05
Oct
2020

Gas Matters Today | news roundup | w/c 28 Sep 2020

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International

Saudi Aramco has shipped what is claimed to be the “world’s first” cargo of blue ammonia to Japan after an initiative demonstrated the technical viability of capturing carbon emissions during the conversion of gas into hydrogen and putting them to economic use, as well as the potential to ship ammonia to Asia for emissions-free power generation.

Growing interest in clean hydrogen is spurring new technologies and chemical processes that promise to derive zero-emissions H2 from gas that is cleaner than conventional steam methane reforming and cheaper than electrolysis powered by renewables.

Shell has confirmed plans to lay off up to 11% of its workforce to cut spending, warned that lower oil prices will hit Q3 margins in its Integrated Gas business segment, and released new scenarios exploring how society’s response to the Covid-19 pandemic could impact energy consumption in the 2020s.

Seadrill CEO Anton Dibowitz has stepped down without providing a reason for his abrupt departure, while the offshore drilling contractor remains locked in debt restructuring talks with its major creditors.

Total has laid out ambitions to become a “world leader” in renewables as part of a new 2030 strategy designed to get the company on track to achieve its ‘net zero’ emissions pledge by 2050.

Occidental Petroleum has offloaded its entire Colombian onshore position to private equity player The Carlyle Group for USD 825 million, adding further impetus to the US oil and gas independent’s debt reduction efforts.

Africa

Mauritania / Senegal – BP and Golar LNG have settled their quarrel over the British oil major’s force majeure claim regarding the connection date of the vessel conversion for the Tortue FLNG project offshore Mauritania and Senegal.

Asia Pacific

China – Centrica has signed a 15-year sales and purchase agreement with Shenergy for 0.5 mtpa, starting in 2024, marking the UK firm’s first long-term LNG supply deal with a Chinese customer.

Philippines – Philippine power producer First Gen’s subsidiary FGEN LNG is poised to start construction imminently on its maiden LNG terminal, following the Department of Energy awarding a permit to construct the facility.

Vietnam – Delta Offshore Energy’s mammoth request for proposal seeking 2.5-3 mtpa of LNG netted 50 bids, with all the energy majors and nearly all existing and proposed US Gulf LNG projects submitting bids, Delta confirmed exclusively to Gas Matters Today last week.

Australasia

Australia – After a near decade-long struggle, Santos has received planning approval for the Narrabri coal seam gas project, which the company says can become the “lowest cost source of gas” for NSW and meet up to half the state’s gas demand.

Central & South America

Brazil – Petrobras has disqualified Golar Power’s bid to lease capacity at its Bahia LNG terminal, Brazil’s national oil company has confirmed, citing compliance-related issues.

Ecuador – The government has signed an executive decree to allow private companies to import LNG and hydrocarbons, which Florida-based infrastructure company Sycar described as “good news” for its plans to build Ecuador’s first LNG import terminal.

Europe

UK – The Oil and Gas Authority has said it plans to limit gas flaring and venting in the UK, with a view to halving volumes flared by 2030 after figures showed producers flared and vented 3% of the 1,560 Bcf produced from the UKCS in 2019.

Mediterranean

Israel / Lebanon – Israel and Lebanon have agreed to enter US-brokered talks starting 14 October, aimed at settling their dispute over an 854 sq km slice of offshore territory that both claim in their East Mediterranean exclusive economic zones.

Middle East

Qatar – Baker Hughes has secured a major equipment order from long-time partner Qatar Petroleum to supply multiple main refrigerant compressors for the North Field East expansion project, being executed by Qatargas.

North America

Canada – Canadian LNG player Pieridae Energy has lined up Bechtel to replace KBR as the EPCC contractor for the proposed Goldboro LNG plant after signing a services agreement with LNG engineering heavyweight.

US – Oklahoma-based shale players Devon Energy and WPX Energy have announced the second largest M&A deal in the oil and gas sector since the oil price plunge in April, with Devon to merge with WPX in return for USD 2.56 billion in stock.

The Mountain Valley pipeline, led by Equitrans, moved one step closer to restarting construction after the Army Corps of Engineers reissued stream crossing authorisations and the Norfolk district of Army Corps permitted work to resume on its territory.

US shale player Oasis Petroleum and compatriot oil services firm Superior Energy have become the latest to succumb to the Covid-19 pandemic-induced oil price crash, with both voluntarily filing for Chapter 11 bankruptcy proceedings.

Russia & CIS

Armenia / Azerbaijan – new outbreak of fighting between Azerbaijan and Armenia over the ethnic Armenian enclave of Nagorno-Karabakh is not expected to jeopardise gas and oil shipments from Azerbaijan to Turkey.

Contact the editor:

Sebastian Kennedy
[email protected]

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