Asian LNG demand expected to swallow supply
The price of liquefied natural gas (LNG) has been expected to drop as new projects coming online drive supply, Reuters reports.
Within the next two years, an additional 40-50mn tonnes of LNG are expected to be created annually through the new projects, mainly in Australia and the US.
However, the industry has also seen a growth in demand for the fuel, especially within the Asian market.
According to industry executives, the increase in demand should absorb the rise in supply.
“For the past three years, we were told at every conference that we’ll have a gas bubble, that gas is oversupplied, that we won’t be able to sell LNG... but it’s a bubble that never came,” remarked Jean-Pierre Mateille, Vice President of Trading of Gas and Power at Total.
In 2017, China overtook South Korea as the world’s second-largest LNG importer, with Japan at the top spot.
China transitioned millions of homes from coal to natural gas-powered electricity and eating last year, in a bid to tackle air pollution.
“If we move away from the next one, two, three years, the industry is growing at 20 to 30 million tonnes every year but we’re not taking FIDs (final investment decisions) for that kind of volume,” noted Hadi Hallouche, Head of LNG at Trafigura.
“There seems to be a consensus that from two years onwards we have a (supply) crunch because we have under-invested in production.”
Global Offshore rebrands Enelift and invests in global hubs
Global Offshore has rebranded Enelift and will invest "a seven-figure sum" in establishing new support hubs in Houston, Dubai, Singapore, Perth and the Caspian during the next six months.
The investment will cover oil, gas and renewables, mainly concentrating on manufacturing capability with associated R&D, as well as in stock held in the hubs.
The company’s flagship Hinge Lok technology provides aluminium, non-welded light weight transportation cradle for casing and tubing. Enelift now plans to enhance its offering by augmenting its existing solutions with robotics and remote operational and training technology, which will reduce manpower for handling offshore equipment that is transported and stored using the Hinge Lok system.
Enelift is partnering with "a Japanese robotics company" and the technology will be trialed with "a Norwegian operator on a Norwegian drilling rig", according to a statement.
Operating from its bases in Aberdeen, UK and Esbjerg, Enelift was founded by 35-year industry veteran and Managing Director Paul Brebner 10 years ago to offer the offshore energy industries safe, reliable and efficient storage and transportation of equipment.
The expansion plans are bolstered by the appointment of Jim Clark of the Craigendarroch Group to Chairman, and Adam Maitland to Non-Executive Director. Maitland is the Managing Director of Hutcheon Mearns IF, and brings his wealth of expertise in the field of corporate finance.
Brebner said Enelift may be a new name in the market, but the experience it brings is "industry renowned".
"Our solutions are underpinned by safety that enables inefficiencies and their associated costs to be eradicated – meaning operational personnel can focus doing what they do best, safely. We remain committed to providing the safest storage and transportation solutions for equipment in the sector as we grow our global operations," he said.
Clark said the market is changing and its solutions fully support customers’ economic and safety aspirations.
"We are very well placed to take full advantage of increasing opportunities in the Middle East, Africa, Far East and Americas. Safety is our absolute commitment to our customers and our support hubs will facilitate this. Aligning our identity to our entire offering ensures that we will drive our expansion through new products and global support sites across the rest of this year."