Natural Gas Daily: November 5th, 2020

APACHE SEES Q3 LOSSES BUT BIGGER SAVINGS

US independent Apache Corporation reported November 4 a third-quarter loss of $4mn, or $59mn on an adjusted basis. Net cash provided by operating activities in the third quarter was $304mn and adjusted pre-tax and exploration expenses earnings (Ebitdax) were $563mn. It did not supply year-earlier figures.

Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. ngc.co.tt

• Margins were up $10/barrel in Egypt and the North Sea (to $23/b and $20/b) respectively and up $7/b in the US. Gas comprised 35% of its global output and natural gas liquids 18%.

SEMPRA ENERGY SEES COSTA AZUL FID IN Q4

Sempra Energy said it expects to take a final investment decision (FID) on the first phase of its Energia Costa Azul LNG project on Mexico's Pacific coast in the fourth quarter. 

• The first phase would include a single 3mn mt/yr liquefaction train, most of the output of which – about 2.5mn mt/yr – has been committed under 20-year sale-and-purchase agreements with Mitsui & Co and French Total.

MAJOR CANADIAN BITUMEN PRODUCER SEES BETTER GAS OPPORTUNITY

Canadian Natural Resources Limited (CNRL), long one of Canada’s major oil sands producers, said in its Q3 2020 earnings report it will direct more of its capital resources to natural gas opportunities.

• In August, CNRL moved to acquire troubled Painted Pony Energy, which added a modest 270mn ft3/day to CNRL’s industry-leading 1.43bn ft3/day of natural gas production in Q2 2020, most of which is used to support its thermal bitumen operations.

• More importantly, the acquisition gave CNRL added flexibility, especially in light of what has happened in global crude markets since Covid-19 wreaked havoc on petroleum demand. Natural gas has been much more resilient in the wake of the pandemic.

ALBERTA, CANADA IN METHANE AGREEMENT

Alberta and Canada have reached an equivalency agreement that will allow the province’s plan to reduce methane emissions to take precedence over similar rules established by the federal government, Alberta environment minister Jason Nixon said.

• Alberta’s set of rules, which were finalised this past summer, are estimated to cut more methane emissions by 2030 than the federal regulations, and at half the cost to industry, Nixon said.

CANADA’S TOURMALINE OIL IN BUYING MOOD

Canadian senior producer Tourmaline Oil said November 4 it had reached agreements to acquire two privately-held Deep Basin producers for C$570mn (US$437mn) in cash and shares and the assumption of about C$244mn of debt.

• Tourmaline Oil is Canada’s largest natural gas producer. 

• The same day, it announced net earnings in Q3 2020 of C$4.8mn, down from earnings of C$15.8mn in the comparable period last year. 

SNAM REPORTS STABLE NUMBERS IN 9M 2020

Italian gas grid operator Snam said it had generated stable profits and revenues for the first nine months of the year, despite the impact of the Covid-19 pandemic.

• The company has signed a memorandum of understanding (MoU) with truck manufacturer Iveco and powertrain maker FPT Industrial to develop gas and hydrogen infrastructure for the transport sector in Italy and elsewhere, it said on November 3.

• It also signed a MoU with FS Italiane rail network on developing hydrogen-powered rail transport in Italy in October, followed by deals to create a supply chain for using LNG as transport fuel in Israel.