LNG

Indian liquefied natural gas imports showed a long-awaited surge of over 17 percent in the full fiscal year to the end of March as growing domestic gas output was offset by falling LNG prices and the nation’s increasing demand for gas marked by a new West Coast terminal set to start commercial operations soon

Algeria is preparing for more pipeline natural gas deliveries to the European Union as well as more LNG exports as new gas fields are developed amid more discoveries in the prolific gas basins of the North African nation.

The Algerian state oil and gas company Sonatrach has just appointed a new Chief Executive in Rachid Hachichi and he has just held talks with Claudio Descalzi, the CEO of Italian major Eni, the company with the most widespread interests in Algeria.

The talks between Descalzi and Hachichi in Algiers on October 12 were also attended by the Algerian Minister of Energy and Mines Mohamed Arkab.

“Eni and Sonatrach shared the joint programs for the development of Eni’s operated gas production as well as gas and LNG exports to Europe,” said Eni.

Descalzi also updated Minister Arkab on the progress of the accord signed by Eni and Sonatrach in January 2022 on upstream decarbonization, includingdetection of fugitive gas emissions in pipelines and plants and the identification of flaring-down opportunities in Sonatrach’s fields.

Eni currently has equity production of about 130,000 barrels of oil equivalent per day and is the key international energy company in terms of Algerian oil and gas operations.

Ten discoveries

Sonatrach also revealed that Algeria had made 10 new hydrocarbon discoveries in the nine months to the end of September 2023, adding to the 16 other discoveries made in 2022.

Arkab met the Eni CEO after also attending the 25th ministerial meeting of the Gas Exporting Countries Forum (GECF) held on October 10 in Malabo, the capital of  Equatorial Guinea, an LNG producer and exporter from its Punta Europa plant on Bioko Island.

The GECF ministers issued a statement declaring that it was “ill advised” to call for any halt in natural gas investments.

“Halting gas investment would curb supplies, lead to an excessive rise in prices and a potential return to coal, as happened in 2022, undermining emissions reduction targets,” said the GECF final communiqué.

Arkab noted that participants at the Malabo meeting highlighted the need for “unrestricted investment” while “strengthening transcontinental financial cooperation in this matter”.

The GECF also advocated more “equitable access” to all technologies related to the exploration, extraction and exploitation of natural gas.

Marathon Oil Corp., the shareholder in Equatorial Guinea LNG in West Africa, has completed the acquisition of private equity-backed firm Ensign Natural Resources for $3 billion in cash to almost double its position in the Eagle Ford shale basin of South Texas.

Marathon Oil Corp., the shareholder in Equatorial Guinea LNG in West Africa, has agreed to acquire natural gas assets in the US from private equity-backed firm Ensign Natural Resources for $3 billion in cash to almost double its position in the Eagle Ford shale basin of South Texas.

UK maritime security firm, Dryad Global, has reported that an LNG carrier, the 138,160 cubic metres capacity “Methane Princess”, was attacked and boarded while at anchor off Malabo near the Equatorial Guinea LNG export plant in West Africa.

“The vessel was attacked shortly after breaking off loading operations,” said Dryad, citing the Channel 16 VHF international radio distress frequency.

“The alarm was sounded and all on deck were able to retreat to citadel,” said Dryad.

“Two Filipino nationals were on the jetty and both were taken hostage. One of the hostages, jumped off the pirate vessel and was rescued. One person entering the citadel was also injured and a total of one hostage was taken,” said the Dryad report..

Dryad added that no gun shots were fired and an Equatorial Guinea Navy vessel was at the scene within 40 minutes and a Navy patrol vessel arrived in 45 minutes.

“Navy and Ministry personnel conducted post-event inquiries. The tanker departed on time and was en route to its next port,” said the report.

“The pirate vessel’s direction of travel remains unverified. Further details regarding the incident are unclear,” it added.

The “Methane Princess”, owned by Golar LNG, had declared its arrival at the Punta Europa export plant 24 hours prior to the boarding incident.

“This latest incident is understood to be the 20th recorded kidnapping event in the Gulf of Guinea within 2020,” stated Dryad.

The Equatorial Guinea LNG plant began production in May 2007 and its single processing Train currently produces 3.7 million tonnes per annum.

The shareholders of EG LNG’s holding company have contracted volumes to Royal Dutch Shell under a 17-year agreement inherited from BG Group of the UK after a takeover.

BG originally signed that deal to ship the LNG cargoes to the Lake Charles import terminal in the US state of Louisiana before the shale-gas expansion turned the US into an exporter.

Dryad Global reported the previous attack on an LNG carrier off West Africa in December 2019 when a single speedboat with 10 armed men on board approached the “LNG Lokoja”, while the vessel was heading for the Bonny Island export plant in Nigeria.

Those pirates were reported to have opened fire on the vessel. However, the ship conducted evasive manoeuvres causing the attack to fail.

That incident took place some 70 nautical miles northwest of Sao Tomé and Príncipe, the former Portuguese colony.

The 148,300 cubic metres capacity “LNG Lokoja” , under the management of BW Gas of Singapore, was met by the Nigerian Patrol vessel “Defender VI” and the Portuguese Navy vessel “Zaire” and continued to port under escort.

Noble Energy, the US exploration and production company with overseas interests in the East Mediterranean and West Africa, has approved the Alen natural gas development offshore Equatorial Guinea to provide feed-gas for the LNG export plant.