Weekly news roundup (5-9 February)

Corporate results

The importance of LNG to Shell’s earnings and cash flow following its acquisition of BG in 2016 was evident at the company’s financial results, with output and sales hitting new records in 2017 and realised prices significantly higher.

BP enjoyed its most successful year for exploration since 2004 and its strongest for production since 2010 last year, the British major said, as it reported bumper full year 2017 profits driven by higher prices and increased output.

Statoil returned to the black in 2017 and managed to achieve a new production record which it expects to break this year, the Norwegian company said on Wednesday.

Total is reaping the rewards of a corporate transformation it embarked upon in the wake of the 2014 oil price crash, with all key performance indicators showing marked improvements in 2017 full year results.

International

Trillions of dollars of oil and gas investment will be needed to meet global needs out to 2040 even if consumption falls sharply to meet challenging climate goals, ExxonMobil has claimed in its first Outlook for Energy forecast.

Total has signed a long-term charter with Mitsui OSK Lines for a huge LNG bunker vessel to refuel next-generation mega-containerships on Europe-Asia trade routes.

Bermuda-based Hoegh LNG’s Hoegh Giant – an FSRU with 750 MMcf/d regas capacity – has begun a three-year contract with Spain’s Gas Natural Fenosa and will transit the Panama Canal en route to Cheniere’s Sabine Pass LNG plant.

US & Canada

US – The ‘shale gale’ shows no sign of abating and will only intensify over the next three decades, updated long-term forecasts by the Energy Information Administration indicate.

President Donald Trump may speak about having ended the ‘war on coal’, but the state-funded EIA sees gas and renewables racing ahead for the next 30 years based on their competitive cost, not green policies.

ExxonMobil added 2.7 Bboe of proved oil and gas reserves in 2017, replacing 183% of production, the supermajor said on Friday.

Africa

Egypt – Development of the Zohr gas field, including the drilling of 20 wells, may be completed ahead of schedule by early 2019, instead of the end of the year as initially planned, reports suggest.

Ghana – US energy company Hess Corporation decided not to develop offshore interests in the west African state, saying in Q4’17 results that the firm is “currently evaluating options”.

Mozambique – Officials in Mozambique have approved the development plan for the Golfinho-Atum offshore gas field that will supply feedstock to the Mozambique LNG project, operator Anadarko has said.

Tanzania – London-listed Aminex has received a boost in its quest to monetise its Tanzanian asset base after receiving a resource upgrade at the onshore Ntorya gas field.

Asia Pacific

China – China National Petroleum Corporation has signed LNG sales and purchase agreements with Cheniere Energy for “approximately” 1.2 mtpa with a portion beginning in 2018 and the balance from 2023.

Japan – Tokyo Gas and four partners have announced plans to develop an LNG terminal at Sumitomo Chemical’s plant in Ehime prefecture on Shikoku Island in south-west Japan to supply gas to the plant’s power stations.

Myanmar – The Ministry of Electricity and Energy has issued a “notice to proceed” to four gas-fired power projects, three of which would run on imported LNG, according to local media.

Australasia

Australia – Gas producer AWE has jumped horses and backed a takeover offer from Japanese trading giant Mitsui, whose bid price appears to have trumped two other potential suitors.

Origin Energy has slashed estimated coal seam gas reserves at the Ironbark field in Queensland after an assessment deemed some volumes “unrecoverable”.

Europe

The European Investment Bank has approved “in principle” a USD 1.8 billion loan to the Trans-Adriatic Pipeline (TAP) project, the most advanced section of the Southern Gas Corridor.

The European Commission has approved state aid schemes for electricity markets in Belgium, France, Germany, Greece, Italy and Poland, and finished investigating Germany’s coal and lignite reserve.

Cyprus – Italian major Eni confirmed of a “promising” offshore gas discovery in the Cyprus Exclusive Economic Zone, which local politicians described as “Zohr like”, while heightened hostile rhetoric emerged from Turkey.

Germany – Germany has opened the door to a possible coal phase-out after the country’s grand coalition partners pledged to decide in 2019 when the power source should exit the generation mix.

Latin America & Caribbean

Guyana – Total plans to acquire 25-35% interests in two offshore exploration licenses – the Canje and Kanuku blocks – and jointly develop the basin with ExxonMobil, pending regulatory approval.

Mexico – Geoscience firm TGS has received authorisation from oil regulator CNH to process and deliver well data products for exploration companies working offshore and onshore.

Middle East

Abu Dhabi / Dubai – National oil company Adnoc has renewed a long-term gas supply agreement with the Dubai Supply Authority to help meet Dubai’s energy needs.

Iran – Iran’s first floating LNG project was cast into doubt after the Iranian National Oil Company cancelled its agreement with developer IFLNG to supply the project with gas, a spokesperson told Gas Matters Today.

Lebanon – Eni and Total on Friday signed two exploration and production agreements covering deepwater blocks, after winning rights in the country’s first competitive licensing round in January 2017.