Major utility withdraws membership from American Gas Association to focus on decarbonization: In what is thought to be a first of its kind move, Eversource — the largest energy utility in the U.S. state of New England — has disclosed that it rescinded its membership to the American Gas Association (AGA) in early 2022. A company spokesperson described the decision as an effort to “redirect costs to more targeted associations and memberships with a focus on decarbonization to support our company-wide operations.” The AGA counts more than 200 local energy companies across the U.S. as members and has existed since 1918. It has garnered a reputation for concerted lobbying and other efforts aimed at blocking the clean energy transition, making Eversource’s decision to part company with it, say electrification advocates, highly significant and potentially the first of other departures. The HEATED website contacted what it describes as “self-proclaimed climate-friendly utilities” to find out if they plan to follow Eversource’s lead. Only Con Edison, New York’s largest power utility, responded but “did not express disagreement with any of AGA’s political activities.” (WBUR, HEATED)

German group takes legal action against Lubmin LNG terminal: Environment and consumer group Deutsche Umwelthilfe (DUH) has filed suit at Germany’s Federal Administrative Court demanding that Deutsche ReGas, the operator of the Neptune floating storage and regasification unit (FSRU) in Lubmin port, revoke the license granted by the regional authorities for the operation of the terminal. DUH contends that shuttle traffic and noise pollution for the project, which started operating in January, were “ignored” in the approval process. Separately, Deutsche ReGas has announced that all of the offered regasification capacity at the planned — and highly controversial — FSRU-based LNG import terminal in the port of Mukran on the tourist island of Rügen has been booked. The company offered 4 billion cubic meters (bcm) of capacity per year for a period of at least 10 years. (Reuters, DUH [German], LNG Prime)

Northern Territory “sustainable” LNG export scheme set to blow Australia’s emissions reduction plans: New analysis from Canberra-based think tank the Australia Institute shows that the lifecycle emissions resulting from the 20 million tonnes per year (mtpa) Northern Territory LNG (NTLNG) export facility proposed for development in Darwin would be equivalent to 12 coal-fired power stations every year should the terminal operate at full capacity. Tamboran Resources announced plans in June to develop the project at the Middle Arm “Sustainable Development Precinct” on Darwin harbour, a site which has been awarded a A$1.5 billion (US$1 billion) subsidy from the Australian government. Tamboran is seeking to export gas extracted by fracking from its fields in the Northern Territory’s Beetaloo Basin. The six-page research from the Australia Institute finds that domestic emissions alone from NTLNG would be equivalent to three coal-fired power stations per year. Tamboran is targeting first LNG production by 2030 at the same time as Australia is due to meet its Paris Agreement target of reducing national emissions by 43% on 2005 levels. (The Australia Institute [Pdf])

Norwegian terminal developer bullish on new Indian and Scottish projects after capital raise: A US$685 million merger deal between Norway’s Crown LNG and Catcha Investment, a special purpose acquisition company, is reported to be paving the way for the development of two new LNG projects in India and Scotland. Crown specializes in offshore LNG terminals using gravity-based structures that sit on the seabed, making them suitable for deployment at harsh weather locations. The company’s 7.2 million tonnes per year (mtpa) Kakinada import terminal, to be located 11 kilometers offshore in the cyclone and monsoon prone Bay of Bengal, has been in development since 2021. Crown said that it is aiming to take a final investment decision (FID) on the US$1 billion project in the third quarter of 2025. The company is also aiming to deploy a conventional FSRU terminal with capacity of 5 mtpa at Grangemouth on the east coast of Scotland. FID for the US$533 million project is being targeted for the third quarter next year. (Reuters, LNG Prime)   

Substantial methane leaks detected at Australian fossil fuel infrastructure: Using thermal technology, a four-week investigation by the Clean Air Task Force (CATF) detected climate-heating methane leaking or being vented from more than 100 places across 35 fossil fuel sites in Queensland and New South Wales. Commissioned by the Australian Conservation Foundation, the U.S.-based nonprofit picked up visible leaks or venting places at a range of coal seam gas wells and pipelines owned by Australian energy companies Santos, Origin, and Jemena. The new findings add to concerns that the country’s methane regulations are weak and that underreporting of leaks is widespread. While Australia has committed to cut methane emissions by 30% in the decade to 2030, a CATF infrared thermographer said the methane leaks he saw in Australia were “on another level” compared with seven other countries in which he had worked. Santos and Origin flatly denied the evidence presented, questioned CATF’s methodology, and said they had checked their gas wells after the evidence was presented and found no leaks. (The Guardian)

Communities in the firing line from Shell’s Pennsylvania cracker plant: Since its startup last autumn, Shell’s vast, US$6 billion plastics plant in Beaver County, Pennsylvania has accumulated scores of malfunctions and violations, according to evidence published by PublicSource, a nonprofit newsroom serving the Pittsburgh region. Based on PublicSource’s review of selected communications between Shell and the Pennsylvania Department of Environmental Protection, the plant, which converts fracked ethane gas into tiny plastic pellets, has seen repeat flaring incidents and spills that have resulted in the leaking of hundreds of tons of hazardous chemicals into the surrounding Ohio River Valley. By December, the plant had already exceeded its air pollution permit for the year. In May this year, Shell received a US$10 million penalty for clean air violations, with half of the money to be allocated for projects to mitigate the pollution’s impact on local communities. However, community advocates are concerned that this type of solution — the so-called “pay to pollute” model — risks being no more than a sticking plaster that fails to address or deter anticipated future pollution from the Shell plant. (Inside Climate News, Environmental Health News)

Three Canadian LNG export prospects move forward: Three proposed Pacific Coast LNG export terminals in British Columbia have seen significant developments. After more than a year’s delay, construction of the Woodfibre LNG terminal is underway, with the 2.1 mtpa facility still expected to come online in the third quarter of 2025. Canada’s top gas producer, Tourmaline Oil Corporation, has agreed to join the 12 mtpa Ksi Lisims floating terminal slated to commence operations in 2027. Another floating terminal, the 3 mtpa Cedar project, has seen FID pushed back to the fourth quarter of 2023 due to what Upstream described as a “mystery” second front-end engineering design (FEED) process. The US$2.4 billion project is being led by the Haisla Nation and is Canada’s first Indigenous majority-owned LNG facility. (Offshore Energy, Bloomberg, Upstream)

The Gas Graph


Via the Australia Institute, if the Northern Territory was a country it would be the highest per capita polluter in the world. If plans to frack the Beetaloo Basin to then allow further huge volumes of LNG exports are realized, the NT’s lead would stretch significantly, with consequences for other Australian states.

China: Last month China National Petroleum Corporation started drilling the 10,000 meter deep Shendi Chuanke 1 Well onshore in Sichuan province in a bid to tap some of the country’s largest shale gas reserves.

Nigeria: Ten months on from its original declaration due to flooding and pipeline vandalism, Nigeria LNG has announced that force majeure at its 22 mtpa export terminal at Bonny Island is continuing. The number of cargoes shipped from the plant has been disrupted since last October but it has continued to operate.

Pakistan: Islamabad has suspended completion of its section of the 2,775 kilometer Iran-Pakistan gas pipeline until such time as international sanctions on Iran are lifted.

Russia: Piped gas exports to Europe rose to 2.6 bcm in July as LNG exports dropped by 24%, according to ENTSOG and vessel tracking data.

Timor-Leste: Australia’s Santos is advancing the proposed Bayu-Undan carbon capture and storage project offshore Timor-Leste that aims to allow Australian gas projects to mitigate their carbon emissions. A delayed FID is planned for 2025. 

Ukraine: With European gas storage tanks already close to full, traders have begun storing gas in Ukraine to take advantage of lower prices and available capacity.

UK: Energy regulator Ofgem has given approval to gas distribution company SGN for a £30 million (US$38 million) project to trial 100% hydrogen through a 30-kilometer decommissioned gas pipeline in Scotland.

U.S.: The embattled Driftwood LNG export project in Louisiana has had its last remaining supply deal terminated due to disagreement on the commercial terms with commodities trader Gunvor.

Neptun Deep enters development phase after signing of €1.6 billion construction contract: OMV Petrom, Romania’s largest energy company and joint partner with Romgaz in the 100 bcm Neptun Deep gas extraction project, has awarded the €1.6 billion (US$1.75 billion) construction contract for developing the Black Sea offshore field to the local subsidiary of Italian group Saipem. The largest greenfield development the EU has seen for many years took a long-awaited FID in June, and first production is estimated for 2027. Romania’s National Agency for Mineral Resources has also endorsed the project’s development plan. A recent assessment by the Oxford Institute for Energy Studies (OIES) deemed Neptun Deep’s overall project risk to be “mostly low,” particularly on market and technical risks. OIES judges the project’s pricing risk as “low to medium,” as the field’s startup is likely to coincide with significant LNG supply expansions from Qatar and the U.S., while the project is thought to be most vulnerable to political risks. Although the Romanian state has a major motivation to ensure the project succeeds, the OIES analysis points out that legislative and regulatory stability has long been a weak point in the country. (Business New Europe, Oxford Institute for Energy Studies [Pdf])

‘Explore Sri Lanka’ program aims to open up the South Asian island to rapid gas speculation: “Until the Russia – Ukraine conflict, we were really fighting to attract oil and gas investors, Sri Lanka being a frontier region,” opines Surath Ovitigama, director general of the Petroleum Development Authority of Sri Lanka (PDASL). “Even natural gas was out. The interest was for renewables only.” But, as has been seen the world over, the war changed everything. “Now the world can’t get enough of natural gas and as it happens, Sri Lanka is rich in gas,” continues Ovitigama. “Now we are actually in a better position than we were three years ago.” As a result, the Sri Lankan government is set to approve plans to open up the country’s offshore reserves to overseas speculators. PDASL has already benefited from an ultra-deep water study conducted off Sri Lanka’s east coast by TotalEnergies and Equinor that has enhanced the state organization’s understanding of offshore reserves. Government approval awaits PDASL’s plan to offer exploration blocks on a so-called “open acreage policy,” whereby investors are free to pitch their exploration proposals at any time without having to wait for formal bidding rounds. (Sunday Observer)

Asian energy companies look to cash in on London-based LNG trading: Following state-owned PetroChina’s securing in May of long-term regasification and storage capacity at the Gate LNG terminal in Rotterdam, the Financial Times reports that a string of major Asian energy companies are aiming to develop strong LNG trading presences in London, one of the world’s top gas trading hubs. The companies cited as either boosting or seeking to establish trading desks are Japan’s Tokyo Gas, Osaka Gas, and Kansai Electric; South Korea’s SK E&S; and China’s ENN, CNOOC, PetroChina, and Sinochem. According to the head of LNG at energy analytics firm Vortexa, Felix Booth, the moves are understandable in light of Europe’s new position as the world’s biggest importer of LNG following deep cuts in Russian piped gas imports over the last 12 months, a situation that’s expected to continue. The Asian companies “are much more aware they can make big margins selling cargoes to Europe,” said Booth. (The Financial Times [Paywall])

Bolivia makes significant onshore discovery: Bolivia, which has formally applied to join the BRICS group (Brazil, Russia, India, China, and South Africa) of emerging economies, has announced that the state-run oil company Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) has discovered a new gas field in the Remanso-X1 (RMS-X1) well in the Okinawa area after seismic studies. RMS-X1 was originally drilled in the 1980s and subsequently closed. After recently returning to the area, YPFB discovered a field with estimated volumes of 700 billion cubic feet (19.8 bcm) of gas. Amidst declining domestic production over the last ten years, Bolivian President Luis Alberto Arce said that developing the new find will generate US$5 billion for the country. (Upstream)

Performance and financial woes mount at Mexico’s Pemex: Amid mounting concerns over its falling oil production and inability to address longstanding governance and sustainability issues, a latest US$4 billion handout from the Mexican government for the state-owned oil and gas company Pemex has failed to convince holders of its rising debt load on the bond markets. According to Bloomberg, Pemex’s debts of US$110.5 billion make it the most-indebted oil major in the world. Despite the latest state bailout, investors are now demanding 600 basis points more to hold the company’s bonds due in 2027 than similar sovereign bonds, which is double the premium for the bonds of South Africa’s troubled, state-owned energy company Eskom. The investor concern is being driven by the company’s seeming inability to get its house in order. Pledges to reduce high levels of gas flaring have fallen by the wayside while a major fire at a Pemex oil platform in the Gulf of Mexico led to the deaths of two workers. (Bloomberg) 

International companies to resume exploration in Libya after ten-year gap: BP, Eni, and Algeria’s Sonatrach have confirmed they have lifted force majeure and are set to resume exploration and contractual obligations in the blocks awarded to them in Libya’s Ghadames Basin (A-B) and offshore Block C. Libya holds Africa’s biggest oil reserves but hydrocarbon operations have been badly hit by more than a decade of internal conflict since the overthrow of Muammar Gaddafi in 2011. The announcements from the companies are a boost to the Libyan National Oil Company’s ambitions to increase production and exports to European markets eager for non-Russian oil and gas. (The Africa Report, Reuters)

UAE’s ADNOC ramps up overseas oil and gas expansion: The United Arab Emirates’ biggest oil producer, Abu Dhabi National Oil Company (ADNOC), has agreed to buy a 30% stake in Azerbaijan’s Absheron gas and condensate field from TotalEnergies and the State Oil Company of Azerbaijan. ADNOC’s acquisition, its first major international purchase of upstream hydrocarbon assets, is part of a strategic shift aimed at growing its international gas business. To that end, and as reported by the Financial Times, ADNOC has established what is described as an “internal investment bank” composed of nearly 50 dealmakers with US$150bn in capital expenditure earmarked towards expanding the company’s oil and gas production over the next five years. By contrast, CEO Sultan al-Jaber, also president of this year’s COP29 climate summit in the UAE, has allocated only US$15bn for low-carbon investments over a longer period. A US$30 billion petrochemical merger with Austria’s OMV is also on ADNOC’s shopping list. (Reuters, The Financial Times [Paywall])

Newly Sanctioned Gas Reserves in Southeast Asia Risk 1.5°C Target, Global Energy Monitor, August 9, 2023. (Pdf)

This 11-page briefing details the threat posed to the 1.5° Celsius pathway by in-development gas fields — with estimated reserves of over 540 bcm — across Malaysia, Vietnam, Indonesia, and Brunei.