LNG
Overview
LNG's role as a key feedstock is well established as it helps manage both input costs and carbon emissions. Heavy industrial users' drive to achieve net zero targets has added a new dimension to how and where it is being deployed. Overall, its use is expected to increase and is tipped to become the strongest-growing fossil fuel.
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Latest LNG news
Browse the latest market moving news on the global LNG industry.
Chinese importers seek five LNG cargoes for Jun-Sep
Chinese importers seek five LNG cargoes for Jun-Sep
Shanghai, 15 May (Argus) — Five Chinese importers, mostly second-tier buyers, are each seeking one LNG cargo for June-September delivery, according to an official notice published by China's national pipeline operator PipeChina on 15 May. The five importers are PipeChina, Chinese independent ENN, Hong Kong-listed city gas firm China Resources Gas, Hong Kong-based Towngas and state-owned China Gas. PipeChina and ENN have indicated a target price of at most $9.50/mn Btu for their intended cargoes, both for delivery to PipeChina's 6mn t/yr Tianjin terminal. China Gas has indicated a target price of at most $9.30/mn Btu for delivery to PipeChina's 6mn t/yr Beihai termial. China Resources Gas and Towngas have both indicated a target price of at most $9/mn Btu for delivery to PipeChina's 2mn t/yr Yuedong and Tianjin terminals, respectively. This consolidated requirement came about because of a need for PipeChina to better leverage on its infrastructure advantages and, at the same time, meet the varying needs of gas importers and consumers in the country. But this requirement comes at a time when spot LNG prices are still somewhat higher than the importers' targeted prices. But the importers can choose not to buy if offers are not within their expectations. The front-half month of the ANEA, the Argus assessment for spot LNG deliveries to northeast Asia, was last assessed at $10.485/mn Btu on 15 May. Chinese importers mostly perceive spot prices below $9-9.50/mn Btu for June-September deliveries to be unattainable for now because there is strong buying interest from south and southeast Asia in particular. Indian state-controlled refiner IOC most recently bought LNG for delivery between 22 May and 15 June at around $10.60/mn Btu, through a tender that closed on 14 May. Thailand's state-controlled PTT most recently bought three deliveries for 9-10 July, 16-17 July and 22-23 July through a tender that closed on 13 May , at just slightly above $10.50/mn Btu. The most recent spot transaction was Japanese utility Tohoku Electric's purchase of a 10-30 June delivery at around $10.55/mn Btu through a tender that closed on 14 May . This is at least $1/mn Btu higher than Chinese importers' indications. Summer requirements have so far been muted but concerns among buyers about potential supply disruptions remain. Malaysia's 30mn t/yr Bintulu LNG export terminal suffered a power loss on 10 May, but this issue may have been resolved as of early on 15 May, according to offtakers. Some unspecified upstream issues may still be affecting production at the Bintulu facility, resulting in Malaysia's state-owned Petronas having to ask some of its buyers for cargo deferments, according to offtakers. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Banks’ 2023 fossil fuel funding rises to $705bn: Study
Banks’ 2023 fossil fuel funding rises to $705bn: Study
London, 13 May (Argus) — Fossil fuel financing by the world's 60 largest banks rose to $705bn in 2023, up by 4.8pc from $673bn in 2022, with the increase largely driven by financing for the LNG sector. This brings the total funding for fossil fuels since the Paris agreement was signed in 2015 to $6.9 trillion. The 15th annual Banking on Climate Chaos (BOCC) report was released on 13 May by a group of non-governmental and civil society organisations including the Rainforest Action Network and Oil Change International, and it analyses the world's 60 largest commercial and investment banks, according to ratings agency Standard and Poor's (S&P). Funding had previously dropped in 2022 to $673bn from $742bn in 2021, but this was because higher profits for oil and gas companies had led to reduced borrowing. JPMorgan Chase was the largest financier of fossil fuels in 2023 at $40.9bn, up from $38.7bn a year earlier, according to the report. It also topped the list for banks providing financing to companies with fossil fuel expansion plans, with its commitments rising to $19.3bn from $17.1bn in 2022. Japanese bank Mizuho was the second-largest financier, increasing funding commitments to $37bn for all fossil fuels, from $35.4bn in 2022. The Bank of America came in third with $33.7bn, although this was a drop from $37.3bn a year earlier. Out of the 60 banks, 27 increased financing for companies with fossil fuel exposure, with the rise driven by funding for the LNG sector — including fracking, import, export, transport and gas-fired power. Developers have rallied support for LNG projects as part of efforts to boost energy security after the Russia-Ukraine war began in 2022, and banks are actively backing this sector, stated the report. "The rise in rankings by Mizuho and the prominence of the other two Japanese megabanks — MUFG [Mitsubishi UFG Financial Group] and SMBC [Sumitomo Mitsui Banking] — is a notable fossil fuel trend for 2023," the report said. Mizuho and MUFG dominated LNG import and export financing, providing $10.9bn and $8.4bn respectively, to companies expanding this sector. Total funding for the LNG methane gas sector in 2023 was $121bn, up from $116bn in 2022. Financing for thermal coal mining increased slightly to $42.2bn, from $39.7bn in 2022. Out of this, 81pc came from Chinese banks, according to the report, while several North American banks have provided funds to this sector, including Bank of America. Some North American banks have also rolled back on climate commitments, according to the report. Bank of America, for example, had previously committed to not directly financing projects involving new or expanded coal-fired power plants or coal mines, but changed its policy in late 2023 to state that such projects would undergo "enhanced due diligence" and senior-level reviews. The report also notes that most banks' coal exclusions only apply to thermal coal and not metallurgical coal. Total borrowing by oil majors such as Eni, ConocoPhillips, Chevron and Shell fell by 5.24pc in 2023, with several such as TotalEnergies, ExxonMobil and Hess indicating zero financing for the year. The BOCC report's finance data was sourced from either Bloomberg or the London Stock Exchange between December 2023 and February 2024. UK-based bank Barclays, which ranks ninth on the list with $24.2bn in fossil fuel funding, said that the report does not recognise the classification of some of the data. Its "financed emissions for the energy and power sectors have reduced by 44pc and 26pc respectively, between 2020-23," it said. In response to its increase in financing for gas power, "investment is needed to support existing oil and gas assets, while clean energy is scaled," the bank said. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India's Chhara LNG terminal to start operations by Oct
India's Chhara LNG terminal to start operations by Oct
Mumbai, 10 May (Argus) — Indian state-run refiner Hindustan Petroleum (HPCL) will start up its 5mn t/yr Chhara LNG import terminal by October, a company official said in an investor call today. This follows commissioning delays after the firm faced difficulty in unloading its first cargo last month. The 160,000m³ Maran Gas Mystras vessel failed to unload at the terminal because of a "swell in the rough sea beyond permittable limit," the official added. The facility is set to be closed from 15 May-15 September because of the monsoon season. The firm will be ready to receive LNG cargoes from October as its pipeline that begins at the terminal and stretches over 40km to Gundala village in Gujarat is now complete, the official said. The pipeline is further connected to Gujarat State Petronet's city gas distribution network to Somnath district, a total stretch of 86.6km. The LNG vessel that arrived in mid-April at the terminal was left stranded for over a week as it could not achieve mooring mode after berthing, because of inclement weather and the lack of a breakwater facility at the terminal, a source close to the matter told Argus . Rough weather and sea conditions caused the vessel to hit the fenders, resulting in damage. Almost five loading arms were also broken before the whole operation was abandoned on 18 April, the source added. The fender acts as a buffer or cushion between the ship hull and the dock, and prevents damage as a result of contact between the two surfaces. HPCL is building a breakwater facility at the terminal which is required to ensure safe LNG tanker berthing during India's monsoon season. No specific timeline has been given for building the breakwater, but the terminal will be able to operate year-round once it is completed. Indian state-controlled refiner IOC brought in the distressed vessel through a tender seeking approximately 80mn m³ of regasified LNG for delivery to the 17.5mn t/yr Dahej terminal at around $8.40/mn Btu on a des equivalent. HPCL also has not awarded a tender that is seeking another early-May delivery cargo , which closed on 19 April. Commissioning of the Chhara LNG terminal has been delayed since September 2022 owing to pipeline issues. The terminal is the country's eighth LNG import facility, which would lift total regasification capacity to 52.7mn t/yr from 47.7mn t/yr currently. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Korea's Kogas seeks short-term, long-term LNG from 2025
Korea's Kogas seeks short-term, long-term LNG from 2025
Singapore, 10 May (Argus) — South Korea's major importer Kogas is seeking short-term and long-term LNG through two separate tenders. The firm is seeking at least 700,000 t/yr of LNG for delivery over 2025-27, through a tender that will close on 3 June. Offers can be linked to a northeast Asian spot LNG price, Brent or Henry Hub. Kogas is also separately seeking 700,000 t/yr, 1.4mn t/yr or 2.1mn t/yr of LNG over a duration of 7-15 years, starting from 2027 or 2028. The firm is seeking offers on a fob or des basis, although it has specified a minimum vessel size of 135,000m³ for fob offers. Offers can be linked to either Brent or Henry Hub, and the deadline for submission is at 12am Korea time (3pm GMT) on 10 June. The firm's latest long-term requirement comes on the heels of another long-term agreement that it signed with BP just last month, for up to 9.8mn t of LNG over 11 years from mid-2026. This also comes after South Korea's trade, industry and energy ministry (Motie) announced on 2 May that Kogas will continue to seek new term import contracts for the super-chilled fuel, to stabilise prices and meet higher domestic gas demand. The renewed focus on securing term supply has come at an interesting time with spot LNG prices in a downward trend since late last year, right in the middle of the winter season when prices typically peak. The front half-month of the ANEA — the Argus assessment for spot LNG deliveries to northeast Asia — was last assessed at $10.165/mn Btu on 10 May, a drop of 40pc since prices peaked on 23 October 2023. More LNG importers are also seeking term volumes over 2025-27, which is widely deemed to be a period during which LNG supply could be tighter as it is just before the new US liquefaction capacity fully hits the market. Higher nuclear availability in South Korea over the upcoming northern hemisphere summer season could weigh on LNG demand over the season. The country may also further trim its LNG use in the years to come, as it increases its reliance on nuclear power generation. By Rou Urn Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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