Russia's proposed gas pipeline to Iran
The Russian President Vladimir Putin announced on Friday plans to build a pipeline to Iran that will eventually transport up to 55 billion cubic meters (bcms) of gas per year into the West Asian nation. Here are some background details about the cooperation between Iran, Russia and the gas sector. Iran is the second largest gas producer in the world after Russia. However, U.S. sanctions are preventing access to technology as well as slowing down gas exports. In July 2022, the National Iranian Oil Company and Russian energy giant Gazprom agreed to a Memorandum of Understanding worth about $40 billion.
Iraqi oil minister: Iraq and BP will sign Kirkuk oil deal in first week of February
Iraq and British oil giant BP will be signing a mammoth agreement covering four Kirkuk gas and oil fields by the 1st week of February. This was revealed by Oil Minister Hayan Abdul-Ghani during a trip to Britain. He said the deal would be bigger than a TotalEnergies 2023 Basra deal, which was valued at around $27 billion. Iraq's official news agency reported on Wednesday that Baghdad had signed a preliminary deal with BP to evaluate the feasibility of redeveloping Kirkuk and its neighboring oil and gas fields. However, the report did not provide any further details.
Egypt and Eni announce that drilling ships will begin work on the Zohr gas fields
Egypt's Petroleum Ministry said that a drilling ship would arrive in Egypt next month, as Eni begins work to increase production at the massive Zohr offshore field. Egypt planned to become one of the world's major gas exporters after Eni found the field in 2015. However, domestic gas production has fallen in Africa since 2021 and reached a six-year minimum in 2024. In the first half 2024, the average production at Zohr fell to 1.9 billion cubic foot per day (bcf/d), well below the 2019 peak. Eni confirmed on Friday that, as stated by Egypt's Ministry of Petroleum and Mineral Resources…
Pharos Energy announces that licences for 2 Vietnam oil and gas fields have been extended until 2031/32
Pharos Energy, a UK-based oil & gas exploration company, announced on Friday that its two joint ventures operating in Vietnam had received approval from the local government to extend their licenses for five years until early 2030. Pharos announced in a press release that the Te Giac Trang field operated by Hoang Long Joint Operating Company will be permitted to operate until December 7, 2031. TGT is situated in Block 16-1 in the Cuu Long Basin offshore Vietnam, and the licence was set to expire December 2026. Pharos announced that the Ca Ngu Vang field (CNV)…
BP and Iraq agree on technical terms for redeveloping Kirkuk oilfields
The British oil giant BP announced on Thursday that it had reached an agreement with the Iraqi Government on the technical conditions for redeveloping the Kirkuk Oil and Gas Fields. In August, the company signed an agreement to explore and develop the Kirkuk oilfield located in the north of Iraq. This will include the construction of solar power plants and other energy infrastructure. Sources have said that unlike historic contracts, which offer foreign companies razor thin margins, new agreements will include a generous profit sharing model. Iraq is the second largest oil producer after Saudi Arabia in the Organization of Petroleum Exporting Countries.
China's CNOOC sold US assets to Britain’s INEOS
CNOOC Ltd, a Chinese company, has sold its U.S. subsidiaries, along with its upstream oil assets and gas assets, in the Gulf of Mexico to British chemicals group INEOS. This was announced by CNOOC on Saturday. CNOOC Energy Holdings U.S.A., a subsidiary of INEOS, has entered into a sale agreement with a subsidiary of CNOOC relating to CNOOC’s upstream oil-and-gas assets in the U.S. portion of the Gulf of Mexico. The deal includes non-operator interest in oil and gas fields such as Appomattox, Stampede and Stampede. In a statement…
EUROPE GAS - Prices stable on warmer temperatures forecasts and strong LNG supply
The wholesale gas prices in the Netherlands and Britain were not much different on Tuesday morning, despite warmer temperatures and strong LNG imports. By 0955 GMT, the benchmark front-month contract for the Dutch TTF hub had increased by 0.09 euros to 45.10 Euros per Megawatt Hour (MWh), which is $13.91/mmbtu. The Dutch day-ahead contracts rose by 0.10 euro to 45.05 euros/MWh. The day-ahead contract in Britain rose by 0.80 pence to 112.00 pence a therm. They said that a strong demand for gas in the future due to low wind production and an unplanned outage of the Asgard gas fields in Norway could provide some assistance.
BP and its partners invest $7 billion into a carbon capture project in Indonesian Papua
BP and its partners announced that they will invest $7 billion into a carbon-capture project and the development of gas fields in Indonesia's easternmost Papua Region, which could unlock an additional 3 trillion cubic feet in gas resources. The British oil producer announced its investment in London on Thursday during a meeting between President Prabowo Subito, who was visiting London. The company said that production at Ubadari is expected to begin in 2028. Gas from the field will be processed in the Tangguh liquefied gas plant in West Papua.
Angola LNG is considering expansion as gas supply increases
Angola Liquefied Natural Gas is looking at future expansion options, including adding a three-million-metric ton mini train, as gas supplies ramp up in the plant over the next year. The plant will reach full capacity by 2025, thanks to extra supplies from Chevron and the New Gas Consortium. Africa's second largest crude producer is planning to shift more towards natural gases to capture the growing demand on key markets in Europe, Asia and Africa. Angola's LNG plant was built at a cost $12 billion more than 10 years ago. It has run below its capacity nameplate for many years due to the decline in gas production at the mature fields that supply the facility.
Repsol targets renewables deals, seeks 'solution' for North Sea business
Josu Imaz, the chief executive of the Spanish oil company Repsol, said that the company is currently working on new deals for its renewable operations both in Spain and in the United States. It also wants to find a solution to its exploration and production business in the North Sea. Repsol has a strategy that focuses on selling minorities in renewable projects, to fund the expansion of green energy capacity and biofuels. It also focuses its upstream activities on key markets such as the U.S. The CEO of the company told analysts that the divestment will be completed by the end of this year or early in next year.
Indonesia targets increased liquefied gas production, regulator says
Indonesia wants to increase its liquefied gas production by 1 million tons per year in order to reduce the amount of cooking fuel imported, said the head of Indonesia's upstream oil regulator on Tuesday. The new president Prabowo Subianto has pledged that he will achieve energy independence through biofuels and oil and gas production. He cited the rising geopolitical uncertainty which could affect supply. Indonesia's Energy Minister aims to double the domestic production of popular cooking fuel LPG from 1.7 million tonnes per year.
Mozambique's election winner faces financial strain
The economy of Mozambique will be impacted by the worsening cyclones and insecurity as well as delays to gas projects, high debt levels, and delayed gas projects. Daniel Chapo, the candidate of the ruling party, is currently the frontrunner. However, there are also three other candidates who want to succeed Felipe Nyusi in the role of president for the nation. Mozambique is under pressure to adopt fiscal discipline due to rising borrowing costs, especially as it has run out of options for refinancing its debt. Its debt is almost as large as its annual GDP. Gabriel Muthisse said that the debt in the country was soaring.
The UK has committed up to $28.5 billion for carbon capture projects
The government announced on Friday that it will invest up to 21.7 billion pounds (up to $28.5 billion) in 25 years for the development of carbon capture and storage technology to reduce emissions from energy, industry, and hydrogen production. Britain has set a target of achieving net zero emissions in 2050. CCS is needed to reduce emissions from industries that are energy-intensive and to create jobs. In a press release, Chancellor of Exchequer Rachel Reeves stated that "this game-changing technology" will bring 4,000 jobs to communities in Merseyside & Teesside as well as billions of dollars of private investment.
Britain has pledged up to 21,7 billion pounds for cleaner energy
The government announced on Friday that it will invest up to 28.46 billion pounds (21.7 billion pounds) in the development of carbon capture and storage and hydrogen technology for northern England. Britain has set a target of achieving net zero emissions in 2050. CCS is needed to reduce emissions from industries that are energy-intensive and to create jobs. The Chancellor of Exchequer Rachel Reeves stated that "this game-changing technology" will create 4,000 jobs in communities in Merseyside, and Teesside. This will ignite growth in these industrial corelands and power up the rest the country.
The front-runner for Mozambique president is likely to continue keeping Rwandans on the job of protecting gas sites
Analysts say that the ruling party candidate for this month's election, who is almost guaranteed to win, will continue to rely on Rwanda's army and European money in order to secure the region's vast gas fields, which are plagued by islamist violence. Daniel Chapo (47), an ex-highschool teacher, will be overseeing the construction of two LNG projects that are currently halted due to insecurity in the northern Cabo Delgado Province. In order to achieve this, he will need to heavily rely on the Rwandan military, which was brought in by President Felipe Nyusi, currently in office, in 2021 in order for local troops that are struggling, be bolstered.
TotalEnergies CEO to meet Mozambique President to advance project in the country
TotalEnergies' CEO Patrick Pouyanne announced that he would be traveling to Mozambique in the latter part of this month to discuss the planned Mozambique Liquefied Natural Gas project with the new president. Pouyanne stated that there has been recent "progress in security". On Oct. 9, Mozambicans are voting in presidential and legislative polls that will almost certainly extend the Frelimo Party's 50-year reign of power. The party is fighting a longstanding Islamist insurgency at one of Africa's biggest gas fields. Pouyanne said that financiers have confirmed 70% to 80% a $14 billion package of financing for the project.
What are the main issues in Mozambique's elections?
Next week, Mozambicans are voting in legislative and presidential elections. It is almost certain that the Frelimo Party will extend its half-century in power. The party has been fighting a longstanding Islamist insurgency within one of Africa's biggest gas fields. Daniel Chapo is the candidate of the ruling party and a former law professor. He will replace Filipe Nyusi, who was previously a radio announcer. Here are the key issues that face one of the poorest countries in the world and its 34 million citizens as they head to elections.
Gas prices in Europe are correct after a 3-week high
Dutch and British wholesale prices of gas fell on Thursday amid forecasts for more wind energy generation. This was a correction from the three-week high that they had reached earlier in the day due to supply concerns. LSEG data shows that the benchmark front-month contract for the Dutch TTF hub fell 0.72 euros to 36.86 Euro per megawatt hour at 0952 GMT. According to LSEG data, on Wednesday the contract reached its highest level since September 3 at 38.15 Euro/MWh. The front-month contract in the British market was 2.21 pence less at 88.70 p/therm. Meanwhile, the day-ahead was 1.50 pence lower at the same price.
Egypt plans to restore gas production at its gas fields to normal by the summer of 2025
Mostafa Madbouly, the Prime Minister, said that Egypt hopes to resume normal production in its natural gas fields before next summer. He also indicated that the government was moving to settle arrears it owes to production companies. Madbouly said at a press conference that the government's arrears had caused a drop in production, but he did not specify how much it owed or when the money might be paid back. In March, sources said that the government set aside $1.5 billion to pay foreign oil and gas companies in the country. Arrears accumulated during a long-running shortage of foreign currency, which has since been eased.
EUROPE GAS-Prices reverse earlier gains after Ukraine transit deal report
The Dutch and British gas wholesale prices dropped on Thursday, reversing gains made earlier, following a report in the media that Ukraine had agreed to transport Azerbaijani natural gas to Europe. The report was not immediately verified. By 1334 GMT, the benchmark front-month contract for the Dutch TTF hub had fallen by 0.84 euros to 34.25 Euro per megawatt hour (MWh), which is $11.16 mmBtu. LSEG data shows that the November contract is 1.69 euros lower, at 35.74 Euro/MWh. The day-ahead contract on the British market fell from 80.00 pence to 3.35 pence per therm.
