Gas Matters Today | news roundup | w/c 21 June 2021

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International

Ministers are to take charge of negotiations ahead of the UN Framework Convention on Climate Change [2]in Glasgow this November, after informal talks failed to yield any breakthroughs. After last year’s conference was cancelled due to Covid-19, delegates are under increasing pressure to decide how to implement parts of the 2015 Paris Agreement.

Schlumberger says it has become the first oil services firm to set a Scope 3 GHG emissions reductions target [3] in a bid to tackle end-user emissions from its customer base. The announcement was made along with a pledge to achieve net-zero emissions by 2050.

​Africa

Mozambique – The Southern African Development Community has agreed to deploy troops to help tackle [4]a rising Islamist insurgency [4] in northern Mozambique, two months after Total declared force majeure on the Mozambique LNG project amid the “evolution of the security situation”.

South Africa – The environment ministry has refused approvals to Turkey’s Karpowership for three planned LNG-to-power projects [5] to alleviate chronic domestic power shortages, despite the firm having emerged victorious in a South African electricity auction.

Tanzania – Energy minister Medard Kalemani told stakeholders last week that the government is aiming to conclude negotiations with Shell and Equinor [6] over key agreements underpinning the proposed Tanzania LNG development by October.

​Asia Pacific

Japan – Shareholders in Sumitomo have rejected a climate-focused proposition [7] by activist fund Market Forces to align its business with the Paris Agreement, after the Japanese trading house revised its climate policy in a bid to quell the activist threat.

Japan pledged USD 10 billion in [8]support for energy projects in Asia [8] – including LNG and renewables – at a meeting of the Association of Southeast Asian Nations last week, during which participants also endorsed developing a regional gas market and CCUS.

Japanese utility KEPCO last week launched the process of restarting its 826-MW Mihama Nuclear Power Plant [9], after the facility was forcibly shut down more than a decade ago in the wake of the Fukushima Daiichi nuclear disaster.

​Australasia

Australia – Developers of the USD 36 billion AREH green [10]hydrogen export mega-project [10] in Western Australia have said they will proceed with design and engineering work despite the federal government having rejected an application for environmental permits.

​Central & South America

Suriname – Qatar Petroleum has extended its footprint in the prolific Guyana-Suriname Basin after winning exploration rights [11]for two offshore blocks [11] in Suriname’s latest upstream licensing round as part of a consortium with operator TotalEnergies and Staatsolie.

​Europe

EU – A proposed directive under the FuelEU Maritime initiative has set out emissions targets that appear to promote LNG [12] as a bunker fuel, according to a draft leaked from the European Commission.

Germany – Gazprom’s Switzerland-based holding company for the Nord Stream 2 pipeline [13]has submitted a request [13] to German regulator Bundesnetzagentur for a “precautionary certification” as an independent system operator.

Ireland – New Fortress Energy is reportedly seeking to reapply for planning permission for the proposed 5 Bcm/year Shannon LNG import terminal [14], weeks after Ireland’s environment minister said it would be inappropriate for such projects to proceed pending a review of national energy security.

Norway – Seven companies including Equinor, Shell and OMV were offered stakes in four production licences [15] in Norway’s 25th licensing round last week, however, the round saw less interest from oil and gas companies than in previous years.

​Middle East

Qatar – Qatar Petroleum has received double the bids required for its 32 mtpa North Field East LNG expansion project [16] both for equity and SPAs, Qatari energy minister and CEO of QP Saad Sherida Al-Kaabi told a televised panel debate last Wednesday.

​North America

US – ExxonMobil is expected to place 5-10% of its US workforce on performance review [17] plans, under which employees may be forced to leave their jobs if they fail to meet their manager’s targets, according to reports.

Devon Energy – one of the 10 largest methane and CO2 emitting US producers in 2019 – has set targets to reduce emissions by 2030 with a view to achieving net-zero Scope 1 and 2 emissions by 2050 [18].

US LNG player Tellurian has filed an application with the Federal Energy Regulatory Commission to construct and operate a 37-mile interstate pipeline to serve growing demand in Louisiana [19].

​South Asia

India – Top domestic LNG importer Petronet and compatriot Indian Oil have reportedly returned to the LNG spot market [20] after a two-month hiatus amid spiralling Covid-19 cases, signalling an improving demand outlook in the world’s fourth largest LNG import market.

Indian conglomerate Reliance Industries has outlined plans for an electrolyser giga-factory to support green hydrogen production [21] as part of a USD 10 billion energy investment over the next three years, which also encompasses solar energy, battery storage and fuel cells.