Energy News to 16/11/22. OPEC daily basket price stood at $91.16/bl, 15 Nov. 2022
IEA Oil Market Report (OMR) forecasts Demand growth will slow to 1.6 mb/d in 2023, down from 2.1 mb/d this year, as mounting economic headwinds impede gains.
The world must move quickly to reduce carbon dioxide emissions from coal significantly in order to avoid severe impacts from climate change, a new IEA report says, calling for immediate policy action to rapidly mobilise massive financing for clean energy alternatives to coal and to ensure secure, affordable and fair transitions, especially in emerging and developing economies. The new IEA special report – Coal in Net Zero Transitions: Strategies for Rapid, Secure and People-Centred Change – provides the most comprehensive analysis to date of what it would take to bring down global coal emissions rapidly enough to meet international climate goals while supporting energy security and economic growth, and addressing the social and employment consequences of the changes involved. This includes the major implications for the coal sector of a transition to net zero emissions by 2050, which would give the world an even chance of limiting global warming to the critical threshold of 1.5°C. Read More
YouGov poll reveals scale of energy bills concern as NEW report sets out “oven-ready, cost neutral” energy efficiency strategy to support most vulnerable after Energy Price Guarantee ends
New YouGov polling released ahead of the Autumn Budget reveals the overwhelming majority of Brits are worried about paying their energy bills once the Government’s Energy Price Guarantee scheme ends in March
Reports suggest the Chancellor plans to slash energy support for Brits as part of an Autumn Budget focused on tax rises and spending cuts
New report from the UK’s only network of climate-ambitious council leaders and mayors, UK100, sets out a plan to redesign an existing Government scheme to reduce bills for some of the most vulnerable households
The proposed redesign would see a locally-led social housing energy efficiency scheme reduce bills by an estimated £1,500 annually
YouGov polling shows more than two-thirds of Brits would support a scheme that targeted energy efficiency support to social housing tenants
UK100 report endorsed by local leaders and leading academics
The UK100 intervention is the latest in the organisation’s “End the wait. Insulate.” campaign
Ahead of the Autumn Budget on Thursday [17 November], a new YouGov poll reveals most Brits are either “very worried” (38%) or “fairly worried” (37%) about their energy bills following the Chancellor’s decision to end the current Energy Price Guarantee in April 2023.
The poll — commissioned by UK100, the UK’s only network of climate-ambitious local leaders and mayors — lands amidst reports Jeremy Hunt is looking to slash energy bill support and warning that all Brits face tax hikes.
With average household energy bills estimated to rise above £3,000 a year in 2023, the Government has faced criticism from across the political spectrum, industry, and academia for its failure to invest in a domestic energy efficiency programme to help reduce household bills in the near- and long-term.
In 2019, the Conservative Party manifesto pledged over £9 billion to domestic energy efficiency, but — three years and three Prime Ministers later — most Brits (75%) polled by YouGov are unclear on the Government’s energy efficiency plans.
UK100 has been amongst the loudest voices calling for energy efficiency and demand reduction to be a central part of the Government’s response to the energy crisis. And the network claims it has an “oven-ready, cost-neutral” plan to help the Chancellor reduce energy bills for some of the most vulnerable in Britain.
In a new report released today, UK100 outlines a plan the Government can implement to roll out an urgent social housing energy efficiency programme to reduce energy bills by up to £1,500 a year for tenants and kick-start a nationwide domestic energy efficiency drive.
The good news for the Chancellor is that the mid-term plan (2022 to 2028) laid out in the End the wait. Insulate. Social housing energy efficiency and the energy crisis report won’t cost a penny more than has already been pledged to social housing energy efficiency spending.
And an energy efficiency plan focused on social housing is something Brits would support by a ratio of more than 5:1 (69% support, 13% oppose), according to the YouGov poll released today.
UK100’s report recommends that a government-funded scheme introduced in 2021 is redesigned to turbo-boost its effectiveness. The Social Housing Decarbonisation Fund works by inviting local authorities to compete for funding to upgrade the energy efficiency of the social housing stock in their communities. Read More
Starting in November 2022, the company Lhyfe and the municipality of Härjedalen will be exploring the conditions for production of green and renewable hydrogen gas in Härjedalen. This so-called feasibility analysis will be presented early next year. The results will determine whether a more detailed project feasibility study goes ahead. Read More
The Volkswagen Group is driving forward its transformation into a mobility provider and is entering into a partnership with car sharing company MILES Mobility. In this regard, MILES Mobility has acquired UMI Urban Mobility International GmbH from Volkswagen Passenger Cars and with it the WeShare car sharing business and will integrate it into its existing portfolio. Both parties have agreed not to disclose the purchase price. Also in the context of the new partnership, MILES has ordered more than 10,000 all-electric vehicles from the Audi, Seat/Cupra and Volkswagen Passenger Cars brands, which are scheduled for delivery from 2023. In this way, Volkswagen aims to participate even better in the rapidly growing market for new mobility services, offering greater choice to its customers at the same time.
“New mobility services such as car subscription models and car sharing are enjoying strong demand. This is a trend in which we would like to participate more. With a strong partner to operate the fleet and with vehicles from various Volkswagen Group brands, car sharing will become available to an even broader spectrum of customers. We are pleased to have found the perfect partner in MILES, whose portfolio will be bookable via the Volkswagen mobility platform. WeShare customers will then benefit from car sharing services in eight German cities,” says Dr. Christian Dahlheim, Chairman of the Board of Volkswagen Financial Services AG, which holds consolidated responsibility for the Volkswagen Group’s core activities in the field of mobility solutions. Read More
Volkswagen AG announced its goal of making its data center operations net carbon-neutral by 2027. To achieve this goal, the Group has expanded its computing capacities at Green Mountain, a Norwegian operator of CO₂-neutral data centers. With this expansion, one quarter of Volkswagen’s global data center operations will run carbon-neutrally. This corresponds to annual CO₂ savings of 10,000 tons.
Accelerating its decarbonization strategy, Volkswagen AG has set itself the ambitious goal to make its data centers net carbon-neutral by 2027. This would be three years earlier than foreseen in the European Green Deal, under which European data center operators agreed to make their data centers climate-neutral by 2030. To achieve this goal, Volkswagen has expanded its data center operations at Green Mountain, a Norwegian operator of CO₂-neutral data centers. All servers at Green Mountain run on 100% renewable electricity generated by hydropower and are cooled naturally by the adjacent fjord. Read More
Germany completes construction of its first floating LNG terminal. Germany has completed construction of its first floating terminal to receive liquefied natural gas (LNG), which its economy minister said would be vital to securing energy supplies to the country over the winter months.A pier at Wilhelmshaven has been expanded to provide a mooring place for a floating storage and regasification unit (FSRU), the central component for transporting LNG via sea and transferring it to land. Before the end of this year, the first FSRU is due to be in operation to regasify LNG, arriving on special tankers from around the world. The first FSRU, the Esperanza, is expected to arrive with a full load in about a month and to be unloaded. Read More
The Russian government has approved Japan’s Sakhalin Oil and Gas Development Co., or SODECO’s participation in the new operator of Sakhalin 1 oil, gas project, Japan’s Chief Cabinet Secretary Hirokazu Matsuno said Nov. 15, a move Tokyo sees significant for the country’s energy security. “We are aware about the Russian government’s decision to approve SODECO’s participation in the new Sakhalin 1 company,” Matsuno told a press conference. “We see this decision extremely significant from the perspective of our country’s mid- to long-term stable energy supply.” Japan sees an equity stake … Read More
EPIC Crude Holdings, LP today announced that Platts will include the Company’s Crude Marine Terminal in Corpus Christi as a pre-approved terminal for WTI Midland crude oil in its Platts Dated Brent and Cash BFOE* Market-on-Close (“Dated Brent”) price assessment beginning with June 2023 deliveries.
Dated Brent is the world’s leading crude benchmark and a critical component of the Brent Complex which includes the trading of physically delivered oil as well as financially settled derivatives. WTI Midland will be the first non-North Sea grade of oil to be included in Dated Brent and will only reflect WTI Midland cargoes loaded from pre-approved terminals. “EPIC is honored to be accepted by Platts to deliver WTI Midland crude oil into the Brent Complex,” said Brian Freed, Chief Executive Officer of EPIC. “This addition recognizes the strict export quality grade crude oil EPIC delivers, and further highlights the strategic importance of Corpus Christi in meeting the global energy demands.”
EPIC Crude delivers up to 600,000 barrels per day of crude oil from it’s ~3.5 million barrel Robstown Terminal to export terminals and refineries in Corpus Christi and Ingleside, including EPIC’s Crude Marine Terminal capable of loading Aframax-sized tankers. Read More
A Just Stop Oil supporter who went on hunger strike last Friday to demand that the government end new oil and gas, has been unexpectedly moved to the hospital wing as prison staff became increasingly concerned for their health.
Tez Burnes (they/them), 34, a bicycle mechanic from Swansea was remanded to Bronzefield prison on Friday 11th November after being arrested for taking part in the Just Stop Oil actions to disrupt the M25 motorway by climbing on the overhead gantries. They started an immediate hunger strike, which resulted in rapid weight loss and low blood sugar levels. Tez was among a total of 65 people arrested as a result of the four consecutive days of actions by Just Stop Oil on the M25 last week, the biggest act of civil resistance undertaken in the UK in a generation. 31 of those arrested were remanded to prison, 32 were released on bail and 2 were released with no further action. Read More
Nel Hydrogen US, a subsidiary of Nel ASA (Nel, OSE: NEL), has entered into a joint development agreement with General Motors (NYSE: GM) to help accelerate the industrialization of Nel’s proton exchange membrane (PEM) electrolyser platform. By combining GM’s extensive fuel cell expertise and Nel’s deep knowledge of electrolysers, the two companies are looking to enable more cost competitive sources of renewable hydrogen.
“General Motors is one of the global leaders in hydrogen fuel cell propulsion with more than 50 years of experience. We believe this collaboration will give us a competitive advantage in industrializing the production of our PEM electrolysers and further improving the efficiency of our technology,” said Nel’s CEO, Håkon Volldal.
“Adding Nel as a strategic collaborator is an important step to help us commercialize fuel cell technology. Electrolysis is key to creating consistent, clean sources of hydrogen to power fuel cells,” said Charles Freese, GM executive director, Global HYDROTEC. “Nel has some of the most promising electrolyser technology to help develop clean hydrogen infrastructure, and we believe our HYDROTEC fuel cell IP can help them get closer to scale.”
Nel was the first company in the world with a fully automated alkaline electrolyser production line. The next step will be to industrialize the production of its PEM electrolyser equipment in a similar way which will enable considerable technology advancement. Read More
Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA (Nel, OSE:NEL), has signed a NOK 120 million contract for alkaline electrolyser equipment with a high quality North European energy company. The contract also includes front-end engineering and design (FEED) study related to the deliveries.
This contract is for alkaline electrolyser equipment and related FEED, and includes pass-through mechanisms for steel and nickel price adjustments. Production of electrodes is estimated to be completed by end-2023. Read More
During the period from November 7 to November 11, 2022, Eni acquired n. 13,829,184 shares, at a weighted average price per share equal to 14.1638 euro, for a total consideration of 195,874,355.52 euro within the authorization to purchase treasury shares approved at Eni’s Shareholders’ Meeting on 11 May 2022, previously subject to disclosure pursuant to art. 144-bis of Consob Regulation 11971/1999.
On the basis of the information provided by the intermediary appointed to make the purchases, the following are details of transactions for the purchase of treasury shares on the Euronext Milan on a daily basis: Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $87.11 | Up |
| Crude Oil (Brent) | USD/bbl | $94.32 | Up |
| Bonny Light | USD/bbl | $93.14 | Down |
| Saharan Blend | USD/bbl | $94.82 | Down |
| Natural Gas | USD/MMBtu | $5.97 | Down |
| OPEC basket 15/11/22 | USD/bbl | $91.16 | Down |
ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, today signed a memorandum of Understanding (MoU) with The Sovereign Fund of Egypt (TSFE) to explore a joint investment in the 1.1 GW Wind Energy project, located in the Gulf of Suez in Egypt.
The MoU was signed at COP27 in Sharm El Sheikh by Karim Badr Chief Executive Officer, TSFE Infrastructure & Utilities Subfund; Yasir Mahmoud, Executive Vice President – Business Development, ACWA Power; Hassan Amin, Country Director- Egypt, ACWA Power, in the presence of Egypt Electricity Transmission Committee (EETC) delegates, Egypt’s New and Renewable Energy Authority delegates and other senior executives.
Per the terms of the MoU, ACWA Power and TSFE will now engage in discussions for TSFE’s Infrastructure & Utilities Subfund to own up to 10% of the project. Currently, project investors include Hassan Allam Holdings, an Egyptian engineering, construction and infrastructure company (25% stake) and ACWA Power. The Oman Investment Authority, the Sultanate’s sovereign wealth fund, recently signed a similar agreement with ACWA Power, to have an equity stake of up to 10% of the same facility.
This is the first instance of The Sovereign Fund of Egypt (TSFE) investing in ACWA Power’s Egyptian or worldwide portfolio. The company has had a presence in Egypt since 2015 and has developed the 120 MW PV project in Benban, a 200 MW PV facility in Kom Ombo, along with Suez Wind Energy, which will be the largest single contracted wind farm, and largest wind related public private partnership in Africa to date. Furthermore, ACWA Power has also signed a memorandum of understanding to develop another 10 GW wind project with Egyptian Electricity Transmission Company (EETC), which is likely to be developed in phases. Read More
Neptune Energy and its licence partners today announced that hydrocarbons have been encountered in the Calypso exploration well in the Norwegian Sea, located within the Neptune-operated PL938 Licence.
Having entered the reservoir, logs proved the presence of hydrocarbons. Additional data gathering of the reservoir will now be considered.
The operations in the reservoir section remain at an early stage and it has yet to be confirmed if commercial volumes are present.
The Calypso prospect is located within one of Neptune’s core areas on the Norwegian Continental Shelf, 14 kilometres north-west of the Draugen field and 22 kilometres north-east of the Njord A platform.
Calypso is being drilled by the Deepsea Yantai, a semi-submersible rig owned by CIMC and operated by Odfjell Drilling.
Partners: Neptune Energy (operator, 30%), OKEA ASA (30%), Pandion Energy AS (20%) and Vår Energi ASA (20%) Read More
OSEA returns in 2022 as an in-person event at the forefront of offshore oil, gas and emerging zero carbon energy sources. Embracing decarbonisation and digitalisation, a refreshed tradeshow and conference will keep the focus on developments in oil and gas and also showcase opportunities in offshore wind and hydrogen. Read More
KBR, Inc. (NYSE: KBR) announced today its participation in upcoming investor conferences.
Baird’s 2022 Government & Defense Conference: Byron Bright, President, Government Solutions U.S., Mark Sopp, Executive Vice President & Chief Financial Officer, and Jamie DuBray, Vice President of Investor Relations, will participate in a fireside chat on Thursday, November 17, 2022 at 12:45 p.m. ET.
Credit Suisse 10th Annual Global Industrials Conference: Byron Bright, President, Government Solutions U.S., Mark Sopp, Executive Vice President & Chief Financial Officer, and Jamie DuBray, Vice President of Investor Relations, will participate in a fireside chat on Wednesday, November 30, 2022 at 10:15 a.m. ET.
Truist Securities Industrials and Services 4th Annual Summit : Byron Bright, President, Government Solutions U.S., Mark Sopp, Executive Vice President & Chief Financial Officer, and Jamie DuBray, Vice President of Investor Relations, will participate in investor meetings on Tuesday, December 6, 2022. Read More
Tullow Oil plc (Tullow) issues the following statement to provide an update on its ongoing operations and expectations for the full year. The information contained herein has not been audited and may be subject to further review and amendment. OPERATIONAL UPDATE
Production
Group net working interest production averaged c.61.8 kboepd to end October 2022, in line with guidance.
Full year production guidance for 2022 narrowed from 60-64 kbopd to 61-62 kbopd.
Jubilee
Jubilee production to end October was c.32.1 kbopd net to Tullow (gross c.84.5 kbopd).
Four wells have been brought onstream this year; two new water injectors, a new producer and a previously drilled water injector.
Two new Jubilee South East production wells are planned to be drilled before year end, and a further two wells (one producer and one water injector) are planned to be drilled in the first half of 2023; these four wells are expected to be brought onstream in 2023 and are expected to add material production in 2023 and beyond.
Continued strong operating performance since Tullow took over Operations & Maintenance of the Jubilee FPSO, with uptime of over 98%.
TEN
TEN production to end October was c.12.6 kbopd net to Tullow (gross c.23.8 kbopd).
Two wells have been brought onstream this year; a new Enyenra producer and a previously drilled Enyenra water injector, helping to offset natural decline in the Enyenra field.
The second of the two wells drilled in the Ntomme riser base area (Nt11-P) found poorer than expected reservoir quality and did not encounter economically developable resources.
The Joint Venture (JV) partners continue to evaluate the results of these wells to optimise future drilling plans on the TEN fields. Read More
2022 Deepwater Executive Summit
The only event dedicated to the strategic insights of operators
The Deepwater Executive Summit will bring the Gulf’s most active companies together for shared learning, best practices, and networking.
This one-day conference will include the following:
Strategic Insights from Majors
Strategic Insights from Independents
Five Hours of Networking
Deepwater Trends (Energy Transition & CCS)
Project Updates, Best Practices
The comprehensive agenda is tailored to include the perspectives of both Majors and Independents. bp, Equinor and Shell will deliver the perspective of the Majors, and the role of the Gulf in their long-term plans. Meanwhile, Beacon Offshore, LLOG, and Talos Energy will share the perspective of Independents. Start Date: Thursday, November 17, 2022 End Date: Friday, November 18, 2022 Read More
Baker Hughes Rig Count
U.S. Rig Count is up 9 from last week to 779 with oil rigs up 9 to 622, gas rigs unchanged at 155 and miscellaneous rigs unchanged at 2. Canada Rig Count is down 9 from last week to 200, with oil rigs down 8 to 133, gas rigs down 1 to 67.
| Region | Period | Rig Count | Change |
| U.S.A | 11 November 2022 | 779 | +9 |
| Canada | 11 November 2022 | 200 | -9 |
| International | October 2022 | 911 | +32 |
EVIOS is proud to have won three prestigious awards in October, with special individual ‘Rising Star’ recognition for Marketing Director, Evie Kalo.
At the UK Business Tech Awards which celebrate the UK’s finest tech businesses, EVIOS was presented with the Best Tech Start-Up Award, with the celebrations continuing as the announcement was made that Evie Kalo had won the esteemed Rising Star award. The presentations were made at a gala dinner and awards ceremony in London on 20th October 2022. With a number of categories across multiple business sectors, the UK Business Tech Awards reward innovative and exceptional application of technology that is important to developing the future, especially recognising tech that has added tangible benefits to the customer experience. Judged by an independent panel of leading technology experts, receiving a UK Business Tech Award is considered ‘the ultimate testimony to work and skills’. Read More
Golar LNG Limited reports Net income of $141.1 million and Adjusted EBITDA1 of $85.2 million for Q3 2022 (“Q3” or “the quarter”).
FLNG Hilli customer elected to exercise optional capacity of 0.2 million tons per annum (“MTPA”) of Dutch Title Transfer Facility (“TTF”) linked production from 2023 to 2026.
Entered into swap arrangements to hedge approximately 50% of Golar’s exposure to TTF linked FLNG Hilli production for Q4 2022, 100% of Golar’s exposure to 2023 TTF linked production, and 50% of Golar’s exposure to 2024 TTF linked production.
Sold 8.0 million shares in Cool Company Ltd. (“CoolCo”) and 6.3 million shares in New Fortress Energy Inc. (“NFE”), raising net proceeds of $430 million in November.
Strong customer development for FLNG growth projects, including working with upstream company for potential integrated FLNG project, and paid development agreements with a supermajor and an independent E&P company for new FLNG opportunities.
Ordered long-lead items for a new Mk II 3.5MTPA FLNG for delivery in 2025.
FLNG operations: Distributable Adjusted EBITDA1 from FLNG Hilli increased by $1.9 million from $92.5 million in Q2 2022 to $94.4 million in Q3, of which Golar’s share was $64.1 million, compared to $62.5 million in Q2. FLNG Hilli’s scheduled maintenance window during the quarter was extended by several days as a result of unscheduled maintenance work. Accruals for overproduction during Q1 and Q2 2022 amounting to $14.4 million were reversed and an estimated $0.9 million of revenue reduction due to demurrage delays was incurred in Q3. After receiving instruction that FLNG Hilli should continue to produce 0.2MTPA of TTF linked production from 2023 until the end of the current contract in July 2026, Golar entered into three swap transactions collectively securing, subject to vessel availability, around $250 million of incremental earnings attributable to Golar:
August 9, 2022: Hedged 50% of Golar’s 2023 exposure to FLNG Hilli’s TTF linked production at a TTF price of $49.50/MMBtu, the energy equivalent of $291 Brent oil.
August 24, 2022: Hedged 50% of Golar’s 2024 exposure to FLNG Hilli’s TTF linked production at a TTF price of $51.20/MMBtu, the energy equivalent of $301 Brent oil.
September 2, 2022: Hedged the remaining 50% of Golar’s exposure to FLNG Hilli’s 2023 TTF linked production at a TTF price of $50.50/MMBtu and 50% of its Q4 2022 exposure at a TTF price of $70.0/MMBtu, the energy equivalent of $297 and $412 Brent oil respectively.
Including the Brent oil forward curve for 2023 ($88/bbl), the hedged TTF exposure, and the fixed tariff, Golar’s share of Distributable Adjusted EBITDA1 from FLNG Hilli is expected to be approximately $295 million in 2023. Golar’s share of forecast 2023 total annual debt service for FLNG Hilli’s contractual debt is approximately $50 million (debt amortization of approximately $29 million and interest of approximately $21 million). This should therefore generate free cash to Golar of approximately $245 million.
FLNG Gimi construction: Conversion of FLNG Gimi for its 20-year contract with BP scheduled to commence in Q4 2023 was 90% technically complete on November 15, 2022, on track for a 1H 2023 sail away. Pre-commissioning of equipment has commenced. Once commissioned and delivered to the customer in Q4 2023, FLNG Gimi is expected to unlock around $3 billion of Earnings Backlog1 to Golar, equivalent to $151 million in annual Adjusted EBITDA1. Read More
Kent, a leading engineering company in oil and gas and low-carbon energy, has secured a three-year framework contract for Structural Integrity Analysis Modelling Services for INEOS UK SNS Ltd. Kent will support the safe and sustainable structural integrity management of existing offshore facilities at the Breagh Alpha and Clipper South platforms in the Southern North Sea. INEOS will benefit from Kent’s depth of knowledge, which comes from over forty years of experience in supplying structural integrity and analysis services. Kent will support INEOS through use of their proprietary structural analysis modelling and post-processing tools.
The contract will be led by Kent’s Aberdeen office and will benefit from the depth of experience of their large global offshore structures business, network of technical experts and their industry-leading subject matter experts. Read More
OilandGasPress Energy Newsbites and Analysis Roundup | Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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