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Brazil gas reinjection rises to record

  • : Natural gas
  • 22/10/11

Brazil reinjected a record amount of natural gas into its production wells during August as demand for thermal power generation slips from last year.

Reinjection, in which gas is pumped back into wells to enhance oil recovery or to avoid flaring and the release of CO2, rose in August to 69.6mn m³/d, up by 4.7pc from July and 7.9pc higher than August 2021, according to preliminary data from oil and gas regulator ANP. The previous record was in January, when gas reinjection reached 68.4mn m³/d.

Gas reinjection rose as Brazil generates less thermal power in 2022 than in 2021. Last year, drought reduced hydropower generation and boosted demand for gas-fired power, leading producers to maximize gas production.

Gas available to the market in August was 53.3mn m³/d, a 2.5pc increase from the prior month but a 3.7pc decrease from August 2021.

Brazil's total gas production amounted to 139.9mn m³/d in August, a 3.2pc increase from July and 2.5pc rise from the same period last year.

Gas flaring in August fell to 3.3mn m³/d, a 19pc drop from the prior month and a 6.2pc drop from the same month last year.


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24/07/22

Australia’s Woodside to buy US LNG developer Tellurian

Australia’s Woodside to buy US LNG developer Tellurian

Sydney, 22 July (Argus) — Australian independent Woodside Energy is buying US LNG developer Tellurian, which is behind the planned 11mn t/yr Driftwood phase 1 project on the US Gulf coast. Woodside said the all-cash payment will position the firm as a global LNG powerhouse, with the purchase providing an "attractive entry" with more than $1bn spent on the Louisiana project to date. The deal values Tellurian at $1 a share with an implied value of $1.2bn. Driftwood's development plan envisions construction of five LNG production trains in four phases, totalling capacity of 27.6mn t/yr. Woodside is targeting completion of the Tellurian acquisition during October-December ahead of a final investment decision (FID) on Driftwood in January-March 2025, with its first LNG from 2029. The transaction adds scalable US LNG to Woodside's existing 10mn t/yr equity production in Australia, chief executive Meg O'Neill said on 22 July, with Driftwood complementing its existing output and enabling the company to better service customers while opening further marketing opportunities, including in the Atlantic basin. Tellurian planned to make a FID on Driftwood this year after beginning the plant's regulatory approval process in 2016. But the terminal does not yet have any publicly announced term customers. Contracts worth 9mn t/yr to supply Shell and trading firms Gunvor and Vitol were cancelled last year, as Tellurian did not reach a FID by the deadlines set out in the supply contracts. Woodside expects development costs of around $900-960/t for phase 1 and 2, which total 16.5mn t/yr capacity, implying a project worth about $10.6bn excluding pipelines. Phase 1 construction is under way with pilings for trains 1 and 2 complete, foundation work in progress and pilings under way for its LNG tanks, the firm said. Woodside earlier this year called off a proposed $53bn merger with fellow Australian independent Santos, with it focusing on completing its $12bn Scarborough project offshore Western Australia by 2026. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Williams to resume Louisiana gas line construction


24/07/19
24/07/19

Williams to resume Louisiana gas line construction

New York, 19 July (Argus) — US natural gas pipeline company Williams on Friday told federal energy regulators it will proceed with construction of its delayed 1.8 Bcf/d (51mn m³/d) Louisiana Energy Gateway (LEG) gas gathering line in Louisiana. Williams' letter of intent to the US Federal Energy Regulatory Commission (FERC) is the culmination of a series of lawsuits across multiple Louisiana parishes brought by US midstream rival Energy Transfer, which seeks to stop Williams and two other pipeline companies from crossing its own gas line in the Haynesville shale. While Williams is still waiting on a final ruling over two crossings in Vernon Parish, its recent legal victories over Energy Transfer and acquisition of necessary federal permits and easements from landowners have made it possible to commence construction of LEG, Williams said. The final ruling out of Vernon Parish will be decided "soon," Williams said. Williams said it intends to release its contractor to resume pre-construction activities along its right-of-way as early as 25 July, then proceed with construction. "But for the crossing litigation with Energy Transfer, construction of [LEG] would be well underway," Williams said. The litigation has pushed Williams' expected in-service date for LEG from late 2024 to the second half of 2025. Williams prevailed over Energy Transfer earlier this month in DeSoto Parish and in early June in Beauregard Parish . By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Von der Leyen faces new Green Deal challenges


24/07/19
24/07/19

Von der Leyen faces new Green Deal challenges

The president promises a ‘clean industrial deal', but will need to make compromises over climate policy, writes Dafydd ab Iago Brussels, 19 July (Argus) — Ursula von der Leyen's re-election by the European Parliament as president of the European Commission on 18 July promises to see a doubling down on climate and energy policy, with her 2024-29 mandate stipulating greenhouse gas (GHG) emissions cuts of at least 90pc by 2040 compared with 1990. "I have not forgotten how [Russian president Vladimir] Putin blackmailed us by cutting us off from Russian fossil fuels. We invested massively in homegrown cheap renewables and this enabled us to break free from dirty Russian fossil fuels," von der Leyen says, promising to end the "era of dependency on Russian fossil fuels". She has not given an end date for this, nor specified if this includes a commitment to ending Russian LNG imports. Von der Leyen went on to detail political guidelines for 2024-29. She has pledged to propose a "clean industrial deal" in the first 100 days of her new mandate, albeit without giving concrete figures about how much investment this would channel to infrastructure and industry, particularly for energy-intensive sectors. The clean industrial deal will help bring down energy bills, she says. Von der Leyen told parliament that the commission would propose legislation, under the European Climate Law, establishing a 90pc emissions-reduction target for 2040. Her political guidelines also call for scaling up and prioritising investment in clean technologies, including grid infrastructure, storage capacity, transport for captured CO2, energy efficiency, power digitalisation and a hydrogen network. She plans to extend aggregate demand mechanisms beyond gas to include hydrogen and critical raw materials, and notes the dangers of dependencies and fraying supply chains — from Putin's energy blackmail to China's monopoly on battery and chip raw materials. Majority report Passing the necessary legislation to implement her stated policies will now require approval from EU states and parliament. Unless amplified by Germany's election next year, election victories by far-right parties in France and elsewhere appear not to threaten EU state majorities for specific legislation. Parliament's political centre-left S&D and liberal Renew groups, as well as von der Leyen's own centre-right European People's Party (EPP), have elaborated key policy requests. These broadly call for the continuation of the European Green Deal — a set of legislation and policy measures aimed at 55pc GHG emissions reductions by 2030 compared with 1990. A symbolic issue for von der Leyen to decide on — or compromise on — is that of internal combustion engine (ICE) vehicles. EPP wants to stick to technological neutrality and revise the current mandate for sales of new ICE cars to be phased out by 2035, if they cannot run exclusively on carbon-neutral fuels. The EPP wants an e-fuel, biofuel and low-carbon fuel strategy. Von der Leyen's guidelines reflect the need to gain support from centre-right, centre-left and greens. She says the 2035 climate neutrality target for new cars creates investor and manufacturer "predictability" but requires a "technology-neutral approach, in which e-fuels have a role to play". She has not mentioned carbon-neutral biofuels. It will be impossible for von der Leyen to satisfy all demands in her second mandate. This includes policy requests put forward by the EPP, ranging from a "pragmatic" definition of low-carbon hydrogen and market rules for carbon capture and storage, to postponing the EU's deforestation regulation. EU member states are expected to propose their candidates for commissioners in August, including for energy, climate and trade policy, with von der Leyen's new commission subject to a final vote in parliament in late October. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Trump vows to target 'green' spending, EV rules


24/07/19
24/07/19

Trump vows to target 'green' spending, EV rules

Washington, 19 July (Argus) — Former president Donald Trump promised to redirect US green energy spending to other projects, throw out electric vehicle (EV) rules and increase drilling, in a speech Thursday night formally accepting the Republican presidential nomination. Trump's acceptance speech, delivered at the Republican National Convention, offered the clearest hints yet at his potential plans for dismantling the Inflation Reduction Act and the 2021 bipartisan infrastructure law. Without explicitly naming the two laws, Trump said he would claw back unspent funds for the "Green New Scam," a shorthand he has used in the past to criticize spending on wind, solar, EVs, energy infrastructure and climate resilience. "All of the trillions of dollars that are sitting there not yet spent, we will redirect that money for important projects like roads, bridges, dams, and we will not allow it to be spent on the meaningless Green New Scam ideas," Trump said during the final night of the convention in Milwaukee, Wisconsin. Trump and his campaign have yet to clearly detail their plans for the two laws, which collectively provide hundreds of billions of dollars worth of federal tax credits and direct spending for renewable energy, EVs, clean hydrogen, carbon capture, sustainable aviation fuel, biofuels, nuclear and advanced manufacturing. Repealing those programs outright could be politically difficult because a majority of spending from the two laws have flowed to districts represented by Republican lawmakers. The speech was Trump's first public remarks since he was grazed by a bullet in an assassination attempt on 13 July. Trump used the shooting to call for the country to unite, but he repeatedly slipped back into the divisive rhetoric of his campaign and his grievances against President Joe Biden, who he claimed was the worst president in US history. Trump vowed to "end the electric vehicle mandate" on the first day of his administration, in an apparent reference to tailpipe rules that are expected to result in about 54pc of new cars and trucks sales being battery-only EVs by model year 2032. Trump also said that unless automakers put their manufacturing facilities in the US, he would put tariffs of 100-200pc on imported vehicles. To tackle inflation, Trump said he would bring down interest rates, which are controlled by the US Federal Reserve, an agency that historically acts independently from the White House. Trump also said he would bring down prices for energy through a policy of "drill, baby, drill" and cutting regulations. Trump also vowed to pursue tax cuts, tariffs and the "largest deportation in history," all of which independent economists say would add to inflation. The Republican convention unfolded as Biden, who is isolating after testing positive for Covid-19, faces a growing chorus of top Democratic lawmakers pressuring him to drop out of the presidential race. Democrats plan to select their presidential nominee during an early virtual roll-call vote or at the Democratic National Convention on 19-22 August. By Chris Knigh t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Shizuoka Gas expands Indian gas presence


24/07/19
24/07/19

Japan’s Shizuoka Gas expands Indian gas presence

Tokyo, 19 July (Argus) — Japanese gas distributor Shizuoka Gas has ventured into India's biogas sector, buying a stake in Indian manure-based producer Farm Gas. Shizuoka Gas has bought 10pc of Farm Gas, a joint venture between Indian gas distributor IRM Energy and Indian consultant Eximius Resources, for an undisclosed sum. Shizuoka Gas previously bought a stake in Gujarat-based IRM Energy in 2021 , which supplies natural gas to the industrial sector. Farm Gas has been operating a biogas plant using cow dung and rice straw since December 2022. The manure-derived biogas is sold to auto firms as a vehicle fuel. The organic fertilizer produced as a by-product during the production process is sold to fertilizer companies and nearby farmers. Cow dung and rice straw creates air pollution, which is a huge problem in India, Shizuoka Gas said. It said it will build its experience in biogas production from the Farm Gas acquisition, with an aim to develop biogas plants in India and southeast Asia in the future. But shipping the biogas to Japan is not a current option, as Japan has already established pipeline gas supplies, it added. By Reina Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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