Unfortunately there is a world glut of LNG, these energy companies and investors only have themselves to blame, these greedy entities swooped in like vultures on Asia(Japan) and figured they could make $billions providing natural gas..
They created a massive glut...With new gas discoveries in nearly every country, with renewable energy leapfrogging fossil fuel investment, with a warming planet along with an economic stall in China...These companies and shareholders are not prepared to lose $billions...
Supply and demand, a massive supply glut AND LITTLE DEMAND...It really is that simple.
Spanish energy giant Repsol has halted plans to add liquefied natural gas export facilities at its existing Canaport LNG import terminal in Saint John, Canada.“The Saint John LNG liquefaction project has been placed on hold,” Brent Anderson, a spokesman for Repsol Canada told LNG World News in an emailed statement.
Repsol joins a growing number of companies that are delaying or cancelling their LNG developments due to market volatility and low oil and gas prices.
“Current market conditions and project challenges make it unattractive for third-parties and off-takers to join the project,” Anderson said.
Saint John LNG Development, a unit of Repsol, received in September last year a licence from Canada’s NEB to export up to 8.86 bcm of gas per year for a period of 25 years from the proposed 5 mtpa LNG facility.
Oh indeed, need more...It's not just Canada, proposed LNG projects are being deferred and cancelled everywhere...including this one in Indonesia..
Japan’s Inpex will delay the development of its multi-billion Abadi LNG project in Indonesia by at least two years, the Indonesian energy regulator SKK Migas said on Wednesday.According to Amien Sunaryadi, Chairman of SKK Migas, Inpex notified the regulator that it plans to downsize its workforce in Indonesia of around 400 by at least 40 percent as an agreement on the revised Masela plan of development (POD) had not yet been reached.
Shell engineers working on the giant LNG project had also been told to look for other work within the company, he said.
Inpex pushed the final investment decision on the project until 2020, meaning that the LNG project will not be operational until at least 2026, around two years before the companies’ contract is due to expire.
The Japanese company submitted to SKK Migas of Indonesia in November last year a revised plan of development of the Abadi LNG project, as a result of a greater volume of natural gas reserves being confirmed.
The revised plan envisions the adoption of a floating LNG plant with an annual processing capacity of 7.5 million tons, bigger then Shell’s Prelude FLNG.
However, the Indonesian government has still not approved the plan as it is considering whether the LNG project should go ahead as an offshore facility or be moved onshore.
It was recently reported that $6 billion could be saved by Inpex and Shell if Indonesia opts to build the Masela Abadi LNG facility on land instead of offshore.
Maritime affairs coordinating ministry official Haposan Napitupulu said that a land-based LNG facility would cost $16 billion while an offshore facility would be in the region of $22 billion.
Contrary to the Maritime affairs ministry, SKK Migas believes a floating LNG facility would cost around $14.8 billion, $4.5 billion less than an onshore facility.
Inpex currently has a 65 percent operating interest in the Masela block, while Shell holds the remaining 35 percent.
Here is another newsflash....The world LNG glut will not ease if a bunch of these projects all figure to come online in 2025...
The LNG game is over...The energy source is just as dirty as coal, maybe even dirtier once one counts all the upstream, downstream emissions, the transportation emissions, and the end buyers burning the actual gas, then factor in all the methane leaks at the wellheads.....
Christy Clark and the BC Liberals, along with a stale cheerleading media claim that LNG will displace coal use thus the massive GHG footprint of LNG production should be ignored...Hogwash!
The media must start reporting actual facts and data, the practice of merely repeating political and industry hyperbole and spin has gotten way out of hand, Postmedia is no longer a news source, comic books provide more honesty than Postmedia(are you listening Vancouve Sun and Province)
The facts must be reported...
One more thing, a commenter on my Petronas is out article(linked directly above)...This anonymous commenter claimed that Shell Canada will make a final investment decision in late 2016...Why is that some people believe a final investment decision is always positive?...More often than not, the decision is no..!
Isn't that the reason why the word "decision" is placed in FID..?
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