US-China Cold War Would Redirect Energy Flows
Worsening diplomatic relations between the United States and China are putting a spotlight on their economic inter-dependency in the context of global supply chains for both technology and energy.Top policymakers in the United States and some of its closest allies, including Australia and Britain, have recently hardened the language in which they describe relations with China.China has been labelled a “strategic competitor” for some time but the country is increasingly described as a “strategic adversary” implying a more confrontational relationship.Complaints about unfair trade practices…
MOL Makes 13th Discovery in Pakistan
Hungarian oil company MOL has made a gas and condensate discovery at its TAL Block in Pakistan, marking its 13th successful discovery in the country and the tenth at the same block.The company said Tuesday that the Mamikhel South-1 exploratory well had reached a total depth of 4,939 m on May 23, 2020."Upon testing the well flowed gas and condensate from Lockhart & Hangu formation at a flow rate of 6516 boepd (16.12 MMscf/d and 3240 bpd respectively), with flowing well-head pressure of 4,476 PSI at 32/64” choke. Further testing of the well is ongoing…
Japan's LNG Investments Drive Faces Risk of Souring
Japan's banks and public agencies have funneled nearly $25 billion into liquefied natural gas (LNG) projects since 2017 but the investments may sour as prices plummet from the COVID-19 pandemic and as climate change risks rise, a new study shows.Spurred on by the government to boost energy security since the 2011 Fukushima disaster shut down the country's reactors, Japan's investment in LNG rivals that for coal, the dirtiest fossil fuel, while more evidence is emerging of the high climate impacts from LNG and gas.The backing of high-risk projects that require decades of sales to return investments looks questionable…
Siemens Equipment for Pertamina's Balikpapan Refinery
Siemens Gas and Power will supply a range of compression and power generation equipment for the Petramina's Balikpapan Refinery located on Borneo Island in East Kalimantan, Indonesia.The equipment will be installed as part of Pertamina’s Refinery Development Master Plan (RDMP). The RDMP involves the construction of a residual fluid catalytic cracker (RFCC) unit with a design capacity of 90,000 barrels per stream per day (bpsd); a liquefied petroleum gas (LPG) sulfur removal unit; a propylene recovery unit; and an 80,000 bpsd middle distillate hydrotreater.Siemens Gas and Power’s scope of supply includes 17 reciprocating compressors…
IEA: Global Energy Investment to Plunge 20%
Global energy investment is expected to plunge by around 20% or $400 billion in 2020, its biggest fall on record, because of the new coronavirus outbreak, the International Energy Agency (IEA) said on Wednesday.The Paris-based IEA said this could have serious repercussions for energy security and the transition to clean energy as the global economy recovers from the pandemic.Governments are easing restrictions put in place to curb the spread of the virus after the confinement of around 3 billion people brought the global economy to a near standstill.At the start of the year…
Russian Pipe-laying Vessel Moors at Nord Stream 2 Hub in Germany
A Russian pipe-laying vessel Academic Cherskiy which Moscow can use to finish laying pipes for the Nord Stream 2 gas project, has moored near the German logistics hub in Mukran, Refinitiv Eikon tracking data showed on Monday.Led by the state gas company Gazprom, Nord Stream 2 had to suspend pipelaying works late last year, hit by fresh U.S. sanctions. The project is aimed at doubling existing undersea flows to Germany to 110 billion cubic meters per year.Cherskiy, bought by Gazprom in 2016, has sailed from the Russian Pacific port of Nakhodka where it was docked in December when the U.S.
Pemex Trading Arm Mulls Canceling May-June Cargos
The trading arm of Mexican state oil company Pemex is mulling options to slash the number of fuel cargoes the country imports in May and June as demand plummets because of the coronavirus, three sources close to the talks told Reuters.Pemex last week declared force majeure over fuel supplies from its trading arm PMI Comercio Internacional after a bottleneck of more than 60 vessels built up outside Mexican ports, waiting to discharge.But PMI still has not declared force majeure - a contract provision that allows a party to temporarily suspend its obligations due to external circumstances - over its own fuel purchases…
USA Ups BOEM Offshore Wind Budget
The Trump Administration has proposed a $189m fiscal year 2021 budget for the Bureau of Ocean Energy Management (BOEM), designating just under $27m for offshore wind.The FY 2021 budget includes approximately $26.5 million to advance offshore renewable energy development.In recognition of the role renewable energy can play in securing the Nation’s energy independence and supporting economic growth, BOEM continues to advance renewable energy through its leasing program and streamlining its permitting and National Environmental Policy Act (NEPA) processes.In addition…
PGNiG Acquires Duva Field in Norway
PGNiG Upstream Norway, a subsidiary of Polish Oil and Gas Company (PGNiG), has obtained a final administrative consent to purchase additional 10% interests in the PL636 and PL636B licences in the North Sea.Following the transaction, PGNiG Upstream Norway’s (PUN) interests in both licences increased to 30%. As a result, the volume of Duva field gas production attributable to the Company will rise to 0.2 bcm per year.“Acquisition of fields on the Norwegian Continental Shelf is one of the investment priorities of the PGNiG Group.
China Opens Up to Foreign E&P Firms
For the first time, China will this year allow foreign companies to explore for and produce oil and gas in the country, opening up the industry to firms other than state-run energy giants, as Beijing looks to boost domestic energy supplies.The long-awaited opening accompanies a reshuffle of the so-called "midstream" pipeline business, but experts say it may not excite immediate interest from global drillers because of the poor overall asset quality of China's hydrocarbon resources.From May 1, foreign firms registered in China with net assets of 300 million yuan ($43 million) will be allowed to take part in oil and gas exploration and production, t
TurkStream Gas Pipeline Launched
The Presidents of Russia and Turkey, Vladimir Putin and Recep Tayyip Erdogan, respectively, officially launched the TurkStream natural gas pipeline designed to ship Russian gas to Turkey and markets in southeastern Europe.TurkStream, which is laid in the Black Sea, is a link between the gas transmission systems of Russia and Turkey. The gas pipeline has two strings with a combined throughput capacity of 31.5 billion cubic meters. The first string will deliver gas to Turkey, while the second string is intended for gas transit…
KN Bags $148Mn Loan for its LNG Terminal
The Nordic Investment Bank (NIB) and Lithuanian liquefied natural gas (LNG) and oil terminal operator AB 'Klaipedos Nafta' (KN) have signed a EUR 134.1 million (USD 148 million) loan agreement to optimize costs of LNG terminal.The 25-year maturity loan will be directed to finance the rent payable for the Floating Storage and Regasification Unit (FSRU).“Through this loan agreement we are continuing to support Lithuania´s security of energy supply, a strategically important objective for our member country”, said Henrik Normann…
GoM Lease Fetches $159mln in High Bids
Gulf of Mexico (GoM) Lease Sale 253 in New Orleans generated over $159 million in high bids for 151 tracts covering 835,000 acres in federal waters.Twenty-seven companies participated in the lease sale, submitting approximately $175 million in bids, said Bureau of Ocean Energy Management (BOEM).“We are excited about the results from today’s lease sale, which show a continued upward trend for the year. The total from today’s lease sale and the March sale is the highest since 2015 for high bids,” said Interior’s Deputy Assistant Secretary for Land and Minerals Management Andrea Travnicek.
U.S. Senate Panel Backs Nord Stream 2 Pipeline Sanctions Bill
A U.S. Senate committee passed a bill on Wednesday to slap sanctions on companies and individuals involved in building the Nord Stream 2 pipeline from Russia to Germany that the Trump administration says would strengthen Moscow's economic grip on Europe.The Senate Foreign Relations Committee passed the Protecting Europe's Energy Security Act by 20 to 2. The bill reflects some lawmakers' concerns over Russian influence in Europe, but would need to pass the full Senate and House of Representatives and be signed by President Donald Trump to become law. (Reuters, Reporting by Timothy Gardner and Patricia Zengerle Editing by Susan Thomas)
IOC Sells IMO2020-Compliant Marine Fuel in India
State-owned Indian Oil Corp (IOC) said it has commenced delivery of Low Sulfur Furnace Oil (LSFO) for ships that is compliant with International Maritime Organisation's (IMO) mandate.The largest commercial oil company in India said in a press release that it commenced deliveries of LSFO with 0.5 per cent sulfur as marine fuel at ports in the country.The first such supply was made on 26th October 2019 to the LPG tanker Berlian Ekuator at Kandla port.ICO has made available LSFO 0.5% S grade marine fuel for immediate deliveries at Kandla and Kochi ports.
FERC Approves Plaquemines LNG Facility
The US Federal Energy Regulatory Commission has approved the construction of Venture Global's proposed $8.5 billion Plaquemines liquefied natural gas export facility in Louisiana. Venture Global LNG to build an LNG Plaquemines export terminal and a gas pipeline between the terminal and the interstate gas network.PGNiG will receive liquefied natural gas from this terminal from 2023.“We congratulate our American partners from Venture Global LNG for obtaining the final FERC approval for the construction of the second natural gas liquefaction facility.
BOEM Announces New GoM Lease Sale
The US Department of the Interior's Bureau of Ocean Energy Management (BOEM) plans to offer about 78 million acres in a region-wide Gulf of Mexico lease sale scheduled for March 2020.Lease Sale 254, which would include all unleased areas in federal waters in the gulf that are not subject to congressional moratorium, will be the sixth held under the 2017-22 federal OCS leasing program, BOEM said in a press statement.The sale would include all available unleased areas in federal waters of the Gulf of Mexico that are not subject to Congressional moratorium.“Offshore energy development is about furthering America’s energy security…
BP Exits Alaska with $5.6Bln Sale
British oil major BP Alaska announced that it is selling its entire business to Hilcorp Alaska, marking the exit from Alaska after six decades.The $5.6 billion sale includes Opens a New Window. interests in the Prudhoe Bay oil field, Point Thomson gas field and the trans-Alaska pipeline system, BP said in a release.Bob Dudley, BP group chief executive, said: "Alaska has been instrumental in BP's growth and success for well over half a century and our work there has helped shape the careers of many throughout the company.
How to Determine Which Countries Have the Best Energy Policies
Which countries have the best energy policies? This is an interesting, and rather obvious, question, considering that every country’s energy practices impact the world in one way or another. But it’s one you don’t often hear asked.That is probably because it’s hard to compare countries in any sensible and fair way, given the differences in population, size, economy and resources.Still, the world needs to know who does it best. The challenge is to measure performance against a set of agreed indicators, that governments find helpful in meeting their own challenges to develop coherent policies.It goes without saying how important this is.
FLNG Innovations Boost Gas Industry Growth
Liquefied natural gas (LNG) technologies, such as floating LNG (FLNG) innovations, driven by its shorter construction lead times and lower capital investment costs, are increasingly becoming a viable option for increased gas deployments.FLNG helps mitigate siting constraints that shore-based infrastructure may face, pointed out the Kansas City-based engineering firm Black & Veatch.The provider of engineering, procurement and construction (EPC) services for energy also stressed on the continued need for a balanced power…