Alvopetro breaks Petrobras gas monopoly in Bahia
Canadian independent Alvopetro secured regulatory approval to begin operating a gas treatment facility and 11km (6.8mi) pipeline, making it Brazil's first private-sector company with gas-processing capacity.
The pipeline and treatment unit will connect to the Alvopetro-operated Cabure and Cabure Leste fields, as well as the Cardeal do Nordeste and Cardeal do Nordeste Leste fields operated by Brazilian independent Imetame. The four fields, located in the onshore Reconcavo basin in Bahia state, produce a peak of just 140,000 m3/d because of a lack of local infrastructure.
The new $19mn installations, which begin commercial operations today, will significantly expand gas supply in the region. The pipeline will allow production from the fields to triple, according to hydrocarbons regulator ANP.
The midstream project comes as Brazil seeks to diversify natural gas supply away from state-controlled Petrobras, which has dominated the industry for decades. Last year, the company reached an agreement with antitrust watchdog Cade to exit gas distribution and transport.
Alvopetro has a long-term supply agreement with distributor Bahiagas, which has extended its distribution network by 15km and installed a citygate, allowing Alvopetro to double its gas supply contract to 300,000 m3/d.
The new pipeline will also pave the way for Imetame to supply its 28MW Prosperidade 1 reserve-to-wire thermoelectric plant, which began operating in 2018.
The company's 37.4MW Prosperidade 2 plant was awarded long-term power purchase agreements in last year's new energy auction. The generating complex will also use gas from the Cardeal do Nordeste and Cardeal Amarelo fields.
Bahiagas is currently building a 306km pipeline from the Reconcavo basin that will traverse 12 municipalities, allowing the company to supply gas to new corners of the state.
Bahia state hosts one of two regasification terminals controlled by Petrobras. But the 20mn m3/d Bahia terminal is underutilized because of the lack of a clear regulatory framework for third-party access to midstream infrastructure. Last year, Petrobras started pre-qualifying bidders to lease the terminal.
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Australia’s QPM hikes gas reserves estimate
Australia’s QPM hikes gas reserves estimate
Sydney, 29 April (Argus) — The energy arm of Australian battery metals firm Queensland Pacific Metals (QPM) has announced its certified reserves have increased more than a third on previous estimates at its Moranbah gas project (MGP) in Queensland state. QPM Energy (QPME) reported a 38pc increase in its total proven and probable (2P) gas reserves to 331PJ (8.8bn m³) on 29 April compared with a March 2022 estimate of 240PJ, as it pivots towards its energy business and pauses spending on its proposed Townsville Energy Chemicals Hub (TECH) project . QPME's waste coal mine gas reserves will be developed along with 300MW of new gas-fired power generation at the firm's Moranbah facilities located in the Bowen basin, a metallurgical and thermal coal producing region. The company is also planning to build compressed natural gas and micro-LNG facilities to distribute gas to northern Queensland customers. The company will seek to increase its output by 25pc to 35 TJ/d (935,000 m³/d) by late 2024, up from October-December 2023's average of 28 TJ/d by drilling a further seven wells by the year's end. A rig has arrived on site for drilling the first well of its Teviot Brook South Well programme, QPM said on 24 April. Australian independent Blue Energy, which is developing the Sapphire pilot project with 59PJ of 2P reserves near MGP, said QPM has confirmed it intends on taking gas Blue makes available to the MGP, in line with an existing non-binding agreement signed in June last year. Blue and QPME's parent company QPM also have a separate non-binding deal for supply of 7 PJ/yr of gas over 15 years to the TECH project. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Azerbaijan wants certainty from EU on gas needs
Azerbaijan wants certainty from EU on gas needs
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US M&A deals dip after record 1Q: Enverus
US M&A deals dip after record 1Q: Enverus
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