June 27 – Houston-based KBR has won a project management consultancy services contract from Oman LNG for a new gas engine power plant. The 120 MW plant is meant to reduce fuel gas consumption and emissions while maintaining liquefaction processes at Oman LNG's existing export facility in Sur.
Nearly two-thirds of oil and gas sector leaders, surveyed by the Norwegian classification society DNV GL, plant to boost spending on gas projects in 2018, with gas expected to overtake oil as the world’s primary energy source in the mid-2030s. Thereafter, the energy transition will enter its final phase-out of fossil fuels, with hydrogen and renewables set to gain momentum.
The Australian Energy Market Operator (AEMO) no longer warns of an imminent gas shortage in southern and eastern Australia after government pressure has made LNG exporters commit to divert some cargoes to the local market. "No supply gaps are forecast before 2030,” AEMO said when releasing its annual gas outlook – a stark contrast to the body’s earlier concerns about shortages starting from mid-2018.
Global gas trade expanded last year by 63 billion cubic metres, or 6.2%, with growth in LNG outpacing growth in pipeline trading, according to the latest BP Statistical Review of World Energy. The apparent absence of a glut shows, according to analysts, that any surplus LNG resulted in bouts of unsustainably low prices rather than a build-up of idle capacity.
Strikingly, China has excluded LNG from a list of additional tariffs to be levied on U.S. imports despite the nascent trade war between the two super powers. Beijing’s move shows “LNG is clearly seen as an essential good," and in the event of an escalation Wood Mackenzie expects LNG to remain outside the bounds of any additional tariffs.
Spain’s Gas Natural Fenosa (GNF) has renewed a natural gas supply contract with the Algerian incumbent Sonatrach until 2030. Price or volume details were not disclosed, but GNF stressed the deal guaranteed a stable cost structure for more than 40% of Spain’s overall gas procurement.
June 18 – Oman LNG is seeking to develop a new gas engine-driven power plant at its Qalhat facilities. MAN Diesel and Turbo will deliver the gas engines and associated equipment, while KBR will manage the project execution, supply the generators and ensure safety requirements.
Chart Industries has named Jillian C. Evanko as chief executive and president to replace incumbent William C. Johnson. The U.S. LNG equipment-maker reiterated its full-year 2018 guidance of $1.15 billion to $1.20 billion of revenue.
Dry natural gas production in the United States is about to reach a fresh record of 81 Bcf per day, spurring LNG export growth and pushing down prices this year. According to the U.S. Energy Agency (EIA), Henry Hub prices are forecast to average $2.99/MMBtu for the full year 2018, but notch up to $3.08/MMBtu in 2019.
Australia’s biggest gas pipeline company, APA Group, has allowed CKI of Hong Kong access its books after the Chinese consortium made a A$13 billion (US$9.8bn) takeover bid. The suitor will, however, have to win over regulators on Canberra who view the massive offer with some critical restraint.