Business & Markets

Pemex Deer Park, Texas Fire Broke Out in Crude Distillation Area

A Thursday night fire at Pemex’s 312,500 barrel-per-day Deer Park, Texas, refinery broke out in a crude distillation unit, said people familiar with plant operations. The sources did not know which of two Deer Park CDUs were hit by fire.

Say ‘Aloha’ to New Trend of Hydrogen Blending with Hawaii Gas

(P&GJ) — While most of the naphtha is converted to methane, some hydrogen is produced in the steam reformer process, resulting in hydrogen concentrations of up to 10% to 15%. As natural gas utilities around the world look to hydrogen as a potential solution to decarbonization, the decades of experience Hawaii Gas already has with a hydrogen blend provide an insightful study into the performance of equipment using hydrogen blends.

China’s Yulong Petrochemical in Preliminary Oil Deals with BP, Chevron

China's Yulong Petrochemical on Monday said it had signed a memorandum of understanding agreements with BP and Chevron to supply its 400,000 barrel per day greenfield refinery in northern China.

EPA: US 2022 Power Plant Emissions Fell on Switch from Coal to Gas

U.S. power plant emissions of pollutants that harm human health and warm the planet fell last year as the industry continued a switch from coal to natural gas, the Environmental Protection Agency said on Friday.

Oman's Abraj Signs Oil Drilling, Extraction Deal with Chevron, Kuwait Gulf Oil Company

Oman's Abraj Energy Services said on Saturday it had signed a five-year 'strategic partnership deal' with Kuwait Gulf Oil Company and Saudi Arabian Chevron to extract and drill for oil in Kuwait.

Russian Governor: Sakhalin-1 Oil, Gas Output Less Than Half of Plan in 2022

The project saw a sharp decline in output following the departure of U.S. oil and gas major Exxon Mobil after Moscow sent tens of thousands of troops into Ukraine on Feb. 24 last year.

East Africa Pipeline Project Kicks Up Climate Change Controversy

(P&GJ) — Construction of the 896-mile (1,443-km) cross-border East African Crude Oil Pipeline (EACOP) project continues to elicit objections, as well as strong arguments in its favor by the governments of Uganda and Tanzania. The main contentious issues are the possible adverse effects of the project might have climate change, and alleged human rights violations.

Russia Halts Oil to Poland Via Druzhba Pipeline, Says Refiner PKN Orlen

The halt in supplies via the Druzhba pipeline — which has been exempted from European Union sanctions imposed on Russia following its full-scale invasion of Ukraine — came a day after Poland delivered its first Leopard tanks to Ukraine.

FERC’s Pipeline, LNG Project Evaluations Looking at EJ

(P&GJ) — The Federal Energy Regulatory Commission (FERC) is devoting an increasing amount of attention and staff resources to the evaluation of impacts of interstate natural gas pipeline and LNG terminal projects on environmental justice (EJ) communities (that is, communities with disproportionately large minority and low-income populations).

ESG & Innovation: API Looks at Species, Habitat Conservation

(P&GJ) — The American Petroleum Institute (API) published a first-edition document focused on species and habitat conservation for onshore natural gas and oil production facilities that will help boost the industry’s existing practices to enhance environmental performance.

Trinidad to Begin Negotiations for Gas Deal with Venezuela in March

A deal would help revive the nation's gas production, which contributes a large part of its export revenue and has been in decline. The joint venture could supply gas to Trinidad's liquefied natural gas and petrochemical industry.

EOG Resources Says Low Natural Gas Prices Not Changing Drilling Plan

U.S. oil and gas producer EOG Resources on Friday said it had no plans to alter its strategy around new natural gas drilling, despite a sharp decline in prices this year. Rival producers, including Chesapeake Energy, Southwestern Energy and Comstock Resources, have said this month they are pulling back on drilling after U.S. gas prices tumbled 50% this year.

China Gas Holdings Secures LNG Supply Deals with Venture Global for 40-Year Term

China Gas Holdings has agreed to two 20-year LNG supply contracts with U.S. exporter Venture Global, adding to a flurry of deals signed between China and the U.S. since 2021. It would buy a total of two million tonnes per year of LNG from Venture Global under the two contracts with supply set to kick off in 2027.

Chesapeake Utilities to Develop Florida RNG Facility

(P&GJ) — FPU Renewables LLC, a subsidiary of Chesapeake Utilities Corp., will construct, own and operate a dairy manure renewable natural gas (RNG) facility, a press release announced on Feb. 21. The project represents a capital investment of $22 million, with the first injection of RNG projected to occur in 2024.

DNV Kicks Off Phase Two of Offshore Hydrogen Pipeline Project H2Pipe

(P&GJ) — Phase 2 of H2Pipe will include a feasibility-level design of offshore hydrogen pipelines and a risk assessment study to examine the safety aspects of offshore hydrogen pipelines. The project's primary outcome is expected to be a detailed guideline offering specific guidance for use in the design and re-purposing of offshore pipelines for hydrogen transport. Phase 2 of H2Pipe is planned to start in Q1 2023 and last 2 years.

Abu Dhabi's ADNOC Looks to Raise Up to $2 Billion from IPO of Gas Unit

State oil giant Abu Dhabi National Oil Co. (ADNOC) said on Thursday it has set a price range for an initial public offering (IPO) of its gas unit that could raise up to $2 billion and give ADNOC Gas an equity valuation of $47 billion to $50.8 billion.

Cheniere Initiates Permit Process for Key Sabine Pass Project Expansion

Cheniere Energy Inc. on Thursday initiated an expansion permit process of LNG export capacity at its key Sabine Pass plant in Louisiana after the exporter topped revenue estimate on strong demand following Russia's invasion of Ukraine.

Wintershall Dea Looks Ahead After Closing Door on Russia

Oil and gas producer Wintershall Dea, fresh from pulling out of its long-term partnership with Russia, will focus on growing its production elsewhere and building up carbon management for the long-term future, it said on Thursday.

Diamondback Energy Targets At Least $1 Billion in Non-Core Asset Sale; Beats Profit Estimates

U.S. oil and gas producer Diamondback Energy Inc said on Wednesday it was increasing its non-core asset sale target to at least $1 billion by the end of this year from $500 million. Additionally, the shale producer announced it beat Wall Street expectations for fourth-quarter profit, as tighter energy supplies following Russia's invasion of Ukraine boosted crude prices.

Expanding Gas Infrastructure Presents Alternative to Permian Constraints

(P&GJ) — Oil is still serious business in the Bakken Shale, but when it comes to midstream, the money is on natural gas. As in the Permian Basin, oil production in the Williston has a high rate of associated natural gas. But the Bakken’s residual gas is rich in natural gas liquids (NGLs), and that requires infrastructure generally more akin to North Texas’ Barnett Shale than West Texas’ Permian.

Chesapeake Energy to Reduce Drilling on Lower Natural Gas Prices

U.S. natural gas producer Chesapeake Energy on Wednesday said it would pull back on drilling and completing wells this year as natural gas prices fell to a quarter of what they were last summer.

US Official Says Russia's Crude Output Cut Signals Unsold Oil

Russia's decision to cut crude oil production by 500,000 barrels per day reflects its inability to sell all of its oil, Ben Harris, a U.S. Treasury Department Assistant Secretary, said on Thursday.

Tokyo Gas Cuts Shareholder Returns to Invest in Decarbonization

Japan's Tokyo Gas will cut shareholder returns from the next financial year and use freed up funds to invest in technology to slash its carbon emissions, the company said on Wednesday. The company will pay out 40% of profits from the current 50% from the next financial year, it said.

Tellurian Taps LNG Demand Surge to Deliver Fourfold Jump in Production

Tellurian Inc. on Wednesday reported a fourfold increase in quarterly natural gas production to meet a surge in demand triggered by Western sanctions against Russia over the Ukraine invasion.

Tanzania Approves Construction of New 900-Mile Crude Pipeline

(P&GJ) — The construction of a crude oil pipeline for $3.5 billion has been approved by Tanzania's government. The 1,443-km (900-mile) pipeline will carry crude from sizable oilfields being built in Lake Albert in northwest Uganda to a Tanzanian port on the Indian Ocean for distribution to global markets.

Damaged Line Triggers Natural Gas Leak in College Station, Texas

(P&GJ) — At around 4:00 p.m. on Monday, the Texas Avenue and Richards Street neighborhood was the scene of a gas leak that the College Station Fire Department and College Station Police attempted to contain.

US Energy Regulator Approves Partial Restart of Freeport LNG

The U.S. Federal Energy Regulatory Commission approved the partial restart of two liquefaction trains, two tanks, and one loop and dock each, a filing showed on Tuesday. Restart of a third train, along with a tank, a loop, and a dock, would require additional permission.

Financial Community’s Outlook on Oil and Natural Gas

(P&GJ) — Hop-scotching around North America in the fall of 2022 turned up varying voices calling for systemic changes in the energy industry that carry impacts from Wall Street to main street, from Canada to Mexico.

Kazakh Oil Decouples from Russian Crude But Risk Weighs on Price

Kazakhstan has separated its oil exports from those of Russian crude by launching its own KEBCO brand, but sanctions against Moscow are still putting pressure on the price of Kazakh oil pumped through Russian pipelines, data shows.

Naturgy and Enagas Plan $521 Million Green Hydrogen Project in Spain

The project, scheduled to start production in 2026, will have a capacity of around 280 megawatts and will be located in La Robla, on the site of a Naturgy's thermal power plant, which closed in 2020, the two companies said in a joint statement.