UK’s South Hook to get first non-Qatari LNG tanker

High freight rates are weighing on Asian demand, with deliveries of LNG heading to northwest Europe instead. (Shutterstock)
Updated 26 October 2018
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UK’s South Hook to get first non-Qatari LNG tanker

  • Commodities trader Vitol said it would import LNG in the Yari tanker into South Hook on Oct. 31
  • South Hook has been upgraded so it can receive LNG that is not just from Qatar

LONDON: Britain’s South Hook liquefied natural gas (LNG) terminal is scheduled to receive its first tanker of LNG not supplied by Qatar at the end of this month.
Commodities trader Vitol said it would import LNG in the Yari tanker into South Hook on Oct. 31. The tanker is coming from the Sabine Pass LNG terminal in the US.
The South Hook LNG Terminal, located in Milford Haven in west Wales, has received LNG from Qatar since it became operational in 2010, where it is regasified and delivered into the gas grid. It can provide around 20 percent of Britain’s natural gas needs.
Qatar is the leading LNG exporter to Britain but it has also found new demand from countries such as Pakistan, Poland and Turkey.
South Hook has been upgraded so it can receive LNG that is not just from Qatar. The shareholders in the South Hook LNG Terminal Company are Qatar Petroleum, Exxon Mobil Corporation and Total.
South Hook Gas is responsible for managing the terminal’s import capacity.
Elsewhere, Asian spot prices for liquefied natural gas fell to a more than two-month low this week amid increased supply and lower demand especially in Japan, which is expecting a warmer-than-usual winter and the restart of nuclear reactors.
High freight rates are also weighing on Asian demand, with deliveries of LNG heading to northwest Europe instead.
December spot LNG fell to the lowest since Aug. 10.
Illustrating the tepid demand, a fleet of half-a-dozen tankers carrying unsold LNG has been floating in Singapore and Malaysian waters for up to two weeks, traders said this week.
The ships are carrying a total of around 1 million cubic meters of LNG, worth more than $200 million at current spot market prices.
The LNG cargoes were purchased ahead of the northern hemisphere winter season in a strategic move but are now
failing to find buyers, several traders told Reuters.


Egypt inks deal with Cyprus for power link to Europe

Updated 23 May 2019
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Egypt inks deal with Cyprus for power link to Europe

  • It is estimated the project will take 36 months to implement from the start of construction, with the lowest point 3,000 meters below sea-level
  • Phase 1 will see the interconnector carry a capacity of 1,000 MW which can be upgraded to 2,000 MW at a later stage

NICOSIA: Egypt has signed a deal with a Cypriot firm to lay a 310-kilometer (195-mile) cable under the Mediterranean to export electricity to Europe, the company said on Thursday.
Nicosia-based EuroAfrica described the deal, worth an estimated two billion euros, as a “landmark.”
“Cyprus now becomes a major hub for the transmission of electricity from Africa to Europe,” said company chairman Ioannis Kasoulides.
It is estimated the project will take 36 months to implement from the start of construction, with the lowest point 3,000 meters below sea-level.
Phase 1 will see the interconnector carry a capacity of 1,000 MW which can be upgraded to 2,000 MW at a later stage.
“The national electricity grid of Egypt will be linked to the European electricity system through Cyprus and will contribute to energy security,” Kasoulides said.
Following the crises in Crimea and eastern Ukraine, the EU has been keen to develop alternative sources of energy to reduce its dependence on imports from Russia.
In the past year, gas has started flowing from four major new fields off Egypt’s Mediterranean coast, and output is already sufficient to meet domestic needs.
The Arab world’s most populous country is now seeking to develop the infrastructure to export its newfound energy wealth, both as liquefied natural gas and as electricity.
Egypt is also seeking to import gas from fields off Cyprus and Israel to boost the profitability of the new liquefaction and export facilities it is developing on its Mediterranean coast.
In September, Egypt signed a deal with Cyprus to build an undersea pipeline to pump Cypriot offshore gas to Egypt for processing for export to Europe.
The plans have led to closer eastern Mediterranean ties, with Cyprus, Egypt, Greece and Israel holding regular high-level meetings.