Over the past year, the global energy industry, including the liquefied natural gas (LNG) industry, has faced many challenges. Geopolitical turmoil and the ensuing global energy crisis have culminated in an ongoing scramble for security of supply of all kinds, with LNG leading the way.
Offshore Energy - Clean Fuels takes you back to the LNG industry headlines in 2022:
Germany to wean itself off Russian gas with two LNG terminals
Beginning in 2022, Germany plans to build two LNG terminals at Brunsbüttel and Wilhelmshaven as part of efforts to reduce its dependence on Russian gas. Ten months later, the country's first floating LNG terminal officially opened.
Shell strikes deal with unions to restart Prelude FLNG production
Shell, one of the world's largest energy companies, is also in the spotlight for its Prelude FLNG facility in Australia, which has been closed several times. One reason for this is the Protective Industry Action (PIA), which began in June 2022 and ended in September 2022 when Shell reached an agreement with the Australian Workers' Union and the Electrical Union to restart production. However, due to a fire on December 21, 2022, the facility is currently closed again.
AG&P prepares to send first LNG to Philippines in early 2023
At the end of October 2022, Atlantic Gulf and Pacific (AG&P) released after completing the conversion of ISH, a 137,512 cubic meter LNG carrier, into a floating storage unit (FSU) for the Philippines' first LNG import terminal (PHLNG) got the news. The terminal, due to start up in early 2023, will bring liquefied natural gas to the Philippines for the first time.
Bar LNG terminal to bring reliable supply to Balkans
At the same time, in Europe, and more precisely in the Balkan countries, plans are underway to construct the Bar LNG terminal, which will primarily serve Montenegro, the main regions of Bosnia and Herzegovina, Kosovo, Serbia, Albania and southern Hungary, providing energy security. A final investment decision (FID) for the Bar LNG terminal is expected in the third quarter of 2023.
Germany, China secure long-term LNG supplies from Qatar
In November 2022, Qatar Energy, Qatar's state-owned oil and gas company, signed long-term LNG supply deals with Germany and China, making significant progress towards its ambition to become the world's largest LNG trader within a decade.
Qatar Energy and China Petrochemical Corporation (Sinopec) have signed a 27-year sales and purchase agreement (SPA) to supply 4 million tons of liquefied natural gas per year to China. The deal is being billed as the longest gas supply deal in the history of the LNG industry.
Subsequently, ConocoPhillips signed two long-term liquefied natural gas sales and purchase agreements with Qatar Energy Company to transport 2 million tons of liquefied natural gas from Qatar to Germany every year.
First cargo departs from Eni's Coral Sul FLNG facility near Mozambique.
Italian oil and gas major Eni made headlines in mid-November after the first shipment of liquefied natural gas from the Coral gas field in Mozambique departed from the Coral Sul FLNG facility.