Natural Gas Daily: December 4th, 2020
Opec+ agreed on December 3 to raise oil production by 500,000 barrels/day in January, despite earlier expectations that the group would hold off on any supply increases in light of stalling demand growth.
- The Opec+ meeting was originally scheduled to take place on December 1 but was delayed by two days after talks among Opec members on November 30 failed to reach a consensus on policy next year. Reports suggest Saudi Arabia was in favour of delaying the easing of cuts, whereas Russia and the UAE felt differently.
Capital Power, an Alberta-based utility with generating facilities at 28 locations in Canada and the US, said December 3 it had sanctioned the C$997mn (US$778mn) repowering of the remaining two coal-fired units at its Genesee station west of Edmonton.
Speaking to the utility’s virtual investor day, CEO Brian Vaasjo said the conversion program is the latest part of Capital Power’s strategy to be off coal by 2023 and net-zero by 2050.
Japan's Inpex has signed a memorandum of understanding (MoU) to sell LNG from the Adabi LNG project to Indonesian gas utility PT Perusahaan Gas Negara (PGN), it said.
- PGN is the country's largest gas company, with control over most domestic gas infrastructure. Inpex also signed MoUs in February to sell the project's gas to state power firm PT Perusahaan Listrik Negara and fertiliser manufacturer PT Pupuk Indonesia.
- Indonesian authorities approved Inpex's revised development plan for Abadi LNG, situated at the Masela block in the Arafura sea, last year. Inpex has a 65% interest in the project, while Shell has 35%. The latter was reported earlier this year to be seeking a divestment.
UK upstream lobby group Oil & Gas UK has restated the significance of securing a sector deal, in light of a tougher new emission reduction target announced by the government. Prime minister Boris Johnson raised the CO2 emissions reduction target by at least 68% by 2030, based on 1990 levels.
These ambitious new targets will see the UK commit to reducing emissions at a rate faster than any major economy and came the same day that Denmark announced the end of oil and gas production in its waters by 2050.
The Danish parliamentary vote December 3 to wind down the country's upstream oil and gas industry "provides a clear framework and security for the industry," said the state producer Nordsofonden [=North Sea Fund].
- Nordsofonden will continue to focus on creating the greatest possible value for Danish society and work to support a high degree of self-sufficiency in energy for Denmark. A key element of this work is the redevelopment of the Tyra field operated by French Total.
- “When the calendar reads 2050, the oil and gas valves will be turned off for good, in line with our commitment to climate neutrality stipulated by the Danish Climate Act,” said energy minister Dan Jorgensen.
The Australian state of Queensland, home to the country's major coalbed methane to LNG export projects, has a new minister for resources, Scott Stewart.
He told parliament December 3 that the gas industry continued to do “the heavy lifting with gas production, for the domestic and export markets” and “gas is an essential part of Queensland’s economy and will continue to be so in the future.”