France’s Montoir LNG restart delayed by pipeline works
Maintenance at France's 8mn t/yr Montoir LNG import terminal has been repeatedly delayed because of "technical difficulties" relating to the replacement of two sections of a pipeline at the terminal, operator Elengy told Argus.
The pipeline links the gas odorisation station and the GRTgaz grid injection station. Gas in France is odorised at all grid network levels, including transmission, rather than solely distribution networks. The works were completed last week, and the terminal is preparing for its cool-down phase, Elengy said.
The end of works has been delayed nine times, and is now scheduled to restart sendout on 21 August. The terminal has been off line since 15 June, and was initially set to resume sendout on 8 July.
Sendout from the terminal is nominated to average 154 GWh/d for 21-31 August, down from the 240 GWh/d nominated for the period on 19 August, according to Elengy data (see sendout graph). And one delivery for late August has been removed from the schedule (see stocks graph).
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Montoir LNG restart delayed by pipeline works: Update
Montoir LNG restart delayed by pipeline works: Update
Updates new sendout restart date in paragraph three to 23 August London, 20 August (Argus) — Maintenance at France's 8mn t/yr Montoir LNG import terminal has been repeatedly delayed because of "technical difficulties" relating to the replacement of two sections of a pipeline at the terminal, operator Elengy told Argus . The pipeline links the gas odorisation station and the GRTgaz grid injection station. Gas in France is odorised at all grid network levels, including transmission, rather than solely distribution networks. The works were completed last week, and the terminal is preparing for its cool-down phase, Elengy said. The end of works has been delayed 10 times , and sendout is now scheduled to restart on 23 August. Sendout was due to return on 21 August, according to Elengy nominations earlier today, although this was delayed again to 23 August later in the day. The terminal has been off line since 15 June, and was initially due to resume sendout on 8 July. Sendout from the terminal is nominated to average 154 GWh/d for 21-31 August, down from the 240 GWh/d nominated for the period on 19 August, according to Elengy data ( see sendout graph ). And one delivery for late August has been removed from the schedule ( see stocks graph ). By Martin Senior Montoir sendout nominations Montoir LNG stocks Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Operator takes reins of Kurdish gas field expansion
Operator takes reins of Kurdish gas field expansion
Dubai, 20 August (Argus) — The consortium that operates the Khor Mor gas field in Iraq's semi-autonomous Kurdistan region has issued a termination notice to the Canadian contractor it hired to increase production capacity. The Pearl Petroleum consortium issued the notice to Toronto-listed Enerflex on 19 August after "numerous performance issues" during the execution period of the $806mn engineering, procurement and construction (EPC) contract, according to consortium member Dana Gas. "The ongoing impact of these performance issues has materially affected Enerflex's ability to meet its contractual obligations, leading to unacceptable delays and hindering the progress and timely completion of the Khor Mor gas expansion project," Dana Gas said. Abu Dhabi-listed Dana Gas is one of five companies in the Pearl Petroleum consortium — the others are Sharjah-based Crescent Petroleum, Austria's OMV, Hungary's Mol and German utility RWE. Pearl Petroleum will now take direct control of the expansion project to ensure "it is brought back on track and completed in the timeliest manner", Dana Gas said. The project , which will boost capacity at Khor Mor by 250mn ft³/d to 750mn ft³/d, had been due to deliver first gas in April this year but missed that deadline. All of Khor Mor's gas production to date has been used for power generation in Iraq's Kurdish region, although the Kurdistan Regional Government (KRG) has toyed with the idea of exporting gas . "We will become a net exporter of gas to the rest of Iraq, Turkey and Europe in the near future," KRG prime minister Masrour Barzani said back in 2022, not long after Russia's invasion of Ukraine. As well as the delay to the capacity expansion project, these ambitions have been undermined by repeated drone attacks on Khor Mor in recent years, which often disrupt its production. No group has claimed responsibility for the attacks, but officials typically attribute them to pro-Iran groups within federal Iraq. Iraq has relied on gas import agreements with Iran for several years, and the two countries agreed on a new 50mn m³/d gas supply deal earlier this year. Washington has issued sanctions waivers to allow Iraq to import electricity and natural gas from Iran ever since former president Donald Trump's administration reimposed restrictions on Tehran's energy sector in 2018. Iraq relies on Iran for about a quarter of its energy needs, compared with 40pc three years ago, according to the US State Department. The US sees Iraq becoming self-sufficient in energy by 2030. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Indonesia reshuffles cabinet, names new energy minister
Indonesia reshuffles cabinet, names new energy minister
Singapore, 19 August (Argus) — Outgoing Indonesian president Joko Widodo has reshuffled the cabinet and replaced the country's energy minister today, just weeks before he is due to leave office. Bahlil Lahadalia will replace Arifin Tasrif as the minister of energy and mineral resources. Bahlil was previously Indonesia's minister of investment. Joko will remain in office until October, after which current defence minister Prabowo Subianto will take over. Prabowo claimed victory in the country's presidential elections in February. His running mate was Gibran Rakabuming Raka, Joko's son. It remains to be seen whether the change will affect the country's energy policy, but Bahlil said he would continue with the steps that Arifin has taken to increase oil lifting. Indonesia has so far remained firmly focused on fossil fuels, despite its net zero by 2060 target. The country is targeting oil production of 1mn b/d and gas production of 12bn ft³/d (123.6bn m³/yr) by 2030, and the energy and mineral resources ministry ESDM has in recent weeks announced strategies to achieve these ambitious targets . Some of these strategies involve increasing production from existing fields by reactivating 1,000-1,500 idle wells, increasing the recovery rate from existing wells, and accelerating new projects. But Prabowo in the run-up to the elections stated that he aims to reduce Indonesia's fossil fuel dependency , and for Indonesian state-owned utility PLN to increase the proportion of renewable energy in its power supply. Indonesia banned nickel exports from 1 January 2020 and bauxite exports from 2023, leading to a boom in its downstream processing industry . The country has since emerged as the world's top processed nickel supplier, adding an estimated 1.17mn t of production during 2021-23 , according to Australian bank Macquarie's research arm. The export ban has also led to an increase in Chinese investment in Indonesia's nickel sector, with the increasing concentration of Chinese-backed Indonesian supply emerging as a key challenge as the US and EU look to reduce their dependence on other countries for critical raw materials. But the increase in supply has pressured prices. French mining group Eramet and Germany-based global chemicals producer BASF announced in June that they are no longer pursuing investment in a nickel-cobalt refining complex in Weda Bay, Indonesia because of the downturn in prices. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Azerbaijan needs to pull its weight at Cop 29
Azerbaijan needs to pull its weight at Cop 29
London, 19 August (Argus) — Oil and gas producer Azerbaijan, which heads the Cop 29 UN talks, is expected to step up its climate ambitions and lead by example to help craft a critical finance deal. But it lacks the international profile of Cop 28 and Cop 30 hosts, the UAE and Brazil, respectively, its counterparts in the so-called troika. Azerbaijan has committed to reducing its net greenhouse gas emissions by 35pc against 1990 levels by 2030, and by 40pc by 2050. As in most post-Soviet states, emissions plummeted after independence in 1991, before rebounding with rising oil and gas output. In 2016, emissions stood at 54mn t of CO2 equivalent (CO2e), down from 79mn t CO2e in 1990 — so only modest reductions are necessary to reach Azerbaijan's mid-term target of 51.4mn t/yr. A commitment to absolute reductions places Azerbaijan in a minority among Cop parties. Only 37pc of the latest nationally determined contributions (NDCs) — or climate plans — make this pledge, the UN climate body UNFCCC said last year. And 46pc promise reductions compared with ‘business-as-usual' scenarios, which allow for increases in absolute emissions. Azerbaijan committed to having renewables accounting for 30pc of power capacity by 2030, up from about 15-17pc in the past decade. The ambition is laudable, but installing a relatively small amount — 1.5GW — of intermittent renewable capacity is unlikely to move the needle much on Azeri power-sector emissions. Cop parties last year pledged to triple global renewable capacity to 11TW by 2030. And the sector makes up only a small part of total Azeri emissions. As a troika member, Azerbaijan is expected to lead by example by setting more ambitious goals in its next NDC — due in 2025 — after Cop 28 called for a transition away from fossil fuels. The largest source of emissions is oil and gas production, which accounts for 90pc of the country's exports and a third of its GDP, according to the World Bank, which lists Azerbaijan among the countries that have most to lose from the effects of the transition. Leading from behind Some low-hanging fruit will allow Azerbaijan to reduce emissions in the sector for little cost. The country signed up to the Global Methane Pledge this year, committing to cut emissions by 30pc by 2030. These emissions have risen by 11pc since Azerbaijan last reported them in 2018, according to NGO Global Witness. Azerbaijan's role as an increasingly important gas supplier to the EU could constitute a strategic asset, allowing it to assert its weight at the talks, after the presidency fell into its lap last year when Russia vetoed other choices. It sent 12bn m³ of gas to the EU last year and a similar amount to Turkey and Georgia. Azeri president Ilham Aliyev has consistently highlighted the country's ambition to increase exports to the EU to 20bn m³ by 2027, while extolling the parallel pursuit of a "green agenda" . But while Europe's need for gas is more acute since the near-halt to Russian supplies in 2022, the easing of the energy crisis means that the continent is no longer quite so desperate to court alternative suppliers. Otherwise, Azerbaijan would appear to have few of the advantages possessed by other members of the troika, or holders of previous important Cops. It lacks the demographic heft and strong south-south diplomatic ties of Brazil, the wealth and regional influence of the UAE, and the institutional prestige and deep integration in regional blocs of France or the UK. Agreeing on a new finance goal for developing countries is key at this Cop. And Azerbaijan will need to put aside its regional and global disputes to push through solid commitments from donor countries if the talks are to be considered a success. By Rhys Talbot Azerbaijan's gross GHG emissions by sector, 2016 Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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