S Africa eyes LPG expansion to ease power shortages
South Africa should significantly grow LPG's share in the energy mix to help alleviate persistent electricity supply shortages, according to a recommendation from the ruling African National Congress (ANC).
In an advisory paper the ANC's economic transformation committee said that LPG and gas should be integrated in new housing developments to enable a shift away from using electricity for heating and cooking. This would lower peak power demand and help towards meeting the government's target of doubling LPG usage to more than 820,000 t/yr within the next five years, it said.
The paper proposes a raft of other measures to boost South Africa's energy security, including further intensifying regional integration efforts with the aim of securing access to gas in neighbouring countries and/or developing new regional generation and transmission infrastructure where needed.
South Africa is already highly dependent on natural gas imports by pipeline from Mozambique, but this will start to taper in 2023 as the Pande and Temane fields deplete. Consequently it has sought to expand collaboration with its neighbour, where Total recently resumed construction on one of the largest LNG projects in the world, which will be fed by offshore fields containing more than 60 trillion ft³ (1.7 trillion m³) of gas resources.
Investments in offshore and onshore oil and gas could make a critical contribution to energy security, the ANC committee said.
"Gas is emerging as a game changer both in terms of its role in the country's energy transition and in terms of the new opportunities it presents," it said.
In early 2019, Total made a gas condensate discovery at the Brulpadda prospect in the Outeniqua Basin's block 11B/12B off the southern coast, indicating potential resources of 1bn bl of oil equivalent (boe). This sparked renewed interest in South Africa's exploration sector, but uncertainty over a long-delayed revision of the legislative framework for petroleum exploration has held back investment.
To aid upstream investments the Petroleum Resources Development Bill should be finalised, including "the related fiscal measures that will ensure shared outcomes between the state and those granted rights," the ANC committee said.
The latest version of the bill envisages the government taking a 20pc carried interest in exploration and production projects through state-owned PetroSA. The next step towards passing the bill is for cabinet to consider the legislation, but the timeline has been delayed by the Covid-19 pandemic.
Upstream, local partnerships should ensure that South African firms develop and own energy technologies, according to the paper. Downstream, the development of new "green industries" and hydrogen technology should be incentivised, it said. The feasibility work for a new refinery complex should also be advanced, the ANC committee said.
South Africa plans to build a 300,000 b/d refinery and associated petrochemical facility at Richards Bay with the backing of a $10bn investment from Saudi Arabia's state-controlled Aramco. State-owned Central Energy Fund (CEF), which is jointly undertaking feasibility studies with Aramco, has said the refinery is unlikely to come online before 2028.
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Egypt’s Egas seeks LNG over October-December
Egypt’s Egas seeks LNG over October-December
Singapore, 6 September (Argus) — Egypt's state-owned gas firm Egas is seeking 20 spot LNG cargoes for delivery over October-December through a tender that will close on 12 September. The firm is seeking 17 deliveries to Ain Sukhna, and three deliveries to Jordan's 3.8mn t/yr Aqaba import terminal, through a tender that closes on 12 September. This tender may create additional competition for spot LNG for European buyers. News of the tender may have contributed to a rise in European gas prices, with the front-month contract at the Dutch TTF trading at over €37.50/MWh in the morning, against an Argus assessment of €36.13/MWh on Thursday. But the TTF lost most of its gains later in the day. Egas was last in the market to seek up to five cargoes for delivery over August-September , through a tender that closed on 29 July. This tender was likely to have been fully awarded at an average of a $1.50/mn Btu premium to the TTF, possibly to TotalEnergies, Gunvor and BP, traders said. Traders in mid-August estimated that Egypt would seek about eight to 15 spot cargoes for winter. Its latest requirement for 20 cargoes may indicate that the country's demand for imports is leaning towards the higher end. At the same time Egas executive managing director Magdy Galal had told Argus this February that Egypt would be able to export in winter 2024-25, "as usual". Europe was the main destination for Egyptian LNG exports in recent years. Egypt shipped 84 cargoes to Europe in the past two years, while only 35 vessels were exported elsewhere. Croatia, Greece, Italy, Poland, France, the Netherlands, Spain and the UK were among the recipients of Egyptian cargoes. Egypt last exported LNG in April, when it delivered 209mn m³ of equivalent pipeline gas, data from the Joint Organisations Data Initiative (Jodi) show. But Egypt's appetite for spot cargoes is likely to remain, particularly as domestic gas production in the country has been falling. Gas production in Egypt fell to its lowest for seven years in June , the latest Jodi data show. At the same time, its pipeline gas deliveries from Israel have been hit with uncertainty since the start of the Israel-Hamas conflict in Gaza. Pipeline deliveries from Israel to Egypt fell to 731mn m³ in June from 851mn m³ in May, having reached record highs earlier this year. LNG exports from Egypt this winter are "not very likely" , Italy's Eni said on 26 July. By Rou Urn Lee and Alexandra Vladimirova Egas tender delivery windows Delivery to Ain Sukhna, Egypt Delivery to Aqaba, Jordan 4-5 October 2024 16-17 October 2024 9-10 October 2024 21-22 November 2024 14-15 October 2024 23-24 December 2024 19-20 October 2024 24-25 October 2024 29-30 October 2024 8-9 November 2024 13-14 November 2024 18-19 November 2024 23-24 November 2024 28-29 November 2024 3-4 December 2024 9-10 December 2024 15-16 December 2024 21-22 December 2024 27-28 December 2024 31 December 2024 - 1 Jan 2025 Source: Egas Egas tender delivery windows Delivery to Ain Sukhna, Egypt Delivery to Aqaba, Jordan 4-5 Oct 2024 16-17 Oct 2024 9-10 Oct 2024 21-22 Nov 2024 14-15 Oct 2024 23-24 Dec 2024 19-20 Oct 2024 24-25 Oct 2024 29-30 Oct 2024 8-9 Nov 2024 13-14 Nov 2024 18-19 Nov 2024 23-24 Nov 2024 28-29 Nov 2024 3-4 Dec 2024 9-10 Dec 2024 15-16 Dec 2024 21-22 Dec 2024 27-28 Dec 2024 31 Dec 2024 - 1 Jan 2025 — Egas Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Canada’s west coast crude exports up ten-fold on TMX
Canada’s west coast crude exports up ten-fold on TMX
Calgary, 6 September (Argus) — Crude exports from Canada's west coast rose sharply in June as shippers were eager to take advantage of enhanced access to Pacific Rim markets, according to Trans Mountain Corporation (TMC). The 590,000 b/d Trans Mountain Expansion (TMX) pipeline nearly tripled the capacity of the original 300,000 b/d system connecting oil-rich Alberta to Burnaby, British Columbia, with new volumes reaching the Westridge Marine Terminal (WMT) midway through May. Throughputs made a step change in June, the first full month of service, highlighting the pent-up demand among shippers who had waited years for the expansion to be built. Volumes on the Trans Mountain Mainline averaged 704,000 b/d in June, up from 412,000 b/d in May and 300,000 b/d in April, TMC said in its quarterly update. Of those flows, more than half went to the WMT for export in June at 361,000 b/d, ten times the 36,000 b/d sent to the terminal in April. The WMT handled 76,000 b/d of volume in May. Levels at the WMT have held steady in July and August above 350,000 b/d, according to more recent data from Kpler. Most of the volume has gone to China and the US west coast, but cargoes have also been aimed at new markets like Brunei this week . On a quarterly basis, the Mainline handled 471,000 b/d from April-June, up from 349,000 b/d from a year earlier. The WMT handled 157,000 b/d in the second quarter, up from 39,000 b/d across the same period. The Trans Mountain system also has a terminal at the Canada-US border near Sumas, Washington, that diverts crude to refineries in Washington state via the company's 111 kilometre (69 mile) Puget Sound Pipeline. Movements on Puget Sound rose to 246,000 b/d in June, up from 241,000 b/d in May and 199,000 b/d in April. Across the quarter, Puget Sound moved 229,000 b/d, up from 233,000 b/d in the same quarter 2023. Carrying costs for the highly-leveraged C$34bn ($25bn) TMX project weighed on the company's earnings despite an increase in toll-related revenues. Trans Mountain ended the second quarter with C$26.2bn of total debt, up from C$20.1bn a year earlier. Trans Mountain posted a loss of C$48mn in the second quarter, down from a C$172mn profit during the same quarter of 2023. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Astomos adds LPG-fuelled VLGC to fleet
Japan’s Astomos adds LPG-fuelled VLGC to fleet
Tokyo, 6 September (Argus) — Japanese LPG importer Astomos Energy has commissioned a very large gas carrier (VLGC) with a dual-fuel LPG engine, adding to its existing fleet of 26. Astomos on 4 September commissioned the 86,953m³ Liverty Pathfinder , which was built by shipbuilder Kawasaki Heavy Industries at its Sakaide shipyard in southwest Japan's Kagawa prefecture and is co-owned by shipping firm NYK. The VLGC is the fourth co-owned vessel with NYK, adding to Gas Capricorn in 2003, Gas Garnet and Gas Amethyst in 2024. The VLGC can use LPG as a bunker fuel from a cargo tank. It is possible to reduce more than 95pc of sulphur oxide and more than 20pc of carbon dioxide emissions when the vessel uses LPG as a marine fuel compared with conventional fuel oil, Astomos said. Japan currently imports 10mn t/yr of LPG to cover 12mn t/yr of domestic demand, according to the Japan LP Gas Association. By Reina Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Egypt’s Egas seeks LNG over October-December
Egypt’s Egas seeks LNG over October-December
Singapore, 6 September (Argus) — Egypt's state-owned gas firm Egas is seeking 20 spot cargoes for delivery over October-December through a tender that will close on 12 September. The firm is seeking 17 deliveries to Ain Sukhna, and three deliveries to Jordan's 3.8mn t/yr Aqaba import terminal. Egas was last in the market to seek up to five cargoes for delivery over August-September , through a tender that closed on 29 July. This tender was likely fully awarded at an average of a $1.50/mn Btu premium to the Dutch TTF, possibly to TotalEnergies, Gunvor and BP, traders said. Traders in mid-August estimated that Egypt would seek about eight to 15 spot cargoes for winter. Its latest requirement for 20 cargoes may indicate that the country's demand for imports is leaning towards the higher end. Egypt's appetite for spot cargoes is likely to remain, particularly as domestic gas production in the country has been falling. Gas production in Egypt fell to its lowest for seven years in June , the country's latest submission to the Joint Organisation Data Initiative (Jodi) show. At the same time, its pipeline gas deliveries from Israel have been hit with uncertainty since the start of the Israel-Gaza conflict. Pipeline deliveries from Israel to Egypt fell to 731mn m³ in June from 851mn m³ in May, having reached record highs earlier this year. LNG exports from Egypt this winter are "not very likely" , Italy's Eni said back on 26 July. By Rou Urn Lee Egas tender delivery windows Delivery to Ain Sukhna, Egypt Delivery to Aqaba, Jordan 4-5 October 2024 16-17 October 2024 9-10 October 2024 21-22 November 2024 14-15 October 2024 23-24 December 2024 19-20 October 2024 24-25 October 2024 29-30 October 2024 8-9 November 2024 13-14 November 2024 18-19 November 2024 23-24 November 2024 28-29 November 2024 3-4 December 2024 9-10 December 2024 15-16 December 2024 21-22 December 2024 27-28 December 2024 31 December 2024 - 1 Jan 2025 Source: Egas Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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