25 April 2024
Gas Matters Today | news roundup | w/c 6 September 2021
Publication date: 13 September 2021
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South Korean logistics company Hyundai Glovis is set to enter the gas shipping market after the firm announced the signing of a transportation contract with trading giant Trafigura to begin shipping ammonia and LPG from 2024 [2], when the Asian company will take delivery of two new ships.
Maersk has bought a minority stake in California-based green energy start-up WasteFuel [3], the Danish shipping giant confirmed last week. The investment is in line with Maersk’s ongoing efforts to source green fuel as it looks to decarbonise its shipping fleet.
South Korea – Australia’s Woodside has joined five South Korean companies to establish new company HyStation, with the aim of building and operating hydrogen refuelling stations for public buses [4] in South Korea.
Papua New Guinea – The PNG government has awarded state-owned Kumul Petroleum rights to develop the Pandora gas field [5], with the nation’s petroleum minister stating that the award marks a “significant step forward” in the government’s “take back PNG” agenda.
Santos has moved a step closer to wrapping up a merger with compatriot Oil Search [6] after the pair confirmed the signing of a merger implementation deed (MID), but potential barriers remain after PNG government officials raised concerns over the merger.
Denmark – Norway’s Noreco has partnered with TotalEnergies, Orsted and other members of the Danish Underground Consortium to progress the Bifrost CCS project in the Danish North Sea [7], which will need state support from Denmark to reach FID.
Germany – The final segment of the two-string Nord Stream 2 pipeline [8] has been welded and lowered onto the seabed in German waters, Gazprom holding company Nord Stream AG has confirmed, reiterating a goal to start operating the pipeline by the end of 2021.
UK – Two small UK gas and power suppliers went out of business [9] last week after falling victim to soaring wholesale prices, reflecting a growing risk that more suppliers may file for bankruptcy this winter.
Iraq – TotalEnergies is set to make the biggest investment by a Western company in Iraq [10], signing four contracts worth USD 27 billion, which includes producing associated gas for the power sector and a 1 GW solar project, according to the country’s oil ministry.
UAE-based consortium Pearl Petroleum has secured financing from US state-owned International Development Finance Corporation to support the Khor Mor gas project in Iraq’s Kurdistan Region, with developers saying a planned USD 630 million expansion [11]is now fully financed [11], meaning it is on track for 2023 completion.
Lebanon – Egypt has agreed to resume suppl [12]ying Lebanon via Syria and Jordan [12] following a 10-year hiatus to help boost the crisis-ridden country’s electricity supply, but repairs to the 10 Bcm/year Arab Gas Pipeline are required before exports can commence.
United Arab Emirates – Abu Dhabi National Oil Company (ADNOC) has announced plans to offer a minimum 7.5% stake in its drilling unit through an IPO [13] expected to be completed on the Abu Dhabi Securities Exchange in early October.
US – Chevron is looking to sell operated [14]oil and gas assets in the Eagle Ford basin [14] acquired from Noble last year, with the move potentially continuing the M&A wave in the US shale sector this year.
ExxonMobil has signed its first agreement with an independent validator to begin the certification process for methane emissions from gas [15] produced at its Poker Lake facilities located in the New Mexico portion of the Permian basin.
US LNG player Cheniere unveiled its long-term capital allocation plan last week, setting out its aim of achieving an investment grade balance sheet while continuing to invest in liquefaction [16] growth opportunities at its two Gulf Coast LNG plants.
The Energy Information Administration expects Henry Hub spot price [17]s to average USD 4/MMBtu [17] for the remainder of 2021, the agency said in its latest short-term outlook.
California gas prices are at their highest since February, with volumes in the Golden State trading [18]at up to USD 20/MMBtu [18] last week – roughly in line with Asian spot LNG – as the anti-fossil fuel state turns to gas to meet power demand during a heatwave.
Chevron and Geneva-based trading house Mercuria have agreed to form a joint venture that will own and operate American Natural Gas and its US network of 60 CNG stations in a move that will enable Chevron to rapidly grow its renewable gas value chain [19].
A House Democratic draft plan within US President Joe Biden’s USD 3.5 trillion budget proposal has proposed to exclude gas from funding designed to reward electricity providers [20] for switching to clean electricity.