Trend of Natural Gas and LNG Prices

Short-term trend

アジア

• The assessed spot LNG price for near-month delivery to Northeast Asia, JKM, rose to mid-USD 10s on the rising geopolitical tensions by Russian attacks on Ukrainian storage sites 11 April. After that, JKM then rose again to low-USD 11s on 16 April due to escalating tensions in the Middle East and so on. In the second half of April, JKM dropped to low-USD 10s by continuous low demand due to easing geopolitical tensions and ample inventories.
• 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 March 2024 and scheduled to be delivered from the month onward (contract-based price) was USD 9.3. The average price of spot LNG cargoes that were delivered in March 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 12.39 per million Btu and JPY 95,967 per tonne in March 2024. The price was down by USD 0.5 from February mainly due to the fall of Japan’s average landed crude oil import price in December 2023. The average landed prices of LNG in Japan from the United States, the ASEAN region, the Middle East, and Russia in March were USD 11.04, USD 12.06, USD 10.90, and USD 12.54, respectively. Elsewhere in Northeast Asia, average import prices in March were USD 10.50 in China, USD 11.70 in Korea, and USD 10.24 in Chinese Taipei. Japan’s average landed crude oil import price (JCC: Japan crude cocktail) was USD 82.99 per barrel in March 2024. Japanese yen-denominated price stood at JPY 78,014 per kilolitre in March 2024.
• Japan imported 5.55 million tonnes of LNG in March 2024, 3% lower than the same month of 2023. The figure was the lowest for March since 2009. China imported 6.65 million tonnes of LNG in March 2024, an increase of 25% from the same month of 2023. Korea imported 3.61 million tonnes of LNG in March 2024, 10% lower than the same month of 2023, Chinese Taipei imported 1.93 million tonnes, 16% higher than one year earlier.

米国

• The Henry Hub Natural Gas Futures price stabilized at low levels due to low demand and high inventories throughout April. Due to moderate weather and strong productions, the price dropped to USD 1.6/MBtu on 25 April.

欧州

• The Dutch TTF Gas Futures price rose to USD 10.3 on 16 April due to escalating tensions between Russia and Ukraine and Middle East geopolitical concerns in the middle of the month. Then, the price trended high-USD 8s to low-USD 9s in the second half of the month due to easing geopolitical tensions.

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. In the middle of April, JKM rose to low-USD 11s due to escalating tensions in the Middle East. In the second half of April, JKM trended low-USD 10s due to easing geopolitical tensions.
• Japan's average LNG import price had been declining to 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 USD 9s in February 2021, after falling to the mid-USD 7s in March. It had then been on the 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.

Trend of Natural Gas and LNG Inventories

Japan

• Japan's LNG inventories as of the end of December 2023 stood at 5.77 million tonnes, an increase of 5.5% and 0.30 million tonnes from November, and a increase of 4.1% from December 2022, higher than the past five-year average by 1.10 million tonnes.
• The LNG inventories for city-gas supply as of the end of January 2024 were 2.29 million tonnes, 13.1% lower than December and 1.8% lower than January 2023. LNG consumption for city-gas in January 2024 was 2.82 million tonnes, decreased by 13.6% year-on-year. City-gas companies received 2.79 million tonnes of LNG in January 2024, decreasing year-on-year by 3.8%.
• The LNG inventories for power generation as of the end of December 2023 were 3.13 million tonnes, increasing by 18.9% from November and 10.0% higer than December 2022. LNG consumption for power generation in December 2023 was 3.41 million tonnes, decreasing by 10.2% from December 2022. Power generation companies received 4.44 million tonnes of LNG, increasing year-on-year by 30.8%.
• According to the "LNG Inventory for Power Generation" released by the Ministry of Economy, Trade and Industry (METI) on 17 April 2024, major power utilities’ LNG inventories were 1.61 million tonnes as of 14 April. This is lower by 0.83 million tonnes than the end of April 2023 and 0.41 million tonnes below the average of the end of April of the past five years.

United States

• As of 12 April 2024, working gas in underground natural gas storage in the United States was 2.33 Tcf, unchanged from the previous month, according to the U.S. Energy Information Administration (EIA). Gas inventories were 20.9% higher than those at the same time in 2023 and were 619.2 Bcf higher than the past five-year average.

Europe

• As of 21 April 2024, the stored volume of natural gas in European underground storage facilities operated by the Aggregated Gas Storage Inventory (AGSI +) EU member companies was 703.5 TWh (about 46.54 million tonnes LNG equivalent). The volume was higher than that of one year ago by 8.2% or 53.3 TWh (about 3.53 million tonnes LNG equivalent). The inventories represented 62.1% of the capacity, which was higher than 57.2% on the same day in 2023 and higher than the five-year average of 44.4%. The inventories in Germany, Italy and the Netherlands (which have relatively large storage capacity among the member countries) were 68.3%, 62.6% and 54.8% of their respective capacities.

 

• As of 21 April 2024, the stored volume of LNG in European LNG terminals reported by Aggregated LNG Storage Inventory (ALSI) member operators was 5.19 million cubic meters, 12.6% up from the previous month. The inventories were higher than the same day in 2023 by 6.4% and by 20.8% above the five-year average for the same day. The inventories represented 60.3% of the capacity, which was lower than 65.6% on the same day in 2023.

Latest Developments in Major Natural Gas and LNG Projects

Highlights

• LNG project development activities have been observed in promising gas resource areas, in addition to the United States.
• In Australia, Japanese companies have advanced the process of investing in the development of the Scarborough gas field. The Cedar LNG project, which is under development in Western Canada, has issued a Notice to Proceed (NTP) to its EPC contractors, moving toward a targeted FID in the middle of 2024.

 

Asia and Oceania

• The Japan Bank for International Cooperation (JBIC) announced on 29 March 2024 a loan agreement amounting to up to USD390 million (JBIC portion) with Singapore-headquartered Trafigura Pte Ltd. The loan is co-financed with Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to approximately USD 560 million. The loan is intended to provide the funds required for a Japanese utility company to import term LNG from Trafigura.
• Japan's Saibu Gas said on 26 March 2024 that it would conduct a tender for the capacity expansion at the Hibiki LNG terminal. In addition to a 230,000 m3 LNG tank, the expansion includes LNG regasification and truck loading facilities. An investment decision is planned by the end of 2024 based on the results of the bidding. A target date of operation is set in March 2030.
• China imported 32.793 million tonnes of natural gas in the first quarter of 2024, including pipeline gas and LNG, up by 22.8% from 26.695 million tonnes a year earlier, according to customs data released in April. Natural gas imports in March reached 10.758 million tonnes, up by 21% from a year ago. The quarterly and monthly figures are the highest ever. While China imported 19.78 million tonnes during the first three months of 2024, 25% larger than the same period of 2023, Japan decreased its LNG import by 7% to 17.68 million tonnes.
• BASF announced on 5 April 2024 that it had signed a 15-year contract with ENN Energy to purchase natural gas for its Zhanjiang Verbund site.
• JERA Co., Inc. announced on 16 April 2024 that the company and Singapore’s Energy Market Authority (EMA) had signed an MoU to cooperate on mutually beneficial areas in LNG procurement and supply chains for Singapore and Japan.
• Daphne Technology announced on 16 April 2024 that it would deploy its PureMetrics™ system aboard an LNG carrier chartered by Trafigura and managed by Latsco LNG LLC. According to the announcement, the system directly measures and reports real-time tonnes of GHG emissions, rather than reporting based on fuel consumption estimates.
• Philippines' First Gen Corporation (FGEN) announced on 15 April 2024 that it had concluded its international tender for an LNG cargo by awarding a contract to CNOOC Gas and Power Trading & Marketing Limited (CNOOC). CNOOC will supply an LNG cargo to be delivered in May 2024 on a DES basis to FGEN's subsidiary, First Gen Singapore Pte. Ltd (FGEN Singapore).
• Vietnam's PV Gas (PetroVietnam Gas Corporation) said on 27 March 2024 that it had signed a contract with QatarEnergy to purchase a cargo of LNG for delivery on 12 - 13 April. PV Gas announced on 9 April a contract of 29 March to sell 70,000 tonnes of LNG to EVN. The LNG will be supplied to Phú Mỹ 3 Power Plant in the period of April-May 2024. The cargo arrived at the Thị Vải LNG Terminal in Vũng Tàu on 11 April.
• Mitsui & Co., Ltd. announced on 29 March 2024 that, through its subsidiary Mitsui Oil Exploration Co., Ltd. (MOECO), made an FID and concluded related contracts together with its business partners regarding an integrated development project (Block B Project) encompassing an upstream gas field and a pipeline linking it to a gas-fired thermal power plant complex, on 28 March. The partners include the Vietnam Oil and Gas Group (PVN), PetroVietnam Exploration Production Corporation Limited (PVEP), PetroVietnam Gas Joint Stock Corporation (PV Gas), and Thailand's PTT Exploration and Production Public Company Limited (PTTEP). Production capacity is estimated to be 490 million cubic feet per day, with production scheduled to begin by the end of 2026.
• Chevron's subsidiary Unocal Myanmar Offshore Company Limited (UMOC) has withdrawn its investment from the Yadana natural gas field project in Myanmar, according to one of its partners, Thailand's PTT Exploration and Production Company (PTTEP) in a letter sent to Thailand's stock exchange on 5 April 2024. The Chevron subsidiary had transferred its ownership interest to the remaining partners.
• Indonesia's Pertamina said on 30 March 2024 that the Jawa-1 LNG-to-power project, which includes the Jawa Satu FSRU and a 1.76 GW power plant in West Java, was ready to launch full operations. This is the largest integrated power plant in Southeast Asia equipped with a regasification system, according to Pertamina. The project is managed by Jawa Satu Power (JSP), which is owned by a consortium consisting of Pertamina New & Renewable Energy (40%), Japan's Marubeni (40%) and Sojitz (20%). Indonesia's power company PLN will take all of the electricity produced by the project under a long-term contract. The plant consists of two units with a capacity of 880 MW each. According to Pertamina, the second unit has been in commercial operation since December 2023. In February 2022, Pertamina said that the Jawa-1 PLTGU power plant had reached the first fire milestone at the first unit. The power plant gets LNG from the Tangguh facility in Indonesia's Papua Barat province via the Jawa Satu FSRU. In April 2021, the FSRU received its first commissioning cargo. The vessel works for Jawa Satu Regas, a joint venture consisting of Pertamina, Marubeni, Sojitz, and MOL (operator). MOL announced on 5 April 2024 the March 29 launch of commercial operation by FSRU Jawa Satu.
• India's GAIL plans to increase Dabhol, Maharashtra, LNG terminal capacity to 12 million tonnes per year by 2030. The terminal has a nameplate capacity of 5 million tonnes per year but it remains idle during the monsoon season. The company is building a breakwater infrastructure.
• Australia's Beach Energy Ltd provided on 8 April 2024 update on the Waitsia Stage 2 development. The Waitsia Joint Venture has addressed quality issues identified in 2023 during pre-commissioning of systems at the Waitsia Gas Plant. Since then, further quality issues have emerged as pre-commissioning activities progress. Based on Beach's review of the contractor's draft schedule and cost estimate, Waitsia Gas Plant first gas is expected by early-CY2025 (previously mid-CY2024), with a planned three-month ramp-up of production thereafter. Beach says it continues to utilise commercial arrangements to enable LNG cargo liftings prior to completion of the Waitsia Gas Plant. In addition to the LNG cargo lifted in December 2023, Beach expects to lift one more LNG cargo in FY24 (by June 2024).
• The Japan Bank for International Cooperation (JBIC) signed on 26 March 2024 a loan agreement amounting up to USD 831 million (JBIC portion) with JERA Scarborough Pty Ltd, JERA, Inc. Australian subsidiary. It is co-financed with private financial institutions, bringing the total co-financing amount to USD 1.231 billion.
• LNG Japan Corporation, Sumitomo Corporation, and Sojitz Corporation announced on 26 March 2024 that the transaction had been completed under an SPA with a wholly owned subsidiary of Woodside Energy Group Ltd to acquire a 10% non-operating participating interest in the Scarborough Joint Venture. For the acquisition, the purchasing parties have received decision of adoption as an eligible project for providing equity capital and loan guarantee from JOGMEC. JOGMEC will provide equity financing of up to 50% of LJS's (LJ Scarborough Pty Ltd, a subsidiary of LNG JAPAN CORPORATION) proportionate share of the project's development expenditure and a loan guarantee of up to 50% of total debt financing by LJS.
• Tokyo Gas Co., Ltd. disclosed on 28 March 2024 that the transfer of five subsidiaries (four projects) of Tokyo Gas Australia Pty Ltd to MidOcean Energy Holdings Pty Ltd, an Australian subsidiary of EIG Global Energy Partners, LLC of the United States had been completed. MidOcean Energy announced on 1 April a strategic investment by Mitsubishi Corporation.
• Australia's Woodside Energy announced on 17 April 2024 that the Sunrise Joint Venture (SJV) participants, comprising TIMOR GAP (56.56%), Operator Woodside (33.44%), and Osaka Gas Australia (10.00%), had awarded the Greater Sunrise Concept Study contract to Wood Australia Pty Ltd.
• Papua New Guinea's Kumul Petroleum Holdings Limited announced on 17 April 2024 that for the first time it was directly marketing LNG on the spot market from its share of product from the PNG LNG project. The deal is to sell a cargo of LNG on FOB terms to PetroChina International Corporation Limited after a tender process held in February.
• TotalEnergies said on 8 April 2024 that the Papua LNG project would need to keep working with contractors to obtain commercially viable EPC contracts and requires more work to reach an FID. The project plans to review the structure of some packages and open the competition to an enlarged panel of Asian contractors. The FID is expected in 2025.

 

North America

• DOE updated its economic and environmental impact analyses of LNG exports on 18 April 2024 at a House Hearing. According to the testimony, after several years of a burgeoning U.S. natural gas export sector, there exists extensive data and many key global events and trends to incorporate. DOE says it is working as quickly as it can and planning for a 60-day comment period. Together with the public comment process, DOE estimates that the update will be completed by the end of the first quarter of 2025.
• The U.S. Chamber of Commerce's U.S.-Japan Business Council hosted the U.S.-Japan Executive Roundtable on Critical & Emerging Technologies featuring Prime Minister of Japan on 9 April 2024. Participants discussed energy security and emphasized the importance of U.S. LNG exports to Japan and other allies, especially in light of the Administration's moratorium on new LNG exports and global energy constraints.
• According to United States-Japan Joint Leaders' Statement on 10 April 2024, "The United States remains unwavering in its commitment to support the energy security of Japan and other allies, including its ability to predictably supply LNG while accelerating the global transition to zero-emissions energy and working with other fossil energy importers and producers to minimize methane emissions across the fossil energy value chain to the fullest extent practicable." At the end of the Joint Press Conference, there was a question "Will you reconsider the LNG export ban, sir?" to which the president responded, "There is no ban to Japan."
• BRG (Berkeley Research Group) published on 16 April 2024 a report that provided an integrated analysis of methane (CH4) and carbon dioxide (CO2) emissions across leading fuel supply chains for power generation in thirteen European and Asian end markets. Under development since 2021, the study employs a bottom-up methodology to arrive at an analysis and comparison of the emissions intensity of the primary fuel sources, measured in kilograms of CO2 equivalent per megawatt-hour of electricity generated. The report was produced for LNG Allies (The USLNG Association).
• Gulfstream LNG asked FERC on 17 April 2024 to start the environmental pre-filing review for its LNG export project in Louisiana. Gulfstream LNG expects to receive FERC authorization in 2027 and launch the project in 2030. Gulfstream LNG plans to build a three-train plant with a capacity of 4 million tonnes per year in Plaquemines Parish, Louisiana.
• JERA Co., Inc. announced on 25 March 2024 a Project Framework Agreement with ExxonMobil to explore the development of a low carbon hydrogen and ammonia production project in the United States. ExxonMobil is developing what is expected to be the world's largest low-carbon hydrogen production plant at its Baytown Complex east of Houston, Texas, United States. The plant is slated to have an annual production capacity of approximately 900,000 tonnes of low-carbon hydrogen and annual production capacity of more than one million tonnes of low-carbon ammonia. The Project aims to commence production in 2028. JERA and ExxonMobil will explore: JERA's ownership participation in the Project; and JERA's procurement of approximately 500,000 tonnes per year of low-carbon ammonia.
• TotalEnergies said on 8 April 2024 that the company had agreed to acquire the 20% interest held by Lewis Energy Group in the Dorado leases operated by EOG Resources (80%) in the Eagle Ford shale gas play.
• Pembina Pipeline Corporation and its partner the Haisla Nation announced on 4 April 2024 progress on the Cedar LNG project, including securing long-term commercial offtake support and issuing a Notice to Proceed (NTP) to EPC contractors - Black & Veatch will be responsible for complete topside design and equipment supply, including its PRICO® technology. SHI (Samsung Heavy Industries) will be providing the hull with the containment system, and fabrication and integration of all topside modules. A 20-year take-or-pay liquefaction tolling services agreement with a fixed toll has been signed with ARC Resources Ltd. for 1.5 million tonnes per year from late 2028. Pembina has executed an identical bridging agreement with Cedar LNG for 1.5 million tonnes per year. Pembina intends to assign its capacity to a third-party following a positive FID. Chart Industries, Inc. announced on 15 April 2024 that it had been chosen to supply critical liquefaction equipment, including the natural gas liquefaction cold boxes and brazed aluminum heat exchangers, to the Cedar LNG project.
• The Impact Assessment Agency of Canada and British Columbia's Environmental Assessment Office (EAO) are working for review of the initial phase of the Summit Lake PG LNG. JX LNG Canada Ltd. proposes the project located 30 kilometres north of Prince George. The project is anticipated to produce 2.7 million tonnes per year of LNG in two 1.35 million tonne per year phases. Commercial operations for Phase 1 are expected to commence in 2028. The LNG is expected to be transported in ISO containers.

 

European and surrounding regions

• ACER (European Union Agency for the Cooperation of Energy Regulators) said on 19 April 2024 in its Market Monitoring Report (MMR): EU LNG demand is likely to reach its peak in 2024; In 2023, EU imported 18 bcm of Russian LNG, mostly via long-term supply agreements signed before 2022. At least 1 bcm (but possibly more) of this Russian LNG is re-exported to Asian markets through LNG reloads; the United States will lead capacity construction, unaffected by the recently announced pause on granting new LNG export approvals; and the EU remains more dependent on long-term than on spot LNG contracts.
• The European Parliament on 10 April 2024 adopted a provisional political agreement with EU countries on a new law to reduce methane emissions from the energy sector. The new regulation is the first piece of EU legislation aimed at cutting methane emissions and covers direct methane emissions from the oil, fossil gas and coal sectors, and from biomethane once it is injected into the gas network.
• Netherlands' Gasunie issued a warning on 27 March 2024 following the closure of the Groningen field on the security of natural gas supply and seasonal flexibility. The country's high dependency on natural gas imports (75% of its gas demand) will become even greater without domestic production, according to the company.
• TES (Tree Energy Solutions) announced on 25 March 2024 that the German network regulator BNetzA had exempted the (e)LNG terminal within the Green Energy Hub Wilhelmshaven from tariff and third-party access regulation for 20 years from the start of operations. The capacity of the zero-emission terminal is 15 bcm per year.
• Germany's Deutsche Energy Terminal said on 11 April 2024 that the port of Brunsbüttel had started building a dedicated jetty which would host the FSRU Hoegh Gannet.
• Germany's SEFE Securing Energy for Europe announced on 26 March 2024 that it would be the sole shareholder of WIGA, acquiring the 50.02% shareholding held by Wintershall Dea AG. WIGA owns the gas network operators GASCADE and NEL, which together operate networks in Germany with a combined length of around 4,150 km. GASCADE operates a 3,710-km-long pipeline network throughout Germany, while NEL operates the 441-km-long northern European natural gas pipeline.
• Germany's Deutsche ReGas announced on 3 April 2024 that it had ended the LNG shuttle services transportation between the Seapeak Hispania FSU (floating storage unit) and the regasification ship Neptune in Lubmin. Deutsche ReGas is initiating the first step towards relocating the Neptune from Lubmin to the new "Deutsche Ostsee" energy terminal in Mukran. The relocation work in Mukran will take place at the beginning of the summer.
• Shell Deutschland GmbH announced on 18 April 2024 that it had launched what it said would be the largest bio-LNG production plant in Germany. The new plant is located at Shell's Energy and Chemicals Park Rheinland near Cologne.
• Netherlands' VTTI announced on 27 March 2024 that the energy infrastructure company and Germany's IKAV had entered a consortium to acquire majority ownership of Italy's Adriatic LNG regasification terminal located 15 kilometres off the coastline of Veneto region. Italy's Snam announced on 3 April that it had exercised its pre-emption right to increase - from current 7.3% to 30% - its stake in the terminal. The closing of the transaction is expected by the end of 2024. Upon closing of the transaction, the corporate capital of Adriatic LNG shall be held by VTTI at 70% and Snam at 30%.
• According to Russia's government order of 23 March 2024, the government has agreed to sell a 27.5% stake in the Sakhalin-2 project, previously owned by Shell, to Gazprom's Sakhalin Project LLC (ООО «Сахалинский проект») for RUB 94.8 billion.
• Ukraine's Naftogaz said on 24 March 2024 that the damage caused by the military attack on gas storage facilities' ground infrastructure would not affect the services provided by UGS facilities. The damaged surface infrastructure will need repairs.

 

Other regions

• QatarEnergy announced on 24 March 2024 that it had signed time-charter party (TCP) agreements with Nakilat (Qatar Gas Transport Company Limited) for 25 conventional-size LNG vessels as part of the second ship-owner tender under QatarEnergy's LNG Fleet Expansion Program. Seventeen of the 25 LNG vessels are being constructed at the Hyundai Heavy Industries (HHI) shipyards and eight are being constructed at Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) in Korea. Each of the 25 vessels will have a capacity of 174,000 cubic meters and will be chartered out by Nakilat to affiliates of QatarEnergy pursuant to the 15-year TCP agreements.
• QatarEnergy announced on 31 March 2024 that it had signed long-term time charter party (TCP) agreements with four international shipowners for the operation of 19 new conventional size LNG vessels as part of the second ship-owner tender under QatarEnergy's LNG fleet expansion program. The agreements cater for the operation of six vessels by CMES LNG Carrier Investment Inc., six vessels by Shandong Marine Energy (Singapore) Pte Ltd., and three vessels by MISC Berhad; all of which are being constructed at Samsung Heavy Industries in Korea. The remaining four vessels will be operated by a joint venture of Kawasaki Kisen Kaisha Ltd. (K-Line) and Hyundai Glovis Co. Ltd. and are being constructed at Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) in Korea. Since 2022, QatarEnergy has signed a series of TCPs for the long-term charter and operation of 104 conventional LNG vessels. 43 ships out of the 104 will be chartered by QatarEnergy's affiliate QatarEnergy Trading.
• Oman LNG announced on 16 April 2024 an SPA with Japan's JERA Co. for 0.8 million tonnes per year of LNG for 10 years from 2025. Oman LNG announced on 17 April 2024 another SPA with Shell International Trading Middle East Limited (SITME) for up to 1.6 million tonnes per year of LNG for 10 years from 2025.

 

(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)