ExxonMobil to accelerate PNG’s P'nyang gas development

Spanish Market: Natural gas
10/12/24

ExxonMobil plans to expedite the next stage of its 4.4 trillion ft³ (125bn m³) P'nyang gas field in Papua New Guinea (PNG), which is considered critical to the future of the nation's two major LNG projects.

Exxon, the operator of the 6.9mn t/yr PNG LNG joint venture, will bring pre-engineering works forward to April-June 2025 by accelerating the concept select phase that is presently underway. This would bring it forward "years sooner than previously envisaged," said ExxonMobil PNG's senior vice-president of commercial development, Johanna Boothey, at the PNG Resources and Energy Investment Conference in Sydney, Australia on 10 December

"We expect to undertake initial ground surveys and to establish a project office in Western Province in the coming weeks," she added.

PNG's government in March signed a fiscal stability agreement for the P'nyang project with PNG LNG partners.

A final investment decision (FID) for the P'nyang field is targeted for 2029, following the start-up of the planned 5.6mn t/yr Papua LNG export terminal, with synchronisation between the two projects seen as guiding the investment timeline.

But further delays to the Papua LNG project could cause feedstock shortages at PNG LNG, as the former project is expected to provide 2mn t/yr worth of gas to the latter. Continuing concerns about Papua LNG's FID slipping further may prompt Exxon to further advance P'nyang's development timeline.

ExxonMobil holds 49pc of P'nyang, Australian independent Santos controls 38.5pc while Japanese upstream firm JX Nippon has a 12.5pc stake.

By Tom Major

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14/11/25

More oil, gas firms have emissions action plans: OGDC

London, 14 November (Argus) — Oil and gas firms that are signatories to the Oil and Gas Decarbonisation Charter (OGDC) have increasingly set out plans to address their operational emissions, methane emissions and flaring, a report from the OGDC said today. Of the companies signed up to the charter in 2024, 36 reported having "interim action plans" for scope 1 and 2 emissions reductions for 2030, 31 reported that they had methane action plans and 33 reported having flaring action plans — up from 31, 20 and 22, respectively, in 2023. Of the signatories, 36 have third-party verification systems in place, the report found. The charter was signed at Cop 28 in 2023 and now has 55 signatories, representing around 40pc of global oil production and around 35pc of global oil and gas output. Of the signatory companies, around two-thirds are state-owned. OGDC signatories produced nearly 59mn b/d of oil equivalent (boe/d) in 2024. The OGDC estimated that total operated scope 1 and 2 emissions for all charter signatories stood at around 1bn t/CO2 equivalent (CO2e) in 2024. The estimate was based on submissions for operated scope 1 and 2 emissions from 41 signatories, which totalled just above 800mn t/CO2e in 2024. Scope 1 and 2 emissions usually make up a minority of oil and gas producers' total emissions. But scope 3, or end-use, emissions represent the vast majority of oil and gas producer emissions, with estimates in the range of 80-95pc of the total. A report from a group of more than 130 scientists on 13 November found that emissions from fossil fuels are projected to reach a record high of 38.1bn t/CO2 this year. Global emissions from "human activities" stood at 53.2bn t/CO2 equivalent (CO2e) in 2024, without factoring in emissions from land use, land use change and forestry, the EU's Edgar programme found in September. Charter signatories invested around $32bn in "low-carbon solutions" which include renewables, carbon capture, hydrogen and "low-carbon fuels" in 2024, according to the report. Signatories agree to aim for net zero operations by 2050, "near-zero upstream methane emissions" by 2030, zero routine flaring by 2030 and to "set and share" a 2030 goal for scope 1 and 2 emissions. TotalEnergies, a signatory to the charter, today committed $100mn to a fund which supports technologies to cut emissions "across the oil and gas value chain". The fund — Climate Investment — is partnered with the charter and will help signatories "on their decarbonisation path", within the charter's scope, TotalEnergies said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

API pitches revamp of biofuel exemptions: Update

13/11/25

API pitches revamp of biofuel exemptions: Update

Updates throughout New York, 13 November (Argus) — The American Petroleum Institute (API) is pitching the White House and biofuel groups on a total revamp of how the US exempts oil companies from a program that requires biofuel blending, according to three people familiar with the lobbying group's work. API recently withdrew its support for a bill that would authorize 15pc ethanol gasoline (E15) year-round on its frustrations with changes to biofuel policy this year that oil companies see as too friendly to farmers and to some small refining competitors. The US for instance recently granted small oil refiners generous hardship waivers from a biofuel blend mandate and proposed requiring larger companies to blend more biofuels in future years as an offset. API's pitch — shared at a White House meeting this week — would require that companies seeking program exemptions must show that economic hardship stems directly from the biofuel program, a more stringent requirement than today, according to two of the people familiar with the group's work. Exemptions would also be restricted to companies with limited collective refining capacity, cutting off larger enterprises like Delek and Par Pacific that own multiple small units that qualify now. Smaller companies like Ergon and Kern Oil could still request waivers, but the total pool of potentially exempted gas and diesel volumes would be far lower. The oil group then wants the US to prohibit hiking other oil companies' blend requirements to offset those exemptions, a tougher sell to biofuel and crop groups that fear unchecked program waivers curb demand for their products. Larger merchant refiners that do not qualify for small refinery relief have also long pushed lawmakers for updates to the program and would not benefit from this proposal. API's idea is to pass legislation pairing updates to the small refinery exemption program with year-round authorization of E15, generally prohibited in the summer without emergency waivers because of summertime fuel volatility restrictions that do not apply to typical 10pc ethanol gasoline. That's a top priority for ethanol companies, otherwise at risk from an increasingly efficient and electric light-duty vehicle fleet. Congress last year nearly passed narrower E15 legislation, which API supported at the time but no longer does without more changes. Courts have struck down past attempts by federal officials to authorize E15 without emergency declarations and to drastically restrict biofuel exemption eligibility, likely limiting what President Donald Trump's administration can do without new legislation. API made the pitch to the White House this week, the sources familiar with API's work said. The White House is hosting other groups for meetings on fuel policy, including another one on Thursday on E15 that featured biofuel groups. Officials from across Trump's administration, including the US Department of Agriculture, have attended. "Administration officials hosted listening sessions with biofuel groups, agriculture and oil refiners to discuss their proposals on year-round E15", a source familiar with the matter said. It is not clear that biofuel advocates, insistent that the Trump administration entirely offset the impact of recent refinery exemptions, are open to the attempted compromise. The ethanol group Renewable Fuels Association declined to comment on E15 talks. Regulatory tweaks to boost ethanol supply would also do little on their own to help producers of other biofuels like renewable diesel. API declined to elaborate on what was discussed at any meetings with the Trump administration. "We appreciate the administration's leadership in bringing stakeholders together to advance a practical solution on E15 and small refinery exemption reform", API said. "We look forward to continuing to work together to advance a framework that supports fuel choice, strengthens the refining and agricultural sectors, and helps ensure a stable, reliable supply for American consumers." Under the Renewable Fuel Standard, the US requires oil refiners and importers to annually blend different types of biofuels or buy credits from those that do. The administration is late setting new biofuel quotas for 2026 but is expected to do so in the coming months, kicking off a flurry of last-minute lobbying about future volumes, exemptions and potential cuts to credits from foreign fuels and feedstocks. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Turkey could be LNG gateway for east Europe

13/11/25

Turkey could be LNG gateway for east Europe

London, 13 November (Argus) — Turkey has higher LNG regasification capacity than Greece, but the country's rising consumption is weighing on excess gas for export and its closed market creates challenges for traders, while Greece faces grid congestion issues but has promising investments and a more open market. Greece has a 5.4mn t/yr LNG import terminal at Revithoussa, which could feed the grid with a maximum of 82 TWh/yr if operating at full capacity. Additionally, there is a 4.3mn t/yr terminal at Alexandroupolis, with a theoretical capacity of 66 TWh/yr. Combined, Greece's LNG processing capacity totals 9.7mn t/yr, equal to 148 TWh/yr, or — using Desfa's conversion rate — about 12.7bn m³/yr. But both terminals operate at much lower utilisation rates. Revithoussa supplied 18.2TWh to the grid throughout 2024, averaging 50 GWh/d. Traders said that LNG prices were less competitive than Russian pipeline gas during that year. And Revithoussa's sendout increased to 79 GWh/d during the first 10 months of this year, which, if sustained for the full year, would be roughly 29TWh. While low sendout indicates spare capacity at Revithoussa, Greek infrastructure constraints remain. The country faces compression limitations both south-north and east-west. With the recently added compression station at Komotini, Desfa announced that northward export capacity has been raised to 8.5bn m³/yr, or about 99 TWh/yr. This figure is the maximum export capacity at the Sidirokastro and Komotini interconnection points, but delivering gas to these points can still be problematic. For Revithoussa supply, the Ampelia compressor station, located in central Greece, is critical. Desfa had stated that this project would be completed in the last quarter of this year, but no update has yet been provided. And Alexandroupolis went offline for extended maintenance in January this year soon after it started operations. Its operator was only able to increase its maximum sendout capacity to 75pc of its technical limit by late October. In any event, a bottleneck persists in the northern Greek system. Capacity at the Amfitriti point, where Alexandroupolis supply enters the grid, will be capped at 44 GWh/d through the 2025-30 gas years — about 16 TWh/yr or 1.4bn m³/yr — according to Desfa . Turkey as an alternative supply route? Turkey currently operates five LNG import terminals, three FSRU-based and two onshore facilities, with a total sendout capacity of 161mn m³/d. Overall sendout capacity equals 625 TWh/yr, more than four times Greece's total, based on Turkish state-run Botas' conversion rate. The Strandzha 1/Malkoclar point, which directly connects the Turkish to the Bulgarian grid, has a technical outflow capacity of 43 TWh/yr and remains underutilised. Firms exported a total of 16.3TWh at the point to Bulgaria in the first 10 months of this year, and 18.8TWh in all of 2024. Turkish energy minister Alparslan Bayraktar and senior Botas executives have stated multiple times that they can increase the capacity two to four times in a short period, provided there are long-term commitments from potential European buyers. This suggests an export potential of 10bn m³/yr in the short term, in theory exceeding Greek export capacity. That said, record high Turkish consumption in the past winter , and scope for further growth might weigh on excess supply for export. Turkey's main drawbacks include a closed market and heavy dominance by a single actor. Although regulator EPDK maintains a regulatory framework on paper comparable to western Europe, according to many traders, Botas holds clear dominance in practice. Transparency remains low, and the lack of a free trade forces companies to rely on Botas. These factors lowered Turkey's rating in Energy Traders Europe's 2025 report , while Greece rose. Bulgarian transit Bulgaria is working to develop its south-north transport capacity. Bulgarian state-owned supplier Bulgargaz and Botas signed a 13-year deal in January 2023 for Bulgarian access to Turkish LNG terminals. Bulgargaz can transfer up to 1.5bn m³/yr of gas from the Turkish transmission system to Bulgaria through Malkoclar under this agreement, but this agreement has occasionally been criticised and underutilised . And the inflow capacity from Greece via the Kulata/Sidirokasto will initially reach 37.2 TWh/yr, equal to 3.5bn m³/yr, over the next few years, according to the Bulgarian operator's most recent 10-year plan . The Interconnector Greece-Bulgaria also provides 3bn m³/yr, but its capacity will not increase in the short term . This means that Bulgaria is initially targeting import capacity of 6.5bn m³/yr from Greece. By Ugur Yildirim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cop: Mexico unveils new climate plan

12/11/25

Cop: Mexico unveils new climate plan

Mexico City, 12 November (Argus) — Mexico has approved a new national climate plan as part of the UN Cop 30 summit in Belem, Brazil, setting an absolute cap on greenhouse gas emissions for the first time. The updated nationally determined contribution (NDC) commits Mexico to limit emissions to 364–404mn t of CO2 equivalent (CO2e) by 2035 under its own resources, and to 332–363mn t CO2e with international support, Mexican environmental minister Alicia Barcena said. The target with support represents a cut of more than 50pc compared with a business-as-usual scenario and aligns with its pledge to reach net zero by 2050, the government said. The plan, which had not been updated since 2022, includes five key components, including mitigation — cutting emissions — and adaptation, or adjusting to climate change where possible. It also included a loss and damage component, which refers to the unavoidable impacts of climate change. The NDC introduces the problems of climate security and social resilience and includes principles of gender equality, human rights and a just transition for workers in carbon-intensive sectors. Mexico's energy and environment ministries said the NDC aims to integrate climate action with economic development, job creation and social equity. But analysts warn that meeting the targets will require structural reforms and significant investment in low-carbon technologies. "Mexico's new climate plan stands among the most ambitious new climate targets from a major emitter, charting a path toward a stronger, more inclusive and resilient economy," said Francisco Barnes Regueiro, executive director of the environmental non-governmental organization the World Resources Institute in Mexico on Tuesday. "Mexico's ambition is clear, but delivering on these goals will require deep structural transformation and a clear, sustained investment strategy," he added. The announcement comes as Brazil, host of Cop 30, urges countries to submit more ambitious climate plans. Brazilian president Luiz Inacio Lula da Silva in September called on developed nations to accelerate net-zero targets and expand support for developing countries, saying Cop 30 must focus on implementation rather than pledges. Mexico joins more than 50 countries that have updated their NDCs ahead of the summit. The EU, Canada, Norway and Switzerland have also pledged to align their plans with the Paris Agreement's 1.5°C goal. Policy contradiction But Mexico's new climate pledge contrasts with its continued support for fossil fuels, particularly its crude oil and refined fuels production, as well as its reliance on natural gas for electricity production. The government has continuously backed policies and wide-ranging reforms that favor state-owned Pemex and utility CFE over private-sector companies, without directly requiring the companies to shift to cleaner energies. Critics argue that these measures undermine private investment and complicate Mexico's ability to meet its climate targets. "Mexico continues to spend more on sustaining the past than building the future," said Isabel Studer, president of sustainability group Sostenibilidad Global, in a recent statement. By Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Mitsui to buy 1mn t/yr LNG from Venture Global

12/11/25

Japan’s Mitsui to buy 1mn t/yr LNG from Venture Global

Tokyo, 12 November (Argus) — Japanese trading house Mitsui has agreed to purchase 1mn t/yr of LNG from US LNG producer Venture Global for 20 years from 2029, Venture Global announced on 11 November. Mitsui and Venture Global signed a binding long-term LNG sales and purchase agreement. The deal is on fob basis, but Mitsui declined to disclose the detailed contract prices. Mitsui also did not state which projects the contract is tied to, as well as the export ports. Mitsui plans to deliver LNG to various regions including Japan, Asia and Europe. Mitsui decided to buy LNG from Venture Global on expectations that LNG demand for power generation will continue growing until 2050, along with renewable power expansion. Renewable power needs thermal power as back up because its output is unstable, depending heavily on weather conditions. Long-term LNG purchase contracts have been increasingly important because they would help reduce Japan's reliance on spot purchases, while mitigating the risk of surplus. Japan could minimise its average import costs of LNG by securing 60mn t of the fuel under long-term deals in the April 2040-March 2041 fiscal year, assuming demand ranges 53mn-74mn t, according to estimates from the country's natural resources and energy agency under the ministry of economy, trade and industry (Meti). Meti will also add at least one cargo of LNG spot purchase each month as part of the country's Strategic Buffer LNG (SBL) reserve scheme, starting from January 2026. Meti aims to secure stable LNG supply on the back of rising geopolitical tension. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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ExxonMobil to accelerate PNG’s P'nyang gas development

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More oil, gas firms have emissions action plans: OGDC

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API pitches revamp of biofuel exemptions: Update

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Turkey could be LNG gateway for east Europe

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Cop: Mexico unveils new climate plan

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