Cygnus Energy LNG News Weekly 16th April 2021

LNG NEWS WEEKLY DATE 16th APRIL 2021
FLEX LNG CHARTERS FOUR LNG CARRIERS TO CHENIERE

John Fredriksen’s Flex LNG has entered into agreements to charter four LNG carriers to Cheniere Marketing International, with
an option for a fifth LNG carrier. The charters are for between three years and three and a half years, with options to extend
by two years. Flex LNG will deliver newbuild Flex Vigilant to Cheniere in May 2021, two of its existing LNG carriers to Cheniere
during the third quarter of 2021, and a further LNG carrier during the third quarter of 2022. Cheniere has the option to add a
fifth LNG carrier during the third quarter of 2022. Øystein Kalleklev, CEO of Flex LNG Management, commented: “The
agreements secure attractive employment for four, possibly five, of our ships with a first-class charterer. Our large and energy
efficient ships are particularly well suited for their long-haul trade and align with Cheniere’s efforts to secure required shipping
capacity while improving the environmental performance of their overall fleet.” Flex LNG has a fleet of 13 LNG carriers. source :
www.splash247.com
Sandp@cygnus-energy.com Gas@cygnus-energy.com
(Sale and Purchase) (Gas projects)
RIO GRANDE LNG PROJECT TAPS INTO MITSUBISHI HEAVY CO2
CAPTURE TECH
US LNG project developer NextDecade and Mitsubishi Heavy Industries America, part of Mitsubishi Heavy Industries (MHI),
have signed an engineering services agreement for the MHI’s CO2 capture technology, known as the KM CDR Process, to be
applied at NextDecade’s Rio Grande LNG project in the Port of Brownsville, Texas. One of the largest carbon capture and
storage projects in North America is expected to enable the capture and permanent geologic storage of more than 5m tonnes
of CO2 per year. “We are pleased to have executed an ESA with MHI Group, a widely recognised leader in commercial-scale
carbon capture technology,” said Matt Schatzman, NextDecade’s chairman and CEO. “MHI Group’s carbon capture solution is
an ideal complement to NextDecade’s proprietary processes. We look forward to working with MHI Group on the CCS project
at Rio Grande LNG, which we expect to be the greenest LNG project in the world.” “We are proud to work with NextDecade
on this world leading project,” said Yoshihiro Shiraiwa, Mitsubishi Heavy Industries America’s president and CEO. “This will be
the world’s first application of post-combustion capture for LNG, and we expect this initiative will contribute to realising carbon
neutrality in the years ahead. MHI Group is committed to being an innovative solution provider as the energy industry transitions
to lower carbon options. We will work diligently with NextDecade to bring this project to fruition.” MHI Group has deployed 13
carbon capture systems around the world, including the world’s largest post-combustion carbon capture facility that is
comparable in size to the first phase of the carbon capture project at Rio Grande LNG. source : www.splash247.com
AVENIR LNG ‘TURNS THE CORNER’ AS CHARTERERS QUEUE UP

Avenir LNG has plenty of opportunities for its new small-scale LNG carriers, according to chairman Niels Stolt-Nielsen. The
Stolt-Nielsen chief executive told analysts on a conference call he is “very excited” about the joint venture’s prospects. “We
really have turned the corner,” he added. The company, owned by Stolt-Nielsen, Golar LNG and Hoegh LNG, has two new
LNG carriers already chartered out. And charterers are queuing up for the next three of four in the series from Nantong CIMC
Sinopacific & Engineering Co in China in the second half of 2021.“Because of the timing of these ships that we have on order,
we are looking at 10 chartering opportunities against three of the ships that we have opened,” Stolt-Nielsen said. “So there
are a lot of opportunities that are coming our way.” Two of the remaining four vessels are of 7,500 cbm and the other two are
of 20,000 cbm. Stolt-Nielsen explained that the charters will finance the development of the LNG supply projects that the
company is working on. There are six of these integrated projects under consideration, two of which are on fast track, he
added. “We don’t want to be a shipping company. We want to be a supplier of LNG,” he said. “We have two that are on fast-
track right now where we actually will source, we will ship, we will store and we will sell LNG, which is very exciting.” He said
the company is generating Ebitda “at favourable terms”. source : www.tradewindsnews.com
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LNG CAN CUT GREENHOUSE GAS FUEL EMISSIONS BY UP TO 23%,
STUDY SHOWS
Independent commissioned research says by 2030 methane slip will have been ‘virtually eliminated’. Using LNG as a marine
fuel can cut greenhouse gas emissions by up to 23% on a well-to-wake basis compared to current oil-based alternatives,
according to a new independent study commissioned by industry coalition SEA-LNG and industry body the Society for Gas as
a Marine Fuel (SGMF). The research, which was conducted by Sphera – formerly thinkstep, the company that conducted a
similar study for the two organisations in 2019, - concluded that this rises to 30% when measured on a tank-to-wake basis.
The 2nd Lifecycle GHG Emission Study on the use of LNG as a Marine Fuel” used the current available engine and supply
chain data provided by members of the two bodies to update the earlier study. It was also reviewed again by a panel of
independent academics from institutions in France, Germany, Japan and the USA.
Busting methane myths

Methane emissions from the supply chains and methane released during the onboard combustion process – often referred to
as methane slip - have been included in the analysis. The study says the methane slip from high-pressure two-stroke slow-
speed diesel engine is virtually zero. It says low-pressure two-stroke slow-speed Otto cycle engines ordered today offer a
50% reduction in methane slip and describes the outlook for four-stroke medium-speed engines as "also promising". "By 2030
engine manufacturers forecast that all LNG-fuelled engine technologies will have minimal levels of methane slip," the study
said. SEA-LNG Chairman Peter Keller said: “Often based on outdated data, methane slip has become an overused argument
for those wishing to justify inaction. “The Sphera study underlines the advances being made to counteract this concern. Its
analysis provides independent confirmation that, by 2030, methane slip will have been virtually eliminated as technological
improvements continue.”
Accelerated uptake
SGMF chairman Samir Bailouni from Nakilat said: “It is important the industry has the best information to make often complex
choices between fuels.” Bailouni said the study provides authoritative, high-quality data on well-to-wake emissions for LNG
which provide information to the IMO for its regulatory decisions. He said SGMF will continue to give data for all candidate
gaseous fuels under its remit, including ammonia and hydrogen. “Today, the clear choice for an immediate and significant
reduction in emissions is LNG,” Bailouni said, adding that SGMF expects the take-up of it as a fuel for deep sea shipping to
accelerate “even as the more challenging horizon fuels are brought safely and sustainably into the mix.” Keller said: “The facts
consistently confirm that there is no deep-sea alternative fuel in the short to medium term other than LNG." He said: "LNG
remains the clear starting point for a carbon-neutral future for shipping, especially as the pathway forward includes bio and
synthetic products. Waiting is not an option.” source: www.tradewindsnews.com
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”UNACCEPTABLE” NOT TO CHOOSE LNG FOR NEWBUILDINGS, SHELL
SAYS
LNG as a fuel offers the best choice for newbuildings today, according to AET, International Seaways, NYK Line, Shell and
Wartsila. Shell manager of downstream LNG Tahir Faruqui told Capital Link's Decarbonisation in Shipping online forum today
that even with methane slip factored in, LNG offers a 21% to 25% improvement in emissions. He said that while it costs more
to build a dual-fuelled ship, LNG as a fuel is cheaper, so over the lifetime of the asset the economics make sense.
Faruqui said that for people and the planet it is “absolutely unacceptable” not to choose LNG for building a new vessel. He
acknowledged, however, that it does not work for existing ships and is not a zero- footprint fuel. Faruqui described LNG as a
“no-brainer” and a “zero-risk investment choice” because regulators will eventually penalise ship's CO2 footprints. “It baffles
me that the world is still not moving to LNG,” he said. International Seaways chief executive Lois Zabrocky said her company
is in the early days of its dual-fuel project to build three VLCCs for charter to Shell. But she said these vessels, which deliver
in 2023, will be 40% more efficient than a 10-year-old VLCC in today’s global 800-ship fleet. She described this as “a step
change” on her company’s road to decarbonisation. AET global director for business development & joint venture management
Peter Liew said his company has four LNG dual-fuelled vessels in operation and five more under construction. “We believe in
LNG," he said. We can continue to wait for the perfect fuel but when will it be available? As owners, we feel we have the
obligation to act."
NYK Group Europe president & chief executive Svein Steimler said that throughout history many shipping players have simply
acted too late. Steimler said he is “baffled” as well that people are not “getting on the LNG bandwagon” when other technologies
like ammonia and hydrogen are not fully developed. “Why don’t we grab what we can take today and then move on to other
areas when the time is right? he asked.” NYK is planning to build another 50 vessels with LNG dual-fuel propulsion and will
add battery technology, Steimler said.“We need to do something. If you stand still in today’s world you simply move backwards.”
Farid Trad, CMA CGM vice president for bunkering & energy transition, said his company will have 32 LNG-fuelled vessels in
operation by 2022. LNG offers the most balanced choice today for the environment, health, economic viability and operational
efficiency, Trad said. There are also next steps for LNG in biomethane, bio-LNG and synthetic-LNG, he added. Wartsila
director of fuel and gas supply systems Mathias Jansson said the LNG and dual-fuel platform with the fuel system correctly
designed is perfect for blending in bio and synthetic LNG and then moving into other alternative fuels. According to Faruqui,
there is a need for LNG capability in 15 to 30 ports to supply the deep-sea fleet. Over the next two years, Shell plans to
double its investment in LNG infrastructure, he added. The energy major is also looking at demand for bio-LNG from the
marine sector, he said. source : www.tradewindsnews.com
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LARGEST AMERICAN LNG BUNKER VESSEL ADVANCES SMALL-SCALE
EXPANSION
America’s third and largest LNG bunker vessel yet will enter service by the end of 2021, joining a growing LNG bunkering
infrastructure in the US, underpinning the expanding global and US LNG-fuelled fleet. Based on an articulated tug barge (ATB)
unit design, Clean Canaveral is being built at Fincantieri Bay Shipbuilding in Sturgeon Bay, Wisconsin for Polaris New Energy
(PNE). Plans call for PNE to operate the vessel supplying LNG as fuel to vessels on the US east coast for NorthStar Midstream,
owner of Polaris New Energy.A veteran of the US tug and barge market, Northstar Midstream senior vice president Tim Casey
is responsible for overseeing PNE and NorthStar Midstream’s partnership with Berkshire Hathaway in JAX LNG, a small-scale
LNG facility in Jacksonville, Florida. Sourcing LNG at JAX LNG, PNE intends to use Clean Canaveral to deliver LNG north
and south from Jacksonville to ports like Port Canaveral, Miami, and to other ports up the Atlantic coast. Speaking at Riviera
Maritime Media’s LNG Bunkering & Refuelling, Americas virtual conference, Mr Casey described some of the earliest beginnings
of the US LNG bunkering market, and NorthStar Midstream’s strategy for supporting its development. “LNG is the future fuel
for the shipping industry to reduce greenhouse gases and will become the long-term fuel as new sources of renewable natural
gas are developed. JAX LNG was initially completed in 2019, and the initial phase was built specifically to service the LNG
bunkering industry in Jacksonville, Florida,” said Mr Casey. JAX LNG has a liquefaction capacity of 450,000 litres a day, with
storage for 7.6M litres. The facility has a marine loading dock and two LNG tanker truck-loading bays. LNG production will
grow at the small-scale facility, said Mr Casey, under a current second phase of expansion, increasing liquefaction capacity
by an additional 900,000 litres a day, while adding 7.6M litres of storage for a total capacity of up to 1.4M litres a day and
storage up to 15.2M litres. A planned third phase would push total production capacity up to 2.3M litres a day.
LNG bunkering experience

Clean Canaveral is not NorthStar Midstream’s first foray into LNG bunkering. NorthStar Midstream had a hand in the first US
LNG bunker barge, Mr Casey explained. “We originally designed Clean Jacksonville in 2015, starting the construction process,
and then sold that construction to TOTE Maritime to support their need to bunker their Marlin-class ships in Jacksonville,
Florida,” said Mr Casey. Under an agreement with TOTE, NorthStar Midstream was able to retain marketing rights for Clean
Jacksonville, explained Mr Casey. This allowed JAX LNG and TOTE Services to complete their first ship-to-ship LNG bunkering
of a foreign-flagged vessel at the Jacksonville Port Authority (JAXPORT). Crews loaded 1,800 m3 of LNG fuel from Clean
Jacksonville to the dual-fuel, Liberia-flagged vehicle carrier Siem Confucius at JAXPORT’s Blount Island Marine Terminal. Mr
Casey said JAX LNG provides the LNG and berth to load Clean Jacksonville in Jacksonville, where the vessel “has made over
130 deliveries to the TOTE ships since it started operating in 2019.” This reliable service has “probably the most (LNG) bunker
deliveries of any vessel in the world,” he added. As for Clean Canaveral, the ocean barge is designed by Vard Marine, with
an overall length of 104 m, beam of 20 m, depth of 9.9 m and four 1,350-m3 IMO Type C tanks for a total capacity of 5,400
m3. The cylindrical tanks, built in Qidong, China at CIMC Sinopacific Offshore & Engineering, were supplied by Wärtsilä Gas
Solutions. The four cargo tanks, fitted with 300-mm insulation, were installed by the shipyard below deck on the bunkering
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barge; only the domes will be visible once completed. Besides the tanks, the full Wärtsilä scope for this covers the system
design and integration, the LNG pumps, a ship-to-ship transfer system, ship-to-shore communications link, all necessary
safety and control equipment, valves, instrumentation, and a gas combustion unit. One interesting aspect of the ABS-classed
barge is that it will operate as an unmanned unit, and the essential systems and equipment will be controlled and monitored
from a remote control and monitoring station (RCMS) on the ocean tug by both hard wired and wireless connections, in
compliance with classification requirements.
Ocean tug under construction

While Fincantieri Bay Shipbuilding is building the ocean tank barge, Master Boat Builders, Alabama, is constructing the
associated 4,000-hp ocean tug for delivery in July. The tug will transit from Alabama to Sturgeon Bay, where it will pick up
the barge once it is delivered in November. The ATB vessel will sail to Jacksonville, where it will undergo testing before
beginning commercial operations by the end of 2021. Clean Canaveral is expected to serve the cruise ship sector but will be
available for spot LNG bunker deliveries. A JAK ATB coupling system will be used to connect the ocean tug in a notch of the
stern of the tank barge, forming the ATB vessel. Beacon Finland technical director Timo Rintala said the unit will be fitted with
a JAK 400PHL-L coupling system, which enables a tug to stay in the notch in the stern of a barge during loading or unloading
operations. “The JAK ATB coupling system is a pneumatically actuated, electrically controlled ATB connection system furnished
with a hydraulic interlock system and a lightering feature,” explained Mr Rintala. He said Beacon Finland has worked previously
with Master Boat Builders on the Cape Ann-class ATB tugs for Kirby Corporation. The ATB design has been extremely popular
in the US since the enactment of OPA 90, but Mr Rintala said Beacon Finland is currently working on ATB concepts in Europe.
“Beacon Finland is also developing a heavy-duty lightering system that will enable an ATB to load or unload a barge at sea.”
Besides Clean Canaveral and Q-LNG Transport’s recently commissioned Q-LNG 4000, additional LNG ATB bunker supply
vessels could be built for the US. PNE holds options for the construction of two additional LNG bunker vessels at Fincantieri
Bay Shipbuilding. Mr Casey notes there are multiple sources of LNG in the US on the east, Gulf and west coasts that could
provide supply for the global transition to cleaner energy, reducing greenhouse gas emissions and supporting decarbonisation.
“We’re focusing on being that last mile of transportation from the supply source to the shipping customer,” he concluded.
source : www.rivieramm.com
PETRONAS SELECTS SOUTH KOREAN OWNER AND YARD FOR

NEWBUILDS
Malaysian energy giant moves forward on LNG Canada shipping requirements. Energy giant Petronas has selected South
Korean shipowner Hyundai LNG Shipping Co to build the LNG carriers it requires to lift its planned volumes from the under-
construction liquefaction project LNG Canada. TradeWinds understands an order will be placed at Hyundai Heavy Industries
for up to three firm vessels, with options on a similar number of ships. The selection will allow Hyundai LNG to extend its
international reach. The company controls six older Moss-type vessels and two modern ME-GI ships and was seen last year
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shortlisted for Polskie Gor-n-ic-two Naftowe i Gazownictwo business to acquire chartered LNG tonnage. But the move signals
a departure for Petronas from business with its own in-house group shipping subsidiary, MISC. In 2019, MISC teamed up with
Japan’s NYK Line and Mitsubishi Corp to co-own two LNG carrier newbuildings for the LNG Canada project, separately from
Petronas’ 2020 enquiry for vessels. The choice also marks a win for South Korean shipbuilder HHI over its Chinese competitor
Hudong-Zhonghua Shipbuilding (Group). TradeWinds reported in January that the two had been battling it out for the business,
which was floated last year. At that time, Petronas asked for offers on up to six LNG carrier newbuildings for delivery dates in
2024.Market observers said the Malaysian company has taken its time in assessing the offers. They suggested that the
emergence of Qatar Petroleum’s tender to shipowners for a large raft of LNG tonnage, new business for Novatek and the filling
up of shipyard berths with containership orders may have galvanised the company into taking a decision on the vessels it
requires. Petronas controls a 25% stake in the 14-million-tonne-per-annum LNG Canada project in Kitimat, British Columbia.
The energy company has signed up to supply Vitol with 0.8 mtpa of LNG over a 15-year period with the bulk of volumes
coming from LNG Canada. The $30bn, Shell-led LNG Canada project has been set back by the Covid-19 pandemic. During
2020, construction work was slowed and the site shutdown at times due to coronavirus cases and, in February, Petronas
warned that these delays could affect its LNG sales. This month, LNG Canada chief executive Peter Zebedee told an
International Gas Union webinar that the project, which was sanctioned in 2018, is “on track” to produce its first cargo by the
middle of this decade.The project comprises two 7-mtpa liquefaction trains with cargoes from these targeted at markets in
Asia. There is potential to expand the development with an additional pair of trains. Shell holds a controlling 40% stake in
LNG Canada with Petronas on 25%, PetroChina and Mitsubishi Corp both owning 15% shareholdings and Kogas 5%. source :
www.tradewindsnews.com
LITHUANIA EYES FSRU PURCHASE FOR KLAIPĖDA LNG

This consultation is part of the FSRU procurement process, which aims to familiarize potential solution providers with the
forthcoming vessel acquisition tender planned for H2 2021. According to Lithuanian government law, KN must ensure the
operation of the LNG terminal until 2044. This law obliges KN to acquire and own the FSRU, upon choosing the most
economically advantageous solution by the end of 2024. The European Commission has approved, under EU state aid rules,
a Lithuanian measure to issue a state guarantee to secure a loan not exceeding €160M (US$190M) for KN to purchase the
FSRU. “Klaipėda LNG terminal consolidated the country’s energy independence, opened access to the global natural gas
market and served as a tool for natural gas price pressure in the region” said vice-minister of energy Inga Žilienė. “It is
important to ensure an alternative source of natural gas imports and to maintain energy security and independence. Trends in
natural gas consumption show that Klaipėda LNG terminal will play an important role in ensuring competitive, long-term and
secure LNG supply to Lithuania and the region, as well as developing small-scale LNG trade and transportation by sea and
road transport, and thus contributing to the goals of the green economy,” said Ms Žilienė. Klaipėda LNG terminal has been
operating since 2014. The 2014-built FSRU Independence is leased by KN from Höegh LNG for 10 years, with an option to
purchase. To implement the tasks assigned by the state, KN plans to start the procurement process of the FSRU in H2 2021.
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The best bid received during the procurement process will be compared to the current solution according to the established
cost-effectiveness criteria.Built by Hyundai Heavy Industries and fully capable of operating as an LNG carrier, Independence
is equipped with GTT Mark III membrane containment technology, with a cargo capacity of 170,132 m3. “Before announcing
the market consultation, we conducted a study with the help of external experts, during which we were able to define certain
technological and commercial frameworks for future procurement,” explained KN chief executive Darius Šilenskis. He said
based on the information gathered during the study, KN will be able to provide technical parameters for the FSRU, detailing
the existing infrastructure – jetty and gas pipeline and other important details – to provide full transparency during the
procurement process and encourage potential suppliers. After completing the FSRU procurement process, an additional
procurement for operations and maintenance services will be conducted. During the market consultation, indications for draft
procurement documents are expected from the market by 3 May 2021. Following the market consultation, the acquired
information will be analysed and a decision on the next steps in the vessel acquisition process will be taken, said KN. source :
www.rivieramm.com
INDIA’S FIRST FSRU ARRIVES FOR NEW LNG TERMINAL

H-Energy chief executive Darshan Hiranandani said, “This will be India’s first FSRU-based LNG regasification terminal, which
marks a new chapter in India’s mission for accelerated growth of LNG infrastructure. FSRU-based LNG terminals enhance the
pace of natural gas import capability in an environmentally friendly and efficient manner.” Added Mr Hiranandani, “We are
committed to the growth of the LNG market in India. We aim to contribute to the overall development of the natural gas value
chain, aligned with the Prime Minister’s vision of increasing the share of natural gas in India’s energy mix from 6% to 15% by
2030.” Under a 10-year charter from Hoegh LNG, the 2017-built FSRU Höegh Giant will undergo testing and commissioning
activities prior to the start of commercial operations at the LNG receiving terminal. Expectations are the terminal could be
commissioned this month.One of 10 FSRUs owned by Höegh LNG, Höegh Giant has storage capacity of 170,000 m3 and
installed regasification capacity of 750 million cubic feet per day (mcfd), which is equivalent to about 6M tonnes of LNG per
year. Höegh Giant will deliver regasified LNG to the 56-km Jaigarh-Dabhol natural gas pipeline, connecting the LNG terminal
to the national gas grid. Located on the west coast of India in the JSW Jaigarh Port in the state of Maharashtra, the facility
will also deliver LNG through truck-loading facilities for onshore distribution and reload LNG onto small-scale LNG vessels for
bunkering services. H-Energy also intends to develop a small-scale LNG market in the region, using the FSRU for storage
and reloading LNG onto smaller vessels. Norwegian shipowner Leif Höegh & Co Ltd and fund manager Morgan Stanley
Infrastructure Partners have proposed an offer to take Oslo-listed Höegh LNG Holdings Ltd private. The transaction is
anticipated to close in H1 2021. source : www.rivieramm.com
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JACOBS BAGS PHILIPPINES LNG TERMINAL WORK
US-listed Jacobs has been awarded an engineering, procurement and construction services contract for Fgen LNG’s proposed
floating LNG import terminal in the Philippines, it said on April 13. Manila-listed First Gen Corp, Fgen LNG’s parent company,
recently signed a five-year deal with BW Gas for the charter of a floating storage regasification unit (FSRU) for its LNG import
terminal in Batangas City. Jacobs’ contract involves the modification of an existing liquid fuel jetty to accommodate the FSRU,
as well as LNG carriers. The scope includes modifications to the jetty head, berthing and mooring facilities; a trestle bridge
with high-pressure gas pipeline and utilities; and a jetty monitoring building and control room. Jacobs said it will also undertake
design review, project management and supervision of the construction of the project. First Gen earlier this month said the
project would allow the company to accelerate its ability to introduce LNG to the Philippines as early as Q3 2022 to serve the
natural gas requirements of existing and future gas-fired power plants of third parties and Fgen LNG affiliates. First Gen has
about 2 GW of generating capacity at four operating gas assets – the 1-GW Santa Rita, the 500-MW San Lorenzo, the 414
MW San Gabriel and the 97-MW Avion plants – all of which depend on gas from the offshore Malampaya field, which is
expected to become depleted in a few years. They are all at Batangas city. source : www.naturalgasworld.com
GOLAR LNG SHARES PLUNGE AFTER CEO RESIGNS

Shares in Bermuda-headquartered LNG vessel owner Golar LNG were down almost 8% on April 12, reaching $9.76/share at
the end of trading, after the company announced that its CEO Iain Ross had resigned. The departure of Ross, who has led
Golar LNG since September 2017, comes as the company works towards closing the sale of its 50% and 32% interests in
subsidiaries Hydro Energy Transition and Golar LNG Partners to US LNG developer New Fortress Energy (NFE) for a combined
$5bn.Golar LNG "is currently in the final stages of closing" the transaction, the company said. It did not give a reason for
Ross' resignation. The board is looking for a successor.NFE will buy 100% of Hygo from Golar LNG and its other owner US
investment firm Stonepeak Infrastructure Partners. Formerly known as Golar Power, Hygo was set up in 2016 to develop LNG-
based transportation and power infrastructure. The business controls a floating storage and regasification unit (FSRU) in
Sergipe, Brazil, and a 50% interest in a 1,500-MW power plant that receives its gas. It has two other planned FSRUs due to
support 1,200 MW of power generation in Brazil. Hygo's fleet also includes two LNG carriers (LNGCs). Hygo appointed Paul
Hanrahan as its CEO in October last year after the resignation of former head Eduardo Antonello, who stands accused of
bribery by Brazilian prosecutors. Through its 100% takeover of Golar LNG Partners, NFE will also gain a fleet of six FSRUs
and four LNGCs, as well as a 50% interest in the Hilli Episeyo floating liquefaction vessel. source :www.naturalgasworld.com
FIRST LNG BUNKERING FACILITY ON US WEST COAST JOINS SEA-LNG

Wholly owned subsidiary of Puget Energy, Puget LNG is a small-scale LNG facility that will be the first LNG bunkering facility
on the US west coast when it opens in mid-2021. Puget LNG will not only serve marine customers, but also land-based
customers. The facility will have a shared function, providing LNG for Puget LNG’s commercial customers as well as providing
necessary domestic supply back-up for Puget Sound Energy’s customers. Puget LNG’s first marine customers will be TOTE
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Maritime Alaska, which will bunker its Alaska-bound dual-fuel Orca-class trailerships on a weekly basis. “The operational
launch of Puget LNG’s Port of Tacoma facility is yet another positive step down the decarbonisation pathway,” noted SEA-
LNG chairman Peter Keller. “In environmentally sensitive areas, such as the waters surrounding the Port of Tacoma, it is
essential to remember that LNG protects oceans, creates a healthier environment in terms of air quality, and is proven safe.
Tackling climate change is a shared responsibility and must start now – waiting is not an option.” Puget LNG director of
business development Blake Littauer added “As the leading supplier of LNG in the Pacific Northwest, Puget LNG is building
out infrastructure within the state of Washington to enable a safe, reliable and economic source of LNG with various end uses.
The Port of Tacoma is well-placed as a port of call for LNG-fuelled ships and we are committed to supporting shipowners
who want to lower their carbon footprint today, while also creating future potential for bio and synthetic LNG to a fully
decarbonised future for shipping.” Investment in LNG bunkering infrastructure is being underpinned by a rapidly expanding
LNG-fuelled fleet. The size of the LNG-fuelled fleet more than doubled from 2015 to 2020, growing from 70 vessels in
operation to 191. As of 2021, there are 198 LNG-fuelled vessels in operation and another 265 on order or under construction.
One pathway to decarbonisation available to shipowners investing in building or converting ships to operate on LNG, is through
the transition to bio and synthetic LNG. Owners will be able to switch to these carbon-neutral fuels when they become more
widely available as they use the same existing engine technology and infrastructure. Some shipowners – such as the Finnish
Border Guard are using pure or a mix of bio-LNG, a totally renewable fuel – to lower carbon emissions. source : www.rivieramm.com
CHINA'S GAS IMPORTS UP 20% IN Q1

China’s natural gas imports via pipeline and in the form of LNG in January-March were up 19.6% year/year to 29.38mn metric
tons (mt), according to customs department data published on April 13. Imports in March came in at 8.72mn mt, up 26% yr/yr.
Chinese gas usage has spiked in recent months as a result of a rise in economic activity.Thanks to a recovery in demand in
the second of 2020, Asia's biggest economy last year imported 101.66mn metric tons of natural gas, up 5.3% yr/yr, the
customs department said in January. source : www.naturalgasworld.com
NOVATEK ENJOYS 6% BUMP IN GAS OUTPUT IN Q1

Gas production at Russia's Novatek climbed 5.6% year on year to 20.15bn m3 on the first quarter, the LNG exporter reported
on April 12. The company also enjoyed a 2.7% growth in liquids output to 3.13mn metric tons, bringing its overall hydrocarbon
output to 1.76mn barrels of oil equivalent/day, up 6.4% yr/yr. Novatek's gas sales in Russia were up 7.2% at 19.56bn m3
while international sales were down 23.7% at 1.87bn m3. Rather than reflecting market developments, the decline in international
volumes can be explained by the fact that Novatek bought and re-sold more gas from the Yamal LNG project on a spot basis
in early 2020, as some long-term supply contracts had not yet come into force. These long-term contracts are directly between
buyers and Yamal LNG, rather than its shareholders, and Novatek does not consolidate the project's sales results with its own.
source : www.naturalgasworld.com
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KOREA'S PAN OCEAN PENS LNG BUNKERING DEAL WITH SHELL
South Korean shipping company Pan Ocean said on April 12 it had entered a contract to charter out an LNG bunkering vessel
to Anglo-Dutch major Shell, noting the deal would bring in $55mn in sales revenues. The contract will come into force in May
2023 and includes a firm duration period and two extension options, with an overall duration of up to eight years. The South
Korean press reported that the 18,000-m3 bunkering ship would be built at the Hyundai Mipo dockyard. Shell already has six
chartered LNG bunkering vessels in operation or about to start service and plans to double the size of this fleet by 2025.
source : www.naturalgasworld.com
SOUTH KOREAN AND CHINESE YARDS: AWAITING A US$19BN

SHIPBUILDING BONANZA
After Covid slowed ship orders to historic lows in 2020, South Korean and Chinese shipbuilders are poised to cash in on a
shipbuilding bonanza. Last year, Qatar Petroleum (QP) reserved shipbuilding capacity at South Korean and Chinese shipyards
to build more than 100 LNG carriers worth US$19Bn – the largest LNG shipbuilding programme ever. In mid-March, QP issued
an invitation to tender to select LNG shipowners for the long-term time charter of the vessels. Those LNG carriers will be used
to support QP’s North Field expansion project – which will raise Qatar’s LNG production capacity from 77 mta to 126 mta by
2027 – and LNG volumes from the Golden Pass LNG export project in Sabine Pass, Texas. QP owns a 70% stake in Golden
Pass LNG, with ExxonMobil retaining a 30% interest. Qatargas will manage the selection of the shipowners. When the tender
in process is completed, QP will assign the winning shipowners to construction slots secured at South Korean and Chinese
shipyards. South Korea’s big three shipyards – Korea Shipbuilding & Offshore Engineering, Daewoo Shipbuilding & Marine
Engineering (DSME) and Samsung Heavy Industries (SHI) – dominated LNG carrier construction in 2020, winning 49 out of
53 orders, according to Clarksons Research Services. This figures to be the case this year, underpinned by QP’s mega-
shipbuilding programme. Overall, Clarksons Research Services estimates that 51 large LNG carriers will be ordered annually
between 2021 and 2025, based on the increasing demand for LNG as well as supporting new projects in the US, Mozambique,
Russia, Canada and Papua New Guinea. New shipowners are also entering the LNG carrier market.
One of those is Chinese gas distributor Shenzhen Gas, which signed a contract in mid-March for the construction of a 79,960-
m3 LNG carrier at Hudong-Zhonghua Shipbuilding. Flying the Chinese flag, the LNG carrier will have an overall length of 239
m, beam of 36.6 m, depth of 21 m and draught of 8.5 m, with propulsion supplied by a single Wärtsilä 5RT-Flex50DF dual
fuel engine. Priced at US$140M, the vessel will be delivered in June 2023, according to BRL Newbuilding Weekly. The
newbuild for Shenzhen Gas was one of 16 LNG carriers with a total capacity of 2,012,874 m3 placed in Q1 2021, according
to BRL Shipping Consultants. The current orderbook stands at 176 vessels, with an aggregate capacity of 26,392,122 m3.
A steel cutting ceremony was held at Hudong-Zhonghua Shipbuilding in March for the third in a series of three 174,000-m3
LNG carriers for PetroChina and COSCO Shipping Energy Transportation Co (CSET). Designed by the Chinese shipbuilder,
the vessel is being constructed to both class rules for Lloyd’s Register and China Classification Society. Each vessel in the
10
series will have a length overall of 295 m, beam of 45 m and depth of 26.25 m, with a speed of 19.5 knots. Propulsion will
be supplied by WinGD X-DF Otto-cycle, dual-fuel, low-pressure engines. Hudong-Zhonghua anticipates the daily fuel
consumption for the ship will be less than 100 tonnes. Each LNG carrier in the series is priced at US$185M, according to BRL
Weekly Newbuilding – putting the value of investment in the series at US$555M.
COSCO SHIPPING LNG Investment (Shanghai) Co (Shanghai LNG), a wholly owned subsidiary of CSET, and China LNG
Shipping (Holdings) Limited (CLNG), in which the group holds 50% equity, are currently the only two large-scale LNG shipping
companies in China. Among others actively looking to expand their presence in the LNG carrier sector is the UAE’s ADNOC
Logistics & Services. ADNOC has reportedly approached shipyards about the construction of four 174,000-m3 LNG carriers,
with an option for another. Deliveries would be between Q1 2024 and Q1 2025, with a tender submitted by the end of May
2021, according to BRL.Among deliveries in early 2021 is the 180,000-m3 LNG Rosenrot, built by DSME for a joint venture
of energy trader ITOCHU Corp and Mitsui OSK Lines (MOL) under long-term charter for Germany’s Uniper, transporting US
LNG to Europe. Like sister vessel LNG Schneeweisschen, delivered by DSME is 2018, LNG Rosenrot has an overall length
of 297.9 m, beam of 47.9 m and draught of 11.5 m, with two-stroke, Otto-cycle, low-pressure dual-fuel WinGD X-DF
propulsion. Commenting on the importance of the delivery, Uniper chief commercial officer Niek den Hollander said: "LNG is
helping to diversify gas sources around the world and strengthen both competition and security of supply — especially in
European markets and in Germany, where reliance on certain supply regions is the subject of much discussion. Without LNG,
there would be no global gas market.” Added Mr den Hollander: “Liquefied natural gas now plays an important role in the
energy supply, as well as in industry, the heating market and transport. As the production of natural gas in Europe continues
to undergo a significant decline, the demand for imported natural gas will increase considerably in the coming years.” Uniper
traded 225 cargoes of LNG in 2020, compared to 134 in 2019. The Asia-Pacific region in particular has seen strong growth
in the LNG trade in recent times: Uniper traded about two-thirds of its volumes of LNG in this region last year.
Gas carrier vessels on order or under construction

Type # of vessels
FSRU 3
LNG carrier 176
LPG carrier 130
LPG other* 16
* include LPG/ethane, LPG regriferated and LPG/ethylene carriers
source : www.rivieramm.com/ Source: BRL Weekly Newbuilding Contracts
11
INDIA’S APPETITE FOR LNG AND NEWBUILD FSRU FOR INDIA
Demand for LNG in India is being driven by the country’s refineries, fertilser industry, power generation and transport sector.
To handle this increase in demand for LNG, the country will more than double its existing LNG receiving terminal capacity,
from 21.3 mta to 47.5 mta by 2022. India’s appetite for LNG and natural gas is underpinning new vessel projects. A naming
ceremony was held in February for GAIL Bhuwan, a new LNG carrier built by a wholly owned subsidiary of MOL to serve
under charter to state-run GAIL, transporting LNG from the US Gulf Coast to India.Japan’s MOL signed a charter agreement
with GAIL – India’s largest natural gas company – in June 2019. Built by DSME, GAIL Bhuwan has an overall length of 297.9
m, breadth of 47.9 m, draught of 11.5 m and capacity of 180,000 m3. MOL LNG Transport (Asia) Ltd will manage the LNG
carrier, supporting a 20-year sales and purchase agreement (SPA) signed by state-run GAIL to purchase 3.5 mta of LNG
from Cheniere Energy’s Sabine Pass Liquefaction.
MOL has other LNG interests in India besides transporting US LNG. An Indian subsidiary of MOL holds an interest in what
will be India’s first LNG receiving terminal, based on a newbuild floating storage and regasification unit (FSRU). Built by South
Korea’s Hyundai Heavy Industries (HHI), the newbuild FSRU, Vasant 1, will be moored at the Jafrabad LNG receiving terminal
project, which is being led by Swan Energy Ltd, at Jafrabad, Gujarat, India. Development of the project requires the construction
of a breakwater and jetty, where the FSRU and floating storage unit (FSU) will be moored side by side to receive, store and
regasify LNG for transmission to shore. The terminal will have a regasification capacity of 5 mta. The development of the
project is under a public-private partnership basis under a concession agreement executed between Swan Energy subsidiary
Swan LNG Pvt Ltd (SLPL), Gujarat Maritime Board (GMB) and the Government of Gujarat. SLPL holds a 63% equity stake,
with Government of Gujarat holding 26% interest, (made up by a 15% holding from GMB and 11% by Gujarat State Petronet
Ltd), with the remaining 11% held by FSRU Venture India One Pvt Ltd, the Indian subsidiary company of Mitsui OSK Lines
(MOL). MOL serves as the technical partner for the project and has a long-term contract to operate and maintain the FSRU
and FSU. Swan Energy plans to operate the LNG import terminal on a tolling business model; out of 5 mta capacity, Swan
Energy has already executed regasification agreements aggregating to 4.5 mta for 20 years with GSPCL (1.5 mta) and BPCL,
IOCL and ONGC (1 mta each). Commercial operations are expected to start 31 March 2022. Besides being India’s first newbuild
FSRU, Vasant 1 also incorporates new regasification technology. Since delivering the world’s first FSRU, PGN Lampung, in
2014, HHI’s Shipbuilding & Marine Business Department has been developing various new technologies with the Korea Institute
of Shipbuilding and Ocean Future Technology, one of which is a new regas technology. Introduced in 2018, the proprietary
water-glycol regasification indirect heating system has been installed on three FSRUs. It uses a glycol mixture with a lower
freezing point as a heat medium to significantly increase durability and safety compared to the conventional propane gas
heating method, according to HHI. source : www.rivieramm.com/ Source: BRL Weekly Newbuilding Contracts
12
DISCLAIMER: The news, opinions, reports, updates and data or views contained on the Reports page may not represent the opinions or views of CYGNUS ENERGY, ITS OWNERS, ITS employees or its agents or affiliates. CYGNUS ENERGY makes no representation, warranty or guarantee as to
the accuracy or completeness of the information contained in any News, Research, Analysis or Opinion provided by this service. the information has been taken and credited and cited to the sources as per the citation given in the report/newsletter herein. Under no circumstances will CYGNUS
ENERGY, its owners, employees, gents or affiliates be held liable by any person or entity or institution or company for decisions made or actions taken by any person or entity that relies upon the information provided here. While every care has been taken to ensure that the information in this
publication is accurate, CYGNUS ENERGY, can accept no responsibility for any errors or omissions or any consequences arising therefrom. Figures are based on latest available information, which is subject to subsequent revision and correction. The views expressed are those of CYGNUS ENERGY
and do not necessarily reflect the views of any other associated company. NEWS AND SOURCE: LNGWORLDNEWS, LNG INDUSTRY, THE HINDU BUSINESS, ARGUS MEDIA, PETROWATCH, REUTERS, IGU LNG REPORT 2018, TRADEWINDS, MONEYCONTROL
CYGNUS ENERGY
Gas & OIL
118 Connaught Rd W, Sai Ying Pun, Hong Kong
sandp@cygnus-energy.com (SALE N PURCHASE)
gas@cygnus-eneryg.com (GAS PROJECTS)
13

Cygnus Energy LNG News Weekly 16th April 2021

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LNG NEWS WEEKLY DATE 16th APRIL 2021

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LITHUANIA EYES FSRU PURCHASE FOR KLAIPĖDA LNG

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CHINA'S GAS IMPORTS UP 20% IN Q1

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SOUTH KOREAN AND CHINESE YARDS: AWAITING A US$19BN

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