Weekly news roundup (12-16 March)

Analysis

Prices on major European gas hubs rose on forecasts that a second cold snap – the ‘Beast from the East 2’ – was poised to arrive while UK and Dutch storage levels remain low.

UK Prime Minister Theresa May’s assertion that her country will source gas from states other than Russia will be tested in the coming days as temperatures plummet.

International

More ambitious global climate policies could lead to tough new legal and regulatory measures that undermine Shell’s core business, the Anglo-Dutch major warned in its 2017 Annual Report.

US & Canada

US – Natural gas lobby group INGAA is seeking to qualify for a concession that would exempt gas pipelines from upcoming steel import tariffs announced by US President Donald Trump.

Sempra Energy CEO Debra Reed plans to retire in December after 40 years at the company and will be replaced by current CFO Jeffrey Martin, the company has confirmed.

Cheniere is looking to construct a third marine berth at the Sabine Pass LNG plant after the company filed a request with the Federal Energy Regulatory Commission to start a pre-filing review.

LNG developer Tellurian is taking advantage of regulatory delays to look into increasing its upstream holdings ten-fold by acquiring a large swathe of acreage in the Haynesville shale play in Louisiana.

A court has ruled against New York’s attempt to block the Valley Lateral pipeline project that would transport gas to a power plant, potentially setting a precedent for similar projects.

Africa

Algeria – State oil company Sonatrach is to invest USD 250 million in the Tinrhert field to lift the country’s flatlining annual production by a reported 20 MMcm/day.

Cameroon – The world’s first converted floating liquefaction vessel – the Hilli Episeyo – has produced first LNG offshore Cameroon, according to Norwegian outfit Golar LNG.

Egypt – Eni has boosted output at the offshore Nooros field after bringing a 13th well online, which will help curb Egypt's historic reliance on LNG imports.

Reports indicate BP plans to offload its assets in Egypt’s mature oil fields and shift its focus to developing the country’s gas reserves.

Nigeria – Amnesty International is asking the Nigerian government to re-open investigations into 89 oil spills, claiming oil majors Shell and Eni misled regulators.

Asia Pacific

Bangladesh – Bangladesh’s largest independent power producer Summit Power International is set to add further regasification and generation capacity after agreeing preliminary terms with Mitsubishi for an LNG-to-power project.

China – Shell has reportedly reached a final investment decision on the second phase of the Changbei tight gas play and is said to be preparing to build more wellpads, a liquefaction facility and pipeline infrastructure.

India – GAIL has been dealt a blow after India’s government cancelled the Surat-Paradip pipeline project, which would have been the first to connect the west and east of the country.

Japan – Tokyo Gas has extended its long-standing relationship with Malaysia after signing a heads of agreement for a new ‘flexible’ 13-year LNG supply deal with national oil and gas company Petronas.

South Korea – Monaco-based shipper Gaslog has placed an order with Samsung Heavy Industries for a newbuild 180,000 cm LNG carrier, which is expected to be completed in mid-2020.

Daewoo Shipbuilding & Marine Engineering has won a USD 3.7 billion contract to build two new LNG carriers for an Oceania-based shipowner.

Australasia

Australia – BHP has waived its pre-emption rights and has given the green light to Woodside to complete the proposed deal to buy ExxonMobil’s 50% stake in the Scarborough gas field off the coast of Western Australia.

New Zealand – Austria’s OMV has increased its gas interests in New Zealand following a USD 578 million deal with Shell to acquire the country’s largest gas-producing field, Pohokura.

Europe

Germany – E.ON and RWE have shaken up Germany’s power sector once again after announcing a complex and far-reaching asset swap deal that effectively marks the end of integrated utilities in Europe’s largest economy.

Netherlands – The government is rolling out a multi-billion euro plan to reduce CO2 emissions, including disconnecting homes from the gas grid, using geothermal heat and reducing emissions from agriculture and industry.

Norway – Statoil and partners have agreed to invest USD 644 million to bring the Askeladd field online in the Snohvit development and supply gas and condensate to the Hammerfest LNG plant.

National oil and gas company Statoil plans to rename itself Equinor in May, in a major corporate rebranding, aimed at supporting “strategy and development as a broad energy company”.

Switzerland – Commodity trading house Vitol has appointed a new CEO to replace Ian Taylor who held the top job for more than 20 years.

Latin America & Caribbean

Ecuador – Quito has reportedly launched a tender for oil and gas blocks already in production in a bid to revive the country’s economy.

Mediterranean

Cyprus / Israel / Egypt – Shell is advancing talks to purchase gas from Cyprus’ Aphrodite and Israel’s Leviathan fields to supply under-utilised liquefaction capacity in Egypt, most likely Idku LNG, Cypriot energy minister Yiorgos Lakkotrypis has said.

Russia & CIS

Russia – Gazprom exported record levels of gas to Europe in February when a cold snap hit the continent, delivering around 7% more than last year at 17.4 Bcm.