China boosts shale gas development

Spanish Market: Natural gas
31/07/20

China stepped up shale gas development last year, as the country looks to fall back on unconventional output to drive natural gas production growth.

Newly proved gas reserves fell by 2.7pc to 809bn m³ in 2019 from a year earlier after a larger increase the previous year.

Last year's reserve additions were mostly located in the Ordos and Sichuan basins in north and southwest China, the country's natural resources ministry (MNR) said.

Newly proved gas reserves rose by nearly 50pc to 831bn m³ in 2018 from 2017 levels.

But of 2019's incremental proved gas reserves, shale gas made up over 90pc of the total, rising more than fivefold to 764bn m³. This included PetroChina's Changning-Weiyuan and Taiyang as well as fellow state-controlled firm Sinopec's Yongchuan shale gas projects, all located in Sichuan.

China added 41pc more shale gas output, reaching 15.4bn m³ last year, the MNR said.

PetroChina, the biggest beneficiary of subsidies given to unconventional gas development, may add up to 4bn m³ of shale gas output this year to reach 12bn m³. Sinopec produced 6.3bn m³ last year, mainly from its Fuling project in Chongqing and analysts forecast output to reach 7.5bn m³ this year.

Development of coal-bed methane (CBM) had more disappointing results, according to the MNR. Newly proved reserves for CBM were down by 56pc to 6.4bn m³.

Beijing revised its subsidy scheme for unconventional gas last year to aid development of the sector.

The government last revised subsidies in 2015, when it decided to cut shale gas subsidies to 300 yuan/'000m³ ($43.80/'000m³) from 2016-18 and Yn200/'000m³ in 2019-20 compared with Yn400/'000m³ in 2012-15. The CBM subsidy was increased in 2016 to Yn300/'000m³ from 2016-20 from Yn200/'000m³ previously.

By Karen Teo

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17/11/24

Trump taps oil services head as US energy secretary

Washington, 17 November (Argus) — President-elect Donald Trump intends to nominate oil services company Liberty Energy's chief executive Chris Wright to lead the US Department of Energy (DOE), giving him oversight over LNG export facilities and a vast portfolio of federally-backed energy projects. Wright also will serve on Trump's planned Council of National Energy, which will oversee policies across the federal government affecting energy production, permitting, transportation and regulation. Trump said he wants Wright to work alongside North Dakota governor Doug Burgum, who Trump has nominated as US interior secretary, to oversee "the path to US ENERGY DOMINANCE" by cutting regulations and supporting investments from the private sector. "As Secretary of Energy, Chris will be a key leader, driving innovation, cutting red tape, and ushering in a new 'Golden Age of American Prosperity and Global Peace,'" Trump said. Liberty Energy, which was founded in 2011, focuses on hydraulic fracturing services and earned $1.2bn last year. Wright has downplayed the urgency for the world to address climate change or transition away from fossil fuels. He has criticized the use of phrases like "climate crisis" and "carbon pollution", which he says are impeding projects that could alleviate energy poverty. Those terms "are not only deceptive, they are in fact destructive deceptions," Wright said in a video he posted last year on YouTube. "Destructive because they drive centrist politicians and regulators to oppose life-critical infrastructure, like building pipelines and natural gas export terminals." If confirmed by the US Senate, Wright would be responsible for deciding how to resolve a "pause" on US LNG export licensing that President Joe Biden put in place in January. DOE has been studying whether allowing more gas exports would exacerbate climate change or hurt consumers by increasing domestic natural gas prices. The vast majority of DOE's budget goes to maintaining the US stockpile of nuclear weapons and cleaning up contaminated nuclear sites. DOE also manages the four facilities that make up the US Strategic Petroleum Reserve, which currently holds 387.8mn bl of crude, and oversees 17 national laboratories that are spread across the US. In the last four years, the US Congress substantially increased DOE's role in energy. DOE is currently managing billions of dollars in funds provided by the 2021 infrastructure law, such as an $8bn initiative meant to support "hydrogen hubs" and a $2.5bn carbon capture demonstration program. The Inflation Reduction Act expanded DOE authority to issue loans for clean energy projects by about $100bn. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Singapore bunker sales jump 19.5pc in October

14/11/24

Singapore bunker sales jump 19.5pc in October

Singapore, 14 November (Argus) — Bunker fuel demand at the port of Singapore rose by 19.5pc on the month to 4.8mn t in October, supported by stronger enquiries from shipowners. It takes total bunker consumption at the port to 45.3mn t in the first 10 months of the year, putting Singapore on course to break last year's record high sales of 51.8mn t. The latest statistics release from the Maritime and Port Authority of Singapore (MPA) show consumption of both conventional and alternative marine fuels rose strongly last month as more ships refuelled in Singapore. Bio-bunkers and B24 demand hit a new record monthly high of 116,200t, taking the total for January-October to 586,500t. Consumption has already exceeded last year's 518,000t, driven by shipping emissions compliance requirements set by the EU and IMO. Demand for B24 is expected to steadily rise in the coming months ahead of the implementation of the FuelEU regulations from January 2025. Demand for LNG as a marine fuel at the port of Singapore increased by 37pc from September to 50,600t in October, which was also a new record high for monthly consumption. "In general, we are seeing bigger enquiries in the last month or so," said a London-based trader. Sales of very low sulphur fuel oil (VLSFO) in Singapore rose by 11.8pc from September to 2.5mn t last month, while high-sulphur fuel oil (HSFO) consumption jumped by 11pc to 1.8mn t. By Mahua Chakravarty Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Bangladesh’s spot LNG purchases spike on power demand

14/11/24

Bangladesh’s spot LNG purchases spike on power demand

Mumbai, 14 November (Argus) — Spot LNG imports into Bangladesh have spiked just three months into the interim government of Muhammad Yunus. The interest upsurge is the largest seen so far, and is made more compelling particularly with spot prices well above $13/mn Btu, which has sidelined even key importers such as India and China. The rise in LNG imports comes on the back of Bangladesh's power market struggling to meet electricity supply owing to unpaid power bills under the previous prime minister Sheikh Hasina's government earlier this year. Bangladesh's power generation currently has stabilised after experiencing a sharp downturn in August when the former prime minister resigned. Maximum power generation so far this month stands at an average of 12.5GW, up by 6pc on the year (s ee graph ). Bangladesh's Rupantarita Prakritik Gas (RPGCL), operating under state-owned oil and gas firm Petrobangla, is the sole LNG importer in the country. The super-chilled fuel helps to meet over 50pc of the country's electricity requirement. RPGCL floated tenders for 23 LNG cargoes since September this year including multiple reissuances, compared with just eight cargoes floated over the same period last year. RPGCL floated tenders for a total of 27 cargoes in 2023, Argus data show. These tenders were mostly awarded to four suppliers — Singapore-based Vitol Asia, Gunvor Singapore, TotalEnergies and Excelerate Energy, despite having a list of 23 companies across the globe to import LNG from. Out of the 23 LNG tenders since September this year, only nine were awarded to these four firms except for one to Japan's Jera. Other tenders were withdrawn or reissued, possibly owing to insufficient offers, Argus data indicate. The firm recently invited expressions of interest (EOI) from sellers that wish to supply delivered LNG to Bangladesh to widen its pool of participants from which it may buy spot LNG. The move could be linked to new public procurement regulations imposed by the interim government that require RPGCL to receive a minimum of three offers before it is able to award its tenders. New vs old rules The Public Procurement Rules, 2008 (PPR-2008), were set out to ensure transparency, efficiency and fair competition in the procurement of goods, works or services using public funds. This deviates from RPGCL's previous practice of following a special power and energy law that had no mandatory provision on minimum participation in tenders, a company official told Argus last month. The previous government had enacted the Speedy Power and Energy Supply (Special) Act 2010 to operate without tendering, which was mainly an impunity act based on a provision that prevented the act to be challenged in court. The enactment of raising the EOI for the new seller list by the interim government is likely to stop any monopoly or preference for a particular LNG supplier in the country. While some of the RPGCL tenders have gone unawarded in recent months owing to insufficient offers, a few of the recent tenders were heard to be awarded despite attracting just two offers, in an attempt to implement the PPR-2008 rules, according to sources with knowledge of the matter. While it is still uncertain if RPGCL would be able to garner interest from more LNG sellers across the globe at a time when it is getting back on its feet to establish strong and transparent governance, it remains to be seen if more portfolio players would want to show their willingness to support a country that is likely to be hungry for gas for decades to come as their domestic production remains weak. Gas output Bangladesh's gas production including LNG stands at 2,868mn ft³/d (29.5bn m³/yr) as of 13 November, data from Petrobangla show. There was no figure available for the same period last year for comparison. Gas output in the country has been weak since the Covid pandemic, with output falling to up to 2,306mn ft³/d, lower by 5pc on the year, Petrobangla data show. The production volumes also include LNG supply, which could meet 54pc of the gas demand of the country in 2023 ( see table ). The interim government is heard to be addressing the most pressing issues in the country, particularly relating to the oil and gas exploration industry. Petrobangla has invited bids under Bangladesh Offshore Bidding Round 2024, offering a total of 24 blocks that include nine shallow-sea blocks and 15 deep-sea blocks with both oil and gas reserves. It has extended the deadline for bid submission to 9 December 2024, from 9 September 2024 previously. By Rituparna Ghosh, Rou Urn Lee and Naomi Ong Bangladesh natural gas (mn ft³/d) Natural gas 2018 2019 2020 2021 2023 Demand 3,852 3,996 4,163 4,214 4,274 Production(domestic+imported LNG) 2,712 2,669 2,722 2,414 2,306 Shortfall 1,140 1,327 1,441 1,800 1,968 — Bangladesh energy and mineral resource division Bangladesh power generation MW Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Argentina pulls delegation from Baku

13/11/24

Cop: Argentina pulls delegation from Baku

Montevideo, 13 November (Argus) — Argentina's government today withdrew its delegation from the UN Cop 29 climate summit in Baku, Azerbaijan. The country's foreign affairs ministry confirmed to Argus that the delegation had been told to leave the event, which began on 11 November and will run through 22 November. No reason was given for the decision, but it fits the general policies of President Javier Milei, who has expressed skepticism about climate change. Milei eliminated the country's environment ministry shortly after taking office in December 2023. He is also pursuing investment to monetize oil and gas reserves, with a focus on the Vaca Muerta unconventional formation. Vaca Muerta has an estimated 308 trillion cf of natural gas and 16bn bl of oil, according to the US Energy Information Administration. In October, the government created the Argentina LNG division with a plan to involve private companies and the state-owned YPF to produce and export up to 30mn metric tonnes (t)/yr of LNG by 2030. It wants to export 1mn bl of crude. The plans are closely linked to a new investment framework, known as RIGI, that will provide incentives for large-scale investments. The administration is also pushing hard for investment in critical minerals, including copper and lithium. Argentina has the world's second-largest lithium resources, estimated at 22mn t by the US Geological Survey. It has copper potential that the RIGI would help tap. The government has not specified if pulling out of Cop 29 means Argentina will withdraw from the Paris Agreement, which Argentina ratified in 2016. The country's nationally determined contribution calls for net emissions not to exceed 359mn t of CO2 by 2030. This represents a 21pc reduction of emissions from the maximum reached in 2007. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

No sign of peak in CO2 from fossil fuels: Report

13/11/24

No sign of peak in CO2 from fossil fuels: Report

London, 13 November (Argus) — Carbon emissions from fossil fuels are projected to hit a fresh record high of 37.4bn t in 2024, with "no sign" that these have peaked, a team of scientists said today in the 2024 Global Carbon Budget report. Total CO2 emissions are projected to reach 41.6bn t in 2024, up from 40.6bn t in 2023, which includes emissions of around 4.2bn t from land-use change, the report found. It also estimates the global carbon budget remaining before the 1.5°C temperature limit set out in the Paris climate agreement is "breached consistently over multiple years". The remaining carbon budget "has almost run out", the report found. There is a 50pc chance that warming will exceed 1.5°C above pre-industrial levels "consistently in about six years", the report found. There is uncertainty around the estimates, largely owed to the effects of other greenhouse gases (GHGs) such as methane and nitrous oxide, it noted. The Paris accord seeks to limit a rise in global temperature to "well below" 2°C above a pre-industrial average, and preferably to 1.5°C. This year is on track to be the hottest on record , the World Meteorological Organisation said on 11 November — the opening day of the UN Cop 29 climate summit in Baku, Azerbaijan. And drought conditions have helped to reverse a recent downward trend in CO2 emissions from land-use change — such as deforestation — in 2024. Those emissions are set to rise in 2024, after falling by 20pc in the past decade, the report found. Permanent CO2 removals from reforestation and planting new trees is "offsetting about half of the permanent deforestation emissions", it added. And the report authors noted that technology-based carbon removals — typically engineered, rather than nature-based — are at current levels only able to account for one-millionth of the CO2 emissions from fossil fuels. Projections for the highest-emitting countries — China, the US and India — are mixed. China's emissions are projected to increase by 0.2pc in 2024, although the report noted that the range means they could decrease. US emissions are set to drop by 0.6pc, while India's are projected to rise by 4.6pc this year. The Global Carbon Budget report — which will be peer-reviewed — is produced annually by an international team of more than 120 scientists. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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