Weekly news roundup (20-24 November)

International

Oil heavy-hitters BP, Eni, ExxonMobil, Repsol, Shell, Statoil, Total and Wintershall have committed to reduce methane emissions from natural gas assets around the world, and encouraged others across the natural gas value chain – from production to the final consumer – to follow suit.

Africa

Algeria – With an economy critically dependent on hydrocarbons, declining oil production and the current price environment, Algeria desperately needs to export gas, while continuing to meet the needs of its growing domestic market. Read more in our feature.

Equatorial Guinea – Ophir Energy has delayed a final investment decision (FID) on the Fortuna FLNG project, stating discussions with Chinese banks regarding financing the project have taken longer than expected.

Nigeria – Nigerian National Petroleum Corporation (NNPC) and Chevron have executed the second and final phase of financing for a joint venture project intended to boost domestic oil and gas production in the Niger Delta.

South Africa – Sasol has followed an ongoing trend among integrated energy firms, announcing a new direction based on smaller investments and scrapping plans for potentially more expensive gas-to-liquids (GTL) projects and Canadian shale gas projects.

Asia Pacific

China – Chinese shipyard and engineering group Wison has teamed up with compatriot power equipment manufacturer Shanghai Electric to develop its floating LNG power generation barge concept.

India – India is a huge growth market for electricity, but the high operating costs of LNG-to-power compared to coal and renewables could leave gas far behind in the mix, according to the US-based Institute for Energy Economics and Financial Analysis (IEEFA).

Pakistan – The country’s second LNG terminal developed by GasPort (PGPL) was inaugurated on Monday, according to minority shareholder Trafigura.

Australasia

Australia – Utility firm AGL Energy has gone to market for LNG to supply its proposed import terminal in Victoria, issuing a request for proposals from global suppliers for a reported 1 mtpa.

US & Canada

Canada – FortisBC has exported British Columbia’s first LNG, after shipping an ISO container – containing 50 GJ of gas – to China, the company said this week.

US – Environmental lobby group Sierra Club is taking the Federal Energy Regulatory Commission (FERC) to task over its practice of “delaying” requests to reconsider gas pipeline approvals until it is too late in practical terms to stop construction.

EcoPetrol has picked up four blocks in the US Gulf of Mexico as part of the Lease Sale 249.

Europe

Germany – Fortum’s latest offer for Uniper, valued at around EUR 8 billion, has been rebuffed by the German company, however Uniper is willing to continue talks.

Italy – Italy’s largest utility Enel will focus 80% of its 2018-2020 capital expenditure on mature markets in Italy, Iberia and North and Central America, where it aims to upgrade networks and grow renewable power generation.

Norway – Aker BP has formed two new drilling and well alliances with Halliburton, Maersk Drilling and Odfjell Drilling.

Poland – Poland’s state-run energy company PGNiG has signed central and eastern Europe’s first mid-term US LNG supply contract in a five-year deal with Centrica, which will divert some UK-bound volumes from Cheniere’s Sabine Pass plant to Poland.

Spain – Spanish gas-fired power plants are enjoying a fleeting period of strong demand in the country’s power mix thanks to nuclear outages in France and a prolonged drought that has curtailed Iberian hydro generation.

UK – North-Sea focused minnow Serica Energy has snapped up BP’s stakes in the Bruce assets in a deal that will catapult Serica to being one of the “leading mid-tier independent oil and gas producers on the UK Continental Shelf”.

Wood Group has commenced its contract to act as operating partner of the Scottish Area Gas Evacuation (SAGE) system and Beryl pipeline, on behalf of Ancala Midstream Acquisitions.

Ineos has snapped up majority stakes in two exploration licences in the Northern Gas Fields north of the Shetland islands, including four deep-water oil and gas assets in the Lyon cluster which could lead to development of a new gas hub.

The UK government has acquiesced to calls from industry lobbyists to allow the tax history of North Sea oil and gas fields to be transferred to new owners.

The UK’s latest offshore licensing round has attracted 96 bids for roughly a third of the 813 blocks across the main oil and gas producing areas of the UK Continental Shelf (UKCS) that were on offer under the 30th licensing round.

Latin America & Caribbean

Small-scale LNG is becoming increasingly competitive in power generation and bunkering in the Caribbean and Latin America against dirtier and historically cheaper oil products like heavy fuel oil (HFO), according to US shipping firm Crowley.

Argentina – Argentina is to extend its federal subsidy for domestically-produced gas to the country’s southernmost basin in a bid to accelerate output, despite criticism of the policy from state-owned energy company YPF.

Bolivia – State-owned energy company YPFB has concluded two development contracts which could boost gas output by 21 MMcf/d by the early 2020s, helping the country meet the rising gas demand of its neighbours.