German court stops N05-A gas field construction again
A German court has annulled the permit for a seafloor cable necessary for the planned gas drilling platform N05-A in the Dutch and German North Sea on environmental grounds.
Lower Saxony state water authority NLWKN had upheld an earlier permit decision on 19 July against a complaint by environmental organisation DUH, which had argued that stone reefs discovered in the area deserved additional environmental protection. The administrative court at Oldenburg annulled the permit today after DUH had sued NLWKN, saying that the permit was "likely to be unlawful upon summary examination of the factual and legal situation". NLWKN had ordered a compensation payment without sufficiently weighing up conservation interests against other interests, the court said.
The underwater power cable is intended to connect the gas extraction platform in the Dutch North Sea with a nearby wind farm on the German side of the border. DUH has repeatedly called on the Lower Saxony authorities to withdraw the permit on the grounds of new information for the environmental impact assessment.
The N05-A gas project has been met with continuous opposition from environmental groups as well as local municipal authorities. They had achieved a temporary stop to construction in early June at a Dutch court, which was subsequently lifted. Greenpeace protested at the construction site on 31 July, before operator firm ONE-Dyas achieved an injunction at a Dutch court to stop Greenpeace from obstructing the installation.
ONE-Dyas "has received all necessary permits to start gas extraction" from the Dutch side, the firm told Argus in June. But no permit is in place to extract any gas from the German side of the gas field as yet. And any further delay would probably move the timeline for first gas substantially back from December this year, ONE-Dyas said previously.
The Dutch government granted an extraction and construction permit for the N05-A field in 2022. The field could produce about 2bn m³/yr in its initial phase, ONE-Dyas said previously.
NLWKN or ONE-Dyas can escalate the decision to the next higher court for an appeal, the court said.
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East Timor takes stake in Bayu-Undan gas field
East Timor takes stake in Bayu-Undan gas field
Darwin, 17 September (Argus) — The partners in the Bayu-Undan joint venture (BUJV) gas project have agreed to transfer a 16pc stake to East Timorese state-owned firm Timor Gap. A sale and purchase deed has been signed, with Timor Gap to participate in BUJV for the remainder of the project's lifespan, with the production-sharing contract for Bayu-Undan running to 30 June 2026 or until extraction ends, said operator Australian independent Santos. The deal follows an initial agreement in 2023 with Timor Gap on the proposed Bayu-Undan carbon capture and storage project, which Santos chief executive Kevin Gallagher recently described as the "next big project we really want to focus on" . BUJV includes the near-depleted gas field located 500km northwest of Australia in East Timorese waters, which formerly produced feedstock for the 3.7mn t/yr Darwin LNG terminal operated by Santos. Darwin LNG is preparing to receive next year the first gas from Santos' Barossa project , while Bayu-Undan continues to produce natural gas liquids and for the Australian domestic market. Santos will hold a 36.5pc interest in BUJV following the transfer, Japanese upstream firm Inpex 9.6pc, Tokyo Timor Sea Resources, owned by Japanese utility groups Jera and Tokyo Gas 7.7pc, Italian energy firm Eni 9.2pc and South Korean upstream firm SK E&S 21pc. Timor Gap is the majority shareholder in the Greater Sunrise LNG project, presently in the concept select phase . The Australian government is pressing for more action after years of stalled progress with concerns China could instead develop the field in partnership with East Timor. Greater Sunrise partners Timor Gap with 56.56pc, Australian independent Woodside with 33.44pc and Japanese utility Osaka Gas with 10pc. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Washington voters waver on GHG repeal: Poll
Washington voters waver on GHG repeal: Poll
Houston, 16 September (Argus) — Support for a repeal of Washington's carbon market in the upcoming November election may be softening, while a repeal targeting the state's plans to phase out natural gas may be gaining strength, according to a recent public opinion poll. The poll — which canvassed 403 registered state voters by phone and online earlier this month — indicates just under a clear majority of voters leaning towards a "no" vote on initiative 2117, which would repeal language in the state's Climate Commitment Act (CCA) authorizing the state's cap-and-trade program. A successful repeal would prevent local and state officials from creating a similar replacement for the "cap-and-invest" program. Data collected in the survey indicates that 46pc of those surveyed would vote against the repeal, with the bulk of voters identifying as Democrat, with 21pc Republican support. The repeal vote received 30pc support, with slightly more than half those surveyed in favor identifying as Republican, and a further 2pc of the total surveyed undecided on the issue. Washington's "cap-and-invest" program requires large industrial facilities, fuel suppliers and power plants to reduce their greenhouse gas emissions by 45pc by 2030 and by 95pc by 2050, from 1990 levels. Revenue from state allowance auctions and other related funds is required by state law to be used for critical climate projects throughout Washington. In contrast, initiative 2066 received a majority support in requiring the state to continue to provide natural gas to utility customers, at 47pc. The ‘no' vote to continue dissuading the use of natural gas in the state as part of the state's energy transition plan garnered 29pc, with a further 24pc undecided. Respondents identifying as Republican formed the bulk of the "yes" vote with 68pc. Initiative 2066 would repeal HB 1589, signed into law by governor Jay Inslee (D) earlier this year. The law creates planning requirements for certain utilities to comply with a network of state regulations and greenhouse gas (GHG) emission reduction targets and transition away from natural gas in cost-effective ways. Let's Go Washington, a political action committee, has backed both initiatives over the past year, on the narrative that the state's plans to transition away from natural gas-use and the cap-and-trade program raise fuel and energy prices for families. The poll, conducted by Cascade PBS/Elway, had 43pc of respondents identify as Democrat, 24pc as Republican and 34pc as Independent. Respondents were primarily ages 36 and older, from western regions of the state and with the majority, at 34pc, from suburban areas. Under state law, either initiative will need to receive a majority of total votes cast to pass in the 5 November election. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
The Hague eyes sector agreement to support gas output
The Hague eyes sector agreement to support gas output
London, 16 September (Argus) — The new Dutch government aims to reach agreement with the oil and gas sector on support for domestic North Sea production, while introducing a new law to make gas supply more secure. The government in its new longer-term plan set out a new policy approach to its promise to "scale up" domestic gas production from the North Sea. A sector agreement would "increase investment security and the predictability of government policy", the cabinet said. Dutch domestic gas production is in long-term decline, although the climate and green growth ministry, and research organisation TNO, forecast some scope for domestic production to stay stable until around 2030 before dropping, depending on overall investment. Much like the previous government, the current administration has stated its intention to boost North Sea production . Former mining minister Hans Vijlbrief said last year that the government was moving to slow the rate of gas output decline "as much as possible". The previous coalition government had already been using tailor-made agreements with companies involving decarbonisation, while the new incoming coalition cabinet in May announced its intention to use this policy tool in other areas as well. The government released a more detailed outline of planned policies and legislative changes on 13 September, after the previous coalition agreement was published in mid-May. And by the fourth quarter, the government plans to consult on a new law to "strengthen crisis preparedness in the field of gas market and increase robustness for the gas system". This includes some EU-level developments, such as a focus on energy savings in the new European regulation on security of gas supply, the government said. And the cabinet said it would examine how "the government, in addition to the market, can take a more proactive role in ensuring that gas storages are filled". The Netherlands does not presently have a strategic gas reserve, unlike other countries such as Austria or Italy. And in the coalition agreement, the parties had set out to "establish reserves" for gas, in order to keep the giant Groningen gas field closed. By Till Stehr Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Firms bet on US LNG bunkering growth
Firms bet on US LNG bunkering growth
London, 16 September (Argus) — Demand for LNG as a marine fuel in the US and Central America is set to grow sharply in the coming years, as the global LNG-fuelled fleet expands rapidly and with firms keen to lock in capacity as new environmental standards on maritime emissions take effect. LNG bunkering capacity and infrastructure — onshore terminals, and LNG bunkering barges and bunkering vessels (LNGBVs) — in the US and Central America has expanded rapidly in recent years. And the global LNG-fuelled fleet is projected to expand to 1,154 vessels by 2033 from around 675 presently, according to DNV's Alternative Fuels Insight platform. The US Gulf coast and east coast are already home to several LNG bunkering facilities, utilising onshore terminals, bunkering barges and LNGBVs. Access to LNG as a marine fuel will be critical as the fleet grows, with Matt Jackson, vice-president of US firm Crowley's advanced energy division, telling Argus that North America needs up to 15-20 LNGBVs over the next 10 years to meet demand. Crowley recently launched the 12,000m³ Progress LNG bunkering barge, which uses LNG supply from the Elba Island facility and is under charter with Shell; Jackson said car carriers and containerships are expected to be the Progress ' primary users. US needed for global LNG bunker network Infrastructure in the US will also be key in creating a worldwide supply chain, and "by 2032 or so, the North American market will be the second-largest bunker market after Asia", Jackson said. More LNG bunkering assets will be required in the US to meet that demand, he added. Jonathan Cook, chief executive at US firm Pilot LNG, which has two LNG bunkering projects in the region — the Galveston LNG Bunker Port (GLBP) in Texas and the Salina Cruz LNG terminal in Mexico — has a similar view on growth in the Americas. The US is attractive as a hub because its Henry Hub spot price is typically a lot less volatile than the Dutch TTF gas hub, Cook said, providing customers with more certainty over long-term price movements. Pilot is looking to price supply from GLBP, which is being built with US firm Seapath, and from Salina Cruz against the Henry Hub, he said. This low-cost gas, coupled with predictable fixed costs for terminal usage and barge costs, also makes additional expenditure to ensure compliance with the US Jones' Act less of a problem, he added. Crowley's Jackson has a similar view, as US gas is some of the most affordable in the world, and — despite the Jones Act — pricing stability can draw in major companies, he added. The Central American market is key in developing a network, with more LNG-powered vessels poised to pass through the Panama Canal. Pilot LNG's Salina Cruz terminal on Mexico's Pacific coast will supply LNG to demand hubs around Central America, including Panama, Cook said. Salina Cruz is due to be fed by Mexican gas — mostly associated gas — so the Jones Act will not be a consideration and the project will help to reduce flaring, Pilot added. Development of the US and Central American LNG bunkering market will be key in encouraging uptake of the fuel globally, with more supply points required to support the fleet as corporations seek to decarbonise. Hurdles such as the Jones Act do impose large costs on firms, but the lower cost of gas and availability of LNG in the region mean that many firms say they believe LNG bunkering demand will grow sharply in the region. By Eleanor Holbrook Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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