RBN Energy, LLC’s Post

A handful of U.S. midstreamers are striving to build an offshore export buoy in the Gulf of Mexico that would be able to fully load a Very Large Crude Carrier. If successful, they could facilitate a new wave of crude oil export flows and dynamics, something the oil industry is eying intently. In today’s blog, we look at the latest on two export projects — Phillips 66 and Trafigura's Bluewater Texas Terminal and Sentinel Midstream’s Texas GulfLink. https://lnkd.in/dgxkyhuQ

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet fell for the third week in a row, and are now at levels 65 percent below the rates seen at this time last year, according to Spark Commodities.

Spot charter rates for the global liquefied natural gas (#LNG) carrier fleet fell for the third week in a row, and are now at levels 65 percent below the rates seen at this time last year, according to Spark Commodities. #lngprime

Predicted that a record-breaking 14.9m cbm of liquefied natural gas carrier capacity will be handed over from shipyards this year, more than double the 10-year average. This represents a 48% increase from the previous record of 10.1m cbm delivered last year. In addition, a total of 29.4m cbm, or 26% of the fleet, will be added this year and in 2025. The market outlook is uncertain, demonstrated by the recent fall in one-year time charter rates. Despite this, South Korean owners are set to add 27 ships to their fleet this year, Greek companies will take 14, and Japanese groups 12. Source: [TradeWinds News](https://lnkd.in/gmeYRSrW)

Eric Y. Cindy Yeo and I write about how LNG contracting might be shifting to a buyer's market again, pushing for greater destination flexibility and shorter tenures. Uncertainties over buyers' speed of decarbonization of their portfolios could make it difficult to commit to traditional 20-year term contracts and inflexible volumes. The piece also explores the increasing importance of the role of the spot LNG market. "The spot market has continued to take market share and that trend will continue. Liquidity will continue to increase, transparency will continue to increase and we'll end up with a spot price that can be hedged in the same way as Brent crude oil, gasoline or diesel," said Richard Holtum, global head of gas and power at Trafigura, in a recent interview. #lng #jkm #nwe https://lnkd.in/gS9dBNna.

FERC Meeting Sees Port Arthur Expansion Approved After Lengthy Delay: NYMEX natural gas futures are trading up slightly, having risen $0.02 from yesterday’s close to the currently traded price of $2.63/MMBtu. FERC yesterday finally approved a proposal by Sempra Energy to double their Port Arthur LNG terminal’s capacity an additional 13.5 mpta. The developer is aiming for a final investment decision in July 2024. FERC commissioners also agreed to hear orders once more for the Rio Grande and Texas LNG projects in next week’s meeting. The organization is feeling pressure from protestors who say the projects are ultimately against the public interest as they cause gas prices to increase. Shareholders of Magellan Midstream have approved a massive $18.8 billion merger with ONEOK Inc. Earlier worries that the deal might not go through after a top shareholder had voiced disapproval in June appear to have been largely handled; reportedly, 96% of votes were in favor of the deal. Under the merger, Magellan will be a wholly owned subsidiary of the larger company. The deal makes ONEOK one of the largest of any oil and/or gas pipeline company in North America. Oil Markets Weigh Effects of Russian Export Ban and Macroeconomic Outlook: Crude has drifted higher this morning by $0.76 to $90.39/bbl after yesterday’s low, and is now seeing some volatility this morning, having dropped $1.00 from today’s high in just under an hour. Competing with the less-than-ideal outlook for the larger economy amid the Federal Reserve’s decision to hike rates at least once more is an announcement by Russia that exports of gasoline and diesel will be entirely banned indefinitely. Some geopolitical pundits have linked the move to the debilitating effects on the Russian economy that the stalling occupation of Ukraine is having as it consumes more of Russia’s resources, and its fuel supply in particular. This news has added to supply-risk fears in crude and is offsetting the effects of the Federal Reserve’s decision. #naturalgas #oilandgas #trading #hedging #nymex #henryhub #crude #oil #wti #lng #energy #gelber #gasindustry #gasprices #eia #storagereport #hedging #gas #commodities

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet continued to rise this week as the spot window moved further into winter, according to Spark Commodities.

SUEZ CANAL TRANSIT DUES INCREASE The Suez Canal Authorities have decided to increase the normal transit dues for all types of vessels transiting the Suez Canal by 15%, except for ‘Dry Bulk Vessels”, “General Cargo” and “RO/RO” the increase will be 5%. The circular (7/2023) shall be effective as of 15th January 2024. 15% increase on following vessels: - Crude oil Tankers - Petroleum tankers - Chemical Tankers & Other liquid bulk - Liquefied Petroleum Gas (LPG) - Liquefied Natural Gas (LPG) - Containerships - Vehicle Carriers - Special Floating Units 5% increase on following vessels: - Dry Bulk Carriers - General Cargo - Roll-on/Roll-off (RO/RO) - Other Vessels Containership directly coming from port at “North-West Europe” and directly heading to ports at “Far East” are exempted from above increase as per stipulated in circular 8/2023. Cir. 7/2023: https://lnkd.in/gJ4rn7uU

LNG Sellers Note Gap With Buyers on Contract Terms By ICIS Editorial LONDON (ICIS)--Anatol Feygin, EVP & COO of US Cheniere, said that the needs of LNG producers and end-users continue to diverge with buyers pushing for shorter contracts and more flexibility. UK’s BP and Middle East producer ADNOC have also noted this change in customers’ demand. “We are now increasingly seeing people that want to have much more flexibility,” Jonty Shepard, VP LNG Trading and Origination at BP, said. “I think that needs to be catered for,” Rashid Al Mazrouei, SVP Marketing at ADNOC Gas, added. The words come after a heavy slate of long-term contracts signed between 2021 and early 2023, especially with US LNG developers. That market has since slowed. The mismatch between supplier and buyer time horizons for long-term contracts, with especially European companies preferring shorter contracts, could make importers more reliant on spot LNG imports. The share of flexible LNG in Europe’s gas supply mix is set to increase to more than 70% by 2030 if expiring contracts are not renewed and no new contracts are signed, ICIS reported on 4 October. This development is driven by a host of reasons, including waiting for prices to be pushed down further as a wave of new LNG supply is set to hit the market from the middle of this decade. The forward ICIS curve reflects this expectation with 2026 and 2027 markets priced well below 2023. The focus on long-term contracts has switched to supplier Qatar in recent months with shareholders in the production expansion lining up associated long-term contracts that stretch to beyond 2050. While some of these have European destination, they also have flexible terms, needed to accommodate the uncertainty of Europe’s gas and LNG demand. Shepard also pointed out that there are buyers who have been willing to pay higher prices. “For instance, we have seen (oil) slopes in Asia increase from around 10% to 13%,” he said, adding that how high prices customers can stomach “is the real question.” Shell’s Hill stressed that long-term contracts still are the foundation of ensuring security of supply, reminding delegates of the surging LNG prices on the back of the Russian invasion of Ukraine. “Asian buyers were impacted little because of the long position and long-term contracts, while European buyers were impacted much more,” he said. #lngindustry #lng #lngshipping #gas #shippingindustry