LNG

Dutch utility Gasunie, whose network and assets include over 17,000 kilometres of pipelines in the Netherlands and Germany as well as stakes in Dutch and German LNG import facilities, reported a plunge in first-half earnings as the Dutch continued to show dependence on LNG amid the green obsessions and over-regulation of the European Union.

Baker Hughes, the US liquefied natural gas equipment-maker and energy services and technology company, has won a major contract from Brazil’s Petrobras.

Italian energy major Eni has delivered the first commercial liquefied natural gas shipment to the nation’s fourth import terminal at the Tuscan port of Piombino.

Africa Oil Corp., a Canadian energy company based in Vancouver and with producing and development assets in deep water Nigeria, has signed production-sharing contracts with LNG potential offshore Equatorial Guinea in West Africa.

Feb 16 (LNGJ) - Shell said in a liquefied natural gas sector outlook that Europe’s increased need for LNG looks set to intensify competition with Asia for limited new supplies over the next two years. Total global trade in LNG reached 397 million tonnes in 2022. Shell added that European countries, including the UK, imported 121MT of LNG in 2022, an increase of 60 percent compared with 2021, which enabled them to withstand a slump in Russian pipeline gas imports following the invasion of Ukraine.

   “With reduced Russian pipeline gas, LNG is becoming an increasingly important pillar of European energy security, supported by the rapid development of new regasification terminals in northwest Europe. In contrast, China is evolving from being a rapidly growing import market to playing a more flexible role with an increased ability to balance the global LNG market,” stated the Shell report.

The past 12 months have been the most turbulent and testing year ever for the energy industry, in particular the natural gas sector and the markets, according to the International Gas Union President Li Yalan.

The IGU President also noted in the December issue of the IGU’s monthly publication that there had also been hard times in many other sectors of the economy and for populations in general.

“The global energy crisis continues and energy markets are rocked by conflict, high and volatile prices, low supply and demand destruction,” stated Li, who was nominated as head of the IGU from the Beijing Gas Group.

“Energy consumers are directly exposed to the energy crisis, with people struggling to pay their bills due to high energy cost,” she said.

“Many had to turn down their heat this winter, several regions have had to endure power shortages and others are walking through darker streets or working remotely to conserve energy,” she added.

Coal use

“Many factories were forced to stop producing, or close down faced with unaffordable energy and deficiency in raw materials. To navigate through the crisis, many countries had to prioritize energy security over energy transition as a result we see a growing number of countries adding coal-power capacity, and increased use of coal - the
most emitting fossil fuel - all across the world, rich and developing alike,” she explained.

The IGU President emphasized that there was an upside as there were positive signals that investments were increasing for natural gas projects and for renewables and that these trends needed to continue for the global energy balance to be restored.

“As we wrap up this year and reflect on its many stresses, I hope that a key lesson that can be learned from it is that energy systems cannot be changed overnight,” noted Li.

“In the recent years leading up to this crisis, energy security became forgotten and long-term planning for secure and reliable supply was seemingly forgotten with it,” she explained.

“This crisis reminds us that energy security should be brought back in balance with economic and environmental policy considerations,” Li declared.

LI added that it was imperative that the world arrives at a “real plan” for an achievable transition toward a clean, secure and affordable energy system.

“Most importantly, it will require an honest dialogue between all key players, including the gas industry,” she said.

The Italian Port of Piombino in northwest Italy, located opposite the island of Elba, has been chosen as the preferred site amid local opposition for one of two floating storage and regasification units purchased by Italy’s grid operator SNAM to improve energy security.

Excelerate Energy, the US specialist and a market leader in floating storage and regasification units (FSRUs), is proceeding with an initial public offering of shares valued at a total of up to $384 million at a time when FLNG project interest is increasing worldwide.

Adriatic LNG, the company that owns and operates the largest LNG regasification terminal in Italy located 17 kilometres off the Veneto coastline, is launching its open season in September to allocate regasification capacity for up to 25 years.

Global cargo liftings of liquefied natural gas declined after four weeks of increases, but North Asia spot LNG prices broke through the $10.00 per million British thermal units level and North Sea Brent crude cleared $51 a barrel amid concerns about future US energy policies, reflected in higher Gulf Coast LNG futures prices.