This fortnight in LNG, we have seen a poor heating demand in Europe amid stocks still at 66% of full capacity compared to last fortnight’s levels of 70%, on Jan 31. Levels are still higher than pre-2023. On the Japanese front, the JKM contract is pricing at its lowest level in almost 3 years, with Mar JKM pricing at $8.47/MMBtu on Feb 14. Has the contract reached a floor? Read more in our LNG Report.
Here are some key news from the last fortnight:
Titan, a Netherlands-based company, has completed its first bunkering operation in the UK, deploying a recently chartered 8’200 cu m capacity LNG bunker ship Alice Cosulich.
France’s CMA CGM has taken delivery of the first 10 LNG-capable feeder containerships it ordered for European trades as the EU started introducing tighter regulations on maritime emissions. The company has invested more than $15 billion in a fleet renewal program that will introduce low-carbon fuels into its bunker mix, with the company set to have nearly 120 ships that can run on LNG or methanol in its fleet by 2028.
Singapore’s Seatrium has renewed its long-term favoured customer contract with GasLog LNG Services LTD and Shell International Trading Company Limited. This will involve repairing, refurbishing and upgrading the two entities’ combined fleet of 43 LNG carriers.
Turkey’s state-owned Botas has agreed to further strengthen gas sector ties with Egypt’s state-owned EGAS. Turkey imported around 940kt of LNG from Egypt in 2023 down from 1.68kt in 2022.
Shell has said it expects LNG global demand to rise by over 50% by 2040, expecting demand to reach 625-685 million metric tons per year with China and countries in South and Southeast Asia expected to use LNG to support economic growth.
The government in Pakistan have increased gas prices for the second time in four months to help the health of gas companies affected by subsidiary-related debt. The power sector accounts for around 30% of Pakistan’s gas demand followed by domestic residential and fertiliser sectors at 23-24%.
JERA, Japan’s largest power generation company, has restarted its 360 MW No. 1-3 Chiba gas-fired unit after an unplanned outage. The company has not given any updates on the cause of a fire at its Taketoyo thermal power plant in central Japan on Jan 31.
The floating LNG vessels that are central to the Greater Tortue Ahmeyim (GTA) LNG project have arrived at their destination. GTA phase 1 is set to produce around 2.3 million tonnes of LNG per year and is expected to produce LNG for 20 years.
ENI’s gas and liquid natural gas division posted a record-breaking adjusted EBIT of 0.68 Bn Euros which was helped by favourable arbitrage outcome.
