LNG

June 11 (LNGJ) - Enagás, the Spanish natural gas grid and LNG terminals operator, recorded a drop of 18.6 percent in May natural gas imports compared with May 2023 with Russian and Nigerian LNG imports declining. Data from Enagás showed that Spain imported the equivalent of 28,264 gigawatt hours in May, the equivalent of 2.89 billion cubic metres of natural gas. This included regasified LNG as well as pipeline gas from Algeria and France, compared with 34,709 GWh, or 3.55 Bcm of gas, in the same month last year.

   Russia was the largest LNG supplier to Spain with 6,416 GWh, or 511,450 tonnes of LNG, down from 9,663 GWh in May 2023. The US was the second-largest LNG supplier with 3,893 GWh followed by Nigeria with 2,932 GWh, down from 6,813 GWh in 2023. Qatar supplied 1,742 GWh of the LNG total and Algeria delivered 1,477 GWh of LNG and 8,791 GWh of pipeline gas.

Moody’s Investors Service, the US credit rating agency, said that record high natural gas storage of almost 98 percent as of end November helped by LNG deliveries positions the European Union well to meet the needs of this winter season with very limited risks of energy shortages.

Naturgy Group, the Spanish global utility company with LNG supplies from the US and Russia and natural gas and utility businesses in Spain and South America as well as renewables projects in Europe, the US and Australia, reported a first-half surge in revenues and net profits.

Italian energy major Eni, a global participant in LNG projects, said in its World Energy Review 2022 that natural gas prices were up in all markets, soaring 400 percent in Europe 300 percent in Asia and 90 percent in the US, including a marked uptick in the second half.

Algeria said it was fulfilling all its pipeline natural gas and LNG contract obligations to supply Europe and volumes would soon be raised for Spain from current levels as a pipeline expansion comes on stream.

July 22 (LNGJ) - Naturgy Group of Spain, an importer of both US and Russian LNG volumes, said its first-half gross earnings came to €2.03 billion ($2.34Bln) down by around 11 percent on the 2019 figure despite the market challenges. Naturgy also completed negotiations with BlackRock, the world’s largest equity fund, to partner with the Spanish company in a joint venture that will hold 49 percent of the Medgaz subsea natural gas pipeline from Algeria to Spain. The deal provides Naturgy with joint control over the company without enlarging its operations or investing any additional sums.

   “For us, this deal is very attractive. BlackRock coming aboard the investment vehicle attests to the appeal and uniqueness of Medgaz as strategic infrastructure,” said Naturgy Chairman Francisco Reynés. Algerian state energy company Sonatrach holds the majority 51 percent of the shares in Medgaz, which is 210 kilometres in length and has capacity to transport 8.2 billion cubic metres per annum of natural gas.

Algeria, the North African liquefied natural gas producer, has agreed a renewed deal with Tunisia and Italian energy company Eni for the pipeline transportation of more natural gas to southern Europe as the Algerians also prepared to direct new gas finds into industry rather than LNG exports.

Algerian LNG exports have been falling and last year they dropped by 18.2 percent to 10.10 million tonnes compared with 12.34MT the previous year at its two liquefaction plants at Skikda and Arzew on the Mediterranean Coast.

Tunisian Industry Minister Slim Feriani and Eni Chief Executive Claudio Descalzi signed the new agreement to transport Algerian natural gas by pipeline through Tunisia.

The agreement follows another reached with Algerian state energy company Sonatrach in May in relation to the purchase of gas and transport across the Strait of Sicily and completes the contractual framework that allows Eni to import Algerian gas into Italy.

With this agreement, Eni said it was undertaking to operate the Algeria-Tunisia-Italy pipeline for the next 10 years, through its subsidiary Trans-Tunisian Pipeline Company (TTPC), ensuring the necessary reinvestment for modernising infrastructure and taking advantage of the exclusive rights to the entire transport capacity.

Built in the early 1980s and strengthened subsequently over several phases, the trans-Tunisian pipeline consists of two lines, 48 inches wide and around 370km long, from the Algerian-Tunisian border near Oued Saf to the Cap Bon headland. It also has five compression stations.

“With a transport capacity of approximately 34 billion cubic metres per annum, it plays a key role in Italian and Tunisian energy supply and will continue to do so,” stated Eni.

The Italians added that the pipeline contributed to the diversification of sources and to the energy transition in the Italian market.

“The agreement represents a further confirmation of Eni's long-standing commitment to North African countries, not only in hydrocarbon exploration and production, but also in managing transport infrastructure,” added Eni.

Sonatrach Chief Executive Rachid Hachichi also met with Eni counterpart Descalzi to review progress on boosting natural gas output in the North African nation.

Sonatrach reported in early 2019 that several petrochemical joint ventures were under negotiation to monetise its natural gas through channels other than pipeline and LNG exports.

Industry is therefore expected to remain the main driver of natural gas consumption growth in Algeria in the near future.

Residential and commercial demand is set to remain stable, with limited consumption growth owing to gas already having high market penetration in Algeria.

Sonatrach and Eni confirmed the intention to accelerate the development of new oil and gas projects in the North Berkine basin in the Algerian desert that will lead to a significant increase in national production.

The project is composed of two phases. The first is related to oil development and has started up.

The second one, a natural gas project, is scheduled to come on stream by the end of September 2019 with a 180-kilometres pipeline being completed.