Peru deploys army to safeguard strategic gas line

  • : LPG, Natural gas
  • 19/12/19

Peru's government has deployed army troops to safeguard a jungle stretch of the Camisea natural gas and gas liquids pipelines from potential attacks under a 60-day emergency declaration.

The lines are critical to Peru's LNG and LPG export businesses, which are operating normally.

The emergency measure covers an 80km stretch of the parallel lines running from the Camisea fractionating plant to Echarate province in the southeastern jungle.

The emergency decree, which puts the army in charge of security, extends for five kilometers on either side of the twin gas and gas liquids lines.

The decree states that the pipeline system is susceptible to terrorist attacks, but does not elaborate.

TGP, the pipeline operator controlled by Argentina's Tecgas, was unavailable for comment.

The twin pipelines pass through remote jungle areas that are home to remnants of a Maoist insurgency, Shining Path, which terrorized Peru in the 1980s and early 1990s. The group routinely targeted infrastructure. Its war on the state cost Peru more than 70,000 lives and $25bn in losses, according to a truth commission that reported on the violence in the previous decade.

Shining Path remnants targeted the gas line when it was under construction in mid-2003, staging a mass kidnapping of workers. Several more violent incidents near the line took place in subsequent years.

The 730km gas pipeline is critical to Peru's economy, providing gas for approximately 40pc of power generation in November, according to the energy ministry. It also supplies gas to Peru LNG, the only liquefaction plant along South America's Pacific coast. The ministry estimated that Peru would lose close to $500mn per day if the pipeline is knocked off line.

Peru produced 1.4bn cf/d of gas in November, with 1.1bn cf/d from Camisea's blocks 56 and 88, operated by Argentina's Pluspetrol, and 205mn cf/d from adjacent block 57, operated by Spain's Repsol.

Peru LNG, operated by US-based Hunt Oil, has dispatched 549 LNG cargoes since 2010, including three in December, two to China and one to South Korea.

By Lucien Chauvin


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24/05/16

LPG World editorial: Clean cooking’s watershed moment?

LPG World editorial: Clean cooking’s watershed moment?

African clean cooking schemes could prove to be an early energy transition success story now that world leaders view them as environmental imperatives London, 16 May (Argus) — The $2.2bn in funding pledged for clean cooking programmes in Africa over the next five years, announced at the IEA's Clean Cooking Summit in Paris on 14 May, could be a "turning point", according to the agency's executive director Fatih Birol. Not only would this be true in terms of tackling what is a long-neglected problem. It is also true for the LPG industry, which has been extolling the benefits of a transition to LPG in sub-Saharan Africa for many years. Other than the dozen or so individual financial commitments made by governments and organisations, what resonated most from the event was just how achievable transitioning sub-Saharan Africa to cleaner fuels such as LPG actually is. Often the immediate reaction is to balk at the challenges — the lack of infrastructure, the lack of regulatory frameworks, the corruption, the cost of the LPG and equipment. Yet this was when it was looked at purely through the prism of the market. Now it is an environmental and social imperative. Many of the political leaders from Europe, Africa and the US that spoke noted that greenhouse emissions from cooking were comparable to the airline and shipping sectors, yet tackling the former is far less complex, less expensive and receives scant recognition in comparison with the latter two. "We can fix it now… it is not high-tech, it is low-tech," Norway's prime minister Jonas Gahr Store told delegates. Another often ignored part of the issue is how disproportionately women are affected by cooking with harmful solid biomass fuels — perhaps an underlying factor behind the many years of neglect at a national and international level. This is a gender issue, both Birol and Tanzania's first female president, Samia Suluhu Hassan, noted. The obvious health and social benefits from the transition to clean cooking will be most keenly felt by women and their children, who are at home breathing in the smoke from open fires. Several of the speakers, including African Development Bank president Akinwumi Adesina and World Health Organisation director-general Tedros Ghebreyesus, even spoke of their own experience of growing up in a household with open fires, and the consequent unnecessary suffering their mothers in particular had to endure. LPG is not the only solution here — others mentioned included electric cookers, biogas, bioethanol and cleaner cooking stoves. And as a fossil fuel, it will ultimately be replaced at some stage by renewable alternatives. But it is the best solution right now for large parts of the region. "LPG is the most efficient in terms of its benefits and its ease of use," Togo's president Faure Gnassingbe said. LPG markets can develop in the region through subsidies and LPG price regulation to moderate volatility, while countries must also invest in domestic LPG production as well as import and distribution infrastructure, he said. Each country will be different, but it is "well within our reach", Gnassingbe added. From pledge to realisation The sub-Saharan African region and the LPG industry must now work with foreign governments, financial institutions and private-sector companies to ensure that the large sums pledged are invested in a pragmatic and fruitful way. The IEA will come back in a year's time to report on the progress of the various commitments made at the summit and will provide updates online in an effort to ensure progress and transparency, Birol said. There is reason for cautious hope. The feasibility of achieving the transition and the relatively low levels of foreign investment involved — and the huge opportunities for LPG companies that will emerge — could create the conditions for success of a kind that has so far eluded many other such ambitions. It would be a huge boon for the world to have one such success story to point to by 2030 in its long, hard struggle to transition to a cleaner energy future. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Mol orders dual-fuel LPG, ammonia VLGCs


24/05/16
24/05/16

Japan’s Mol orders dual-fuel LPG, ammonia VLGCs

Tokyo, 16 May (Argus) — Japanese shipping firm Mitsui OSK Lines (Mol) has ordered two dual-fuel very large gas carriers (VLGCs) to deliver LPG and ammonia, with commissioning expected in 2026. Mol has reached a deal with TotalEnergies' shipping arm CSSA Chartering and Shipping Services to charter two 88,000m³ VLGCs to deliver LPG and ammonia, although the specific time period is undisclosed. The vessel will be built by South Korean shipbuilder Hyundai Samho Heavy Industries, which has developed an engine that can use LPG and fuel oil. Japan's LPG consumption totalled 11.8mn t in the 2023-24 fiscal year ending 31 March, down by 3.2pc from a year earlier, according to the Japan LP Gas Association. Japan's trade and industry ministry expects the downwards trend will be driven further by technology innovation of high efficiency equipment. But its expects ammonia demand as a fuel to increase to 3mn t/yr by 2030 and to 30mn t/yr by 2050. Japan has set a goal of a 20pc ammonia co-firing at domestic coal-fired power plants by 2030 and above 50pc by 2050 to achieve the country's 2050 decarbonisation goal. By Reina Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Chinese importers seek five LNG cargoes for Jun-Sep


24/05/15
24/05/15

Chinese importers seek five LNG cargoes for Jun-Sep

Shanghai, 15 May (Argus) — Five Chinese importers, mostly second-tier buyers, are each seeking one LNG cargo for June-September delivery, according to an official notice published by China's national pipeline operator PipeChina on 15 May. The five importers are PipeChina, Chinese independent ENN, Hong Kong-listed city gas firm China Resources Gas, Hong Kong-based Towngas and state-owned China Gas. PipeChina and ENN have indicated a target price of at most $9.50/mn Btu for their intended cargoes, both for delivery to PipeChina's 6mn t/yr Tianjin terminal. China Gas has indicated a target price of at most $9.30/mn Btu for delivery to PipeChina's 6mn t/yr Beihai termial. China Resources Gas and Towngas have both indicated a target price of at most $9/mn Btu for delivery to PipeChina's 2mn t/yr Yuedong and Tianjin terminals, respectively. This consolidated requirement came about because of a need for PipeChina to better leverage on its infrastructure advantages and, at the same time, meet the varying needs of gas importers and consumers in the country. But this requirement comes at a time when spot LNG prices are still somewhat higher than the importers' targeted prices. But the importers can choose not to buy if offers are not within their expectations. The front-half month of the ANEA, the Argus assessment for spot LNG deliveries to northeast Asia, was last assessed at $10.485/mn Btu on 15 May. Chinese importers mostly perceive spot prices below $9-9.50/mn Btu for June-September deliveries to be unattainable for now because there is strong buying interest from south and southeast Asia in particular. Indian state-controlled refiner IOC most recently bought LNG for delivery between 22 May and 15 June at around $10.60/mn Btu, through a tender that closed on 14 May. Thailand's state-controlled PTT most recently bought three deliveries for 9-10 July, 16-17 July and 22-23 July through a tender that closed on 13 May , at just slightly above $10.50/mn Btu. The most recent spot transaction was Japanese utility Tohoku Electric's purchase of a 10-30 June delivery at around $10.55/mn Btu through a tender that closed on 14 May . This is at least $1/mn Btu higher than Chinese importers' indications. Summer requirements have so far been muted but concerns among buyers about potential supply disruptions remain. Malaysia's 30mn t/yr Bintulu LNG export terminal suffered a power loss on 10 May, but this issue may have been resolved as of early on 15 May, according to offtakers. Some unspecified upstream issues may still be affecting production at the Bintulu facility, resulting in Malaysia's state-owned Petronas having to ask some of its buyers for cargo deferments, according to offtakers. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Rains hamper LPG distribution in south Brazil


24/05/14
24/05/14

Rains hamper LPG distribution in south Brazil

Sao Paulo, 14 May (Argus) — Torrential rain and flooding in southern Brazil's Rio Grande do Sul state reduced LPG distribution by 7-10pc in the affected area during the first two weeks of May, according to local market participants. LPG distributor Copa Energia's operations at its Canoas city unit — responsible for 30pc of the state's supply — were expected to resume by mid-May. The heavy rains since late April left 100 people dead, a further 128 missing and around 164,000 displaced from their homes, according to the state's civil defence. LPG companies have been working to ensure supplies are maintained in the region, with some advancing salary benefits to support workers during the crisis, local participants say. Distribution began to normalise by 6 May after "the chaos and lack of information" over the 4-5 May weekend passed, an industry executive says. State-controlled Petrobras' 201,000 b/d Refap refinery was also affected, cutting LPG output, but the volume was not disclosed. Many LPG retailers are now able to receive supplies, but it is unknown how many distribution routes have been compromised, according to local industry. LPG stocks have been able to meet demand, preventing shortages, they say. Oil regulator ANP's measures to cut red tape and foster collaboration during a crisis has kept the market supplied, according to LPG association Sindigas chief executive Sergio Bandeira de Mello. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Iraq’s BGC boosts LPG exports as BNGL start-up nears


24/05/14
24/05/14

Iraq’s BGC boosts LPG exports as BNGL start-up nears

The BNGL plant will help Iraq reduce its gas flaring and increase power generation capacity when it fully comes on line, writes Ieva Paldaviciute Dubai, 14 May (Argus) — Iraqi upstream joint venture Basrah Gas' (BGC) growing production and exports of LPG are helping to raise the country's overseas LPG shipments this year despite delays to the start-up of its Basrah Natural Gas Liquids (BNGL) plant. The BNGL project, launched in 2019, incorporates two 200mn ft³/d (2.1bn m³/yr) gas processing trains, the first of which was inaugurated in May last year. Each train will produce 700-900 t/d of LPG — BGC's LPG output has risen by about 400-500 t/d to 6,000 t/d this year. Yet the first train has yet to reach full processing capacity despite being scheduled to do so in late 2023. The company now expects both trains to be fully operational by the end of this year. BGC, a joint venture between Shell, state-owned South Gas and Japan's Mitsubishi, has 1bn ft³/d of gas processing capacity split between two of its NGL plants in Khor al-Zubair and North Rumaila. The 400mn ft³/d BNGL plant will increase capacity by 40pc and includes "best-in-class" cryogenic NGL trains, the firm says. These facilities process associated gas from oil production at the Rumaila, West Qurna 1 and Zubair fields. BNGL is also intended to help Iraq reduce its gas flaring and increase power generation capacity by around 1.5GW. BGC's LPG exports have nevertheless been climbing as it works to bring the BNGL plant on line. The company primarily supplies LPG to Iraq's domestic market, mostly for residential cooking, and exports the surplus. But smaller local suppliers are now cutting into BGC's domestic market share, freeing up more of its LPG for export. This includes Iraq's new 140,000 b/d Karbala refinery, which started operations earlier this year and is now selling around 700 t/d of LPG domestically. BGC typically exports split propane-butane cargoes through tenders to south Asian importers such as India, Pakistan, Bangladesh and Sri Lanka, as well as to east African countries such as Tanzania and Mauritius. These are shipped from the company's Umm Qasir terminal on the Mideast Gulf — which can store around 222,000t of LPG, Argus data show — historically on board small pressurised ships but as of this year on Handysize vessels as well, according to analytics firm Kpler. BGC shipped its first semi-refrigerated 100pc propane cargo on the Handysize Navigator Gemini on 2 May, which is due at China's Yizheng port around 27 May, Vortexa data show. The buyer has not been confirmed but the port is owned by Sinopec Yangzi Petrochemical and is close to Sinopec's 280,000 b/d Yangzi refinery. Sinopec has recently been importing more LPG to cover losses during planned maintenance. BGC helped to turn Iraq from a net importer of LPG to a net exporter in 2016. Exports rose strongly to above 200,000t in 2018, before falling over the next three years, Kpler data show. They have increased significantly in 2024, nearly tripling on the year to 49,000 t/month in January-April and forecast to hit a monthly high of 86,000t this month. But the data may be partially skewed — local industry sources have suggested some Iranian LPG cargoes have been disguised as Iraqi exports through ship tracking to bypass sanctions on the former country's oil and gas sector. Flare cuts Iraq is becoming less dependent on BGC for LPG, but the country still relies heavily on its dry gas production for its growing power generation needs. The firm produces enough gas to generate around 3.5GW of the 20GW of power Iraq can generate daily, which is still short of the 35GW it needs at peak times. Iraq simultaneously flares more than half of its gross gas production of around 3bn ft³/d. But Iraq has the world's 12th largest proven natural gas reserves. Underinvestment, mismanagement and conflict have kept it dependent on Iranian gas importsand allowed flaring to continue. Baghdad intends to attract investors to ramp up gas output. The BGC project and a multi-billion dollar deal with TotalEnergies last year that includes a 600mn ft³/d processing plant signal it is moving in the right direction. Iraq seaborne LPG exports Iraq sea LPG exports by country 2023 Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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