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Egypt’s Egas seeks LNG over October-December

  • Market: Natural gas
  • 06/09/24

Egypt's state-owned gas firm Egas is seeking 20 spot cargoes for delivery over October-December through a tender that will close on 12 September.

The firm is seeking 17 deliveries to Ain Sukhna, and three deliveries to Jordan's 3.8mn t/yr Aqaba import terminal.

Egas was last in the market to seek up to five cargoes for delivery over August-September, through a tender that closed on 29 July. This tender was likely fully awarded at an average of a $1.50/mn Btu premium to the Dutch TTF, possibly to TotalEnergies, Gunvor and BP, traders said.

Traders in mid-August estimated that Egypt would seek about eight to 15 spot cargoes for winter. Its latest requirement for 20 cargoes may indicate that the country's demand for imports is leaning towards the higher end.

Egypt's appetite for spot cargoes is likely to remain, particularly as domestic gas production in the country has been falling. Gas production in Egypt fell to its lowest for seven years in June, the country's latest submission to the Joint Organisation Data Initiative (Jodi) show. At the same time, its pipeline gas deliveries from Israel have been hit with uncertainty since the start of the Israel-Gaza conflict. Pipeline deliveries from Israel to Egypt fell to 731mn m³ in June from 851mn m³ in May, having reached record highs earlier this year. LNG exports from Egypt this winter are "not very likely", Italy's Eni said back on 26 July.

Egas tender delivery windows
Delivery to Ain Sukhna, EgyptDelivery to Aqaba, Jordan
4-5 October 202416-17 October 2024
9-10 October 202421-22 November 2024
14-15 October 202423-24 December 2024
19-20 October 2024
24-25 October 2024
29-30 October 2024
8-9 November 2024
13-14 November 2024
18-19 November 2024
23-24 November 2024
28-29 November 2024
3-4 December 2024
9-10 December 2024
15-16 December 2024
21-22 December 2024
27-28 December 2024
31 December 2024 - 1 Jan 2025

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04/11/24

Oil services upturn takes a pause for breath

Oil services upturn takes a pause for breath

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Mexican hydrogen regulatory efforts gain ground


01/11/24
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01/11/24

Mexican hydrogen regulatory efforts gain ground

Mexico City, 1 November (Argus) — The Mexican hydrogen association (AMH2) has made significant strides in recent discussions with regulators and officials, unveiling a comprehensive roadmap for industrial hydrogen adoption. The group's report estimates there will be demand for about 392,189 tonnes (t) of hydrogen per year across seven major industries during Mexico's pilot hydrogen development phase. This includes sector-specific hydrogen demands of 148,350 t/yr from oil refining through 10 potential applications; 107,325 t/yr for mining; 55,877 t/yr for hydrogen blending in natural gas; 23,932 t/yr in the metals industry; 35,040 t/yr tied to ammonia production; 15,265 t/yr for public transport; and 6,400 t/yr for methanol production. AMH2's strategy urges the administration of President Claudia Sheinbaum to designate a lead ministry for hydrogen development, prioritize green hydrogen production and introduce incentives for project financing, technology development and energy transition initiatives. Additionally, it calls for regulatory adaptations to facilitate hydrogen's integration into Mexico's natural gas infrastructure, including quality, transportation, distribution and safety standards, especially for industrial equipment. Legal reforms to support hydrogen development will also be needed, according to the report, targeting laws governing mining, water, hydrocarbons, nuclear energy, energy transition, environmental protection, electric power, bioenergy and geothermal power. For green hydrogen — generated with renewable energy — the focus would be on the latter five areas. These efforts align with Mexico's long-term energy plan (Prodesen 2023-2037), which envisions converting 12 combined cycle power plants, totaling 1.024GW, to operate on a 70pc natural gas and 30pc hydrogen blend between 2033 and 2036. AMH2 president Israel Hurtado said although Mexico's pipeline infrastructure could handle up to a 15pc green hydrogen blend, achieving a 30pc blend would require further technological advances expected over the next decade. Prodesen also identifies regions for hydrogen injection into pipeline networks, including Sonora, Sinaloa, Tamaulipas, Oaxaca, Veracruz, Baja California and the Yucatan peninsula. Yet new regulations will be crucial to establish a robust framework for hydrogen blending in existing infrastructure. The Sheinbaum's administration has committed to reducing carbon emissions and promoting clean energy, Hurtado said, with a $13.5bn investment pledge in renewables over six years and a target for 45pc of national power from renewables by 2030. AMH2 has built early connections with Sheinbaum's team, including Jorge Islas, her energy and climate advisor during the campaign, who now heads the energy ministry's (Sener) energy transition unit and supports green hydrogen initiatives. AMH2 leaders also recently met with energy regulator (CRE) president Leopoldo Melchi and commissioner Walter Jimenez, who expressed strong interest in hydrogen regulation. The association and CRE agreed to form a technical workgroup to develop clean hydrogen regulations collaboratively. Looking ahead, AMH2 plans to meet with energy minister Luz Elena Gonzalez and Mexico's economy ministry to further discuss the hydrogen strategy. But CRE's workgroup is on hold pending potential legislative reforms that could reorganize Mexico's energy regulators under Sener's supervision. Projects in development AMH2 has identified 16 hydrogen projects in Mexico, with eight in various development stages and eight announced. Primarily focused on green hydrogen, these projects represent an estimated $19bn investment. The largest, Helax, is a $10bn green hydrogen production facility in Oaxaca, connected to the Interoceanic Trans-Isthmus Corridor. AMH2 anticipates production to start within two years following initial permitting. The roadmap suggests that, even if only six projects are operational by 2030, the sector could generate 3.351GW and attract $1.8bn in investments. These projects are projected to bring in $2.5bn in revenue over six years and yield $1.9bn in tax contributions. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US job growth slumps in October, jobless rate at 4.1pc


01/11/24
News
01/11/24

US job growth slumps in October, jobless rate at 4.1pc

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US court set to weigh biofuel blend mandates


31/10/24
News
31/10/24

US court set to weigh biofuel blend mandates

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RINcrease or decrease RIN market activity has thinned as participants await the results of the court case and November's presidential election. In its latest rule, EPA aimed to provide a clearer picture over a longer timeline by finalizing volumes over multiple years. But the agency underestimated the growth in renewable diesel production, partly because of unexpectedly high feedstock imports. The result has been persistent oversupply, which took D4 biomass-based diesel credit prices from around 150¢/RIN in spring last year to as low as 42¢/RIN a year later according to Argus assessments. Multiple refiners have consequently dialed back biofuel production. In the past, RIN prices have proven sensitive to legal developments as traders anticipate supply and demand shifts. Prices softened this summer after the DC Circuit vacated small refinery waivers, leaving it unclear whether many facilities would have to buy RIN credits at all. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Investment funds’ net long position on Ice TTF jumps


31/10/24
News
31/10/24

Investment funds’ net long position on Ice TTF jumps

London, 31 October (Argus) — Investment funds' net long position on the Intercontinental Exchange (Ice) TTF jumped by nearly 34TWh on 18-25 October, a week in which the Argus ' TTF front-month price rose by 11pc. The net long position had reached a record high of more than 268TWh in the week ending 30 August , revised data show, before a significant reduction to a recent low of 192TWh by 20 September. Investment funds' net position then remained roughly unchanged over the following weeks. But there was a sharp increase to nearly 236TWh in the week ending 25 October, according to Ice's latest data ( see graph ). This was driven by a 36TWh increase in long positions that was only partly offset by a 2TWh increase in shorts. TTF prices across the curve rose significantly that week, with the Argus TTF front-month contract up by 11pc and similarly large moves for the first-quarter 2025 and summer 2025 contracts. The calendar 2025 price was also up by 9pc ( see table ). Increased geopolitical risks caused by rising tensions in the Middle East may have encouraged investment firms to boost their net long positions over that week, as Israel prepared for a retaliatory strike on Iran that came on 26 October . There was also a switch to net storage withdrawals across the EU on 22-25 October as a result of colder weather, which boosted demand and drew down stocks. Europe's gas market has lost some of its flexibility in recent years, following the loss of most Russian pipeline gas and the resulting higher reliance on LNG, which takes much longer to be physically delivered. This has increased price volatility, as small changes to the gas balance such as minor production constraints in Norway or brief cold snaps are no longer able to be quickly compensated for, which can then drive large price swings. Investment funds, which make most of their money on volatility in the market, amplify these price movements, contributing to the frequent sudden price spikes as fundamentals change. Such a large net long position suggests investment funds expect a tight European gas balance this winter. Record-low freight rates have brought the cost of shipping US LNG to Asia closer to the cost of the shorter US-Europe route, meaning European prices have to rise sufficiently high enough to offset this and close the inter-basin arbitrage again in order to attract uncommitted cargoes. At the same time, Egypt — which became a net LNG importer in May — bought 20 LNG cargoes last month and could seek a similar number of cargoes in the first quarter of next year, further tightening the availability of LNG imports in Europe. Market participants are also concerned about a potential delay to the commissioning of the 27.2mn t/yr Plaquemines terminal in Louisiana, although there has yet to be any confirmation of a change to the timeline. The facility is scheduled to start exports by the end of this year, developer Venture Global said earlier this month. Unlike investment funds, the other two major categories of market participants on Ice — commercial undertakings and investment/credit firms — boosted their net short positions by a combined 33TWh, nearly fully offsetting the net long increase from investment funds. Commercial undertakings, defined as companies with retail portfolios, raised their long and short positions in risk reduction contracts, with longs growing by about 8TWh and shorts by a larger 20TWh. Commercial undertakings' gross short position was nearly 746TWh on 25 October, the highest of any date since December 2021, as firms looked to hedge a significant physical long position of gas in storage. EU storage sites were more than 95pc full as of the morning of 30 October, below 99pc on the same date last year but still well above the 2019-21 average of 90pc. But their net short position is still 163TWh, below the three-year high of nearly 182TWh on 30 August. By Brendan A'Hearn Argus TTF prices, 18-25 Oct €/MWh TTF Nov TTF Dec TTF Q125 TTF Sum 25 TTF Win 25 TTF Cal 25 TTF Cal 26 18-Oct 39.16 39.60 39.91 37.97 38.70 38.60 34.05 25-Oct 43.47 43.69 43.77 41.36 41.51 41.98 35.91 % change 11.0 10.3 9.7 8.9 7.3 8.8 5.5 — Argus Net positions on ICE TTF TWh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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