Russians seek other markets for pipeline gas and LNG after EU gas crisis from Gazprom cuts to Germany
Russian natural gas company Gazprom said it produced 300.8 billion cubic metres of gas from January through September 15, a drop of 15.9 percent from last year and expected exports to the European Union would be down by 50 Bcm by year-end.
Equinor sells stake in Corrib natural gas field in Ireland for over $US430M to Vermilion Energy of Canada
Equinor, the Norwegian LNG production plant owner and pipeline natural gas supplier to the European Union and the UK, has entered into an agreement with Canada’s Vermilion Energy to sell its non-operated stake in the Corrib natural gas project in Ireland.
The Corrib field started production in 2015 and is located 83 kilometres (51 miles) off Ireland’s northwest coast in water depths of almost 350 metres.
The equity gas volumes to Equinor for 2021 are estimated at 58 million standard cubic feet per day.
Equinor and Vermilion have agreed a consideration of US$434 million, before closing adjustment, with an effective date set at 1 January 2022.
The transaction is organised through a share sale of Equinor’s 36.5 percent of the Corrib project, alongside Vermilion, the operator with 20 percent, and Dublin-based Nephin Energy with 43.5 percent.
Hedging
As part of the transaction, Equinor and Vermilion have agreed to hedge approximately 70 percent of the production for 2022 and 2023, and have also agreed a contingent payment that will be paid on a portion of the revenue if European gas prices exceed a given floor level.
“The Corrib field has been an important non-operated project for Equinor for several years,” said Arne Gürtner, Equinor senior vice president responsible for the United Kingdom and Ireland.
“We have taken the decision to sell the asset to focus our portfolio, in line with our strategy, to capture value from the current strong market and to free up capital that we can re-invest elsewhere,” added Gürtner.
The deal is subject to approval by partners, the Irish government and regulatory bodies.
The sale of Corrib means that Equinor will no longer have active business presence in Ireland, after also deciding to withdraw from an early phase offshore wind project in the country.
Equinor’s Hammerfest LNG plant on Melkoya island in northern Norway is currently closed after a fire occurred on September 28 last year.
The facility, which supplies European LNG terminals, is expected to re-open after repairs in the first quarter of 2022.
Asian spot LNG prices rise amid jump in Brent crude as Dutch TTF remains high on European concerns
European natural gas prices fell back from record highs of the past week while North Asian spot cargo values moved higher as spot shipping charter rates soared, while crude oil increased every day this week to boost long-term LNG contract prices.
LNG competitor Nord Stream I gas pipeline from Russia to EU shuts for 10 days as Nord Stream II on track
Nord Stream AG, the natural gas pipeline company for the Russia-to-Germany Nord Steam I Pipeline, one of the main competitors to LNG, will temporarily shut down both lines of its system for routine maintenance for 10 days, starting today.
TechnipFMC awarded another challenging hydrocarbon subsea contract as spin-off pursues LNG work
TechnipFMC is continuing its development of challenging hydrocarbon fields as a subsea operator around the world after the spin-off of the TechnipFMC LNG engineering division, now operating as a separate company, TechnipEnergies.
LNG cargo liftings still at high levels as North Asia spot prices rise again along with European gas values
Demand for liquefied natural gas shipments from liquefaction plants in the Atlantic and Pacific Basins remained at reasonable levels as cargo liftings edged higher and North Asia spot prices increased again along with European gas values.
