Natural Gas Daily: June 22nd, 2020
LNG Traders Grapple with Carbon Offsets: Report
Today's LNG oversupply is a good opportunity for LNG buyers to press their sellers to include carbon offsets as regulatory pressure for clean energy rises, according to a new report by gas importers' group GIIGNL.
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The Big Picture:
- Still in its infancy, carbon offsetting in the LNG trade is likely to grow rapidly but it needs a robust measuring system.
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Since June 2019, several agreements for the delivery of “carbon-neutral” LNG cargoes have been signed, with two more deals announced June 22, the report's publication date.
Shell to Supply Carbon-Neutral LNG to Cnooc
Cnooc Gas & Power, a unit of Chinese state-run Cnooc, has signed an agreement with Shell Eastern Trading for delivery of two cargoes of carbon-neutral LNG to mainland China, Shell said in a statement.
The Big Picture:
- These cargoes are carbon neutral which means that all emissions from exploring for and producing the natural gas, up to its use by the final consumers, are offset by credits from a variety of nature-based projects.
US to Help Indonesia Develop Gas Infrastructure
The US Trade and Development Agency (USTDA) June 15 awarded a grant to Nusatama Properta Panbil to support the development of gas infrastructure in Indonesia.
The Big Picture:
- USTDA said it will fund a feasibility study to evaluate the development of an LNG receiving terminal, as well as storage and transshipment facilities on Asam Island.
Russia Doubles Subsidies for CNG Vehicles
The Russian government has doubled subsidies to help businesses and citizens convert their vehicles to run on compressed natural gas (CNG) instead of gasoline, it said on June 21.
The Big Picture:
- The government’s plan involves the construction of almost 1,300 more CNG filling stations over the next five years.
- The rise in gas vehicle demand has been uneven: only a few utilities in Europe are embracing the clean technology, while electric vehicles have stolen the limelight.
Eni Mulls Exit from Pakistan: Press
Italian oil major Eni is looking to sell its upstream business in Pakistan after almost two decades working in the country, local media reported on June 21.
The Big Picture:
- Sources told The Express Tribune that the company had decided to sell the assets because of declining gas production rates at its existing fields and lacklustre results from exploration.
N African Gas Pays Off for SDX: CFO
UK-listed minnow SDX is reaping the rewards of its broadly secure upstream gas businesses as production and sales are rising in Morocco and getting off the ground in Egypt, CFO Nick Box told NGW.
The Big Picture:
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Results from drilling in Morocco and Egypt are adding to the independent's end-user strategy.
