Natural Gas Daily: December 14th, 2020

EU AGREES 55% TARGET FOR EMISSIONS CUT

EU heads of state agreed on December 11 on a target to reduce greenhouse emissions by at least 55% by 2030 versus the 1990 level, compared with a previous goal of 40%. The agreement was reached despite opposition from some coal-reliant member states, following talks that dragged on for 10 hours.

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• While the tougher target had support from many of the EU's richer nations with significant clean energy capacity, several coal-reliant states such as Poland had resisted the proposal.

• In exchange for its support, Poland secured a pledge for EU funding to help it transition to clean energy. The target is also collective, meaning not all members will need to achieve such a drastic cut. 

  
  

EXXONMOBIL SETS NEW EMISSIONS REDUCTION PLAN

US supermajor ExxonMobil, considered by critics a laggard in its response to climate change, said it would make greenhouse gas (GHG) emission reductions over the next five years that would support the goals of the Paris agreement.

• Under the plan, the company intends to reduce the intensity of its upstream emissions by 15-20%, cut methane intensity by 40-50% and reduce flaring intensity by 35-45%, all by 2025.

PEMBINA HITS PAUSE ON CANADIAN PETCHEM PROJECT

Canada’s Pembina Pipeline said its capital spending in 2021 will total C$785mn (US$614mn) but advancing, with its Kuwaiti partner, a proposed C$4bn integrated propane dehydration and polypropylene (PDH/PP) facility near Edmonton won’t be part of those plans.

• While the project is being deferred, Pembina said it will move forward next year with several other projects, some of which were deferred earlier this year.

• Included among the restarted projects is its C$120mn Empress co-generation facility at the Empress NGL extraction plant in east central Alberta. The co-generation facility will use natural gas to generate up to 45 MW of electrical power and provide power and heat to the extraction facility.

   

NOVATEK TESTS FIRST RUSSIAN-MADE CRYOGENIC PUMP

Russian LNG exporter Novatek has hailed the testing of the first large-scale cryogenic pump manufactured in Russia at its Yamal LNG project in the Arctic.

• Russia wants to reduce reliance on imported equipment and technology in the oil and gas industry, to support domestic manufacturing and shield the sector from possible sanctions.

• Novatek has primarily relied on international suppliers for the main equipment and technology at Yamal LNG and its successor project Arctic LNG-2, due online in 2023.

HYUNDAI BUILDS LNG-FUELLED BULK CARRIERS

South Korea’s Hyundai Samho Heavy Industries on December 11 said it had built and named two LNG-powered bulk carriers.

• Their LNG fuel tanks have a storage capacity of 1,600 m3, which the company said is the largest in the world.

• Hyundai Samho said the LNG-fuelled carriers will reduce sulphur oxides and fine dust by 99%, nitrogen oxides by up to 85%, and greenhouse gas emissions by 30% compared with existing ships.

MODEC GETS SENEGAL FPSO CONTRACT FROM WOODSIDE

Modec announced securing a contract from Australia's Woodside to operate and maintain a floating production storage and offloading (FPSO) vessel for the first phase of Sangomar development offshore Senegal.

• Woodside earlier this month used its pre-emptive right to make a bid for fellow Australian player Far's stake in the production-sharing agreement Rufisque, Sangomar and Sangomar Deep blocks, blocking an offer from India's ONGC.