NEWS AROUND THE WORLD
AUSTRALIA Sep 2016: Woodside Buys BHP’s Scarborough LNG Stake in $US400m Deal
Woodside Petroleum’s US400 million entry into Scarborough LNG joint venture has reduced the likelihood of an expensive FLNG at the project from going ahead with gas from the remote development more likely to be piped back to existing LNG facilities.
Partners on the project, Exxon and BHP have won approval from the federal and Western Australian Governments to go ahead with initial wokrs on Scarborough on the understanding that it would be an FLNG project but the project has since become a low
priority for both companies and BHP’s decision to sell off half its stake to Woodside. Woodside will pay $US250 million upfront for a 25 per cent stake in the “WA-1-R” offshore permit and a 50 per cent stake in the “WA-62-R” permit. - Hellenic Shipping News
SRILANKA
JAPAN
Aug 2016: Sri Lankan Envoy Eyes LNG Imports From Qatar
Aug 2016: Japan’s Jera Plans 42 Percent Cut in Long-Term LNG Contracts by 2030
The Sri Lankan, Ambassador WM Karunadasa said that he is exploring the potential benefits of his country importing LNG from Qatar. “I plan to propose this during Sri Lankan President Maithripala Sirisena’s state visit to Qatar in the latter part of the year. My aim is to push for signing of more agreements, particularly in the energy sector,” added Ambassador WM Karunadasa. “We have close ties with Qatar, which we could strengthen further if we could import LNG from the state. There would be many benefits considering the proximity of our countries. From our end, we can export fresh fruits and vegetables to Qatar,” he said. Karunadasa also noted that LNG from Qatar could be imported through the Port of Colombo, which he said, is Sri Lanka’s “largest and busiest” port.
Japan’s Jera Co, the world’s biggest importer of LNG is planning to reduce the amount of gas it purchases under its long term contracts by 42% by 2030 from current levels. The company currently buys 34.5 mtpa of LNG under contracts that are 10 years or longer. JERA will take this step to prepare for the liberalization of the electric market in the country that has a murky outlook for LNG purchases by the country’s utility companies. Future LNG use will also probably be limited by nuclear power restarts and additional solar power plants. The decision to make these cuts puts some question marks over planned large scale LNG projects, of which many have stopped in their tracks as they rely on these long term contracts to gain financing.
- Gulf Times
- Reuters
5
Vol.28 Oct - Dec 2016 NGV Transportation