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Tk 12.26b project underway to boost transmission capacity
Power Grid Company of Bangladesh (PGCB) has taken up a Tk 12.26 billion project to increase its power transmission capacity, officials said. They said PGCB has recently sought approval for the proposed China-funded projects renovation and capacity enhancement of existing grid substations and transmission lines. Under the project, the state-run grid company will mainly replace high-voltage substations and install capacitor banks. It will also re-conduct 132-kilovolt (kV) 218-kilometre double-circuit line and 48-km single-circuit transmission line and install some fresh grid lines. "We have already sent a project proposal to the Planning Commission (PC) for getting approval," said a senior PGCB official. As the power generation capacity of Bangladesh has gone up and some big power plants will be commissioned within the next 2-3 years, he said, the capacity of the transmission system needs to be upgraded. The PGCB official said some of the foreign donor-funded ongoing power transmission line projects will not be completed within the stipulated time which will make the existing grid line overloaded. "So, we have taken up the government-funded Tk 12.26 billion project to improve the existing transmission capacity in different places of Bangladesh," he added. According to the project proposal, PGCB will replace 18 substations for upgrading their capacity, install 33kV capacitor banks at 17 substations in different places across the country.    
Oil slips further below $59 on weaker economic outlook
October 17, 2019 Thursday 7:01 PM By Reuters
Oil slipped further below $59 a barrel on Wednesday, pressured by concerns about weaker demand for fuel due to slower economic growth and forecasts of a further rise in US crude inventories. Signs from the Organization of the Petroleum Exporting Countries that further curbs to oil supply could come in December lent support, as did wider market optimism about a potential Brexit deal. Brent crude LCOc1, the global benchmark, slipped 16 cents to $58.58 a barrel by 0850 GMT. US crude CLc1 gained 2 cents to $52.83. “Prices are under pressure from increasing pessimism about the global economy and subsequent demand-side concerns,” Stephen Brennock of oil broker PVM said. In a bearish signal for demand, the International Monetary Fund said on Tuesday the US-China trade war would cut 2019 global growth to its slowest since the 2008-2009 financial crisis. “Prices remain under pressure,” said Craig Erlam, analyst at OANDA. “Oil inventory today from API may be notable albeit unlikely to have any major impact on the broader trend.” The American Petroleum Institute (API) reports its weekly US inventory numbers at 2030 GMT, ahead of Wednesday’s government stocks data. Analysts estimate US crude inventories rose by around 2.8 million barrels last week. British and European Union officials resumed talks to clinch a Brexit deal on Wednesday just a few hours after late-night negotiations wound up, but it was far from clear they would reach an agreement before a leaders’ summit on Thursday. Analysts have said any agreement that avoids a no-deal Brexit should boost economic growth and, in turn, oil demand. Providing more price support, OPEC Secretary-General Mohammad Barkindo has said an option for OPEC and its allies is to implement deeper cuts in oil production. OPEC, Russia and other producers have a deal to cut oil output by 1.2 million barrels per day until March 2020. They meet on Dec. 5-6 in Vienna to review the decision. On Tuesday, Barkindo said OPEC would do what it could with allied producers to sustain oil market stability beyond 2020, in a signal the producers would continue to cooperate.
Category: Other Countries
Japanese co buys 22pc stake of Summit Power
October 10, 2019 Thursday 12:38 PM By Reuters
Japan`s JERA Co has acquired a 22 per cent stake in Summit Power International for $330 million, the companies said on Monday, to enable the establishment of major energy infrastructure projects in Bangladesh. That means Summit Power International`s total equity value is $1.5 billion. The new investment was made in accordance with the memorandum of understanding on the development of energy infrastructure projects in Bangladesh that was concluded between JERA and Summit Power in May in Tokyo, JERA said in a statement on Monday. Singapore-based Summit Power International is the holding company for all power assets of Bangladesh`s Summit Group, while JERA is a joint venture between Tokyo Electric Power and Chubu Electric Power Co. International Finance Corp (IFC), IFC Emerging Asia Fund, and United Arab Emirates-based EMA Power Investment, which were shareholders of Summit since 2016, will exit through this transaction, according to the statement. However, IFC will continue to be a large lender to Summit, it added. The partnership will support Summit Group`s investment plan of $3.0 billion by 2022 in Bangladesh, Muhammed Aziz Khan, Summit Group`s chairman said in the statement. Summit Power, the largest independent power producer in the country, owns and operates power generation facilities that produce approximately about 12 per cent of the country`s capacity. The company is currently constructing power generation facilities with a capacity of approximately 590 megawatts and, with several new projects also being planned, significant growth is expected in the future. Bangladesh currently has a capacity to produce 18,000 megawatts of electricity per day, said Nasrul Hamid, the country`s junior minister of power, energy and mineral resources, adding that it aims to increase it to 24,000 megawatts per day by 2021. "Foreign investment is required to achieve this goal." JERA said in a separate statement that it has positioned Bangladesh as a priority country for investment due to an expected rapid rise in electricity demand along with steady economic growth in the South Asian country.
Category: Power
Payra Power Plant set to go into production from Dec
October 10, 2019 Thursday 12:37 PM By News Desk, energynewsbd.com
A 1,320-megawatt (MW) coal-based Payra Thermal Power Plant set up on 12 acres of land in Kalapara upazila in Patua-khali  is likely to start production from next December. If everything goes according to the plan, 660 MW of electricity from the power plant will be added to the national grid from December this year. Chinese and Bangladeshi workers are working round the clock to make the power plant fully operational by June 2020. Sources said that the thermal power plant is a joint venture of the North-West Power Generation Company Bangladesh Limited (NWPGCL) and China National Machinery Import and Export Corporation (CMC). Although the project was expected to be completed within 2019, the work got delayed due to various unforeseen events, including workers` dissatisfaction. About 2,600 Chinese and 5,500 Bangali workers are currently working in this power plant. Indonesia`s MV Jingheiton, a coal-laden vessel, has unloaded coal at the Payra thermal power station’s jetty as the first step to produce electricity. Power Grid Company of Bangladesh (PGCB) sources said that the construction of a 400 KV line through a Korean company and a 230 KV line through a Chinese company to bring power from the coal-based Paira power plant is progressing at a rapid pace. The electricity generated from this plant will be added to the substation of Gopalganj. From there, it will be supplied to the national grid. Shah Moni Zico, assistant manager of the project, said the work on this project is moving fast. The power plant will play a major role in meeting future electricity needs, he added. Shah Md Golam Mawla, project director of the 1,320-MW power plant, said that the first unit will go on to produce 660MW of electricity on December 25. The remaining 660MW will be fully integrated into the national grid by June next year. Another 1,320-MW power plant will be built in the vicinity of this plant by 2022, he added. On 19 March 2015, a deal was signed between NWPGCL and the CMC to set up the Payra Power Plant. The joint venture was named Bangladesh-China Power Company Limited (BCPCL).  On 29 March 2016, BCPCL signed an engineering, procurement and construction (EPC) contract with consortium of NEPC and CECC for the installation of the power plant. The utility electricity sector in Bangladesh has one national grid with an installed capacity of 21,419 MW as of September 2019. The total installed capacity is 20,000 MW (combining solar power). In June, a Chinese electrician was killed and seven other employees of 1320 MW Payra Power Plant were injured in a clash between Bangladeshi and Chinese employees amid rumours that a Bangladeshi worker was killed by Chinese employees.
Category: Power
Rosatom Chief stresses on maximizing use of nuclear technology
October 10, 2019 Thursday 12:34 PM By News Desk, energynewsbd.com
Alexey Likhachev, Director General of Russia’s state nuclear energy corporation- ROSATOM emphasized on maximum harnessing the potential of nuclear technologies in order to implement the decisions of the Paris Agreement on Climate Change and achieve sustainable development goals. He was addressing the plenary session of the 63rd Annual General Conference of the International Atomic Energy Agency (IAEA) concluded in Vienna recently, said a press release. The IAEA Conference brought together high-level delegates from more than 170 member states to discuss the most relevant issues and set priorities for developing cooperation in the global nuclear industry. Highlighting the importance of applying diversified nuclear energy solutions he said, “Another promising area is the introduction of small and medium capacity reactors. This opens up new opportunities to develop hard-to-reach regions where safe and affordable energy is needed”.  Alexander Merten, President of Rusatom International Network (a company of Rosatom) underscored the significance of increasing public acceptance at each stage of the national nuclear program. He was speaking at a session on the large-capacity NPP project in Uzbekistan. ROSATOM Corporate Academy organized the session “Professional communities and cooperation development” to discuss personnel development strategies for the energy sector. On sideline of the conference Russia signed a number of documents of strategic importance; an intergovernmental agreement with Uganda on cooperation in the peaceful use of nuclear energy and another similar agreement with Dominican Republic. Besides, ROSATOM and IAEA signed agreements to foster cooperation in the economic evaluation methodology in the nuclear power industry. At this year’s General Conference, ROSATOM demonstrated cutting-edge Russian nuclear technologies, as well as their role in achieving UN Sustainable Development Goals.
Category: Other Countries
Promoting new innovations in power and energy sector
September 26, 2019 Thursday 11:38 AM By News Desk, energynewsbd.com
Centre for Research and Information (CRI), in collaboration with government and private sector, will launch an extensive open competition next month among university students across the country with an aim to scout out, develop and scale up new innovations on renewable energy. CRI has signed a memorandum of understanding (MoU) in this regard with Power Cell, Power Division, Ministry of Power, Energy and Mineral Resources (MPEMR) and Green Delta Insurance Company Limited at a ceremony at its office in the city. State Minister for Power, Energy and Mineral Resources Nasrul Hamid, who is also a trustee of CRI, Mohammad Hossain, Director General, Power Cell, Power Division, MPEMR, Farzanah Chowdhury, Managing Director and CEO, Green Delta Insurance Company Limited and Sabbir Bin Shams, Executive Director, Centre for Research and Information (CRI) were present at the signing ceremony. The MoU signing comes in the backdrop of promoting innovation in sustainable and renewable energy which may solve power & energy challenges of the marginal group of the country. As part of the MoU, hundred local entrepreneurs, in addition to the idea hunt competition, will be selected from different parts of the country, who will be provided with technical, strategic and logistics support to roll out an easily scalable and implementable energy production solution (with no geographic dependency). In October, the event is set to commence with an announcement that would see young innovators submit their proposals online and a month long activation events will be held on as many as 15 campuses to attract the students. The proposal should include innovative ideas supported by the basic scientific principles covering design, operation and utility aspects of the product in the renewable sector like solar, wind and biogas based energy solutions, according to a press release. Following a rigorous screening process upon month long submission, as many as five to ten propositions are likely to be selected finally by an expert committee for consideration for financial support and execution at the community level. Selected projects will be funded for commercial operation and scale-up for sustainable business model.
Category: Others
DPDC appoints consultant for power project
September 26, 2019 Thursday 11:35 AM By News Desk, energynewsbd.com
Dhaka Electricity Distribution Company (DPDC) has recently signed an agreement with a consultant firm for a project for supplying uninterrupted electricity in the Dhaka city. The DPDC signed the deal with a consultant firm – Hifab Oy of Finland and Bangladesh Engineers and Consultants Bangladesh Limited (ECBL) Joint Venture Company at Bidyut Bhaban. Witnessing the signing ceremony as the chief guest, State Minister for Power Energy and Mineral Resources Nasrul Hamid directed officials concerned to complete the Expansion and Strengthening of Power System Network project in time. “The project will help will to ensure uninterrupted electricity city supply in the capital city. Once the project is implemented then scenario of Dhaka city will be changed,” he said. Nasrul said the project finance by Chinese government will be implemented under Government to Government method considering very important project. He also directed two managing directors of power distribution companies in Dhaka city for holding talks with authorities concerned of internet and dish line within next month. “As soon as possible all hanging cables attached with power lines will be removed,” the state minister said adding that substations will be erected to make it secured alongside to give the look neat and clean. Managing Director of DPDC Engineer Bikash Dewan said the initiative was taken to strengthen Dhaka’s power distribution system with the help of China. The appointment of consultant was very important for implementation of the project-Expansion and Strengthening of Power System Network under DPDC area,” he said. According to the project details, Chinese contactor- Tebian Electric Apparatus-will implement the project at a cost of Taka 20,468 crore, of which Bangladesh government will give Taka 7,441 crore, DPDC will give Taka 1,249 crore, while China will provide Taka 11,777 crore. DPDC secretary Asaduzzaman and regional director of Hifab Nathalie Tranfeld signed the contract on behalf of their respective sides. Board chairman of DPDC Mohammad Shafiqullah, ECBL’s Managing Director Kazi Kamal Uddin Akram and Regional Director of Hifab Nathalie Tranfeld also spoke on the occasion.
Category: Power
REB to set up 7.5 lakh more prepaid meters by December
September 26, 2019 Thursday 11:33 AM By BSS
As part of the government plan to replace 2.0 crore traditional meters by prepaid ones within 2025, Bangladesh Rural Electrification Board (BREB) will set up 7.50 lakh more meters within December 2019. “We have installed 4 lakh prepaid meters up to June 2019 under BREB areas of Dhaka Division and another 7.50 lakh meters will be installed within December 2019,” Project Director of Prepayment Meter Project in BREB Md Rafiqul Islam told the news agency. He said as a part of the government vision-2021, a plan has been taken to install 31 lakh more smart prepayment meters within 2021, adding, “Currently the government is providing 01 per cent rebate on electricity recharge amount. As the prepayment meter bills on actual uses, so there is no chance of ghost billing, consumers’ sufferings and other anomalies in the power sector”. In addition, prepayment meters protect the appliances (Light, Fan, Refrigerator etc) from voltage fluctuation, the project director said. “To utilize electricity properly, reduce the misuse of electricity and to facilitate the automatic billing system, the government has introduced the prepayment meters in BREB,” he said. Talking to BSS State Minister for Power, Energy and Mineral Resources Nasrul Hamid said the government has taken initiatives to replace 2.0 crore traditional meters by prepaid meters within 2025 for ensuring transparency in electricity billing system. “The government under the honest and sincere leadership of Prime Minister Sheikh Hasina is committed to provide electricity for all within -2021 as per the slogan of the government-Sheikh Hasina’s initiative for reaching electricity in every house,” he added.
Category: Power
Oil dips after three days of gains
August 30, 2019 Friday 5:45 PM By Reuters
Oil prices eased on Friday after three days of gains, with concerns about the state of the global economy amid the US-China trade war keeping prices in check. US oil fell 6 cents, or 0.1 per cent, to $56.65 a barrel by 0050 GMT. The contract is heading for a gain of more than 4 per cent this week, boosted by a decline in U.S inventories and the approach of a hurricane towards Florida. Brent crude was down 10 cents, or 0.2 per cent, at $60.98, after adding 1 per cent on Thursday. Worries about a slowdown in economic growth due to the US-China trade war and the flow-on to oil demand have kept a lid on price gains, even as falling inventories indicate a balancing market. China`s commerce ministry said on Thursday the world`s two biggest economies were discussing the next round of face-to-face trade talks scheduled for September, but hopes for progress hinged on whether Washington could create favourable conditions. The approach of Hurricane Dorian toward Florida raised fears that offshore US crude producers may slow output if the storm passes into the Gulf of Mexico over the weekend. Dorian is heading toward landfall on the Atlantic coast of Florida over the weekend and may enter into the eastern Gulf of Mexico next week. It is is forecast to strengthen and become a highly dangerous Category 4 hurricane on Sunday, the National Hurricane Center said. Chevron Corp`s 356,440 barrel-per-day Pascagoula, Mississippi, refinery is closely monitoring the progress of Hurricane Dorian, a company spokesman said on Thursday. Last month, Hurricane Barry prompted offshore oil companies to shut as much as 74 per cent of production, lifting US crude prices, before it weakened to a tropical storm. Government data on Wednesday showed US crude stocks dropped last week by 10 million barrels to their lowest since October as imports slowed, while gasoline and distillate stocks each fell by over 2 million barrels. Inventories at the nation`s main delivery hub in Cushing, Oklahoma, where WTI futures are priced, slumped last week by nearly 2 million barrels to their lowest since December, the data showed. Cushing stocks have dropped by over 300,000 barrels since the government report, traders said, citing market intelligence firm Genscape`s midweek report.
Category: Other Countries
BREB to install 10m smart pre-paid meter by 2025
August 29, 2019 Thursday 10:32 AM By News Desk, energynewsbd.com
Bangladesh Rural Electrification Board (BREB) has set a target to install 10 million smart pre-paid meter by 2025 to facilitate its clients for paying hassle-free monthly power bills, official said. "We have a target to set up 10 million smart pre-payment meter across the country by 2025," project director of smart pre-paid metering of BREB Md Rafiqul Islam said. At present BREB has 27 million clients. Out of them, about 0.5 million are now paying monthly power bills through smart pre-paid meter system. Three million more new clients will be included by the end of the current year. The BREB official said that the process is underway to set up one million smart pre-paid meter involving the cost of Tk three billion during the fiscal year 2019-20. The BREB started to install smart pre-paid meter system from 2017 aiming to check misuses of power and get actual revenue against the consumption of power. The BREB official further said that under smart pre-paid/ payment power billing system is same as mobile recharging system. The clients could use power upon its financial ability by using smart pre-payment meter. Besides, they could see their respective ongoing power load and reading. They will get Tk 100 instantly as emergency credit if their pre-paid money is exhausted. The government started to install smart (online) pre-payment meter system from 2011.  
Category: Power
Old Dhaka likely to get 120,000 prepaid gas meters
August 29, 2019 Thursday 10:14 AM By News Desk, energynewsbd.com
Some 120,000 prepaid gas meters are likely to be added to the ongoing project of Titas Gas Transmission and Distribution Company Ltd (Tas Gas T&D) to install those in the southern part of capital Dhaka. According to official sources at the Titas Gas, a proposal now remains pending with the Japanese financing agency JICA for their final consent. “We hope, JICA will give its clearance within a month in this regard,” a top official at Titas Gas told the news agency. Titas Gas T&D, entrusted with the responsibility of natural gas transmission and distribution across Dhaka city and adjoining areas, has taken a project to install 200,000 prepaid metres for the household consumers to check gas pilferage and its misuse. As per Titas Gas official data, it has about 2.783 million consumers in its command area of which 2.764 are household consumers.
Category: Gas
Govt may allow 50MW solar-based PP in Ctg
July 29, 2019 Monday 10:45 AM By News Desk, energynewsbd.com
The government is likely to allow a joint venture 50MW solar-based power plant at Barayerhat in Chattogram under a 20-year contract. The Consortium of IB GmbH Vogat of Germany and AG Agro Industries Ltd will supply the electricity at Tk 8.75 per kilowatt hour ($0.1094). The government has invited tender to implement the power plant near 132/33 kilowatt voltage sub-station at Barayerhat on August, 2018. The GmbH Consortium of IB Vogat and the AG Agro Industries Ltd submitted the bid document to implement the power plant. The Consortium of IB GmbH Vogat has been elected as the only responsive bidder to implement the plant under build, own and operate (BOO) basis. According to the official sources, the Consortium of IB GmbH Vogat has already awarded to implement another solar based power plant at Dhamrai in Dhaka last month. The tariff of the Dhemrai power plant was at Tk 8.60 per kilowatt whereas the newly proposed power plant tariff is Tk 8.75 in Chattogram. The power division has already allowed eight solar-based power plants having a capacity to generate 268.77MW of electricity since 2016 at a tariff between Tk 12.80 and Tk 8.80 per kilowatt hour. But, most of the power plant failed to generate electricity timely, sources said. The proposed power plant will supply the electricity under ‘no electricity no payment’ basis. According to the power division, the government has a plan to generate 24000MW of electricity by 2021. Of the electricity, at least 2000MW of electricity will come by 2020 from renewable energy.
Category: Renewable
Oil prices drop amid concerns over weaker demand
July 29, 2019 Monday 10:43 AM By Xinhua
Oil prices retreated on Wednesday, despite a decline in US crude inventories last week, as investors concerned about weakening demand. For the week ending July 19, U.S. commercial crude oil inventories decreased by 10.8 million barrels from the previous week, the US Energy Information Administration reported Wednesday. Yet at 445 million barrels, U.S. crude oil inventories are about 2 per cent above the five year average for this time of year. The decline was due to disruptions caused by a Gulf of Mexico storm earlier this month and seen as a “one-off event,” an energy expert told MarketWatch. Analysts also noted that the ongoing US-Iran tensions have triggered worries over weakening demand in the Middle East. The chief commander of the Islamic Revolution Guards Corps denied on Wednesday that any of Iran’s drones has been downed by the United States in the Strait of Hormuz region recently. US President Donald Trump announced the U.S. action last Thursday, claiming that the Iranian drone was “destroyed” in the Strait of Hormuz. The West Texas Intermediate for September delivery dropped 0.89 U.S. dollar to settle at 55.88 US dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery declined 0.65 dollar to close at 63.18 dollars a barrel on the London ICE Futures Exchange.
Category: Other Countries
Chinese firm building single mooring at Bay
July 29, 2019 Monday 10:40 AM By News Desk, energynewsbd.com
The newly-established China Petroleum Pipeline Engineering Co. Ltd (CPP) is currently building the country`s lone SPM system instead of the China Petroleum Pipeline Bureau (CPPB). The CPP was established in 2017 following the restructuring of its predecessor, CPPB, said a senior official of state-run Bangladesh Petroleum Corporation (BPC). He said the CPP is expected to complete the project titled, `Installation of single point mooring (SPM) with double pipeline` with Chinese concessional loan of around US$554 million by 2020. Of the total loan amount, China is set to provide $467.84 million as preferential buyers` credit and the remaining $82.5 million as soft loan. Exim Bank of China would provide the money to be repaid within 20 years at an annual interest rate of 2.0 per cent with five years` grace period. Once the SPM is built, the government is expected to save around Tk 10 billion a year by directly offloading imported petroleum products at its Chittagong refinery depot. Currently, BPC cannot offload imported fuel oil at its Chittagong refinery depot directly.
Category: Petroleum
UMPL to implement 584MW combined cycle power plant
July 29, 2019 Monday 10:36 AM By News Desk, energynewsbd.com
A consortium of three local and foreign companies signed deals with the government entities on July 24 to implement the country`s biggest 584 megawatt (MW) combined cycle power plant at Meghnaghat of Narayanganj. The consortium, named Unique Meghnaghat Power Ltd (UMPL), will build the power plant within 36 months. The plant will run either on locally produced natural gas or by re-gasified liquefied natural gas (RLNG) to generate electricity. The UMPL, the consortium of Unique Hotel & Resorts Ltd., Strategic Finance Ltd. and US company GE Capital Global Energy Investment BV, inked the deals at a function at Bidyut Bhaban in the city. Some US$ 520 million will be required to implement the power plant project, which is expected to provide electricity by July 2022. Unique Hotel and Resorts Ltd has 64.98 per cent stake in the power plant project, while the GE has 30 per cent and Strategic Finance has 4.95 per cent stakes. State-run Bangladesh Power Development Board (BPDB) will purchase electricity from the power plant at a levelised tariff rate-around US cents 3.69 per unit (1 kilowatt-hour) or Tk 2.95 per unit, if it is run by locally produced gas. The tariff would be US cents 6.80 per unit (1 kilowatt-hour) or Tk 5.44 per unit, if it is run by RLNG. State Minister for the Ministry of Power, Energy and Mineral Resources (MPEMR) Nasrul Hamid was the chief guest at the function, while US Ambassador to Bangladesh Earl R Miller, Principal Coordinator of SDG affairs at the Prime Minister`s Office Abul Kalam Azad, Power Secretary Ahmad Kaikaus, and Petrobangla Chairman Ruhul Amin were the special guests. National Board of Revenue (NBR) Chairman Md Mosharraf Hossain Bhuiyan also spoke. The event was chaired by the BPDB Chairman Khaled Mahmood. UMPL Chairman Mohammad Noor Ali was also present.  
Category: Power
Dhaka lines up deal to get Aramco investment
June 30, 2019 Sunday 9:26 PM By News Desk, energynewsbd.com
Bangladesh is set to sign a memorandum of understanding (MoU) with Saudi Arabian oil behemoth Aramco on a multi-billion dollar investment in the power and energy sector, officials said. Aramco, the national petroleum and gas company, is one of the largest companies in the world by revenue of $ 356 billion. According to Bloomberg, it is the most profitable company in the world. "We`ve sent the draft of the MoU to Aramco for their scrutiny and after getting their feedback, we will sign," a senior foreign ministry official, who is dealing with the process, said. He also said the deal has been prepared after taking inputs from the ministries concerned. Primarily, Aramco has expressed its interest to invest in three projects --a large oil refinery with a capacity of between 10-20 million tonnes, a 500-megawatt power plant and liquefied natural gas (LNG) terminal. In 2011, officials of the energy ministry told reporters about Aramco`s plan to build a refinery having the capacity of 1.8 million tonnes.  
Category: Petroleum
Higher Asian prices, European gas stocks trigger LNG flow reshuffle
June 30, 2019 Sunday 9:21 PM By Reuters
Asian liquefied natural gas (LNG) prices rose this week on some demand for summer cargoes, while European prices continued to drop, with an increased price spread between the two regions triggering interest in sending some Atlantic cargoes to Asia Pacific. The LNG price for August deliver in northeast Asia is estimated at $4.80 per million British thermal units (mmBtu), a 20 cent rise from last week. Several deals were done this week at a price close to $5.00 mmBtu for August delivery in Asia, but sources said prices could have decreased slightly by Friday after deals closed. In contrast, front-month gas price on the Dutch hub in Europe dropped below $3.20 per mmBtu. Decreased price netbacks in Europe are making some producers to consider re-exporting cargoes from northwest Europe to more profitable regions, like Asia or the Mediterranean. Up to four transhipments of Russia’s Yamal LNG cargoes have been agreed for July, a market source said. In addition, trading houses and utilities are discussing reloads in Europe, another source said. One of these will take place in France’s Fos terminal on July 9, data from operator Fosmax showed. Japan’s Mitsui is expected to deliver a European cargo to Japan to cover a position that was initially expected to be supplied by a cargo from new U.S. plant, Cameron LNG, which was eventually sent to France, another market source said. Cameron exported its second commissioning cargo this week after earlier delays with loadings. PRICE DRIVERS An uptick in Asian demand has improved Asian LNG prices this week. Demand came from Japanese and Chinese buyers, market sources said. Japan’s JERA was on the market, as well two or three Chinese companies, sources said but added demand was still weak and prices will likely drop back to $4.50 mmBtu if there is not enough rise in Asia’s temperatures to drive gas demand for cooling this summer. On Friday, JERA bought a September cargo from Vitol at $4.80 per mmBtu at Platts Market on Close window. In India, there is some short-term LNG demand from power plants, a source active in the Indian markets said. In addition, India’s Gujarat State Petroleum Corp (GSPC) and Reliance Industries were both looking for an October cargo each, the source added. On the supply side, Angola LNG is selling a cargo for delivery in August in a tender closing July 2, two market sources said. Malaysia’s Petronas has offered two cargoes via the LNG trading marketplace Global LNG Exchange (GLX), a market source said. In Europe, high gas storage levels are weighing on prices. Aggregated storage level in the Netherlands, Belgium, France and Germany reached around 370 terrawatt hours (TWh) this week, data compiled by Refinitiv showed. Current stock level is 74% more than a year ago and 42% more than an average at the same period in past four years. Market sources expect that in some European countries storage may be filled by August, leading to a further drop in European prices in the rest of summer months. Usually storage injections stop at the end of October. High storage levels may increase the number of relaods in Europe later this year. “I think we will have too much gas (in stocks) for September, so something will have to move,” a gas trader in Europe said.
Category: Other Countries
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