UK to receive more Russian LNG

  • : Natural gas
  • 21/02/04

The 14.8mn t/yr Isle of Grain LNG terminal has booked another Russian delivery for next week, bringing the UK's scheduled February Russian receipts to three.

The 172,600m³ Nikolay Zubov is expected at Isle of Grain on 11 February, having cast off from Sabetta yesterday.

The tanker will follow the 172,600m³ Georgiy Ushakov, which unloaded its Yamal cargo at Isle of Grain yesterday. One other Russian delivery — on board the 172,600m³ Vladimir Voronin — is scheduled at the 4mn t/yr Dragon facility for 10 February. Russia already made up most of the UK's receipts last month, accounting for six of the seven in total.

Yamal shipments to Europe climbed on the year in January. But 66pc of the cargoes were transshipped, leaving European receipts at 1.08mn t of LNG, down from 1.24mn t a year earlier.

Yamal's fourth 940,000 t/yr liquefaction train was commissioned last month, which could provide scope for stronger exports.


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24/05/22

UK general election set for 4 July

UK general election set for 4 July

London, 22 May (Argus) — A general election will take place in the UK on 4 July, prime minister Rishi Sunak said today. The announcement coincides with official data showing that UK inflation has fallen to its lowest level in nearly three years. Labour, the country's main opposition party led by Keir Starmer, has held a substantial lead in polls in recent months and performed well in local elections earlier this month. It won nearly 200 seats on local councils, as well as several regional mayoral contests, while the ruling Conservative Party lost almost 500 council seats. The Conservatives have been in power since 2010 and have fielded five prime ministers during that time. The two main parties are likely to release more detailed manifestos once the election campaign begins, but their current respective energy policies have many similarities. Both back a windfall tax on oil and gas producers and support nuclear power. They both also support offshore wind and solar power, although Labour has incrementally more ambitious targets for those renewables and has plans for more onshore wind. Labour also wants a zero-carbon power grid by 2030 , while the Conservatives are aiming for that in 2035. The Conservatives have rolled back some climate policy since Sunak became prime minister, while Labour in February backed down on its pledge to spend £28bn/yr ($35.6bn/yr) on the country's energy transition, if it wins the election. For a general election to take place in the UK, the prime minister must request permission from the British monarch — King Charles III — who then dissolves parliament. A general election must take place at least once every five years in the UK, although a prime minister can call one at any point. The UK's last general election was held on 12 December 2019 and Boris Johnson was elected prime minister. There have since then been two prime ministers — Liz Truss in September-October 2022 — and Sunak. Truss was selected by Conservative Party members and Sunak became prime minister in October 2022 after the only other candidate withdrew from the leadership contest. The Conservatives hold 344 seats out of 650 in the House of Commons, the UK's lower house of parliament. But 105 members of parliament have said that they will not run at the next election, 66 of whom are Conservatives. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Mol adds to LNG fleet for Jera


24/05/22
24/05/22

Japan’s Mol adds to LNG fleet for Jera

Osaka, 22 May (Argus) — Japanese shipping firm Mitsui OSK Lines (Mol) is to launch a new LNG carrier in 2026, the seventh vessel to be supplied under an unspecified time charter agreement with the country's largest power producer by capacity Jera. The 174,000m³ membrane-type vessel is being built by South Korean shipbuilder Samsung Heavy Industries at its Geoje shipyard. It will be installed with a dual-fuel engine that can run on low-sulphur fuel oil or boil-off gas stored in the ship's cargo tank, Mol said. LNG is dominant in Jera's power portfolio, with its gas-fired output accounting for 75pc of its power generation in the April 2023-March 2024 fiscal year. The company consumed around 23mn t of LNG during 2023-24, which accounted for 35pc of Japan's LNG imports of 64.9mn t. Jera is planning to maintain its LNG handling volumes at no less than 35mn t/yr until 2035-36 , so to ensure power security in Japan through more flexible operations. It is also looking to further promote LNG along with renewable electricity in Asian countries, while helping to reduce their dependence on coal- and oil-fired power generation. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Shell to develop new gas wells for Australia’s QGC


24/05/22
24/05/22

Shell to develop new gas wells for Australia’s QGC

Perth, 22 May (Argus) — Shell has begun work on new coal-bed methane wells for its Queensland-based gas division QGC, which services domestic customers and exports through its two-train 8.5mn t/yr Queensland-Curtis LNG (QCLNG) project. Around 138 new wells with an estimated 15-year lifespan will be drilled and connected in the state's Western Downs region, across existing tenements in the onshore Surat basin in the central, southern and northern development areas. Preparations for drilling will start during October-December with construction planned to be under way for January-March 2025 and take approximately two years. Federal and state environmental approvals are already in place for the infill and backfill development, a Shell spokeswoman said on 22 May. Shell reported output rose from a year earlier and the previous quarter for its LNG sector in January-March with 7.58mn t of LNG produced in the first quarter, of which 3.55mn t or 47pc was from its Oceania division. This includes QCLNG and the 3.6mn t/yr Prelude floating LNG offshore northwest Australia, which resumed exports in late 2023 following a major turnaround in the second half of 2023. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil biomethane parity prices R2.43-2.79: Correction


24/05/21
24/05/21

Brazil biomethane parity prices R2.43-2.79: Correction

Corrects CNG truck round-trip freight rates in 8th paragraph. Sao Paulo, 21 May (Argus) — Biomethane parity prices in Sao Paulo and Rio de Janeiro states, Brazil's two largest hubs, ranged between R2.43-2.79/m³ (49-56¢/m³) on 23 February, according to the market's first price indicators launched by Argus . That represents the marginal price that can be charged by biomethane producers from gas distributors, reflecting daily Cbio carbon credits assessments and weighted averages of natural gas prices in Rio de Janeiro and Sao Paulo. It is the first specifically calculated Brazilian biomethane price indicator in a market that has often lacked transparency. Biomethane producers traditionally have determined their prices on a case-by-case basis, depending on a series of factors such as the consumer's need for the green attribute, which fuel the biomethane gas will substitute and logistics costs. Initially, the biomethane sector looked to LPG prices for reference, as industry machinery only needs small alterations to substitute one fuel for the other. But the LPG market is much more consolidated and stable in its supply than biomethane. The international crude industry and Brazilian real-dollar exchange rates also influence the market, leading to distortions that do not reflect the renewable natural gas (RNG) market's true conditions. Market participants are still learning the ropes of the biomethane sector, as all of its production and supply structures are new in Brazil, according to Hugo Nery, chief executive of landfill company Marquise Ambiental, part of the joint venture that controls the 110,000 m³/d GNR Fortaleza biomethane plant. All biomethane plants certified by hydrocarbons regulator ANP within Brazil's national biofuels Renovabio policy are eligible to issue Cbio carbon credits, which is a compliance market for fossil fuel distributors to compensate their sales' impact. But this segment is still much smaller than it could be for biomethane manufacturers, according to biomethane producer Gas Verde's chief executive Marcel Jorand. Still, Cbios are the most liquid alternative to pricing the green attribute of biomethane in Brazil, with other certification models still in preliminary stages and not openly traded. Producers are adopting their own solutions to biomethane transportation challenges. Marquise Ambiental's strategy is to build its new biomethane plants near distribution networks, Nery said. GNR Fortaleza was the first plant in Brazil to inject biomethane directly into a distribution network and supplies 20pc of Ceara state's gas demand. On the other hand, biomethane generators Gas Verde and Zeg Biogas supply their customers through CNG truck deliveries. Argus ' CNG truck freight rates, based on Sao Paulo costs, show that each cubic meter of gas delivered on a 150km (93.2-mile) round trip cost R0.005/km on 23 February. Gas Verde and Zeg Biogas eye opportunities for longer-distance deliveries, using LNG trucks that have more range compared with CNG truck freights, or injecting gas into pipelines. Biomethane producers are finding demand for RNG outstripping supply available to the market. Zeg Biogas expects to start up a 30,000 m³/d biomethane plant in Minas Gerais state on the second half of the year. The company aims to explore the off-grid market in the region and expects to sign four additional contracts this year and increase its production capacity, according to chief executive Eduardo Acquaviva. Gas Verde, which owns Brazil's largest biomethane plant in Seropedica, Rio de Janeiro state, with 204,000 m³/d of capacity, also expects to expand. The company will transform nine biogas-fired thermal power plants into biomethane generators in the next 18-24 months. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia's Woodside plans CCS for Browse gas project


24/05/21
24/05/21

Australia's Woodside plans CCS for Browse gas project

Perth, 21 May (Argus) — Australian independent Woodside Energy is planning a carbon capture and storage (CCS) element for its Browse gas project offshore Western Australia (WA), but blamed stalled approval processes for the slow progress. The North West Shelf (NWS) life extension — which was first referred to regulators in 2018 — needed to be approved before Browse could progress further, chief executive Meg O'Neill said at the Australian Energy Producers conference held in WA's capital Perth this week. The life extension would allow the joint venture and third-party users to use the NWS project facilities until around 2070. WA's Environmental Protection Authority (EPA) recommended that the NWS life extension be approved in 2022, if it reduces its greenhouse gas (GHG) emissions to net zero by 2050. But the process remains incomplete, awaiting state and federal ministers' decisions and a final issuance of conditions for the project. WA's Office of the Appeals Convenor is still working through responses to the EPA's recommendation, which it must then report to the environment minister alongside its own recommendations, a process which was interrupted by the resignation of a senior bureaucrat last year. Woodside wanted to progress the CCS side of the Browse project before the end of 2024, O'Neill said, but the lack of certainty regarding approval timelines affected other elements of the project. "We've been working closely with the [federal government], state regulators and the Browse JV on the right approach to the environmental approvals, there are a couple of possible pathways that we are evaluating and we hope to be lodging the requests for approving that element of the project within this year," O'Neill said on 21 May. "But part of why we've been very disciplined in our work on Browse and not ramped up engineering work is because it is very difficult to get line of sight for when we'll get those approvals. With personnel changes at the appeals convenor we really don't have very good line of sight unfortunately." The 368bn m³ Browse development is considered critical to WA's future as a major LNG exporter and could provide long-term certainty for the 16.9mn t/yr NWS LNG, where partners have already signalled they will close a 2.5mn t/yr train later this year. Average gross GHG emissions from the three Browse fields are between 6.4mn-6.8mn t/yr with an additional 7.7mn t/yr once Browse gas is liquefied, resulting in total emissions of 14.1mn-14.5mn t/yr of CO2 equivalent, according to the environmental impact statement Woodside released in 2022. This necessitates a CO2 solution for it to progress under Canberra's net zero scope 1 emissions rule instituted last year. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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