Week 101: Natural Gas Report
According to Iranian news agencies, a gas condensate pipeline at a gas refinery in southwestern Iran exploded on Thursday after being hit by an excavator, but no one was hurt and the line was shut down.
There were no injuries, and rescue and operations personnel are on the scene, and the line has been cut off. A similar report was published by the semi-official Fars news agency.
According to the semi-official YJC news agency, Mohammad Asgari, a spokesman for the National Iranian Gas Company (NIGC), the accident had no impact on gas production. Iran has the world's second-largest natural gas reserves, but production has lagged behind demand for heavily subsidized gas, owing in part to a lack of investment and foreign partners such as the United States.
According to the US Energy Information Administration, dry natural gas production in the United States will rise from 95.1 billion cubic feet per day (Bcf/d) in October 2021 to 97.5 Bcf/d in December 2022, a 2.4 Bcf/d increase (2.5 per cent).
If realized, the forecast production level for December 2022 will surpass the previous high of 97.2 Bcf/d set in November 2019. Before COVID-19 was declared a pandemic, and before COVID-19-related declines in demand resulted in production declines to a low of 87.3 Bcf/d in May 2020.
The November 2019 record was set. Since October 2020, dry natural gas production has been steadily increasing. Except for February, when a winter storm severely impacted oil and natural gas production in Texas, natural gas production remained above 92.0 Bcf/d in 2021.
Oil prices sank 3% to below $80 a barrel on Friday, as rising COVID-19 cases in Europe slowed the economic recovery, while investors considered the possibility of big economies releasing oil reserves to lower prices. Brent futures slid $2.35, or 2.9 percent, to $78.89 a barrel in January.
On its penultimate day as the front-month, U.S. West Texas Intermediate (WTI) crude slid $2.91, or 3.6 percent, to $76.10. WTI was down around $2.65, or 3.4 percent, to $75.78 in January.
This will shortly be the US front-month. For the first time since March 2020, both benchmarks fell for the fourth week in a row.
Following a competitive international tender process, Excelerate and Petróleo Brasileiro S.A. (Petrobras) signed the lease contract for TR-BA on September 28. Excelerate Energy Comercializadora de Gás Natural Ltda., Excelerate's wholly-owned subsidiary, expects to sell natural gas to a diverse portfolio of customers in this newly opened market.
Following the success of the Moheshkhali Floating LNG Terminal in Bangladesh, Excelerate's streamlined terminal operations are the latest example of the Excelerate Flexible Integrated Terminal (E-FIT) offering.
Excelerate has been providing regasification services to Petrobras' LNG terminals in Bahia, Guanabara Bay, and Pecém since 2012. At the Guanabara Bay LNG Regasification Terminal in 2020, the company's FSRU Experience set an industry record for send-out capacity, reaching 1.06 billion ft
According to GlobalData, natural gas production from the Marcellus and Utica shale plays in the United States will surpass 42 billion ft3/d by 2025, assuming gas prices remain above US$3.5 per million Btu.
Despite the fact that North America is the largest gas producer and supplies roughly 40% of total natural gas production in the US, no new pipelines are expected to come online after 2023, according to the leading data and analytics company.
"Environmental opposition in Pennsylvania, home to the majority of Appalachia basin production, created an onerous and exhausting approval process for pipeline operators," says Svetlana Doh, Senior Upstream Oil & Gas Analyst at GlobalData. Pipeline projects on the Atlantic Coast and in the PennEast have been canceled due to environmental concerns.
Sembcorp Marine Ltd has signed a contract with Bechtel Overseas Corporation (Bechtel) for module assembly of the second LNG train to be built at the Pluto LNG Project through its wholly-owned subsidiary, Sembcorp Marine Offshore Platforms Pte. Ltd. (SMOP).
Pluto Train 2 will be completed in 2024, and Bechtel and SMOP will form an integrated management team to oversee the module assembly program.
Pluto LNG is a single onshore LNG processing train that processes gas from the Pluto and Xena offshore fields and is located on the Burrup Peninsula near Karratha in Western Australia's northwest. Since its inception in 2012, Woodside has operated Pluto LNG in a safe and reliable manner. Pluto Train 2 will increase Pluto's current processing capacity by about a third.
Energy Transfer's midstream and gas transportation systems will be significantly strengthened by the addition of Enable's natural gas gathering and processing assets in Oklahoma's Anadarko Basin.
Energy Transfer now owns and operates more than 114,000 miles of pipelines and related assets in all of the major U.S. producing regions and markets, spanning 41 states, solidifying its midstream leadership position. The transaction is immediately accretive to Energy Transfer and contributes to the company's deleveraging efforts.
It also includes significant cash flows from fixed-fee contracts that are based on fees. In addition, excluding potential financial and commercial synergies, the combined operations of the two companies are expected to generate annual run-rate cost and efficiency synergies of more than $100 million.
Primoris Services Corporation has announced two new Master Service Agreements (MSA) for gas distribution projects in California, totaling more than $225 million. The Utilities Segment was in charge of securing the MSAs.
"We've had long-standing relationships with both major utilities for over forty years," Tom McCormick, President and Chief Executive Officer of Primoris, said. "These multi-year master service agreements strengthen those ties and extend our MSA portfolio through 2026," says the company.
A two-year MSA for a gas distribution program in northern California is the first agreement. A five-year MSA for a gas distribution program with a major utility customer in southern California is the second agreement.
UTM Offshore and the African Export-Import Bank (Afreximbank) have signed a memorandum of understanding (MoU) in support of a floating LNG (FLNG) project. On December 7, UTM CEO Julius Rone and Afreximbank president and chairman Benedict Oramah signed a Memorandum of Understanding, according to a company statement.
The agreement covers a $2 billion capital raise. The bank also pledged $3 billion to fund a second phase of the FLNG project. Afreximbank will support a final investment decision (FID) in the future, according to the Nigerian company.
The goal, according to the company, is to reach first LNG in 2026. The Yoho field is held by OML 104, and UTM's project is based on an FLNG vessel there. Mobil Producing Nigeria is the operator of OML 104.
THE Senate Committee on Local Content threatened to sanction Saipem SPA yesterday for failing to provide evidence in connection with several petitions it had received alleging that the firm had violated the Local Content Law in the execution of the Train-7 Project. Mr. Yeon Seop Jung, Daewoo Engineering and Construction Limited's Deputy Managing Director, who had appeared in place of the company's Managing Director, was also escorted out by the committee.
The Senate's committee had invited Daewoo and Saipem's Managing Director to testify after receiving several petitions alleging violations of the Local Content Law. The Nigerian Liquefied and Natural Gas, NLNG, Company owns the Train-7 project, which is the country's largest gas project, valued at around $10 billion.
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Week
101
Regional disparity in the prices of LPG across the country has been a regular feature of the Nigerian LPG market. There is a wide gap between the South East and South-west prices, this is due to its distance from the coastal region, has the highest prices due to distance from the coastal regions.
The prices in the weeks to come may rise due to the further increase from the depot
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Reuters reported in line with the International Energy Agency, that A global energy shortage is predicted to increase oil demand by 500,000 barrels per day, stoking inflation and delaying the global recovery from the COVID-19 pandemic. As a result of significant energy shortages in Asia and Europe, oil and natural gas prices have recently skyrocketed to multi-year highs, sending electricity costs soaring to new highs. Higher energy prices are contributing to inflationary pressures, which, combined with power outages, could result in less industrial activity and a slowed economic recovery.
According to Reuters, due to rising energy prices, Americans will pay more to heat their homes this winter than they did last year, according to the US Energy Information Administration's (EIA) winter fuels outlook released on Wednesday. Natural gas is used by over half of American houses for heating, and the average cost for those homes is predicted to increase by 30% to $746 from the same time last year. Energy prices have grown dramatically over the world, producing power shortages in major economies such as China and India. Even though fuel prices, from natural gas to heating oil, have surged to multi-year highs and will affect household finances as the weather turns colder, the United States has yet to suffer the same effect.
Reuters reported on Wednesday that oil prices fell on concerns that crude demand might stall, eroding recent gains that had pushed prices to multi-year highs in recent sessions. Some traders are likely taking profits in US crude after West Texas Intermediate (WTI) futures touched their highest level since October 2014 over the last three days, according to analysts. Brent futures dropped 24 cents, or 0.3 percent, to $83.18 a barrel, while WTI crude in the United States sank 20 cents, or 0.3 percent, to $80.44.
Reuters reported Industry on Wednesday that Singapore LNG Corp is inquiring about buying LNG cargoes on the spot market, a rare step for the operator of the city-liquefied state's natural gas (LNG) terminal. Four sources claimed SLNG is shopping for LNG on the spot market privately, with one of them saying it was looking for up to two cargoes for delivery into Singapore in November. It was unclear why SLNG was looking for the cargoes or whether the request was firm.
Reuters reported Industry on Wednesday that Singapore LNG Corp is inquiring about buying LNG cargoes on the spot market, a rare step for the operator of the city-liquefied state's natural gas (LNG) terminal. Four sources claimed SLNG is shopping for LNG on the spot market privately, with one of them saying it was looking for up to two cargoes for delivery into Singapore in November. It was unclear why SLNG was looking for the cargoes or whether the request was firm.
Cheniere Energy, Inc. has announced that Cheniere Marketing, LLC, a wholly-owned subsidiary of ENN Natural Gas Co., Ltd., has entered into an LNG Sales and Purchase Agreement (SPA) with ENN LNG (Singapore) Pte Ltd.
ENN LNG has committed to buy about 0.9 million tpy of LNG from Cheniere Marketing on a free-on-board basis for a period of approximately 13 years, starting in July 2022, under the terms of the SPA. The SPA's LNG purchase price is based on the Henry Hub price plus a predetermined liquefaction cost. The SPA is backed by ENN Natural Gas, which is serving as a guarantee.
United Energy has agreed to buy a 140-mile natural gas pipeline in Wagoner County, Oklahoma, that was formerly held by Red Fork Energy. This asset includes 140 miles of 3" to 16" transmission lines, a 12" steel pipeline with a capacity of up to 20 MMcfd, 5,000 acres of leasehold, and 89 company-owned wells with significant Woodford Shale development potential. Closing is scheduled for October, pending completion of final due diligence. The Wagoner Pipeline's acquisition also throws up a slew of chances for stranded gas that hasn't been able to take advantage of current commodity prices.
According to Reuters, as part of its efforts to reduce carbon emissions, Australia's New South Wales state announced on Wednesday that it would pay A$3 billion ($2.2 billion) in incentives to attract hydrogen projects to the country's largest coal-exporting state. Matt Kean, the state treasurer and energy minister, said the plan will not only help the state cut carbon emissions in half by 2030, but also provide opportunities for heavy industry and improve the economy by more than A$600 million. The state's main inducement is a 90 percent reduction in power network prices for electrolysers built by 2030.
Reuters reported that Saudi Aramco has requested banks to arrange a loan in the $12 billion to $14 billion range for buyers of its gas pipeline network, according to sources, as the oil giant moves on with plans to generate funds through asset sales. According to Reuters, Aramco might raise at least $17 billion through the sale of a major minority stake in its gas pipelines. The stake would be sold with a loan financing package worth around 80% of the purchase price already in place. According to three sources familiar with the situation, banks that financed Aramco's $12.4 billion acquisition of its oil pipelines earlier this year received a call for offers from the business last week.
According to the Marine and Petroleum Nigeria, Sahara Group, a leading energy and infrastructure company, would invest over $1 billion to improve access to liquefied petroleum gas (LPG) across Africa and emerging nations, in order to accelerate the continent's energy revolution. This was revealed by Temitope Shonubi, Executive Director of the Sahara Group, at the African Refiners and Distribution Association (ARDA) conference 2021 in South Africa, where he spoke on the importance of LPG in Africa's energy transition. Nigeria, Senegal, Ghana, Cote d'Ivoire, Tanzania, and Zambia are among the countries selected for the storage tanks, according to him, with five others in the preliminary stages.
Reuters reported on Friday that Russia's Gazprom announced that it has begun transferring gas to Hungary and Croatia via the TurkStream pipeline.
Russia's gas supplies to Hungary via the TurkStream pipeline have irritated Ukraine, which has lost part of its transit income and is no longer able to import reverse flow gas from Hungary.
The Kremlin also said on Friday that German officials were still working on certifying the Nord Stream 2 natural gas pipeline to Germany. The CEO of German utility Uniper has stated that an operational license for the undersea pipeline would not be provided swiftly.
On Friday, Reuters reported that the European gas prices soared to all-time highs as Russia tightened supply, suggesting increased pricing pressures on European consumers as the winter heating season approaches.
According to data from grid operator Gascade, Russian gas deliveries via the Yamal-Europe pipeline decreased by about 77 percent on Friday compared to Thursday, as Kremlin-controlled Gazprom booked only a third of its available capacity for October.
The decline comes at a critical time for Europeans, who are dealing with rising electricity expenses and a supply shortage.
Oil prices continued to rise from Tuesday, hitting $76 for the first time since July 2021, owing to rising gasoline demand. The increase was fueled by a massive drop in US crude stocks as well as production issues in the Gulf of Mexico.
Brent crude, Nigeria's benchmark, rose nine cents, or 0.1 percent, to $76.28 a barrel, while West Texas Intermediate (WTI) crude rose four cents, or 0.1 percent, to $72.27 a barrel, following data from the US Energy Information Administration (EIA) showing the country's crude stocks fell by 3.5 million barrels to 414 million barrels through September 17, the lowest total since October 2018.
PETRONAS LNG Ltd, a PETRONAS subsidiary, has agreed to provide three carbon-neutral LNG cargoes from the PETRONAS LNG Complex (PLC) in Bintulu, Sarawak, to China's Shenergy Group Company Limited.
Between October 2021 and March 2022, PETRONAS will transport the first carbon-neutral LNG to China, to Shenergy's facilities in Shanghai. PETRONAS delivered its first carbon-neutral LNG cargo to Japan last month.
"PETRONAS is happy to enhance our 15-year cooperation with Shenergy that now includes the provision of carbon-neutral LNG, highlighting our commitment to provide decarbonised LNG solutions to the market," said Shamsairi Ibrahim, PETRONAS Vice President of LNG Marketing & Trading.
Gasum bunkered LNG to Le Commandant Charcot, PONANT's latest LNG-fueled new-build polar explorer, on September 24 in the port of Le Havre, France. This was Gasum's first LNG delivery in France, as well as the port of Le Havre's first LNG bunker operation.
Gasum, a French energy business, has delivered LNG as a maritime fuel to La Compagnie du PONANT (PONANT), a luxury cruise line based in Le Havre, France. On September 24, 2021, the LNG was delivered to PONANT's newly built polar explorer Le Commandant Charcot during its first call to a French port.
This bunker operation was Gasum's first LNG delivery in France, and it marked another step forward in the company's expansion.
Following a request from Bulgargaz, the Balkan country's principal gas provider and public supplier, Bulgaria's energy regulator said on Friday that it has granted a 36.2 per cent rise in the wholesale natural gas price starting in October.
Natural gas prices have surged this year in Europe and the United States, driving up fuel costs, increasing inflationary pressures, and threatening to erode consumer confidence.
The price surge is due to low storage inventories, rising gas demand in Asia, less Russian and liquefied natural gas (LNG) supply to Europe than usual, high carbon pricing, and outages.
Royal Dutch Shell is scheduled to sell its Permian Basin assets to ConocoPhillips for $9.5 billion in cash, marking the company's withdrawal from the country's largest oilfield. The company is now focusing on the sustainable energy transition.
Earlier this year, the business announced that it would begin a massive divestiture of its Nigerian assets, particularly those in shallow water and onshore, in a deal that might be one of the largest ever in the African oil and gas industry.
Chief Timipre Sylva, Minister of State for Petroleum Resources, and Shell executives have affirmed that talks are progressing, despite a recent report claiming that certain snags were delaying the talks.
Qatar Petroleum has signed a long-term Sales and Purchase Agreement (SPA) with CNOOC Gas and Power Trading & Marketing Limited, a subsidiary of China National Offshore Oil Corporation (CNOOC), for the sale of 3.5 million tonnes per annum of LNG beginning in January 2022.
CNOOC and Qatar have been working together since September 2009, when the first LNG cargo was delivered to CNOOC in China. Qatar has delivered a total of 715 LNG cargoes to China as of August 2021, with 270 cargoes (more than 24 million t of LNG) going to CNOOC.
His Excellency Mr. Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of Qatar Petroleum, and Mr. Wang Dongjin, Chairman of CNOOC, signed the SPA in a virtual ceremony.
Reuters reported that BP (BP.L) and Eni (ENI.MI) are looking to fund up to $2 billion for their new oil and gas joint venture in Angola, as part of a debt-reduction strategy to assist grow renewables, banking, and industry.
In May, BP and Eni revealed that they were in talks to merge their Angolan oil, gas, and liquefied natural gas (LNG) activities to become one of Africa's largest energy corporations. Spinning off oil and gas assets is considered as a method for companies to get more value out of them as they aim to minimize greenhouse gas emissions and migrate to renewable energy sources.
It' is also considered as a means for the parent firm to transfer debt to the independent joint venture, making it easier for the parent company to raise funds for low-carbon ventures. BP and Eni have approached a number of major Western banks in recent weeks to obtain ideas for a $1.5-$2 billion capital raise for the joint venture.
According to Reuters and in line with the UK's National Grid Electricity System Operator (ESO) said on Thursday that, although peak demand may be slightly higher than last year, the country needs to meet demand over the summer months.
National Grid also released its gas summer outlook. It anticipates that the summer gas demand will be slightly below 32,5 bcm last year at 32,4 billion cubic meters (bcm) because of the decreased generation of electricity by gas.
Reuters reported in line with the state media which reported that China has boiled deep into the South Chinese Sea, in tensions with competing claimants, Taiwan and the Philippines and with the USA, to get the sediment core out of the seabed. On Thursday, the US media reported.
It was not clear exactly where the forage occurred in the South China Sea, which Beijing claims to be its territorial water at around 90 percent. Also claims are made of part of the ocean in Malaysia, the Philippines, Taiwan, Vietnam, and Brunei, which have huge oil and gas potential.
Reuter reported that the price of oil increased optimistically on Monday in the United States and the Houthi movement in Yemen said that missiles were fired at Saudi oil sites. The price of the oil increased on Monday.
However, over the last three weeks, crudity prices have remained unchanged, with rising expectations of the rising economic activity in the United States balanced with slow European vaccination and anticipated Iran's supply for future months.
Brent increased to $63.28 a barrel by 33 cents. The United States West Texas Intermediate (WTI) increased by $59.70 a barrel to settle 38 cents.
The government of Bangladesh has undertaken a costly gas infrastructure project with two aims: improving gas production and expanding the capacity of the gas pipeline. Any basic mathematics can explain the impetus behind expenditure of 453 million dollars. Exploration and production supply of natural gas did not keep pace with growth in demand.
The National Government set up the Bangladesh Petroleum Exploration (BAPEX) and Production Business in 1989. At Bhola, which is the heart of the Shabazazpur Gas Field, in October 2017 the company discovered gas. The company found in Comilla District in March 2020 the Srikail Gas Field.
The Nigerian Upstream Cost Optimization Program (NUCOP) was launched yesterday by the Federal Government to reduce crude oil costs by up to US $ 10/barrel.
According to the Minister of State, Timipre Sylva, at the Abuja ceremony, the new program is designed to promote industry collaboration and process development.
He said that the reduction in oil extraction costs remained crucial to all nine priority areas given to the Ministry as its operational mandate.
The Minister noted that since then the Ministry has identified certain initiatives to address the challenges posed by low cost of production.
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Reuters reported that Australia, the world's leading liquefied natural gas exporter, faces a dilemma in domestic fuel demand, as government plans for a gas-fired economic recovery face some confrontational reality.
The need for fuel from remote areas of the country for new pipeline infrastructure to boost exploration is often discussed addressing the lack of domestic gas supply that consumers are facing over two or three years.
The most prominent solution is to encourage exploration, possibly with government subsidies, to bring new production online. However, most forward-looking basins will be expensive to develop, and extensive pipeline infrastructure will be needed to carry the large fuel distances.
For a change to the fiscal terms of the El Fayum Concession now subject to approval of the Government, Pharos Energy received interim approval from the Egyptian General Oil Corporation (EGPC).
Under the new conditions, Pharos is to increase its percentage of cost recovery petroleum from 30% to 40%, enabling all its past and future investments to recover significantly more quickly.
In exchange, Pharos agreed I to waive its entitlement to recuperate a portion of the previous cost pool ($115 million) and (ii) to reduce its excess cost recovery share from 15% to 7.5%.
Reuters reported on Thursday after news that OPEC+ reached a deal to slow down production cuts from May, oil prices increased by 3 percent.
In May, another 350 000 bpd in June and an additional 400 000 bpd or so in July, OPEC+, which includes an Organization of the Petroleum exporting countries, Russia and other Allied producer countries, has agreed to ease production restrictions by 350,000 barrels per days (bpd).
Brent Crude raised by 1.94 dollars or 3.1 percent by 1:25 EST to 64.68 dollars a barrel (1825 GMT) while the U.S. oil increased $2.10, or 3.6%, by 61.26 dollars per barrel.
Reuters reported that Pioneer Natural Resources, a U.S. oil producer, agreed to acquire DoublePoint Energy, which is private, for approximately $6.4 billion, accelerating the consolidation of shale oil producers on Thursday. This year, Oilfield roll-ups have accelerated as prices recover following the market crash driven by coronaviruses last year.
Companies with strong balances have snapped debt-laden and private operators and are committed to concentrating profit on volume growth.
Acquisitions by mature operators of rapidly growing petroleum companies like DoublePoint Energy will alleviate concern that U.S. shale can again supply over the market and crash prices.
Reuters reported that Chile's competition authority approved a $3 billion takeover from the Spanish power company Naturgy's Chilean unit Compania General de Electricidad, on Wednesday by China's State Grid International (CGE).
Despite mounting political pressure, the consortium behind Nord Stream 2 has moved forward with construction. Pipe laying is scheduled to begin at the end of March and last until the third quarter of 2021.
The US has criticized a plan to build a pipeline connecting Russia and Germany in order to pump more Russian gas into Europe, claiming that it will strengthen Russia's economic and political clout in the region.
Tullow Oil announced it is now completing its sale to Panoro Energy of its assets in Equatorial Guinea. The $88.8 million Panoro was paid to Tullow. The transaction includes contingent cash payments up to 16 million dollars, which are related to asset performance and oil price as previously disclosed.
The closure is based on the satisfaction of all terms and conditions of completion, including the approval of the Equatorial Guinea and Tullow and Panoro Government and other customary third-party approvals.
In the second quarter of 2021, the Dussafu Asset will be sold to Panoro in Gabon. An additional $5 million will be paid to Tullow following completion of both transactions with Panoro.
Olamilekan Adegbite, Federal Government Minister for Mines and Steel Development, announced Tuesday that it will be auctioning its bitumen block in the third quarter of this year. This is in response to the High Commissioner of Australia's inquiry, John Donnelly, who on Tuesday visited the Ministry of Mining.
The ministry has been collecting data on some bitumen fields and is about to complete it, according to a statement published in Abuja, by his media assistant Ayodeji Aderemi. He noted that the local development of the bitumen sector had ample opportunities for investors.
According to a Consumer Energy Alliance report, a New York City ban on natural gas connections in new buildings by 2030, as well as announced policies to ban natural gas and other fossil fuels in large buildings by 2040, could cost New York City households upwards of $25,000 per year.
According to Reuters, New York City Mayor Bill de Blasio declared a ban on gas hookups in new buildings in January, joining other cities such as Berkeley and San Francisco in California.
According to the report, Blasio has also stated his intention to block new pipeline infrastructure.
The largest U.S. gas distribution utility, Southern California Gas Co (SoCalGas), set a goal to reach net zero greenhouse gas emissions by 2045, aligning with the state's goal of being carbon-neutral in 25 years.
The pledge is one of a slew of commitments made by American businesses to help combat climate change as President Joe Biden's administration plans new measures to put the country's economy on a path to net-zero emissions.
Oil prices dropped more than 1% on Thursday, owing to persistent demand concerns in Europe, which is grappling with an increase in Coronavirus infections and a sluggish vaccine rollout.
After jumping as much as 6% on Wednesday, Brent crude for May settlement dropped 86 cents, or 1.3 percent, to 63.55 dollars per barrel.
After climbing 5.9% the day before, US West Texas Intermediate (WTI) crude futures were down 98 cents, or 1.6 percent, at 60.20 dollars.
There are increasing fears that tighter pandemic restrictions in Europe, as well as vaccine delays, would stifle demand growth.
On Thursday, INEOS Energy announced that it had agreed to sell its Norwegian oil and gas business to PGNiG Upstream Norway AS of Poland for $615 million. All of INEOS' oil and gas interests, including production, licenses, fields, facilities, and pipelines, are included in the deal.
INEOS Energy, chaired by former BP finance chief Brian Gilvary, was founded late last year, integrating the group's existing oil and gas properties. The transaction helps us to monetize a non-operated, mostly gas portfolio at a lower price than our hold value.
PGNiG Upstream Norway's production will increase to around 1.5 billion cubic metres (bcm) annually over the next five years if it purchased INEOS E&P Norge AS, which has an estimated 117 million barrels of oil equivalent.
The two-year contract extension for the Trident 16 jack-up rig is in direct continuation of Shelf Drilling's current term with Belayim Petroleum Company (Petrobel) for operations in the Gulf of Suez offshore Egypt, the company said on Thursday.
Since 2015, the Trident 16 rig has been operating with Petrobel in the Belayim fields. Shelf Drilling estimates that the rig will be available in February 2023 after this extension. Following a suspension in October 2020, the Trident 16 resumed operations for Petrobel Egypt last November, and the contract was then extended until April 2021, as previously announced in March.
The government of Bangladesh has undertaken a costly gas infrastructure project with two aims: improving gas production and expanding the capacity of the gas pipeline. Any basic mathematics can explain the impetus behind expenditure of 453 million dollars. Exploration and production supply of natural gas did not keep pace with growth in demand.
The National Government set up the Bangladesh Petroleum Exploration (BAPEX) and Production Business in 1989. At Bhola, which is the heart of the Shabazazpur Gas Field, in October 2017 the company discovered gas. The company found in Comilla District in March 2020 the Srikail Gas Field.
Nigeria's parliament is scheduled to pass the long-awaited Petroleum Industry Bill (PIB) in April, according to the country's minister of state for petroleum.
The bill, which has been in the works for 20 years, governs everything from oil exploration to gas pipelines and fuel control, and was sent to the Senate by President Muhammadu Buhari in September.
To make Nigeria's oil sector more dynamic and effective, the bill will reform the structure of the state oil company NNPC, amend oil and gas taxes and revenue-sharing, and establish new regulatory bodies, among other items.
Reuters reported that as oil prices fell from a recent 28-month high, U.S. energy companies added the most oil and natural gas rigs in a week since January.
In the week of March 19, the number of oil and gas rigs increased by nine to 411, the highest level since April. According to Baker Hughes statistics dating back to 1940.
The rig count has increased by 68 percent in the last seven months after slipping to a record low of 244 in August 2020. However, the total number of rigs is still 361 rigs, or 47%, lower than this time last year.
Exports of U.S. liquefied natural gas (LNG), which continually attract customers in Europe and Asia, are on track to reach record highs during March.Gas flowing from U.S. LNG plants in March was, according to Refinitiv, an average of 10.5 billion cubic feet a day (bcfd).
In February, when extreme cold cut power and gas are supplied to the facility and in December, the record level is four months down from 8.5 bcfd and a monthly record high of 10.7 bcfd. The U.S. LNG rebound is supported by falling Atlantic Basin freight rates, which fell dramatically from $322,000 per day for two months to just $21,000 each day.
Reuters reported on Friday that, oil jumped more than 2% in volatile trade, but ended the week about 7% lower as a new wave of coronavirus infections across Europe dampened hopes for a quick recovery in fuel demand.
Brent crude ended the day at $64.53 a barrel, up $1.25 a barrel, or 2%. The price of West Texas Intermediate (WTI) crude in the United States increased by $1.42, or 2.4 percent, to $61.42.
Both traded in a wide range of more than $2 a barrel during the session. Both benchmarks lost just under 7% on a weekly basis.
Reuters reported that PTT Exploration and Production Pcl, Thai oil and gas giant, said Tuesday that it plans to expand mid-range investment to 200% of its profits by 2030 with an emphasis on gas to power.
All its profits are currently derived from oil and gas exploration and production. Other income sources can also come from its technology arm for Artificial Intelligence
In December, PTTEP, a state-owned upstream PTT Pcl arm, was granted a $2 billion gas-to-power project from the former government of Myanmar.
Reuters reported that The Akademik Cherskiy, a Russian pipe-laying vessel, will join the Nord Stream 2 undersea gas pipeline building in Danish waters at the end of March.
Despite mounting political pressure, the consortium behind Nord Stream 2 has moved forward with construction. Pipe laying is scheduled to begin at the end of March and last until the third quarter of 2021.
The US has criticized a plan to build a pipeline connecting Russia and Germany in order to pump more Russian gas into Europe, claiming that it will strengthen Russia's economic and political clout in the region.
Beginning in early April, Ameren Illinois will begin phase two of a $65 million project to modernize its natural gas energy delivery infrastructure in and around Belleville.
A six-mile stretch of natural gas transmission pipeline from Frank Scott Parkway/Concordia Church Road northwest to Illinois Route 13 will be upgraded by 125 Ameren Illinois contractors.
Crews will install new 16-inch steel transmission pipeline to replace vintage steel transmission pipeline from the 1950s. The pipeline's completion, which is expected in mid-September, will improve the company's natural gas system's integrity and reliability while also supporting economic development in Belleville, Swansea, Millstadt, Smithton, Hecker, Freeburg, New Athens, Fayetteville, St. Libory, Lenzburg, Marissa, Tilden, Coulterville, and Sparta.
Eni announced that it has completed the agreement signed last December with the Arab Republic of Egypt (ARE), the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS). The Spanish company Naturgy to restart the Damietta liquefaction plant in Egypt, settle Union Fenosa Gas and SEGAS's outstanding disputes with EGAS and ARE, and effect a corpora agreement.
The SEGAS-owned liquefaction facility, which has a capacity of 7.56 billion cubic meters per year and has been idle since November 2012, has reopened. The first LNG cargo was delivered on February 22, followed by a second cargo on March 4, and a third cargo is currently being loaded and will be sold directly to Eni's European customers.
The Cable reported that Petroleum products from Dangote Group's 650,000-per-day refinery are scheduled to enter the market in early 2022, compared to a previous fourth-quarter deadline of 2021.
The earlier completion and product development date could not be reached due to the COVID-19 pandemic, which caused delays in the shipment of equipment from abroad, according to Devakumar Edwin, executive director of capital projects and portfolio management at Dangote Group.
The company announced in November 2020 that its refinery was 80 percent complete, with 100 percent engineering and construction and 98 percent procurement.
Reuters reported that On Friday, oil settled near $70 a barrel, boosted by major oil producers' output cuts and expectations for a demand rebound in the second half of the year. Brent crude fell 41 cents, or 0.6 percent, to $69.22 a barrel.The price of U.S. West Texas Intermediate crude fell 41 cents to $65.61 a barrel. Brent and US crude finished the week nearly flat after hitting a 13-month peak on Monday, capping a seven-week winning streak. The White House relief package, as well as an almost regular stream of bullish vaccine stories, continue to boost demand for volatile assets like oil.
Despite Inter Pipeline Ltd's board rejecting its hostile takeover bid, investment firm Brookfield Infrastructure Partners said on Thursday that it is committed to its C$7.1 billion ($5.65 billion) hostile takeover offer. Inter Pipeline's largest individual shareholder said the board's "efforts to market test the deal against other take-private offers" are commendable, and that its offer is in the best interests of the company's shareholders.
Inter Pipeline's shareholders were asked to refuse the bid on Tuesday, claiming that it "significantly undervalues" the oil and gas transportation business. Brookfield launched a hostile bid last month, offering the same C$16.50 per share that Inter Pipeline had previously rejected as insufficient.
Chevron Australia has signed a five-year deal with multinational integrated solutions provider EnerMech to provide a variety of integrated services to its Western Australian oil and gas facilities.
EnerMech will continue to provide pipeline services such as pipe maintenance, nitrogen purging, and process plant drying, as well as integrity leak and pressure testing, hydraulic hose integrity management, and specialist hydraulic services, under the terms of this agreement.
Black Bear Transmission has announced that BBT Alabama has completed the disposal of unrevealed buyers' GHG assets. This divestiture follows the latest acquisition by Black Bear, namely the purchase in September of the NGT Assets from Third Coast Midstream.
BBT Alabama has a fee-based, natural gas collection system that connects Alabama production with regional long-haul pipelines. The sale consists of more than 240 miles of pipelines for natural gas, 26 active measurement sites and one active compressor station.
The agreement enables Black Bear to save cost while directing our core natural gas transmission infrastructure more internally.
On Thursday, Nyesom Wike of Rivers called for a 10% oil revenue allocation to host communities to be made by the Petroleum Industry Bill (PIB), which is currently before the National Assembly. He appealed to the House of Government in Port Harcourt when members of the PIB National Assembly committee visited him.
According to Wike, the bill clearly defined the development projects for which the fund should be spent to update the host communities' aims and requests. The Governor stated that petroleum communities had lost their lives due to international petroleum companies' activities (IOCs).
This week U.S. energy companies added a second consecutive week of oil and gas plants, with rough prices rising to a peak since 2019.
Early indicators of the future yield, the count of oil and gas plants increased from one to 403 per week on March 5.
According to Baker Hughes data from 1940, the total number of equipped plants has risen for the past seven months following a record low of 244 in August.
Separately, the petroleum plants were increased by one to 310, the highest since May, and 92 unchanged gas plants.
Nigeria has been praised by the Organization of Petroleum Exporting Countries (OPEC) for achieving maximum compliance in January 2021 and compensating its entire overproduced volumes. On Thursday, the organization bestowed the honor at the conclusion of its 14th virtual meeting of OPEC and non-OPEC Ministers.
The ministers express their gratitude to Chief Timipre Sylva, Minister of State for Petroleum Resources, for his shuttle diplomacy as the JMMC's Special Envoy to Congo, Equatorial Guinea, Gabon, and South Sudan to negotiate conformity levels with the JMMC.
Reuters reported that US domestic gas consumption is expected to peak around 2030, but increasing pipeline and natural gas (LNG) exports are expected to sustain fuel demand growing by 2050.
However, it is becoming increasingly difficult to move that gas from the countries that produce to places where it can be consumed or exported.
After the $5.8 billion-$6.0 billion Mountain-Valley pipes are entering service from West Virginia to Virginia, IHS Markit does not expect to build any major new intergovernmental gas pipes as early as the end of the year.
The Mexican President Andrés Manuel López Obrador is committed to supporting the State's economic and social development, as well as the rest of south-eastern Mexico, by implementing a broad energy program for Yucatan. The Cuxtal 1 gas pipeline start-up ends with a key project infrastructure aimed at meeting the current twice the country average energy demand, which is Mexico Region: 4.1% vs. 2.6%.
The new pipeline, together with two additional facilities before the term of the president expires, should provide enough natural gas for the power plants at present. In order to meet the increased demand in the region, gas will be transported from the north of the country to Chiapas and in the short term to Cancún.
Reuters reported that A second Russian pipelines vessel undergoes marine tests in advance of being part of the project on Thursday, the consortium behind the Nord Stream 2 undersea gas pipeline, which is pressing on construction, despite increasing pressures on policy.
The ship, Akademik Cherskiy, left on Thursday the German port of Wismar in order to subsequently join the Danish waters project. The US criticized the plan to build a Russian-German pipeline to pump more Russian gas into Europe, which would increase Russia's economic and political leverage in the region.
Alexei Navalny, a Kremlin critic who claimed in August to had been intoxicated with a nerve agent by the Russian Government, became increasingly involved in this standoff since last month.
The 12-mile Central Corridor replacement pipeline began construction this week in Hamilton County, Ohio, which is located in the southeast corner of the state and includes the state capital of Cincinnati.
The ageing infrastructure, according to Duke, needs to be replaced as part of an effort to reduce dependence on gas from southern stations and enable the company to move forward with the retirement of peaking plants used during the winter.
The company stated that it has vital propane peaking facilities that assist in providing natural gas to its regional customers during the coldest days, but that these plants must be retired. The facilities were built in the early 1960s and "represent obsolete technology," according to the study. The facilities include a 400-foot-underground man-made cavern for propane storage, with walls that cannot be fixed.
A force majeure on Nigeria's Qua Iboe crude oil export terminal has been lifted by Exxon Mobil. The force majeure was issued in December after the facility was hit by a fire and two workers were injured. In Nigeria, Africa's largest exporter of crude, Qua Iboe is one of the largest oil export sources.
IPMAN president Chinedu Okoronkwo on Tuesday told NAN that PEF is of great importance, especially since it is progressing in full petroleum deregulation downstream.