Trend of Natural Gas and LNG Prices

Short-term trend

Asia

• The assessed spot LNG price for near-month delivery to Northeast Asia, JKM, was downward trend from beginning of September to the middle of the month. The price fell to a five-week low of mis-USD 12s on 12 September, but it rebounded temporarily due to rising of demand in Northeast Asia. After that, it rose to mid-USD 13s on 19 September due to heightened geopolitical tensions between Russia and Ukraine following a drone attack in Tver, Russia on 18 September. And then it turned around and the price fell to high-USD 12s following a significant drop in European gas prices.
• 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 August 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 August 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 12.09 per million Btu and JPY 94,687 per tonne in August 2024. The USD price in August was higher than in July as Japan’s average landed crude oil import price in May was higher than in the previous month. The average landed prices of LNG in Japan from the United States, the ASEAN region, the Middle East, and Russia in August were USD 10.14, USD 12.51, USD 11.86, and USD 11.77, respectively. Elsewhere in Northeast Asia, average import prices in August were USD 11.30 in China, USD 12.06 in Korea, and USD 10.49 in Chinese Taipei. Japan’s average landed crude oil import price (JCC: Japan crude cocktail) was USD 86.87 per barrel and JPY 82,510 per kilolitre in August 2024.
• Japan imported 5.73 million tonnes of LNG in August 2024, 1.0% higher than the same month of 2023. China imported 6.54 million tonnes of LNG in August 2024, an increase of 5.1% from the same month of 2023. Korea imported 3.86 million tonnes of LNG in August 2024, 13.4% higher than the same month of 2023, and Chinese Taipei imported 2.03 million tonnes, 14.7% higher than one year earlier.

United States

• The Henry Hub Natural Gas Futures price hovered around low-USD 2s from the beginning of September. It went uptrend form second half of the month. 17% of gas production in the Gulf of Mexico was shut in due to hurricane Helene as of 26 September.

Europe

• The Dutch TTF Gas Futures price was hovering in the mid-USD 11s range amid bearish fundamentals until mid-September but fell sharply to USD 10.8/Mbtu on 19 September following reports that Ukraine would allow Azerbaijani gas to pass through, and then returned to USD 11.3/Mbtu on 20 September after the reports were denied.

Mid- to long-term trend

• 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. In the second half of May, the price trended in the range of high-USD 11s to low-USD 12s due to increased demand for the summer season. In June, JKM rose to mid-USD 13s partly due to summer demand. In July, JKM hovered in the range high-USD 11s to low-USD 12s since demand was weak but falling of the price boosted demand in short term. In mid-August, JKM hit the mid-USD 14s and updated its highest in 2024 amid geopolitical uncertainty. In September, the price softened slightly to hover around USD 13s due to low demand.
• Japan's average LNG import price was in the USD 5s from August until 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 range between USD 11 and USD 14 since April 2023.

Trend of Natural Gas and LNG Inventories

Japan

• Japan's LNG inventories as of the end of March 2024 stood at 3.95 million tonnes, a decrease of 14.3% and 0.66 million tonnes from February, and a decrease of 27.8% from March 2023, lower than the past five-year average by 0.66 million tonnes. (No update from last month's publication)
• The LNG inventories for city-gas supply as of the end of June 2024 were 2.60 million tonnes, 6.3% higher than May and 0.7% lower than June 2023. LNG consumption for city-gas in June 2024 was 2.06 million tonnes, which decreased by 1.2% year-on-year. City-gas companies received 2.21 million tonnes of LNG in June 2024, increasing year-on-year by 11.0%.
• The LNG inventories for power generation as of the end of March 2024 were 1.78 million tonnes, decreasing by 27.6% from February and 36.7% lower than March 2023. LNG consumption for power generation in March 2024 was 3.58 million tonnes, increasing by 19.9% from March 2023. Power generation companies received 3.37 million tonnes of LNG, increasing year-on-year by 1.5%. (No update from last month's publication)
• According to the "LNG Inventory for Power Generation" released by the Ministry of Economy, Trade and Industry (METI) on 18 September 2024, major power utilities’ LNG inventories were 1.88 million tonnes as of 15 September. This is higher by 0.24 million tonnes than the end of September 2023 and 0.11 million tonnes below the average of the end of September of the past five years.

United States

• As of 13 September 2024, working gas in underground natural gas storage in the United States was 3.45 Tcf, 4.4% increase from the previous month, according to the U.S. Energy Information Administration (EIA). Gas inventories were 5.4% higher than those at the same time in 2023 and were 271.8 Bcf higher than the past five-year average.

Europe

• As of 22 September 2024, the stored volume of natural gas in European underground storage facilities operated by the Aggregated Gas Storage Inventory (AGSI +) EU member companies was 1074.0 TWh (about 71.04 million tonnes LNG equivalent). The volume was lower than that of one year ago by 0.5% or 5.3 TWh (about 0.35 million tonnes LNG equivalent). The inventories represented 93.7% of the capacity, which was lower than 94.5% on the same day in 2023 and higher than the five-year average of 88.8%. The inventories in Germany, Italy and the Netherlands (which have relatively large storage capacities among the member countries) were 95.8%, 95.0% and 92.0% of their respective capacities.

 

• As of 22 September 2024, the stored volume of LNG in European LNG terminals reported by Aggregated LNG Storage Inventory (ALSI) member operators was 4.76 million cubic meters, 0.6% up from the previous month. The inventories were higher than the same day in 2023 by 0.9% and by 7.6% below the five-year average for the same day. The inventories represented 54.5% of the capacity, which was lower than 55.5% on the same day in 2023.

Latest Developments in Major Natural Gas and LNG Projects

Highlights

• DOE (U.S. Department of Energy) granted in late August the non-FTA portion of an application filed by NFE Altamira FLNG. While the authorization was for an LNG production project already entering into operation and for re-export of gas via Mexico and it was a special case of an export term of five years, it was the first non-FTA export authorization after the pause of export authorization imposed in January.
• FERC has announced that it will conduct supplemental environmental impact reviews on the two LNG projects in Texas after court orders vacating authorizations - one under construction and the other apparently nearing an FID - pushing back the respective project schedules by more than a year.

 

Asia and Oceania

• Mitsui O.S.K. Lines, Ltd. (MOL) announced on 13 September 2024 an agreement with Chevron Shipping Company LLC to install two Wind Challengers, a hard sail wind-assisted ship propulsion system to a new build LNG carrier under long-term charter from MOL Encean Pte. Ltd. to Chevron Asia Pacific Shipping Pte. Ltd. This vessel will mark the world's first LNG carrier equipped with a Wind-Assisted Ship Propulsion System. The vessel is under construction at Korea's Geoje Shipyard of Hanwha Ocean Co., Ltd. and is scheduled for delivery in 2026.
• TotalEnergies announced on 19 September 2024 a 5-year extension of its SPA with CNOOC, for the delivery of 1.25 million tonnes of LNG per year to China until 2034.
• Thailand's PTT announced on 12 September 2024 that PTT International Trading Company Limited (PTTT) had signed a term LNG purchase agreement with Oman LNG L.L.C. for the first time. The contract period is from 2025 to 2029. PTT said that it would enhance its readiness to become an LNG trading centre in the ASEAN region.
• Thailand's PTT announced on 16 September 2024 that PTT International Trading Company Limited (PTTT) had signed a term LNG purchase agreement with Brunei LNG Sendirian Berhad for the first time. The contract period is from 2025 to 2029.
• Singapore's Sembcorp Industries announced on 2 September 2024 that its subsidiary, Sembcorp Gas Pte Ltd, had signed a Gas Sales Agreement (GSA) with West Natuna Exploration Limited, Empyrean Energy PLC and Coro Energy Duyung (Singapore) Pte. Ltd., to import up to 111 billion Btus per day of piped natural gas (PNG) (0.785 million tonnes per year of LNG equivalent) from the Mako gas fields in Indonesia. The GSA is expected to be effective by the first half of 2025, subject to FID for the Mako gas fields by the sellers and the fulfilment of certain conditions precedent including necessary regulatory approvals and agreements to be entered into. Gas delivery is anticipated to commence from 2026 and has an expected tenure of approximately 11 years.
• Australia's Santos announced on 4 September 2024 a mid-term LNG supply contract with Glencore Singapore Pte Ltd. The contract is to supply 19 LNG cargoes, or up to approximately 0.5 million tonnes of LNG per year over a period of 3 years plus one quarter. The contract will commence in Q4 2025 with LNG being supplied from Santos' global portfolio on a DES basis.
• Australia's Woodside Energy Group Limited announced on 18 September 2024 an SPA with JERA for the long-term supply of LNG to Japan. Woodside will supply approximately 0.4 million tonnes (six cargoes) of LNG per year over 10 years on a DES basis, commencing in April 2026. LNG delivered to JERA under the SPA will be sourced from volumes across Woodside's global portfolio. The execution follows the announcement in February whereby Woodside reached agreement for the sale to JERA of a 15.1% non-operating participating interest in the Scarborough Joint Venture. Woodside expects the Scarborough equity sale to JERA to be completed before the end of 2024.
• Australia's Santos announced on 17 September 2024 that following an announcement of 2 September 2024, the Bayu-Undan Joint Venture (BUJV) participants and TIMOR GAP had executed a Sale and Purchase Deed (SPD) to transfer a 16% interest in the Bayu-Undan upstream project to TIMOR GAP, with an economic date of 1 July 2024. TIMOR GAP participates in the BUJV for the remainder of the economic life of production. The Production Sharing Contract (PSC) for Bayu-Undan will terminate at the earlier of 30 June 2026 or upon cessation of production. The Bayu-Undan upstream project comprises the offshore petroleum field, and offshore production and processing facilities located in Timor-Leste. Bayu-Undan continues to produce gas into the Australian domestic market via a Gas Sales Agreement with the Power and Water Corporation of the Northern Territory, as well as producing liquids. Santos says that it remains committed to working with Timor-Leste and the joint venture to repurpose Bayu-Undan into a new large-scale, commercial carbon capture and storage project when petroleum production ends.

 

North America

• According to EIA (Energy Information Administration) on 4 September 2024, North America's LNG export capacity is on track to more than double between 2024 and 2028, from 11.4 billion cubic feet per day (Bcf/d) in 2023 to 24.4 Bcf/d (185 million tonnes per year) in 2028, if projects under construction begin operations as planned. By the end of 2028, LNG export capacity is estimated to grow by 0.6 Bcf/d in Mexico, 2.5 Bcf/d in Canada, and 9.7 Bcf/d in the United States.
• Venture Global LNG has received an LNG carrier with the first cargo to be used for commissioning its new Plaquemines facility in Louisiana as of 26 August 2024. FERC issued on 30 August an engineering information request based on the review of the final Introduction of Hazardous Fluids (IHF) request for LNG tank reverse cooldown. Venture Global requested on 29 August that FERC allow the project to unload the commissioning cargo. FERC on 6 September granted Venture Global LNG permission to begin preparations for the start-up of the LNG equipment at its Plaquemines export plant.
• Golden Pass LNG Terminal LLC (GPLNG) submitted on 28 August 2024 a request with FERC that FERC amend its prior authorizations to further extend the 30 November 2026 deadline for placing the Export Project Facilities in-service until no later than 30 November 2029. As of the filing of the Motion, GPLNG said that construction the Export Project Facilities was approximately 80% complete.
• NextDecade revealed on 11 September 2024 that its Rio Grande LNG export project had been granted an extension of the deadline until 21 October to file an appeal on the court decision to vacate the project's approval by FERC. The DC Court of Appeals' decision on 6 August was the first time a federal court vacated key permits for an LNG project already under construction.
• FERC issued on 13 September 2024 "Notice of Intent to Prepare a Supplemental Environmental Impact Statement for the Proposed Rio Grande LNG Terminal and Rio Bravo Pipeline Project" including a schedule for completing supplemental environmental impact statements (EIS) for the project after the US Court of Appeals for the DC Circuit in August vacated FERC's authorizations on procedural grounds. FERC would aim to issue a draft EIS in March 2025 for a 45-day public comment period, releasing a final draft on 31 July 2025. That would set up a 90-day Federal Authorization Decision Deadline of no later than 29 October 2025, for issuing a final order for the project no later than 20 November 2025.
• Texas LNG Brownsville LLC, a subsidiary of Glenfarne Energy Transition, LLC, announced on 11 September 2024 that it had executed another HOA with an LNG player for a long-term LNG SPA. Texas LNG says that it has secured customer offtake commitments in a volume sufficient for achieving an FID. The new agreement adds to existing agreements with EQT Corporation, Gunvor Group, and Macquarie Group.
• Kimmeridge Texas Gas (KTG) and Commonwealth LNG announced on 19 September 2024 that they had entered into a Heads of Terms agreement with Glencore LTD. Glencore will purchase 2 million tonnes per year of LNG for 20 years from Commonwealth, as well as equivalent natural gas supply from KTG under a netback agreement at international prices. Commonwealth anticipates an FID on its LNG export facility in Cameron, Louisiana in 1H 2025, with the first LNG production expected in 2028.
• LNG Canada said on 29 August 2024 that during the last week of August the project expected to introduce natural gas to its Kitimat facility for the first time. According to an update on 12 September, construction activities are more than 95% complete overall, and the project remains on track to deliver first cargoes by the middle of 2025. According to the project company, while flaring will be intermittent and on-going during the project start-up process, once the project enters operations, it will occur much less frequently.
• Ministry of Environment and Climate Change Strategy of British Columbia, Canada, announced on 12 September 2024 that its Environmental Assessment Office (EAO) issued 10 administrative penalties totalling CAD 590,000 to Coastal GasLink Pipeline Ltd. (CGL) on 11 September, for non-compliance with requirements of its environmental assessment certificate. The penalties concern deficiencies with erosion and sediment control measures identified by compliance and enforcement officers during multi-day inspections along the pipeline construction route in April and May 2023.
• DOE granted on 31 August 2024 the non-FTA portion of the Application filed by NFE Altamira FLNG, S. de R.L. de C.V. in the full volume requested: 145 Bcf/yr of natural gas, or 0.40 Bcf/d. DOE noted that, although NFE Altamira requested an export term through December 2050, the Order authorized an export term of five years from 31 August 2024 through 30 August 2029. DOE said that DOE would reevaluate the export term upon NFE Altamira's request to amend the Order filed no sooner than two years from the date of the Order. DOE said the Order brought DOE's cumulative total of approved non-FTA exports of LNG from the lower-48 states to 46.45 Bcf/d of natural gas. New Fortress Energy Inc. (NFE) announced on 3 September that it had received authorization from DOE to export up to ~1.4 million tonnes per year of LNG to non-Free Trade Agreement countries from its Fast LNG 1 (FLNG 1) asset located offshore Altamira, Mexico for a term of five years.
• Mexico Pacific, owner of the Saguaro Energía LNG facility and associated Sierra Madre Pipeline, announced on 28 August 2024 that it had signed an SPA with Korea's POSCO International Corporation. POSCO International will purchase 0.7 million tonnes per year of LNG on an FOB basis over 20 years. The first phase of Mexico Pacific's Saguaro Energía LNG facility in Puerto Libertad, Sonora, Mexico, will comprise three liquefaction trains and associated infrastructure. The LNG facility will leverage natural gas from the Permian Basin in Texas.
• Amigo LNG SA de CV, a subsidiary of LNG Alliance Pte Ltd, Singapore, announced on 23 August 2024 that it had entered into a long-term LNG supply agreement with E&H ENERGY SDN BHD of Malaysia. Amigo LNG will supply 3.6 million tonnes per year of LNG to E&H for the Malaysian market over 20 years, beginning in Q3 2027. Amigo LNG is a 7.8 million-tonne-per-year liquefaction and export facility with both FTA and non-FTA permits from DOE, valid until December 2027. The project is located adjacent to the Port of Guaymas in Sonora, Mexico.
• Singapore's LNG Alliance Pte Ltd announced on 30 August 2024 that its subsidiary AMIGO LNG SA de CV of Mexico had entered into a binding HOA (Heads of Agreement) with Oman's OQ Trading to supply LNG from its Amigo LNG liquefaction facility in Guaymas, Sonora, Mexico.
• DOE said on 27 August 2024 that an application was filed on 10 May by Gato Negro Permitium Uno, S. de R.L. de C.V. (Gato). The application requests long-term authorization to export domestically produced natural gas via pipeline to Mexico in a volume up to approximately 236 billion cubic feet (Bcf) per year (Bcf/yr) (0.647 Bcf per day), and to re-export approximately 203 Bcf/yr (0.556 Bcf per day) of the gas as LNG to FTA countries. Gato seeks to re-export the LNG by vessel from its proposed Gato Negro Manzanillo LNG plant, to be located in the State of Colima, Manzanillo, Mexico. The authorization is requested for a term extending through 31 December 2050.

 

European and surrounding regions

• Germany's Deutsche ReGas announced on 3 September 2024 that the Energie-Terminal "Deutsche Ostsee" in the industrial port of Mukran commenced regular operations on 2 September. The LNG carrier HELLAS DIANA unloaded its cargo at the terminal during the last week of August. The company claimed that it was a "world first" for a concurrent LNG delivery into the two interconnected FSRUs. The company claimed that the privately financed terminal had a storage capacity of over 300,000 cubic meters of LNG and is the largest feed-in point of all German LNG terminals with a firm capacity of 16 GWh/h.
• Germany's Uniper announced on 19 September 2024 that the company and ConocoPhillips had extended their long-term gas partnership for the supply of up to 10 bcm of natural gas over the next 10 years. ConocoPhillips will supply natural gas to Uniper in Northwest Europe while leveraging its existing piped gas and growing LNG positions.
• Finland's Gasum said on 2 September 2024 that the company was collaborating with Hapag-Lloyd to supply their container vessels with liquefied biomethane (bio-LNG) during a two-year tender period. Earlier in 2024, Hapag-Lloyd, one of the world's leading container shipping companies, won the first tender by the Zero Emission Maritime Buyers Alliance (ZEMBA) for ocean shipping based on waste-based bio-LNG that achieves at least a 90% reduction of greenhouse gas emissions. The bio-LNG will be used on a route between Rotterdam and Singapore during 2025-2026.
• Venture Global LNG announced on 17 September 2024 the execution of a binding long-term terminal use agreement (TUA) with GASTRADE S.A. Venture Global has secured approximately 1 million tonnes per year of LNG regasification capacity at the new Alexandroupolis LNG receiving terminal in Greece for five years, beginning in 2025.
• NewMed Energy Limited Partnership announced on 1 September 2024 that regarding the approved Aphrodite Field Development and Production Plan in the area of Block 12 of the EEZ of the Republic of Cyprus, on 30 August 2024, the partners in the Aphrodite Field submitted for the approval of the Government of Cyprus an updated plan. According to the plan, production and processing of natural gas from the Field will be accomplished initially through 4 production wells connected to a floating production unit that would be positioned over the Field, with a nominal maximum production capacity of 0.8 BCF per day. Natural gas would be exported from the floating production unit via a pipeline to the Egyptian transmission system. The partners in the Aphrodite Field and their holding rates are as follows: Chevron Cyprus Limited (Operator) 35%; BG Cyprus Limited 35%; and NewMed Energy Limited Partnership 30%.
• Shell announced on 2 September 2024 that Shell International Trading Middle East Fze and Türkiye's BOTAŞ (Boru Hatları ile Petrol Taşıma AŞ) had signed a ten-year agreement through which Shell would supply BOTAŞ with up to 4 bcm (3 million tonnes) of LNG a year from its United States and global portfolio, with deliveries starting in 2027.
• Türkiye's BOTAŞ (Boru Hatları ile Petrol Taşıma A.Ş.) and TotalEnergies announced on 18 September 2024 a 10-year HoA for supply of 16 LNG cargoes (1.1 million tonnes or 1.6 bcm) per year starting from 2027.
• The U.S. Treasury issued on 23 August 2024 sanctions against seven LNG tankers, including the vessels suspected to have shipped the first two cargoes from the Arctic LNG 2 plant in Russia - the Pioneer and the Asya Energy. The other vessels are Everest Energy, registered to India-based Ocean Speedstar Solutions as the first two. Novatek-chartered newbuilds North Air, North Mountain, North Sky and North Way, were also included in the latest sanctions. The U.S. Treasury issued sanctions on 5 September against two additional LNG carriers - Mulan and New Energy.
• According to Russia's NOVATEK's statement on 10 September 2024, NOVATEK is one of the participants in Arctic LNG 2 LLC, while employees of the company are not employed by the project, and all of the project's activities, including operational and commercial activities, are controlled solely by the management of Arctic LNG 2. The allegations made in the media, namely that the company is involved in the establishment and management of a shadow fleet, as well as in loading products from the Arctic LNG 2 project, are untrue and do not stand up to facts, according to the statement.

 

Other regions

• Abu Dhabi's ADNOC announced on 10 September 2024 a long-term HoA with Indian Oil Corporation Ltd (IndianOil) for 1 million metric tonnes per year of LNG. The LNG will primarily be sourced from the Ruwais LNG project, which is expected to start commercial operations in 2028. Under the 15-year agreement, LNG cargoes will be shipped to IndianOil's destination ports in India. By 2029, IndianOil is expected to become ADNOC's biggest LNG customer, with a total offtake of 2.2 million tonnes per year, comprising 1.2 million tonnes per year from Das Island and 1 million tonnes per year from Ruwais LNG.
• QatarEnergy announced on 26 August 2024 that the company had entered into a 15-year LNG SPA with Kuwait Petroleum Corporation (KPC) for the supply of up to 3 million tonnes per year of LNG to the State of Kuwait. The contracted LNG volumes will be DES to Kuwait's Al-Zour LNG Terminal onboard QatarEnergy's conventional, Q-Flex, and Q-Max LNG vessels, starting in January 2025. The new agreement is the second long term LNG SPA with KPC.
• QatarEnergy announced on 9 September 2024 that it had signed an agreement with China State Shipbuilding Corporation (CSSC) for the construction of 6 additional QC-Max vessels, bringing the total number of LNG vessels on order under its fleet expansion program to 128, including 24 QC-Max vessels. The QC-Max vessels, which will be built at China's Hudong-Zhonghua Shipyard, are the largest LNG vessels ever built with a capacity of 271,000 m3 each. The new carriers are scheduled to be delivered between 2028 and 2031.
• According to ExxonMobil on 31 August 2024, Mozambique Area 4 concessionaires have initiated the FEED phase for the Rovuma LNG project. The updated electric LNG concept will incorporate 12 modular units, each capable of producing 1.5 million tonnes per year of LNG.
• ARA Petroleum announced on 16 September 2024 that it had been presented with the 25-year Development Licence over the Ntorya Gas discovery in Tanzania. APT (ARA Petroleum Tanzania) has begun work at the Ntorya site.
• 6 (six) packages with 24 transit slots each and 18 packages with 12 transit slots each covering LNG and LPG vessel access were auctioned on 9 and 11 September, respectively, in the first long-term slot auction for 2025 access to the Panama Canal. The Long-Term Slot Allocation (LoTSA) is in part designed to attract more LNG carriers.
• MidOcean Energy, an LNG company managed by EIG, announced on 16 September 2024 that MidOcean Energy and Hunt Oil Company had entered into an agreement whereby MidOcean would acquire an additional 15% interest in Peru LNG from Hunt. MidOcean's interest in PLNG will increase from 20% to 35%. The transaction will be funded entirely by Aramco, which will increase its interest in MidOcean to 49%. Aramco's indirect stake in PLNG will equate to 17.2%. In addition to EIG and Aramco, Mitsubishi Corporation is an investor in MidOcean. Hunt's interest in PLNG will decrease from 50% to 35%, and Hunt will remain the operator of PLNG following the transaction. Hunt continues to own a 25.2% interest in the Camisea upstream project in Peru.
• Wärtsilä Corporation announced on 19 September 2024 that the company in partnership with Chevron Shipping Company LLC planned to convert one engine on six of Chevron Transport Corporation Ltd.'s LNG Carriers from dual-fuel (DF) to spark gas (SG) operation. The conversions are intended to reduce greenhouse gas emissions by lowering methane slip. The order for the first two vessels was booked by Wärtsilä in Q3 2024.

 

(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)