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Data 'revolution' could accelerate methane abatement

  • Spanish Market: Coal, Crude oil, Emissions, Natural gas
  • 21/03/24

Measurement, reporting and verification (MRV) of methane emissions are the key building blocks to facilitate targeted emissions reductions in the coming years, participants at the UN-organised Global Methane Forum in Geneva heard this week.

Methane has contributed to 30pc of the rise in global temperatures since the beginning of the industrial revolution, according to the IEA. It is a far more potent greenhouse gas (GHG) than CO2.

The agency estimates that 40pc of man-made methane emissions have come from the energy sector, the second largest contributor after agriculture.

But difficulties in detecting them, as they vary between installations and cannot be calculated on the basis of fuel consumption as for CO2 emissions, have hindered progress so far.

Traditional inventories have been activity-based — taking estimated emissions factors of individual pieces of equipment and multiplying them by the numbers installed. But they are often significantly underestimated, according to researcher Matthew Johnson of Canada's Energy and Emissions Research Laboratory. "We all know emissions factors are wrong, but improving them is expensive and time-consuming," Jonathan Banks of environmental NGO the Clean Air Task Force said. And some firms may not even accurately inventory their equipment, leading to a second source of inaccuracy.

But greater attention given to the warming induced by methane has been accompanied by advances in monitoring technology. Satellite monitoring tools allow for external measurement and verification of methane emissions. And the arrival of new satellites in the coming years will mean more extensive top-down measurements, in what several speakers hailed as a "revolution".

These include MethaneSat, a detecting satellite funded by American NGO the Environmental Defense Fund (EDF) and the New Zealand Space Agency and launched earlier this month.

The satellite will measure emissions across 48 hydrocarbon production basins. Existing methane-detection satellites typically either measure emissions from point sources or over very large areas. MethaneSat's capabilities will fall between these two extremes, according to Flavia Sollazzo, senior director at the EDF, allowing for the creation of much more comprehensive emissions inventories from the oil and gas sector, starting from the end of this year or beginning of 2025.

Measures to coordinate sharing and verifying the collected data are also taking shape. A working group formed of 20 jurisdictions including major producers and consumers such as the US and the EU is aiming to set a framework for international reporting and verification of methane emissions by mid-2025.

But some speakers emphasised that firms and countries can act to curb emissions even without having a complete picture. Some interventions can be as simple as changing working practices to ensure valves remain closed.

UNFCCC chair of Article 6.4 supervisory body Olga Gassan-Zade pointed out that abatement may be difficult for NOCs with more limited financial and technical capacity in countries such as Libya, Iraq and Angola. And the incentive to carry out projects could be reduced by the internal price of gas set by governments, which may make interventions appear uneconomic.

There are few "big wins" allowing for large cost savings on the back of reduced methane emissions, Gassan-Zade said, and negative-cost abatement is "often a myth", contrary to the claims of the IEA.

And financial institutions retreating from oil and gas projects could complicate efforts to fund methane abatement projects in the sector, some delegates said.

IEA chief economist Tim Gould said that 2024 could be a "breakthrough" year for methane emissions reductions. But there is as yet no hard evidence that overall methane emissions from the energy sector are falling, he said.


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26/07/24

US Treasury, Brazil agree on climate pact

US Treasury, Brazil agree on climate pact

Sao Paulo, 26 July (Argus) — The US Treasury and Brazil's finance ministry will work together on a climate agenda, the countries said during a G20 working group meeting in Rio de Janeiro. The pact will focus on four fronts: bolstering clean energy supply chains, including developing policy tools to attract private sector investment; supporting efforts to improve voluntary carbon markets; securing financing and developing "innovative solutions" to conserve and restore nature and biodiversity, including through the multilateral development banks and climate funds; and facilitating countries' access to multilateral climate funds resources. The partnership was announced on Friday by both Brazil's finance minister Fernando Haddad and US Treasury Secretary Janet Yellen. "Advancing work on climate and on nature and biodiversity can bring benefits not only to both of our economies but also to the region and to the global economy," Yellen said. Haddad added that the two countries "want to work together more closely." The G20 — which is presided by Brazil this year — is holding this week the finance leaders' meeting. The group announced on Thursday a new fund to finance sustainability programs in the Amazon rainforest. This is also not the first time the G20 has discussedbe easing access to climate funds. A working group said in May that both countries and individual cities' access to such resources needs to be easier. The G20 announced other joint agreements this week, including the taxation of large fortunes and efforts to reduce inequality, poverty and world hunger. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazilian banks, IDB plan new Amazon fund


26/07/24
26/07/24

Brazilian banks, IDB plan new Amazon fund

Sao Paulo, 26 July (Argus) — Brazil's three state-owned banks — Caixa, Banco do Brasil and development bank Bndes — and the Inter-American Development Bank (IDB) are planning to launch a new fund to finance sustainability programs in the Amazon forest, they said on Thursday. The plan is to establish an Exchange Traded Fund — to be called ETF Amazon For All — and distribute quotas before the UN Cop 30 climate summit, which will be held in Brazil's Para state, near the mouth of the Amazon, in November 2025. The fund's investment portfolio will be made up of fixed-income securities issued by the three Brazilian banks. The return offered to investors will be based on a reference index to be created. All the funds raised by the three institutions will be allocated to loans for sustainable projects in the Amazon. "This cooperation, aimed at joining efforts in favor of the Amazon's sustainable development and based on an innovative instrument in the Brazilian capital market, reinforces Bndes' commitment to the Cop 30 agenda," the bank's president Aloizio Mercadante said. The fund is "another step towards ensuring that the Amazon" lasts forever, IDB's president Ilan Goldfajn said. The announcement was made during a G20 meeting attended by finance ministers and central bank presidents in Rio de Janeiro this week. Brazil is presiding over G20 this year. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Eni confident on 2024 output, but Libya project slips


26/07/24
26/07/24

Eni confident on 2024 output, but Libya project slips

London, 26 July (Argus) — Executives at Italy's Eni are confident it will achieve the upper end of its 1.69mn-1.71mn production guidance for this year, but start-up of a key Libyan project is set to slip from 2026 into 2027. In a presentation of second-quarter earnings today, A&E Structure was one of two Libyan projects on a list of Eni's upcoming start-ups through to 2028 that will deliver some 740,000 b/d of oil equivalent (boe/d) of net production to the company. A&E Structure is a 160,000 boe/d gas development that will include some 40,000 b/d of liquids production, mainly condensate. A&E Structure is central to Libya's ability to sustain gas exports to Italy, which have dropped in recent years on a combination of rising domestic consumption and falling production. Supplies through the 775mn ft³/d Greenstream pipeline hit their lowest since the 2011 revolution in 2023, averaging 250mn ft³/d. The slide has continued since, with year-to-date volumes of around 160mn ft³/d on track for a record low. Eni's other upcoming Libyan project — the Bouri Gas Utilisation Project development that aims to capture 85mn ft³/d of gas at the 25,000 b/d offshore Bouri oil field — had already been pushed back from 2025 to 2026. For 2024 Eni expects to be "at the upper boundary of its guidance", according to chief operating officer of Natural Resources Guido Brusco. The company had a strong first half, during which output was 1.73mn boe/d — 5pc up on the year — thanks to good performance at assets in Ivory Coast, Indonesia, Congo (Brazzaville) and Libya. Brusco said Eni is in the process of starting up its 30,000 boe/d Cassiopea gas project in Italy, with first production expected next month, and the 45,000 b/d second phase of the Baleine oil project in Ivory Coast is expected to start by the end of this year. At Baleine, Brusco confirmed the two vessels to be used at phase two "will be in country in September and, building on the experience of phase one, we expect a couple of months of final integrated commissioning" before first oil. Eni also said today it would raise its dividend for 2024 by 6pc over 2023 to €1/share, and confirmed share repurchases this year of €1.6bn. It said there is potential for an additional buyback of up to €500mn, which is being evaluated this quarter. Eni's debt gearing is scheduled to fall below 20pc by the end of the year. Chief financial officer Francesco Gattei said these accelerated share buybacks would be possible if divestment deals are confirmed. By Jon Mainwaring and Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Ichthys LNG to restart liquefaction train


26/07/24
26/07/24

Australia’s Ichthys LNG to restart liquefaction train

Singapore, 26 July (Argus) — The second liquefaction train at Australia's 9.3mn t/yr Ichthys LNG export terminal plans to resume partial operations today, after going off line unexpectedly during 18-19 July, according to traders. The export facility is operated by Japanese upstream firm Inpex. Repairs at the affected train could take up to a month before it returns to full production, although the train is expected to restart by this weekend, according to market participants. Attempts to restart train two could take place by 26 July. Some delays to deliveries from the facility are expected, although there are also unconfirmed reports that up to two cargoes may have already been cancelled at the time of writing. The overall impact on the market is likely to be limited for now, with continuing weak spot demand from northeast Asian importers. Some term buyers previously requested for their deliveries to be deferred, traders said, although it is unclear just how many requests for deferment were received. But other participants have pointed out that the winter restocking season could soon start and any further impediments to train two's restart could lift prices. Recent temperatures in Japan have been higher than expected, with at least a 70pc probability of above-normal temperatures over the vast majority of the country until 23 August, according to the latest forecast issued by the Japan Meteorological Agency on 25 July. At least one Japanese utility may be considering spot purchases for August, owing to higher-than-expected power consumption because of warmer temperatures. But at least two other Japanese firms could be looking to sell a September and an October cargo each, traders said, which could indicate that the spot market is still sufficiently well-supplied to cope with additional demand from Japanese utilities. The 174,000m³ Grace Freesia departed from Ichthys on 25 July after loading an LNG cargo, according to ship tracking data from Kpler. The export terminal sold a spot cargo for loading over 2-6 June at around high-$9s/mn Btu through a tender that closed on 10 May, but further details are unclear. The US' 17.3mn t/yr Freeport export terminal also faced issues restarting since it was first taken off line on 7 July as a precautionary measure against Hurricane Beryl. The terminal loaded its first cargo on 21 July . All three trains are likely to be back on line as of 26 July, although production at the facility should still be closely monitored, traders said. By Naomi Ong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Empire Energy signs deal to sell gas to NT


26/07/24
26/07/24

Australia’s Empire Energy signs deal to sell gas to NT

Adelaide, 26 July (Argus) — Australian independent Empire Energy has signed an agreement to supply the Northern Territory (NT) with gas from its Carpentaria project in the onshore Beetaloo subbasin. Empire will supply NT with up to 25 TJ/d (668,000 m³/d) of gas over 10 years, starting from mid-2025. This equates to an estimated total supply of 75PJ (2bn m3) of gas. The deal includes scope for an additional 10 TJ/d for up to 10 years if production level at the Carpentaria plant exceeds 100 TJ/d. The firm bought domestic utility AGL Energy's dormant 42 TJ/d Rosalind Park gas plant late last yearwith plans to reassemble the facility on site at Carpentaria, subject to a final investment decision on the project. Gas will be delivered to the NT government-owned Power and Water (PWC) via the McArthur River gas pipeline on an ex-field take-or-pay basis, Empire said on 26 July. PWC in April signed an agreement to buy 8.6PJ of gas from Australian independent Central Petroleum , to supply gas-fired power generation and private-sector customers. Low production at Italian energy firm Eni's Blacktip field, offshore the NT, has led PWC to court new supply while providing a new outlet for prospective producers operating within Beetaloo. The largest Beetaloo acreage holder, Tamboran Resources, has revealed ambitious plans for a 6.6mn t/yr LNG plant to be located near Darwin Harbour's two existing LNG projects, using the basin's shale gas resources as feedstock. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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