Natural Gas Daily: September 15th, 2020
Natural and renewable gas will form the backbone of the newly reinvented oil major BP's ultimate goal of a low – and net zero – carbon future, said the executive vice president for gas and low carbon energy Dev Sanyal.
- Energy needs to be firm, clean and affordable, the company says; but without dispatchable gas-fired plants, that cannot happen.
BP outlined on August 4 its strategy for becoming a net-zero emissions company by 2050, providing investors with some clarity on the its direction at a time when the oil industry faces unprecedented uncertainty.
The Petroleum Council of Israel's energy ministry has approved Chevron's $5bn purchase of Houston-based producer Noble Energy, operator of the Leviathan gas field off Israel, the ministry said on September 14.
Chevron agreed the acquisition in July, in a bid to build up its US unconventionals position and expand in the east Mediterranean. Closure is expected early in the fourth quarter.
Noble also has a 25% interest in Israel's Tamar field, which came online in 2013, and a 35% interest in the undeveloped Aphrodite discovery offshore Cyprus.
Argentina has pitched the construction of a $4.9bn pipeline to flow gas from its Vaca Muerta shale formation to Brazil and is seeking financing for the venture, Reuters reported on September 14 citing a diplomatic source.
Earlier this summer, state YPF issued a force majeure notice to Exmar, whose floating LNG vessel Tango has been idle since Covid-19 hit production in Vaca Muerta in late March. Exmar is contesting its client's claim.
US LNG exporter Cheniere Energy announced on September 14 it would offer $1bn in senior secured notes due 2028.
- Cheniere, which operates the Sabine Pass LNG terminal in Louisiana and the Corpus Christi LNG terminal in Texas, posted a $197mn net income for the second quarter, marking a reversal from a $114mn loss a year earlier.
Russian state shipowner Sovcomflot (SCF) has taken delivery of a new LNG carrier, SCF Barents, it said. The vessel has set sail on its maiden voyage under a long-term time charter contract with Anglo-Dutch major Shell.
- SCF Barents was built at the South Korean Hyundai Samho Heavy Industries shipyard.
Romanian gas supplier Romgaz has signed a memorandum with services firm Grup Servicii Petroliere (GSP) Holding on the development of a 150-MW gas power plant and 50-MW solar plant in the country's southwest, the Romanian government said in a statement on September 11.
- Romania produces around 20-25% of its electricity from gas and around the same amount from coal. But some of its coal-fired capacity is being shut down because of stricter EU emissions standards coming into force and the mounting cost of EU carbon permits.