19 April 2024
Gas Matters Today | news roundup | 20-24 Jan 2020
Publication date: 27 January 2020
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The world’s largest services firm Schlumberger put on a brave face after reporting a USD 10 billion loss for 2019 [1] largely related to acquisitions in the slowing US shale market, saying it would continue to target revenue growth internationally over the coming year.
The oil and gas industry is squandering a crucial opportunity to capture vast volumes of CO2 [2] currently being vented from gas processing plants and liquefaction operations around the world, according to a report by the IEA.
IOCs might be better off listing their ‘new energies’ divisions separately [3] in order to address the “triple challenge” of tapering demand, shareholder demands for sky-high dividends, and growing calls to decarbonise, Morgan Stanley said in a research note last week.
Nigeria – Nigeria LNG has re-contracted the lion’s share of contracted capacity at its Bonny Island LNG plant that is expiring by 2021, after NLNG stakeholder Total agreed a 10-year deal [4] to lift 1.5 mtpa.
China / Malaysia – State-owned Shenergy Group has turned to Malaysia’s Petronas for a long-term LNG supply deal [5], just days after China and the US signed a first phase trade deal calling for a huge ramp-up in purchases of US energy exports.
Australia – Resource minister Matt Canavan has claimed the Australian Domestic Gas Security Mechanism has helped lower prices [6], conveniently ignoring the real driver – the plunging Asian spot LNG price – as he published a review of the 2017 legislation.
EU – There will be no “new” funding for gas infrastructure [7] under the EU’s EUR 1 trillion Green Deal finance proposals, even for projects that facilitate coal-to-gas switching, the European Commission has confirmed. Meanwhile, LNG industry executives hoping for insight into the E [8]C’s vision for gas under the Green Deal [8] were left none the wiser after attending an EC forum on the topic in Brussels.
Norway – Norwegian shipping firm Eidesvik has signed a five-year contract with long-term partner Equinor to convert offshore supply ship Viking Energy into the first ammonia-powered long-distance vessel in the world [9] by 2024.
Cyprus / Turkey – Cyprus last week acc [10]used Turkey of illegally obtaining seismic data [10] on a potentially gas-rich offshore block licensed to Eni and Total, but then retracted the allegations.
Israel / Jordan – Jordan’s lower house has passed a draft law prohibiting gas imports from Israel [11], but the bill may be obstructed by conditions in agreements between Jordanian companies and US operator Noble Energy.
Iran – Iran has cut back on pipeline exports to neighbouring Iraq [12] as it is struggles to meet domestic demand, reports suggest, despite announcements from Tehran of rising production capacity from the South Pars field and a dip in exports to Turkey.
Iraq – The government has authorised the Ministry of Oil to sign six gas exploration contracts [13] originally awarded almost two years ago, as the government seeks to renew its US sanctions waiver on vital Iranian energy imports.
UAE – Abu Dhabi National Oil Company has signed a framework agreement with key foreign partner Eni to explore collaboration in carbon capture utilisation and storage (CCUS) [14] in order to improve hydrocarbon recovery.
Egypt – Newly gas-rich Egypt needs outlets for surplus supply so Cairo is seek [15]ing 12-18-month LNG export deals [15] to lock in prices at or above breakeven to shield against a cratering LNG spot market, Egyptian oil minister Tarik El Molla has said.
US – Leading US shale services provider Halliburton racked up a net loss of USD 1.7 billion [16], after the company’s core North American revenues crashed amid an intensifying deceleration in fracking activity compounded by bearish commodity prices.
Houston-based engineering firm McDermott International has entered voluntary bankruptcy [17] via a “prepackaged Chapter 11 process” that has the backing of more than two-thirds of creditors, the company has said.
The US oil and gas industry is set to hit record high production again in February [18], signalling further pain for gas producers already scrambling to switch from pumping gas to oil after front-month Henry Hub prices hit an almost four-year low.
Midstream outfit Enbridge has signed a preliminary deal to supply pipeline capacity to the Annova LNG facility [19] in Brownsville, Texas, months after Enbridge provisionally agreed to help build a feedgas line to NextDecade’s Rio Grande LNG plant in the same town.
FERC commissioner Bernard McNamee has downplayed fears that the body might again lose its quorum [20] after revealing he will leave in June, adding he will serve “later… if needed”.
Shale producers breathed a sigh of relief last week after the Pennsylvania Supreme Court struck down a ruling that a driller might have trespassed [21] on neighbouring property, reinstating the so-called ‘rule of capture’ to defend such cases.
Russia – Russian LNG champion Novatek has reportedly delayed the launch of Yamal LNG’s fourth liquefaction train [22] by several months due to alleged design errors that left pipelines unsuitable for use in sub-zero Arctic temperatures.
India – Top distributor GAIL has achieved a first for the nation after trucking LNG from the west of the country [23] to the gas-starved east, in a move that could help build regional demand ahead of a major pipeline to the east is completed.