Energy News Digest, Oil and Gas, 31st Jan. 2022. OPEC daily basket price stood at $90.20 a barrel on Fri, 28 January 2022

IEA revised up its 2022 oil demand forecast by 200,000 bpd. $90 oil prices now a reality! JP Morgan earlier this month reportedly warned that Brent could rise to $125 per barrel

bp joins more than 260 companies in a letter to congressional leadership urging action on the Build Back Better Act. bp previously joined a broad group of businesses to support robust climate provisions in the budget reconciliation bill in a letter to congressional leadership. Read More

Nel Hydrogen US, a subsidiary of Nel ASA (Nel, OSE:NEL), has received orders for multiple PEM electrolyzers to provide green hydrogen for sustainable carbon negative food production. Nel Hydrogen US has received a contract for PEM electrolysis hydrogen production units to be delivered to a leader in the commercialization of sustainable protein technology. This application for green hydrogen is a novel and exciting approach to addressing both climate change and food production for the developing world. “This project represents an important opportunity to showcase a green hydrogen solution that supports carbon reduction in the food production industry. We are thrilled to be working with a progressive and visionary leader in this sector”, said Tom Skoczylas, Sales Manager for Nel Hydrogen US. The purchase orders have a value of approximately USD 5 million, and deliveries of the equipment will be staggered over the remainder of 2022, and into 2023. Read More

THE JET ZeroEmission announced that it has inked an agreement with Zenith Marine Services LLC, a UAE based company; and DWYN LLC to manufacture and operate ‘THE JET’ – the first clean-energy, hydrogen-powered flying boat.THE JET ZeroEmission is a hydrogen powered boat with iconic design and high-end positioning. A one-of-a-kind boat in the world, both innovative and respectful of the environment: zero emission, zero wave, zero noise, “flying” 80cm above the waters at a speed of 35-40 knots. The boat’s world premiere will reportedly be held in Dubai. Read More

INEOS is today taking the next significant step in its Road Map to deliver a sustainable, Net Zero carbon future at Grangemouth, by inviting major engineering design contractors to tender for the next stage of the design of a world scale carbon capture enabled hydrogen production plant and major associated infrastructure. Read More

Specialty chemicals company LANXESS, and Matrìca, JV between Versalis (Eni) and Novamont, have partnered to produce sustainable biocide preservatives from renewable raw materials. Starting in January 2022, the Matrìca plant at Porto Torres (Sardinia) will supply LANXESS with bio-based raw materials from vegetable oils, which LANXESS will use to manufacture a new series of industrial preservatives broadening its Preventol range. With this partnership, both companies aim to significantly advance the production of sustainable preservatives and address the markets’ growing demand. The new Preventol preservatives are designed for consumer products such as household cleaners, laundry care and dishwashing products as well as paints and coatings. Read More

Revised start-up date for Hammerfest LNG. Due to continuing consequences from Covid-19 and operational restrictions the time of start-up of the plant is pushed from 31 March 2022 to 17 May 2022. The previous estimate for the start-up date was given with uncertainty particularly related to the development of the Covid-19 pandemic. Read More

Africa Oil Corp. announced a number of positive amendments to its Corporate Facility. All lenders have approved increasing the available amount to $100 million from the current unutilised amount of $62 million, and extending the availability period to December 31, 2022, from May 13, 2022. The Corporate Facility maturity date of May 13, 2024, and interest margins are unchanged. The lenders have also waived certain conditions in support of the Company’s plans to implement a shareholder returns program, and have agreed to release their security over the Company’s shares in Africa Energy Corp., Eco (Atlantic) Oil & Gas Ltd. and Impact Oil and Gas Limited. The Corporate Facility was signed on May 13, 2021, for an amount of up to $150 million. The facility and commitments were subsequently increased to $160 million with $98 million drawn, to repay the Company’s Term Loan arranged in January 2020, for the acquisition of a 50% shareholding in Prime Oil & Gas Cooperatief UA (“Prime). The Company has repaid the balance of $98 million from the dividends received from Prime and is currently debt-free. Read More

Lake Resources NL is providing a clean solution to the delivery of high quality lithium into the tight supply chain of battery materials powering the energy transition. Lake uses disruptive, direct extraction technology from its partner, Lilac Solutions Inc in California (Lilac), for efficient production of high purity lithium with significant ESG benefits. No mining is involved in the brine processing.

Production from the flagship Kachi Lithium Brine Project is targeted to commence in 2024 at a rate of 50,000 tpa lithium carbonate. Kachi is indicatively financed into production with long dated low cost project finance from the UK Export Finance and Canada’s EDC for approximately 70% of the total finance required for Kachi’s development, subject to standard project finance terms. Read More

Okapi Resources Limited announced that it has closed its agreement with ALX Resources Corp (a company incorporated in British Columbia) (CVE:AL) to acquire a portfolio of six advanced exploration projects in the world’s premier high grade uranium district, the Athabasca Basin (Athabasca Projects). The Athabasca Projects includes 75 granted mineral claims covering over 55,000 hectares. Importantly, all of the projects are located along the margin of the Athabasca Basin or in the Carswell Impact Structure where depth to the unconformity is relatively shallow being 300 metres or less and typically closer to 100 metres, making them ideal for targeting shallow high-grade uranium deposits. Read More

Commodity PricesUnitsPrice $change
Crude Oil (WTI)USD/bbl$87.42
Crude Oil (Brent)USD/bbl$90.75Up
Bonny LightUSD/bbl$91.38Up
Natural GasUSD/MMBtu$4.90Up
OPEC basket 28/01/22USD/bbl$90.14Down
At press time 31st January 2022

OPEC Secretary General, HE Mohammad Sanusi Barkindo, extended his sincere congratulations to the OPEC Fund for International Development on the occasion of its 46th Anniversary. In a letter addressed to the OPEC Fund’s Director-General, HE Dr Abdulhamid Alkhalifa, the Secretary General stated: “We would like to congratulate Your Excellency and your able staff at the OPEC Fund for your exceptional performance in the successful management of the Fund in accordance with the ideals of the founding fathers in Algiers in March 1975, where the concept for the OPEC Fund was formed at the First Summit of the Sovereigns and Heads of State of the OPEC Member Countries.” Read More

China will, by the end of the year, have more renewable and low-carbon power generation capacity than fossil fuel capacity, the country’s Electricity Council has reported. Reuters reports that China is expected to add 180 GW of new non-fossil fuel power capacity this year, boosting the total to 1,300 GW, running the gamut from nuclear and hydro to wind and solar. This would represent half of the China Electricity Council’s total planned capacity for this year, which stands at 2,600 GW. By the end of the current decade, China has plans to boost wind and solar power capacity alone to 1,600 GW to reduce its pollution levels. The Chinese power industry is responsible for about 41 percent of the country’s total emissions. Read More

RegionPeriodNo. of RigsChange from Prior Count
U.S.A28th January 2022610+6
Canada28th January 2022217+5
InternationalDecember 2021834
Baker Hughes Rig Count

Magnis’ Lithium-ion technology partner, C4V has produced exciting initial results in their Extra Fast Charging battery program with 7Ah (Amp hour) commercial cells using their patented BMLMP Technology. Current results show no capacity loss after 250 cycles with 15 min charge and variable discharge rates. Read More

OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.

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