Category Archives: Gas

Victoria demands AEMO maintain minimum gas storage levels as supplies dwindle

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Gas supplies at the Iona storage facility have fallen due to high demand amid the state’s price cap

The national market operator needs to implement “immediate measures” that address the state’s gas shortage crisis, Victoria’s energy minister says.

Lily D’Ambrosio said the Australian Energy Market Operator (AEMO) must establish a viable plan to control gas supply levels at national storage facilities after it was revealed that the Iona facility near Port Campbell recently dropped to record lows.

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EU urges member states to slash gas use by 15% to counter ‘Russian blackmail’

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Call for voluntary cut until March 2023 with binding reduction targets possible when Moscow ‘likely’ halts supplies

The European Union’s executive body has urged member states to slash their gas consumption by 15%, as it warned that a complete shutdown of Russian supplies was “likely”.

The EU has been scrambling to wean itself off Russian gas since the invasion of Ukraine, but is alarmed about a potential energy crisis this winter.

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Germany worries about gas rationing as supply from Russia halted

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Temporary closure of Nord Stream 1 prompts fears for private consumers as well as industry

Germans are fretting about the coming winter freeze even while Europe sweats in record temperatures, amid uncertainty over whether a complete stopping of Russian gas deliveries would force energy rationing on private households as well as industry.

Germany, which has managed to reduce its reliance on Russian gas from 55% to about 35% of its demand since the start of the Ukraine war, is still heavily reliant on the Nord Stream 1 pipeline, which closed down for 10 days from 11 July due to scheduled maintenance works.

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Costs of Ukraine war pose tests for European leaders – and things may get worse

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Analysis: Vladimir Putin claims time is on his side, but he will have only one shot at making a gas cutoff count

Desperate efforts in Italy to prevent the fall of Mario Draghi’s government are only the latest political firestorm in Europe tied to Vladimir Putin’s tests of the west’s powers of endurance. Draghi’s foreign minister, Luigi di Maio, suggested it will be Putin who celebrated the fall of another western government if Draghi does not survive a confidence vote in parliament on Wednesday.

“A boat without a rudder goes adrift,” said Ferruccio Resta, the president of the Conference of Italian University Rectors – a metaphor that could apply, to Putin’s satisfaction, to much of Europe as governments come under growing pressure over the perceived domestic cost of the war in Ukraine.

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Russia’s Gazprom tells European buyers it cannot guarantee gas supplies

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Force majeure declared in letter to customers concerns supplies via Nord Stream 1 pipeline, says source

Russia’s Gazprom has told customers in Europe it cannot guarantee gas supplies because of “extraordinary” circumstances, according to a letter seen by Reuters, upping the ante in an economic tit-for-tat with the west over Moscow’s invasion of Ukraine.

Dated 14 July, the letter from the Russian state gas monopoly said it was declaring force majeure on supplies, starting from 14 June.

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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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