Hungary agrees to 15-year gas deal with Gazprom – foreign minister
Hungarian Foreign Minister Peter Szijjarto has signed a 15-year gas supply agreement with Russian energy group Gazprom to take effect as soon as its existing deal expires in September, he said on Thursday. Landlocked Hungary has diversified natural gas imports in recent years, opening cross-border interconnectors with most of its neighbours and securing gas deals, including one with Shell via a liquefied natural gas (LNG) port in Croatia. Although the Shell deal was its first with a Western suplier, Hungary has relied on Russia for most of its natural gas imports via a pipeline through Ukraine. That will change with the inauguration of a new southern pipeline across the Balkans. “From now on we have a new gas purchase route at our disposal … Hungary will not be without natural gas,” Szijjarto said in a video on his Facebook page, adding that a connection at the country’s Serbian border will be operational by October. Szijjarto did not specify the quantity Hungary would import under the new deal or the price, adding only that pricing would be “flexible” and companies in both countries will negotiate the details. The foreign minister, who is in Saint Petersburg attending an energy summit, added that he had agreed in separate talks with Russia’s state nuclear construction company Rosatom that work on Hungary’s new nuclear plant at the central Hungarian Paks site will be accelerated from the autumn. The Hungarian Atomic Energy Authority has until September to approve a licence application by Paks 2 Zrt, the state-owned company developing the plant, and Szijjarto said he expects Rosatom to be able to begin construction next year. Hungary has often been criticised by Western partners for lining up its energy supply too closely with Russia. The Hungarian government has rejected such charges, saying it has pursued all options to diversify the country’s energy mix. Szijjarto said the government was already in talks with neighbouring countries to sell any excess electricity once the Paks 2 nuclear plant comes online in about a decade.
Tellurian signs 10-year LNG agreement with Vitol for 3 MTPA
U.S. liquefied natural gas (LNG) developer Tellurian Inc said on Thursday it had signed a 10-year sale and purchase agreement with commodity trader Vitol for 3 million tonnes per annum (MTPA) of LNG. It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. Each deal is worth about $12 billion in revenue over the contract period. Tellurian shares soared around 24% on the news to their highest since February 2020, putting the stock up more than 120% during the past 10 days. The LNG would come from Tellurian’s proposed 27.6-MTPA Driftwood export project in Louisiana. Tellurian Executive Chairman Charif Souki said in a video this week that the company remained “highly confident we will start construction this summer and issue notice to proceed to Bechtel in the first quarter of next year.” Tellurian has a contract with Bechtel to build the liquefaction plant. Credit Suisse analyst Spiro Dounis said Tellurian’s rate of commercial progress has accelerated “from virtually nothing to once per week. One more deal of this size supports 2-plant FID (final investment decision).” Tellurian has said the first phase of Driftwood would cost about $16.8 billion and produce about 16.5 MTPA of LNG. Tellurian CEO Octavio Simoes said the company “continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.” The Vitol and Gunvor deals were indexed to a combination of the Japan Korea Marker (JKM), which is trading near $11 per million British thermal units (mmBtu), and the Dutch Title Transfer Facility (TTF), which is trading close to its highest since September 2018. The U.S. Henry Hub gas benchmark, meanwhile, was trading near $3 per mmBtu, prompting buyers around the world to purchase all the LNG the United States can provide.
India brings forward target of 20 pc ethanol-blending in petrol to 2023
The government has brought forward the target date for achieving 20 per cent ethanol-blending with petrol by two years to 2023 to help reduce India’s dependence on costly oil imports, according to an official notification. Last year, the government had set a target of reaching 10 per cent ethanol-blending in petrol (10 per cent of ethanol mixed with 90 per cent of diesel) by 2022, and 20 per cent doping by 2030. Earlier this year, the target for 20 per cent blending was brought forward to 2025. And now, it has been further advanced to April 2023. “The Central Government hereby directs that the oil companies shall sell ethanol-blended petrol with a percentage of ethanol up to 20 per cent as per the Bureau of Indian Standards specifications, in the whole of the States and union territories,” the Oil Ministry said in a Gazette notification. “This Notification shall come into force with effect from the 1st April 2023”. India is the world’s third-biggest oil importer, relying on foreign suppliers to meet over 85 per cent of its demand. In the current ethanol supply year, which started in October, India plans to have 10 per cent ethanol-blending with gasoline. As much as 4 billion litres of ethanol will be needed for achieving a 10 per cent mixing ratio. For 20 per cent by 2023, 10 billion (1,000 crore) litres will be needed. The sugar industry will divert 6 million tonnes of surplus sugar to produce 7 billion litres of the ethanol needed, while the remaining ethanol will be produced from excess grain.