Another legal hurdle emerges for the Mountain Valley Pipeline: A federal appeals court in the U.S. state of Virginia has ordered a pause on construction of the Mountain Valley Pipeline following the approval in May by the U.S. Congress for the controversial, 303-mile gas pipeline. The decision from the Fourth Circuit Court of Appeals in Richmond came after an environmental group, the Wilderness Society, challenged the constitutional merits of the decision by Congress to legislate in favor of the pipeline with backing from the White House. The blocking of construction for now concerns a three-mile section of the US$6.6 billion pipeline through the Jefferson National Forest that opponents say, if built, would cause erosion and impact on soil and water quality. Equitrans Midstream, one of the companies building the pipeline, said it is considering filing an emergency appeal to the U.S. Supreme Court following the latest judgment. (The Associated Press)

Egypt’s exports boom over for now: Following record high gas export revenues of US$8.4 billion in 2022, Egypt saw its gas and LNG exports drop 75% year-on-year in April this year as gas production continues to decline while domestic consumption is on the rise. The revenue bonanza last year was driven by the high price of LNG in Europe, Egypt’s main export market, and moves from the government to cash in on these high prices by suppressing domestic gas consumption. With European prices sliding over the last nine months to their pre-war level, Egypt’s revenues from LNG exports are expected to fall by 50% this year, according to Oil Minister Tarek El-Molla. Addressing falling production is the short-term challenge for Cairo, which is dealing with an ongoing financial crisis that is causing a drag on new foreign investments. However, Shell, along with partners the Egyptian Natural Gas Holding Company, the Egyptian General Petroleum Corporation, and Petronas, have signed an agreement to commence development of the tenth phase in the Nile Delta offshore West Delta Deep Marine concession in the Mediterranean Sea, which should see new drilling start before the end of this year. (Zawya, Oil and Gas Middle East) 

Greenpeace questions the need for new French floating terminal: An investigation by Greenpeace France has found that the Le Havre floating storage and regasification unit (FSRU), being developed by TotalEnergies with 5 billion cubic meters per year of import capacity, is not necessary to meet France’s energy security needs. The campaign group deems that the project, proposed for development during Europe’s gas infrastructure development rush last year and due to come online for five years starting this September, is inconsistent with climate and environmental commitments and that the country already has sufficient LNG regasification capacity. Support from the French government for the project is unwarranted, according to Greenpeace, unless proof of the need for additional LNG imports is provided. The group also flagged that proper public debate about the project has been suppressed due to the non-publication of an impact assessment. (Greenpeace France [Pdf], GEM.wiki)

Fossil gas fails to pass in Australia: A meeting of Australia’s federal and state energy ministers has rejected a proposal to officially rename “natural gas” as “fossil gas” or “methane.” Shane Rattenbury, the energy minister of the Australian Capital Territory, made the proposal on the grounds that “Because it’s called natural gas, it’s perceived as a solution for climate change rather than a driver.” However, a majority of the assembled energy ministers, many of whom represent states with significant gas dependency and interests, failed to get behind the idea put forward by the country’s only energy minister belonging to the Australian Greens. (Renew Economy, The Guardian)

German town plans legal action over LNG terminals: As the costs of Germany’s emergency purchasing of non-Russian gas last year were revealed to total €7 billion (US$7.85 billion), involving estimated additional costs of €120 for every German household, the Bundestag has passed amendments to the national LNG Acceleration Act on Friday that allow the fast-tracking of the construction of two LNG floating terminals in Mukran on the Baltic Sea island of  Rügen, a popular holiday destination. The German parliament vote saw 370 parliamentarians in favor of the 10 billion cubic meters Deutsche Regas development, with 301 opposed and four abstentions. In reaction to the developments, the mayor of Binz, a town on Rügen, has said it will take legal action against the federal government. (Euractiv, Reuters, Offshore Technology)

Australia: The Western Australian Environmental Protection Authority is reportedly set to defy appeals from scientists and activists and grant a license extension to 2070 for Woodside Energy’s North West Shelf LNG Terminal that has been operating since 1989.

Azerbaijan: BP has discovered an unspecified quantity of gas beneath its existing Azeri-Chirag-Gunashli oil field in the Caspian Sea that could be used to boost Azerbaijan’s exports to Europe.

China: Hong Kong’s first FSRU LNG import facility has started commercial operations.

Russia: Amid lower crude prices and capped gas flows to Europe, Russian finance ministry data has shown that the country’s oil and gas budget revenues fell by 47% to 3.38 trillion roubles (US$37.4 billion) in the first half of the year compared to the same period in 2022.

Spain: Despite pleas from the government in March urging importers not to sign new deals for the purchase of Russian LNG, government data showed that Russia provided 27.9% of Spain’s gas imports in May, up from 11.9% a year earlier.

UK: Rosebank, the largest undeveloped oil and gas field in the North Sea, is facing a delay in regulatory approval due to concerns about electrification and net-zero compatibility across the industry.

U.S.: The third final investment decision (FID) for a large LNG export project in the U.S. this year has been taken by NextDecade for Phase 1 of the Rio Grande LNG terminal in Texas. 

Vietnam: FID has been taken on the US$1.3 billion Son My LNG import terminal, a joint venture of PetroVietnam Gas and U.S. company AES.

TotalEnergies advances in Iraq, Algeria, and Azerbaijan: A US$27 billion energy deal, known as the Gas Growth Integrated Project (GGIP), has been formally signed between Iraq and France’s TotalEnergies after two years of delays. The GGIP comprises four oil, gas, and renewable energy projects that are intended to improve Iraq's electricity supply, including the recovery of flared gas at three oilfields that will be used to supply power plants. The deal, which will include participation from regional and American companies, was hailed by U.S. National Security Advisor Jake Sullivan as “a major step towards both establishing Iraq’s energy self-sufficiency and meeting its climate goals.” The French energy company has also agreed with Sonatrach to boost Algerian production at two gas fields from current levels of 60,000 barrels of oil equivalent (boe) per day to 100,000 boe per day by 2026. In Azerbaijan, TotalEnergies and SOCAR have started production on the first phase of the Absheron gas and condensate field in the Caspian Sea. (Reuters, Reuters, Reuters, Reuters)   

EBRD plans to remain open to gas: A new Energy Strategy for the European Bank for Reconstruction and Development (EBRD), open for public consultation and comment until mid-September, leaves the door open for the multilateral development bank to continue to provide financing for midstream and downstream gas. The draft strategy from the EBRD, which no longer provides financing for coal or upstream oil in its countries of operations, states that the bank will be able to provide gas sector financing “in exceptional circumstances.” Odile Renaud-Basso, the EBRD’s president, has explained the policy stance as a way for the bank to help wean low-income countries off coal, citing for instance the EBRD’s participation in project financing for the conversion of a coal plant to gas power in Kazakhstan. Renaud-Basso acknowledged that the EBRD’s intention to not cut off gas entirely was the subject of “a lot of discussion.” (EBRD, Devex)

Gunvor makes first investment in LNG carriers: In a further indication of the growing prominence of commodity traders in LNG markets, Swiss-based Gunvor Group has announced that it is making its first direct equity investment into LNG tankers via partnership with Celsius Tankers. The companies are combining to charter four “highly efficient” LNG carriers that will be built by China Merchants Heavy Industry and will be delivered during 2026 and 2027. Gunvor said that it was investing in two of these new ships. “These vessels are in line with Gunvor’s commitment to cut Scope 1 and 2 emissions by 40% by 2025,” said Kalpesh Patel, Gunvor’s co-head of LNG. “We have further committed to convert 100% of our fleet to eco-vessels by 2027.” (Gunvor Group)

Global LNG export capacity up in 2022 finds IGU: The latest annual edition of the World LNG Report from the International Gas Union (IGU) has recorded a 4.3% rise in global LNG export capacity in 2022. Export capacity of 478.4 million tonnes per annum (mtpa) achieved last year was driven by the U.S. with 88.1 mtpa, according to the 79-page IGU report. At the same time, 2022 saw a drop in approved liquefaction capacity from 50 mtpa in 2021 to 25.2 mtpa in 2022. The IGU also noted 19.3% and 17.7% declines respectively in Chinese and Indian LNG import volumes for 2022 due to higher flows to Europe stemming from massive demand from European buyers compelled to seek gas from non-Russian sources. (International Gas Union [Pdf])

Walk With Us, Market Forces, July 2023. 
This documentary video tells the story of Gomeroi and Tiwi Islands Traditional Owners who are resisting the Narrabri and Barossa gas projects promoted by Santos, a major Australian energy company that continues to receive financing from the country’s big four banks.