Western Australia releases oil, gas exploration acreage

: Crude oil, Natural gas
23/10/20

Western Australia (WA) state has released eight onshore blocks for oil and gas exploration, ahead of an expected rise in demand for gas during the next decade.

The areas open for bidding are located across the Canning, northern Carnarvon, Amadeus and Perth basins and vary in size from 400km² to 7,070km². Successful applicants are to be granted a conventional exploration permit within the specified title for a period of six years. The application period closes on 19 January next year.

WA is forecast to have a tight domestic gas market during the coming decade, with demand tipped to increase from 1,099 TJ/d (29.35mn m³/d) in 2023 to 1,278 TJ/d in 2032.

The state bans the export of most onshore gas as LNG despite calls from lobbyists for greater access to international markets, which it argues will reduce the domestic price required for fields to become commercial and improve access to financing.

WA plans to shut down its coal-fired power plants by 2030 and rely more heavily on renewables, gas and battery energy storage systems. Gas currently supplies about 38pc of WA's main grid, the South West Interconnected System.

The granting of federal government-administered offshore permits has slumped. Only four federal offshore petroleum exploration permits were awarded in 2022, three from the 2020 round of acreage release and one from 2019, down from 13 in 2019.

A Federal Court ruling in 2022 has complicated offshore development, with a new mandatory cultural heritage consultation requirement prompting upstream sector leaders to demand the federal government step in to clarify the laws.

By Tom Major

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24/12/18

India’s AMNS in talks to build Suvali LNG terminal

Mumbai, 18 December (Argus) — Indian steel manufacturer ArcelorMittal Nippon Steel (AMNS) is in advanced talks to build a 5mn t/yr LNG import terminal at Suvali, Surat city, in India's western state of Gujarat, a source close to the matter told Argus . The terminal will be part of its plan to build a new captive port at Suvali which would handle 60mn t of bulk cargoes and finished goods, the source added. The firm has yet to announce the timeline for the terminal and the port. It received environmental clearance in 2023. The LNG terminal is being built in response to higher regasification charges, pipeline tariffs and storage fares at Shell's 5mn t/yr Hazira facility, the source said. Shell's 5mn t/yr LNG terminal charges one of the highest regasification rates in the world at $0.75/mn Btu, industry sources said. The Suvali terminal will be located 10km from Shell's 5mn t/yr Hazira LNG terminal. AMNS has reduced its imports to Hazira terminal with no deliveries in 2023 and 2024 compared with 12 cargoes totalling 820,483t received in 2022, data from market intelligence firm Kpler show. The firm only received nine LNG cargoes at Dahej this year totalling 596,000t, Kpler data show. AMNS has largely stopped using Shell's Hazira terminal, only using one slot in 2024 as compared to around 10-16 slots every year previously, the source said. Petronet's 17.5mn t/yr Dahej import terminal provides more than 30 days of free storage, while Hazira provides only 16 days, the source added. A slot refers to utilisation of an LNG cargo from its evacuation to regasification facility. AMNS is likely to invest a total of $1.95bn to build the Suvali terminal. It will have two LNG storage tanks, a sea-water based regasification unit, pumps and cryogenic piping with pipelines to supply regasified LNG to AMNS' 9mn t/yr crude steel plant. The terminal will be designed to handle LNG carriers with capacities of 20,000-26,5000m³, the source added. But it remains to be seen if this will materialise as it will be in competition with several LNG terminals in close proximity, including GSPC's 5mn t/yr Mundra LNG terminal and HPCL's upcoming 5mn t/yr Chhara LNG terminal in Gujarat. Further terminal plans Adani Ports and Special Economic Zone (APSEZ) also has plans to expand the capacity of its Hazira port and may even consider setting up an LNG facility as the port currently handles bulk cargoes, liquid chemicals, and oil products. India currently has seven operational LNG terminals with a combined capacity of 47.7mn t/yr, with the highest utilisation in Petronet at 103pc during April-October, followed by Shell's Hazira at 44pc. Utilisation in other terminals remains in a nominal range of 20-35pc, an oil ministry report shows. This is due to lack of a breakwater facility or weak pipeline connectivity from terminals to end users. India's state-controlled gas distributor Gail has bought a total of 25 slots equating to 1.5mn t/yr of LNG at Shell's Hazira LNG terminal for 2025, prompting speculation that its 5mn t/yr Dabhol LNG terminal might not be operational for the whole of next year, another source told Argus . Gail was planning to operate the Dabhol LNG facility at full capacity throughout the year from 2025 as it has resumed construction on its breakwater facility after a monsoon this year, director of finance Rakesh Kumar Jain said in an investor call on 31 July. The construction of the breakwater facility has been delayed since 2022 because of conflicts with local communities. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US funding bill to allow year-round E15 sales

24/12/18

US funding bill to allow year-round E15 sales

Washington, 17 December (Argus) — A stopgap government funding measure that leaders in the US House of Representatives unveiled late Tuesday would authorize year-round nationwide sales of 15pc ethanol gasoline (E15) and offer short-term biofuel blending relief to some small refiners. The 1,547-page bill, which is set for a vote in the coming days, is needed to avoid a government shutdown that would otherwise begin on Saturday. The bill would fund the government through 14 March and extend key expiring programs, such as agricultural support from the farm bill. It would also provide billions of dollars in disaster relief and pay the full cost of rebuilding the Francis Scott Key bridge in Maryland, which collapsed earlier this year after being hit by a containership. The inclusion of the E15 language, based on a bill by US senator Deb Fischer (R-Nebraska), marks a major win for ethanol producers and farm state lawmakers who have spent years lobbying to permanently allow year-round E15 sales. The bill would also provide short-term relief to some small refiners under the Renewable Fuel Standard that retired renewable identification numbers (RINs) in 2016-18 in cases when their requests for "hardship" waivers remained pending for years. The bill would return some of those RINs to the small refiners and make them eligible for compliance in future years. E15 was historically unavailable year-round because of language in the Clean Air Act that imposes more stringent fuel volatility requirements during summer months. In president-elect Donald Trump's first term, regulators began to allow year-round E15 sales by extending a waiver available for 10pc ethanol gasoline (E10), but a federal court in 2021 struck that down . Federal regulators have issued emergency waivers retaining year-round E15 sales over the last three summers. Enacting the stopgap funding bill would also make it unnecessary for eight states to follow through with a costly gasoline blendstock reformulation — set to begin as early as next summer — they had requested as a way to retain year-round E15 sales in the midcontinent . Oil industry groups last month petitioned EPA to delay the fuel reformulation until after the 2025 summer driving season, citing concerns about inadequate fuel supply and the prospects that a legislative fix would make required infrastructure changes unnecessary. Ethanol groups say the E15 legislative change could pave the way for retailers to more widely offer the high-ethanol fuel blend, which is currently available at 3,400 retail stations and last summer was about 10-30¢/USG cheaper than 10pc ethanol gasoline (E10). Offering the fuel year-round would be "an early Christmas present to American drivers," ethanol industry group Growth Energy chief executive Emily Skor said. House speaker Mike Johnson (R-Louisiana) has faced blowback from many Republicans in his caucus for negotiating such a sprawling bill that has tens of billions of dollars in new spending, after vowing to buck a practice of preparing a "Christmas tree bill" that forces lawmakers to vote on a must-pass bill right before the holidays. Johnson said today the bill remains a "small" funding bill, but that it needed to expand because of "things that were out of our control" such as hurricanes and economic aid for farmers. The Republican backlash could make it more difficult for Johnson to pass the bill, but Democrats are expected to provide broad support. By Payne Williams and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

LNG dual-fuel vessels best suited for FuelEU: Study

24/12/17

LNG dual-fuel vessels best suited for FuelEU: Study

Sao Paulo, 17 December (Argus) — LNG dual-fuel vessels are the lowest cost option among fossil fuels for shipowners to meet new EU and International Maritime Organization (IMO) decarbonisation regulations, according to industry coalition SEA-LNG. The analysis simulated expenses for a single 14,000 twenty-foot equivalent unit (TEU) vessel and for an eight-vessel fleet of the same size operating the Rotterdam–Singapore trade route from 2025-2040. It compared the expenses for LNG, ammonia and methanol fuel families, but did not consider liquid biofuels and bio-oils because SEA-LNG sees the availability for those as still limited and the cost-benefit unfeasible in the short term. For a single ship, LNG is able to comply with the FuelEU Maritime rules until 2039 in its fossil form. Green fuels like liquefied biomethane are only needed for compliance from 2040 onwards. For an eight-vessel dual-fuel fleet, the overall cost of compliance with LNG will be $5mn-17mn/yr lower than with methanol and ammonia. According to the research, ammonia and methanol dual-fuel vessels are likely to need more expensive green fuels to comply with FuelEU Maritime as of 2025, mainly when navigating through Emission Control Areas (ECAs). But LNG dual-fuel ships are likely to avoid using marine gas oil for ECA compliance. For the research, SEA-LNG used the methodology from Z-Joule — a company that offers strategic support for the maritime fuel transition — and considered variants such as vessel speed and waiting times to dock. By Gabriel Tassi Lara Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Argentina touts quarterly economic growth

24/12/17

Argentina touts quarterly economic growth

Montevideo, 17 December (Argus) — Argentina's macroeconomic conditions continue to stabilize, with growth picking up and inflation trending down. The economy expanded by 3.9pc in the third quarter of the year compared to the previous three months, according to preliminary data from the statistics agency (Indec). It was the first quarter-on-quarter growth since President Javier Milei took office a year ago during a deep recession with a promise to overhaul the long-struggling economy. The economy contracted by 1.9pc in the fourth quarter of 2023, by 2.1pc in the first quarter of 2024 and by 1.7pc in the second quarter. While the economy is still down by 2.1pc compared to a year earlier, the government presented the data, together with falling inflation, as evidence that Milei's strategy to deregulate and shrink the state is working. Inflation in November was 2.4pc, a huge decline from the 25pc when Milei took office in December 2023. Accumulated inflation through November was 112pc. According to Indec, private consumption was up by 4.6pc from quarter to quarter and investment by 12pc. The country has had a fiscal surplus for nine months. The currency has stabilized after a brutal devaluation early in 2024 of more than 50pc. Exports grew by 3.2pc from the second quarter and are the most positive economic indicator so far this year. Exports in the first three quarters of 2024 were up by 20pc compared to a year earlier. The energy sector in the GDP calculation increased by only 0.4pc in third quarter, but it plays an important role in the trade balance. The country will have a trade surplus this year close $20bn compared with a $6.9bn deficit in 2023, according to the central bank. Argentina registered its first energy surplus in 15 years in the first half of 2024, exporting $4.81bn and importing $3.79bn. Crude exports were up by 60pc compared to 2023. Oil and gas trade organization Ceph forecasts an energy surplus of $25bn by 2030, based on projections of crude output of 1.5mn b/d and natural gas at 230mn m³/d. The government has reduced from 18 to eight the number of cabinet ministries and eliminated hundreds of regulations. Deregulation and transformation minister Federico Sturzeneggar announced in early December that approximately 4,500 regulations would be eliminated in 2025. But the austerity measures have caused a spike in poverty, with more than 50pc of the population living below the poverty line, up from 41.7pc in December 2023. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

CDU promises support to abolish German gas levy

24/12/17

CDU promises support to abolish German gas levy

London, 17 December (Argus) — German opposition leader Friedrich Merz has said his party would agree to the law which abolishes the German gas storage levy on cross-border flows, and the bill is now scheduled to be debated in parliament on 20 December. The removal of the gas storage levy for European neighbours is "a law that we can support" before the next election, the conservative CDU party leader Merz said in Berlin yesterday. Merz had previously said he would only be open to discussions about potential last-minute legal projects after the vote of no confidence, which chancellor Olaf Scholz lost yesterday. Elections are now expected to be held in late February, putting all parties in campaign mode. The German government collapse in early November put the storage levy change at risk of not being passed before the end of this year, as the government has lost its working majority in parliament. THE originally introduced the levy in October 2022 to recoup the cost of purchasing 50TWh of gas in summer 2022 on the spot market without hedging it forward. It bought this gas at an average price of about €175/MWh, when spot prices spiked following the halt to Russian flows. Germany announced in May that it would scrap the charge at border points, following complaints from its eastern neighbours that the levy discourages transit through Germany and complicates efforts to diversify away from Russian gas. Timing remains tight for levy to be passed The law is scheduled to be debated in parliament on the morning of 20 December and will have to be approved by the upper house of parliament — the Bundesrat — that same day if it is to enter into force on 1 January. The bill already had its first reading in September. The second and third readings of a bill can be compressed into one if no amendments to the law are adopted during the session. During the comments stage of the storage levy bill in the Bundesrat, the house proposed a second change to the energy industry act concerning regulatory approval for hydrogen electrolysers. Merz said this was largely connected with wind power and planning on a state level in North Rhine-Westphalia. He said he hoped it was possible to find a consensus, and stressed this was part of the talks this week. If the current draft has to be amended, the second and third reading could not be completed in one session. And the Bundesrat has only one more session before the new year, also on 20 December. The Bundesrat confirmed to Argus today it had received a request to shorten the time-limits on the relevant bill. This request will be decided tomorrow afternoon, and if approved, the Bundesrat could put any passed bills onto the agenda on 20 December, the Bundesrat told Argus . Politicians have told Argus the law could also be abolished retroactively after 1 January . And German market area manager THE told Argus late last week that the first payments for the new levy are only due around the end of March, leaving an almost three-month leeway for the law change to take effect . But traders have emphasised that without a strong signal the flow-based charge will go, spot price premiums in neighbouring markets will have to be large enough to offset the levy in order to attract imports. Austria still threatens legal steps Austrian energy and climate minister Leonore Gewessler yesterday reiterated that Austria could reactivate its lawsuit against Germany as a "measure of last resort". Gewessler will instruct the Austrian civil service to investigate and prepare a lawsuit at the European Court of Justice but said she remains confident she will not have to use this last resort. The matter is of utmost importance to Austria's energy security and diversification on the path away from Russian gas, Gewessler said. THE assuming no revenues from cross-border flows in its most recent levy setting was "a positive signal", Gewessler said. THE set the levy at €2.99/MWh for the first six months of 2025. Austrian regulator E-Control had previously told Argus it would "take all necessary steps" at an EU level if it looks like a law to abolish Germany's storage levy on gas exiting the country will not be passed in time. Czech deputy minister for industry and trade Stepan Hofman said yesterday "Germany confirmed to us it is doing everything in its parliament to approve the abolition of the tax as of January 1 2025, this week." By Till Stehr Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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