Global LNG demand expected to double by 2040 to 700 mln tonnes: Shell
Global demand for liquefied natural gas (LNG) is expected to double to 700 million tonnes by 2040 as gas will continue to play an important role in a lower-carbon energy system, Royal Dutch Shell’s annual market outlook said on Thursday. Global LNG demand grew by 12.5 per cent to 359 million tonnes last year. Asia is expected to remain the dominant region in the decades to come, with South and South-East Asia generating more than half of the increased demand, the report said.
Energy Transfer signs NGL transportation, processing agreement
Energy Transfer LP said on Wednesday it signed agreements with an undisclosed company for the gathering, processing, transportation and fractionation of natural gas liquids (NGLs) in the Eagle Ford shale basin through 2034, and the Delaware basin through 2040. Discussions with potential shippers to build an offshore crude export facility in Texas capable of handling supertankers were progressing, but a final investment decision has not been made, the company said during its fourth-quarter earnings call. US crude exports have surged to record highs after Washington lifted a ban in late 2015. A shale boom has helped make the United States the world’s largest oil producer, ahead of Saudi Arabia and Russia. Several midstream companies have raced to add export terminals capable of handling Very Large Crude Carriers (VLCCs) along the US Gulf Coast. Completion of the Ted Collins crude oil pipeline will provide access to over 1 million barrels per day (bpd) of inbound crude oil for delivery to the Houston and Nederland, Texas terminals as well as to Houston and Gulf Coast refineries, Chief Financial Officer Thomas Long said during the call. Last year, Energy Transfer said it would buy smaller rival SemGroup Corp for $1.35 billion and build the new Ted Collins pipeline between the Houston Ship Channel and Nederland. The pipeline will also allow Energy Transfer to fully utilize export capacity at its Houston and Nederland terminals, which it said can be expanded to over 2 million bpd, Long said. The pipeline is expected to have initial capacity of more than 500,000 bpd, and commercial operations are expected to begin in the second half of 2021. Energy Transfer said the initial phase of expansion of the Dakota Access pipeline system beyond its current capacity of 570,000 bpd will be based on shippers’ existing commitments as well as those made during the current open season. “We still expect this capacity to serve the commitments received to be in service in early 2021,” Long said. “We’re confident that through time, we’ll get to 1.1 million bpd over the next 4 or 5 years.” Overall crude transportation volumes rose to a record 4.7 million bpd during the fourth quarter compared with about 4.3 million bpd a year earlier, primarily due to volume growth in the Bakken basin and an increase in flows on its Texas pipelines.
Petronas raises March crude price factor to record high of $9.30/bbl
State oil firm Petronas has set the price factor for Malaysian Crude Oil (MCO) for March at $9.30 per barrel, up 10 cents from the previous month and the highest on record, the company said on Thursday. The monthly price factor is added to the average of Platts’ dated Brent prices published in the month to derive the Malaysian crude official selling price (OSP). Petronas changed its OSP mechanism effective January 2017, basing its benchmark price on a basket of four Malaysian crude grades Labuan, Miri Light, Kikeh and Kimanis.
City gas distributors may not have to tie up supplies for 5 years
The downstream regulator is planning to waive a key condition for city gas distributors — of signing natural gas purchase pacts within 180 days from the award of licence — in response to companies’ reluctance to go for such deals amid a global supply glut that has led to a sharp decline in prices and amplified volatility, said people aware of the matter. The idea behind mandating licensees to compulsorily tie up supplies had been to ensure security of supply and a smooth roll-out of services. But the US shale revolution and the construction of several gas export facilities across the globe over the past few years have made supplies plentiful and cheaper, prompting the Petroleum and Natural Gas Regulatory Board (PNGRB) to revisit this condition. “Forcing them to tie up gas for five years at the beginning of the licence period won’t be in the commercial interest of city gas licence holders. They should have flexibility in sourcing gas,” said a person familiar with PNGRB’s plans. City gas distributors may not have to tie up supplies for 5 years The removal of such restriction will enable city gas distributors to better respond to market situations and serve consumers better, he said, speaking on condition of anonymity. The proposed move would help several companies that won licences in the ninth and tenth rounds of city gas auction held in the past two years. Indian Oil, BPCL, HPCL, Adani, Torrent and AG&P were the biggest winners in the last two rounds in which 136 licences, covering nearly half of India’s population, were awarded. India imports about half the gas it consumes. City gas firms get cheap local gas for distribution to homes and vehicles, but depend mostly on imported liquefied natural gas (LNG) for serving industries and commercial establishments. LNG prices have been below $4 per mmBtu for much of this fiscal due to global oversupply concerns.