LNG

Designating the Western Canadian Sedimentary Basin and the Montney formation as “strategic national assets” would help reduce feedgas risk and uncertainty facing Canada’s LNG sector today, Ottawa-based Public Policy Forum said in a report on unlocking LNG export potential.

Osaka Gas seeks to expand its oversees LNG business via US upstream and power plant investments through subsidiary Sabine Oil&Gas, with Texas shale gas production expected to reach 3.8 mt LNG-equivalent this fiscal year.

Prime Infrastructure Capital has completed its $850 million (PHP 50 billion) acquisition of a 60% stake in First Gen’s gas subsidiaries, giving it control of the Batangas LNG import terminal and more than 3,200 MW of gas-fired capacity.

Investments in North American natural gas infrastructure – notably LNG terminals – run the risk of becoming stranded assets after 2040 as accelerated decarbonisation reduces LNG demand in Europe, Asia Pacific and China, DNV warns.

Construction of LNG terminals is slowing in Europe as gas consumption is forecast to fall by 15-20% between now and 2030. Germany has shelved some regas terminal projects while a French court ruled an FSRU at the port of Le Havre should be removed, partly due to low utilisation.

Japan’s leading LNG importer and power generator JERA has agreed with Williams and GEP Haynesville to acquire 100% of their interest in the South Mansfield gas field in the Haynesville Shale for $1.5 billion. The upstream asset is close to LNG terminal along the US Gulf Coast.

Eni seeks to launch its gas joint venture with Petronas in 2026 to develop gas fields in Malaysia and Indonesia with a view to becoming a regional LNG player. Petronas brings the Bintulu LNG complex and FLNG assets in Malaysia, while Eni seeks to channel upstream gas production into its JV partner’s expanding LNG supply chains.

Saudi Armaco, the world’s largest oil producer, is reportedly preparing to divest up to five plants that currently power its refineries. The sale could generate around $4 billion and is part of the Government’s strategy to streamline Aramco’s operations, cut costs and diversify assets.