LNG

Galp Energia, the Portuguese oil and gas company whose most valuable upstream assets has been its stake in one of Africa’s prolific natural gas basins and LNG projects offshore Mozambique, says a new discovery off the southwest African nation of Namibia could contain 10 billion barrels of oil equivalent or more.

Sonatrach, the Algerian state energy company and LNG producer, has signed an accord with French major TotalEnergies to expand cooperation in the exploration and production of natural gas and in the LNG business.

The Sonatrach-TotalEnergies memorandum of understanding outlines the realisation of a work programme for the appraisal and development of natural gas resources in the Northeast Timimoun region.

The accord includes synergies with existing processing facilities for production from the Timimoun field to reduce costs and emissions.

Sonatrach and TotalEnergies plan to “consolidate their partnership and expand their cooperation” in their gas resources and LNG business.

Sonatrach added that the accord “defines the framework of cooperation between the parties” with the objective of concluding a hydrocarbon contract in the identified area of ​​interest.

Interests

TotalEnergies is active in oil and gas exploration and production through its interests in the Tin Fouyé Tabankort (TFT) and Timimoun gas fields, the Berkine Basin oil fields (Blocks 404a and 208) and via LNG supply contracts with Sonatrach.

“Sonatrach and TotalEnergies operate, within the framework of association contracts, the contractual areas of TFT II, ​​TFT Sud, Timimoun and Berkine,” the statement noted.

These are among the largest gas fields Algeria and located in the prolific Illizi-Ghadames Basin.

Total and Sonatrach are also advancing with their petrochemical project development for Western Algeria.

“This memorandum of understanding reflects our shared willingness to expand our strategic partnership with Sonatrach,” explained Julien Pouget, Senior Vice President Middle East and North Africa, Exploration and Production at TotalEnergies.

Sonatrach and TotalEnergies earlier in 2023 extended their cooperation in the LNG sector with a new contract.

In 2025, Sonatrach will thus be delivering 2 million tonnes per annum of LNG to TotalEnergies at the LNG importer terminal at Fos-Cavaou, west of Marseille.

Energy security

“This will contribute directly to the security of energy supply in France and Europe,” the statement added.

Algerian LNG exports have been recovering from a low ebb and increased by almost 9 percent to 13.45 million tonnes in 2023 from 12.40MT in the previous year from the Arzew and Skikda liquefaction plants on the Mediterranean Coast.

Algeria is also a main pipeline natural gas supplier to Europe via Trans-Mediterranean pipelines supplying Italy as well as Spain and Portugal.

The North Sea Transition Authority (NSTA), the UK regulator seeking more oil and gas exploration and production in British territorial waters that will affect future import needs for pipeline gas, LNG and oil has offered a total of 24 licences in the second tranche of the 33rd oil and gas licensing round.

TotalEnergies, the leading European oil and gas major, has joined with Shell, Brazilian state company Petrobras as well as two Chinese majors to start production from a second development phase of the Mero field offshore Brazil.

TotalEnergies Chairman and Chief Executive of Patrick Pouyanné explained to shareholders the positive consequences of fighting off moves by environmentally extremist activists and remaining on track to increase liquefied natural gas and other hydrocarbons supplies needed now.

TotalEnergies Chairman and Chief Executive Patrick Pouyanné has met Lebanese Minister of Energy and Water Walid Fayad at the French major’s Paris headquarters to mobilize drilling teams for the Block 9 offshore resource that will make Lebanon an energy producer in what is becoming the Eastern Mediterranean LNG and pipeline gas hub.

Offshore Energies UK, the leading trade body for the UK’s offshore oil and gas and energy industries with 400 members, has welcomed Rishi Sunak’s appointment as the nation’s next Prime Minister.

“Sunak must refocus attention on the crucial issues facing the nation, including helping people pay their winter energy bills and keeping the lights on in the face of Europe-wide gas shortages,” said the UK body about the new Conservative Party leader.

“In the longer term he must deal with the challenges of fuelling the future, including using the gas and oil remaining in the UK’s offshore waters to provide energy during the transition to low carbon,” added OEUK.

It pointed out that last year oil and gas accounted for 75 percent of the UK’s energy needs.

Last year the British consumed 78 billion cubic metres of gas, or the equivalent of 58 million tonnes of LNG, the output of four of the largest US LNG export plants.

Annual UK gas consumption amounted to 1,100 cubic metres per person. 

Oil and gas needs

The UK needed to import 11.05 million tonnes of LNG last year to help meet its needs, just behind Europe’s two largest LNG buyers, Spain with 13.85MT and France with 12.35MT.

Around 80 percent of UK households, or 24 million homes, rely on natural gas for heating and on average about 42 percent of all UK electricity is produced by burning gas.

As regards the nation’s oil needs, the UK consumed 55 million tonnes of oil and oil products in 2021, equivalent to 0.8 tonnes per person.

On UK roads, 32 million cars and trucks rely on gasoline and diesel for their fuel and require 22 million tonnes per annum of diesel and 10MT a year of gasoline.

“We wish Rishi Sunak the best. We are already in very challenging times and energy is at the top of the agenda. Global energy prices are rising, and UK consumers face surging bills at the coldest time of year,” said Deirdre Michie, OEUK’s Chief Executive.

“OEUK’s members are protecting the UK from many of the worst impacts of those shortages by producing energy for the whole nation,” she added.

“They will keep doing that in the tough times ahead. We work with politicians of all parties, now including Mr Sunak’s administration, and we look forward to meeting him and his team,” she added.

“When we do, we will be making a powerful case around the need for stability in the fiscal and regulatory regimes governing the UK’s offshore sector,” explained Michie.

“The UK needs to secure billions of pounds for offshore investments if it is to keep producing the gas, oil and offshore wind, plus other low-carbon energies, needed for future growth and productivity,” she declared.

TotalEnergies held a two-day Board meeting to approve future strategy that will involve a larger liquefied natural gas portfolio to position the French major in the top three worldwide of LNG market participants.

French major TotalEnergies reported an almost three-fold surge in second-quarter adjusted net income to $9.8 billion compared with $3.46Bln in the prior-year quarter even after a  $3.5Bln impairment charge related mainly to the potential impact of international sanctions on the value of its Novatek stake.

Cosmo Energy Group of Japan has received government backing for its latest exploration and production venture offshore Abu Dhabi in the United Arab Emirates as the Japanese continue to underwrite projects related to oil and gas and LNG as well as other commodities.