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

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.


White House says Trump regrets not raising tariffs higher

US President Donald Trump arrives at the G7 summit in Biarritz, France, on Sunday. Trump had been trying to use the conference to rally global leaders to do more to stimulate their economies, as fears rise of a potential slowdown in the US ahead of his reelection. (AP)
Updated 5 min 45 sec ago

White House says Trump regrets not raising tariffs higher

  • President’s comments appear at first to mark a rare moment of self-reflection by the US leader

TOKYO: President Donald Trump said Sunday that he had second thoughts about escalating the trade war with China, but the White House later reversed that message saying the president was misinterpreted and that his only regret in hiking tariffs is that he didn’t raise them higher. Trump faced a tense reception from world leaders meeting amid mounting anxiety of a global economic slowdown at the Group of Seven summit in France. During a breakfast meeting with British Prime Minister Boris Johnson, Trump suggested he had qualms about the spiraling conflict. “Yeah. For sure,” Trump told reporters when asked if he has second thoughts about escalating the dispute, adding he has “second thoughts about everything.”
But hours later, White House press secretary Stephanie Grisham issued a statement saying Trump’s comments about US tariffs on China were “greatly misinterpreted.”
She said Trump only responded “in the affirmative — because he regrets not raising the tariffs higher.” The comments appeared at first to mark a rare moment of self-reflection by the famously hard-nosed leader. But the later reversal fit a pattern for Trump in recoiling from statements he believes suggest weakness.

HIGHLIGHTS

• President Donald Trump faced a tense reception from world leaders meeting amid mounting anxiety of a global economic slowdown at the Group of Seven summit in France.

• White House said comments about US tariffs on China were ‘greatly misinterpreted.’

Trump had been trying to use the conference to rally global leaders to do more to stimulate their economies, as fears rise of a potential slowdown in the US ahead of his reelection. Trump’s counterparts, including Johnson, are trying to convince him to back off his trade wars with China and other countries, which they see as contributing to the economic weakening.

US-Japan agreement
Trump and Japan’s Prime Minister Shinzo Abe announced on Sunday a deal in principle on a major bilateral trade deal.
“It’s a very big transaction,” Trump said after talks with Abe on the sidelines of the G7 summit.
“Billions and billions of dollars,” he said. “It involves agriculture, it involves e-commerce. It involves many things. We’ve agreed in principle.”

Amazon fires
Also on Sunday, French President Emmanuel Macron said that world leaders at the G7 summit have agreed to help the countries affected by the huge wildfires ravaging the Amazon rainforest as soon as possible.
“We are all agreed on helping those countries which have been hit by the fires as fast as possible,” he told journalists.