• 3 minutes This Battery Uses Up CO2 to Create Energy
  • 5 minutes Shale Oil Fiasco
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 minutes Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 8 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 1 min China gets caught?
  • 6 hours Demand for Diesel vs. Oil
  • 2 days Governments that wasted massive windfalls
  • 20 hours Which type of Hegemony will China follow
  • 11 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 2 days Here is Why People Lose Money Trading Natural Gas
  • 2 days We're freezing! Isn't it great? The carbon tax must be working!
  • 12 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 1 day Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 2 days Let’s take a Historical walk around the Rig
  • 2 days US Shale: Technology

Breaking News:

Oil Prices Rise On Surprise Crude Draw

The Oil Industry’s Radioactive Secret

The Oil Industry’s Radioactive Secret

An investigative journalist has written…

OPEC Wants To Extend Oil Production Cuts Until June

OPEC Wants To Extend Oil Production Cuts Until June

As the coronavirus outbreak wreaks…

Petronas Loads First-Ever LNG Cargo From Floating Facility

Gas

Malaysia’s state oil and gas company Petronas announced the loading of the first liquefied natural gas cargo from a floating production facility over the weekend. The facility is located off the eastern coast of Malaysia and the cargo is bound for a client in South Asia, most probably South Korea, according to media.

Reuters reported late last week that the loading of the 144,000-cu-m Seri Camellia tanker had started at the Petronas Floating LNG Satu.

The Satu facility is estimated to have cost Petronas $10 billion, going into operation last year. Thanks to the floating facility, the Malaysian company beat other energy majors such as Shell and Japan’s Inpex, which are also working on floating LNG production projects.

Petronas has shaped up to be one of the leaders in LNG: besides its local LNG operations, the company has a massive, $27-billion LNG project in Canada, the Pacific NorthWest LNG, which has faced several delays because of local environmentalist opposition and cost considerations.

The Canadian project is a partnership with four other Asian companies, including China Petrochemical Corp, Japan Petroleum Exploration Corp., Indian Oil Corp. and Brunei’s national energy company, and will open a new route for Canadian gas to Asian markets – the biggest consumers of LNG currently.

Yet the global LNG market has seen a massive influx of supply over the last year or so, mainly from Australia and the U.S., and this has naturally affected pries, putting a question mark over some projects, such as the Canadian one. Between 2014 and now, LNG prices on the spot market in Asia have fallen about 70 percent, to $5.50 per million Btu.

Related: Russia Reaches 2/3 Of Oil Output Cut Target

The Satu floating production facility, however, has proved resilient. Compared to another two projects, Shell’s Prelude FLNG and Inpex’ Ichtys facility, both in Australia, it has cost less: Prelude has a tag of $12 billion and the Ichthys project is valued at $37 billion. Both Australian projects have met with cost overruns and delays.

By Irina Slav

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play