Eni pauses on sale of Australian upstream assets

Market: Natural gas
14/01/21

Italian energy firm Eni has put on hold the sale of its Australian oil and gas assets after failing to attract bids near the company's valuation. This includes a 10.99pc stake in the Bayu-Undan gas field that provides feedstock for the 3.7mn t/yr Darwin LNG in the Northern Territory (NT).

The sale process has been halted, Eni said but provided no further details. It also owns and operates the Blacktip gas field in the Bonaparte basin offshore NT and owns 65pc of the undeveloped 10 trillion ft³ (283bn m³) Evans Shoal gas field in the same area.

Production from Bayu-Undan is forecast to be exhausted within the next two years. Darwin LNG will source feedstock from the Barossa gas field. Eni has no stake in Barossa but is expected to receive a share of a third-party processing fee through its stake in Darwin LNG, which is operated by Australian independent Santos.

Barossa, which is also operated by Santos, was chosen ahead of Evans Shoal as the preferred backfill supplier for Darwin LNG.

By Kevin Morrison

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07/11/25

New York approves Williams' NESE gas pipeline

New York, 7 November (Argus) — New York and New Jersey state environmental regulators today approved key permits for US natural gas pipeline company Williams' planned Northeast Supply Enhancement (NESE) gas pipeline project. Williams in 2024 shelved the controversial pipeline, which would increase gas transportation capacity from Pennsylvania gas fields into New York City by 400mn cf/d (11mn m³/d), because it was unable to acquire key water quality permits from state regulators in New York and New Jersey. But after US president Donald Trump retook office this year and began signaling his intention to revive NESE and Williams' unrelated 650mn cf/d Constitution pipeline, Williams in May asked federal regulators to reinstate its earlier authorization of NESE. If built and put into operation, NESE would be the first major interstate gas pipeline project to move forward in the northeastern US since the 2 Bcf/d, West Virginia-to-Virginia Mountain Valley Pipeline entered service in June 2024. That project only moved forward because congressional action allowed it to bypass federal permitting hurdles, which make such projects daunting for developers. Williams on Friday also withdrew its application for water quality permits for Constitution from the New York State Department of Environmental Conservation after failing to fulfill repeated information requests, the state regulator said. But the pipeline company "continues to advance" Constitution "and is preparing to follow up with additional filings" to ensure it is approved for construction and operation, a Williams spokesperson told Argus . "We're proud to move NESE forward and do our part in providing New Yorkers access to clean, reliable and affordable natural gas," Williams chief executive Chad Zamarin said in a statement. "Expanding natural gas infrastructure is vital to lowering costs and increasing economic opportunity, and the NESE and Constitution projects are important to connecting energy to opportunity in the Northeast." New York City, which is deeply dependent on gas for its power generation and home heating, pays considerably higher prices for wholesale gas than buyers from within the nearby massive gas fields of Appalachia because the pipelines that ferry that gas east to urban population centers often run full. Spot prices at Transco zone 6 in New York, an indicator for New York City gas prices, over the past year averaged $3.77/mmBtu, 41pc higher than gas prices at the Leidy Line hub, an indicator for northeast Pennsylvania gas prices. The revival of NESE and Constitution earlier this year followed negotiations between Trump and New York governor Kathy Hochul (D) on energy infrastructure. Those negotiations came after the Trump administration's decision in April to block work on Equinor's Empire Wind project off the coast of New York, only lifting a stop work order after talks on pipeline capacity took place. The Trump administration alleged the administration of former US president Joe Biden had rushed the approval process. The Norwegian developer at the time called the order "unprecedented" and "unlawful". Hochul has consistently denied allegations that Williams' renewed hopes for gas pipelines into New York stemmed from any sort of deal between herself and Trump. "We need to govern in reality," Hochul said in a statement Friday. "We are facing a war against clean energy from Washington Republicans, including our New York delegation, which is why we have adopted an all-of-the-above approach that includes a continued commitment to renewables and nuclear power to ensure grid reliability and affordability." While NESE met the standards required by state environmental regulators to obtain a water quality permit, Constitution did not, she added. New York's approval of the NESE pipeline drew the ire of community groups. "Hochul just did Trump's bidding by approving the massive Williams fracked gas pipeline," activist group New York Communities for Change said Friday on social media site X. "Hochul's decided to sell us out to Trump." By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US EPA grants more waivers from biofuel quotas

07/11/25

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07/11/25

US EPA grants more waivers from biofuel quotas

New York, 7 November (Argus) — President Donald Trump's administration today granted small refiners even more exemptions from federal biofuel blend mandates, raising the stakes of a debate about whether larger oil companies should shoulder more of the burden. The US Environmental Protection Agency (EPA) granted two full exemptions from the program's annual blend requirements, halved obligations in response to 12 petitions, and denied two others. The agency requires oil refiners and importers to annually blend biofuels or buy credits from those who do, though small facilities that process 75,000 b/d or less can request program waivers that can save them tens of millions of dollars. The agency used the same methodology as its sweeping August decision , which responded to a historic backlog of petitions and granted most refiners some relief from years of mandates. New petitions poured in afterwards, including from refiners that had not requested waivers in years. And more decisions could come soon, with EPA committing Friday to "address new petitions as quickly as possible" and to try to meet a legal requirement to decide requests within 90 days. Farm and biofuel groups fear that widespread waivers curb demand for their products and have lobbied the Trump administration to follow through on a plan to make oil companies without exemptions blend more biofuels in future years to offset past exemptions for their smaller rivals. Particularly for higher-cost products like renewable diesel and biogas, any dip in demand can prompt biorefineries to slash output. The debate has intensified in recent weeks after a refiner granted generous exemptions in August announced plans to convert a renewable diesel unit back to crude. "The impact on biofuel and agriculture markets will be devastating" without compensating for these exemptions in future biofuel quotas, said Geoff Cooper, president of the ethanol lobby Renewable Fuels Association. EPA already planned on estimating future exemptions from 2026-2027 requirements when finalizing biofuel mandates those years. But the agency has added more work to its plate with a subsequent plan to force large oil refiners to compensate for either all or half of the biofuel volumes lost to actual and expected exemptions from 2023-2025 requirements. The impact of older exemptions is less significant since the credits are expired. The challenge for EPA is that small refiners can submit new or revised petitions at any time, including for years-old mandates. That makes it hard for EPA to accurately forecast future exemptions, and biofuel groups have feared that the agency could muddle the effects of its "reallocation" plan by underestimating volumes ultimately lost to program waivers. Indeed, EPA with its Friday decisions has already waived more requirements than it predicted earlier this year. The agency last forecast that exemptions from 2023 and 2024 mandates would amount to around 1.4bn Renewable Identification Number credits (RINs) of lost demand — but now, the waivers have already reduced obligations those years by 1.92bn RINs, according to program data. If EPA sticks to its plans, that means large refiners will have to blend an even greater share in future years than expected. But if the Trump administration waters down its reallocation idea, biofuel demand could sink more than previously forecast too. There is also the risk that EPA underestimates exemptions for the 2025 compliance year. EPA last forecast that exemptions from those requirements will amount to 780mn RINs of lost demand but has not yet decided any of the 12 pending petitions for that year. Many more requests are likely. Small refiners add to their winnings The August exemptions were a windfall for some oil companies. HF Sinclair, which owns multiple small refineries, last week reported $115mn from lower compliance costs as well as a $56mn indirect benefit from "commercial optimization" of its RIN credit position. And HF Sinclair won more Friday, winning full waivers from 2023 and 2024 biofuel mandates for the "east" section of a larger 125,000 b/d complex in Tulsa, Oklahoma that before September had not previously requested relief in at least three years. The company also won partial relief for two other units from 2021 mandates. Phillips 66 won four years of partial relief for its 66,000 b/d Montana facility, as did Big West Oil for its 35,000 b/d Utah plant. Silver Eagle won exemptions from 2023 blend mandates for two smaller units it owns in Wyoming and Utah. The only Friday denials were for Chevron's 45,000 b/d Utah refinery, which applied for the first time in years just last month. But the increasingly generous relief for small refiners is likely to provoke further backlash from larger oil companies, which argue that making them blend more biofuels is anticompetitive and illegal. EPA is months behind schedule on setting biofuel mandates for 2026 and 2027 and has a deadline Friday to tell a court more about how its reallocation plan affects its timeline. Biofuel groups have asked the court to force the agency to finalize program updates by year-end. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil’s Renovabio upheld by supreme court justice

07/11/25

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07/11/25

Brazil’s Renovabio upheld by supreme court justice

Sao Paulo, 7 November (Argus) — Brazilian Supreme Court justice Nunes Marques has issued two votes rejecting constitutional challenges to Renovabio's biofuels program. The cases — ADI 7596, filed by the Democratic Renewal Party (PRD) in February 2024, and ADI 7617, filed by the Democratic Labour Party (PDT) in April 2024 — questioned the legality and fairness of mandatory carbon reduction targets imposed on fossil fuel distributors. In both decisions, the minister dismissed claims of discrimination and disproportion, affirming that Renovabio complies with constitutional principles such as equality, free enterprise, and environmental protection. He emphasized that the program's costs are ultimately borne by fuel consumers, not distributors, and that the policy aligns with Brazil's climate commitments under the Paris Agreement. Marques also rejected arguments that Renovabio's program was improperly designed to benefit private interests or lacked legislative legitimacy. He defended the program's structure, including the use of Cbio decarbonization credits, as a market-based mechanism to incentivize biofuels without public subsidies. With the votes now public, the Supreme Court will deliberate the merits of both cases. A majority ruling is required to confirm or overturn the constitutionality of the program. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Prices rise in French biomethane RGGO auction

06/11/25

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06/11/25

Prices rise in French biomethane RGGO auction

London, 6 November (Argus) — The European Energy Exchange (EEX) nearly sold out of available French biomethane renewable gas guarantees of origin (RGGOs) at its November auction, with average prices reflecting those in the over-the-counter (OTC) market since the August auction. As the final auction of 2025, this completes the average 2025 auction price for French RGGO taxes. All but 1MWh of the offered 144GWh of RGGOs were sold in the 5 November auction for a weighted average price of €13.98/MWh. EEX calculated the reference price for the auction at €13.96/MWh. Prices averaged €12.18/MWh in the previous auction, when 107GWh of RGGOs traded in August. Initially, 147GWh produced in March-June was eligible to go into the auction . Three French municipalities pre-empted 2.98GWh of the volumes before the auction, up from 2.16GWh from one municipality before the August auction. Argus assessed French uncertified RGGOs for 2025 production at €13.90/MWh on 30 October. Bids for French uncertified RGGOs had been around €12.50/MWh at the time of the previous auction. Certified, ETS-eligible RGGOs did not sell at a premium to uncertified or non-ETS eligible volumes. As in previous auctions, EEX cannot transfer ownership of the Proof of Sustainability for any volumes sold, which limits their use for compliance. For volumes sold in the OTC market, Argus assessed certified, ETS-eligible French RGGOs from any feedstock at a €9.10/MWh premium to uncertified equivalent. The French government now applies a floor for declared tax levels for 75pc of the sale of RGGOs that are not used in transport. This is based on 75pc of the average reference prices from auctions the previous year to the production. The average of the EEX reference prices for the four 2025 auctions is €10.86/MWh, which would mean a floor of €8.14/MWh. Argus assessed 2026 vintage uncertified RGGOs at €16/MWh on 30 October. Only RGGOs from subsidy-supported biomethane, where the subsidy contract was signed after 9 November 2020, are auctioned on the EEX. Around 405GWh of biomethane RGGOs were auctioned in 2025. By Emma Tribe Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Energy Transfer to supply gas for Oracle AI

05/11/25

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05/11/25

Energy Transfer to supply gas for Oracle AI

New York, 5 November (Argus) — US natural gas pipeline operator Energy Transfer has agreed to supply artificial intelligence (AI) developer Oracle with approximately 900mn cf/d (25mn m³/d) of natural gas to run three data centers, two of which are in Texas. Houston, Texas-based Energy Transfer in October said it planned to use its vast gas pipeline system to support Houston-based power company VoltaGrid in its effort to deploy 2.3GW of power infrastructure to run Oracle's data centers. Oracle, among other large AI-focused US tech firms, have sought out gas-fired power supply to quickly power new data centers that cannot rely solely on intermittent renewable generation sources nor wait the number of years it takes to build new conventional nuclear reactors. Energy Transfer is also looking at additional data center deals, including in Oklahoma and Texas that it is "very close" to finalizing, co-chief executive Mackie McCrea told analysts on 5 November. Data center counterparties in some of those potential deals have already secured intermittent power supply from renewable sources, he said, but are still "willing to pay large demand charges" to be able to pull gas from Energy Transfer's system in the event that existing power supply is interrupted. While Energy Transfer executives "would love to talk about" its recent data center deals in further detail, those data centers customers, "especially the hyperscalers, are very confidential," co-chief executive Thomas Long said. "We can't really talk about it." Asked whether Energy Transfer would ever get directly into the power generation business itself, McCrea said that while he would not rule it out, the opportunities the company have seen are mostly low double-digit or high single-digit rates of return, which they consider too low. Energy Transfer is also expanding its gas storage capacity from 233 Bcf to 240 Bcf, which the company believes will be critical to reliably serving data centers in the event of so-called "freeze-offs" in Oklahoma or the Permian basin, which occur when cold weather causes losses in natural gas output. Energy Transfer on 4 November said it had agreed to provide gas transportation capacity, including initial flow volumes of 250mn cf/d, to electric utility Entergy to fuel Facebook-parent Meta's massive planned AI data center in Louisiana from 2028-2048. Energy Transfer in February also said it had agreed to supply 450mn cf/d of gas to Denver, Colorado-based CloudBurst Data Center's planned data center campus near San Marcos, Texas, for at least 10 years. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Eni pauses on sale of Australian upstream assets

Related news posts

New York approves Williams' NESE gas pipeline

New York approves Williams' NESE gas pipeline

US EPA grants more waivers from biofuel quotas

US EPA grants more waivers from biofuel quotas

Brazil’s Renovabio upheld by supreme court justice

Brazil’s Renovabio upheld by supreme court justice

Prices rise in French biomethane RGGO auction

Prices rise in French biomethane RGGO auction

Energy Transfer to supply gas for Oracle AI

Energy Transfer to supply gas for Oracle AI

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