04
Oct
2021

Gas Matters Today | news roundup | w/c 27 September 2021

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Europe

Germany – The country’s Socialist Democrats (SPD) defeated outgoing Angela Merkel’s ruling centre-right Christian Democratic Union (CDU) party in the nation’s general election. The Green Party is expected to be part of a new coalition government – a move which could hasten Germany’s coal phase-out.

Central & South America

Peru – The country’s prime minister has threatened to nationalise the Camisea gas field unless the foreign partners in the project agree to pay more royalties to the state. The announcement is likely to prompt oil and gas companies to reconsider any new projects in the South American country.

North America

US – New Jersey has downed another natural gas pipeline project following the PennEast Pipeline Company announcing it is abandoning the development of a proposed 1.1 Bcf/d capacity pipeline, due to regulatory hurdles in the state.

Asia Pacific

Japan – JERA has bought a 27% stake in Aboitiz Power for USD 1.58 billion in a bid to expand its presence in the Philippines’ growing power sector. Running parallel to the purchase, JERA and Aboitiz said they will explore developing LNG-to-power projects.

China – State owned oil & gas producer CNOOC has announced its intention to raise over USD 5 billion by issuing new shares on the Shanghai stock exchange after it was barred from the New York Stock Exchange (NYSE) seven months ago. CNOOC said it will invest the capital in major offshore oil and gas projects at home and abroad.

It is anticipated that China will boost its gas imports over the coming weeks to rectify severe power shortages the country is reportedly undergoing due to rising demand for electricity and a shortage of coal, triggered by soaring prices.

The Shanghai Petroleum and Natural Gas Exchange has launched a spot pricing index for LNG imports to better reflect demand and supply in China and boost transparency. The first daily index of its kind in the country could become an alternative to the Asian spot LNG benchmark, the Japan Korea Marker (JKM).

North America

Canada – Construction work at TC Energy’s delayed Coastal GasLink pipeline project in British Columbia was halted last week due to First Nations groups protesting at the site. Members of the First Nations groups opposed TC Energy’s plans to drill underneath a river and accused the midstream firm of destroying indigenous artifacts. 

International

TotalEnergies has announced its intention to ramp up its energy production to 2030 by 30% as part of a strategy update, with half of the growth coming from electricity, chiefly renewables, and half from LNG and natural gas. The company reiterated its ambition to turn into one of the world’s top five renewable power producers.

Qatar Petroleum has signed a 15-year sales and purchase agreement to supply 3.5 mtpa of LNG to China’s CNOOC as China is expected to boost gas and LNG imports ahead of its 2060 net-zero strategy. The Gulf nation recently reserved eight shipbuilding slots and eight auctions for shipbuilding in Shanghai, contingent on China signing up for more LNG from Qatar.

Geneva-based commodity trader Gunvor revealed record sales over the first six months of 2021, however the company’s H1’21 net income fell 17.5% compared to the first six months of 2020. Bumper sales of crude oil and gas were the reasons behind the record volumes with gas accounting for 40% of the 118 mt of total volumes traded in H1’21.

Rosneft penned separate carbon management pacts with ExxonMobil and Equinor to examine carbon capture and storage and low-carbon fuel projects. As part of the deal with Equinor, the Russian firm agreed to examine the use of wind power.

TotalEnergies along with compatriots Air Liquide and VINCI, and other large international companies have announced they will sponsor the establishment of the world’s largest fund exclusively targeting clean hydrogen infrastructure. The fund is looking to raise EUR 1.5 billion (USD 1.74 billion) and has so far secured initial commitments of EUR 800 million.

Australasia

Australia – Adelaide-based oil and gas producer Beach Energy has signed a heads of agreement with BP Singapore, under which BP’s subsidiary has agreed to acquire 3.75 mt of LNG from Beach’s Waitsia gas project for a five-year term. Gas from Waitsia will be liquified at the North West Shelf LNG plant, which BP holds a 16.7% stake in.

The Australian government has developed an Emissions Reduction Fund (ERF) method to credit CO2 abatement from new carbon capture and storage (CCS) projects, awarding large-scale CCS with tradeable Australian Carbon Credit Units. CCS operators will be free to sell ACCUs to the Australian government at bi-annual auctions or sell them on the private voluntary market.

Papua New Guinea – ExxonMobil has reportedly signed a Heads of Agreement (HoA) with PNG’s government to proceed with the P’nyang gas field development. The agreement comes two years after negotiations ceased after the US oil major rejected the terms presented by PNG’s government.

Africa

Mozambique – Start-up at the Mozambique LNG project could commence in 2026 if work on the LNG plant restarts early next year, according to TotalEnergies CEO Patrick Pouyanne. First LNG from the project, in which TotalEnergies holds a 26.5% stake, was previously scheduled for 2024.

South Africa – The shortlisted bidders under the country’s emergency power auction have been granted until 31 January 2022 to reach financial close – marking the second extension granted – according to reports.

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