LNG

Repsol, the Spanish oil and gas company and liquefied natural gas market participant, has acquired a 40 percent stake in Genia Bioenergy, Spain’s main developer of natural gas made from waste to boost its presence in the bio-LNG bunkering sector.

Genia Bioenergy is developing 19 plants producing biogas made from agricultural and livestock waste in Spain and Portugal.

The biogas produced will be used both for Repsol's internal consumption and for marketing to customers. Repsol did not disclose any financial details about the transaction with Genia Bioenergy.

Fuels sector

“This agreement is an important step forward in our strategy to take advantage of substrates and organic waste and transform them into fuels for the home, industry and mobility,” said Juan Abascal, Repsol's Executive Managing Director of Industrial Transformation and the Circular Economy.

Repsol added that Genia Bioenergy is the only Spanish company that integrates the entire biogas and biomethane value chain, from the development of technologies to the engineering and construction and the biological and technical operation at the projects.

The Spanish major explained that the emerging biogas industry in Spain and Portugal will contribute to solving the problem that organic waste currently represents for administrations, since it takes advantage of waste that would otherwise generate emissions into the atmosphere as it degrades in landfills.

It also represents an opportunity to generate economic activity in rural areas.

According to Gabriel Butler, Chief Executive of Genia Bioenergy, the biogas plants will help meet the Iberian Peninsula’s European Union obligations on carbon emissions.

“The development of biomethane plants advances Spain's goal of decarbonization of the economy, reduces its energy dependence on foreign countries and provides a sustainable response to European guidelines on waste management,” said Butler.

Rural economy

“It also means the creation of qualified jobs and the boosting of economic ecosystems around waste, especially in rural environments,” he added.

In the LNG sector, Repsol has been building up its LNG bunkering business in recent years and has an agreement with French company Brittany Ferries to supply its vessels arriving at ports in Spain with LNG fuel.

In conventional LNG trading Repsol is also one of the companies with an as yet unfulfilled sale and purchase agreement with Venture Global of the US for the Calcasieu Pass LNG export plant in Louisiana.

Repsol additionally signed a deal in February 2024 to supply UK utility company Centrica with 1 million tonnes of LNG shipments between 2025 and 2027.

Centrica said at the time that all of these cargoes were expected to be delivered to the UK Grain LNG import terminal located on the Medway River in Kent, southeast England.

WaveCrest Energy has announced the start of a market consultation process for a proposed Teesside Flexible Regas Port as the UK’s third liquefied natural gas import destination in advance of a planned capacity auction to be launched in the third quarter of 2024.

Asian liquefied natural gas prices and European cargo values increased for a second week from previous three-year lows as cooler weather and energy policy uncertainties offset high storage as the Northern Hemisphere winter gas season winds down after some of the warmest months on record hit demand.

Feb 7 (LNGJ) - UK company Centrica Plc and Spanish oil and gas major Repsol have signed an agreement for Centrica to purchase 1 million tonnes of LNG shipments between 2025 and 2027. Centrica said that all of these cargoes were expected to be delivered to the UK Grain LNG import terminal in Kent. “The deal marks an additional move by Centrica to build further resilience in the UK’s energy security,” said Centrica Energy, the UK company’s trading unit.

   “It follows a 15-year, $8Bln LNG deal with Delfin Midstream in July 2023, a three-year (pipelines) supply agreement with Equinor through to 2024 and the reopening and expansion of the UK’s Rough gas storage facility,” said Centrica. Cassim Mangerah, the managing director of Centrica Energy, said he was delighted to have closed this deal. “One of the key pillars of our successful and growing LNG business is our partnership approach. Our new deal with Repsol will complement the Atlantic leg of our diversified and flexible portfolio,” stated Mangerah.

Europe’s largest liquefied natural gas import terminal, the UK’s Isle of Grain facility on the Medway River in Kent, has extended its capacity agreement with the Algerian national energy company Sonatrach.

Grain LNG, owned by a subsidiary of National Grid Plc, said a 10-year agreement was signed to extend the long-term storage and redelivery capacity of Sonatrach at the UK terminal from January 2029.

This is the first agreement signed for around 3 million tonnes per annum of capacity from Grain LNG’s competitive auction process which was launched in September 2023.

“The successful outcome of the auction further secures the future of Europe’s largest terminal into the next decade,” said the company.

The Grain LNG terminal, sited about 43 miles (69 kilometres) southeast of London, is currently expanding to store and deliver enough gas to meet up to 33 percent of UK gas demand.

Security

“This helps ensure the UK’s energy security as LNG imports play a critical role in making sure the UK has the gas it needs, when it needs it and providing a flexible and reliable supply to heat peoples’ homes and to complement the growth of renewable generation,” said Katie Jackson, President of National Grid Ventures, owner of the terminal.

“This agreement ensures that Grain will continue to have a diverse supplier base within the Atlantic Basin,” added Jackson.

“I am delighted that Sonatrach have once again shown a long-term commitment to our world-class site which UK consumers rely on, and I look forward to continuing our working relationship with them in the coming years,” she stated.

Mayouf Belgacem, Executive Vice President of Sonatrach, said LNG would continue to play a critical role in worldwide energy supply.

Algeria, the longest-standing global exporter of LNG supplies to Europe, operates two liquefaction and export plants at Skikda and Arzew on the Mediterranean Coast.

“We have expressed our willingness to strengthen our position as a long-term partner of Grain LNG and as a substantial contributor to UK gas security of supply,” Belgacem explained.

Guaranteed access

“Besides, this agreement offers Sonatrach guaranteed access to Europe’s largest terminal which helps line up Sonatrach’s long-term marketing strategy by diversifying its markets,” said the Sonatrach executive .

The Isle of Grain terminal had launched its auction for 9 MTPA of existing capacity and Sonatrach has now been a leading beneficiary.

There is also an expansion project underway at the UK facility that will see LNG storage at the terminal increase in 2025 to around 1.2 million cubic metres.

In the past 12 months the UK terminal has unloaded almost 120 carriers originating from multiple countries.

In addition to Algerian volumes, the terminal has received cargoes from the US, Qatar, Angola, Nigeria, Norway, Peru and Trinidad and Tobago.

Grain LNG, as part of the National Grid Ventures subsidiary, operates outside of National Grid’s core regulated businesses in the UK.

National Grid Ventures has a diverse portfolio including subsea electricity interconnectors, competitive transmission, wind and solar generation, battery storage as well as the Grain LNG storage and regasification infrastructure.

Centrica Plc, the UK owner of the British Gas utility business and an LNG importer, has released stored gas into the grid from the Rough Gas Storage system for the first time this winter season.

Nov 28 (LNG) – Two December cargoes are heading for the UK. The “BW Pavilion Aranda” with 173,400 cubic metres capacity is scheduled to discharge a shipment on December 2 at the South Hook terminal at the Port of Milford Haven in Wales. The cargo was loaded on November 16 at the Freeport facility in Texas, according to shipping data. The “Iberica Knutsen” with 135,230 cubic metres capacity will deliver a cargo on the same date to the Isle of Grain LNG terminal in Kent, southeast of London. The cargo was lifted on November 11 from the Corpus Christi plant in Texas.

The North Sea Transition Authority (NSTA), the UK regulator that is launching renewed oil and gas activities in British territorial waters that will affect future import needs for pipeline gas, LNG and oil has issued an Area Plan for cross-licence and cross-Hub collaborative frameworks to ensure maximum recovery of oil and gas in six areas.

The six areas where oil and gas activities will take place are the Central North Sea, the Northern North Sea, the Southern North Sea, West of Shetland, East of Shetland and the East Irish Sea.

The NSTA, formerly known as Oil and Gas Authority, had previously drawn up a “Maximising Economic Recovery of UK Petroleum (MER UK) Strategy” with added “behavioural Guidelines” written by the industry for the industry and aimed at helping all participants.

The report estimates that the effective use of Area Plans has the potential to unlock around 4 billion barrels of resources.

Working with operators

“The NSTA is working closely with operators, licence holders and other interested parties to develop Area Plans across the oil and gas life cycle,” said the report.

“These integrate exploration, development, production, and decommissioning to ensure operations ensure economic recovery with the optimum use of infrastructure to extend asset life,” the NSTA added.

The NSTA explained that Area Plans, like industry, are evolving with scopes of work now incorporating energy integration and net-zero considerations.

“Area Plans represent a shared view amongst industry participants of the optimal way to ensure economic resource recovery,’ said the report.

“For the majority of Area Plans, the NSTA will normally expect industry to lead on developing and delivering the plans,” it stated.

The NSTA has developed Guidance (revised in November 2023) to aid the industry’s understanding of their responsibilities for developing Area Plans and help improve collaboration across the UK Continental Shelf.

Updates

“As experience and practice develop, the NSTA will update and review this guidance,” it said.

Under the leadership of Steve Phimister, Industry Cultural Change Champion, the “Behavioural Guidelines” have been created to help those involved in Area Plans.

These Guidelines provide advice, share insights from existing Area Plans groups and signpost to relevant tools and resources.

The Guidelines are categorised into four “Area Plan Essentials”: 1.) Create the Right Environment; 2.) Secure the Right People at the Right Time; 3.) Clarify the Boundaries for Collaboration; and 4.) Agree an Appropriate Decision Process.

The full report is available on the NSTA Web site.

Nov 14 (LNGJ) - The UK is set to receive two additional US LNG deliveries in the next week. One vessel is scheduled to discharge a cargo from Texas on November 14 at the Isle of Grain terminal on the Medway River, southeast of London, and a second is due to berth next week at the South Hook import terminal at the Port of Milford Haven in Wales with a shipment from Louisiana.

   The carrier “Flex Constellation” with 174,400 cubic metres capacity was set to berth before midday on November 14 at the Isle of Grain facility after lifting a cargo on November 1 from the Corpus Christi export plant in Texas, according to shipping data. The vessel “LNG Abalamabie” with 170,000 cubic metres capacity is scheduled to berth at South Hook on November 20 with a shipment loaded at the US Sabine Pass plant.

National Grid Plc, the UK power transmission and infrastructure company with several businesses in the US and the Isle of Grain LNG import near London, reported declines in fiscal first-half profits while investments in projects increased amid a more positive winter energy outlook for the UK and its near neighbours.