Sunday, May 19, 2019

Gas Exports News

Kinder Morgan's $1.75 bln Gas Pipeline Hit with Steel Tariff

Photo courtesy of  Kinder Morgan

U.S. pipeline operator Kinder Morgan Inc will pay a tariff on imported steel used in a $1.75 billion natural gas pipeline project, the U.S. Department of Commerce ruled on Monday, dealing a setback to energy industry efforts to avoid the penalties.The tariff could add up to $80 million to the construction cost of Kinder Morgan's Gulf Coast Express Pipeline, analysts estimated, because about half the project employs some Turkish pipe subject to a 50 percent tariff.

US LNG Opens Floodgates to Europe

Photo: Delegation of the European Union to the United States

The United States has nearly tripled its natural-gas exports to the European Union (EU) since July and signed new licenses seeking to establish American energy as an EU mainstay. US exports of LNG surged following a meeting between Donald Trump and Jean-Claude Juncker in July 2018.In their Joint Statement of 25 July 2018 in Washington D.C., President Juncker and President Trump agreed to strengthen EU-U.S. strategic cooperation with respect to energy. They came in particular to an understanding on the benefits of expanded exports of U.S.

U.S. FERC Approves Two New LNG Export Terminals

Chenier's Sabine Pass LNG Facility (CREDIT: Cheniere)

The U.S. Federal Energy Regulatory Commission (FERC) on Thursday approved construction of two proposed liquefied natural gas (LNG) export terminals, Tellurian Inc's Driftwood in Louisiana and Sempra Energy's Port Arthur in Texas.Tellurian said in a release it planned to make a final investment decision on its $30 billion Driftwood project, which includes pipelines and production fields in addition to the liquefaction plant, in 2019 with first LNG production…

$13 Bln Papua LNG Project Pushes Ahead

France's Total and its partners signed a long-awaited deal with Papua New Guinea on Tuesday that will allow initial work to start on a $13 billion plan to double the country's liquefied natural gas exports.Developing the Pacific island nation's gas reserves is seen as crucial to its economy as LNG is its biggest export earner, while demand for the fuel is surging globally.Total's partner Oil Search said the agreement would allow the parties to start…

U.S. Natural Gas Production Sets New Record

Graph: EIA

According to the U.S. Energy Information Agency (EIA), US natural gas production registered an increase by 10.0 billion cubic feet per day in 2018, noting an 11% rise in comparison to 2017.The development reported was the largest annual increase in production on record, establishing a record high for a second year in a row, it said in a press release.U.S. natural gas production measured as gross withdrawals averaged 101.3 Bcf/d in 2018, the highest volume on record, according to EIA’s Monthly Crude Oil, Lease Condensate, and Natural Gas Production Report.U.S.

Russian Share of European Gas Growing

Graphics: Rystad Energy

With gas supplies growing at a faster rate than domestic demand, Russia can increase pipeline and liquefied natural gas (LNG) exports to Europe, said a report.Russia’s gas production has been steadily increasing since the low of 611 Bcm in 2015, and reached 695 Bcm in 2018, according to a report form Rystad Energy, an independent energy research and business intelligence companyMature fields exhibit relatively high decline rates, but volumes from the recent start-ups and discoveries in Yamal, East Siberia and the Far East are expected to offset the decline.

EIA: Azerbaijan Surges in Natural Gas

Graphics: U.S. Energy Information Administration

Azerbaijan is an important supplier of crude oil and natural gas in the Caspian Sea region, particularly to European markets, the US Energy Information Administration said in its report.The EIA’s report notes that Azerbaijan’s exports of natural gas are poised to become a more significant part of the country’s economy.Azerbaijan produced about 600 billion cubic feet (Bcf) of dry natural gas in 2017 and exported about 210 Bcf, according to EIA’s International Energy Statistics.“Azerbaijan is planning to expand its natural gas exports to Europe.

Equatorial Guinea to Offer Ophir's Old Blocks

© Cla78 / Adobe Stock

Equatorial Guinea will offer offshore Block R with the related Fortuna gas development project in the April licensing round, after the concession was reclaimed from Ophir Energy Plc, the oil minister said on Tuesday.Gabriel Obiang Lima told Reuters in Cape Town that Block R would be one of up to 13 deepwater and ultra deepwater blocks offered in the licensing round on April 1.Ophir was denied an extension in December to its licence for Block R and its plan for a floating liquiefied natural gas (LNG) project.

Gazprom Starts Operations at Final Yamal Unit

(Photo: Gazprom)

Russian gas giant Gazprom said on Wednesday it had begun operations at a third and final unit at its Bovanenkovo gas field on the Arctic Yamal peninsula, allowing it to boost natural gas production.Gazprom also said it had increased the capacity of the Ukhta-Torzhok gas pipeline, aimed at facilitating Russian gas exports to northern Europe, including via the Nord Stream pipeline.Gazprom plans to export record-high natural gas volumes of 200 bcm to Europe this year.The company said that with the launch of the final unit, Bovanenkovo will reach a projected capa

LNG Booster for Canada

Image: LNG Canada

Canada could increase revenues from exports to Asia by $6.366 billion with the two new major liquified natural gas (LNG) projects in British Columbiaprojects, said a new research report.A new paper by Macdonald-Laurier Institute Munk Senior Fellow Philip Cross, titled BC’s LNG Projects: A Turning Point for Canada’s Energy Industry, makes the case that these two projects will hold considerable benefits.The most important impact could be that greenlighting…

U.S. Approves LNG Exports from Corpus Christi, Texas Plant

The U.S. Department of Energy said on Friday it has approved exports of liquefied natural gas exports to non-free trade agreement countries from the Corpus Christi Liquefaction Project in Texas for two years.The approval for 2.1 billion cubic feet per day of natural gas was issued to Cheniere Marketing, LLC and Corpus Christi Liquefaction, LLC, who own the plant. The DOE authorized exports from the plant to free trade agreement countries in September.(Reuters, Reporting by Timothy Gardner Editing by Chizu Nomiyama)

Peru Suspends Natural Gas Exports, Imposes Fuel Rationing

Peru has suspended exports of natural gas and will impose fuel rationing due to technical issues at Argentine energy company Pluspetrol's operations in the country, it said on Thursday.Peru, one of South America's largest producers of natural gas, declared an emergency to direct all natural gas supplies for domestic consumption, citing a drop in production at Pluspetrol's Las Malvinas plant in the Camisea gas fields in southern Peru.The Camisea consortium…

Gazprom CEO Says Output Up This Year

Alexei Miller (Photo: Gazprom)

Gazprom's output in the last nine and a half months is up by 6.8 percent year on year and the Russian gas producer expects production close to 500 billion cubic metres (bcm) this year, RIA news agency cited its chief executive as saying.The TASS news agency, also citing Gazprom CEO Alexei Miller, said the company had increased gas deliveries to non-CIS countries by 8 bcm in the past nine and a half months.Gazprom said in a follow-up statement that its…

Israeli, Egyptian Partners Buy into Pipeline to Allow Gas Deal

Israeli and Egyptian partners have agreed to purchase 39 percent of the shares in the EMG pipeline for $518 million, a deal that will enable natural gas exports from Israel to Egypt to begin as early as the start of 2019, the companies said on Thursday.Under the deal, Israel's Delek Drilling and Texas-based Noble Energy who together have been developing Israeli gas fields, will each pay $185 million, while the Egyptian East Gas Co will pay $148 million for the stake in EMG, whose pipeline runs between the two countries.The deal also includes EMG agreeing to e

Norway's Gas Exports Set to Match Annual Record

Emden terminal (Photo: Gassco)

Norway's gas exports hit a new high of 36.8 billion cubic meters (bcm) this summer and the annual deliveries will be on a par with the record annual figure achieved in 2017, gas system operator Gassco said on Friday.Between May and August, which is normally a season with fewer gas exports, Norway's deliveries almost matched a normal winter level as European importers needed to refill depleted gas storages which drained during last year's cold winter."It's too early to say exactly where we'll end up this year…

Germany to Build LNG Terminal in 'Gesture to U.S.'

Germany will chose a city to host a new liquefied natural gas (LNG) terminal by year end's in what its economy minister on Tuesday called "gesture" to the United States, which wants to increase gas exports to Europe."This is a gesture to our American friends," Peter Altmaier said after a meeting with the EU's energy chief in Brussels.

Environmentalists File Second Complaint to Block Nord Stream 2

Photo courtesy of Nord Stream 2

Environmental campaign group ClientEarth has filed a complaint with a court in Sweden to block the construction through Swedish waters of the Nord Stream 2 gas pipeline intended to transport Russian gas to Germany, it said on Wednesday.Sweden approved the pipeline in June, but ClientEarth's complaint argues that the Swedish Ministry of Enterprise and Innovation failed to consider the impact the project would have on wildlife in the Baltic Sea.The work…

Yamal LNG Exports Accelerate in Time for Winter

(File photo: Sovcomflot Group)

Liquefied natural gas exports from Novatek's Yamal terminal in the Arctic have come on stream faster than expected over the summer and exceeded volumes from Russia's only other LNG facility, Sakhalin, for the first time in August.The pace of commissioning the multi-billion dollar project has surprised a market used to chronic delays. Additional volumes from the start of another facility should now come in time for the northern hemisphere winter, a time of price spikes.Novatek said earlier this week it had begun commissioning the third train…

Gazprom Targets Exports to Europe

The head of Gazprom's export arm said the Russian gas giant wants to increase its exports to Europe beyond record high levels seen last year."Last year we achieved the record figure of 197 bcm (billion cubic feet) and our ambitions are going much higher for the next year," Elena Burmistrova, director general of Gazprom Export, told an oil conference in Norway on Monday, adding she expected European gas demand to grow by 80 bcm by 2030.The head of Gazprom said in January that Russia's gas exports to Europe and Turkey rose by 8.1 percent to a record high 193.9

Nord Stream 2 Seeks Alternative Route to Avoid Danish Waters

© Nord Stream 2 / Axel Schmidt

The Russia-led Nord Stream 2 consortium said on Friday it has applied to Denmark for an alternative gas pipeline route through the Baltic Sea that would avoid the Nordic state's territorial waters.Denmark is facing a dilemma on whether the project can be built near its Baltic coast and its parliament may pass legislation allowing it to veto the Nord Stream 2 pipeline going through Danish territorial waters on security grounds.Russia is keen to press…