Shell receives permission to drill on the west coast of South Africa
Shell announced on Friday that it has received environmental approval to drill five deepwater wells near the west coast of South Africa. Oil majors applied for authorization last year, and plan to drill appraisal or exploration wells at depths between 2,500 metres (8.200 ft), and 3,200 metres (10.500 ft), in the Northern Cape Ultra Deep Block of the Orange Basin. TotalEnergies and other oil companies are planning to drill near the west coast of South Africa, where the Orange Basin extends down into the waters. They hope to replicate the significant discoveries that were made in Namibia.
Analysts say that 'deep pockets' may help Abu Dhabi gain regulatory approval for Santos' bid.
Analysts say that the Australian regulators who are concerned about gas supplies in Australia will be closely monitoring Abu Dhabi National Oil Company's bid of $18,7 billion for Santos. However, they could be won over by promises to accelerate new projects. Analysts say that Santos' shares closed Tuesday at A$7.73, a far cry from the $5.76 per share (A$8.89), which was the proposed takeover bid for Australia's 2nd largest gas producer, announced on Monday. This indicates investors believe that the deal will be rejected by regulators.
ADNOC consortium targets Australia's Santos
Abu Dhabi National Oil Company's (ADNOC) is looking to expand its global gas business and has proposed a $18,7 billion takeover bid of Australia's Santos, the second largest independent gas producer. Santos has supported the plan. Here are some key details about Santos, including its production and reserves (measured in millions of barrels of oil-equivalent (mmboe)), its domestic and foreign oil and gas assets and its long-term LNG deals. 2024 Production (mmboe). Santos is the operator of Darwin LNG, Gladstone LNG and PNG LNG in Australia.
South Africa's $5.8 billion Project Aims to Produce Low-Cast Green Ammonia
A $5.8 billion project on South Africa's east coast seeks to use the country's infrastructure and cheap renewable power to make some of the world's cheapest green ammonia for clients in Europe and Asia, an executive said.South Africa is vying with other African nations, including Egypt, Morocco and Namibia, to meet rising demand in the European Union and Asia for hydrogen and ammonia described as green because they are produced from renewable energy.Ammonia is used in making fertiliser and by the chemical industry and it is also the means to deliver hydrogen, which is sought after to reduce carbon emissions but i
South Africa's Hive project, worth $5.8 billion, aims to be the leader in low-cost ammonia production
An executive revealed that a $5.8 billion South African project located on the east coast aims to use cheap renewable energy and the country's infrastructure to produce some of the cheapest green ammonia in the world for clients from Europe and Asia. South Africa competes with other African nations including Egypt, Morocco, and Namibia to meet the growing demand for green hydrogen and ammonia in Europe and Asia. These products are described as "green" because they're produced using renewable energy. Ammonia can be used to make fertiliser, by the chemical industry, and to deliver hydrogen.
Africa Energy to produce first gas from South Africa's biggest gas field in 2033
Africa Energy Corp, a Canadian-listed company, aims to begin production of South Africa's biggest gas discovery by 2033. Its CEO made the announcement on Tuesday as it pushed ahead with a project that former operator TotalEnergies abandoned. The company is waiting for regulatory approval on a revised environmental authorisation in order to survey Block 11B/12B of South Africa's south coast. South Africa is diversifying away from coal-fired electricity generation by using domestic gas. A flurry new projects are being pursued, including the first liquefied gas import terminal on the east coast.
Shell approves Aphrodite offshore gas project
Shell Energy said that it has taken a final investment decision in its Aphrodite Gas Project offshore Trinidad and Tobago. In a press release, the company said that it expects to start producing gas in 2027. It will reach a maximum production of 18,400 barrels oil equivalent per day. Shell has a 45% stake in Trinidad's Atlantic LNG Plant, which is capable of producing 12 million metric tonnes per annum of super-cooled gas. However, the plant has suffered from a shortage of natural gas. Shell is not able to obtain its full share from the plant of more than 5.5 MTPA LNG.
Viva Energy, Australia's LNG terminal developer, gets approval to build the Geelong LNG Terminal amid fears of gas shortages
Viva Energy Group announced on Friday that the Victorian government had approved the construction of the terminal for liquefied gas (LNG) in Geelong. This comes amid increasing concerns about a possible gas shortage along the east coast. After the competition regulator of Australia warned that the east coast could face a long-term shortage, the Australian government actively sought gas supply commitments in order to close the gap between the supply and demand. The peak demand for gas in Australia during winter is due to the colder temperatures.
SSE Reduces Investment Plans by 15% Amidst Project Delays
British utility SSE on Wednesday cut its five-year investment plans by 15%, or 3 billion pounds ($4.04 billion), reflecting project delays, supply chain disruptions and also changes in the economic outlook.SSE, which has been pushing ahead towards green energy goals, reduced its investment to around 17.5 billion pounds, with its renewables division taking the biggest hit with a 1.5 billion pound cut.Projects that face delays include Berwick Bank, the world's largest offshore wind farm off Scotland's east coast…
Santos Australia gets the green light on $2.3 billion Narrabri Gas Project
Santos’ A$3.6 billion (2.32 billion) Narrabri Gas Project in Australia, can proceed. A tribunal has ruled that the project is allowed to go ahead, as the increase in energy supply for the Australian market outweighs concerns about the impact on the climate or damage to Indigenous heritage sites. The decision comes after a decade of fighting over the granting of leases to Santos, which would allow it to drill 850 wells in the northwest New South Wales area and extract coal seam gas. This area overlaps the culturally important Pilliga forest. Local Gomeroi have been against the development.
Want to reduce your trade surplus with Trump Russell
There are certain trends that will likely emerge amid the chaos and confusion created by U.S. president Donald Trump's global tariff rollout and retreat. One is that countries looking to make a deal will purchase more U.S. products in order to reduce their trade surpluses. Even relative successes like Boeing aircraft highlight the lack of U.S. products that are competitive. Energy commodities like crude oil, LNG and coal are one area that countries could increase their imports of the United States. If every country that wants to do a deal will commit to buy more U.S.
Want to reduce your trade surplus with Trump Russell
There are certain trends that will likely emerge amid the chaos and confusion created by U.S. president Donald Trump's global tariff rollout and retreat. One is that countries looking to make a deal will purchase more U.S. products in order to reduce their trade surpluses. Even relative successes like Boeing aircraft highlight the lack of U.S. products that are competitive. Energy commodities like crude oil, LNG and coal are one area that countries could increase their imports of the United States. If every country that wants to do a deal will commit to buy more U.S.
China's petchem plants could be closed as US LPG tariffs loom
Industry insiders say that Chinese petrochemical manufacturers who buy US LPG worth $11 billion annually will cut production or close for maintenance as Beijing's tariffs on U.S. imported products drive up prices. Over 30 PDH plants rely heavily on U.S. LPG or propane for the production of propylene, a plastics intermediate. Armaan Ashraf is the global head of natural gases liquids for consultancy FGE. He said that tariffs may force Chinese PDH operators cut their average operating rates by 15 percent and reduce demand for propane at steam crackers and PDH by at least 500 000 metric tons each month.
Albanese, an Australian company, has pledged A$2.3 billion in order to assist homeowners with solar batteries
The Australian Prime Minister Anthony Albanese pledged A$2.3billion ($1.39billion) on Sunday to help homeowners purchase batteries to store solar energy and reduce their energy costs. This is a key issue for the 3 May general election. Albanese’s center-left Labor is neck-and-neck with the Liberal-National Opposition led by Peter Dutton in opinion polls. Dutton has been campaigning on a plan for lower electricity bills by forcing LNG producers to divert some of their exports to domestic use.
Trump exempts oil imports from his sweeping tariffs
The White House announced on Wednesday that imports of refined products, oil and gas were exempted by President Donald Trump from his new sweeping tariffs. The exemption is a welcome relief for the U.S. Oil Industry, which was concerned that new taxes could disrupt flow and increase costs of everything from Canadian crude oil to Midwest refineries and European cargoes to the Eastern Seaboard. Trump announced on Wednesday that he will impose a baseline 10% tariff on all imports into the United States, and higher duties on the country's largest trading partners.
Gas giants claim that Australia's opposition plan to reserve supplies may worsen the shortage
Gas giants around the world said that a proposal made by Australia's coalition of opposition to force producers to divert more gas from exports into the domestic market in an attempt to win votes would discourage investment and not solve the looming gas shortages. The conservative Liberal-National Coalition has pledged to lower power bills by implementing a gas reservations scheme. The center-left Labor government led by Prime Minister Anthony Albanese has introduced a cap on wholesale gas prices…
Shell warns that Australia's gas reservations plan could worsen shortages
Shell warned Tuesday that Australia's proposal to force more gas from export onto the domestic market would end up discouraging investment and worsening shortages. Energy has become a major issue in the campaign ahead of Australia's general election on May 3. The conservative Liberal-National Coalition pledged to lower power bills and avoid a shortage on the East Coast through a reservation scheme. Shell Australia Chair Cecile wake said that export controls are not the best solution. She also questioned if they would have a material impact on consumer prices.
Australia's east Coast could experience gas shortages during winter, warns regulator
The Australian Competition Regulator warned on Thursday that the East Coast could be left with a shortage of gas during its winter period spanning from July to September if LNG producers export all their gas not contracted. In its quarterly update, the Australian Competition and Consumer Commission said that the east coast may face a shortage of 9 petajoules while the southern states might face a 40 PJ deficit. Winter in Australia is a time of peak demand for gas due to the colder temperatures. Unexpected weather events and power plant failures can also increase the risk of shortages.
EIA: US crude oil inventories are rising, but fuel is being drawn down due to ongoing maintenance.
The Energy Information Administration (EIA), which tracks seasonal refinery maintenance, reported on Wednesday that U.S. crude stockpiles increased and fuel inventories decreased last week. The EIA reported that crude inventories increased by 1.4million barrels, to 435.2million barrels for the week ending March 7. This was compared to analysts' expectations in an online poll of a 2million-barrel increase. The EIA reported that crude stocks at Cushing, Oklahoma's delivery hub, fell by 1.2 millions barrels in the past week. The report prompted a rise in oil futures. Oil futures rose after the report.
EIA: US crude stocks fall as refining increases, fuel inventories increase
The Energy Information Administration (EIA), which released its report on Wednesday, said that U.S. crude stockpiles dropped unexpectedly as refining activity increased, while gasoline and distilate inventories showed a surprise build. The EIA reported that crude inventories dropped by 2.3 millions barrels, to 430.2 million in the week ending February 21. This was in contrast with the analysts' polled expectations of a rise of 2.6 million barrels. Cushing, Oklahoma's delivery hub for U.S. Crude Futures, saw its stocks rise by 1.3m barrels. They now total 24.6m barrels. This is the highest level since November.
