On 30 November we were pleased to have the opportunity of participating in a panel discussion on the subject “Making LNG Projects Happen: How is the industry innovating?” The event was the CWC LNG Summit 2017 in Lisbon.
With the exception of a brief 2 month period in Winter 2016/17, Asian spot LNG prices have been below average long-term Japanese LNG contract prices for a period of three and a half years. This is quite a significant statistic. There is the brief disclaimer that throughout this blog average long-term Japanese LNG contracts have been used as a benchmark for Asian long-term contracts and Reuters Eikon Asian spot price for spot prices. There are of course other benchmarks that can be used.
The North Sea has recently been attracting significant renewed interest, leading to an influx of investment from private equity (PE) backed oil and gas companies. The level of interest in the North Sea is perhaps surprising given the maturity of the basin, the “low oil price environment” and the liabilities related to decommissioning that new investors may have to take on.
Until recently, if you had thought of things for which Jamaica is famous, your list would probably have included Bob Marley, coffee, rum and Usain Bolt. Now, in the gas industry at least, you can add innovation in LNG imports to that list.
Members of the Gas Strategies team have just returned from hosting a 4 day workshop in Kingston, Jamaica on the gas, LNG and LNG-to-power business – as part of which the team made a 400km round trip from Kingston to Montego Bay to see the LNG terminal and gas-fired power plant up close and personal.
There was a fair amount of moral indignation expressed by the gas industry at Australia’s Prime Minister Malcolm Turnbull’s announcement on 26th April that he would bring LNG export controls into place to ensure security of gas supply to the domestic market – a move which he said would also “halve” domestic gas prices. The move was condemned as a desperate populist shot from an unpopular administration and quickly compared to similar protectionist rhetoric emanating from the Trump White House.
The East Mediterranean Gas Pipeline is, without a doubt, an impressive project. The plan is for it to connect Israel, Cyprus and Crete with mainland Greece, where the IGI interconnector will link it to Italy. With compression on Cyprus and Crete, it will also have the ability to add to or offtake gas along the way.
But export of gas from the Eastern Mediterranean is a particularly thorny area.
Mexico endured a volatile start to 2017. Incendiary rhetoric emanating from Donald Trump’s White House about the building of walls and imposition of punitive import tariffs combined with the Gasolinazo demonstrations (against the rise in domestic petrol prices) to create a deep sense of unease within the country.
In his 1904 poem, “Waiting for the Barbarians”, the Greek poet Constantine P Cavafy imagined a day in an ancient city where life has ground to a halt as it anticipates the arrival of a barbarian horde. The poem is an exchange between two of its citizens.
“Why isn’t anything happening in the senate? Why do the senators sit there without legislating?” asks one of the duo.
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