LNG

Norway, the nation that helped restore Europe’s energy security with natural gas, oil and LNG supplies after Russian links were cut following the invasion of Ukraine two years ago, has become the first country in the world to approve commercial deep-sea mining in its waters to supply rare minerals needed to make electric vehicles and other technology.

The Norwegian Parliament voted 80-20 on January 9 to approve a cross-party proposal that could revolutionise the global supply of minerals, which are pivotal for an array of clean technologies, including batteries for electric vehicles.

Under the new legislation Norway is opening up 280,000 square kilometres (108,000 square miles) of the Norwegian Continental Shelf, an area equivalent to the size of the UK, for the granting of exploration licences for minerals and chemical elements such as lithium, cobalt and scandium.

Norway’s approval of deep-sea mining in its own waters will add momentum to moves to open up some international waters for extracting rare minerals.

Mineral sources

Lithium and cobalt are only found below ground in a small number of countries, including onshore the Republic of Congo in West Africa, which will also soon become an LNG exporter with an offshore natural gas project being developed by Italian major Eni.

Norway itself has impeccable environmental and conservation profile as a nation and easily stepped in to increase its natural gas supplies to Europe when Russian deliveries were cut after the invasion of Ukraine in February 2022.

The Norwegians are also Europe’s largest producers of hydro-electric power and more than 95 percent of their electricity and 50 percent of all the country’s power comes from renewables, including wind.

The Norwegians also run the Hammerfest LNG export plant on Melkoya Island in northern Norway supplying nations such as France, the Netherlands, Italy, the UK, Spain and Lithuania with cargoes.

Failure of ideas

The Norwegian move on deep-sea mining was, of course, condemned by the environmental groups, run by the elites and who have forced governments to get petrol-driven cars off the road and replace them with electric vehicles without themselves coming up with any worthwhile suggestions except for sowing chaos and energy poverty.

Analysts say that estimates for the rare minerals industry’s new potential range from hundreds of millions to trillions of dollars.

They add that pressure from opponents mean detailed environmental studies will have to be carried out before any mining can take place, potentially delaying extraction until the 2030s.

None of Norway’s 17 protected marine areas are included in the Norwegian zones proposed for mining and the Government in Oslo has insisted that every commercial licence will have to be approved by its parliament, the Storting.

The first steps for commercial mining companies will be to undertake exploration and mapping activities to increase knowledge of what is below ground in the NCS.

Sonelgaz, the national electricity and natural gas company of Algeria, has been put in charge by Minister of Energy and Mines Mohamed Arkab of helping to manage “a gradual and responsible” energy transition backed by gas while noting Sonelgaz has run renewable integrated energy projects since the 1980s.

During a speech at Algeria’s 27th Energy Day held on March 4 with an event at the National Polytechnic School of Algiers, the Minister outlined the North African nation’s approach to complement its domestic energy needs while exporting more LNG and pipeline gas to Europe.

“Algeria's energy policy aims to move forward resolutely towards the realization of a progressive and responsible energy transition,” said Arkab.

“This requires the adoption of a diversified energy mix taking into consideration all the energies available, the least expensive and the cleanest while benefiting from the achievements of improving energy capacity and working to control energy consumption and to preserve natural resources for future generations,” explained Arkab.

In this regard, Arkab recalled that Algeria has worked since the 1980s, through Sonelgaz, to integrate renewable energies, by supplying 20 villages with solar energy in the South of the country with the creation of solar power stations with a total power of 344 megawatts (MW) and the launch of hybrid projects with capacity of 50 MW.

Various roles

As part of the development of the use of electric vehicles in Algeria, the Minister said that Sonelgaz would carry out experimental projects with a view to setting up 1,000 charging stations for electric vehicles.

Arkab added that natural gas flaring in Algeria was targeted to reach zero and that was the responsibility of oil and gas company Sonatrach.

The Minister also explained that similarly, Sonatrach was working with the Algerian Space Agency and in collaboration with the World Bank to carry out scientific and technological research with a view to measuring and definitively limiting methane gas emissions.

The Minister said that Algeria’s Energy Day was an important opportunity to debate and exchange views between experts, economic operators and sectors concerned with energy, scientific research and the environment.

This was an opportunity for energy experts to lead several conferences, and engineering students to present presentations on themes related to energy resources and the project of an efficient energy model by 2035 and 2050. .

Sonatrach spending

Sonatrach already plans to invest more than $30 billion in the exploration and production of hydrocarbons and to upgrade facilities to improve its position in global markets for LNG as well as pipeline gas for Europe.

As part of Sonatrach's five-year investment plan (2023-2027) the sum of $40Bln has been set aside and more than $30Bln will be allocated to exploration and production with the objective of increasing production in the short and medium term.

Nearly $1Bln will be devoted to Sonatrach’s projects aimed at the company's contribution to the energy transition. These include flared gas recovery projects at production sites and the LNG plants at Skikda and Arzew.

Sonatrach signed a contract in 2022 with two Chinese engineering companies, Sinopec Luoyang Engineering and Sinopec International Petroleum Services Corp., for improvement work at the Skikda LNG plant.

The contracts include the dismantling of two 20-year-old storage tanks and the construction of a new tank of 150,000 cubic metres capacity and the modernization of the jetty and loading facilities to accommodate larger vessels.

Feb 2 (LNGJ) – The Nigerian export plant at Bonny island is keeping up the flow of LNG deliveries to terminals in the European Union. The 142,650 cubic metres capacity vessel “LNG Adamawa” is heading for the French Mediterranean port of Fos-sur-Mer to deliver a cargo on February 3 from the Nigerian export facility.

   The 177,000 cubic metres capacity carrier vessel “LNG Bonny II” is heading for the southeast Spanish port of Cartagena and will arrive on February 3. Another Nigerian delivery is scheduled for the Huelva terminal in southwest Spain with the 148,480 cubic metres capacity “LNG Ondo” set to berth on February 9.

The US government reported that the increase in the nation’s liquefied natural gas exports was supported by large prices differences between the benchmark Henry Hub and spot prices in Europe and Asia and forecast a surge in shipments through March 2022.

Sept 15 (LNGJ) – Two LNG cargoes are heading for Belgium and France with much needed deliveries. The 170,000 cubic metres capacity vessel “LNG Abalamabie” is scheduled to deliver a shipment on September 22 to the French terminal at Fos sur Mer west of Marseille from the Bonny Island plant in Nigeria. The 206,000 metres capacity Q-Flex carrier “Al Kattiyah” is scheduled to discharge a cargo on September 23 at the Zeebrugge import terminal in Belgium from Ras Laffan in Qatar.

   The shipments are bound for the European Union as the Continental European benchmark price, the Dutch Title Transfer facility (TTF), surged to a new summer season record of the equivalent of $22.75 per million British thermal units amid very low EU LNG storage inventories.

Natural gas benchmark prices in the UK and the Netherlands, which help determine LNG cargo values, have plunged to seasonal lows for winter with weather fluctuations having little impact because of very full storage across Europe.