Large supplies of cheap natural gas have caused many companies to search for gas monetization options. Most focus has been on the construction of large-scale LNG liquefaction facilities. However, there are several smaller markets that are also benefitting from and seeing new innovation in the wake of cheap, plentiful gas. For example, low-speed reciprocating compressors […]
The Panama Canal’s Expansion Impacts Crude Oil, LPG, and LNG
Today the Shell-chartered Maran Gas Apollonia became the first large LNG tanker to transit the newly expanded Panama Canal carrying cargo from Cheniere’s Sabine Pass liquefaction plant to East Asia. Since its inception in 1914, the Panama Canal has connected 160 countries and 1,700 ports around the world. Today, between 13,000 to 14,000 ships use […]
Applying Latin American LNG Strategies in the U.S.
The Bolivian state energy company Yacimientos Petroliferos Fiscales Bolivianos (YPFB) is using an LNG virtual pipeline, which is a system where LNG is produced in a liquefaction plant and is transported in tanker trucks to customers. The YPFB virtual pipeline includes a fleet of tanker trucks and mobile regasification units to transport LNG produced in […]
A Slowing Dragon: China’s LNG Demand Declines for the First Time
In 2014, China’s LNG demand peaked at 2.7 billion cubic feet per day (bcfd) making it the third-largest LNG importer in the world behind Japan and South Korea. However, as the Chinese economy has slowed LNG demand declined for the first time since China started importing LNG in 2006. Figure 1 highlights the revised LNG […]
Cost-Cutting Measures to Improve Offshore Projects
The cost of extracting a barrel of crude oil quadrupled from 1996 to 2014. There are many reasons for this although at least three that have played a major role. First, higher safety standards, excessive documentation, internal processes (we have previously written about how BP was able to cut $10 million by standardizing specifications), and […]
Petronas Starts-Up While Other FLNG Projects Struggle
Earlier this year, Petronas launched the world’s first floating liquefied natural gas (FLNG) vessel, PFLNG 1. The vessel is capable of producing 1.2 mtpa of LNG and is located offshore in the Kanowit field ~115 miles southwest of Malaysia. PFLNG 1 marks the first of what could be many FLNG projects worldwide. However, falling oil […]
What Does the Failure of the HAL BHI Merger Mean for M&A in Oilfield Services?
Last week, it was announced that Halliburton would not be following through with its acquisition of Baker Hughes. Meanwhile, in early April, Schlumberger’s acquisition of Cameron was completed. Understanding why the Halliburton Baker Hughes deal fell through while the Schlumberger Cameron deal moved forward offers insight into the outlook for M&A in oilfield services. Fundamentally different […]
ADI Analytics Quoted by Bloomberg on Cheniere
ADI Analytics was quoted Bloomberg’s story on Jim Chanos’s bearish view of Cheniere Energy Inc. ADI Analytics has been closely monitoring LNG export projects worldwide and was able to add insight into Cheniere’s position in the future LNG. “The LNG market is probably headed for some level of oversupply in the future but we don’t think […]
Natural Gas Utilization via Small-Scale Methanol Technologies
Low natural gas prices have helped in driving new attention and interest to natural gas monetization options, which will play an important role in spurring natural gas demand. One promising gas monetization option is the production of methanol using small-scale plants. Conceptually, small-scale methanol plants offer a number of advantages. The first advantage is that […]
Drivers for LNG Fueled Marine Vessels Vary by Region
Recently, we wrote about how Emission Control Areas (ECA) are one of two major drivers in adopting LNG as a marine fuel. The other driver being the price differential between LNG and diesel fuel. Looking at the number and the location of both planned and operational LNG vessels across the globe can help paint a […]
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