Petrofac UK signss binding agreement with its creditors regarding financial restructuring
Petrofac, a provider of oilfield services, announced on Sunday it had reached a binding agreement on terms for a restructuring with its key financial creditors. The company stated that the plan will include $325 million of new funding as well as the conversion of $772 million of existing debt to equity. In a recent statement, Group Chief Executive Tareq Kwash stated that "we have made progress in closing our legacy contract portfolio, and our new projects are moving forward well. In September, Petrofac and some of its major stakeholders reached…
As the Ukraine gas transit agreement nears its expiry, the Russian president meets with Slovak Prime Minister
Pavel Zarubin, a Russian TV presenter, said that Russian President Vladimir Putin and Slovak Premier Robert Fico met in the Kremlin Sunday. The meeting took place as a contract for Russian gas transiting through Ukraine is nearing its expiration date. Fico criticised the Ukrainian president Volodymyr Zelenskiy for refusing a contract extension that expires in the next year. In a video that was posted by Zarubin on Telegram, Kremlin spokesperson Dmitry Peskov said that the discussion would be centered on the gas transit and current international situation. He stated that the Kremlin Meeting was arranged "a couple of days ago".
Qatar will stop EU gas exports if fined for due diligence, reports FT
In an interview with the Financial Times published on Sunday, Energy Minister Saad Al-Kaabi said that Qatar would stop shipping gas into the EU if the member states enforced a new law aimed at cracking down against forced labour and environmental damages. Corporate Sustainability Due Diligence, approved in this year, is a directive that requires large companies operating within the European Union, to verify whether their supply chain uses forced labour, or causes environmental damage, and take action, if necessary. The penalties include fines up to 5% global turnover.
Orban: Hungary is in talks with Ukraine about Russian gas deliveries via Hungary
Viktor Orban, the Prime Minister of Hungary, said that Hungary was in talks with Russia, Ukraine and other countries to keep open gas deliveries via Ukraine, even though it imports Russian gas via Turkstream. The pipeline via Ukraine is one of the main Russian gas routes into Europe. However, it will close at the end this year because Kyiv doesn't want to extend the five-year transit deal that brings gas to Slovakia and the Czech Republic. Orban said in a press briefing: "We're now trying to pull off the trick... Orban stated that talks are ongoing…
Holiday schedule for US Energy Data
Some major energy data will be delayed due to the federal holidays of Christmas and New Year's Day on December 25 and January 1, 2025. The schedule below shows the U.S. Petroleum, Oil and Natural Gas Supply and Inventory for these weeks. WEEK OF DEC. As per usual, API will release its weekly report on petroleum stocks on Tuesday, December 24 at 4:30 pm EST (2130 GMT). The EIA will delay its weekly report on natural gas inventories until Friday, December 27 at 10:10 a.m. (EST) (1530 GMT). The report would normally be released on Thursday at this time.
Sources say that Northern Oil and Gas is in the process of acquiring Granite Ridge, a smaller rival.
According to sources familiar with the situation, Northern Oil and Gas made a purchase offer for Granite Ridge Resources. Granite Ridge Resources is a small U.S. oil and gas producer that operates in the Permian and Eagle Ford basins. Sources said that Northern, based in Minneapolis, Minnesota, has made at least two bids for Granite Ridge. The latest offer, which was made within the last few weeks, came at roughly a 20% premium over the target's stock price. Sources said that while Granite Ridge management has rejected the overtures to date, Northern is still interested in the deal and may sweeten it next year. The discussions are confidential, so they asked for anonymity.
SOCAR sources: Russia and Ukraine cannot agree on gas deal mediated by Azerbaijan
Azeri SOCAR, a leading energy company in Azerbaijan, said on Friday that Moscow and Kyiv failed to reach an agreement on the deal brokered by Azerbaijan for Russian gas to be exported to Europe via Ukraine. Azerbaijan was asked by the European Union and Ukraine to facilitate talks with Russia regarding a gas-transit deal due to expire this year. On Thursday, Russian President Vladimir Putin stated that there was no chance of a new agreement with Kyiv for the transit of Russian gas to Europe through Ukraine. Ukraine, which has been fighting Russia's invasion in Europe since February 2022 said that it would not renew a contract…
DOE-backed report: U.S. data centers' power consumption could triple by 2028
According to a Department of Energy report, the U.S. power consumption for data centers could triple within three years and account for 12% of all electricity consumed in the United States. The Lawrence Berkeley National Laboratory's report is due to be released this Friday. It comes as the U.S. government and power industry are trying to figure out how the sudden increase in data center demand by Big Tech will impact electrical grids, electricity bills, and climate change. According to a Berkeley Lab report, by 2028 the annual power consumption of data centers could be between 74 gigawatts and 132 gw, or 6.7% to 12.0% of U.S. total electricity consumption.
Prices rise on increased demand for electricity and uncertainty about Russian flows
Dutch and British wholesale prices for gas rose on Friday, as a result of a surge in demand from power plants and a decrease in wind speed. There is also uncertainty over Russian gas supplies to Europe due to the imminent end of the Ukraine transit agreement. The benchmark contract for the Dutch TTF hub rose by 0.30 euros to 43.58 euro per megawatt-hour (MWh), which is $13.68/mmBtu by 0955 GMT. Meanwhile, the contract for the next day was up 0.75 euros at 43.40 euro/MWh. The day-ahead contract in Britain was 1.2 p higher, at 107.60 pence per therm.
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)…
Germany waives gas storage fees outside of the country starting Jan. 1, 2025
The German lower house of Parliament passed on Friday a change in energy law that will waive the domestic market storage fee at border points and virtual trading centers, effective Jan. 1, 2025. This will free foreign consumers from a costly element of price. Parliament approved the law change based on its incompatibility with European energy solidarité and to help south-western neighbors diversify their gas supply away from Russian gas. The levy that Trading Hub Europe (THE) charges domestic gas consumers will increase by 20%, to 2,99 euros per megawatt-hour (MWh), on January 1, 2025.
Norway's oil and gas production fell in November but exceeded forecast
Norwegian Offshore Directorate said Friday that although the combined oil and natural gas production in Norway decreased from November of last year, it was still 2,6% higher than the official forecast. Norway is Europe's biggest supplier of natural gases and oil. However, output can vary from month to months depending on maintenance and other stops at over 90 offshore fields. The total oil, gas liquids, natural condensate and gas production stood at 0.674 standard cubic metres each day. This is equivalent to 4,24 million barrels equivalent oil.
Japan Gas Lobby urges stronger diplomatic efforts to drop LNG Destination Clauses
The head of Japan Gas Association urged on Friday the government to intensify diplomatic efforts in order to eliminate destination clauses from long-term contracts for liquefied gas. This would allow the government more flexibility in reselling LNG in response to changing demand. The Japan's Industry Ministry unveiled on Tuesday a draft version of its revised basic policy for energy, which shows that LNG-fired electricity is needed to transition from dirty energy sources to cleaner ones. The report also stated that the government and private sector should jointly secure long-term LNG agreements to prepare for possible risks, such as price increases and disruptions in supply.
California sets clear course to close Aliso Canyon Gas Storage Facility
California's utilities regulatory agency on Thursday set out a clear path to potentially close SoCalGas Aliso Canyon's gas storage facility. The regulator prioritized energy reliability and affordability, as the state moves towards cleaner energy. In a press release, the California Public Utilities Commission said that it has set an annual peak natural gas demand of 4,121,000,000 cubic feet. This is the level at which Southern California will be able to meet its demand without Aliso Canyon. The regulator stated that the natural gas demand is on a downward trend in Southern California as a result the state's climate goals and policies.
US pressures EU to align LNG methane regulations
A letter obtained by showed that U.S. officials redoubled their efforts to convince EU counterparts that shipments of liquefied gas meeting current U.S. regulations on methane would automatically meet the new European standards for gas imports. On December 17, the administration of President Joe Biden sent a second email to Ditte J. Jorgensen (EU Director-General for Energy) to increase support for their case that US Environmental Protection Agency regulations should be considered "equivalents" to EU regulations whose reporting requirements for emissions begin in 2025.
Hungary: US exemption of gas payments from Russia Gazprombank sanctioned
In a video on social media, Hungarian Minister of Foreign Affairs Peter Szijjarto stated that the United States had granted exemptions for gas payments from the sanctions they imposed against Russia's Gazprombank. The U.S. implemented sanctions against Gazprombank in November, creating a barrier for European gas buyers. Gazprombank was used by buyers to pay for their purchases. Hungary, which relies primarily on Russian oil, gas and other energy sources, requested an exemption from the U.S. These countries, including Turkey and Slovakia, are seeking clarifications and alternatives to pay for the U.S. Gazprombank sanctions.
Putin is clear: there will be no Ukraine Gas Transit Deal
Vladimir Putin, President of Russia, said that it is now clear that no new gas transit agreement will be signed with Kyiv for Russian gas to be sent through Ukraine to Europe. However, Russia will survive. As the EU attempts to reduce its dependency on Moscow, Russia has lost nearly all its European clients. Before the Ukraine War, Russia was Europe's largest single natural gas supplier. The Nord Stream gas pipeline, which was destroyed in 2022, cut off a major artery of Russian gas exports. Now one of the last main Russian gas routes to Europe…
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.
Spain's demand for electricity is increasing as renewables set records
According to Red Electrica's estimates, the amount of electricity consumed in Spain increased this year, after two years of decline. A record 56% came from renewable sources, such as solar and wind. The Spanish renewable energy industry has warned about the dangers of future investment in this sector due to the lack of demand for electricity. The preliminary figures indicate that demand increased by 1%, or 1.6% when adjusted for working hours and temperatures from 2023 to 244 terawatt-hours. In its climate and energy plans, Spain has set high targets for renewables. By the end of this decade, renewables will generate 81% the electricity in Spain.
AI's hunger for energy fuels geothermal startup but rivalry over natgas clouds the future
The number of geothermal energy startups is on the rise, as Big Tech companies look to power their AI data centers with natural gas. However, long-term investment remains uncertain because oil majors are doubling down on natural gases. Meta and Alphabet’s Google are two of the tech companies that have partnered with startups to create geothermal energy to power their data centres. The energy demands of artificial intelligence are being met by large datacenter operators, who are also accelerating the adoption of a variety of clean technologies.
