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Greece, North Macedonia sign deal for gas line

  • : Natural gas
  • 21/07/12

Greece and North Macedonia signed an agreement late last week for the construction of a gas pipeline between the two countries.

The new pipeline will run from Nea Mesimvria in Greece — where the 10bn m³/yr Tran's-Adriatic pipeline (Tap) meets the Greek grid — to the border city of Gevgelija in North Macedonia, and then to the city of Negotino, the Greek energy ministry said. The link is to have a capacity of 1.5bn m³/yr to North Macedonia in the first stage, with the possibility of a future expansion to 3bn m³/yr.

The project will contribute to "the improvement of security of supply and liquidity on the gas market", the North Macedonian economy ministry said.

The planned link could bring Azeri gas to the country, or regasified LNG from Greece's 3.6mn t/yr Revithoussa terminal or its planned 4.2mn t/yr Alexandroupolis terminal. This could reduce its dependence on Russian gas delivered through Bulgaria, which is its main supply source.

North Macedonia's state-owned company NER Skopje and utility ESM in March signed agreements with Gastrade, the developer and owner of Alexandroupolis, for co-operation in the terminal.

Studies have been carried out to allow the pipeline to also transport green hydrogen.

The line is expected to cost €110mn, of which €51.4mn will be invested by Greek system operator Desfa on the Greek side of the project.

Desfa told Argus in April that it expects construction on the new link to be completed by the end of 2023, although the operator added that a successful market test — planned for later this year — is a "necessary precondition" for the pipeline to be built.


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24/11/18

India cuts allocation to city gas firms again

India cuts allocation to city gas firms again

Delhi, 18 November (Argus) — The Indian government has reduced the domestic gas allocation to the city gas distribution sector by state-run distributor Gail, effective from 17 November. This is the second cut after they first slashed allocation by 20pc, or 4mn-5mn m³/d , last month. The cut for Delhi-based city gas entity Indraprastha Gas is a reduction of 20pc, for Mumbai-based Mahanagar Gas it is 18pc, and for privately owned Adani Total Gas it is 13pc, the firms' stock exchange filings stated over the weekend. The move would reduce the overall share of domestic gas allocation to city gas distributing companies to 30-37pc from 50pc last month and 70pc at the beginning of the year. City gas firms had received priority status for gas allotment over the past two years. "It is uncertain what could have re-instigated this cut, but this may translate into 6.5mn-7mn m³/d based on the different growth rates of city gas firms," Moody's affiliate ICRA senior vice-president Prashant Vashisht told Argus . City gas entities are mulling a hike in CNG rates and are heard to be in talks with the government over the policy changes. The government is yet to formally announce a statement over the cuts and is heard to be asking retailers to give a cost break-up to justify the hike, sources say. These cuts are mainly aimed at compressed natural gas (CNG) supply that has been receiving domestic gas allocation at a fixed price by the government of $6.5/mn btu under New Delhi's pricing mechanism — almost half the price that firms would pay for spot LNG. City gas firms are discussing the possibility of increasing CNG prices by Rs5-5.5/kg by the end of the year to preserve their margins. This would represent a 7pc increase compared with the average CNG price of Rs75.1/kg ($0.88/kg) against Rs94.77/litre of petrol in New Delhi. But the price hike may reduce CNG's competitiveness, hampering further development of the sector and limiting LNG demand growth. CNG vehicles have rapidly expanded their share of the Indian fleet, accounting for 14pc of all four-wheelers at present, up from 8pc three years earlier, data from the government's Vahan website show. The reduction in allocation is linked to reduced supply from conventional gas fields run by state-controlled upstream companies such as ONGC and Oil India. The sector received 27.8mn m³/d of domestic gas over April-September, including about 5mn m³/d of higher-priced supply from high-pressure, high-temperature fields, oil ministry data show. Allocation to the sector was largely unchanged during the same time last year. To bridge this shortfall, city gas firms are exploring options of sourcing gas through LNG , domestically produced high-pressure and high-temperature gas, production from ONGC's new wells, and long-term gas contracts. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Trump taps oil services head as US energy secretary


24/11/17
24/11/17

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


24/11/14
24/11/14

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


24/11/14
24/11/14

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


24/11/13
24/11/13

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.

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