Category Archives: Gas

Gas giant Chevron falls further behind on carbon capture targets for Gorgon gasfield

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While scale of shortfall is uncertain, conservationists claim admission is proof the project isn’t working

Gas giant Chevron has fallen even further behind on targets to capture and store CO2 at its mega gas project in Western Australian, but has refused to say by how much.

The company also confirmed on Friday it had bought and surrendered 5.23m tonnes of CO2 offsets to make up for the failure to meet its 2021 target at its CCS project at the offshore Gorgon gasfield in Western Australia.

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Europe could face energy rationing as ‘really tough winter’ looms, Shell boss warns

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Ben van Beurden says Ukraine war fallout means big rise in bills and possible need to ration supplies

European consumers could face the prospect of energy rationing this winter as costs continue to soar amid the risk of Russia cutting off gas supplies, Shell’s chief executive has said.

“It will be a really tough winter in Europe,” said Ben van Beurden, speaking at the Aurora spring conference in Oxford on Thursday. “We will all face very significant escalation in energy prices. In the worst case, Europe will need to ration its energy consumption.”

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Why is the euro doing so badly against the dollar?

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Analysis: Investors often turn to US currency in times of uncertainty and there are plenty of reasons for them to be jittery

It is two decades since the euro was last trading below $1.00 (£0.84) against the US dollar. Now the single currency is once again teetering on the brink of parity.

There are a host of reasons why, although the prompt for the most recent slide in the currency has been the fear Europe faces an energy crunch this winter.

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Germany braces for ‘nightmare’ of Russia turning off gas for good

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Ministers fear flow may never restart as annual maintenance work soon begins on Nord Stream 1 pipeline

Germany is bracing itself for a potentially permanent halt to the flow of Russian gas from Monday when maintenance work begins on the Nord Stream 1 pipeline that brings the fuel to Europe’s largest economy via the Baltic Sea.

The work on the 759-mile (1,220km) pipeline is an annual event and requires the gas taps to be closed for 10 to 14 days. But never before in the pipeline’s decade-long history has Germany seriously been asking whether the flow will begin again.

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Germany to reactivate coal power plants as Russia curbs gas flow

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Parliament approves measures to use mothballed sites to produce electricity and preserve gas supplies

Germany’s two houses of parliament have passed emergency legislation to reactivate mothballed coal-fired power plants in order to support electricity generation amid fears of gas shortages as Russia curbs capacity.

The move has been described as “painful but necessary” by the government’s environmentalist economics minister, Robert Habeck. It has the backing of leading Greens in the coalition government, who argue it is needed as a short-term crisis management tool.

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Ukrainian diaspora urges Trudeau not to return turbine to Russia

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Moscow says equipment, which was being repaired in Canada, was crucial to restore gas supplies to Germany

Canada’s Ukrainian community has urged the prime minister, Justin Trudeau, to refuse to compromise the country’s sanctions against Russia in order to return a turbine that Moscow says is critical for supplying natural gas to Germany.

Russia’s state-controlled Gazprom cut the capacity along the Nord Stream 1 pipeline to just 40% of usual levels last month, citing the delayed return of equipment being serviced by Germany’s Siemens Energy in Canada.

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Norway halts strike that threatened gas supplies to Britain

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Norwegian government intervenes in pay row because of ‘great social consequences for whole of Europe’

The Norwegian government has stepped in to end a strike that had threatened supplies of gas to Britain.

The labour dispute had shut down oil and gasfields and was expected to cut Norway’s gas supplies by almost 60% by the weekend.

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European stock markets tumble on rising fears of recession

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Euro slumps to 20-year low against US dollar as jump in natural gas prices intensifies economic strain

Rising worries about a European recession hit stock markets on Tuesday as the euro slumped to a two-decade low and the pound fell to its lowest since the start of the pandemic.

Shares tumbled in London and across Europe as a jump in natural gas prices intensified the strain on the European economy.

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The Nigerian gas deal, the Irish impresario and the £8bn ruling amid claims of bribery

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Officials allege contract was corruptly procured by business duo behind P&ID as saga of energy project and secretive tribunal heads for high court

It has been described as one of the most extraordinary cases ever to come before the high court, involving an Irish impresario, an alleged $50,000 bribe stuffed into a bag and potentially one of the biggest payouts in legal history.

The saga of two Irish businessmen, Michael Quinn and Brendan Cahill, who promised to revolutionise Nigeria’s energy sector, will be at the centre of a high court trial early next year.

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Environmentalists condemn Biden administration’s offshore drilling plan

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Policy would ban new ocean drilling but allow up to 11 lease sales in Gulf of Mexico and Alaska’s south coast

Joe Biden’s administration on Friday unveiled a five-year offshore oil and gas drilling development plan that blocks all new drilling in the Atlantic and Pacific Oceans within US territorial waters while allowing some lease sales in the Gulf of Mexico and Alaska’s south coast.

The plan, which has not been finalized, could allow up to 11 lease sales but gives the interior department the right to make none. It comes two days after the US supreme court curbed the power of the Environmental Protection Agency to respond to the climate crisis.

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Western Australia’s EPA urges 50-year extension of country’s most polluting gas project

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Woodside’s North West Shelf gas development would release more than eight times Australia’s annual emissions if it continues to operate until 2070

Western Australian authorities have recommended a 50-year extension of the country’s biggest polluting fossil fuel development, sparking condemnation from climate campaigners who warned it could add more than 4bn tonnes of carbon dioxide to the atmosphere.

The WA Environment Protection Authority (EPA) advised the state government it should give the greenlight to oil and gas giant Woodside Energy to run its North West Shelf gas development in the Pilbara until 2070.

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Paying coal and gas plants to supply back-up energy a ‘retrograde step’, Clean Energy Council says

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‘It’s the wrong policy debate at the wrong time,’ industry says of capacity mechanism

Australia’s peak renewable industry groups say paying coal and gas plants to remain in the electricity market as back-up capacity would be “a retrograde step”, and a lengthy debate about changes could stall much-needed new investment.

Kane Thornton, the chief executive of the Clean Energy Council, said his organisation had “real concerns” about the proposal by the Energy Security Board for a so-called capacity mechanism to be introduced after 2025. Such a scheme would charge consumers for idle generation or supply to reduce risks of potential power shortages, as experienced across eastern Australia this month.

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German gas prices could triple as Russia reduces supply, expert says

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Fears consumers may have to pay up to three times as much after Nord Stream 1 pipeline flow cut by 40%

German consumers could face a tripling of gas prices in the coming months after Russia’s throttling of deliveries to Europe, a senior energy official has said.

Moscow reduced the flow of gas through the Nord Stream 1 pipeline by 40% last week, citing technical reasons that Berlin dismisses as a pretext, prompting a four to six-fold rise in market prices, said the head of Germany’s federal network agency, Klaus Müller.

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British Gas owner signs deal with Norway firm for extra UK supplies

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Centrica says Equinor will deliver enough gas for next three years to heat 4.5m extra homes

The British Gas owner, Centrica, has signed a major supply deal with the Norwegian state oil company, Equinor, as ministers scramble to secure domestic energy supplies.

Equinor has agreed to deliver an additional 1bn cubic metres of gas supplies to the company for each of the next three years, enough to heat an additional 4.5m UK homes.

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Africa must forgo gas exploration to avert climate disaster, warn experts

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Call comes after former UN climate envoy urged African countries to exploit their natural gas reserves

Africa must embrace renewable energy, and forgo exploration of its potentially lucrative gas deposits to stave off climate disaster and bring access to clean energy to the hundreds of millions who lack it, leading experts on the continent have said.

Their call came as the UN secretary general, António Guterres, warned that exploring for gas and oil anywhere in the world would be “delusional”.

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Electricity consumers in Queensland cut use to avoid blackouts as NSW and Victoria face shortages

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Market operator in talks with large consumers as country faces energy crisis mainly due to poorly performing coal-fired generators

Some of Queensland’s biggest consumers agreed to cut their power use on Monday to help the grid avoid blackouts, and similar requests could be made in New South Wales and Victoria on Tuesday if regulators maintain forecasts for potential electricity shortfalls.

The Australian Energy Market Operator (Aemo) on Monday afternoon started talks with big consumers under its Reliability and Emergency Reserve Trader (Rert) scheme to head off a gap projected at one stage to be 1,454 megawatts in Queensland at 5.30pm.

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UK ramps up gas and oil exports to EU amid Russia’s war in Ukraine

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Britain’s goods exports to EU a record £16.4bn in April despite impact of Brexit

The UK has drastically increased the volume of natural gas being pumped to the EU amid Russia’s war in Ukraine, powering a record monthly rise in goods exports to the continent despite Brexit.

Figures from the Office for National Statistics show EU goods exports rose for the third consecutive month to £16.4bn in April, the highest monthly level in current prices since comparable records began in 1997.

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US gas prices rise to a record $5 a gallon but Biden hedges on Saudi Arabia visit

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Ukraine war and oil company price gouging among factors contributing to surge as president mulls Riyadh rapprochement

US gasoline prices, a key driver of the highest inflation seen in the US in 40 years, hit a record $5 a gallon on Saturday. There was little to suggest they would drop anytime soon but, also on Saturday, Joe Biden said he had “not yet” decided if he will travel to Saudi Arabia, a week after opening the door to a possible trip.

Any such visit would be aimed at bolstering relations with the country at a time when Biden is trying to find ways to lower gasoline prices.

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As the temperature cools, the heat is on Chris Bowen

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Gas shortages, reported delays to major projects and coal-fired power woes are among the gifts handed to the new energy minister

It’s a shame Chris Bowen can’t harness some of the heat from his baptism of fire as new energy minister because it could come in handy this winter.

Even before he’d been sworn in, Victoria nearly ran out of gas. This week, there were more coal-fired power woes – with AGL Energy down to six of its 11 units operating – and a new winter demand record in Queensland for electricity.

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British Gas owner says windfall tax will dent investor confidence

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Centrica boss also defends Amber Rudd’s appointment to its board as a non-executive

The British Gas owner, Centrica, has warned that Rishi Sunak’s windfall tax will “damage investor confidence” as Britain attempts to build up green energy supplies.

The Centrica chairman, Scott Wheway, and its chief executive, Chris O’Shea, hit out at the chancellor’s 25% levy on oil and gas operators’ excess profits, which will be used to pay for measures to reduce soaring energy bills.

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