Norway's Equinor sees minor fall in 1Q output, profit

: Crude oil, Electricity, Natural gas
25/04/30

Norwegian state-controlled Equinor posted a profit of $2.63bn in the first quarter — a decline of 2pc on the year — as production dropped slightly and it reported lower liquids prices.

Although its profit fell compared with a "strong" first quarter of 2024, it was an increase of nearly a one third from the fourth quarter of 2024.

Equinor's production was 2.12mn b/d of oil equivalent (boe/d) in the January-March period, lower on the year by 2pc.

"The production decrease was similar for both gas and liquids," the company said. It cited "strong" operational performance for most of its Norwegian fields, which it said "almost offsets the negative production impact from the shut-in at Sleipner B… and planned and unplanned maintenance at Hammerfest LNG." The Sleipner B platform was shut down in October after a fire.

Equinor's US production rose on the year, while its output from international assets fell over the same timeframe owing to its exits from Nigeria and Azerbaijan in 2024.

Equinor reported an average liquids price of $70.6/bl in the January-March quarter, down by 7pc on the year. Its realised piped gas prices rose considerably over the same time, to $14.80/mn Btu for Europe and $4.06/mn Btu for the US — increases of 57pc and 74pc, respectively.

The company's total first-quarter power generation increased by 9pc on the year, to 1.4TWh, driven by "stronger clean spark spreads in gas to power generation and onshore assets in Brazil." But the renewables share of this slid by 2pc over the same period, to 760,000GWh because of "unfavourable wind conditions."

Equinor is considering its legal options with regards to its US Empire Wind project, chief executive Anders Opedal said today. The US government in April ordered work to stop on the planned 810MW wind farm, offshore New York.

"We have invested in Empire Wind after obtaining all necessary approvals, and the order to halt work now is unprecedented and in our view unlawful," Odepal said. "This is a question of the rights and obligations granted under legally issued permits, and security of investments based on valid approvals."

The company reported a marginal decline in its upstream CO2 intensity in the first quarter 6.1kg CO2/bl, compared with 6.2kg CO2/bl for full-year 2024. There was a similar drop in absolute scope 1 and 2 greenhouse gas (GHG) emissions — at 2.7mn t/CO2 equivalent (CO2e) for the first quarter, compared with 2.9mn t/CO2e a year earlier.

Equinor confirmed a cash dividend of $0.37/share for the first quarter and plans to launch a second tranche of its share buyback programme of up to $1.265bn, subject to authorisation at its annual general meeting in May. The first tranche of this year's buyback programme was completed on 24 March with a total value of $1.2bn.

By Georgia Gratton

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25/05/19

EU gas stockbuild rises further in 1H May

London, 19 May (Argus) — Injections into EU gas storage facilities quickened in the first half of May from the second half of April, remaining above the previous two years' pace. Net injections across the EU averaged 3.42 TWh/d on 1-15 May, up from 2.7 TWh/d in the previous two weeks and 2.82 TWh/d over the same period of 2024, the most recent data from EU transparency body GIE show ( see injections graph ). The stockbuild was also slightly higher than on 1-15 May 2023, although below the 3.74 TWh/d average in 2018-22. The EU needs a strong stockbuild this summer to close the gap to the two-year average, as storage facilities entered this summer at a much lower base of 388TWh in store, or just 34pc of overall technical capacity. Stocks have since increased to 497TWh as of the morning of 16 May, but this remains 238TWh lower than the 16 May average in 2023-24, although much closer to the 2018-22 average of 503TWh ( see stocks graph ). The German government's recent decree lowering the country's storage target to 70pc by 1 November from 90pc previously reduces required injections in the EU's biggest storage market, although operator Sefe's continued failure to market significant capacity at Rehden may require a strong stockbuild late in the season. And European legislators' push to drop the EU-wide target to 83pc and to essentially abolish intermediary fill targets further decreases the pressure to inject immediately, but could lead to some firms taking a wait-and-see approach while the legislation is finalised. Prompt prices across major European hubs have dropped to significant discounts to the front-winter price so far this month, incentivising injections. The TTF day-ahead price averaged €34.32/MWh on 1-15 May and the balance-of-month €34.37/MWh, each well below the average for the winter 2025-26 contract of €35.92/MWh. An even larger gap opened up in Germany, with the day-ahead on average €2.32/MWh below the winter and the balance-of-month €2.25/MWh beneath it. Sendout from EU LNG terminals remained strong at 4.3 TWh/d on 1-15 May, slightly down from 4.4 TWh/d in the second half of April but well above 3 TWh/d over the same period of 2024. Chinese LNG demand has continued to hold much weaker on the year after a mild winter that left stocks high, along with booming domestic production and stronger pipeline imports from Russia. This has meant that Europe has faced less competition for marginal cargoes. Additionally, a slight drop in gas demand for power generation has left more gas available to add to storage than a year earlier. The EU's gas-fired power generation slipped to 23.1GW on 1-15 May from 23.7GW a year earlier, according to data from Fraunhofer ISE. By Brendan A'Hearn EU net injections GWh/d EU stocks TWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US LNG developers brush off tariff concerns

25/05/19

US LNG developers brush off tariff concerns

Houston, 19 May (Argus) — The US' biggest LNG developers have little worry over potential costs from President Donald Trump's 25pc steel and aluminum import tariffs as they prepare to spend billions building new export infrastructure. The top exporters of US LNG so far in 2025 — Cheniere, Venture Global and Sempra — are pushing ahead with plans for new terminals and expansions, dismissing concerns that Trump's protectionist trade policy could throttle projects that would help add more than 80mn t/yr (12bn cf/d) of capacity to the world's largest supplier of LNG by 2030. Sempra and Venture Global both estimate that just 1pc of capital expenditure for the first phases of their respective Port Arthur and CP2 projects is exposed to tariffs. Sempra plans to spend $13bn on the 13.5mn t/yr first phase of the Port Arthur, Texas, project. Venture Global expects to spend $27bn-28bn on both phases of the 28mn t/yr CP2 plant in Louisiana, but has yet to reach a final investment decision for phase 1. About 90pc of the Port Arthur project's spending is with domestic suppliers and contractors, Sempra chief executive Jeffrey Martin told investors in an earnings call on 8 May, with steel for the first liquefaction train fully sourced in the US. The two-train first phase is expected to have its trains on line in 2027 and 2028. Disruptions during the Covid-19 pandemic had already forced the company to identify and adapt to risks in the supply chain. "We expect those diversified sources to help us better manage and mitigate tariff risks," Sempra chief financial officer Karen Sedgwick said. She later added that the firm preemptively began importing materials for Port Arthur LNG into a foreign trade zone in February, a tactic that can reduce or delay duties payments . Neither of Venture Global's existing 12.4mn t/yr Calcasieu Pass and 27.2mn t/yr Plaquemines plants in Louisiana faces tariff risks, chief executive Mike Sabel told investors on 13 May. But up to $350mn of materials in the 20.2mn t/yr first phase of CP2 are subject to duties. The 26 prefabricated trains in phase 1 are being built in Italy and represent the largest exposure (see table) . Venture Global expects 12 of those trains to arrive in Louisiana by the end of the year. Inflation and high interest rates represent a bigger threat, Sabel said, calling it "probably the toughest environment to build our projects since the 1970s". "It's something we work and live every day because of the scale of construction we're doing," said Sabel, whose company has 73.8mn t/yr of capacity in development. Sempra expects to make a final investment decision on the 13.5mn t/yr second phase of Port Arthur LNG by the end of 2025. Venture Global is eyeing a decision on CP2's first phase by mid-2025. ‘Our best salesmen for US LNG' Cheniere, the largest LNG exporter in the US, faces no tariff risks at its 11.45mn t/yr Corpus Christi, Texas, stage 3 expansion. The seven-train project "is basically complete", chief executive Jack Fusco told investors on 8 May, with all materials on site and construction ongoing. The company expects to have the first four trains producing LNG by the end of the year and plans to reach an investment decision this year to add trains 8 and 9. The largest portion of spending for those trains will be on labor, and "a fair amount" of equipment and materials will be sourced domestically, limiting tariff exposure, Fusco said. The company has already spent $500mn in early procurement. Cheniere also plans to jump on what it sees as a friendly permitting window under the Trump administration and add about 17mn t/yr to its existing 33mn t/yr Sabine Pass plant in Louisiana. Fusco said he has been meeting with administration officials in Washington to discuss trade issues and how LNG fits in Trump's energy agenda. The first Trump administration "were some of our best salesmen for US LNG, and that's continued during the president's current administration", Fusco said. Since taking office in January, Trump's administration has worked to buttress the US LNG industry, quickly ending the Biden administration's pause on issuing licenses to export to countries that do not have free trade agreements with the US and making it easier for projects to receive extensions for such licenses. But the new projects by Cheniere, Venture Global and Sempra may benefit from having already been in at least preliminary development when Trump unveiled the metals tariffs in February. For developers in earlier phases who are just now procuring supplies, "it's a different story", Alex Whittington, director of international affairs at Cheniere, told a conference in April. By Tray Swanson Venture Global CP2 Phase 1 - Tariff Exposure Component Country of Origin Delivery Status Tariff Exposure Liquefaction trains Italy First module delivery in mid-2025 $145mn-255mn Pre-treatment modules Fabricated in US First module delivery in mid-2026 $10mn-20mn Power island components US, Europe, Vietnam Delivered, major equipment in US storage $3mn-5mn Piperack modules, structural steel and pipe Various Piperack and structural steel procured $6mn-10mn Balance of plant Various Major bulk materials procured $40mn-50mn LNG tanks Various 9pc nickel steel plate and pipe piles procured $6mn-10mn Total $210mn-350mn — Venture Global Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU, UK to ‘work towards’ linking carbon markets

25/05/19

EU, UK to ‘work towards’ linking carbon markets

London, 19 May (Argus) — The EU and UK agreed to work towards linking their respective emissions trading systems (ETS), as part of their common understanding agreement concluded at a summit in London today. "The European Commission and the United Kingdom share the view that a functioning link between carbon markets would address many of the issues raised in respect of trade and a level playing field," the agreement states. A linking agreement should exempt both jurisdictions from their respective carbon border adjustment mechanisms, according to the common understanding, and the linked systems should cover power and industrial heat generation, and domestic and international maritime and aviation emissions. The statement specifically states that any link "should not constrain the European Union and the United Kingdom from pursuing higher environmental ambition". It also underlines that the UK ETS's supply cap and its emissions reduction pathway are "guided by" the country's Climate Change Act and nationally determined contributions to the Paris climate agreement, and that these should be "at least as ambitious" as the EU's. The UK has legally binding targets to cut its greenhouse gas (GHG) emissions by at least 68pc by 2030 and 81pc by 2035, both compared with 1990 levels. The EU aims to cut its net GHG emissions by 55pc by 2030, and is yet to set a 2035 target. Both jurisdictions are targeting net zero emissions by 2050, while they share the "same interests" in addressing climate change, commission president Ursula von der Leyen said today. Linking the systems would "save British businesses £800mn in EU carbon taxes", UK prime minister Keir Starmer said today, without specifying a timeframe for the savings. A study commissioned by a range of utilities and published last week found that linking the two systems would save up to €1.2bn on lower hedging costs resulting from improved market liquidity and lower bid-offer spreads. Today's agreement provides no timeline for linking the systems. The process to negotiate and link the Swiss ETS to the EU's scheme took almost 10 years. Alongside plans to work towards linking the EU and UK ETS, the jurisdictions also alluded in the agreement to continuing "technical regulatory exchanges" on energy technologies including hydrogen, carbon capture and storage and biomethane. And they will "explore in detail the necessary parameters" for the UK's potential participation in the EU's internal power market. By Victoria Hatherick and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US House panel votes down Republican megabill

25/05/16

US House panel votes down Republican megabill

Washington, 16 May (Argus) — A key committee in the US House of Representatives voted today to reject a massive budget bill backed by President Donald Trump, as far-right conservatives demanded deeper cuts to clean energy tax credits and social spending programs. The House Budget Committee failed to pass the budget reconciliation bill in a 16-21 vote, with four House Freedom Caucus members — Ralph Norman (R-South Carolina), Chip Roy (R-Texas), Josh Brecheen (R-Oklahoma) and Andrew Clyde (R-Georgia) — voting no alongside Democrats. A fifth Republican voted no for procedural reasons. The failed vote will force Republicans to consider major changes to the bill before it comes up for a vote on the House floor as early as next week. Republican holdouts say the bill would fall short of their party's promises to cut the deficit, particularly because it would front-load increased spending and back-load cuts. The bill is set to add $3.3 trillion to the deficit, or $5.2 trillion if temporary provisions were permanent, according to estimates from the nonpartisan Committee for a Responsible Federal Budget. Some critics of the bill said the proposed cut of $560bn in clean energy tax credits is not enough, because the bill would retain some tax credits for new wind and solar projects. "A lot of these credits have been in existence for 30 or 40 years, and you talk about giveaways, we want to help those who really need help," Norman said ahead of his no vote. "That's the heart of this. Sadly, I'm a no until we get this ironed out." Negotiations will fall to House speaker Mike Johnson (R-Louisiana), who can only lose three votes when the bill comes up for a vote by the full House. But stripping away more of the energy tax credits enacted in the Inflation Reduction Act could end up costing Johnson votes among moderates. More than a dozen Republicans on 14 May asked to pare back newly proposed restrictions on the remaining clean energy tax credits. Ahead of the failed vote, Trump had pushed Republicans to support what he calls the "Big Beautiful Bill". In a social media post, he said "Republicans MUST UNITE" in support of the bill and said the party did not need "GRANDSTANDERS". The failed vote has parallels to the struggles that Democrats had in 2021 before the implosion of their push to pass their sprawling "Build Back Better" bill, which was later revived as the Inflation Reduction Act. Republicans say they will work over the weekend on a compromise. The House Budget Committee has scheduled another hearing at 10pm on 18 May to attempt to vote again on the budget package, but any changes to the measure would occur later, through an amendment released before the bill comes up for a vote on the House floor. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK offshore wind sector needs stability: Industry

25/05/16

UK offshore wind sector needs stability: Industry

London, 16 May (Argus) — The UK's offshore wind sector requires urgent government action to restore investor confidence and meet 2030 decarbonisation goals, industry leaders warned at the All-Energy conference in Glasgow on 14 May. Speaking at the panel Offshore Wind 2024: A Year in Turmoil, experts called for policy stability, streamlined consenting and stronger supply chains to unlock the sector's potential. Chair of industry body Global Wind Energy Council (GWEC) Jonathan Cole criticised the government's proposed locational marginal pricing reforms, arguing they introduce complexity and deter long-term investment. "We're not building coffee shops and bookstores, we're building infrastructure that will sit in one location for generations," he said. Cole warned that a 1pc rise in capital costs could erase £20bn in projected benefits, urging policymakers to prioritise stability over "speculative" market changes. ScottishPower Renewables' chief executive, Charlie Jordan, echoed the need for clarity, highlighting the £75bn investment in UK grid upgrades, particularly in Scotland, as critical for jobs and future-proofing the energy system. He said the ongoing review of electricity market arrangements (Rema) risks undermining grid investment and called for practical measures like general taxation to protect consumers from rising transmission costs. Both panellists stressed the need to accelerate consenting processes to maintain project timelines. They also emphasised strengthening the UK's offshore wind supply chain to compete with nations like South Korea and France. "Without swift action on ports, manufacturing and grid connections, we'll lose opportunities," Jordan said, pointing to Scotland's ScotWind seabed leasing programme and Celtic Sea offshore wind projects. Scotland has 3GW of offshore wind capacity across seven wind farms, including the 1.1GW Seagreen and 30MW Hywind Scotland. Projects under construction, such as the 450MW Neart na Gaoithe and 882MW Moray West, bring the nation's pipeline to 10.2GW expected by 2030, aligning with the Scottish government's 11GW target. The ScotWind seabed leasing round saw 25GW of leasing options agreements awarded in January 2022, with projects like the 2.1GW Berwick Bank, 1.1GW Inch Cape and 560MW Green Volt in planning. But recent setbacks have raised concerns about deliverability. The cancellation of Danish utility Orsted's 2.4GW Hornsea 4 project in May, despite a 15-year contracts for difference (CfD) at £83/MWh, underscores the sector's challenges. Orsted cited rising costs and "execution risks" from installing 180 turbines, highlighting economic unviability under current conditions. Transparency in energy pricing was deemed essential for public support. Jordan said prohibitive costs, driven by taxes and seabed leasing fees, make UK industrial users 70pc less competitive than their European counterparts. Cole added that clear communication is vital as discussions about market reforms and potential EU alignment intensify. With the upcoming seventh round of the CfD scheme and ongoing government consultations, the panel urged decisive action to stabilise the sector. "This is the time for long-term vision, not academic experiments," Cole said. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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