Adelphia Gateway expansion gets environmental OK
The US Federal Energy Regulatory Commission (FERC) gave a positive environmental assessment for NJR Pipeline's 242mn cf/d (6.8mn m³/d) Adelphia Gateway natural gas pipeline project.
FERC staff concluded that the project would not significantly affect the environment as long as NJR undertakes appropriate mitigating measures.
The project includes acquiring an existing 84-mile (135km) 18-inch mainline and a 4.5-mile 20-inch lateral gas pipeline from Interstate Energy Company. NJR, a subsidiary of New Jersey Resources, would convert a portion of these facilities from dual oil and gas transportation to solely natural gas transportation, and construct new facilities including two new compressor stations and two pipeline laterals. The project is located in Pennsylvania and Delaware. NJR expects the expansion to begin service by the end of the year.
Receiving an environmental assessment or environmental impact statement is the final step for pipeline projects before FERC makes a final decision whether to approve the project.
FERC prepares either an environmental assessment or an environmental impact statement for pipeline projects, depending on each project's scope. An environmental impact statement has more steps and includes meetings to hear public comments, as well as a final draft including FERC's response to comments.
Comments to FERC on its assessment of the project are due on 3 February.
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Indonesia’s Tangguh LNG facility offers Jun-Jul cargoes
Indonesia’s Tangguh LNG facility offers Jun-Jul cargoes
Singapore, 3 May (Argus) — Indonesia's 7.6mn t/yr BP-operated Tangguh LNG facility is offering four LNG cargoes for June-July loading, through a tender that closes on 6 May. The Tangguh LNG project in Indonesia's west Papua province is offering four cargoes on a fob basis for loading on 17, 22, 27 June, and on 2 July, or two cargoes on a des basis. But the delivery windows are unclear. The firm was last in the market in March , when it offered four cargoes on a fob basis for loading during 28-29 April, 1-2 May, 3-4 May and 17-19 May, or three cargoes on a des basis for delivery over 6-8 May, 8-10 May and 12-14 May. But it is unclear if these cargoes were sold eventually. This offer adds to a growing pool of availability for June and July cargoes, as summer restocking demand among traditional major importing region northeast Asia is poised to be lower this year. This is mainly owing to higher inventories after the winter season and more than sufficient contracted term deliveries, buyers in the region said. This is despite Japan and South Korea forecasting higher summer temperatures this year as compared to the previous year, according to the Japan Meteorological Agency and Korea Meteorological Administration on 23 April. Spot prices have remained relatively rangebound at around high-$9s to low-$10s/mn Btu since the end of March despite weak demand. Spot prices have been tracking some strength in Dutch TTF contract prices, which has reduced importers' incentive to step up spot purchases since imported spot has no obvious price advantage. The front half-month of the ANEA — the Argus assessment for spot LNG deliveries to northeast Asia — was last assessed on 3 May at $9.955/mn Btu, lower by about 11¢/mn Btu from a week earlier, but about 71¢/mn Btu higher from a month earlier. Spot demand has been mostly confined to south and southeast Asian importers. Most of southeast Asia is currently experiencing a heatwave, which is likely to continue driving spot LNG demand from firms like Thailand's state-controlled PTT. The firm has issued another tender seeking three deliveries over 1-2, 7-8 and 10-11 July that closed on 3 May. It may have awarded the tender, but further details are unclear, traders said. By Rou Urn Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
FTC clears Exxon-Pioneer deal but bars Sheffield
FTC clears Exxon-Pioneer deal but bars Sheffield
New York, 2 May (Argus) — US antitrust regulators signaled they will clear ExxonMobil's proposed $59.5bn takeover of Pioneer Natural Resources but banned the shale giant's former chief executive officer from gaining a seat on the board. A proposed consent order from the Federal Trade Commission seeks to stop Scott Sheffield, Pioneer's former chief executive, from taking part in "collusive activity" that would potentially raise crude prices and cause US consumers to pay more at the pump. The order paves the way for ExxonMobil to close its blockbuster deal for Pioneer, which will make it the leading producer in the prolific Permian shale basin of west Texas and southeastern New Mexico. It is also the top US oil producer's biggest transaction since Exxon's 1999 merger with Mobil. ExxonMobil's Permian output will more than double to 1.3mn b/d of oil equivalent (boe/d) when the acquisition closes, before increasing to about 2mn boe/d in 2027. The FTC, which has taken a tougher line on mergers under the administration of President Joe Biden, has paid close attention to oil deals announced during the latest phase of shale consolidation. Only this week, Diamondback Energy said it had received a second request for information from the regulator over its $26bn proposed takeover of Endeavor Energy Resources. And Chevron's planned $53bn acquisition of US independent Hess has also been held up. The FTC alleged in a complaint that Sheffield exchanged hundreds of text messages with Opec officials discussing crude pricing and output, and that he sought to align production across the Permian with the cartel. His past conduct "makes it crystal clear that he should be nowhere near Exxon's boardroom," said Kyle Mach, deputy director of the FTC's Bureau of Competition. ExxonMobil said it learnt about the allegations against Sheffield from the FTC. "They are entirely inconsistent with how we do business," the company said. While Pioneer said it disagreed with the FTC's complaint, which reflects a "fundamental misunderstanding" of US and global oil markets and "misreads the nature and intent" of Sheffield's actions, the company said it would not be taking any steps to stop the merger from closing. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
CEE gas operators begin binding capacity offer process
CEE gas operators begin binding capacity offer process
London, 2 May (Argus) — Gas transmission system operators (TSOs) across central and eastern Europe have launched the start of binding incremental capacity processes aimed at facilitating larger gas flows from south to north. Romanian, Bulgarian, Hungarian, Moldovan and Ukrainian operators have published joint documents outlining the necessary conditions for participating in the upcoming annual auctions on 1 July. Bulgarian and Romanian TSOs Bulgartransgaz and Transgaz will offer an additional roughly 123 GWh/d of capacity from Bulgaria to Romania at Negru Voda 1-Kardam on top of existing available capacity of 126-142 GWh/d depending on the year ( see BG-RO table ). In the event of a successful auction and subsequent economic test, the TSOs hope to reach a final investment decision (FID) in the third quarter of this year and commission the upgrades in the third quarter of 2026. Commercial operations could begin in the fourth quarter, aligning with the start of the 2026-27 gas year. This timeline has been moved forward by one year from the original proposals earlier this year . Transgaz, along with Hungary's FGSZ, will offer up to 73 GWh/d of additional capacity from Romania to Hungary at Csanadpalota on top of existing available capacity of 5-71 GWh/d depending on the year ( see RO-HU table ), but maintained its three-tiered approach elaborated in an earlier market consultation . Depending on the level of capacity to which firms commit at the auction, capacity could increase by 9.5 GWh/d, 47.3 GWh/d or 72.5 GWh/d. The smallest project could start commercial operations in the first quarter of 2028, the middle level in the third quarter of 2028, and the highest level in the third quarter of 2029. These timelines are pushed back by roughly one year from the originally-proposed dates in the February consultation. And Transgaz, along with Ukraine's GTSOU, will offer an additional 77 GWh/d of capacity from Romania to Ukraine at Isaccea 1-Orlovka 1 on top of existing available capacity of 97-109 GWh/d depending on the year ( see RO-UA table ). The TSOs aim to reach FID in the third quarter of this year and commission the project in the fourth quarter of 2028. Commercial operations could begin in October 2028. GTSOU and its Moldovan counterpart Vestmoldtransgaz will offer 173 GWh/d towards Moldova from Ukraine at Kaushany starting from the 2027-28 gas year, while simultaneously offering 159 GWh/d of capacity from Moldova towards Ukraine at Grebenyky. By Brendan A'Hearn Available and incremental capacity at Negru Voda/Kardam GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 141 - 141 2025-26 141 - 141 2026-27 142 123 265 2027-28 142 123 265 2028-29 142 123 265 2029-30-2042 126 123 249 — Bulgartransgaz, Transgaz; numbers rounded Available and incremental capacity at Csanadpalota GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 43 - 43 2025-26 46 - 46 2026-27 71 - 71 2027-28 13 - 142 2028-29 13 - 13 2029-30 5 73 78 2030-31 34 73 107 2031-32 34 73 107 2032-33-2039 63 73 136 — FGSZ, Transgaz; numbers rounded Available and incremental capacity at Isaccea/Orlovka GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 109 - 109 2025-26 109 - 109 2026-27 109 - 109 2027-28 109 - 186 2028-29 109 77 186 2029-30-2039 97 77 174 — GTSOU, Transgaz; numbers rounded Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Shell's 1Q profit supported by LNG and refining
Shell's 1Q profit supported by LNG and refining
London, 2 May (Argus) — Shell delivered a better-than-expected profit for the first quarter of 2024, helped by a strong performance from its LNG and oil product businesses. The company reported profit of $7.4bn for January-March, up sharply from an impairment-hit $474mn in the previous three months but down from $8.7bn in the first quarter of 2023. Adjusted for inventory valuation effects and one-off items, Shell's profit came in at $7.7bn, 6pc ahead of the preceding three months and above analysts' estimates of $6.3bn-$6.5bn, although it was 20pc lower than the first quarter of 2023 when gas prices were higher. Shell's oil and gas production increased by 3pc on the quarter in January-March and was broadly flat compared with a year earlier at 2.91mn b/d of oil equivalent (boe/d). For the current quarter, Shell expects production in a range of 2.55mn-2.81mn boe/d, reflecting the effect of scheduled maintenance across its portfolio. The company's Integrated Gas segment delivered a profit of $2.76bn in the first quarter, up from $1.73bn in the previous three months and $2.41bn a year earlier. The segment benefited from increased LNG volumes — 7.58mn t compared to 7.06mn t in the previous quarter and 7.19mn t a year earlier — as well as favourable deferred tax movements and lower operating expenses. For the current quarter, Shell expects to produce 6.8mn-7.4mn t of LNG. In the downstream, the company's Chemicals and Products segment swung to a profit of $1.16bn during the quarter from an impairment-driven loss of $1.83bn in the previous three months, supported by a strong contribution from oil trading operations and higher refining margins driven by greater utilisation of its refineries and global supply disruptions. Shell's refinery throughput increased to 1.43mn b/d in the first quarter from 1.32mn b/d in fourth quarter of last year and 1.41mn b/d in January-March 2023. Shell has maintained its quarterly dividend at $0.344/share. It also said it has completed the $3.5bn programme of share repurchases that it announced at its previous set of results and plans to buy back another $3.5bn of its shares before the company's next quarterly results announcement. The company said it expects its capital spending for the year to be within a $22bn-$25bn range. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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