Gov't falls,Force Majeure, TOT Yemen LNG

[Tree]

Yemen declares force majeure on LNG exports

Fri Jan 23, 2015 11:51am GMT

MILAN/LONDON Jan 23 (Reuters) - Yemen has declared force majeure on liquefied natural gas (LNG) deliveries from its Balhaf plant due to deteriorating security following the collapse of the government, trading sources said.

The 6.7 million tonne per annum Balhaf gas export terminal is run by France's Total and ships LNG, primarily to Asia and to some European countries.

Total could not immediately comment.

"Due to the political circumstances, on Monday there were skirmishes around the presidential palace and the government instructed Yemen LNG not to shut down the plant but to prepare to lower production and ... declare force majeure," a source familiar with the matter said.

Asian LNG prices were unchanged on expectations the issue could were be quickly resolved if a new government were to be installed in the next few days, the source said. (Reporting by Oleg Vukmanovic and Sarah McFarlane, editing by Wiliam Hardy)

[admin]

Yea, it's a dangerous part of the world out there..

[Tusker]

Indonesia announces a 25% reduction in LNG exports. Will be used for domestic consumption. Export contracts at the end of 2015 will expire and not be renewed. Exploration blocks for oil and gas are being withdrawn.

[Palm]

Yikes! What's the world going to do for LNG?!!

[Tusker]

Well there is 75-90 MTPA of LNG contracts due to renew 2015-2020 along with 7% growth. I know, let's go to the Arctic. What... Oh no, delayed for another year to 2017 and majority owner want to sell 9% in order to get money to build. The permafrost melts and creates sinkholes?

Yikes

[Palm]

And Exxon is trying to push ahead with their 8T LNG project in Prudhoe Bay Alaska, but the Governor there has made an about face and now seems to be opposing the project. The Point Thomson project at 8Ts seems comparable to IOC's, but there's a slight difference. The price tag is in the $45-$60 Billion range. Have a friend who works for a large company who Exxon has contracted with for a good chunk of the construction. Says dealing with the harsh conditions and the permafrost makes building such a project a little bit expensive.

http://www.insidesources.com/recent-move...s-project/

[Tusker]

Gosh... I wonder if this project was first proposed way back when a barrel of oil was trading at 100 USD. Don't expect folks in PNG are familiar with permafrost. What a world of difference between them.

[Palm]

It was. Proposal was for a 3-train plant at a place called Nikiski (sounds familiar). Gas fields are at Point Thomson and there will be an 800-mile pipeline to get the treated gas to the LNG plant. Big ol project cost-wise.

http://ak-lng.com/wp-content/uploads/201...-final.pdf

[Tusker]

Oh My !!

Declining production and expanding consumption has turned the Arab's worlds most populous country from a energy exporter to a net importer....

That be Egypt... a population of some 90 million in the midst of the Middle East. Re-gassification terminal to be completed. Buying a lot of LNG.

TooT TOT

[Putncalls]

I detect a bit of sarcasm with respect to the PPS.
The alternative to LNG is diesel.

15$/MCF = 750$/tonn
10$/MCF = 500$/tonn
50$/BBL = ~350$/tonn .139 tonns/BBL
80$/BBL = ~560$/tonn
All HCs have similar energy densities by weight.
Any turbine that consumes NG can consume diesel.(may require some modification)