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Trinidad seeks bigger slice of Atlantic LNG

  • Spanish Market: Natural gas
  • 04/07/19

Trinidad and Tobago is discussing a proposal with Shell and BP to increase the state's shareholding in the Atlantic liquefaction complex.

The government proposal for greater state interest in the consortium, contained in a government policy paper seen by Argus, reflects the state's "concern about aspects of the management of the Atlantic plant," Trinidad's energy ministry said.

The Caribbean state's bid for increased ownership is part of a planned restructuring of the consortium that runs the country's four-train 14.8mn t/yr liquefaction facility, a ministry official tells Argus.

"The government's intention is to have greater involvement in the operations of this facility that is important to the national economy, and also to increase the income that the state gets from LNG production and export," the official said.

Shell and BP are the main shareholders in Atlantic. The government's existing minority interest is through state-owned natural gas company NGC.

The other minority shareholder is China's sovereign wealth fund CIC unit Summer Soca.

Shell was circumspect about the talks. "Details of our negotiations with the government of Trinidad and Tobago and the other Atlantic shareholders are still ongoing and are commercially confidential," Shell said.

BP has not responded to a request for a comment.

Shell owns 46pc of the 3mn t/yr train 1. BP holds 31pc, and NGC and CIC have 10pc each.

Shell has 57.5pc and BP 42.5pc of both trains 2 and 3, which each have 3.3mn t/yr of capacity.

For 5.2mn t/yr train 4, Shell holds 51.1pc, BP 37.7pc and NGC 11.1pc.

The ministry declined to indicate the level of shareholding the government is seeking, or whether it wants stakes in trains 2 and 3 in which NGC currently has no interest.

"These details are matters to be negotiated," the ministry official said. "Revealing the government's position would put it at a disadvantage in the negotiations."

The government's concerns about the operations of Atlantic emerged in May 2019 when BP said it may close Train 1 after 2019 because of a shortage of feedstock. The UK major said its infill drilling program targeted at the train would deliver about 300mn cf/d less output than forecast.

The pioneering Atlantic complex, which was first established in 1999, has been hamstrung by limited domestic feedstock for years. A Shell-led plan to supplement domestic supply with pipeline gas imports from Venezuela starting this year fell apart amid turmoil in the neighboring country.

The government responded to BP's announcement of the likely shutdown of train 1 by pointing to a recovery in gas production.

Trinidad's gas production has rebounded modestly since November 2017 following a long slide from a peak of 4.3 Bcf/d in 2010. The shortage forced supply curtailments, suppressing output of LNG, ammonia and methanol.

Gas output in February 2019 averaged 3.956 Bcf/d, up by 8.6pc from January. Production in January-February averaged 3.798 Bcf/d, 0.7pc more than a year earlier.

The increased availability of gas led the Atlantic consortium to produce 4.96mn m³ of LNG in January-February 2019, up 2pc on a year earlier, according to the energy ministry.

No new production figures have been issued by the energy ministry since the February data that was published on 1 May.


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21/02/25

Republicans target US energy rules for disapproval

Republicans target US energy rules for disapproval

Washington, 21 February (Argus) — Republican leaders in the US House of Representatives hope to disapprove at least seven energy-related measures issued under former president Joe Biden using a filibuster-proof process created under the Congressional Review Act. House majority leader Steve Scalise (R-Louisiana) on Thursday released a list of 10 rules that his party has prioritized as "potential targets" for disapproval votes, which require only a simple majority to pass in each chamber. Republicans previously used the law in 2017 to successfully unwind more than a dozen rules, and they hope to do so again to repeal Biden-era rules they say will unnecessarily raise costs on businesses and consumers. A US Environmental Protection Agency (EPA) regulation that implements a $900/t charge on oil and gas sector methane leaks is among the rules that Republicans want to disapprove. If those implementing rules are scrapped, it would provide a temporary reprieve from a 31 August deadline for operators having to pay billions of dollars in potential fees on methane emitted in 2024. Republicans hope to vote later this year to permanently end the methane charge, which was created by the Inflation Reduction Act. House Republicans also hope to disapprove an offshore oil and gas safety rule for drilling in deepwater "high pressure, high temperature" environments that Scalise's office says will increase "burdens on energy operations". Other rules that Republicans will target for disapproval are energy conservation for gas water heaters, energy efficiency labeling standards and air pollution restrictions on rubber tire manufactures. Two of the energy measures House Republicans say they plan to target might not qualify for disapproval under the Congressional Review Act, which can only be used on a "rule". The first is a waiver that would allow California to boost in-state sales of electric vehicles and plug-in hybrids, and that President Donald Trump's administration has tried to make eligible for repeal. The second is the US Commodity Futures Trading Commission's decision to release voluntary guidance for exchanges that allow trading of carbon offset futures. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Freeze cuts Oklahoma oil and gas output


21/02/25
21/02/25

Freeze cuts Oklahoma oil and gas output

New York, 21 February (Argus) — Frigid weather in Oklahoma this week has shut in about a third of state oil and natural gas production, according to analysts and pipeline flow data. About 35-40pc of daily oil and gas output in Oklahoma have been lost to freeze-offs from 19-21 February, Energy Aspects analyst David Seduski told Argus . That amounts to cuts of about 150,000 b/d of crude and 2.5 Bcf/d (71mn m³/d) of gas over the period relative to average daily production in the state, US Energy Information Administration data show. The drop was observable in publicly available data for most interstate pipelines across the state, including Kinder Morgan's Natural Gas Pipeline Company, Howard Energy Partner's Midship Pipeline and Energy Transfer's Panhandle Eastern Pipe Line Company and Enable Gas Transmission pipelines, FactSet energy analyst Bailey McLaughlin said. Production will probably continue to be lost through the weekend as cold weather lingers in the state. Freeze-offs occur when temperatures drop low enough to prevent oil and gas production from reaching the wellhead by causing the water contained in the oil and gas stream to freeze. Freeze-offs in Oklahoma typically occur when temperatures fall below 22°F (-6°C), McLaughlin said. This is a higher threshold than the temperature required to curtail output in colder producing regions such as North Dakota, which has also lost production to freeze-offs in recent weeks. The spot gas price at ANR Oklahoma, a regional trading hub on TC Energy's ANR Pipeline, on Thursday surged to $7.715/mmBtu, double the week-earlier price and the highest since 17 January. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Uruguay eyes oil, gas E&P within energy transition


21/02/25
21/02/25

Uruguay eyes oil, gas E&P within energy transition

Montevideo, 21 February (Argus) — Uruguay's state-run Ancap has hopes for an offshore oil or gas discovery, even as the country gears up for its second energy transition. Uruguay has had only three exploratory wells drilled in its history, two in 1976 and one in 2017, and they all came up dry. Companies have completed 13,000 km² of 2D and 41,000 km² of 3D seismic testing this century. Today, its seven offshore blocks have contracts, plans are underway for a new round of seismic testing and one company, US-based APA, wants to spud an exploratory well in its wholly operated block 6 in late 2026 or early 2027. "For the first time in history, we have contracts in place for all the blocks and there is a great deal of interest that resources can be found" in Uruguay, Santiago Ferro, Ancap's energy transition manager, told Argus . A public hearing on seismic testing was held 13 February and the environment ministry is reviewing proposals for permits. Ferro said seismic testing will only be done in areas lacking data. "We want to take advantage of existing information and complement it with new data to encourage drilling," he said. The plan is for approximately 5,000 km² (1,930 mi²) of new seismic testing on two areas — block 1, operated by Chevron and UK-based Challenger Energy Group, and block 4, operated by Shell and APA. The work will likely happen in the final quarter of this year. Ancap's plans will unfold under the new left-wing government of president-elect Yamandu Orsi, who takes office on 1 March. The Oris administration is committed to deepening Uruguay's energy transition. It already has one of the greenest power grids, with 99pc of power coming from renewables, and the Orsi government wants to guarantee electrification of the transportation sector. He will arrive at his inauguration in an elective vehicle as a sign of the government's commitment. The administration wants to decarbonize transportation in 10 years, which will require incentives for vehicles and investment in additional renewable power, principally solar energy. It has not taken a public stand on oil and gas exploration or what it would do if recoverable resources were discovered. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US cites 'energy emergency' to expedite water permits


20/02/25
20/02/25

US cites 'energy emergency' to expedite water permits

Washington, 20 February (Argus) — President Donald Trump's administration is citing an "energy emergency" as the basis to fast-track nearly 700 water permits, including those tied to a tunnel for Enbridge's Line 5 pipeline, LNG infrastructure projects, solar farms and electric transmission lines. Trump declared a national energy emergency on his first day in office, unlocking permitting powers that are typically used in response to natural disasters. The US Army Corps of Engineers has subsequently reclassified hundreds of permit applications for review under expedited emergency procedures, in a move that environmentalists say they plan to challenge in court based on violations of the Clean Water Act and Endangered Species Act. "The Trump administration is planning to skirt legally-required review processes in order to fast-track permits for dirty energy projects under the guise of an energy ‘emergency'", Sierra Club policy director Mahyar Sorour said. The Corps is responsible for issuing water permits for projects that cross streams, rivers, wetlands and other water bodies. Issuing permits sometimes requires the agency to prepare a detailed environmental review that is open to comment and can take years to finish. The water permits classified for emergency treatment include a repair project for Sabine Pass LNG in Louisiana, dredging for Elba Island LNG in Georgia, temporary construction related to Port Arthur LNG in Texas, solar projects in dozens of states, and pipeline projects ExxonMobil is pursuing in Texas. Enbridge delayed construction of a protective tunnel for its Line 5 pipeline to 2026 because of water permitting delays . But environmentalists say the administration cannot cite an energy emergency — which they say does not exist — as justification to bypass permitting rules prescribed by the US Congress. The Corps has also provided emergency treatment to projects with no apparent connection to energy production, such as a housing project in southern California and a gold mine in Idaho, according to an online database. The Corps did not respond to detailed questions but said it was "in the process of reviewing active permit applications relative to the executive order." Congress is continuing to lay groundwork for a bipartisan permitting bill that supporters say could make it faster and cheaper to build pipelines, power plants, electric transmission lines, renewable energy projects and transportation infrastructure. But Democratic leaders are threatening to vote against such a bill so long as Trump continues to "pause" billions of dollars in funding for clean energy projects provided by the Inflation Reduction Act and other laws. "Until the administration shows it will honor its oath to faithfully and impartially execute the laws, we can have zero confidence that any legislative compromise on permitting reform will be executed lawfully," US senator Sheldon Whitehouse (D-Rhode Island) said at a permitting hearing on 19 February. Oil industry and renewable groups are continuing to push for a comprehensive permitting bill, which they say would bring down project costs and help the US meet surging electricity demand from data centers and manufacturers. Permitting changes are "needed for all technologies, and they are needed to meet our energy demand in the future," Business Council for Sustainable Energy president Lisa Jacobson said. "You can't walk away from those facts or that imperative." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Rare SK-PL gas flows as Polish demand surges


20/02/25
20/02/25

Rare SK-PL gas flows as Polish demand surges

London, 20 February (Argus) — Gas has flowed from Slovakia to Poland over the past two days, a rare occurrence since the commissioning of the pipeline, as demand in the latter surged on the back of plunging temperatures. More than 13GWh flowed to Poland from Slovakia at the Vyrava interconnection point on 18 February, and nearly 23GWh on 19 February, transmission system data show. These were the first receipts in either direction at Vyrava since 22 April 2024, as the pipeline has been little-utilised since its commissioning in November 2022 . In addition, there was nearly 40GWh of inflows from Lithuania, the highest for any day since 3 December. This helped boost Polish net imports to 669GWh on 19 February, the highest for any day since 31 December. Stronger imports have been needed as a result of higher domestic consumption caused by plunging temperatures. Overnight lows in Warsaw began to dip below the long-term average on 8 February, but gas demand did not start to significantly increase until 10 February, when minimum temperatures in the capital dropped to minus 7.7°C. Polish high-calorie consumption has since jumped to 903 GWh/d on 10-19 February from 782 GWh/d earlier in the month and 768 GWh/d in January. Demand peaked at 949GWh on 17 February, the highest for any day since 10 January 2024, and not far from the all-time high of 1TWh on 18 January 2021. On 17 February, overnight lows in Warsaw dropped to minus 14.3°C, by far the lowest for any day this winter. In addition to imports from Slovakia and Lithuania in recent days, there were net inflows from Germany at Mallnow of 55 GWh/d on 15-17 February, which is also rare given the expensive nature of these receipts. Because the Yamal-Europe pipeline is not yet fully integrated into the national transmission system, importers have to pay a double tariff to bring gas in at Mallnow and then out into the domestic grid, making imports through this route particularly expensive and uncompetitive in most cases. That said, these flows halted again on 18-19 February. Poland also imported at maximum capacity from the Baltic Pipe each day over 15-19 February, while LNG sendout from Swinoujscie surged to 257 GWh/d out of a maximum capacity of 264 GWh/d on 18-19 February after the arrival of a Qatari cargo a day earlier ( see February imports graph ). Strong imports from almost all directions have been driven by large premiums on the Polish prompt compared with neighbouring markets, with the day-ahead price on the Polish TGE exchange holding €4.23/MWh higher than Argus' Slovak day-ahead market on 1-19 February, and a larger €5.45/MWh and €6.32/MWh to the Czech and German markets, respectively ( see price graph ). Despite the cold snap, Polish firms still exported 25 GWh/d toward Ukraine since 8 February, with flows rising as high as 45GWh on 19 February. Ukraine has been importing heavily from all directions as cold weather has driven storage withdrawals to near their maximum and attacks on production infrastructure have reduced domestic output. Tightness to continue in short term The weather is expected to remain particularly cold over the next three days, likely continuing to bolster demand, but from 24 February onward it is forecast to turn much milder. Minimum temperatures in Warsaw were most recently forecast to reach minus 7°C on 20 February and as low as minus 9°C a day later, before climbing to minus 6°C on 23-24 February. These are all well below the 10-year average for the period of minus 4°C. And along with the continued cold weather, upcoming unplanned maintenance at Swinoujscie will take around 61 GWh/d of the terminal's regasification capacity off line on the 23 February-12 March gas days, further tightening the market. However, from 24 February onward minimum temperatures in Warsaw are forecast to increase significantly to around minus 1°C, and rise above freezing the next day. Overnight lows are then expected to hold above the 10-year average on each day from 24 February-6 March, which should curb heating demand, bringing consumption down and in turn requiring lower imports. By Brendan A'Hearn Polish February net imports GWh Polish day-ahead prices vs neighbouring countries €/MWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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