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Traders expect low uptake of 5-year Latvian gas storage

  • : Natural gas
  • 25/01/28

Market participants expect limited demand for a new five-year gas storage product that Latvian operator Conexus will begin offering later this year.

Conexus will offer a five-year product for its 25TWh Incukalns storage site for the first time ever on 11 February. This five-year offering will be in addition to the one and two-year products already previously offered by Conexus, along with the storage transfer and interruptible capacity products.

All market participants surveyed by Argus expect weak demand for the five-year product, mostly because of unfavourable summer-winter spreads and traders' lack of willingness to commit to bookings that far ahead. Several respondents highlighted that only a limited pool of firms would be interested in planning their activities five years out. Most traders "do not look to the so distant future in the gas storage business", one said. "Not so many market players are ready to tie themselves to local gas markets for five storage cycles in a row," another said.

Several respondents criticised the product's rules, with one noting that it could even lead to storage utilisation falling, "considering the fines for inventory transfer between storage seasons". Traders would try to "squeeze out the pipeline/LNG supply potential, rather than over-injecting", they added. Another said they were concerned that the share of the overall storage capacity allocated to the five-year product was "too high" and would make it possible for some market participants to "hijack this very much needed capacity in a similar way" to what happens at the Latvian-Lithuanian border point of Kiemenai. Several traders have expressed frustration that annual capacity at Kiemenai has been fully booked but only a small part is at times used, blocking other shippers from accessing the capacity and resulting in low utilisation rates.

Another trader highlighted the product's limitation of only allowing a user to transfer up to 50pc of the total booked capacity from one storage cycle to the next without having to pay additional fees.

The previous set of capacity products has been "tested for years and proven to be working", another market participant said, arguing that "imperfect but certain conditions are better than uncertain ones".

One trader pointed out that a lack of interest in the five-year product could increase demand for the traditional one and two-year products, increasing the premium at these auctions further. Two other traders pointed out that given prevailing inverted summer-winter spreads, there is little financial incentive to book any capacity products, let alone make a five-year commitment. Ultimately, the "behaviour of local players is and will continue to be influenced by the closest summer-winter spread and the difference between this spread and the one-year storage tariff, not by long-term storage capacity of injection/withdrawal limits," one concluded.


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25/02/06

Australia's Beach cuts FY24-25 oil, gas output target

Australia's Beach cuts FY24-25 oil, gas output target

Sydney, 6 February (Argus) — Australian independent Beach Energy has narrowed its oil and gas output guidance for the year to 30 June 2025, given delays in bringing the Western Australian (WA 250 TJ/d Waitsia gas plant on line. Beach will produce 18.5mn-20.5mn bl of oil equivalent/d (boe/d) in 2024-25, it said in its half-year results to 31 December. It revised the top end of its previous forecast of 17.5mn-21.5mn boe down because of delays at Waitsia, which is operated by joint venture partner Japanese trading house Mitsui. Beach has maintained its guidance for first sales gas at Waitsia in April-June. The Adelaide-based firm last month reported its [output at 10.2mn boe in July-December 2024,](https://direct.argusmedia.com/newsandanalysis/article/2649704) 15pc higher on the year, leading Beach to raise the bottom end of its guidance. The five Waitsia LNG swap cargoes that Beach has executed to date have brought forward revenue for the firm, which reported A$139mn ($87.1mn) from the two shipped in July-December 2024. A fifth cargo was lifted from Australian independent Woodside Energy's 14.4mn t/yr North West Shelf (NWS) LNG terminal in January, while a possible sixth may occur before the end of June. "We have opportunities for additional swaps in the market and we're looking very closely… I'm hoping to get another [cargo] out before the half-year," chief executive Brett Woods said on 6 February. About 35pc of the gas exported via swap cargoes to date were from Beach's own 20 TJ/d (534,000 m³/d) Xyris gas plant, meaning it will not need to be swapped back, Woods said. Beach expects 8-10 cargoes/yr of Waitsia gas to be shipped until 2028, with scope to further extend the project's LNG exports following the WA government's changes to onshore gas export rules. Waitsia partners hold a gas processing agreement with the NWS JV running until the end of 2028. Beach will start its Offshore Gas Victoria programme in 2025 as part of its ambition to become a major domestic gas supplier. This includes drilling the Hercules gas prospect in Victoria state's offshore Otway basin in April-June, described as a "large scale opportunity" with prospective reserves of 100bn ft³ (280mn m³). No change was made to Beach's 2024-25 capital expenditure guidance of A$700-A$800mn. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Equinor Norwegian gas output up on year in 2024


25/02/05
25/02/05

Equinor Norwegian gas output up on year in 2024

London, 5 February (Argus) — Norwegian state-controlled Equinor's gas output on the Norwegian continental shelf (NCS) edged up on the year, driven by record-high output from the giant Troll field and fewer unplanned outages at NCS assets, the firm said on Wednesday. The firm's Norwegian gas output rose by 4pc on the year to 758,000 b/d of oil equivalent (boe/d) or 107mn m³/d in 2024. This was driven by "strong contributions" from the Troll and Johan Sverdrup fields, Equinor said. Gas production from Troll — in which Equinor holds a 31pc stake — reached an all-time high last year at roughly 116mn m³/d, the Norwegian producer has said. And there were fewer "unplanned losses" on the NCS last year than in 2023, Equinor said. The firm was the largest producer on the NCS in 2023, accounting for more than a third of total gas output on the shelf, the latest available data from the Norwegian Offshore Directorate show. Equinor's global gas output rose by 2pc to 985,000 boe/d or 139mn m³/d last year. But the firm's combined oil and gas global output was slightly lower in 2024, with a small increase in gas production insufficient to offset lower liquids output. Equinor's equity liquids production was 1.08mn boe/d in 2024, down by 3pc on the year. Equinor expects "more than 10pc growth from 2024-27" in oil and gas production, reaching a peak at 2.3mn boe/d in 2027. And the firm estimated that hydrocarbons output would grow by 4pc from 2024 to 2025. Equinor's reported Norwegian gas prices dropped by 22pc on the year to $9.47/mn Btu, or €31.01/MWh, in 2024, using Wednesday's exchange rate. And the average reported price for its US gas decreased by 4pc to $1.70/mn Btu, or €5.57/MWh. Equinor made a profit of $8.83bn in 2024, down by 26pc on the year. Profit was $1.99bn in the fourth quarter, 23pc lower on the year. The company has cut its 2030 expected renewables capacity to 10-12GW, from 12-16GW, noting that the pace of the energy transition is slower in some markets. It did not give a new target for capital expenditure allocation to this sector. Equinor also modified some net carbon intensity goals, setting ranges rather than absolute targets. By Georgia Gratton and Jana Cervinkova Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Equinor scales back renewables plan


25/02/05
25/02/05

Equinor scales back renewables plan

London, 5 February (Argus) — Norwegian state-controlled Equinor said today it has cut by up to 25pc its target for renewables capacity by 2030, and abandoned a plan to allocate half its capital expenditure (capex) to low carbon projects by that same year. The company has cut its 2030 expected renewables capacity to 10-12GW, from 12-16GW, noting that the pace of the energy transition is slower in some markets. It did not give a new target for capex allocation to this sector. Equinor also modified some net carbon intensity goals, setting ranges rather than absolute targets. It now plans to reduce net carbon intensity — which includes scope 3 emissions, from sold products — by 15-20pc by 2030 and by 30-40pc by 2035, from a 2019 baseline. The previous targets were at the higher end of these ranges. Equinor made a profit of $8.83bn in 2024, down by 26pc on the year. Profit was $1.99bn in the fourth quarter, lower on the year by 23pc. The company's oil and gas output was slightly lower in 2024, with a small increase in gas production not quite offsetting lower liquids output. Equinor's equity liquids production was 1.08mn b/d of oil equivalent (boe/d) in 2024, down by 3pc on the year, and its equity gas production rose by 2pc to 985,000 boe/d over the same timeframe. It expects "more than 10pc growth from 2024-27" in oil and gas production, and estimated that hydrocarbons output would grow by 4pc from 2024 to 2025. Liquids and gas prices fell in 2024. Equinor's reported Norwegian and US gas prices rose by 5pc and 26pc, respectively, on the year in the October-December period, but this was not enough to assuage a decrease across the year. The average reported price for its Norwegian gas dropped by 22pc on the year to $9.47/mn Btu in 2024, and the average reported price for its US gas decreased by 4pc to $1.70/mn Btu. Equinor reported an average liquids price of $74.1/bl in 2024, 1pc lower on the year. Its reported fourth-quarter 2024 liquids price fell by 10pc from the same period in 2023, to $68.5/bl. Equinor's power generation rose in 2024, boosted by additions in Brazil and Poland in 2023 and the start of the 531MW Mendubim solar plant in Brazil in 2024. Equinor's share of power generation stood at 4,917GWh in 2024, up by 19pc on the year — but its renewables share rose faster, by 51pc to 2,935GWh. Equinor has maintained its target of 30mn-50mn t/yr of CO2 storage by 2035. Equinor trimmed 600,000 t/CO2 equivalent (CO2e) from its absolute scope 1 and 2 — or operational — emissions over 2023-4. Scope 1 and 2 emissions from its operated production stood at 11mn t/CO2e in 2024. The company's upstream carbon intensity fell to 6.2kg CO2/boe in 2024, down by 7.5pc on the year. Equinor will buy back $5bn of shares in 2025, having bought $6bn in 2024. It completed the fourth $1.6bn tranche of its 2024 programme on 14 January and will launch the first tranche — of up to $1.2bn — of its 2025 programme on 6 February. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

HU-SK summer 2025 gas capacity nearly fully booked


25/02/04
25/02/04

HU-SK summer 2025 gas capacity nearly fully booked

London, 4 February (Argus) — Gas transmission capacity from Hungary towards Slovakia is almost entirely booked for the summer following near sold-out quarterly auctions on 3 February. Following a decision in January to make higher capacity at Balassagyarmat/Velke Zlievce permanent , the additional 25.4 GWh/d of space was offered for the next two quarters, with 23 GWh/d allocated for both ( see table ). After these auctions, roughly 99.4 GWh/d out of total technical capacity of 101.8 GWh/d from Hungary towards Slovakia has been allocated for April-September, although bookings drop to 68.7 GWh/d from October, Entso-G data show. Flows in this direction have been strong this year, averaging 87 GWh/d on 1 January-3 February, driven by Slovakia's need to replace Russian gas after the end of transit through Ukraine. And on the Hungarian-Ukrainian border at VIP Bereg, roughly 35 GWh/d of unbundled exit capacity was booked. Flows to Ukraine at Bereg averaged 17 GWh/d on 1 January-3 February, well below 56 GWh/d in December. Interest in this capacity may have been spurred by buying interest from Ukraine's Naftogaz , although throughout last summer there were also quick flows at Bereg, which then transited to Poland making use of Ukraine's short-haul regime. Elsewhere in the region, there was strong interest in quarterly bookings at VIP Brandov, on the German-Czech border, where 53 GWh/d was booked towards the Czech Republic for the second quarter and 48 GWh/d for the third quarter. Brandov has served as the only entry point for Czech supply since the turn of the year, as flows from Slovakia at Lanzhot dropped to zero after Russian transit halted. Given that the Czech Republic has national targets obliging a 90pc stockfill by 1 November, and storage was 51.4pc full as of Monday morning, there will probably be a need for a strong stockbuild this summer, necessitating inflows from Germany. By Brendan A'Hearn Quarterly capacity bookings GWh/d Network point Period Capacity Type Exit TSO Quality Exit TSO Entry TSO Quality entry TSO Offered capacity Allocated capacity VIP Brandov (DE/CZ) 2Q25 Bundled Gascade FZK firm Net4Gas FZK firm 154.1 53.4 VIP Brandov (DE/CZ) 3Q25 Bundled Gascade FZK firm Net4Gas FZK firm 151.3 47.8 VIP Bereg (HU/UA) 2Q25 Unbundled FGSZ Firm GTSOU 103.5 34.8 Balassagyarmat (HU) / Velke Zlievce (SK) 2Q25 Bundled FGSZ Firm Eustream Firm 25.4 23.0 Balassagyarmat (HU) / Velke Zlievce (SK) 3Q25 Bundled FGSZ Firm Eustream Firm 25.4 23.0 Kireevo (BG) / Zaychar (RS) 2Q25 Unbundled Bulgartransgaz Firm Gastrans 82.9 6.0 — RBP, Prisma Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump makes U-turn on Canada, Mexico tariffs: Update


25/02/03
25/02/03

Trump makes U-turn on Canada, Mexico tariffs: Update

Washington, 3 February (Argus) — US president Donald Trump reversed course on planned tariffs on imports from Canada and Mexico, delaying their implementation by one month. Trump over the weekend issued executive orders for a 25pc tariff on all imports from Mexico, a 25pc tariff on non-energy imports from Canada, a 10pc tax on Canadian energy imports and a 10pc tariff on all imports from China, all to be effective on 4 February. But Trump delayed the tariffs on Mexico and Canada by a month and has indicated that tariffs on China likewise could be subject to negotiations with Beijing. Trump's decision-making on Mexico and Canada tariffs so far looks like a signature move from his first term — escalatory rhetoric and action followed by de-escalation after extracting concessions that do not appear to be significant. Trump said today he agreed to postpone the implementation of tariffs on Mexican goods after receiving assurances from Mexico president Claudia Sheinbaum that she would immediately reinforce the shared border with 10,000 national guard troops. Trump also cited similar assurances from Canadian prime minister Justin Trudeau. "As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that," Trump said via his social media platform. "I am very pleased with this initial outcome." In both cases, the border security pledges touted by Sheinbaum and Trudeau recast initiatives already planned or underway. Trump told reporters today he would "be speaking to China probably over the next 24 hours" — likely meaning the country's president Xi Jinping. Unlike Mexico and Canada, China has taken a restrained stance to Trump's announcement of tariffs. Like the US immediate neighbors, China already has been taking steps to cut off the illegal manufacturing and exports of precursors for fentanyl — the pretext for Trump's tariffs. Things can only get bitter The announcement of tariffs that would have directly hit US energy trade will leave many in the industry scratching their heads about Trump's future moves. A major trade war that would have severely curtailed the flow of energy and other commodities across North America is averted for now, but Trump is signaling that tariffs remain a key plank on his policy agenda. Trump has shrugged off any negative impacts on the US energy sector and the broader economy, saying over the weekend that "WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID." In remarks to reporters today, Trump pushed back against criticism of negative impacts of his tariffs. "Very simply, every single country that you're writing about right now is dying to make a deal," Trump said. In the immediate term, the Trump administration will hold high-level talks with the governments of Mexico and Canada against the deadline for the delayed imposition of tariffs. But down the line, there are other motivations for Trump to move forward with tariffs against key US trading partners. Trump today once again decried the "massive deficits" the US has in trade with Canada, Mexico, China, the EU and the UK. And then there is the lure of tariff revenue that Trump — with an eye toward upcoming congressional deliberation of extending tax cuts beyond 2025 — says would be sufficient to offset lower personal and corporate taxes. Trump set a 1 April deadline for US government agencies to prepare a report on "unfair trade practices" by key US trading partners, which would kick off a legal process for imposing tariffs in the following two months. Trump is separately planning to review the US-Mexico-Canada free trade agreement that his first administration negotiated in 2019. Unlike the tariffs that were due to be imposed on Tuesday by an executive order, the broader plan for tariffs scheduled to kick in after 1 April would be harder to reverse or to negotiate away. And his first two weeks in office show that, despite his claim to be championing America's "energy dominance", the US energy industry would not be exempt during the upcoming trade wars. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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