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European demand for gas raises US LNG exports in 2022.

LNG vessels

 

Europe’s efforts to develop alternative sources of gas imports as it seeks to move away from Russia helped to drive the United States to become the world’s largest liquefied natural gas (LNG) exporter during the first half of 2022.
U.S. exports of LNG increased by 12 percent despite a recent fire at one facility in Texas.

The U.S. Energy Information Administration (EIA), cited data by market intelligence firm Cedigaz, reported a strong increase in U.S. LNG exports.

Among the factors contributing to the growth, analysts cited continued overall growth in demand, and in particular from Europe, which contributed to increased international LNG prices.

Since the end of last year, EU countries and Britain have increased LNG imports to compensate for lower imports from Russia and to fill historically low natural gas storage inventories.

 This comes on top of strong demand as more industries have sought to move away from coal and oil as their source of energy replacing it with cleaner-burning natural gas.
 As a result, overall LNG imports to the EU and UK increase by 63 percent during the first half of 2022 to an average of 14.8 Bcf/d.

Similar to 2021, the U.S. sent the most LNG to the EU and UK during the first half of the year, providing 47 percent of Europe’s total LNG imports.

Other major suppliers to Europe include Qatar at 15 percent, Russia at 14 percent, and four African countries combined at 17 percent.

The EU and UK also remained the U.S.’s largest customers for LNG.

 During the first five months of 2022, 71 percent of U.S. LNG exports, or a total of 8.2 Bcf/d, were shipped to Europe.
 The U.S.’s total exports, and the amount sent to Europe, however, fell in June as a result of an unplanned outage after an explosion and fire at the Freeport LNG export facility.
The facility is expected to resume partial liquefaction operations in early October 2022.

“Utilization of the peak capacity at the seven U.S. LNG export facilities averaged 87 percent during the first half of 2022, mainly before the Freeport LNG outage, which is similar to the utilization on average during 2021,” said EIA.

According to EIA, installed U.S. LNG export capacity has expanded by 1.9 Bcf/d or nearly 10 percent since November 2021.

The capacity additions include a sixth train at the Sabine Pass LNG, 18 new mid-scale liquefaction trains at the Calcasieu Pass LNG, and increased LNG production capacity at Sabine Pass and Corpus Christi LNG facilities.
As of July, EIA estimates that LNG liquefaction capacity is now averaging 11.4 Bcf/d, with a shorter-term peak capacity of 13.9 Bcf/d.

U.S. facilities however nearing their capacity limits in the near term while several investment projects look to expand capacity in the mid-term. While the temporary suspension of exports from the Freeport LNG facility has done little to impede the overall exports, the industry looks forward to its return to increase the supply before the onset of the coldest months in the U.S. and Europe.

Currently, 14 countries in Europe have LNG import facilities although the utilization of the facilities varies by region with the northern and southern parts of the European natural gas pipeline grid not fully integrated.

Several countries, including Germany, the Netherlands, Italy, Finland, and Estonia, have all announced expansions of the LNG import capacities with charters to bring FSRUs in to provide immediate capacity to support LNG imports for the upcoming winter season.

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Headlines

IMO tasks Mobereola to sustain NIMASA’s leadership role in regional maritime industry

—– hails his appointment as DG
The Eyewitness Reporter
The International Maritime Organization (IMO) has lauded the leadership role of the Nigerian Maritime Administration and Safety Agency (NIMASA) in the maritime industry within the West African sub-region which it said has stabilized maritime administration in the region.
In his congratulatory letter to Dr. Dayo Mobereola, the new NIMASA DG, the Secretary General of IMO Arsenio Dominguez, observed with satisfaction the collaborative efforts of NIMASA that have brought relative peace to the troubled Gulf of Guinea (GoG).
He therefore charged Mobereola to sustain the tempo of activities that will keep the momentum going in the areas of safety, security and building of strong maritime institutions.
In a conveyance letter personally signed by him, the IMO Secretary-General recognized the strides of the Agency in building a robust maritime sector in Nigeria, adding that the IMO commends the significant effort, initiatives, and investment that Nigeria has made in strengthening its maritime institutions.

In the words of Dominguez, “The focus on strengthening maritime law enforcement and security architecture has been welcomed by seafarers and flag States.

“The Deep Blue project and the C4i Centre as well as maritime piracy laws under the SPOMO Act are just some of the many investments that have set a new gold standard in the region in maritime security capacity building”.

“IMO has long supported the regional role of the Yaoundé Code of Conduct and its Member States in strengthening maritime security and law enforcement.

” In this respect, we have been greatly encouraged with the continuation of this regional ownership with the formation and work of the Gulf of Guinea Maritime Collaboration Forum and Shared Awareness and De-confliction (GoG-MCF/SHADE) in 2021”.

He commended the Agency’s partnership with the various regional bodies and expressed the readiness of the IMO to work with Nigeria and other member states on many maritime issues with the aim of jointly tackling these issues.

“NIMASA’s partnership with the Interregional Coordination Centre (ICC) and the collaboration with the shipping industry, navies and the Yaoundé architecture has been instrumental in suppressing the threat of piracy to merchant vessels and seafarers in line with UN Security Council resolution 2634 (2022) on piracy and armed robbery in the Gulf of Guinea and IMO Assembly resolution A.1159 (32)”.

” I look forward to working with you and your colleagues on many of the maritime issues that we are jointly tackling and hope to welcome you in person at the IMO, he said.

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Headlines

Eastern shippers, freight forwarders on collision course with Shippers’ Council over increase in haulage rate

Akutah Pius Ukeyima, ES, NSC
The Eyewitness Reporter
Importers, Exporters and freight forwarders playing their trade in the South East region of the country have rejected the recent 200 percent hike in haulage rate by the Nigerian Shippers’Council.
They described the increase as “outrageous, arbitrary, and unacceptable.”
In a press conference called by the aggrieved shippers in Port Harcourt on Wednesday, they claimed that if the hike was not reversed, it would bring them on a collision course with the Shippers’ Council.
Addressing journalists on behalf of the aggrieved group, Joshua Ahuama, Zonal Coordinator of the Association of Nigerian Customs Licenced Agents (ANLCA), claimed that the rate will not only lead to spiral inflation but also in contravention of the provisions of the NSC Act.
He disclosed that the group shall give the Shippers’Council a seven-day ultimatum to reverse to status quo or face withdrawal of their services at the Eastern ports.
He accused the council of not consulting concerned stakeholders before arriving at the decision, saying consultations are an integral part of the NSC Act.
 “Recently, the NSC approved a 200 percent increment in haulage rate for transport owners and drivers operating under the Maritime Union of Nigeria.
“To this end, importers and freight forwarders associations in the eastern zone have unanimously disputed the new rate because it is outrageous, arbitrary, and unacceptable to all stakeholders in the zone.
“We have, however, resolved to adopt all peaceful efforts. We started this move on March 14 by calling on the NSC to ensure proper stakeholder engagement and renegotiation.

” These measures are also expected to help all parties to reach a benchmark that would be in the interest of all stakeholders in the maritime value chain,” Ahuama noted.

 “We also urge the NSC to return to the status quo by suspending the implementation of the disputed rate, pending proper renegotiation covering the interest of all stakeholders.

“We are not on a selfish course. Our demands are in the interest of Nigerians because any slight increase in the haulage rate will reflect on the prices of goods in the open market.

“A businessman incorporates total logistic costs into the prices of goods.”

However, the group said they might be constrained to take drastic measures, including suspending all declarations of goods and payments of customs duties, which could negatively affect national revenue and economic output.

Some members of the import and export associations present at the meeting included the Nigeria Shippers Association, the Aba International Traders Association, the Ultimate Importers Association, the POP Importers Association, the Nnewi Importers Association, and the Onitsha Importers Association.

However, the Nigerian Shippers’ Council has said that the new approved rate took into consideration the cost, moderation and other cargo transport issues.
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Customs

Performance of Apapa Customs scanning officers excites Comptroller Jaiyeoba

The Eyewitness Reporter
The Area Controller of Apapa command of the Nigeria Customs Service, Comptroller Babajide Jaiyeoba has lauded the uncompromising attitude of the officers of the Non-Intrusive Inspection Technology Unit (NIITU) which he said has been invaluable to the overall success of the command.
Comptroller Jaiyeoba, who was on an unscheduled visit to the scanner site, reminded the officers of the importance of teamwork as a strong basis to sustain the gains of compliance and revenue collection recently recorded by the command.
He thanked Deputy Comptroller Salamatu Atuluku, the Officer in charge of the scanning site and encouraged the unit not to be deterred by complaints coming from persons who were made to pay accurate duties to the government after issuance of demand notices
According to him, no business person who is made to part with money will be happy with officers who refused to compromise the ethics of their job
” The main reason for me coming here is to appreciate you. I may not see you but I have seen your work and I won’t keep quiet about what I have seen about your work.
“You are doing very well. I just want to encourage you to work as a team. If you don’t work as a team, you give room for outsiders to come in and when they come in, they divide you and when they divide you,  achieving success will be very difficult
” Do your work without blemish. Once you keep your arm straight, you can stand before anybody. Your work as a customs officer is to ensure that you do the correct thing
” For those of you doing an intervention in the form of Demand Notice(DN), there is no body who part with money that will be happy with you.
“They will want to play intelligent by hiding somewhere. When you fetch them from their hiding place, they become your enemy. Whatever they write about anybody here will still come down to me and if anybody works well, the onus on me is to defend such a person.
“Just have it at the back of your mind that you owe yourself the duty of doing your work diligently whether anyone comes around as a friend or enemy.
“It is not enough for you to rest. The reward for hard work is more work. These demands require sacrifice so that you can maintain the status” he said.
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