Energy top stories to 26/09/22. OPEC daily basket price stood at $92.67/bl, 23 Sept. 2022
WTI for November delivery rose 55 cents to $83.49 a barrel at market close in New York.
Brent for November settlement gained 63 cents to settle at $90.46 a barrel.Equity markets fell globally due to interest rate hikes i major economies.
The UK government has lifted a ban on fracking for shale gas in England, even though a review concluded that forecasting related earthquakes “remains a scientific challenge”. Business and energy secretary Jacob Rees-Mogg said strengthening the UK’s energy security is “an absolute priority” in light of “Putin’s illegal invasion of Ukraine and weaponisation of energy”. In a bid to make the UK a net energy exporter by 2040, the country must explore “all avenues available to us through solar, wind, oil and gas production – so it’s right that we’ve lifted the pause to realise any potential sources of domestic gas,” he said.
An International Monetary Fund (IMF) staff team, led by Stéphane Roudet, Mission Chief for Ghana, will visit Accra from September 26 – October 7 to continue discussions with the Ghanaian authorities on policies and reforms that could be supported by an IMF lending arrangement. IMF staff will also further engage with other stakeholders during the visit. Read More
Vestas has signed an agreement with LM Wind Power, a leading manufacturer of wind turbine blades, to develop the wind energy supply chain and scale renewables efficiently for the global energy transition. The agreement includes design and manufacturing of blades for V172-7.2 MW wind turbines of the EnVentus platform.
“This new partnership highlights how we are increasingly collaborating with partners in a flexible setup to scale efficiently and build on the foundations we have established across our global supply chain. We aim to leverage LM Wind Power’s proven and extensive engineering and manufacturing capabilities coupled with their global footprint to support our customers with high-quality sustainable energy solutions meeting all Vestas standards”, says Tommy Rahbek Nielsen, Executive Vice President & Chief Operating Officer of Vestas. Read More
Polimix Energia Ltda has signed an agreement with Vestas for the supply and installation of 23 V150-4.5 MW wind turbines for the Mundo Novo wind park located in São Miguel do Gostoso in the municipality of Rio Grande do Norte in the northeast of Brazil.
Upon completion, Vestas will also deliver a 20-year Active Output Management 5000 (AOM 5000) service agreement. This agreement will optimise energy production while also providing long-term business case certainty.
“We are pleased to announce our partnership with Polimix Energia, one of the largest companies in Brazil who, as Vestas, has a strong commitment to the country’s energy transition. This order highlights the sustainable performance of Polimix Energia as the Vestas wind turbines will power the concrete plants of the Polimix Energia group in the northeast of Brazil. This underlines how our solutions can support energy-intensive industries accelerate their energy transition by powering their operations in a sustainable and cost-effective way”, said Eric Rodrigues Gomes, senior sales director for Vestas Brazil.
Turbine delivery is planned for the third and fourth quarters of 2023, whilst commissioning is expected for the beginning of the second quarter of 2024. Read More–>
Snow Lake Resources Ltd., d/b/a Snow Lake Lithium Ltd. (NASDAQ:LITM) (“Snow Lake Lithium”) has signed a non-binding Memorandum of Understanding (MOU) with LG Energy Solution (LGES: KRX 373220) as a next step towards building the domestic supply chain for the North American electric vehicle market.
Snow Lake Lithium and LGES will collaborate to explore the opportunity to create one of Canada’s first lithium hydroxide processing plants in CentrePort, Winnipeg, Manitoba. Under the terms of the MOU, Snow Lake Lithium will supply LGES with lithium over a 10-year period once production starts in 2025. The MOU and contemplated partnership will be subject to a number of conditions, including the completion of due diligence from both parties.
A scoping study, in partnership with Primero, is already underway to identify the technologies, innovations and skills required to deliver a world-class lithium hydroxide plant within the Manitoba Province. Read More
LG Energy Solution signed separate partnership agreements with three major critical mineral suppliers in Canada. The latest arrangements to secure lithium and cobalt from Snow Lake Resources Ltd., Electra Battery Materials Corporation and Avalon Advanced Materials Inc., are in line with LG Energy Solution’s strategic vision to reinforce its key battery materials supply chain in North America.In a ceremony held on September 22 (EST) in Toronto, Canada, LGES signed a binding term sheet with Electra. Under the terms, Electra will supply 7,000 tons of cobalt sulfate for three years starting in 2023.Electra is known to be the only supplier capable of refining cobalt sulfate in North America.
LGES also signed two non-binding Memorandums of Understanding (MoU) with Avalon and Snow Lake to secure a stable supply of lithium. Under the terms of the MoUs, Avalon will supply LGES with lithium hydroxide(11,000 tons per year) for five years initially, starting in 2025. LGES will also be provided with Snow Lake’s lithium hydroxide (20,000 tons per year) for ten years once the production starts in 2025. Read More
Atlantic Aviation and Avfuel Corporation partnered to substantially increase the supply of Neste MY Sustainable Aviation FuelTM at Atlantic’s FBO at Aspen-Pitken County Airport (ASE) to ensure availability for air operations surrounding the event.
Avfuel and Atlantic Aviation will supplement their continuous supply of SAF with two renewable diesel-powered truckloads of the fuel to Atlantic’s FBO at Aspen-Pitken County Airport (ASE) on September 23 which will be placed in a newly dedicated SAF tank and an “Atlantic Evolve” fuel truck commemorating the occasion.
With one of the highest average blend ratios available in business aviation to date (30/70 SAF to petroleum-based jet fuel), each truckload of Neste MY SAF reduces carbon emissions by 19 metric tons across its lifecycle. With the event’s two truckloads totaling 38 metric tons, this reduction is equivalent to the amount of carbon sequestered by 45 acres of U.S. forests per year. Read More–>
As the Federal Reserve has rapidly increased interest rates, many economists say they fear that a recession is inevitable in the coming months — and with it, job losses that could cause hardship for households already hurt worst by inflation.
Wednesday, the Federal Reserve sharply raised its key short-term rate by three-quarters of a point for a third straight time, even as its previous rate increases are being felt by households at all income levels. The Fed’s latest move has raised its benchmark rate to a range of 3% to 3.25%, the highest level in 14 years. Its steady rate increases have already made it increasingly costly for consumers and businesses to borrow — for homes, autos and other purchases. And more hikes are almost surely coming. Fed officials are expected to signal Wednesday that their benchmark rate could reach as high as 4.5% by early next year. Read More
Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) announced the successful financial closing of their $3.8 billion strategic project to power and significantly decarbonize ADNOC’s offshore production operations.
Together with a consortium comprised of Korea Electric Power (KEPCO), Kyushu Electric Power Company (Kyuden) and Électricité de France (EDF) (the Consortium), this is a first-of-its-kind high-voltage direct current (HVDC) sub-sea transmission network in the MENA region. The innovative project progressed rapidly from concept to development phase with construction starting in early 2022, underscoring both ADNOC and TAQA’s leading positions to drive climate action and support the ‘UAE Net-Zero by 2050 Strategic Initiative’. The Consortium will build, own, operate and transfer the state-of-the-art transmission system alongside ADNOC and TAQA, with the full project being returned to ADNOC after 35 years of operation. Read More
DAL Group, and Air Arabia, the Middle East and North Africa’s first and largest low-cost carrier operator, announced the planned launch of “Air Arabia Sudan”, a joint-venture company to be based in Khartoum International Airport.
Air Arabia Sudan will follow the value-added product offering operated by Air Arabia Group. The ticket pricing model will be best-in-class and accessible to all income-groups, which empowers travelers to save and spend more wherever they may decide by paying for only the services they want.
Air Arabia Sudan will operate a fleet of new Airbus A320 aircraft. All aircraft cabin interiors will be fitted with world-class comfort seats, offering one of the industry’s most spacious economy cabin seat pitches. Air Arabia’s signature online and mobile phone application-based user interfaces, the product experience, from ticket purchase to punctual arrival at the travel destination, will be quick, convenient and reliable.
Based in Khartoum, the new company will adopt the low-cost business model operated by Air Arabia Group across its existing network. Work on securing the relevant approvals and licenses is scheduled to commence shortly. More details regarding route network, fleet size and composition, scheduled services and other matters are expected to be communicated in due course. Read More
Worldwide renewable energy employment reached 12.7 million last year, a jump of 700,000 new jobs in one year despite the lingering effects of COVID-19 and the growing energy crisis, according to a new report. Renewable Energy and Jobs: Annual Review 2022 identifies market dynamics as major factors influencing employment generation in renewables, along with labour and other costs. Solar energy was found to be the fastest-growing sector. In 2021 it provided 4.3 million jobs, more than a third of the current global renewable workforce. The new report was published by the International Renewable Energy Agency (IRENA) in collaboration with the International Labour Organization (ILO) during the Global Clean Energy Action Forum in Pittsburgh, USA. Read More
The Greenhouse Gas Emissions from Energy database, released last August, covers the broad set of estimates of energy-related greenhouse gases, including fugitive emissions and non-CO2 emissions from fuel combustion. As a reference, World CO2 emissions from fuel combustion in 2020 added up to 32.3 Gt CO2 while total GHG emissions from energy totaled 35.5 Gt CO2eq. This represents a decrease of 5.7% compared to 2019 values, for both figures. A large selection of data and indicators can be accessed free of charge in our Highlights publication. Read More
The International Energy Agency and several partners launched a new tool to track financing costs for energy projects around the world with the aim of identifying and addressing risks that have impeded vital investment flows to emerging and developing economies.
The Cost of Capital Observatory was developed by the IEA together with the World Economic Forum, ETH Zurich and Imperial College London. It will be hosted on the IEA’s website and regularly updated with new data, analysis and features. The IEA website will also host an interactive Cost of Capital Dashboard to dig into data for selected countries.
Despite having two-thirds of the global population, emerging and developing economies, excluding China, account for less than one-fifth of global investment in clean energy. One of the key barriers is a high cost of capital, reflecting some real and perceived risks about investment in these economies. Bringing down the cost of capital is a critical lever to attract funds, especially private capital, and policy makers use this information to ensure that investments are remunerated in a fair manner, especially when it comes to sectors or projects that need any kind of government support. Read More
DNV has signed a Memorandum of Understanding (MOU) with the Singapore Institute of Technology (SIT) to explore opportunities to advance net-zero ambitions in Singapore’s maritime sector and actively support the new generation workforce.As part of the three-year partnership, DNV Maritime Decarbonization & Autonomy Regional Centre of Excellence will help spearhead multiple Research & Development (R&D) and educational initiatives in collaboration with SIT’s Sustainable Maritime Read More
Talos Energy Inc. announced the execution of definitive agreements to acquire EnVen Energy Corporation (“EnVen”), a private operator in the deepwater U.S. Gulf of Mexico, for $1.1 billion1. The strategic transaction expands Talos’s Gulf of Mexico operations with high margin, oil-weighted assets, is accretive to Talos shareholders on 2023E Free Cash Flow per Share2 and is immediately de-leveraging.Consideration for the transaction consists of 43.8 million Talos shares and $212.5 million in cash, plus the assumption of EnVen’s net debt upon closing, currently estimated at approximately $50.0 million at year-end 2022. Following the transaction, Talos shareholders will own approximately 66% of the pro forma company and EnVen’s equity holders will own the remaining 34%. The transaction has been unanimously approved by each company’s Board of Directors. Closing is expected by year end 2022, subject to customary closing conditions. Read More
Nissan Motor Co., Ltd. announced it has jointly developed a technology with Tohoku University’s Faculty of Pharmaceutical Sciences that inactivates viruses using catalyst active species for aerobic oxidation. The technology has potential applications for inactivating viruses by oxidizing, denaturing and degrading proteins and other substances on the virus surface. With oxygen in the air acting as an oxidant, the catalyst species produces this effect even under dark conditions at room temperature without requiring light irradiation, as is usually the case with oxidation.
In addition to inactivating viruses — including the novel coronavirus — this technology can also inactivate pathogens such as fungi and bacteria. It has the potential for wide-ranging applications in the future, including use as antibacterial and antiviral base materials in filters for air conditioning equipment and air purifiers, as well as in masks and medical textile products. This technology utilizes organic nitroxyl radical oxidation catalysts (radical catalysts). They oxidize organic compounds in the presence of appropriate co-catalysts using molecular oxygen in ambient air acting as a terminal oxidant. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $77.33 | Down |
| Crude Oil (Brent) | USD/bbl | $84.59 | Down |
| Bonny Light | USD/bbl | $87.59 | — |
| Saharan Blend | USD/bbl | $87.05 | — |
| Natural Gas | USD/MMBtu | $6.80 | Down |
| OPEC basket 23/09/22 | USD/bbl | $92.67 | Down |
Commodities depending on supply from Russia and the Black Sea have risen strongly during the past 24 hours after President Putin announced plans to step up the country’s war in Ukraine. European natural gas prices trade back above 200 euro per MWh with the cost of diesel also receiving a bid. Equally concerning is a fresh spike in wheat prices at the exchanges in Chicago and Paris with traders worrying the UN supported export corridor from Ukraine could be at risk, thereby lowering supply to a global market already concerned about the availability of high-protein wheat.
An increasingly desperate, and with that an increasingly dangerous, President of Russia has ordered the mobilization of reservist troops to ‘protect’ Russia’s territorial integrity. A territory which President Putin would like to see include the self-proclaimed republics of Luhansk and Donetsk, and the Moscow-controlled regions of Zaporizhzhia and Kherson, where people in the coming days will vote on whether to become part of Russia.
The news and threat of escalating the war sent the Moscow MICEX index down by more than 10% and weakened the euro, the latter already under some nervous pressure ahead of today’s expected 75-100 basis point rate hike from the US Federal Reserve. Commodities depending on supply from Russia and the Black Sea region have responded by trading higher with particular focus on gas, diesel and not least wheat. Read More
Chevron New Energies International Pte, Ltd. (Chevron), and Mitsui Oil Exploration Co., Ltd (MOECO) today announced the signing of a Joint Collaboration Agreement to explore the technical and commercial feasibility of advanced geothermal power generation in Japan.
Building on Chevron and MOECO’s long-standing relationship, the new collaboration will study geothermal resource potential across Japan and will evaluate the effectiveness of Advanced Closed Loop (ACL) technology for a future joint pilot project in Japan. Both companies may also assess potential collaboration for advanced geothermal technology opportunities using ACL globally.
Unlike conventional geothermal projects, which use traditional steam turbines requiring high temperatures often found in concentrated locations limited by geological characteristics, ACL can potentially enable access to geothermal resources at a wider range of temperatures and geologies through the application of alternative technology above and below the surface. Read More
India’s first green hydrogen fueling station, being set up at Leh in the Union Union Territory of Ladakh, is all set to be commissioned before May next year. The first-of-its-kind project is being set up by state-run NTPC.The power generator had awarded the contract for the project to Amara Raja Power Systems, part of the $1.3 billion Amara Raja Group, in June. Read More
Vintage Energy Ltd , 50% interest holder and Operator of the ATP 2021 Joint Venture (“JV”) (other interest holders: Metgasco Ltd, 25%; and Bridgeport (Cooper Basin) Pty Ltd, 25%,) provides the following operations update on the Vali gas project.
Background
Vintage and the JV partners are bringing the recently discovered Vali Gas Field into production to provide a new source of gas for eastern Australia. Vali is to supply an estimated 9 PJ to 16 PJ of gas to AGL in the period from field start-up to end-2026 under the Gas Sales Agreement (“GSA”) announced 23 March 2022. Gas committed under the GSA, the first supply agreement for the company, is estimated to represent 9% to 16% of the field’s proved and probable reserves1 of 101 PJ (gross joint venture volume). Gas produced from the field is to be transported to Moomba for processing prior to sale.
Update
Expectations of first gas have been revised due to rescheduling of the pipeline and facilities installation for availability of contractor crew staff and the effect of skilled trade shortages on fabrication. Site works for the pipeline installation are now due to begin in the week commencing 19 September 2022. Read More
In accordance with ASX Listing Rule 3.13.1, Vintage Energy Ltd (ASX: VEN), announces that the Annual General Meeting (AGM) of the Company will be held on Tuesday 22 November 2022. An item of business at the AGM will be the re-election of directors. In accordance with clause 61 of the Company’s Constitution, the closing date for the receipt of nominationsfrom persons wishing to be considered for election as a director is Thursday 13 October 2022. Any nominations must be received at the company’s registered office no later than 5:00pm (Adelaide) on Thursday 13 October 2022. Read More
Vintage Energy Ltd annual report for the 2022 financial year (“FY22”), the fourth since listing on the ASX.
U.S. Rig Count is up 1 from last week to 764 with oil rigs up 3 to 602, gas rigs down 2 to 160 and miscellaneous rigs unchanged at 2.
Canada Rig Count is up 4 from last week to 215, with oil rigs up 2 to 146, gas rigs up 2 to 67.
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 23rd September 2022 | 764 | +1 |
| Canada | 23rd September 2022 | 215 | +4 |
| International | August 2022 | 860 | +27 |
OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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