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[sarkasm] 26/10/2020 11:44

Total’s carbon-neutral LNG cargo a sign of things to come
26 Oct 2020by John Snyder

In what could be the first of many such cargoes, French energy company Total has delivered its first shipment of ‘carbon-neutral’ LNG to the Chinese National Offshore Oil Corporation (CNOOC)


“This first LNG shipment, whose carbon emissions have been offset throughout the value chain, represents a new step as we seek to support our customers towards carbon neutrality,” explained Total president for gas Laurent Vivier. “The development of LNG is essential to meet the growth in global demand for energy while reducing the carbon intensity of the energy products consumed.”

The LNG cargo was loaded at the Ichthys liquefaction plant in Australia, and the shipment was delivered on 29 September to the Dapeng terminal, China.

With pressure mounting from shareholders, banks, governments and climate activists to lower global greenhouse gas emissions, Poten & Partners head of Asia business intelligence Sophie Tan said carbon-neutral LNG supply will be a “growth area over the next few years.” Ms Tan explained that sellers are offering “carbon-neutral LNG supply in the sense that they’re offering carbon offsets in a separate agreement with the LNG supply.”

Speaking during a recent Poten & Partners webinar, How will the decarbonisation push affect LNG project funding? MsTan said others were trying implement their own solutions, but “there is no fixed way of doing it at the moment.” She described three ways of providing carbon offsets for LNG, each of which must provide verified emissions reduction credits or verified carbon standards.

These methods are nature based, community based or through renewable projects. An example of a nature-based solution would be reforestation project.

A community-based project would be replacing fossil fuels with a cleaner source of energy. One such example would be switching from coal-fired power generation to providing renewable energy to a local community. “And it has to be a permanent reduction in carbon emissions to be picked to become a verified source of credit,” said Ms Tan. ‘If you are an oil and gas company, you could invest in renewable power projects and whatever carbon credits that you create from that project could be used against another project to reduce its carbon emissions.”

In the case of LNG cargo for CNOOC, Total said the carbon footprint of the LNG shipment was offset with VCS emissions certificates through the financing two projects:

Hebei Guyuan Wind Power Project, which aims to reduce emissions from coal-based power generation in northern China.

Kariba REDD+ Forest Protection Project, which aims to protect Zimbabwe’s forests.

Total and CNOOC have offset the amount of CO2 equivalent (CO2e) associated with the entire carbon footprint of the LNG cargo (including the production, liquefaction, shipping, regasification, and end-use) through VCS certified emission reduction projects.

[la forge] 22/10/2020 14:15

French government blocks 'dirty' LNG

By KELSEY TAMBORRINO

10/22/2020 10:00 AM EDT

Editor’s Note: Morning Energy is a free version of POLITICO Pro Energy's morning newsletter, which is delivered to our subscribers each morning at 6 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day’s biggest stories. Act on the news with POLITICO Pro.
Quick Fix

— The French government blocked a $7 billion LNG deal between Engie and a U.S. gas supplier over concerns that West Texas gas was too dirty.

— President Donald Trump and Joe Biden will lock horns on climate and energy policy during the final presidential debate tonight.

— Two Democratic committee chairs in the House are in tight reelection races that have potential implications for climate and energy policy.

WELCOME TO THURSDAY! I'm your host, Kelsey Tamborrino. The Senate Energy and Natural Resources Committee's Tonya Parish was the first to name Abraham Lincoln, the first member of the Republican Party elected U.S. president. For today: What presidential candidate famously asked voters, "Are you better off than you were four years ago?" Send your tips, energy gossip and comments to [e-mail].

Check out the POLITICO Energy podcast — all the energy and environmental politics and policy news you need to start your day, in just five minutes. Listen and subscribe for free at politico.com/energy-podcast. On today's episode: Trump, Biden and Nord Stream 2
Driving the Day

FRANCE SAYS MAIS NON TO LNG DEAL: The French government blocked trading firm Engie from signing a potential $7 billion deal with a U.S. liquefied natural gas company last month over concerns that its U.S. shale gas was too dirty, two people familiar with the situation told POLITICO's Ben Lefebvre. The 20-year contract would have delivered LNG from NextDecade's planned Rio Grande export facility in Brownsville, Texas.

What happened: The French government, which is a part owner of Engie, stepped in to tell Engie's board of directors to delay — if not outright cancel — any deal out of concern that U.S. natural gas producers emit too much methane at the West Texas oil and gas fields that will supply the NextDecade plant, said Lorette Philippot, head of private finance campaigns for French environmental group Les Amis de la Terre. The incident was first reported by a French news site but independently confirmed to POLITICO.

"It could still be signed in the coming weeks," Philippot said. "But what is sure is the political, reputational risk around the validation of the contracts is one of the elements there. The climate impacts played a role."

In the backdrop: The European Union has sought a European Green Deal to combat climate change, and the European Commission has singled out energy imports as a major source of methane emissions. The news also underscores a growing concern among some U.S. natural gas exporters that the regulatory rollbacks pushed by the Trump administration, as well as the industry's overall failure to rein in emissions, are making it more difficult to sell their product overseas as a cleaner alternative to oil or coal.

"We're probably going to go from trade war to carbon trade war pretty seamlessly in the next 10 years," said Kevin Book, director of analysis firm ClearView Energy. "Whatever you think is going to happen on climate, you have to predicate it against that."

Consider this: A recent international survey by Pew Research Center found the largest ideological gap on natural gas use in the U.S. Eighty-eight percent of conservatives support using more natural gas, while 45 percent of liberals said the same.

[waldron] 20/10/2020 07:25

Total (Paris:FP) (LSE:TTA) (NYSE:TOT) has delivered its first shipment of carbon neutral(1) liquefied natural gas (LNG) to the Chinese National Offshore Oil Corporation (CNOOC).



The loading operation was carried out at the Ichthys liquefaction plant in Australia, and the shipment was delivered on September 29 to the Dapeng terminal, China.



"We are proud to have completed this first shipment of carbon neutral LNG with CNOOC, a long-standing partner of Total. This first LNG shipment, whose carbon emissions have been offset throughout the value chain, represents a new step as we seek to support our customers towards carbon neutrality," explains Laurent Vivier, President for Gas at Total. "The development of LNG is essential to meet the growth in global demand for energy while reducing the carbon intensity of the energy products consumed."



The carbon footprint of the LNG shipment was offset with VCS (Verified Carbon Standards) emissions certificates financing two projects:

-- Hebei Guyuan Wind Power Project, which aims to reduce emissions from
coal-based power generation in northern China.
-- Kariba REDD+ Forest Protection Project, which aims to protect Zimbabwe's
forests


* * *



Total, Second Largest Private Global LNG Player



Our Group has made natural gas, the least pollutant of all fossil fuels, a cornerstone of its strategy to meet a growing global demand for energy while helping to mitigate climate change. We are focusing in particular on LNG, which can be easily transported and delivered as close as possible to consumer markets. Total is present across the entire LNG value chain, from production and liquefaction of natural gas to LNG shipping and trading, regasification using terminals and floating storage regasification units (FSRUs) and contributes to the development of the LNG sector for maritime transportation.



Total is the second-largest global LNG stakeholder in the private industry, with an overall portfolio of nearly 50 Mt/year by 2025 and a worldwide market share of 10%. With over 34 Mt of LNG sold in 2019, the Group has solid and diversified positions across the LNG value chain. The Group sells LNG in all world markets via its stakes in liquefaction plants in Qatar, Nigeria, Russia, Norway, Oman, Egypt, the United Arab Emirates, the United States, Australia and Angola.



About Total



Total is a broad energy company that produces and markets fuels, natural gas and electricity. Our 100,000 employees are committed to better energy that is more affordable, more reliable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.



* * * * *

[maywillow] 19/10/2020 06:57

Prelude FLNG restart not likely before year-end

October 19, 2020 Asia, Company News, Infrastructure, Natural Gas, News 0

Shell Australia confirmed last week full production at its operated Prelude floating liquefied natural gas (FLNG) project isn’t expected before year-end, Kallanish Energy reports.

The Australian gas project was shutdown in February after an electrical trip, which compromised back-up diesel generators and the safe operation of the facility. Then, Shell adjusted shipping schedule and suspended cargoes.

On Thursday, the operator said it continues to work through the process for hydrocarbon restart, “with safety and stability foremost in mind.”

“Prelude is a multi-decade project, and our focus is on delivering sustained performance over the long term,” Shell said in a brief statement.

The facility can produce 3.6 million tonnes per annum (Mtpa) of LNG, 1.3 Mtpa of condensate and 0.4 Mtpa of liquefied petroleum gas (LPG).

[florenceorbis] 15/10/2020 07:01

WORLDOIL

Total taps Siemens Energy to supply Mozambique LNG turbines
10/14/2020

BERLIN - CCS JV (a joint venture between Saipem and McDermott) recently selected Siemens Energy to supply emissions-reducing power generation equipment and boil-off gas compressors for the Mozambique LNG Project in the Cabo Delgado province on Africa’s East Coast. The project, led by TOTAL E&P Mozambique Area 1, includes the development of offshore gas fields in Mozambique’s Area 1 and a liquefaction plant with a capacity in excess of 12 million tons per year.

As part of the contract, Siemens Energy will supply six SGT-800 industrial gas turbines that will be used for low-emissions onsite power generation.

With more than eight million total fleet operating hours and more than 400 units sold, the SGT-800 turbine is ideally suited for power generation, particularly in LNG applications, where reliability and efficiency are critical. The 54MW turbine rating selected for this project has a gross efficiency of 39 percent. It is equipped with a robust, dry low-emission (DLE) combustion system that enables world-class emission performance over a wide load range.

“Mozambique LNG is the country’s first onshore LNG development project and will play a key role in meeting the increasing demand for energy in the Asia-Pacific, Middle East, and Indian sub-continent markets,” said Thorbjoern Fors, Executive Vice President for Siemens Energy Industrial Applications. “We look forward to helping Total drive toward the lowest possible plant emissions profile and contributing to its goal of delivering clean, reliable energy to customers across the globe.”

Siemens Energy will also supply four centrifugal compressors for boil-off gas (BOG) service. A key feature of these compressors is the inlet guide vane (IGV) system that allows for optimization of power consumption according to changes in operational parameters such as inlet temperature and outlet pressure.

The gas turbines are slated for delivery in the second half of 2021 and the first half of 2022. The delivery of the compressors is scheduled for 2021.

“We’re proud to be part of this important project as a supplier of reliable, field-proven rotating equipment that will help contribute to the long-term economic growth of Mozambique and the prosperity of its citizens,” said Arja Talakar, Senior Vice President, Industrial Applications Products for Siemens Energy.

The equipment order for the Mozambique LNG project comes on the heels of a recent agreement between Total and Siemens Energy to advance new concepts for low-emissions LNG production. As part of the contract, Siemens Energy is conducting studies to explore a variety of possible liquefaction and power generation plant designs, with the goal of decarbonizing LNG facility development and operation.

[adrian j boris] 12/10/2020 08:36

Profiling the top five countries with the biggest natural gas reserves

Features & AnalysisOil & GasUpstream

By Andrew Fawthrop 09 Oct 2020

A handful of countries dominate the world’s biggest reserves of natural gas, a key ingredient in the global energy mix used mainly for heat and electricity generation
ConocoPhillips Grissik Gas Plant

Natural gas is processed at huge facilities before being sent to market (Credit: ConocoPhillips)

Natural gas is a highly-traded commodity that has become a key fuel in the global energy mix – meaning those countries that hold large reserves have an opportunity to generate national revenues from exports, while boosting their own energy security.

It is used mostly in heating and electricity generation, having grown in popularity over recent years as a cleaner-burning fossil fuel than coal, and a cheaper alternative to oil.

According to the International Energy Agency (IEA), natural gas has accounted for almost one-third of overall energy-demand growth over the past decade, more than any other fuel, and accounts for around 23% of the world’s primary energy demand.

Global production has been growing steadily since the 2008 financial crisis – boosted by the progress of shale fracking in the US – and totalled around four trillion cubic metres (tcm) in 2019.

In the context of the low-carbon energy transition, natural gas is often discussed as a “transitional fuel” that can bridge the gap between more carbon-intensive fossil fuels – coal and oil – and renewable technologies that are gathering momentum but not yet deployed at a scale that can meet overall energy demand.

Energy producers are looking at ways to couple gas-fired generation facilities with carbon capture and storage (CCS) technologies, as a way to mitigate the emissions it releases when burned.

A handful of countries dominate the world’s biggest reserves of natural gas, and here we profile the top five.


Which countries have the biggest natural gas reserves?
1. Russia – 38 trillion cubic metres

Russia is home to the world’s largest natural gas reserves, with a total proved resource of 38 tcm (1,341 trillion cubic feet) according to the BP Statistical Review of World Energy 2020.

That is equivalent to around 19% of the world’s total reserves.

The majority of Russia’s natural gas reserves are located in Siberia, with the Yamburg, Urengoy, and Medvezh’ye fields particularly productive.

State-backed company Gazprom owns around 71% of the country’s gas reserves – and roughly 16% of the global total.


2. Iran – 32 trillion cubic metres

Iran accounts for around 16% of the world’s share of natural gas resources, with an overall reserve of 32 tcm (1,131 trillion cubic feet).

Development of these vast reserves – most of which are located offshore – has been hindered by international economic sanctions placed on the country, notably by the US in response to geopolitical tensions and Iran’s nuclear development programme.

Iran shares ownership of the world’s largest gasfield – South Pars/North Dome – with neighbouring Qatar. The field is located offshore in the Persian Gulf.

In 2019, the country produced 244 billion cubic metres (bcm) of natural gas – around 6% of the global total.


3. Qatar – 24.7 trillion cubic metres

Qatar has proven natural gas reserves of 24.7 tcm (872 trillion cubic feet), which is slightly more than 12% of the global total.

The majority of these reserves are located in the offshore North Field, which spans an area roughly the same size as the country itself and is the world’s largest single natural gas field.

Qatar is the world’s top producer of liquefied natural gas (LNG), and was the biggest LNG exporter in 2019, closely followed by Australia.

Natural gas operations in the country are largely controlled by state-run company Qatar Petroleum.
biggest natural gas reserves
An LNG transport tanker (Credit: Wikimedia Commons/Wolfgang Meinhart)


4. Turkmenistan – 19.5 trillion cubic metres

The Central Asian country of Turkmenistan has the fourth-largest natural gas reserves in the world, totalling 19.5 tcm (688 trillion cubic feet).

That is equivalent to a 9.8% share of the of the overall global resource.

Most of the natural gas reserves in Turkmenistan are located in large fields in the Amu Darya basin in the southeast, the Murgab Basin in the south, and the South Caspian basin in the western part of the country.

Development of these abundant resources has been hindered by a lack of investment in infrastructure and export capabilities. Production in the country totalled 63.2 bcm in 2019, which was just 1.6% of the global total.


5. United States – 12.9 trillion cubic metres

The US holds a 6.5% share of global natural gas reserves, with proven resources of 12.9 tcm (455 trillion cubic feet).

Production of the fuel has skyrocketed over the past decade, driven by the shale fracking revolution that has also helped it to become the world’s largest oil-producing nation.

In 2019, the US produced almost a quarter of the world’s natural gas supply – around 921 bcm – which was more than any other country.

The majority of US natural gas is produced onshore via horizontal drilling and hydraulic fracturing techniques. Texas and Pennsylvania are the two highest-producing regions in the country.

[waldron] 11/10/2020 07:20

The politics of climate change have also changed the market calculus about when Nord Stream 2 will be needed. When the pipeline was planned, natural gas was widely seen as the fuel that would replace coal and sit alongside wind and solar power in Europe’s energy mix. Since then, the cost of renewables plummeted, weakening the case for any fossil fuels. At the same time, there is growing environmental opposition against building new gas infrastructure, especially when Europe is aiming to cut net fossil fuel emissions to zero by 2050.

Germany and Russia are the countries most interested in the project because it will increase gas supply and improve liquidity at the continental trade hubs, in addition to generating profits for energy companies throughout the region. Gazprom owns the Baltic Sea pipeline project. Half of its 9.5 billion-euro ($11.2 billion) cost is being financed by Germany’s Uniper SE, Wintershall AG, Engie, Royal Dutch Shell Plc, and Austria’s OMV AG.

A further delay gives time for markets to adjust to cooler weather and the pandemic’s impact on gas demand. There is a chance that this winter will be much tighter than last year, with La Nina generating below-normal temperatures in Europe, particularly in the fourth quarter, according to Giacomo Masato, an analyst at MarexSpectron.

Europe can cope without Nord Stream 2 flows this winter, but with further economic growth demand may well emerge in the coming years to support the pipeline, according to Julien Hoarau, gas market analyst at Engie EnergyScan. For now, natural gas demand is estimated to stay flat for at least the next five years, according to the International Energy Agency.

“Overall, there’s no physical risk at first glance, but further delays in the delivery of Nord Stream 2 should not be neutral in terms of wholesale gas prices in Europe,” said Hoarau. “We could see a stronger call on storages to balance European gas systems. Higher LNG imports could be required as well.”

[sarkasm] 09/10/2020 18:23

Profiling the top five countries with the biggest natural gas reserves

Features & AnalysisOil & GasUpstream

By Andrew Fawthrop 09 Oct 2020

A handful of countries dominate the world’s biggest reserves of natural gas, a key ingredient in the global energy mix used mainly for heat and electricity generation
ConocoPhillips Grissik Gas Plant

Natural gas is processed at huge facilities before being sent to market (Credit: ConocoPhillips)

Natural gas is a highly-traded commodity that has become a key fuel in the global energy mix – meaning those countries that hold large reserves have an opportunity to generate national revenues from exports, while boosting their own energy security.

It is used mostly in heating and electricity generation, having grown in popularity over recent years as a cleaner-burning fossil fuel than coal, and a cheaper alternative to oil.

According to the International Energy Agency (IEA), natural gas has accounted for almost one-third of overall energy-demand growth over the past decade, more than any other fuel, and accounts for around 23% of the world’s primary energy demand.

Global production has been growing steadily since the 2008 financial crisis – boosted by the progress of shale fracking in the US – and totalled around four trillion cubic metres (tcm) in 2019.

In the context of the low-carbon energy transition, natural gas is often discussed as a “transitional fuel” that can bridge the gap between more carbon-intensive fossil fuels – coal and oil – and renewable technologies that are gathering momentum but not yet deployed at a scale that can meet overall energy demand.

Energy producers are looking at ways to couple gas-fired generation facilities with carbon capture and storage (CCS) technologies, as a way to mitigate the emissions it releases when burned.

A handful of countries dominate the world’s biggest reserves of natural gas, and here we profile the top five.


Which countries have the biggest natural gas reserves?
1. Russia – 38 trillion cubic metres

Russia is home to the world’s largest natural gas reserves, with a total proved resource of 38 tcm (1,341 trillion cubic feet) according to the BP Statistical Review of World Energy 2020.

That is equivalent to around 19% of the world’s total reserves.

The majority of Russia’s natural gas reserves are located in Siberia, with the Yamburg, Urengoy, and Medvezh’ye fields particularly productive.

State-backed company Gazprom owns around 71% of the country’s gas reserves – and roughly 16% of the global total.


2. Iran – 32 trillion cubic metres

Iran accounts for around 16% of the world’s share of natural gas resources, with an overall reserve of 32 tcm (1,131 trillion cubic feet).

Development of these vast reserves – most of which are located offshore – has been hindered by international economic sanctions placed on the country, notably by the US in response to geopolitical tensions and Iran’s nuclear development programme.

Iran shares ownership of the world’s largest gasfield – South Pars/North Dome – with neighbouring Qatar. The field is located offshore in the Persian Gulf.

In 2019, the country produced 244 billion cubic metres (bcm) of natural gas – around 6% of the global total.


3. Qatar – 24.7 trillion cubic metres

Qatar has proven natural gas reserves of 24.7 tcm (872 trillion cubic feet), which is slightly more than 12% of the global total.

The majority of these reserves are located in the offshore North Field, which spans an area roughly the same size as the country itself and is the world’s largest single natural gas field.

Qatar is the world’s top producer of liquefied natural gas (LNG), and was the biggest LNG exporter in 2019, closely followed by Australia.

Natural gas operations in the country are largely controlled by state-run company Qatar Petroleum.
biggest natural gas reserves
An LNG transport tanker (Credit: Wikimedia Commons/Wolfgang Meinhart)


4. Turkmenistan – 19.5 trillion cubic metres

The Central Asian country of Turkmenistan has the fourth-largest natural gas reserves in the world, totalling 19.5 tcm (688 trillion cubic feet).

That is equivalent to a 9.8% share of the of the overall global resource.

Most of the natural gas reserves in Turkmenistan are located in large fields in the Amu Darya basin in the southeast, the Murgab Basin in the south, and the South Caspian basin in the western part of the country.

Development of these abundant resources has been hindered by a lack of investment in infrastructure and export capabilities. Production in the country totalled 63.2 bcm in 2019, which was just 1.6% of the global total.


5. United States – 12.9 trillion cubic metres

The US holds a 6.5% share of global natural gas reserves, with proven resources of 12.9 tcm (455 trillion cubic feet).

Production of the fuel has skyrocketed over the past decade, driven by the shale fracking revolution that has also helped it to become the world’s largest oil-producing nation.

In 2019, the US produced almost a quarter of the world’s natural gas supply – around 921 bcm – which was more than any other country.

The majority of US natural gas is produced onshore via horizontal drilling and hydraulic fracturing techniques. Texas and Pennsylvania are the two highest-producing regions in the country.

[grupo] 06/10/2020 09:20

Trump and coal: A pointless war?

Back on the EPA stage with the workers alongside him and Murray in the front row, Trump makes a big promise to the mining industry.

“The miners told me about the attacks on their jobs and their livelihoods,” he says.

“They told me about the efforts to shut down their mines, their communities and their very way of life. I made them this promise. We will put our miners back to work.

“My administration is putting an end to the war on coal.”

Unfortunately for the president and coal miners, it could be the battle had been lost a long time ago.

[maywillow] 02/10/2020 17:52

Total Bets Its Future On Renewables And LNG
By Tsvetana Paraskova - Oct 01, 2020, 4:30 PM CDT

France’s oil and gas major Total is joining other European peers, aiming to reinvent itself into a broad energy company, and will be betting on profitably growing its liquefied natural gas (LNG) and renewable businesses.

Total plans to increase the energy it produces while decreasing its carbon footprint, the company said in its Strategy & Outlook this week. To reduce emissions and become a broad energy company, Total will grow its energy production by one third, with half the growth coming from LNG and half from electricity, mainly from renewables. The company will also scale up profitable investments in renewables and electricity from US$2 billion to US$3 billion per year, representing more than 20 percent of capital investments.

The French firm also confirmed its ambition, announced earlier this year, to get to net-zero by 2050.

Last week, Total’s chief executive Patrick Pouyanné told French newspaper Le Parisien that the firm aims to be among the world’s top five producers of renewable energy. The company’s operations mix today is 55 percent oil, 40 percent gas, and less than 5 percent electricity from renewables, Pouyanné said, noting that in 2050, Total’s operations will be divided into 20 percent oil, 40 percent gas, and 40 percent renewable energy.

European oil majors have pledged various commitments to become net-zero energy companies and significantly expand their renewable energy, hydrogen, or power market portfolios.

BP said in its new strategy in August that it would reduce its oil and gas production by 40 percent by 2030 through active portfolio management and would not enter exploration in new countries.

Related: Trump Signs Emergency Order To Bolster Rare Earth Mining

Equinor mandated its incoming chief executive Anders Opedal—who will replace retiring Eldar Sætre in November to accelerate Equinor’s transition from an oil company to a broad energy company.

Eni announced in June a “new business structure to be a leader in the energy transition,” creating an Energy Evolution division in the company to accelerate its plans to significantly boost renewable power generation and biofuels production.

Shell said this week it is reorganizing for a low-carbon future, which would mean up to 9,000 job cuts by the end of 2022.

By Tsvetana Paraskova for Oilprice.com

[grupo] 02/10/2020 07:09

kallanishenergy



Centrica inks its first long-term LNG deal in China

October 2, 2020 Asia, Company News, Natural Gas, News 0

UK’s Centrica announced on Thursday its first long-term liquefied natural gas (LNG) supply contract in China, Kallanish Energy reports.

The company inked a 15-year agreement to supply 0.5 million tonnes per annum (Mtpa) with Shenergy Group. Deliveries are set to start in 2024, Centrica said in a statement.

Shenergy is the sole energy platform owned by the Shanghai state-owned Assets Supervision and Administration Commission. It holds a monopoly concession for gas distribution in Shanghai.

“We are delighted to conclude this agreement with Shenergy. The roots of our shared history date back over 150 years, to when British Gas helped install gas lighting in the streets of Shanghai,” commented Centrica’s CEO Chris.

The deal is a new “milestoneR21; for the companies and complements Centrica’s existing portfolio of LNG positions and contracts, he added.

[waldron] 01/10/2020 19:29

BP must make ‘significant investments’ to meet 2030 low-carbon energy targets

Features & AnalysisPowerFossil Fuel / Coal and Gas

By James Murray 01 Oct 2020

The British multinational oil and gas company is aiming to achieve 50GW of renewable energy capacity by the end of the decade
Equinor renewables

BP has a long history in renewables investments after it became the first of the “Big Oil” companies to commit significant capital into clean energy projects (Credit: Needpix.com)

BP must make “significant investments” in renewable energy and liquefied natural gas (LNG) in order to meet its 2030 low-carbon energy targets, says an industry analyst.

As part of its commitments, the British multinational oil and gas company is aiming to achieve 50 gigawatts (GW) of renewable energy capacity and 30 million tonnes per annum of (tpa) of LNG by the end of the decade.

This comes as major oil firms have started pumping billions into renewables in a bid to help clean up the economy and look towards a potential future beyond high-polluting fossil fuels amid intensifying pressure from investors for companies to take action on environmental issues.

But data and analytics firm GlobalData believes that BP’s capital available for investment activity will be challenged as “market weakness dents cashflow” from its “core hydrocarbons business”.

Daniel Rogers, oil and gas analyst at GlobalData, said: “BP has proven its willingness to invest big outside its core business, but will continue to rely on hydrocarbons as the cash cow for future investments.

“The current market fundamentals reduce the profitability of BP’s core business, potentially shrinking its pool of capital available for future low-carbon acquisitions.”


BP has a long history of making renewable energy investments

BP, short for Beyond Petroleum, has a long history in renewables investments after it became the first of the “Big Oil” companies to commit significant capital into clean energy projects, such as wind and solar, from 1980 onwards.

But, in the aftermath of the 2010 Deep Water Horizon oil spill incident in the Gulf of Mexico, the London-headquartered firm was forced to close most of its previous green energy investments, believed to be worth about $8bn to $10bn.

Despite that, the company still has more than 2.2GW of wind capacity in the US and, in 2017, it spent $200m on acquiring a 43% stake in Lightsource, which has rebranded to Lightsource BP and is Europe’s largest solar power project developer.
Lightsource BP solar
Lightsource BP is Europe’s largest solar power project developer (Credit: Flickr/Dept of Energy Solar Decathlon)

BP also acquired Chargemaster, the UK’s leading network of charging points, for $160m – which could well be an astute purchase as Britain looks set to ramp up its plans to phase out fossil fuel vehicles by 2030 to speed up the transition to electric vehicles.

But, in the meantime, the move has also allowed the oil firm an opportunity to combine Chargemaster’s 6,500 charging points network with its 1,200 petrol stations.

Looking towards the future, Bernard Looney, who was confirmed as BP’s new CEO earlier this year, has outlined his vision for the oil major to “reimagine energy” and become a net-zero emissions company by 2050.


Equinor deal secures BP an “entry into the offshore wind sector”

With a combined installed renewable power capacity of 2.3GW, BP is currently leading the way amongst the major international oil companies, according to GlobalData.

The analyst said its recent deal with Norwegian state-owned energy firm Equinor “secures entry into the offshore wind sector” with a capacity addition of 2.2GW once complete.

The $1.1bn agreement saw BP purchase 50% of the non-operated interests in the Empire Wind and Beacon Wind assets on the US east coast.

GlobalData’s Rodgers said BP’s current project pipeline will increase its capacity by 6.5GW, but that this is still short of its 2025 ambition to reach 20GW.

He added: “As BP will leverage off its core hydrocarbons business to fund its investment strategy, weakened oil and gas prices will put pressure on the company’s capital availability necessary to meet its low-carbon energy ambitions.”


LNG will continue to play a “major role” in BP’s low-carbon energy

But for Rodgers, it isn’t just renewables that will help shape the company’s future.

“LNG will continue to play a major role in BP’s low-carbon energy and electricity goals, and it is targeting significant growth in the sector,” said Rodgers.

“In its current equity LNG portfolio, BP is forecast to reach 16 million tpa in capacity by 2025, while relying on merchant volumes for the rest of the targeted amount.”

He believes the delay of the African Tortue Ahmeyim LNG project – in partnership with Bermuda’s Golar LNG – was a “major blow”.

BP was expected to receive the floating LNG facility on the maritime border between Mauritania and Senegal in 2022, but following the impact of the coronavirus pandemic, it submitted a force majeure in March to delay the delivery by a year.

Upon receiving the facility, the firm is expected to charter it for 20 years to liquefy gas, but Rodgers claims any further delays could hinder its chances of achieving the 2025 LNG target.

He added: “Future developments in Mauritania and Senegal will be the cornerstone of the company’s growth opportunities but will hinge on investment decisions going ahead in spite of a potentially oversupplied LNG market going into the late 2020s.”

[florenceorbis] 28/9/2020 17:08

GTT and Zvezda partner to construct LNG carriers
3 July 2020 (Last Updated July 3rd, 2020 12:50)

Engineering company Gaztransport and Technigaz (GTT) has signed a technical assistance and licence agreement (TALA) with Russia-based Zvezda Shipbuilding Complex to construct liquefied natural gas (LNG) carriers.
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Engineering company Gaztransport and Technigaz (GTT) has signed a technical assistance and licence agreement (TALA) with Russia-based Zvezda Shipbuilding Complex to construct liquefied natural gas (LNG) carriers.

According to the agreement, the LNG carriers will be constructed using the GTT membrane tank solutions.

GTT noted that the agreement is a step towards the deployment of its technologies in Russia.

Zvezda will be able to construct ARC7 ice-breaking liquefied natural gas carriers (LNGCs) that feature the GTT membrane storage system. The vessels will be used to transport LNG produced in Russia.

Rosneft-led consortium and Zvezda Far Eastern Shipyard established Zvezda Shipbuilding Complex.

Zvezda was awarded the GTT licence after a qualification process that was launched in September 2017, which also included the construction of a Mark III technology mock-up.

Zvezda specialises in building large-capacity vessels, ice-class ships, special vessels and marine equipment or offshore platforms.

GTT chairman and CEO Philippe Berterottière said: “We are pleased to count Zvezda among our new-building partners and to participate in the development of new LNG infrastructures in Russia. The conclusion of this contract is the prelude to a lasting partnership between GTT’s French technologies and Zvezda’s expertise.”

Zvezda Shipbuilding Complex general director Sergey Tseluyko added: “We are very proud to be licensed by GTT for Membrane technologies. This will allow us to offer reliable LNG solutions with GTT’s technologies in Russia.”
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In September last year, Zvezda Shipbuilding Complex selected Samsung Heavy Industries (SHI) to construct LNG carriers for the Arctic LNG 2 project.

According to the agreement, SHI will act as a technological partner due to its expertise.

[adrian j boris] 26/9/2020 06:47

Spot natural gas prices at the Dutch TTF hub are also at multi-month highs at over $3/MMBtu, compared to a low of below $1/MMBtu in May, opening the window for profitable U.S. LNG exports to the region again.

Having plunged by more than 50 percent between January and July, U.S. LNG exports are set to pick up the pace, and the increase already started in August.

As per EIA estimates, U.S. LNG exports averaged 3.7 Bcf/d in August, up by 19 percent from July amid rising spot and forward natural gas prices in Europe and Asia.

“Higher global forward prices indicate improving netbacks for buyers of U.S. LNG in European and Asian markets for the upcoming fall and winter seasons amid expectations of natural gas demand recovery and potential LNG supply reduction because of maintenance at the Gorgon LNG plant in Australia,” the EIA said, expecting U.S. LNG exports to return to pre-COVID levels by November 2020 and to average more than 9 Bcf/d from December 2020 through February 2021.

The EIA expects that lower U.S. gas production, coupled with rising domestic demand and demand for LNG exports in the winter, will send Henry Hub spot prices jumping to a monthly average of $3.40/MMBtu in January 2021. Monthly average spot prices are set to remain above $3.00/MMBtu for all of next year, averaging $3.19/MMBtu in 2021, up from a forecast average of $2.16/MMBtu in 2020.

By Tsvetana Paraskova for Oilprice.com

[ariane] 22/9/2020 10:01

Arctic LNG 2 expected to receive $9.5B international backing

September 22, 2020 Company News, Europe, Featured, Government, Infrastructure, Natural Gas, News 0

Russia’s Arctic LNG 2 project is said to have lined up around $9.5 billion in financing from international lenders, with backing expected mostly from China.

According to reports, the China Development Bank is expected to offer a facility worth $5 billion. Other potential lenders could include French state investment and credit agency Bpifrance, with a recommended offer of $700 million in credit finance, and Germany’s Euler Hermes, with a covered facility of $300 million.

The Japan Bank for International Cooperation (JBIC) is also said to be providing the $21.3 billion project with a $2.5 billion facility; an unnamed Russian bank $1.5 billion and Italy’s SACE a covered facility of $1 billion.

The Novatek-led project, located in the Gydan Peninsula, is currently under construction. Start up of the 19.8 million tonnes per annum (Mtpa) liquefaction capacity is slated for 2023, with full capacity target at 2026.

Other partners to the project include Total (10%), CNPC (10%), CNOOC (10%) and the consortium of Mitsui and Jogmec (10%), Kallanish Energy notes.

As previously reported, Russia’s largest bank said it would provide €2.7 ($3.18) billion for the project. It’s estimated Arctic LNG 2 would demand between $9-11 billion in external financing.