Business & Markets
Bechtel Building First U.S.-Based Floating LNG Vessel
Bechtel was selected by Delfin LNG, a wholly owned subsidiary of Fairwood Peninsula Energy Corp., to perform front-end engineering and design for the first U.S.-based floating liquefied natural gas vessel (FLNGV) to go into service at Port Delfin. Port Delfin is a proposed deepwater port and floating LNG facility that will be located about 50 miles off the coast of Cameron Parish, LA. Upon the final investment decision, Bechtel is expected to design, build and commission the FLNGV. Plans call for Port Delfin to receive natural gas from the Delfin Offshore Pipeline.
World News: China and Russia Begin Work On Power of Serbia Pipeline
Russia’s Gazprom and China National Petroleum Corporation (CNPC) have confirmed that construction is underway on the 4,000-km Power of Serbia Pipeline that will deliver up to 38 Bcma of gas to China. The first joint of pipe for the Chinese sector of the project was recently welded near the city of Heibe in the northern Heilongjiang Province bordering Russia, according to CNPC. Russia started building its section of the 2,500-mile eastern route last year. The pipeline is due to become fully operational in late 2017.
Key Issues Taken on at Pipeline Conference
Pipeline & Gas Journal’s 11th annual Pipeline Opportunities Conference brought in 400 attendees from throughout North America, all focused on getting the most up-to-date information regarding the oil and natural gas industry. In addition to a full day’s worth of conference presentations and roundtables, guests had ample time to network during the even held March 24 at the Royal Sonesta Hotel in Houston’s Galleria district.
Icahn takes 8.2% Stake in Cheniere Energy
NEW YORK (AP) — Billionaire investor Carl Icahn is taking an 8.2% stake in liquid natural gas company Cheniere Energy Inc., sending its shares higher Thursday in aftermarket trading. Icahn disclosed ownership of 19.4 million shares of Cheniere, which owns a liquid natural gas terminal and pipeline in Louisiana. Icahn's funds say they want to start talks with the company about its business, financing of capital spending and executive compensation, and Icahn may seek representation on the board of directors. Cheniere Energy did not immediately respond to a request for comment.
P&GJs Midyear International Pipeline Report
<em>P&GJ’s</em> 2015 international pipeline survey indicates 70,308 miles of pipeline are in various stages of construction or planned. Of these, 32,013 miles account for projects in the planning and engineering phase, while 38,295 miles are in various stages of construction.
Fire Sale on Stuff that Burns: Oil, Natural Gas, Coal Down
NEW YORK — These days it seems whatever can be burned to power a car, heat a home, make electricity or ship people and goods around the globe is being sold at bargain basement prices. Prices for coal, natural gas, oil and the fuels made from crude such as gasoline and diesel are all far less expensive than they have been in recent years.
New Ethane Blending Facility Provides Flexibility for Natural Gas vs. Ethane Spreads
Enterprise Product Partners’ recently opened Ethane Blending Facility in Natchitoches, LA provides an unprecedented option for U.S. Northeast ethane rejection by blending ethane moved on the company’s 125,000 bpd ATEX pipeline into the U.S. Gulf Coast natural gas stream.
What's in Store for Halliburton-Baker Hughes Tie-Up?
Perhaps the biggest single change for the oil business since the start of the slump is Halliburton’s deal to buy Baker Hughes. The mega-merger would radically alter the oil field servicing industry leaving two giants competing and a couple of smaller firms vying to take BHI’s spot as the new number three.
Wood Group Awarded FEED Contract for Australia FLNG Development
Wood Group secured a contract to carry out front-end engineering and design (FEED) for the Woodside-operated Browse Floating Liquefied Natural Gas (FLNG) Development, offshore Western Australia. Wood Group Kenny (WGK) will perform all design engineering for the insulated production flowline system required for the asset’s offshore gas-condensate fields - Brecknock, Calliance and Torosa – located 300 km from the Kimberly coast. The 12-month contract, which is valued at US$6 million and effective immediately, will be delivered from WGK’s Perth office.
World News: Report Outlines Climate Framework, Spending
Development of a clear climate framework and a global emissions target is essential if $48-53 trillion for a new sustainable energy infrastructure is to be delivered, according to a new report from the World Energy Council. The findings are discussed in the fifth edition of the energy leaders’ dialogue series, the World Energy Trilemma Report, ‘Priority actions on climate change and how to balance the energy trilemma,’ released by the World Energy Council and project partner Oliver Wyman, along with the Global Risk Centre of its parent Marsh & McLennan Companies.
Offshore News: McDermott Awarded 12 Jacket Order for Saudi Fields
McDermott International, Inc. was awarded a large brownfield contract by Saudi Aramco for the engineering, procurement, construction and installation (EPCI) of twelve jackets for offshore oil and gas fields in Saudi Arabian waters. Engineering and procurement is expected to be performed by McDermott’s teams in Dubai, and Al Khobar, Saudi Arabia. The jackets are scheduled for fabrication by McDermott’s Dubai, U.A.E.-based fabrication facility.
EIA: Annual Energy Outlook Through 2040
The latest <em>Annual Energy Outlook 2015 (AEO2015)</em> prepared by the federal Energy Information Administration (EIA) presents long-term annual projections of energy supply, demand and prices through 2040. This analysis focuses on six scenarios: a reference case, low and high economic growth cases, low and high oil price cases, and the high oil and gas resource case.
Not Deterred By Huge Risks, Shell Opts For Megaprojects
U.S. shale has offered the oil industry a business model that is different from conventional drilling of the past. High initial decline rates, especially compared to conventional wells, requires companies to continuously drill to keep up production. But with lower upfront costs and shorter ramp up times, shale drilling is arguably less risky than a multibillion-dollar megaproject that the oil majors had become accustomed to over the past decade.
Carbon Emission Regulations Could Jeopardize LNG Projects
Natural gas is increasingly being viewed as one of the most important sources of fuel in the coming decades. That is why Royal Dutch Shell, an oil major, made a huge bet onLNG when it decided to purchase BG Group, which has major holdings in LNG projects in Australia and East Africa.
Tall Oak Midstream Expands Service in Oklahomas STACK Play
Tall Oak Midstream, LLC is constructing an oil gathering, storage and transportation system to serve producers in Oklahoma’s Sooner Trend (STACK) play. Tall Oak is already gathering and processing natural gas on its STACK system for multiple customers. Anchored by a long-term agreement with Felix Energy, LLC, the system will connect to multiple downstream pipelines that provide direct access to the market center at Cushing, OK. Tall Oak expects to bring the system into service later this year.
EIA: Annual Energy Outlook Through 2040
The latest Annual Energy Outlook 2015 (AEO2015) prepared by the federal Energy Information Administration (EIA) presents long-term annual projections of energy supply, demand and prices through 2040. This analysis focuses on six scenarios: a reference case, low and high economic growth cases, low and high oil price cases, and the high oil and gas resource case.
Kinder Morgan Units File for LNG Liquification Project
Gulf LNG Liquefaction Company (GLLC) and Gulf LNG Energy (GLE) on Monday collectively filed an application with FERC for construction and operation of a new liquefaction and export facilities at GLE’s existing regasification terminal, located in Jackson County, MS. Additionally, Gulf LNG Pipeline (GLP) notified FERC minor modifications will be made to the existing pipeline facilities that interconnect with the terminal under GLP’s blanket authorization from the FERC. The applicants requested that FERC grant approvals no later than June 17, 2016.
Ethanol Production May Be Approaching 'Blend Wall'
It’s onward and stubbornly upward for the U.S. ethanol industry, which shows little sign of slowing after a record year in 2014. Weekly ethanol production matched its record high in the first week of June, equaling output from the week ending December 19, 2014. At 992,000 bpd, production is up 20,000 bpd from last week and more than 100,000 bpd since the beginning of May.
Natural Gas Glut Could Persist Short-Term
Oil is not the only energy source that is seeing a glut. Growing supplies of natural gas could soon result in a similar phenomenon. It was only a year and a half ago that the United States, and the northeast in particular, saw supplies dwindle to exceptionally low levels, forcing prices to temporarily spike. The Northeast experienced a freezing winter, leading to high levels of consumption as millions of people tried to keep warm. Natural gas storage levels plummeted to lows not seen in years.
Venture Global Moves Ahead with Liquefaction-Export Facility
Venture Global LNG has hired two manufacturing and engineering companies for its Calcasieu Pass Project in Cameron Parish, LA. Chart Energy & Chemicals will provide midscale modular technology and Tecnicas Reunidas will handle engineering design for the gas liquefaction and export facility project. Chart will provide its IPSMR liquefaction technology and proprietary equipment. Tecnicas Reunidas’ will design a multitrain liquefaction plant with 10 MMtpa LNG capacity, two full containment LNG tanks, a 600-MW combined-cycle power plant and marine facilities.
Natural Gas To Challenge Oils Monopoly as Transportation Fuel, IHS Study Says
A new study by business information provider IHS forecasts significant growth and value in the market for natural gas and LNG as a transportation fuel. The study, <em>LNG in Transportation: Challenging Oil’s Grip</em> showed that use of natural gas as a transportation fuel could displace more than 1.5 MMbpd of oil demand by 2030. A combination of drivers — environmental, technological and commercial — will lead to greater adoption of natural gas in transport, the study said. The highest level of adoption will be in high-fuel-consuming applications such as trucks and ships.
Dresser-Rands LNGo System Wins Award
Dresser-Rand, a global supplier of rotating equipment solutions to the oil, gas, petrochemical, power and process industries, was honored with the 2015 Gulf Coast Oil & Gas “New Technology Development of the Year” Award for its LNGo™ natural gas conversion system.
In The News: Obama Gives Final Approval to Cove Point LNG Terminal
The Obama administration on May 7 granted final approval to a $3.8 billion natural gas export facility in Calvert County, MD – the first gas export site on the East Coast. Environmentalists sued within hours to stop the project.
Prepare Now for Uncertain LNG Future
Natural gas trade in the Asia is growing 5.6% per year, and while the region is currently dominated by LNG, pipeline natural gas is set to grow at a CAGR of 23% between 2012 and 2020. Moreover, a new wave of LNG is expected from Australia and the United States, depending on how factors such as Asian demand, oil prices, and North American and Australia exports play out.
Design, Siting Considerations for LNG Facilities
With the increase of natural gas production throughout the United States, the LNG market is growing at a rapid pace. Due to that growth, there has been a significant increase in development of small-scale, mid-scale, and large-scale LNG facilities, as well as expansion opportunities of existing facilities. Proper design of a facility concept will start with the application of good engineering practices and relevant design standards followed by a preliminary siting and feasibility study to determine whether a particular parcel of land is appropriate for the proposed project.
Wood Mackenzie: Oil Market Concerns Inescapable in 2015
Global consulting company Wood Mackenzie has drawn on the knowledge and expertise of senior analysts in compiling a new report, Horizons: What To Look For In 2015. In discussing the report, Paul McConnell, principal analyst for Global Trends at Wood Mackenzie, pointed out that oil market concerns will be inescapable in 2015. “With no sign that OPEC is reconsidering its decision to leave production targets unchanged, the impetus falls on non-OPEC producers to limit supply growth and bring the market back into balance,” he said.
Latest Price Shock Offers Some Midstream Bright Spots
The price of oil may have fallen to its lowest level in six years, but this “price shock” is different than the 2008-’09 variety, according to analysts at Pace Global. “The current low-price situation is likely to persist for several years unless geopolitical events shift the market psychology from one of surplus to one of shortage,” Jim Diemer, vice president and head Pace Global-Siemens’ Energy Consulting Company, told PG&J.
GE Lands 20-Year Contract For LNG Trains
GE and Sabine Pass Liquefaction, a subsidiary of Cheniere Energy Partners, L.P., have entered into a $1 billion, 20+-year contract in GE will provide spare parts and planned inspections, maintenance services and round-the-clock technical support for the gas turbines and refrigerant compressors on the first four LNG trains under construction at the Sabine Pass LNG export facility in Cameron Parish, LA.
Creative Responses To Provide Natural Gas
With the continuing expansion of natural gas development in shale plays across the nation, pipeline infrastructure continues to be built out, with product making the trek from source points to downstream consumers. However, not every end-user has access to affordable natural gas yet.
Pipeline & Gas Journals 2015 Worldwide Construction Report
<em>P&GJ</em>’s 2015 survey figures indicate 100,114 miles of pipelines are planned and under construction worldwide. Of these, 57,201 represent projects in the planning design phase while 42,913 reflect pipelines in various stages of construction.
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Boardwalk Approves 110-Mile, 1.16 Bcf/d Mississippi Kosci Junction Pipeline Project
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Enbridge Should Rethink Old, Troubled Line 5 Pipeline, IEEFA Says
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Polish Pipeline Operator Offers Firm Capacity to Transport Gas to Ukraine in 2025
