On September 10, Dresser-Rand announced it had won the $55 million contract to provide necessary compression equipment for a floating liquefaction unit being commissioned by Flex LNG.  The unit, called LNGP1, is expected to have a liquefaction capacity of 1.7 million tons per year.  Once operational, it will be sited offshore Nigeria.

In a letter to the U.S. Energy Secretary, the senior U.S. Senator from Oregon, Ron Wyden, wrote: "The administration is trying to have it both ways - arguing that we need to drill everywhere because we don't have adequate energy supplies, while finding that we have so much energy that big oil companies can export it overseas and keep prices here at home higher than they would otherwise be."

Queensland Gas Company (QGC) has added to the flurry of consolidation attempts by various firms to acquire coal-seam gas reserves in Queensland, Australia, by offering to buy out all of rival Sunshine Gas.  Sunshine’s directors have recommended unanimously that shareholders accept the offer barring any superior offer, or if an “Independent Expert” concludes that the offer is not fair and reasonable.

In an August 15 article by The Age, a newspaper in Melbourne, Australia, it was speculated that BG Group may have to unload its own CSG reserves if it plans to go ahead with its hostile takeover bid for Origin Energy.

Mitsubishi Corporation has agreed to purchase 15-years of LNG production from what may become the world’s first floating liquefaction plant, which is being built by Flex LNG.

On August 6, FMC announced it was awarded a contract from Samsung for four LNG offloading systems with an option for a fifth.  The offloading systems will supply Samsung’s customer, Flex LNG, necessary components for its LNG FPSO units.

Wärtsilä-Hyundai Engine Company Ltd., a relatively new joint venture, has received an order for 16 Wärtsilä 50DF engines, which will be used for four Flex LNG FPSO vessels being constructed by South Korea’s Samsung.  A fifth FPSO may be built by Samsung for Flex in the future, and thus an option is in place for four more engines if the need arises.

Algeria’s Sonatrach has awarded a $4.5 billion (€2.8 billion) EPC contract for Gassi Touil LNG to a joint venture between Italy’s Saipem and Japan’s Chiyoda. The facility, once operational, will increase Algeria’s national LNG production by 30% to 30 million tons per year (mty).

On July 23 in Boston, Suez LNG announced it had begun construction on the offshore Neptune LNG terminal.  The first phase of construction should be completed by September of 2008.

Queensland Gas Company (QGC) announced July 15 that it has awarded the FEED contract for its $8 billion LNG project, Queensland Curtis LNG, to Bechtel.  In cooperation with BG Group, QGC is developing the one-train project to produce 3 to 4 million tons per year (mtpy) of LNG from coal seam gas feedstock; the first production is expected by 2013.  BG and QGC envision expanding the plant in the future with two additional trains that would give the facility a 12 mtpy capacity, which would make it one of the two most productive LNG plants in Australia.

By 2020, Korea Gas plans to triple its LNG storage capacity to 6.5 million tons. 

Both the tightening global LNG market and ever-increasing domestic demand caused the need for more storage, as the fourth-largest economy in Asia expects to import more than 40 million tons of LNG in 2020, representing nearly a 65% increase from present imports. 

On June 26, Shell said it will build a floating LNG plant that would liquefy 3.5 million metric tons of natural gas per year.  According to Reuters, there are three consortiums that will compete for the FEED contract, which is expected to be awarded in 2009.

On June 27, 2008, the U.S. Department of Commerce announced decisions on appeals regarding two domestic LNG projects.  Both appeals stem from a state’s right to object to projects that would violate that state’s coastal management program.  As outlined by the Commerce Department, the federal Coastal Zone Management Act dictates that if a state objects to a proposed project, the federal government cannot issue permits for the project unless the objection is overridden.  Both Weaver’s Cove and Sparrows Point had been objected to by the states in which they are located.

On June 19, 2008, Queensland Gas Company (QGC) announced that its 2P reserves of coal seam gas had increased 80% to more than 2,370 petajoules (PJ), and that its 3P reserves were up from 3,116 PJ to more than 7,100 PJ.

Total announced June 16 that it has signed a Memorandum of Understanding with China National Offshore Oil Corporation aimed at increasing cooperation between the two firms.  As part of this meeting of the minds, Total has contracted to deliver up to 1 million tons of LNG annually beginning in 2010.  The LNG will be sourced from Total’s worldwide pool and energy trading activities.

On June 9, Flex LNG announced that it had entered into an arrangement with Mitsubishi Corp. and Peak Petroleum through a Heads of Agreement contract.  Flex LNG, a two-year old corporation based in the British Virgin Islands, along with Mitsubishi and Peak Petroleum, will jointly develop and market LNG from a floating liquefaction vessel offshore Nigeria.

On June 6, the Federal Energy Regulatory Committee (FERC) issued a favorable Environmental Impact Statement (EIS) for the Washington- and Oregon-based Bradwood Landing LNG project.

In coordination with the U.S. Coast Guard, the U.S. Army Corps of Engineers, and the U.S. Department of Transportation, FERC staff indicated in the EIS that Bradwood Landing LNG would have “mostly limited adverse environmental impacts.”  The positive EIS is one step on the path toward FERC approval; FERC Commissioners will take into account both the EIS and the additional recommendations of the staff when they convene to rule on the project in the future.

On June 3, 2008, the U.S. Department of Energy (DOE) approved a license extension for the export of Cook Inlet LNG to Asian markets for two years, until March 31, 2011.  In January 2007, Marathon Oil Corporation and ConocoPhillips applied jointly for a two-year extension with the DOE.