Mar 2024

Trend of Natural Gas and LNG Prices

Short-term trend

Asia

  • The assessed spot LNG price for near-month delivery to Northeast Asia, JKM, rose to the USD 9s per million Btu on buying to meet prompt demands, but returned to the USD 8’s as demand declined. JKM then rose again to close at USD 10 on 18 March on news of trouble at a U.S. export facility and the occurrence of a cyclone in Australia. JKM dropped again as the market lost purchasing interest due to higher prices, but rose to the high USD 9 on 25 March as Japanese buyers responded to buy to lower temperatures. The next day, JKM fell and dropped to the high USD 8s due to tapering demand.
  • JOGMEC announced in its monthly report of spot LNG prices for delivery to Japan that the average price of spot LNG cargoes for delivery to Japan contracted in February 2024 and scheduled to be delivered from the month onward (contract-based price) was not disclosed. The average price of spot LNG cargoes that were delivered in February 2024 (arrival-based price) was not disclosed.
  • Based on the preliminary figures from Japan's customs statistics of the Ministry of Finance, the country's average LNG import price was USD 12.91 per million Btu, and JPY 99,135 per tonne in February 2024. The price down by USD 0.7 due to the fall of spot LNG prices delivered in February. The average landed prices of LNG in Japan from the United States, the ASEAN region, the Middle East, and Russia in January were USD 9.81, USD 13.16, USD 12.36, and USD 12.80, respectively. Elsewhere in Northeast Asia, average import prices in January were USD 11.32 in China, USD 12.30 in Korea and USD 10.09 in Chinese Taipei (China’s January data was USD 11.77). Japan’s average landed crude oil import price (JCC: Japan crude cocktail) was USD 83.58 per barrel in February 2024. Japanese yen-denominated price stood at JPY 77,882 per kilolitre in February 2024.
  • Japan imported 6.03 million tonnes of LNG in February 2024, 6% lower than the same month in 2023. The figure was the lowest for February since 2009. China imported 5.95 million tonnes of LNG in February 2024, an increase of 19% from the same months of 2023. Korea imported 4.26 million tonnes, 16% lower than the same month of 2023, Chinese Taipei imported 1.37 million tonnes, 8% lower than one year earlier (China’s January data was 7.25 million tonnes).

United States

  • The Henry Hub Natural Gas Futures price rose to USD 1.9 following the announcement of production cuts by a major U.S. shale gas company, but fundamentals were weak and the price subsequently fell to USD 1.7. HH showed price movements depending on feed gas supply to LNG export facilities and inventory level, but as of 26 March, the price was USD 1.6.
  • In its 12 March Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) forecasts an average HH spot price below USD 2 in Q2 2024 as the winter heating season ends and gas inventories are 37% above its five-year average. EIA also stated that the February HH price average of USD 1.7 was partially driven by lower residential and commercial natural gas consumption this winter.

Europe

  • The Dutch TTF Gas Futures price rose to USD 8.7 due to increased interest in underground gas storage injection on lower prices, etc., but returned to below USD 8s on weak fundamentals. However, it rose to reach USD 9.2 on 19 March, mainly due to reported of mal function at a U.S. export facility. TTF fell again due to firm inventory levels and low demands, but rose to USD 9.0 on 25 March when it was reported that Russia had attacked an underground gas storage facility in Ukraine. The following day, the risk premium eased when it was announced that the storage facilities were to be repaired and alternative supplies were to be provided, bringing TTF down to USD 8.8.

LNG and Spot Gas Prices, last 2 years

Mid- to long-term trend

  • The JKM price started to decline from January 2020, reaching an all-time low of USD 1.83 at the end of April 2020 due to increasing supply and slower growth of demand. After hovering in the USD 2s from May until July, it rose again from August 2020 due to supply disruptions at several production facilities to over USD 10 in December, reaching an all-time high of USD 32.5 in January 2021 because of the cold wave. JKM then fell sharply to the USD 5s towards the end of February, turning upwards in March and thereafter. Moving along with the also high European gas prices and briefly surpassing USD 56 in October, JKM remained in the middle of USD 30s in November, above USD 40 in December. In January and February 2022, JKM was in the USD 20s, temporarily surged to USD 85 in March due to fears of Russian pipeline gas supply disruptions, and then hovered around the USD 30s. Trading has been slow since April, with JKM falling from USD 36 to USD 22 in April and remaining in the low USD 20s during May and the first half of June. However, the price reached USD 40 in the second half of June and remained at the same level in July, and in August the price was generally USD 50s, temporarily exceeding USD 60 and USD 70, respectively. In September, JKM showed a downward trend as TTF declined, falling to the high USD 30s, and generally hovering in the high USD 20s during October and November. In December, the market was active during the year-end procurement season and JKM hovered around the USD 30s. In January 2023, trading resumed but was sluggish, with a downward trend from USD 20s, and a further decline to around USD 9s in May. In June 2023, JKM was hovering around USD 12s due to European gas prices fluctuations and other factors, but softened slightly in July to hover around USD 11s on the back of high inventories and low demand. In August, the possibility of a strike at major projects in Australia caused prices to move slightly higher, rising to USD 15 after the strike was implemented in September. In October, the price rose to USD 17 due to the outbreak of conflict in the Middle East and other factors, but in November, geopolitical risks eased somewhat, and the price generally hovered around USD 14s. In December, abundant supply and soft demand brought JKM down to USD 11, and the trend remained unchanged in January, generally at USD 9. In February, the downward trend was further spurred after the Luner New Year in the Northeast Asia region, falling below USD 8, but temporarily approached USD 10 in March, mainly due to short-term demand.
  • Japan's average LNG import price had been declining to the USD 5s in August - October 2020, the lowest level since January 2005, due to the collapse of international crude oil prices from March 2020. Then the average price rose to USD 7s in December 2020 as crude oil prices recovered. In response to strong crude oil price movements, the average price further went up to mid-USD 9s in February 2021, after falling to the mid-USD 7s in March. It had then been on the largely constant rise for the following 18 months to the highest ever at USD 22.73 in September 2022 along with the rise of crude oil prices until June 2022. Japan's average LNG import price declined, following the decline of the oil prices from July 2022, and has remained in the USD 11s to 13s since April 2023.

LNG and Spot Gas Prices, last 10 years

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(source)
Henry Hub price: NYMEX Futures and Options, CME Group
TTF price: ICE Endex, Intercontinental Exchange
JKM: LNG Japan/Korea Marker© 2024 by S&P Global Platts, a division of S&P Global Inc.
JOGMEC spot LNG price: Monthly spot LNG prices for delivery to Japan, JOGMEC; by March 2021, the source is Spot LNG Prices Statistics, Ministry of Economy, Trade and Industry
Japan’s average LNG import price: Trade Statistics of Japan
EUA(EU ETS): ICE Endex, Intercontinental Exchange

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Trend of Natural Gas and LNG Inventories

Japan

  • Japan's LNG inventories as of the end of November 2023 stood at 5.46 million tonnes, an increase of 2.0% and 0.11 million tonnes from October, and a decrease of 10.1% from November 2022, higher than the past five-year average by 0.42 million tonnes.
  • The LNG inventories for city-gas supply as of the end of December 2023 were 2.64 million tonnes, 6.9% lower than November and 2.2% lower than December 2022. LNG consumption for city-gas in December 2023 was 3.08 million tonnes, decreased by 1.9% year-on-year. City-gas companies received 2.91 million tonnes of LNG in December 2023, decreasing year-on-year by 2.3%.
  • The LNG inventories for power generation as of the end of November 2023 were 2.63 million tonnes, decreasing by 1.1% from October and 19.4% lower than November 2022. LNG consumption for power generation in November 2023 was 2.96 million tonnes, decreasing by 1.6% from November 2022. Power generation companies received 3.40 million tonnes of LNG, decreasing year-on-year by 6.3%.
  • According to the "LNG Inventory for Power Generation" released by the Ministry of Economy, Trade and Industry (METI) on 21 March 2024, major power utilities’ LNG inventories were 1.6 million tonnes as of 17 March. This is lower by 0.73 million tonnes than the end of March 2023 and 0.54 million tonnes below the average of the end of March of the past five years.

Japan end of month LNG inventory, 2021-2023

Japan end of month LNG inventory, 2013-2023

(Source)
Compiled based on data from Gas Business and Thermal Power Generation Statistics, Ministry of Economy, Trade and Industry.As the inventory data is available for the period only after January 2008, the five-year average is applicable only after January 2013.

United States

  • As of 15 March 2024, working gas in underground natural gas storage in the United States was 2.33 Tcf, 5.6% decrease from the previous month, according to the U.S. Energy Information Administration (EIA). Gas inventories were 22.7% higher than those at the same time in 2023 and were 682.4 Bcf higher than the past five-year average.

U.S. Natural Gas Underground Storage, 2022 - 2024

U.S. Natural Gas Underground Storage, 2014 - 2024

(Source)
Compiled based on data from the U.S. Energy Information Administration (EIA)

Europe

  • As of 24 March 2024, the stored volume of natural gas in European underground storage facilities operated by the Aggregated Gas Storage Inventory (AGSI +) EU member companies was 675.4 TWh (about 44.68 million tonnes LNG equivalent). The volume was higher than that of one year ago by 7.4% or 46.3 TWh (about 3.06 million tonnes LNG equivalent). The inventories represented 59.2% of the capacity, which was higher than 55.8% on the same day in 2023 and higher than the five-year average of 41.6%. The inventories in Germany, Italy and the Netherlands (which have relatively large storage capacity among the member countries) were 65.8%, 57.8% and 53.9% of their respective capacities.

European Natural Gas Storage, 2022 - 2024

European Natural Gas Storage, 2014 - 2024

(Source)
Compiled based on data from Gas Infrastructure Europe, Aggregated Gas Storage Inventory (AGSI). As the inventory data is available for the period only after January 2011, the five-year average is applicable only after January 2016.

 

  • As of 24 March 2024, the stored volume of LNG in European LNG terminals reported by Aggregated LNG Storage Inventory (ALSI) member operators was 4.81 million cubic meters, 4.0% up from the previous month. The inventories were higher than the same day in 2023 by 17.0% and by 27.2% above the five-year average for the same day. The inventories represented 55.9% of the capacity, which was higher than 53.0% on the same day in 2023.

European LNG Inventory, 2022 - 2024

European LNG Inventory, 2014 - 2024

(Source)
Compiled based on data from Gas Infrastructure Europe, Aggregated LNG Storage Inventory(ALSI). As the inventory data is available for the period only after January 2012, the five-year average is applicable only after January 2017.

Latest Developments in Major Natural Gas and LNG Projects

Highlights

  • Notable development activities were observed during the past month on both export and import sides of the LNG industry around the world. Abu Dhabi's ADNOC advanced to early engineering and construction activities of the planned Ruwais LNG production project, in parallel with progress in its LNG marketing deals. Cheniere Energy filed an application for authorization to construct the Sabine Pass Stage 5 Expansion Project with FERC. Sempra Infrastructure hosted a groundbreaking ceremony for the Port Arthur LNG project. LNG Canada said that the first phase facility was nearing completion. LNG importers around the world were picking up procurement and infrastructure development activities.

 

Asia and Oceania

  • Mitsui O.S.K. Lines, Ltd. (MOL) announced on 5 March 2024 a long-term charter contract for a newbuilt LNG carrier with Tokyo LNG Tanker Co., Ltd (TLT), a subsidiary of Tokyo Gas Co., Ltd. This is the eighth time-charter contract between the two companies. This agreement marks the 11th LNG carrier with which TLT has concluded under long-term charter contracts. The vessel will be built at the Geoje Shipyard of Hanwha Ocean Co., Ltd. in Korea, and is scheduled for delivery in 2026.
  • Aboitiz Power Corporation (AP) of the Philippines announced on 4 March 2024 that the company had entered into a partnership with San Miguel Global Power Holdings Corporation (SMGP) and Meralco PowerGen Corporation (MGen), to launch an integrated LNG facility in Batangas. The development is expected to add over 2,500 MW of power generation. AP and MGen will jointly invest in two of SMGP's gas-fired power plants - the 1,278 MW Ilijan power plant and a new 1,320 MW combined cycle power facility which is expected to commence operations by the end of 2024. SMGP together with AP and MGen will invest in almost 100% of the LNG regasification terminal owned by Linseed Field Corporation, part of AG&P.
  • TotalEnergies announced on 29 February 2024 that it had signed an SPA with Singapore's Sembcorp Fuels, a subsidiary of Sembcorp Industries for up to 0.8 million tonnes per year of LNG for 16 years from 2027, to be sourced from TotalEnergies' global portfolio. The new agreement adds to the companies' current SPA, which runs until 2029.
  • According to Petrovietnam Gas Corporation (PV Gas) in late January 2024 the company expects to supply regasified LNG from its Thị Vải LNG terminal to industrial customers in Southeast Vietnam from the second quarter of 2024. PV Gas has also been implementing Phase 2 of the terminal to 3 million tonnes per year capacity by 2026. PV Gas has been launching the Sơn Mỹ LNG terminal project in Bình Thuận, serving Sơn Mỹ power plants and the South-Central region. In the Northern and Central regions of Vietnam, PV Gas is evaluating locations of two LNG hubs. PV Gas is seeking LNG cargoes, with the first to be delivered in April. PV GAS announced on 6 March the launch of LNG business by tank truck from 15 March.
  • AG&P LNG, a subsidiary of Nebula Energy, announced on 7 March 2024 that it had acquired a 49% stake in Cái Mép LNG Terminal in Vũng Tàu district in South Vietnam. The terminal was developed by Hai Linh Company Limited. The terminal is located near the Mekong River Delta and has three onshore tanks with total capacity of 220,000 m3 of LNG storage, and LNG break- bulk capabilities. The terminal has pipeline connectivity to Vietnam's largest power generation complex, the Phú Mỹ industrial zone, with a gas-fired capacity of 3.9 GW. The terminal is expected to be operational by Q3 2024.
  • India’s Petronet LNG launched two tenders inviting EPC contractors to submit bids for marine and topside facilities, respectively, for the planned third jetty at its Dahej terminal in Gujarat. Petronet said that bids must be submitted by 16 April for the marine facilities and 24 April for the topside facilities, respectively.
  • GAIL (India) Limited, Oil and Natural Gas Corporation (ONGC) and Shell Energy India (SEI) Private Limited on 07 March 2024 signed a tripartite MoU to explore opportunities for import of ethane and other hydrocarbons and development of evacuation infrastructure at Shell Energy Terminal, Hazira.
  • Australia's Santos announced on 26 February 2024 that the company had secured finance for the company's share of the USD 220 million Moomba CCS project in South Australia. The first phase of the Moomba CCS project is 80% complete and is targeting about USD 24 per tonne lifecycle breakeven storage costs. The project will have capacity to store up to 1.7 million tonnes of CO2 per year.
  • Australia's Woodside Energy released its Climate Transition Action Plan (CTAP) on 27 February 2024. The company said the CTAP contained additional information, requested by investors, about Woodside's approach to climate change and the energy transition. This includes further detail on Woodside's potential pathway to net zero Scope 1 and 2 net equity emissions by 2050, and the introduction of a new Scope 3 target to take FIDs (final investment decisions) for 5 million tonnes of CO2 equivalent abatement capacity per year. This complements the existing target to invest USD 5 billion, in new energy products and lower carbon services by 2030.
  • Australia's Woodside Energy said on 27 February 2024 that for the company's targeted reduction in Scope 1 and 2 emissions of 30% by 2030 the biggest low-hanging fruit was to bring solar power, low emissions power into the Pluto LNG facility. According to the company, the company has been moving towards portfolio marketing over the last decade and the company is not doing point to point marketing anymore. On Tokyo Gas' announced sale of its 5% stake in Pluto LNG, Woodside says it reserves rights of pre-emption. As Pluto is a significant crown jewel asset for Woodside, the company wants to take a close look at it.
  • Australia's Woodside Energy announced on 28 February 2024 an SPA with Korea Gas Corporation (KOGAS) for the long-term supply of LNG to Korea, for 0.5 million tonnes per year for 10.5 years from 2026 on a DES basis. The LNG will be sourced from uncommitted volumes across Woodside's global portfolio, including the Scarborough Energy Project which is targeting first LNG cargo in 2026.
  • Tokyo Gas announced on 19 March 2024 changes of the execution date to "To be determined" regarding the previously announced transfer of shares in five Australian project holding companies. The company further said that the date would depend on the status of future approvals by the Australian Government and other relevant parties and on other contractual conditions and the transfer might not be completed depending on the status of them.
  • UGL, a CIMIC Group company, announced on 5 March 2024 that UGL had been awarded a contract with Santos. UGL will provide brownfields construction services for Santos' Darwin LNG Life Extension project to prepare the facility for backfill from the Barossa field.

 

North America

  • The USLNG Association (LNG Allies) along with the American Petroleum Institute and five other associations on 26 February 2024 requested DOE to reconsider the 26 January decision to pause further LNG export authorizations. Texas and 15 other states filed a lawsuit on 21 March challenging the pause on approving applications to export LNG.
  • U.S. Senator John Barrasso (R-WY), ranking member of the Senate Committee on Energy and Natural Resources, and U.S. Representative Cathy McMorris Rodgers (R-WA), chair of the House Committee on Energy and Commerce, sent a letter on 21 March 2024 to the International Energy Agency (IEA), urging the agency to return its core mission of promoting energy security. The lawmakers said "David Turk, . . . Deputy Secretary at the U.S. Department of Energy, justified President Biden's decision to 'pause' the permitting process" for U.S. LNG exports on the basis of IEA forecasts. "President Biden's decision to stop approving LNG export permits could have devastating consequences on the future supply of U.S. LNG to developing countries who will experience decades of robust growth in natural gas demand." Respectable "energy modelling organizations - including the Institute of Energy Economics Japan, BP, ExxonMobil, and the Organization of Petroleum Exporting Countries - show in their reference cases that world demand for natural gas will continue to grow through 2050," the letter said.
  • Sabine Pass Liquefaction and its group of companies filed on 29 February 2024 an application for authorization to site, construct, and operate the Sabine Pass Stage 5 Expansion Project with FERC. The proposed expansion includes two liquefaction trains each with a maximum production capacity of 8.43 million tonnes per year; one boil off gas (BOG) re-liquefaction unit with maximum re-liquefaction capacity of 0.9 million tonnes per year of LNG; and two full-containment, aboveground 220,000 cubic meter LNG storage tanks with loading capabilities and supporting infrastructure. The project will increase the total LNG production capacity of the SPLNG Terminal, at peak operations under optimal conditions, by 17.76 million tonnes per year.
  • Cheniere's Corpus Christi LNG Stage 3 expansion is nearly 53% complete, aiming for first production in 2024, according to the company's filing to FERC on 8 March. The expansion project includes building seven midscale trains, each with an expected liquefaction capacity of about 1.49 million tonnes per year.
  • Tokyo Gas Co., Ltd. announced on 19 March 2024 a plan to establish Tokyo Gas GX1, LLC (TGX1) in the United States in April 2024 as a subsidiary of its subsidiary Tokyo Gas America Ltd. to develop an e-methane business.
  • Eight companies announced on 19 March 2024 that they had signed an MOU to sponsor the creation of a global coalition, the e-NG Coalition, which is dedicated to electric natural gas (e-NG or e-natural gas), also referred to as e-methane. The founding members of the e-NG Coalition include: Engie, Mitsubishi Corporation, Osaka Gas, Sempra Infrastructure, TES, Tokyo Gas, Toho Gas, and TotalEnergies.
  • Tokyo Gas Co., Ltd. announced on 22 March 2024 that the company and Mitsui & Co., Ltd. had reached agreement on a transaction related to biomethane produced overseas. Based on this agreement, approximately 40,000 cubic meters of biomethane (gas equivalent, 30 tonnes of LNG equivalent) derived from biogas emitted from landfills in the United States was regarded to be liquefied as a component of LNG. The first delivery of the product to Japan took place on 19 March at Tokyo Gas' Ohgishima LNG Terminal.
  • According to Sempra Q4 2023 Earnings Call on 27 February 2024, Sempra has "a dual coast LNG export strategy." The ECA LNG Phase 1 approaches its summer 2025 COD (Commercial Operation Date), to bring one of the first North American Pacific Coast LNG export projects to market, with full year operations expected in 2026, to be followed by Port Arthur Train 1, 2027 and Train 2 in 2028. Sempra anticipates an FID on Cameron 2 as early as the first half of 2025. Sempra hosted a groundbreaking ceremony for the Port Arthur LNG project on 18 March 2024.
  • Tellurian, Inc. said on 5 March 2024 that the company would issue a full notice to proceed to Bechtel to begin construction for Phase 1 of the Driftwood LNG project in 2H 2024 targeting first LNG by 2028. While FERC extension approval was granted for the 27.6 million-tonne-per-year project, confirmation was made by DOE that Driftwood non-FTA permit would not be impacted by current 'pause' of export approval decisions.
  • Tellurian Inc. said on 18 March 2024 in its SEC 8-K filing that the company's engagement with Lazard Frères & Co. LLC had been expanded from the previously announced exploration of the sale of the company's upstream natural gas assets to include a broader spectrum of opportunities, including, but not limited to, alternative debt and equity financings, the sale of equity interests in Driftwood or Tellurian, a potential sale of the company, assisting in securing commercial partners, and providing other strategic guidance to the board of directors of the company.
  • Venture Global LNG announced on 18 March 2024 the acquisition and construction of a new large fleet of LNG-powered vessels. Venture Global's fleet will include nine vessels, under construction in Korea, that will be delivered starting in 2024. Six vessels will have a cargo capacity of 174,000 m3 and three a cargo capacity of 200,000 m3.
  • Venture Global LNG said on 15 March 2024 that it was deeply disappointed that CP2 was absent from the FERC Agenda. The company said that it had been eight months since FERC issued a Final Environmental Impact Statement for CP2, making it one of the longest to ever sit before the Commission.
  • Shell, Edison, and other European companies asked FERC on 8 March 2024 to deny Venture Global Calcasieu Pass, LLC's Request for Extension of Time of LNG permit filed on 15 February 2024. FERC asked on 13 March 2024 Venture Global Calcasieu Pass, LLC, to provide information regarding documents that the company had filed as privileged within 5 days.
  • Texas LNG Brownsville LLC, a subsidiary of Glenfarne Energy Transition, LLC, announced on 14 March 2024 that it had received sufficient expressions of interest from leading project finance banks to move to the execution phase of project financing. Texas LNG announced on 18 March that it has signed an HOA with Gunvor Group for a 20-year LNG FOB SPA for 0.5 million tonnes per year of LNG. The latest deal follows Texas LNG's LNG tolling agreement with EQT Corporation announced on 11 January 2024. Texas LNG also recently announced partnerships with Baker Hughes (November 2023), ABB (December 2023) and Gulf LNG Tugs of Texas (February 2024).
  • Delfin LNG LLC submitted on 1 March 2024 to DOE a request for a conditional extension of the deadline to start exporting LNG from Delfin's FLNG (floating LNG) project offshore Cameron Parish, Louisiana to both FTA and non-FTA countries from the original 1 June 2024 by five years to 1 June 2029. Delfin LNG is the only FLNG project that has received non-FTA export authorization from DOE and the only LNG export project with (conditional) approval and a favourable Record of Decision (ROD) from the Maritime Administration (MARAD) under the Deepwater Port Act (DWPA). Delfin LNG says it is nearly ready to make an FID.
  • Gulf LNG Liquefaction Company (GLLC) and Gulf LNG Energy, LLC (GLE) requested on 22 February 2024 from FERC an extension of time to complete the liquefaction project in Jackson County, Mississippi near Pascagoula by five years until 16 July 2029 from the original 16 July 2024. The existing Gulf LNG Terminal is a brownfield facility and was placed in-service in October 2011. The Gulf LNG Terminal consists of a single marine berthing facility, two full containment LNG storage tanks, regasification facilities and a storm surge protection wall that surrounds the facilities. The proposed liquefaction facilities would be placed on a site adjacent to the existing Gulf LNG Terminal. GLLC anticipates that an FID could occur as early as 2025.
  • Vitol Inc. announced on 22 February 2024 a natural gas SPA with EOG Resources, Inc. EOG will supply 180,000 million Btu/d of natural gas (equivalent of approximately 1.25 million tonnes per year of LNG equivalent) to Vitol with 140,000 million Btu/d at a purchase price indexed to Brent Crude Oil and the remaining volumes indexed to Brent or a US Gulf Coast gas index for 10 years from 2027.
  • EQT Corporation announced on 4 March 2024 that it had made a decision to curtail 1 Bcf per day of gross production beginning in late February in response to the low natural gas price environment resulting from warm winter weather and consequent elevated storage inventories. The company expects to maintain the curtailment through the month of March and will reassess market conditions thereafter. Curtailments are expected to total approximately 30 to 40 Bcf of net production during the first quarter.
  • LNG Canada said on 7 March 2024 that the first phase of the LNG Canada facility was nearing completion. With construction work almost complete, commissioning and start-up activities are set to begin. LNG Canada expects to start commercial operations by the middle of 2025. LNG Canada claims that it has designed a project with the lowest carbon intensity of any large-scale LNG export facility operating today: emissions that are 35% lower than the world's best performing facilities and 60% lower than the global weighted average. LNG Canada continues to explore pathways to a potential LNG Canada Phase 2 expansion.
  • New Fortress Energy Inc. (NFE) said on 29 February 2024 that the company expected the first LNG in March and the first cargo in April from its first Fast LNG unit offshore Altamira, Mexico. The company has secured financing commitments for the second FLNG project located onshore Altamira, and expects to complete construction in the first quarter of 2026, according to the announcement.

 

European and surrounding regions

  • The European Commission announced on 28 February 2024 that the first tender with a new mid-term product for the purchasing of gas under the EU Energy Platform closed the preceding night, and has attracted offers for 97.4 bcm. Through the AggregateEU mechanism, the Commission collected 34 bcm of gas demand from 19 companies earlier. The suppliers and consumers have now been matched through the AggregateEU platform, and companies will be able to enter into contractual negotiations bilaterally. Under the mid-term tender buyers were able to submit gas demand for multiple 6-month periods, up to a maximum of 5 years, running from April 2024 to October 2029. At the end of 2023, the EU co-legislators reached a provisional political agreement on the Hydrogen and Decarbonised gases package which will turn the joint purchasing of gas into a permanent instrument.
  • Macquarie Capital's WaveCrest Energy LLC announced on 17 March 2024 the commencement of a market consultation process for its proposed Teesside Flexible Regas Port in advance of a planned capacity auction to be launched in the third quarter of 2024. Teesside Flexible Regas Port is expected to deliver up to 248.5 GWh per day of natural gas. The project will contain onshore buffer storage and LNG regasification equipment which will be connected to a dedicated marine jetty for the mooring and unloading of LNG carriers, with a planned commercial operation in 2026. The market consultation process commenced on 18 March and will close on 26 April.
  • Netherlands' Gate terminal B.V. announced on 11 March 2024 that the terminal was exploring market demand through a non-binding call for expression of interest in small-scale ship loading services for a new to be constructed jetty (jetty 4). Participants are required to submit their interest by 12 April.
  • Deutsche ReGas announced on 24 February 2024 that the "Deutsche Ostsee" terminal in the port of Mukran had begun trial operation. In the morning, FSRU ENERGOS POWER arrived at the port. The ENERGOS POWER is the first of the two regasification ships planned for the terminal. n spring 2024, the NEPTUNE will leave the port in Lubmin and will begin operations in the Mukran industrial port in summer after some modification. Deutsche ReGas operates the energy terminal in Lubmin, the first and so far only privately financed, floating LNG terminal in Germany.
  • Deutsche Energy Terminal GmbH announced on 14 March 2024 arrival of the FSRU "Energos Force" at the industrial port in Stade-Bützfleth. The vessel will be commissioned for several weeks and then feed up to 5 bcm per year of gas into the German gas grid. The third of DET's four floating LNG terminals is currently being completed.
  • Germany's Hanseatic Energy Hub GmbH announced on 21 March 2024 an FID to construct Germany's first land-based terminal for liquefied gases, with commissioning planned in 2027. Initially the HEH will serve as an import terminal for LNG, SNG (synthetic natural gas) and liquefied biomethane and, subsequently, for ammonia, as a carbon-neutral, hydrogen-based energy carrier.

 

Other regions

  • France's GTT announced on 26 February 2024 that the company received tank design orders for 73 LNG carriers and one FLNG in 2023. GTT announced on the day that it received in early 2024 an order from Korean shipyard Samsung Heavy Industries (SHI) for the tank design of 15 new LNG Carriers on behalf of a leading LNG player. The vessels will each offer a capacity of 174,000 m3. The tanks will be fitted with the Mark III Flex membrane containment system developed by GTT. The delivery of the vessels is scheduled between the fourth quarter of 2026 and the fourth quarter of 2028.
  • Abu Dhabi's ADNOC announced on 12 March 2024 that it had issued a Limited Notice to Proceed (LNTP) for early engineering, procurement and construction (EPC) activities to a joint venture, led by Technip Energies, with JGC Corporation and National Petroleum Construction Company PJSC for ADNOC's low-carbon LNG project in Al Ruwais Industrial City, Abu Dhabi. With an FID expected in 2024, the Ruwais LNG project is set to be the first LNG export facility in the Middle East and North Africa region to run on clean power, making it one of the lowest-carbon intensity LNG plants in the world, according to the announcement. The project will consist of two 4.8 million metric tonnes per year LNG liquefaction trains.
  • ADNOC announced on 18 March 2024 a 15-year HOA with SEFE Marketing & Trading Singapore Pte Ltd., a subsidiary of Germany's SEFE Securing Energy for Europe GmbH, for 1 million tonnes per year of LNG. The LNG will primarily be sourced from ADNOC's Ruwais LNG project. This is the second long-term LNG supply HOA from the Ruwais LNG project, following the 15-year agreement with China's ENN Natural Gas signed in December 2023. The deliveries are expected to start in 2028, upon commencement of the facility's commercial operations.
  • Saipem said on 14 March 2024 that it had shipped the first three topsides (one wellhead production and two riser platforms) were loaded out from Saipem's Karimun fabrication yard in Indonesia to QatarEnergy LNG's North Field production sustainability offshore and pipelines project.
  • Hitachi Zosen Corporation announced on 12 March 2024 that the company had concluded an MOU (Memorandum of Understanding) regarding cooperation in the field of methanation with Oman LNG LLC. The MOU aims to implement methanation equipment in LNG plants owned by the Oman LNG and to utilise emitted CO2 as a resource.
  • Eni announced on 27 February 2024 that the first shipment of LNG from the Republic of the Congo was celebrated.
  • Höegh LNG said on 28 February 2024 FSRU Höegh Giant is expected to commence commissioning in Santos, Brazil towards the end of the first quarter.
  • New Fortress Energy Inc. (NFE) announced on 29 February 2024 that its Barcarena LNG terminal located in Pará, Brazil was operational with the Energos Celsius FSRU on-site. The terminal is located at the mouth of the Amazon River and serves as the sole natural gas supply source in the state of Pará and the North region of Brazil.
  • New Fortress Energy, Inc. (NFE) announced on 1 March 2024 that its Terminal Gas Sul (TGS) LNG terminal in Santa Catarina, Brazil, was operational with the Energos Winter FSRU on-site.
  • Argentina's YPF said on 7 March 2024 that it would begin exporting LNG by 2027 by utilising an existing FLNG, expanding export to 25/30 million tonnes per year from 2032 onwards.
  • Staatsolie Maatschappij Suriname N.V. announced on 4 March 2024 that the company had signed a Letter of Agreement (LoA) with PETRONAS and ExxonMobil for further exploration of the gas discovery made in 2020 with the Sloanea-1 exploration well in Block 52 in the Surinamese offshore area. PETRONAS made a gas discovery in 2020 in the block. The LoA is an agreement that broadly sets out the agreements, principles and conditions to further investigate and increase the feasibility of the development of a commercial gas field in Block 52, including the guarantee of a tax-free period of ten years from the start of production. A possible commercial gas field will be developed via an FLNG project.

 

(Note: bcm: billion cubic metre, CCS: Carbon Capture and Storage, DES: delivered ex-ship, DOE: U.S. Department of Energy, EPC: Engineering, Procurement and Construction, EPCI: Engineering, Procurement, Construction and Installation, EPCm: Engineering, Procurement and Construction management, FEED: Front-End Engineering Design, FERC: U.S. Federal Energy Regulatory Commission, FID: Final Invest Decision, FLNG: Floating Liquified Natural Gas, FOB: free-on-board, FSRU: Floating Storage and Regasification Unit, FSU: Floating Storage Unit, HOA: Heads of Agreement, MOU: Memorandum of Understanding, SPA: Sale and Purchase Agreement)

 

 

Supprted by the Institute of Energy Economics Japan (IEEJ)