Monday, August 3, 2020

Natural Gas News

Total Books $8 Bln Asset Impairments

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French energy group Total will book an exceptional impairment charge of $8 billion mainly on its Canadian oil sands and liquefied natural gas projects, it said on Wednesday."Overall, the exceptional asset impairments that will therefore be taken into account in the second quarter of 2020 amount to $8.1 billion, including $7 billon on Canadian oil sands assets alone," Total said in a statement, adding that this will increase its gearing ratio by 1.3%.(Reporting by Bate Felix; Editing by David Goodman )

US-China Cold War Would Redirect Energy Flows

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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…

China Starts Construction of Southern Part of China-Russia East Gas Pipeline

Illustration - hanmaomin / AdobeStock

Construction has started on the southern portion of the China-Russia East natural gas pipeline, which carries supplies from the Power of Siberia system in Russia, China Oil & Gas Piping Network Corp (PipeChina) in a statement on Tuesday.This portion starts at Yongqing in China's northern province of Hebei and ends at Shanghai in eastern China. The full China-Russia East system is a 5,111-km (3,176-mile) pipeline pumping natural gas from the Siberia region in Russia to China.Once launched in 2025…

US Oil Rig Count Rises for First Week Since March

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U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for a 12th week in a row, although they added one oil rig in the first weekly increase since March as a recovery in crude prices tempt some producers back to the well pad. The U.S. oil and gas rig count, an early indicator of future output, fell by two to an all-time low of 251 in the week to July 24, according to data on Friday from energy services firm Baker Hughes Co going back to 1940.That was 695 rigs…

PipeChina to Buy $56B Worth of Pipelines

Illustration - hanmaomin

China took a major step in the reform of its national oil and gas pipeline network, with newly formed PipeChina agreeing to buy pipelines and storage facilities valued at 391.4 billion yuan ($55.9 billion).Under the deal, PipeChina, known formally as China Oil and Gas Pipeline Network, will take over oil and gas pipelines and storage facilities from state-owned energy giants PetroChina and Sinopec, in return for…

Tech File: Hybrid-Electric Propulsion for Crew-less Vessels

Image: XOCEAN/Torqueedo

The move to autonomy on the world's waterways is undeniable, with the direction clear, the pace hazy. What is clear is the need for reliable, fuel efficient propulsion, and last month Torqueedo announced a deal to provide hybrid-electric propulsion systems to power XOCEAN’s XO-450 USV, a custom-designed composite wave-piercing catamaran about the length of a typical automobile.XOCEAN is embarked on a mission to to transform the way subsea data is collected…

Santos Flags $560 Mln Impairment Charge on Virus-led Oil Slump

(File photo: Santos)

Australia's Santos said on Tuesday it will book non-cash impairments of up to $560 million after tax, joining a number of global energy majors forced to write down assets after a coronavirus-induced slump in oil prices.The country's second-largest independent gas producer expects to record non-cash charges of between $490 million and $560 million after tax in its 2020 interim results, it said in a statement.Most…

Chevron CEO Sees Continued 'Choppy Economic and Price Activity'

Mike Wirth (Photo: Chevron)

The chief executive of U.S. oil giant Chevron Corp on Monday said the uncertainty of the COVID-19 pandemic has it planning for "choppy" oil prices and economic activity globally.Chevron said on Monday it would buy oil and gas producer Noble Energy Inc for about $5 billion in stock, the first big energy deal since the coronavirus crisis started."The crystal ball is cloudy right now," Mike Wirth said in an interview.

Gazprom Neft Sells Its First Arctic Oil Cargo to China

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Russia's Gazprom Neft has sold its first ever Arctic oil cargo to China to ChemChina, two sources familiar with the deal told Reuters on Thursday.This week, Gazprom Neft said it had sent 144,000 tonnes of light Novy Port oil grade to the Chinese port of Yantai on the Bohai Sea from Russia's north-western city of Murmansk, using the Northern Sea Route (NSR) through Russia's Arctic waters.The Delta Hellas vessel used part of the NSR, a route requiring icebreakers and ice-class tankers, Refinitiv Eikon data showe

Opinion: Egypt Banks on Renewables to Meet Expected Energy Demand Surge

Photo courtesy: Wärtsilä Energy Business

To meet its soaring demand for energy, Egypt is turning to renewable sources. Its targets, if accomplished, will see it become a pioneer in the African energy landscape. But are the plans realistic?Egypt’s population has now passed 100 million. As one of the most populous and fastest-growing nations on the African continent, providing electricity to all its citizens is a matter of priority for the Egyptian government.To ensure continuous security and stability of energy supply…

Woodside's Revenue Slumps More than Expected

For illustration; North Rankin Complex, North West Shelf Project, Western Australia - Credit: Woodside

Australia's Woodside Petroleum Ltd reported a worse-than-feared 29% drop in quarterly revenue, hit by weak spot liquefied natural gas (LNG) prices, but said it still expected to book a net profit in the first half.The hit came due to the double whammy of a global gas glut and a slump in demand with the coronavirus pandemic, and sent the company's shares down more than 2% while its peers were all trading higher."It's…

Oil Industry Veterans to Launch Hydrogen Investment Fund

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Two energy industry veterans plan to launch an investment fund focused on hydrogen this year as more and more governments include the niche fuel in their global warming battle plans.Hydrogen has long-been touted as a potential clean fuel as it only emits water vapour but it has failed to gain traction, mainly because of historically high production, transportation and storage costs.But with the European Union for one now looking to promote so-called green hydrogen to help reach net zero emissions…

Japan's JERA Books Hefty One-off Losses on 2019/20 LNG Supplies

Illustration only: An LNG Tanker - Credit:vladsv - AdobeStock

Japan's JERA, the world's biggest buyer of liquefied natural gas (LNG), booked tens of billions of yen in estimated one-off losses on its supply in the year ended on March 31, due to slumping prices, its president Satoshi Onoda said on Thursday. The losses highlight the issue for Japanese utilities, which have committed to large LNG volumes on contracts linked to oil prices, while spot prices for the chilled fuel…

China: BP, ENN Sign 300,000t a Year Gas Supply Deal

Image Credit: BP

British oil major BP has signed a gas supply agreement with China's ENN Group (ENN) for the supply of 300,000 tonnes per year of pipeline gas re-gasified from LNG for two years from January 1, 2021, in Guangdong, China. The LNG will be received and re-gasified through the LNG receiving terminal of Guangdong Dapeng LNG Company Limited (GDLNG) where BP holds regasification capacity. Dev Sanyal, executive vice president of BP gas & low carbon energy…

US LNG Exports at 20-month Low

(File photo: Freeport LNG)

Natural gas flows to U.S. liquefied natural gas (LNG) export plants plunged this month after falling to a 20-month low in June as coronavirus lockdowns cut global demand for the fuel.Before the pandemic slashed energy demand, U.S. producers counted on LNG exports to keep growing fast as an outlet for their record gas output. But after soaring 68% in 2019 and 53% in 2018, U.S. LNG exports were only expected to rise about 7% in 2020.Gas pipeline flows to U.S.

Indonesia Produced 104.8 LNG Cargoes in Jan-June Period

Image for illustration - Credit: Altin Osmanaj/AdobeStock

Indonesia produced 104.8 standard cargoes of liquefied natural gas (LNG) from its Bontang and Tangguh LNG plants in between January to June. Susana Kurniasih, upstream oil and gas regulator SKK Migas' spokeswoman told Reuters.79 cargoes of LNG were exported and 25.8 cargoes were sold domestically in first half of 2020. 20.5 cargoes of domestic sales were sold for electricity. (Reporting by Wilda Asmarini; Writing by Fathin Ungku; Editing by Louise Heavens)

Essar Steel Seeking LNG Cargoes for 2021-2023

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India's Essar Steel is seeking liquefied natural gas (LNG) cargoes for delivery over 2021 to 2023, two industry sources said on Tuesday.It is seeking 30 trillion British thermal units (TBtu) for delivery over the three years in a tender which closes on Tuesday, one of the sources said, adding that this works out to about 8 to 9 cargoes a year.Essar Steel is asking for the cargoes to be priced on Platts' Japan-Korea-Marker (JKM) linked basis…

This Energy Source Can Support Your Sustainability Goals Without Wrecking Your Budget

Photo courtesy of PERC

Port operations are so all-encompassing and downright dynamic that they operate almost like miniature cities. So it’s no surprise these key transition points in the global supply chain are treated as such by regulators with regard to emissions compliance and air quality standards.On their path to a cleaner operation, ports can often face outside pressure on their operational budgets. Even the tiniest decision…

Iran's Oil Storage Almost Full as Sanctions and Pandemic Weigh

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Iran has slashed crude oil production to its lowest level in four decades as storage tanks and vessels are almost completely full due to a fall in exports and refinery run cuts caused by the coronavirus pandemic, industry data showed.Total onshore crude stocks surged to 54 million barrels in April from 15 million barrels in January, and swelled further to 63 million barrels in June, according to FGE Energy.Market…

US Approves LNG Exports from Oregon

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The U.S. Energy Department on Monday approved the export of up to 1 billion cubic feet per day of liquefied natural gas from a proposed terminal in Oregon, a move it said would ease U.S. sales of the fuel to Asian markets.The approval advances efforts by President Donald Trump's administration to increase U.S. fossil fuel shipments around the globe at a time big projects are increasingly under strain from environmental protests and lawsuits.“Today’s export authorization for Jordan Cove…