Deals wrap: Italgas' 2i Rete Gas deal to boost AI, Japan energy peers explore CCS, Indonesia opens exploration blocks

The sector's interest in partnering on low carbon and clean energy projects is still booming, as indicated by JERA's partnership with Japanese peer INPEX on a local CCUS project. 

Meanwhile Indonesia opened its latest licensing round for oil and gas exploration and Italgas sought to grow its gas distribution portfolio via a bid for Italian peer 2i Rete Gas, in a deal that could boost Italgas' AI ambitions. 

Here's a snapshot of the deals that caught headlines this week: 

INPEX, JERA partner to explore carbon capture and storage in Australia

Japanese energy giants INPEX and JERA have joined forces to explore a project to capture the country’s carbon emissions and transport them to Australia for storage. 

The companies signed an agreement to conduct a joint study to assess the feasibility of establishing the carbon capture and storage (CCS) value chain, which could also help to decarbonise one of the world’s most significant oil and gas projects.  

Saudi Aramco inks agreements with US companies to advance low-carbon energy solutions

Saudi Aramco inked three memoranda of understanding (MoU) agreements with US companies Aeroseal, Spiritus and Rondo amid a visit of US energy secretary Jennifer Granholm with Saudi Arabia’s energy minister HRH Prince Abdulaziz bin Salman al Saud.  

In its latest tie up with the US firms, Aramco’s senior vice president of technology, oversight & coordination, Aramco, Al-Meshari, noted ambitions to achieve net zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050, alongside “opportunities to potentially build a lower-carbon new energy business”. 

Italgas signals AI network boost on 2i Rete Gas acquisition

Italgas is in talks to acquire 100% of the share capital of 2i Rete Gas, the second largest gas distribution player in Italy, in a move that is expected to increase the former’s efforts in digitising its network and adopting further artificial intelligence (AI)-powered functions. 

Speaking during its earnings call on Tuesday CEO Paolo Gallo told analysts the deal would “involve further implementation of artificial intelligence, whose impact will be more effective the more data we have available.”  

Indonesia offers more exploration blocks as optimism picks up in gas sector

Indonesia has offered five areas for oil and gas exploration in its first auction round of 2024 as the country continues efforts to boost domestic production and attract foreign investors.

In the latest round, five work areas consisting of two regular bidding areas and three direct bidding areas are being offered, the country’s energy ministry announced on Tuesday.

CoolCo enters into a long-term charter with GAIL

CoolCo has entered into a 14-year Time Charter Party with GAIL for one of the company’s two newbuild LNG carriers currently under construction. CoolCo will deliver the newbuild to GAIL in the Gulf of Mexico, with the 14-year time charter commencing in early 2025.

The Newbuild’s time charter is intended to secure the long-term supply of LNG into the fast-growing Indian market, with GAIL having the option to extend the charter by two additional years beyond the 14-year period. 

DNO completes acquisition of 25% of UK’s Arran Field

DNO ASA announced the completion of the acquisition of a 25% interest in the Arran field on the UK Continental Shelf from ONE-Dyas E&P Limited. The field is operated by Shell UK Limited (44.57%) and was brought on stream in 2021 as a subsea tie-back to the Shell-operated Shearwater A platform.

DNO’s share of production of gas (principally) and liquids from Arran during the first four months of 2024 averaged 3,150 boe/d, up from the 2,000-2,500 boep/d projected at the transaction announcement in February.

Argentina's YPF to build $2.5 billion pipeline to unlock Vaca Muerta shale oil exports

Argentina's YPF is moving forward with a USD 2.5 billion pipeline project crucial for exporting crude oil from the vast Vaca Muerta shale formation in Patagonia, Bloomberg reported on Friday, May 10, 2024. YPF secured environmental approval for the Vaca Muerta Sur pipeline and is seeking bids for construction.