US climate envoy to visit China
US special climate envoy John Kerry will be the first official in President Joe Biden's administration to visit China on a mission to pursue an understanding with Beijing on global climate goals, despite the overall frostiness in US-China relations.
Kerry will visit Shanghai on 14-15 April to encourage Chinese government officials to step up their commitments to exceed the pledges outlined in the 2015 Paris climate accord, which he helped negotiate as former US president Barack Obama's secretary of state. Kerry's visit to China follows his trips earlier this month to the Middle East, India and Bangladesh, and he will visit South Korea next, all in advance of a virtual climate summit the White House is hosting on 22-23 April.
The climate summit is an opportunity for Biden to share the virtual podium with the leaders of countries with whom his administration has strained relations, including China's president Xi Jinping. Beijing has not confirmed whether Xi will participate.
Kerry's visit to China is a first for a senior Biden administration official. Relations between the two countries have gone from bad in the last year of former president Donald Trump's term to worse under Biden, as Washington has outlined a vision for outcompeting Beijing on advanced technologies, manufacturing and trade.
Before Biden's election, climate was seen as an area where the two countries could cooperate, so Kerry's visit could provide a clue on whether that is still true.
"We are approaching our relationship as one, not of conflict but of competition," the White House said today about the prospect of climate talks helping advance US-China relations.
Xi last year outlined a 2060 target for China to achieve carbon emissions neutrality and a 2030 deadline for reaching a peak in emissions. Biden's plans call for the US to reach net zero emissions by 2050, including a 2035 net zero emissions target for the US electricity grid.
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Australia’s Tamboran agrees NT gas sales deal
Australia’s Tamboran agrees NT gas sales deal
Sydney, 23 April (Argus) — Australian independent Tamboran Resources has signed a long-term gas sales agreement with the Northern Territory (NT) government for supplies from the Beetaloo joint venture's (BJV) proposed Shenandoah South pilot project. The binding deal for 40 TJ/d (1.07mn m³/d) on a take-or-pay basis from Shenandoah South in the onshore Beetaloo sub-basin of the NT equates to a total 131.4PJ (3.5bn m³) and begins in January-June 2026, running for nine years with an option to extend 6½ further years to 2042, Tamboran said on 23 April. This represent about two-thirds of the NT's present gas requirements and is conditional on the BJV entering a binding transportation agreement with pipeline operator APA for the planned 35km Sturt Plateau Pipeline , as well as reaching a final investment decision (FID) for Shenandoah South. Tamboran has a working interest of 47.5pc in Shenandoah South, which is aiming for a FID mid-year, following Canadian independent Falcon Oil and Gas' decision to reduce its participation from 22.5pc to 5pc in March to reduce its cost exposure to the project. BJV is operated by Tamboran, which holds a 50:50 interest in the Tamboran B2 joint venture with privately-held Daly Waters Energy controlled by US billionaire Bryan Sheffield. The BJV also holds a 10-year, 36.5 PJ offtake deal with Australian utility Origin Energy signed in 2022. The NT is dependent on gas-fired power generation. Continuing supply problems at Italian oil firm Eni's offshore Blacktip field has it currently sourcing gas from Australian independent Santos' depleting Bayu-Undan field in the Timor Sea and the onshore Mereenie joint venture . Tamboran is aiming in the long term to develop its proposed 6.6mn t/yr Northern Territory LNG project , for which it is aiming to complete initial engineering this year. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Oman’s PDO to hit 700,000 b/d crude before 2030 target
Oman’s PDO to hit 700,000 b/d crude before 2030 target
Muscat, 22 April (Argus) — Oman's state-controlled PDO has several new greenfield projects that it is looking to bring on stream that should see it reach, and blow past, its target for 700,000 b/d of crude before the end of the decade. Speaking at the Oman Petroleum and Energy show in Muscat today, PDO's managing director Steve Phimister said the company has a portfolio of new "sizeable" projects in the pipeline and expects to reach 700,000 b/d by the "middle of the decade". "But what we would not be going to see in the next couple of years are multibillion dollar projects like Yibal Khuff or Rabab Harweel," he added. PDO's Yibal Khuff — one of Oman's most technically complex upstream projects — came online in 2021 and production was 20,000 b/d in 2022, according to the latest available data for production. Rabab Harweel , Oman's largest enhanced oil recovery (EOR) project, came onstream in 2018 and is producing more than 70,000 b/d. PDO adds around 10,000-15,000 b/d to its production on an average every year, according to Phimister. "Our strategy is to go above 700,000 b/d," he said. "We could, in principle, go quite way above 700,000 b/d of black oil, depending on oil price, shareholder's desire on where they want to invest". But he said PDO wants to grow in "a sustainable way" while "balancing out emission targets." The company in 2021 pledged to reach net zero carbon emissions from its operations by 2050 . The company is likely to hold onto its previous capital expenditure plans, although this is subject to final approval, Phimister said. "We have invested roughly the same amount of capital in the last few years and continue to do so," he said, adding that PDO now has a dual challenge of growing old business while reducing carbon emissions. PDO's planned capital expenditure for last year was $5bn and operating expenditure was at $2bn, in line with 2022 levels. The Omani state owns 60pc of PDO, Shell holds 34pc and TotalEnergies has 4pc. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Balticconnector gas pipe recommissioned after rupture
Balticconnector gas pipe recommissioned after rupture
London, 22 April (Argus) — The Finland-Estonia Balticconnector gas pipeline has been re-commissioned, with commercial flows starting at the beginning of today's gas day. There were renominations for 12.5GWh of flows towards Finland and 78.2GWh in the opposite direction for today as of early afternoon, suggesting net flows towards Estonia of around 66GWh. Finnish demand remains relatively low, while stocks at Finland's Inkoo LNG terminal need to be mostly depleted before the upcoming arrival of a new cargo on 26 April. The Balticconnector was taken off line on 8 October following a rupture caused by a dragging anchor . The system operators of Finland and Estonia said at the time that the pipeline could return in April at the earliest, meaning the initial timeline set out for repairs has been met. The recommissioning of the Balticconnector could allow Finnish prices to realign with those in the Baltic markets now that the two areas are connected again. During the Balticconnector's absence, Finland was entirely reliant on LNG deliveries to Inkoo, meaning prices were highly volatile and frequently held significantly above prices further south. Price differentials reached a peak of nearly €58/MWh ($62/MWh) in mid-January as a cold snap caused Finnish power-sector gas demand to soar while stocks at Inkoo were relatively low. That said, the basis between the two markets has narrowed significantly since mid-March, and the Finnish price has on several days held lower than in the Baltics ( see graph ). By Brendan A'Hearn Finnish vs Estonian-Latvian prices Oct 2023-present €/MWh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
TotalEnergies takes FID for Oman's Marsa LNG
TotalEnergies takes FID for Oman's Marsa LNG
Dubai, 22 April (Argus) — TotalEnergies has taken a final investment decision (FID) for the integrated Marsa LNG bunkering project it is carrying out in Oman with state oil company OQ. The project involves the production of 150mn ft³/d (1.55bn m³/yr) of gas from Oman's onshore block 10, the liquefaction of that gas at a new 1mn t/yr capacity plant to be built at the port of Sohar on Oman's north coast, and the construction of a 300MW solar generation facility that will power the plant. The ambition of the project is to serve as the first LNG bunkering hub in the Mideast Gulf region, showcasing "an available and competitive alternative marine fuel" to reduce emissions coming from the shipping industry. TotalEnergies said today that it expects to begin producing LNG by the first quarter of 2028. That LNG is "primarily intended to serve the marine fuel market in the Gulf", the company said, but all LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies and OQ. "We are proud to open a new chapter in our history in the sultanate of Oman with the launch of the Marsa LNG project, together with OQ," TotalEnergies chief executive Patrick Pouyanne said. TotalEnergies holds a majority 80pc stake in the joint venture, with OQ holding the remaining 20pc. "We are especially pleased to deploy the two pillars of our transition strategy, LNG and renewables, and thus support the sultanate on a new scale in the sustainable development of its energy resources," Pouyanne said. TotalEnergies, Shell and OQ formalised an agreement to develop the gas resources in Oman's block 10 in late 2021 . The consortium began producing gas from the Mabrouk North East field in block 10 in January 2023. At the time, the companies said they expected to reach plateau production of 500mn ft³/d by the middle of 2024. But TotalEnergies today said the consortium had already reached plateau this month. As part of the original agreement, Marsa LNG was due to deliver production from the block to the government for 18 years, or until the end of 2039. But the decision by TotalEnergies and OQ to take FID has triggered an extension of Marsa LNG's rights to block 10 until 2050. The planned 300MW photovoltaic solar plant should cover 100pc of the LNG plant's annual power consumption, which will help "significantly" reduce greenhouse gases. "By paving the way for making the next generation of very low-emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy," Pouyanne said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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