Australia’s Mereenie JV signs gas supply deal with NT

Spanish Market: Electricity, Natural gas
29/07/24

The joint venture (JV) partners at Mereenie, the Northern Territory's (NT's) largest onshore operating gas field, have entered a six-year deal to supply the NT government from 1 January 2025.

The 40.5PJ (1.08bn m³) take-or-pay gas sales agreement (GSA) mitigates the risk incurred by closures to the 90 TJ/d (2.4mn m³/d) Northern gas pipeline (NGP). It does this by contracting all firm production capacity and expanding by up to 16 TJ/d on any day in 2025 when the NGP is unable to deliver to the east coast network, operator Australian independent Central Petroleum said on 29 July.

The GSA underwrites the JV's potential investment in two new production wells at Mereenie, said Central, which holds a 25pc stake, by increasing firm sales to the NT by up to 6 TJ/d.

The NT is dependent on gas-fired power supply but supply problems at Italian oil firm Eni's offshore Blacktip field led it to signing a GSA with Mereenie for 2024 supply earlier this year.

The issues at Blacktip resulted in the NGP ceasing flows in early February, cutting Mereenie off from its customers.

The NT this week also signed a GSA with Australian independent Empire Energy for supply from the proposed 25 TJ/d Carpentaria project in the onshore Beetaloo subbasin.

A unit of Australia's Macquarie Bank owns 50pc of Mereenie, located in the Amadeus basin, with upstream firm New Zealand Oil and Gas holding 17.5pc and the remaining 7.5pc is owned by Australian independent Cue Energy.

By Tom Major

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12/11/24

Finnish, Baltic gas demand falls on year in October

London, 12 November (Argus) — Aggregate Finnish and Baltic gas consumption dropped by nearly 24pc on the year in October, but still reached a six-month high as the heating season began. Combined demand in Finland, Estonia, Latvia and Lithuania last month rose to 3.19TWh from 2.61TWh in September , in line with the typical seasonal progression, but was well below the 4.18TWh consumed a year earlier and the average of roughly 5.2TWh in 2018-21 ( see consumption graph, data and download ). Demand in all four individual countries was lower on the year, with the biggest drop in Lithuania, where consumption fell by more than 600GWh. In October 2023, the region's biggest consumer Achema had briefly resumed full production at both of its ammonia production units at Jonava , boosting Lithuanian demand that month. Despite the year-on-year drop, this was the fifth consecutive month-on-month increase after demand hit a near two-year low in May. Cumulative demand in the first 10 months of the year totalled 35TWh, well up from 30.3TWh a year earlier. That said, strong demand in the first quarter when the region experienced a prolonged cold snap supported a slightly skewed figure. If only considering April-October, demand of 18.5TWh was slightly below last year's 18.9TWh and well under the 30TWh average in 2018-21. This may indicate a more structural decline in the region's gas demand, particularly with power-sector demand falling as higher nuclear and renewables output cuts into the room left available for gas in the generation stack. Gas-fired power generation in the four countries totalled 186GWh last month, Fraunhofer ISE data show. This was well below 307GWh in October 2023, and the second lowest for any October since at least 2018 ( see gas-fired power graph ). Gas-fired output was lower on the year in all four countries, with roughly 40GWh drops in Lithuania, Finland and Latvia. Onshore wind production in Finland, by far the region's largest overall power producer, jumped by more than 1TWh on the year, more than offsetting lower nuclear and hydro output. This allowed Finland to net export around 150GWh of power, having net imported nearly 300GWh in October 2023, according to Fraunhofer data. Prices on the regional GET Baltic exchange averaged €41.74/MWh in October, up by 3pc on the month but 18pc down on the year. The price on the exchange "increasingly correlates with" the TTF, a correlation that will likely strengthen as GET Baltic trading migrates to the larger EEX platform next year , chief executive Giedre Kurme said. This transition will "create opportunities for competition, more liquid trading and price convergence", and "we are already seeing increased interest from international participants in the Baltic-Finland region", Kurme said. Firms traded 708GWh on the exchange in October, the most for any month since February, and all transactions were on the daily market. The joint Latvian-Estonian market accounted for 43pc of total trades, followed by Lithuania at 31pc and Finland at 26pc, GET Baltic said. Maintenance continues to limit Finnish LNG sendout Extensive maintenance on the Balticconnector pipeline this month, which makes all southbound capacity from Finland towards Estonia unavailable, continues to limit sendout from Finland's Inkoo LNG terminal. After maintenance on the 14-27 October gas days took exit capacity towards Estonia fully off line, this capacity is again unavailable because of further maintenance on 4-17 November. Without southward pipeline capacity, sendout from Inkoo must fall to levels that only the domestic market can absorb. Inkoo received the 145,000m³ Arctic Princess just before the maintenance started on 3 November, and the next scheduled delivery is not until 28 November ( see LNG data and download ). Sendout is likely to remain low even after the end of maintenance so as not to fully deplete stocks before the next arrival. Sendout from Inkoo averaged 23 GWh/d on 4-11 November. In contrast, sendout from Lithuania's Klaipeda terminal has jumped to 104 GWh/d this month, helping to plug the Baltic supply gap left by no southward inflows from Finland. Sendout from Klaipeda has been higher this month than the 85 GWh/d in October and 80 GWh/d on 1-11 October last year. Klaipeda has already received two cargoes this month, on 4 and 12 November, and will receive a further two on 21 and 29 November, the terminal's schedule shows. This suggests that sendout is likely to remain brisk for the rest of this month, helping to meet higher regional demand as the weather turns colder and limits the need for strong withdrawals from storage early in the winter season. By Brendan A'Hearn FinBalt gas consumption by country GWh Gas-fired power generation by country GWh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: UK sets ambitious 2035 climate target

12/11/24

Cop: UK sets ambitious 2035 climate target

London, 12 November (Argus) — The UK government has set a target to cut all greenhouse gas (GHG) emissions by at least 81pc by 2035, from a 1990 baseline, the country's prime minister Keir Starmer said today at the UN Cop 29 climate summit in Baku, Azerbaijan. The target, which will form the basis of the UK's next national climate plan, is in line with recent recommendations from the independent advisory Climate Change Committee . Energy minister Ed Miliband sought the committee's guidance shortly after the Labour government was elected in July. Starmer urged all countries to come forward with new national climate plans — known as nationally determined contributions (NDCs) — at Cop 29. Details of the UK's new NDC are not yet clear, but Starmer said his government is "fully committed" to its pledge of zero-emissions power by 2030. He also repeated his promise for a "government that trod lightly on people's lives". "The UK is stepping up as a climate frontrunner at a time when such leadership is critically needed, co-founder of think-tank E3G Nick Mabey said. "We hope to see detailed implementation plans — ideally with sectoral commitments and a supporting investment roadmap — to lend credibility to its submission." The energy transition "is a huge opportunity", Starmer said, pointing to global appetite for renewables investment. And he noted the "advantage of being a first mover". The country's Labour government, elected in July, has diverged substantially from the previous administration on climate issues. The UK government today announced a "clean industry bonus" — a provisional £27mn ($34.6mn) per GW of offshore wind, to incentivise offshore wind developers to invest in industrial areas, many of which are rooted in the oil and gas industry. This will boost "green jobs" and support sustainable industry, the government said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Azerbaijan president criticises ‘petrostate’ label

12/11/24

Cop: Azerbaijan president criticises ‘petrostate’ label

Edinburgh, 12 November (Argus) — Azeri president Ilham Aliyev remonstrated a room packed with world leaders at the UN Cop 29 summit in Baku about calling his country a "petrostate", given its small share of global oil and gas production. He said that it was "not fair" to label Azerbaijan a "petrostate", adding that it might have been "acceptable" when the country produced more than half of global oil output in the 19th century. He said the country accounts for 0.7pc of global oil production and 0.9pc of global gas production today. He also said that Azerbaijan's share of global greenhouse gas emissions is only 0.1pc. Azerbaijan's oil output reached 480,000 b/d in October. "Right after Azerbaijan was elected as a host country of Cop 29 we became a target of co-ordinated, well-orchestrated campaign of slander and blackmail," he said. The Azeri president reiterated that oil and gas is a "gift of god" and that countries rich in natural resources should not be blamed for bringing them to the markets as they are needed. He pointed out again that eight of the 10 countries that are supplied with Azeri gas are in Europe and that the EU asked Azerbaijan to double its gas supply to the bloc by 2027. Natural gas output in Azerbaijan reached a new high of 132mn m³/d in 2023, and the country aims to increase it further. Upping exports to the EU to 20bn m³/yr by 2027, from the current 12bn m³/yr, has been a key government commitment since 2022, when Europe was desperate for alternative gas suppliers. The UAE, Azerbaijan and Brazil — the Cop presidencies Troika — face scrutiny for pushing for increased global climate ambitions, but at the same time seemingly avoiding the question of fossil fuels in relation to their own new climate targets. The Troika countries look at fossil fuels through the lens of their own national circumstances — with their economies being heavily reliant on them. Azerbaijan's increasing gas exports spurred an economic boom, with GDP increasing tenfold over 2003-13. "As a president of Cop 29, I will be a strong advocate for the green transition, but at the same time we must be realistic," he said. He listed green projects in Azerbaijan, either in the pipeline or already operating, including an agreement to be signed at Cop 29 with BP to build a 240MW solar power station. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: UN chief reiterates economic force of transition

12/11/24

Cop: UN chief reiterates economic force of transition

London, 12 November (Argus) — "Doubling down on fossil fuels is absurd", given that solar and wind power are the cheapest forms of new electricity, UN secretary-general Antonio Guterres told the UN Cop 29 climate summit in Baku, Azerbaijan today. The "economic imperative is clearer and more compelling — with every renewables roll out, every innovation, and every price drop", Guterres added. Global investment in renewables and grids last year overtook the amount spent on fossil fuels for the first time, he noted. "The clean energy revolution is here. No group, no business and no government can stop it," Guterres said. Guterres and Simon Stiell, head of the UNFCCC — the UN's climate body — today both gestured to geopolitical challenges. Cop 29 is focused on climate finance — already a fraught topic — and environmental groups have expressed concern about the impact on climate action of Donald Trump's re-election . The UNFCCC process "is strong, it's robust and it will endure", Stiell said today. Guterres and Stiell also emphasised the financial implications of failing to cut emissions or address climate change. "The climate crisis is fast becoming an economy-killer", Stiell said. "Unless all countries can slash emissions deeply, every country and every household will be hammered even harder than they currently are," he added. The G20 group of countries should lead on emissions reduction, Guterres said. And both he — warning against "a tale of two transitions" — and Stiell called for action on climate finance. Countries must decide at Cop 29 on the next stage of a climate finance goal. Developed countries agreed to deliver $100bn/yr to developing countries over 2020-25, but agreement is yet to be reached on the next iteration. Guterres called for more concessional public finance, higher lending capacity for multilateral development banks (MDBs), greater transparency, and for "tapping innovative sources, particularly levies on shipping, aviation, and fossil fuel extraction. Polluters must pay", he said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

IAEA chief sees ‘good sign’ ahead of Iran visit

12/11/24

IAEA chief sees ‘good sign’ ahead of Iran visit

Baku, 12 November (Argus) — The director general of the UN nuclear watchdog, the International Atomic Energy Agency (IAEA), said today that he has seen good signs from the new Iranian administration ahead of his visit to the Iranian capital on 13 November. Speaking to reporters in Baku, Rafael Grossi said he and his colleagues at the IAEA are looking forward to what he described as "a very important visit" with the aim of "re-establishing contact" with the Iranian authorities. The visit will be Grossi's first to Iran since Iranian President Masoud Pezeshkian took office in late July, and comes at a time of increased tensions in the Middle East region. Israel's offensive against Gaza-based militia group Hamas that was triggered by the group's deadly 7 October 2023 cross-border attack on Israel has since expanded into Lebanon and, to an extent, drawn Iran into the fray, with Tehran and Tel Aviv having now traded missile strikes twice in recent months. Israel's latest strike in October has raised fears that Iran could respond not only in kind, but also by speeding up its work to enrich uranium and move the country ever closer to possessing weapons-grade nuclear material. This is despite Iranian officials, not least Iran's supreme leader Ayatollah Ali Khamenei, insisting that Iran has no intention of building or possessing nuclear weapons. "We are looking forward to that [meeting]. It's high time we establish or re-establish contact with the government," Grossi said. "We have been preparing for this meeting for quite a long time." Grossi said he saw it as "a good sign" that the new Iranian administration is showing "a disposition to talk." "Of course, we have to give content and meaning to the conversations. But I am encouraged by the fact that we seem to be having a good agenda in front of us." Damage limitation The meeting comes after the IAEA's board of governors in June passed a resolution calling on Iran to step up its co-operation with the agency, and reverse a decision to restrict access to nuclear sites by de-designating inspectors. Tehran at the time rejected that resolution as "politically biased", prompting a swift denial from Grossi , saying that the agency does not adhere to an "anti-Iran policy". Asked today whether Donald Trump's election victory last week could impact relations with Iran, Grossi admitted that while it will "undoubtedly" have an influence, he expected that the incoming administration would work well with the IAEA, as was the case during Trump's first term. "We will adjust to that," Grossi said. A diplomatic source with knowledge of the situation described the ongoing tensions in the Mideast Gulf region as "out of control," and said they are hopeful Grossi's visit to the Iranian capital will help "keep a lid on the situation" and help to find some badly-needed "solutions". If Grossi achieves what he set out to do on this visit, it could lay the groundwork for any co-operation that the agency may have with the new administration around how best to deal with the Iranian nuclear threat, the source said. By Bachar Halabi and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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