in July … yet still the LNG comes.

Despite general European antipathy towards hydraulic fracturing, it is ‘fracking’ which has delivered this tsunami of cheap gas. In doing so, it addresses a fundamental long-standing driver of European energy policy – the fear that as European domestic gas production falls, Europe will become ever more dependent on the few major pipeline exporters that provide the majority of its imported gas supplies -- with Russia to the fore.

That concern now looks much less severe thanks to US LNG, largely derived from shale drilling. The EIA reported that the US last year saw one of the largest absolute increases in oil and gas production from a single country in history."

(...)

"If a recessionary outlook is assumed, oil demand forecasts will continue to fall and with them oil prices and US shale drilling activity, which will worsen the financial stress already evident in the sector. If this turmoil results in a slowdown in oil production, it is likely to have a knock-on impact on US gas production similar to the last contraction in US shale drilling.

The US will then find itself in an unfamiliar position. Steadily rising demand for gas as long-lead time infrastructure – notably LNG plants – is completed, but a slowdown in production growth. This is likely to push gas prices higher.

Just as gas prices have fallen as oil prices rose, the reverse will go into effect, which would come as an unwelcome surprise both to US users of gas, but also their European counterparts who have this year become used to very low prices for imported US LNG."

You can read the rest of the piece via the below link:

https://www.naturalgasworld.com/oil-prices-and-the-us-lng-juggernaut-lng-condensed-73111?utm_medium=email&utm_campaign=NGW%20Newsletter%20-%20NGWs%20Top%205%20of%20the%20Day%20-%20September%2018%202019&utm_content=NGW%20Newsletter%20-%20NGWs%20Top%205%20of%20the%20Day%20-%20September%2018%202019+CID_edf39098640b56ab2122f19c15e1be91&utm_source=Campaign%20Monitor&utm_term=ull%20ar 

 

 

Nord Stream 2: US congress hits pipe-laying companies

Foreign Policy describes the balancing act of US administration to impede russian dominated Nord Stream 2 pipeline and preserve a productive relationship with german and other european governments:

"The threat of sanctions is now more pronounced. Two bills in the House and the Senate, instead of penalizing the major gas companies involved, would target a perceived weak link: the specialized pipe-laying companies working on Nord Stream 2 (and on the Russian state-controlled gas company Gazprom’s TurkStream project, which will bring Russian gas across the Black Sea to Turkey and eventually to Europe). The bills would sanction pipe-laying companies involved in the project, freezing their U.S. assets and prohibiting them from doing U.S. business.  Only a handful of companies possess the pipe-laying technology Nord Stream 2 needs, and they are in high demand worldwide. One of them, the Swiss-based contractor Allseas—which is heavily exposed to the U.S. dollar and U.S. business—is essential to completing the pipeline, and the proposed sanctions could cause the company to withdraw. The bills have bipartisan support: The Senate Foreign Relations Committee passed the bill by a vote of 20 to two at the end of July, after the House version passed the House Foreign Affairs Committee with similar bipartisan approval. The bills’ widespread support across parties and chambers increases their likelihood of passing with a veto-proof majority, which could kill the pipeline or delay its completion by years."

(...)

"Since 2014, Germany has been the linchpin for sustaining EU sanctions against Russia for its aggression in Ukraine. Increasingly, countries such as Italy, Greece, and Hungary express a desire to end the sanctions, but Berlin has held the EU together. It is risky for the United States to subject Germany to increased political pressure on Nord Stream 2 at a time when solidarity on the more comprehensive sanctions effort is eroding. It would add to a growing list of U.S.-German tensions, including  U.S. tariffs on European aluminum and steel, U.S. demands that Germany increase its defense spending, the consequences of U.S. withdrawal over the Iran nuclear deal, and the question of how best to respond to China’s growing international economic role and the influence of its technology companies worldwide. It is hard to imagine a German government going out on a limb on other U.S. requests—whether for German participation in a maritime escort mission in the Persian Gulf or for German ground troop commitments in Syria—while Washington is sanctioning German companies over Nord Stream 2."

You can read the rest of the piece via the below link:

https://foreignpolicy.com/2019/09/02/maximum-pressure-on-germany-is-a-big-mistake/ 

LNG trade to rise 11 %: Shell outlook

For Shell, the biggest buyer and seller of liquefied natural gas, the  demand of 384 tons of LNG is an indicaion of a booming industry. New import and export capacity is created in the form of import terminals, liquefaction and regasification facilites emerge in Asia, the USA and Russia.

 You can read the rest of this post via the below link:

https://www.reuters.com/article/us-lng-trade/global-lng-trade-to-rise-11-percent-this-year-shell-idUSKCN1QE0NJ 

FERC approves liquefaction and export for Chenieres 2nd train in Corpus Christi

"The US Federal Energy Regulatory Commission (Ferc) on August 28 approved a request from Cheniere Energy to begin full liquefaction and export activities from Train 2 at its Corpus Christi Liquefaction Project (CCLP) in Texas.
CCLP Train 2 has been in commissioning mode since June, and joins Train 1, which has been in full service since March. Both trains are rated at 4.5mn mt/yr of LNG.
The third train at Corpus Christi is expected to be in service by 2021."

https://www.naturalgasworld.com/ferc-okays-full-start-at-chenieres-texas-lng-terminal-72539?#signin 

Nord Stream 2 pipeline project under pressure from different actors

The controversial Gazprom-dominated pipeline project Nord Stream 2 faces hardship on the final sprint before completion.

Denmark has denied the route through its territorial waters and also rejects a permission of an alternative route through the exclusive economic zone.

The swiss subsidiary of  Nord Stream 2 has also filed a lawsuit against provisions of EU directive 2009/73/EC concerning common rules for the internal market in natural gas because it regards some previsions as discriminatory, for instance the incompatibility of the status of pipeline-operator and gas supplier.
 The outcome of the lawsuit is yet to be known.

Lastly the US Senate committee on foreign relations has drafted a bill, the Protect European Energy Security Act, that would allow sanctions  against swiss and italian companies providing ships for the underwater construction works of the pipeline.

Those developments make the completion of the Nord Stream 2 pipeline questionable. 

https://www.bild.de/bild-plus/politik/ausland/politik-ausland/nord-stream-2-warum-es-fuer-putins-neue-ostsee-pipeline-noch-richtig-eng-wird-63692948,view=conversionToLogin.bild.html 

German gas dilemma

As completion of gas pipeline Nord Stream 2 approches, Germany's foreign policy stands in a dilemma. Financial Times sees only two options: joining the US sanctions against Nord Stream 2 actors or enforce EU competion law.


https://www.ft.com/content/37c7670e-f7d1-11e8-a154-2b65ddf314e9

Conflict on gas market looming ahead between Trump and Putin

German newspaper "Die Welt" sees fracking and shale gas as game changer in the natural gas business. US industry is challenging russian domination. Germany has to take a decision whether it wants to open up to LNG imports or to increase the import of piped gas.

"Der Konflikt spielt sich ab vor dem Hintergrund einer technologischen Revolution: Erdgas wird bald Erdöl und Kohle als wichtigsten Energierohstoff überflügeln. Das Gas wird immer öfter in Kühlanlagen verflüssigt und als „Liquified Natural Gas“, kurz LNG, in Tankschiffen über die Weltmeere transportiert. Gab es bislang nur einen Weltmarkt für Rohöl, entsteht dank der LNG-Tanker nun auch ein globaler Markt für Erdgas.

Das Wachstum ist rasant: „Der Handel mit LNG-Gas entwickelt sich siebenmal schneller als der Handel mit Pipeline-Gas“, sagt der Chefvolkswirt des Energiekonzerns BP, Spencer Dale.

Die USA spielen dabei ganz vorne mit: Dank der sogenannten Fracking-Technologie sind sie zum weltweit größten Produzenten von Schiefergas aufgestiegen. Energieriesen stampfen in Louisiana und im texanischen Corpus Christi gewaltige Anlagen zum Verflüssigen des Brennstoffs aus dem Boden.
Die LNG-Revolution ändert die Spielregeln von Grund auf. Länder oder Regionen, die früher durch Pipelines direkt an bestimmte Lieferanten gebunden waren, können nun als Besitzer eines LNG-Terminals frei wählen, bei wem sie ihren Brennstoff einkaufen.
Polen und Litauen etwa haben sich durch den Bau entsprechender Hafenanlagen bereits von russischen Erdgaslieferungen unabhängiger gemacht – und damit auch politische Freiräume gewonnen. Andere Flüssiggas-Terminals wie in Rotterdam, im französischen Dünkirchen, in Spanien, Portugal und Großbritannien existieren bereits, sind aber noch nicht voll ausgelastet.
Angesichts der neuen Einkaufsmöglichkeiten für Energie sehen sich auch Deutschland und die Europäische Union insgesamt vor die Wahl gestellt: Will man Teil des neuen, per Tankerflotte versorgten Weltmarktes für Flüssiggas werden? Oder bindet man sich durch den Bau der neuen Pipeline weiter langfristig vor allem an Russland – ausgerechnet in einer Zeit, in der Moskau eine aggressive Außenpolitik betreibt?"

https://www.welt.de/wirtschaft/article161812712/Gute-Beziehungen-Beim-Gas-wird-es-sich-zeigen.html

Growth of LNG trade are increasing the options for Europe’s gas importers

The increase in global natural gas production, the buildup of new gas transport infrastructure, the decrease in natural gas prices, the growth of liquefied natural gas (LNG) trade are all already increasing the options for Europe’s gas importers and reducing the influence of the Russian energy giant Gazprom. That, in turn, will transform Europe’s energy security in the coming years.  

says Reuters in the commentary: "As Russia’s gas market gets weaker, Europe gets stronger."

LNG rings the bell of a new era in gas business in Europe

The first LNG-carrier from Sabine Pass at the border between the states of Texas and Louisiana landed in April 2016 in Portugal and could break the russian domination of gas business in Europe says german newspaper "Die Welt".

You can read the peace vie the below link:

https://www.welt.de/wirtschaft/article155249235/Das-Schiff-das-ein-neues-Gas-Zeitalter-einlaeutet.html