Goldman Sachs Sees Limited Upside for Oil Prices in 2025

Energy News Beat
Goldman Sachs predicts average oil prices of $76 per barrel in 2025 due to sufficient global spare capacity.
The forecast sees limited upside potential due to high spare capacity and potential trade tariffs.
Despite undisrupted Iranian oil production, Goldman Sachs warns a 2025 supply glut isn’t guaranteed, with geopolitical risks remaining a concern.

Oil prices are expected to average $76 per barrel next year amid sufficient supply and ample spare capacity, according to Goldman Sachs.

“Overall, we still see the medium-term risks to our $70-85/bbl range as two-sided but skewed moderately to the downside on net as downside price risks from high spare capacity and potentially broader trade tariffs outweigh upside price,” the investment bank’s analysts wrote in a note carried by Reuters.

Oil prices are currently close to Goldman’s call for next year. Early on Wednesday, Brent Crude prices were down by over 1% to $74.60. The U.S. benchmark price, WTI Crude, was holding onto the $70 a barrel handle, trading down 1.8% to $70.40, after the American Petroleum Institute (API) reported late on Tuesday a crude inventory build that was larger than expected.

By the end of this year, oil prices could rise due to what Goldman’s analysts described as Brent time spreads “underpricing physical tightness somewhat.”

“Despite large global spare capacity and so far undisrupted Iran oil production, we don’t think that a 2025 supply glut is a done deal,” Goldman analysts warned.

They currently see the geopolitical risk premium as limited, but cautioned that the unresolved conflict in the Middle East could inflame the war risk premium and oil prices at any time.

Two months ago, Goldman Sachs reduced its expected range for Brent by $5 to $70-$85 per barrel, citing weaker Chinese oil demand, high inventories, and rising U.S. shale production.

Higher supply from America, and possibly from OPEC+ later this year and in 2025, has led Goldman Sachs to forecast that Brent Crude prices would average below $80 per barrel next year.

Morgan Stanley has also recently revised its oil price forecasts downward, reflecting expectations of increased supply from OPEC and non-OPEC producers amid signs of weakening global demand. The bank now anticipates that while the crude oil market will remain tight through the third quarter, it will begin to stabilize in the fourth quarter and potentially move into a surplus by 2025.

By Tsvetana Paraskova for Oilprice.com

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Korybko To Ishaan Tharoor: BRICS Members’ Political Differences Won’t Impede Financial Co-Op

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All that BRICS does is gather together some of the world’s largest economies like China and India, key energy players like Russia and the UAE, and some of the world’s most promising emerging economies like Brazil and Ethiopia for voluntarily coordinating their efforts to reform the global financial system.

The Washington Post’s Ishaan Tharoor published a provocative piece on Wednesday about “The growing tension within the BRICS”. The gist is that members are divided amongst themselves over their respective ties with the West, which might allegedly impede financial cooperation within their group. This prediction is predicated on a false premise, however, since BRICS won’t realistically become a political actor so such differences between its members won’t adversely affect their working relations.

It was explained late last month how “BRICS Membership Or Lack Thereof Isn’t Actually That Big Of A Deal” since the group is just a voluntary association of countries that don’t surrender any sovereignty to a central authority so even non-members can coordinate their policies with its members if they want. The only benefit to BRICS membership is directly participating in the group’s discussions about various voluntary proposals while others just observe their talks or hear about the outcome sometime later.

Even though Putin previously hinted at the political role that BRICS can play amidst the global systemic transition, this can be interpreted in hindsight as just an observation about the impact of its members coordinated policies to accelerate financial multipolarity processes and not part of a master plan. The reason why the passages that Tharoor cited should be seen in this way is because of what Putin himself told top BRICS journalists during his meeting with them in the run-up to the Kazan Summit.

He explicitly channeled Indian Prime Minister Narendra Modi, whose country officially considers itself to be the “Vishwamitra” (friend of the world), to tell them that “BRICS is not an anti-Western alliance; it is simply non-Western.” This was soon followed up by Foreign Minister Sergey Lavrov politely correcting Kazakh President Kassym-Jomart Tokayev for allegedly being of the view that BRICS aspires to become an alternative to the UN. These statements debunk Tharoor’s claim about the Kremlin’s intentions.

All that BRICS does is gather together some of the world’s largest economies like China and India, key energy players like Russia and the UAE, and some of the world’s most promising emerging economies like Brazil and Ethiopia for voluntarily coordinating their efforts to reform the global financial system. The economic and political asymmetries between them limit the extent of multilateral cooperation, but they can still find some common ground, and key bilaterals and minilaterals can go even further in this regard.

The fact is that all BRICS countries have a shared interest in this despite the differences between them, including their respective ties with the West, which is why Tharoor’s prediction about these differences impeding financial cooperation won’t come to pass. The sooner that everyone corrects their misperceptions about BRICS’ intended function in the global systemic transition, the sooner that more accurate analytical and journalistic products will enter the global discourse to everyone’s benefit.

Source: Korybko.substack.com

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Climate Director’s Controversial Claims

Energy News Beat

Daily Standup Top Stories

Kamala Harris’s Far-Left ‘Climate Engagement Director’ Accuses Oil and Gas Workers of Committing ‘Ecoterrorism,’ Weaponizing ‘White Supremacy’ and ‘Toxic Patriarchy’

The Harris-Walz campaign’s climate engagement director has a long history of demonizing fossil fuels, going as far as to accuse oil and gas workers of committing “ecoterrorism” and advancing “individualism, white supremacy + toxic patriarchy,” a Washington Free […]

Overnight Success: Biden’s Climate Splurge Gives Billions to Nonprofit Newbies

Although there isn’t much public information available about the Justice Climate Fund, it appears to have been an overnight success. After gaining nonprofit status in August 2023, the organization was awarded $940 million by the Biden administration just […]

Top U.S. LNG Exports: China’s Gas Demand Is Booming

Cheniere Energy: Chinese demand for natural gas is set to jump by more than 50% by 2040. Cheniere expects China to become the world’s first market with 100 million tons of LNG demand very soon. […]

China is overtaking Europe as the top market for Russia’s pipeline gas

China is on track to become the largest market for Russia’s pipeline gas this year, overtaking Europe after the Kremlin’s war against Ukraine capped flows of the fuel to the region. Russia’s gas giant Gazprom PJSC exported 23.7 billion cubic […]

Highlights of the Podcast

00:00 – Intro

01:52 – Kamala Harris’s Far-Left ‘Climate Engagement Director’ Accuses Oil and Gas Workers of Committing ‘Ecoterrorism,’ Weaponizing ‘White Supremacy’ and ‘Toxic Patriarchy’

04:59 – Overnight Success: Biden’s Climate Splurge Gives Billions to Nonprofit Newbies

07:05 – Top U.S. LNG Exports: China’s Gas Demand Is Booming

08:22 – China is overtaking Europe as the top market for Russia’s pipeline gas

11:01 – Outro

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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.

Stuart Turley: [00:00:10] Hello, everybody. Welcome to the Energy News Beat podcast. My name is Stu Turley President and CEO of the Sandstone Group. Today is October 23rd. Michael was out in Houston losing some grants. I’ll tell you what, we are busy around here. Let’s start with our stories. Kamala Harris, far left climate engagement director, accuses oil and gas workers of committing eco terrorism, weaponizing white supremacy and toxic psychiatry. Holy smokes, man, you cannot buy this kind of entertainment overnight. Success. The Next Story. Biden’s climate Surge gives billions for Nonprofit Newbies. There’s a whole lot to this story. Then I’ve got two stories with China. Top U.S. LNG Exports. China’s gas demand is booming. Follow along with this story. China is overtaking Europe as one of the top market for Russia pipeline gas. I’ll tell you what. This is just crazy. Before you started with this Kamala Harris story here. Just to let you know, I’ve got several podcasts coming out. The staff has done a great job getting them. We’ve got executives that we have been interviewing and I am one of the executives is George Mcmillan. He is the CEO over there at McMillan Geo Strategic Resources. And he and I have been talking about the geopolitical nature and what is going on with China and Taiwan. So this is going to play into our stories here. [00:01:51][100.9]

Stuart Turley: [00:01:52] So let’s start with the first story here. Kamala Harris, far left climate engagement director, accuses oil and gas workers of committing eco terrorism and the weaponizing white supremacy and toxic psychiatry. Kamala thorndyke called the fossil fuel industry ad deaf call that weaponized white supremacy. You can’t buy this kind of who are you? And if you went to the farm and shoveled it yourself there As Wolves campaign Climate Engagement director, it has a long history of demonizing fossil fuels, going as far as accusing oil and gas workers of committing the eco terrorism and advancing individual ism, white supremacy and toxic patriarchy. Washington Free Beacon Review found. This is actually disgusting. And when you sit back and think, here’s a quote out of the story. To have that level of money flowing so, so few people, CEOs and shareholders, there’s something evil about that. There’s something that is a system that is so unequal and unchallenged to human suffering, she said in her August 22nd interview with the Climate Journey podcast. I would challenge anyone who’s in the fossil fuel sector to consider putting their talents elsewhere else because in my mind, there’s no greater source of horror than continuing to cook the planet, which we’ve known for decades. My response to you is if you would love to come on this podcast, let’s talk facts. My challenge, Camellia, is if you would come on this podcast, let’s talk about what facts are the facts are. Over the last several years I’ve been documenting that we will the more we go to renewable wind and solar, which renewable is a funny term, we will use more fossil fuels because they are not sustainable both in physics and fiscally responsible. You are more than welcome on this podcast at any time. I would love to talk to you about not necessarily white supremacy because I believe your views are totally out to lunch, but I would love to know why you think a fiscally irresponsible plan of putting in wind and solar with our current grid situation and the current physics, Why is it that whenever there are wind and solar countries like Germany, the UK, let’s look at New York and New Jersey, California, all of them are failing financially because of the physics around the renewable wind and solar programs. It is not have anything to do with what you are talking about on this. Totally out to lunch. Interesting article. [00:04:59][186.9]

Stuart Turley: [00:04:59] I want to go to the next one here. Overnight success. Biden’s climate splurge gives billions to nonprofit newbies. There’s. Not much public information available about the Justice Climate Fund. The White House, $27 billion greenhouse Gas reduction fund, which aims to provide financial assistance to reduce carbon emissions and reduce pollution. This is a money grab. The Justice Climate Fund is not the only nonprofit newcomer to suddenly make it rich by the JG. RF. Within a month of gaining nonprofit status from the IRS. Holy smokes. I’ll tell you what, this is a grab for money. Let’s talk about physics. Let’s talk about the grid. Let’s talk about getting the lowest kilowatt per hour to everyone on the planet with the least amount of pollution. And that means we’ve got to use natural gas. Natural gas is great, but let’s capture the carbon. Let’s talk about having capturing the methane. Let’s work on that. This is not a one or the highway. I want to say let’s use all forms of energy, but let’s not fund $27 billion for something that is stupid. Is this. I’m sorry. This is absolutely get me worked up. Dan Mack is the critic of the Biden-Harris campaign climate agenda calls the spending splurge a slush fund. Darren, if you are out there, I’d love to have you on the podcast. Darren Back West is the director of Conservative Competitive Enterprise Institute Center for Energy and Environment, a sharp critic of the Biden administration. Climate change spending spree. It’s worse than a slush fund, a slush fund to create nonprofit slush funds. Well said there, and you are more than welcome. I would love to hear more about this story from you. [00:07:04][125.2]

Stuart Turley: [00:07:05] Let’s roll the next one. Your top U.S. LNG export. China’s gas demand is booming. Cheniere Energy. Chinese demand for Cheniere Energy. Chinese demand for natural gas is set to jump by more than 50% by 2040. Holy smokes, Batman. Cheniere also expects a first world market within a hundred million tons of LNG demand very soon. Shell, the world’s top LNG trader, expect the global LNG demand to surge by 50% by 2040. And I think this is a fabulous thing. I think that if we can get off of coal, it would be absolutely better for the environment to use natural gas like Vietnam. Just put in an LNG two natural gas power plant so they can take it right off the ship, put it in LNG storage and then right to the power plant. That is actually a very good use for that shell. The world’s largest trader expects global LNG demand to surged by 50%, driven by the high demand from Asia. I think it is phenomenal that they’re thinking of forward thinking on this. [00:08:21][76.4]

Stuart Turley: [00:08:22] Let’s now take this story and look at the next story. China is overtaking Europe as the top market for Russia’s pipeline gas. Gazprom exports natural gas to China in the first nine months of this year are up almost 40% from last year. That is huge. China is on track to become the largest market for Russia’s natural gas pipeline this year, overtaking Europe after the Kremlin’s war with Ukraine. Russia’s gas project, Gazprom, exported 23,000,000,000m³ of natural gas to China in the first nine months of this year. That is a lot. Now, this comes into my conversations with George Macmillan, and it is unbelievable, what with what’s going on. We have the war games going on in China right now, which they’re circling Taiwan. Is this about whether they’re going to invade Taiwan or my guess with George, we cover that because we also cover BRICs is going on right now with Russia meeting with President Z. He’s meeting with a lot of the African leaders. He’s meeting with the leaders from the Middle East. And BRICs is actually going to be a in a scenario where they’re moving off of the Petro dollar and also buying gas outside the U.S. dollar and they’re buying them in rubles or one in in. So this is a gigantic story. George has the opinion that this that they are not going to invade Taiwan. But this is actually doing the BRICs and taking a look at. The potential of the pipelines Japan, South Korea, Korea and the pipelines all going on to natural gas pipelines from Russia. This is what the old warmongers from the current administration do not want. They know they want everybody not to be reliant on that. That’s why the Nord Stream two pipeline got blown up as alleged by the and even forewarned by President Biden. This is a huge story, especially when you understand the back workings that is not mentioned in the story. That podcast with George there are three of them coming up and those will be coming out as well too. [00:11:01][158.6]

Stuart Turley: [00:11:01] So please, like subscribe, share. Tell your friends and if you are a coming up into the end of the year and you are looking for in the investments with tax advantages and you are needing a tax advantage, please reach out to us. Go to energy newsbeat.com/investments and then on the top menu bar take a look at it and it is energy newsbeat.co/investment hyper dash survey and see if this is oil and gas is an investment for you. We are currently very pleased with our investment in oil and gas and would love to share that information with you. Have a great day. Thanks, See you all soon. [00:11:01][0.0][648.0]

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Kamala Harris’s Far-Left ‘Climate Engagement Director’ Accuses Oil and Gas Workers of Committing ‘Ecoterrorism,’ Weaponizing ‘White Supremacy’ and ‘Toxic Patriarchy’

Energy News Beat

The Harris-Walz campaign’s climate engagement director has a long history of demonizing fossil fuels, going as far as to accuse oil and gas workers of committing “ecoterrorism” and advancing “individualism, white supremacy + toxic patriarchy,” a Washington Free Beacon review found.

During an August 2022 podcast interview, Camila Thorndike—who worked at green energy advocacy firm Rewiring America before she joined Vice President Kamala Harris’s campaign last month—called on “anyone who is in the fossil fuel sector to consider putting their talents elsewhere” and stop “continuing to cook the planet.” It was far from Thorndike’s first broadside on the industry’s workers. Months earlier, in May 2022, she accused the oil and gas industry of “ecoterrorism.” And in March 2021, she called on her followers to “overcome” the “individualism, white supremacy + toxic patriarchy” that oil and gas companies “weaponize.”

While Thorndike’s past comments reflect the views of left-wing climate activists, they stand in contrast to the more moderate approach Harris has taken on energy in the final weeks before the election—particularly in Pennsylvania, the crucial swing state home to tens of thousands of oil and gas workers. They also shed light on the kind of personnel who could staff up a potential Harris administration.

Thorndike, who did not respond to a request for comment, has dubbed oil and gas companies “evil” because they routinely turn a sizable profit.

“To have that level of money flowing to so few CEOs and shareholders, there is something evil about that. There is something that is—a system that’s like so unequal and so callous to human suffering,” she said during her August 2022 interview with the My Climate Journey podcast. “I would challenge anyone who is in the fossil fuel sector to consider putting their talents elsewhere because, to my mind, there’s no greater source of harm than continuing to cook the planet, which we’ve known for decades.”

At the time of those comments, Thorndike was Sen. Bernie Sanders’s (I., Vt.) legislative assistant. While she was in that position, Sanders introduced the Ending Corporate Greed Act, which would levy a 95 percent tax on corporate windfall profits and raise $31.9 billion from three of the largest oil companies alone. The activist group Center for Biological Diversity said the bill would help combat the “climate emergency.”

In October 2022, Thorndike announced she had joined Rewiring America as its director of policy programs. “Onwards with the clean energy revolution. Down with the fossil dictators and oligarchs. Let’s electrify everything,” she wrote in an X post at the time.

Rewiring America is a relatively new group—it was founded four years ago to “help mobilize America to address climate change and jump-start the economy by electrifying everything.” But it has already established an influential role guiding climate policy on Capitol Hill. The group spearheaded efforts to ban gas stoves, was featured in White House electric vehicle initiatives, participated in a White House electrification event, and was listed as a Department of Energy partner in the agency’s energy efficiency efforts.

Thorndike has a long history of inflammatory rhetoric about climate change. In 2022, she said the fossil fuel industry served as an effective method of birth control because she and others wouldn’t have children to protect them from climate change.

“A world in which my kids wouldn’t die young is the reason I became a climate activist 16 years ago,” Thorndike wrote in a May 2022 post. “The fossil fuel industry’s ecoterrorism is still great birth control.”

“It’s coming partly from a place of love for my hypothetical child,” she told the Washington Post in an interview months later. “I want to protect them from suffering. Not that life is ever free from suffering, but … what of the joys and peace and goodness that make me happiest to be alive will be accessible in 20, 30, 40 years?”

A year earlier, Thorndike delivered remarks at an event hosted by Harvard University’s environment and natural resources program, which she later said was “about political and cultural change to overcome the individualism, white supremacy + toxic patriarchy that fossil fuel co’s weaponize against affordable solutions we already have for rapid decarbonization.”

In an X post later in 2021, she said that the “fossil fuel industry is a death cult.”

Thorndike’s past rhetoric does not align with Harris’s rhetoric on the campaign trail as she runs to defeat former president Donald Trump.

Harris has backed off her previous support for the Green New Deal (she was an original cosponsor of the bill in 2019), said she wouldn’t ban fracking (as she pledged to do during her first presidential campaign), and has boasted about record oil production in the United States.

In an interview with Politico this week, Thorndike said Harris remains committed to fighting climate change and doesn’t support an “expansion” of fossil fuel drilling.

In addition to her roles at Rewiring America and in Sanders’s Senate office, Thorndike previously worked for the U.S. Institute for Environmental Conflict Resolution, cofounded the youth advocacy group Our Climate, was a campaigner for the Chesapeake Climate Action Network, and had roles with activist organizations Climate XChange and Sunrise Movement.

Thorndike also helped produce a national musical about the dangers of fossil fuels. The production, titledFirerock: A Musical of Awakeninguses “myth, story, songs and community making” to convey “the enormity of climate change” and “foster the spiritual healing, heart-felt connection, and inspiration for long-term engagement.”

The Harris-Walz campaign did not respond to a request for comment.

Source: Freebeacon.com

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Top U.S. LNG Exports: China’s Gas Demand Is Booming

Energy News Beat
Cheniere Energy: Chinese demand for natural gas is set to jump by more than 50% by 2040.
Cheniere expects China to become the world’s first market with 100 million tons of LNG demand very soon.
Shell, the world’s top LNG trader, expects global LNG demand to surge by 50% by 2040.

Chinese demand for natural gas is set to jump by more than 50% by 2040, from 400 billion cubic meters (bcm) now to more than 600 bcm, according to an executive at the top U.S. LNG exporter, Cheniere Energy.

“There’s no doubt that gas demand growth in China, in absolute terms, is substantially driven by energy demand, policies like coal-to-gas-switch as well as a huge infrastructure build-up,” Yingying Zhou, director LNG origination at Cheniere, said at the Asia Gas Markets conference on Tuesday, as carried by Reuters.

Cheniere expects China to become the world’s first market with 100 million tons of LNG demand very soon. LNG will represent about 25%-30% of China’s total natural gas demand, the executive added.

China, which has surpassed Japan in recent years to become the world’s largest LNG importer, will be a key growth driver of global LNG demand growth, industry analysts and major LNG traders say.

For example, Shell, the world’s top LNG trader, expects global LNG demand to surge by 50% by 2040, driven by higher demand from Asia, with coal-to-gas switching in China and a boost in LNG consumption to fuel economic growth in South and Southeast Asia. The global LNG market is set to continue growing into the 2040s, largely driven by China’s industrial decarbonization and strengthening demand in other Asian countries, Shell said in its annual LNG outlook earlier this year.

Asia, a key market of growing natural gas demand, is also expected to see another major driver of LNG demand—AI technology and data centers.

Natural gas, and in Asia’s case LNG, could be the big winner in this technology boom as gas-fired power dominates the electricity mix in many of the developed Asian economies, with emerging data center markets preferring gas over coal to power AI due to emissions reduction goals, Wood Mackenzie said in the report Gas Fuels Asia’s Data Centre Boom last month.

By Charles Kennedy for Oilprice.com

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Alexandroupolis FSRU receives first commercial LNG cargo

Energy News Beat

The 2009-built 165,500-cbm, Seapeak Magellan, which is on charter to France’s TotalEnergies, was located at the 153,600-cbm FSRU, Alexandroupolis, on October 3, its AIS data provided by VesselsValue shows.

Seapeak Magellan is loaded with a cargo from Equinor’s Hammerfest LNG export terminal in Norway, where France’s TotalEnergies is a shareholder.

A spokeswoman for Gastrade confined the arrival of Seapeak Magellan, adding that LNG transfer began on Thursday.

As previously reported by LNG Prime, TotalEnergies delivered the cargo to Bulgaria’s Bulgargaz which previously booked capacity at Gastrade’s FSRU-based LNG import facility.

Bulgargaz recently awarded a tender to TotalEnergies Gas and Power, a unit of TotalEnergies, to supply one LNG cargo via the Alexandroupolis FSRU.

The company sought one LNG cargo of about 150,000 cbm on a DES (delivery ex-ship) basis.

Gastrade officially launched commercial operations at its FSRU-based LNG import terminal on October 1.

Gastrade’s shareholders include founder Copelouzou, DESFA, DEPA, Bulgartransgaz, and GasLog.

This is Greece’s first FSRU and the second LNG import facility, adding to DESFA’s import terminal located on the island of Revithoussa.

The Alexandroupolis LNG terminal has a capacity of up to 5.5 bcm.

On February 18, the 174,000-cbm LNG carrier GasLog Hong Kong delivered the commissioning cargo from the US to the FSRU.

The LNG carrier, also chartered by TotalEnergies, brought the shipment from Sempra’s Cameron LNG plant in Louisiana.

After that, Gastrade planned to launch commercial operations at the end of April and receive the next LNG cargo in mid-May.

However, the company postponed the launch because of a problem that was identified during commissioning in the project’s pipeline system.

Last month, the FSRU-based LNG import terminal off Alexandroupolis completed final tests.

The FSRU is located in the sea of Thrace at a distance of 17.6 km SW from the port of Alexandroupolis and 10 km from the nearest coast of Makri.

In addition to the FSRU, the terminal consists of a subsea and onshore natural gas pipeline that connects the unit to the domestic grid.

Gastrade said the terminal will deliver natural gas to Greece, Bulgaria, Romania, North Macedonia, Serbia, Moldova, and Ukraine in the east, as well as Hungary and Slovakia in the west.

According to the firm, 14 Greek and international companies are already participating commercially in the project, committing almost all of the terminal’s capacity until at least 2030.

US LNG exporter Venture Global LNG recentl booked long-term capacity at Gastrade’s LNG import terminal.

Under the binding terminal use agreement, Venture Global has secured about 1 mtpa of LNG regasification capacity at the terminal for five years, beginning in 2025.

Venture Global’s capacity will account for about 25 percent of the total terminal capacity or about 12 LNG cargoes annually, it said.

Source: Lngprime.com

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McDermott scores NFS gig from QatarEnergy LNG

Energy News Beat

McDermott announced the engineering, procurement, construction, and installation (EPCI) contract in a statement on Thursday.

The company did not provide the contract price.

McDermott said this new contract is in addition to the awards received by McDermott earlier for the NFS pipelines FEED, the NFS jackets EPCI, and the NFXP topsides and pipelines which included the NFS topsides.

The NFS infrastructure is designed to supply feed gas for two additional LNG trains and is part of the North Field Expansion project (NFXP), which will help increase the total LNG production in Qatar from the current 77 million tons per annum (MTPA) to 142 MTPA.

McDermott said the scope of the contract comprises EPCI of almost 250 kilometers of offshore and onshore gas pipelines connecting five new offshore wellhead platforms with two new onshore LNG trains in addition to subsea composite power and control cables.

The project will be managed from the McDermott Doha office with in-country fabrication support from the QFAB fabrication yard, and will be installed with McDermott’s inhouse marine assets, it said.

According to McDermott, it is now responsible for all of the offshore infrastructure associated with Qatar’s massive North Field Expansion, with the execution done predominantly in Qatar.

The North Field expansion program includes the NFS project and the North Field East (NFE) project.

The first two projects include six mega trains, each with a production capacity of 8 mtpa of LNG.

Four of these are part of the NFE project and two are part of the NFS project.

In February, QatarEnergy also announced the North Field West project which will add 16 mtpa of LNG to the overall expansion of the North Field.

QatarEnergy officially started constructing its North Field expansion project in the giant Ras Laffan complex in October last year.

QatarEnergy LNG, previously known as Qatargas and a unit of QatarEnergy, currently operates 14 LNG production trains with a capacity of about 77 MTPA in Ras Laffan.

Also, QatarEnergy’s partners in the expansion projects include Shell, ConocoPhillips, ExxonMobil, TotalEnergies, Eni, Sinopec, CNPC, Sinopec, and CPC.

Technip and Chiyoda won the EPC award for the NFE project, while QatarEnergy awarded the contract for the NFS project to a joint venture of Technip Energies and Consolidated Contractors Company.

Source: Lngprime.com

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CEO: TotalEnergies looking to restart Mozambique LNG by end of 2024

Energy News Beat

Pouyanne discussed the Mozambique LNG project during TotalEnergies’ strategy and outlook presentation in New York on Wednesday.

According to the company, the giant project is expected to launch operations in 2029.

“So, the 2029 target, which is on the slide, is linked to restarting the project by the end of 2024. This is where we are today on this project,” Pouyanne said.

However, the restart of the project remains subject to security and financing commitments.

TotalEnergies declared force majeure on the Mozambique LNG project in April 2021 and withdrew all personnel from the site due to new attacks.

Mozambique LNG includes the development of offshore gas fields in Mozambique’s Area 1 and a liquefaction plant at the Afungi complex.

Besides TotalEnergies, other partners in the project include Japan’s Mitsui, Mozambique’s ENH, Thailand’s PTT, and Indian firms ONGC, Bharat Petroleum, and Oil India.

Mozambique LNG’s EPC contractor is CCS JV, a venture between Saipem, McDermott, and Chiyoda.

Last year,Pouyanne said the company was “not in a hurry” to resume the project, pointing out that security, human rights, and maintaining costs are the main three elements to make the decision to return to the Afungi site in the province of Cabo Delgado.

Asked about potential cost escalations at Mozambique LNG during the company’s second-quarter results call on July 25, Pouyanne said that “everything has been settled with the contractors.”

“On the contractor side, everything has been said, including the costs of the frozen period and the impact on the costs of the project. I think one of our partners mentioned $3.5-$4 billion,” the CEO said on Wednesday.

“But this project remains profitable.. We are committed to the project,” he said.

“On the security side, there is some progress on the ground,” Pouyanne said.

He noted that Mozambique has an alliance with Ruanda on the matter.

Moreover, “there is an election in Mozambique, and the new president will come,” Pouyanne said.

“I intend to visit Mozambique by the end of the month to meet him to discuss (the project),” he said.

“And then we are working on the last piece in order to be able to restart the full project,” he said.

This is the financing of the project.

“When we inherited the project from Anadarko, it was quite a big financing package. It was almost $14 billion,” he said.

“I would say 70 or 80 percent of (financiers) are confirmed. We are waiting for three of them to confirm as well the commitment. Because it is important,” he said.

“Some of them are in Western countries where… I would say the stance towards financing of LNG projects and oil and gas projects has moved,” Pouyanne said.

“But all of them are telling us that they are committed to the contracts they signed,” he said.

“So we are waiting for the green light on this financing from these three credit agencies. I hope we will get them soon,” Pouyanne said.

“As soon as all that is in place we intend to restart the project,” he said.

Source: Lngprime.com

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US weekly LNG exports increase to 25 shipments

Energy News Beat

The agency said in its weekly report, citing shipping data provided by Bloomberg Finance, that the total capacity of these 25 LNG vessels is 94 Bcf.

This compares to 22 shipments and 83 Bcf in the week ending September 25.

Average natural gas deliveries to US LNG export terminals decreased 0.2 Bcf/d from last week to 12.4 Bcf/d, according to data from S&P Global Commodity Insights.

Natural gas deliveries to terminals in South Louisiana decreased by 1.8 percent (0.1 Bcf/d) to 7.6 Bcf/d, while natural gas deliveries to terminals in South Texas increased by 0.6 percent (less than 0.1 Bcf/d) to 4.4 Bcf/d.

The agency said natural gas deliveries to terminals outside the Gulf Coast decreased by 27.7 percent (0.1 Bcf/d) to 0.3 Bcf/d.

During the week under review, Cheniere’s Sabine Pass plant shipped seven LNG cargoes, and the company’s Corpus Christi facility sent four shipments.

The Freeport LNG terminal shipped five cargoes and Sempra Infrastructure’s Cameron LNG terminal shipped four cargoes, while Venture Global LNG’s Calcasieu Pass facility sent three cargoes during the week under review.

Also, the Elba Island terminal shipped two cargoes during the week ending October 2.

The Cove Point LNG export terminal in Lusby, Maryland, shut down operations around September 20 for planned annual maintenance that is expected to last about three weeks.

The Henry Hub spot price rose 14 cents from $2.62 per million British thermal units (MMBtu) last Wednesday to $2.76/MMBtu this Wednesday.

Moreover, the agency said the October 2024 NYMEX contract expired last Thursday at $2.585/MMBtu, down 5 cents from last Wednesday.

The November 2024 NYMEX contract price increased to $2.886/MMBtu, up 7 cents from last Wednesday to this Wednesday.

The price of the 12-month strip averaging November 2024 through October 2025 futures contracts climbed 5 cents to $3.246/MMBtu.

The agency said that international natural gas futures increased this report week.

Bloomberg Finance reported that average front-month futures prices for LNG cargoes in East Asia increased 13 cents to a weekly average of $13.16/MMBtu.

Natural gas futures for delivery at the Dutch TTF increased $1.04/MMBtu to a weekly average of $12.58/MMBtu.

The agency said that in the same week last year (week ending October 4, 2023), the prices were $14.44/MMBtu in East Asia and $12.11/MMBtu at TTF.

Source: Lngprime.com

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India ramps up Russian oil imports  

Energy News Beat

 

The South Asian country is looking for long-term energy supply deals with Moscow to support its rapid economic growth

India’s oil imports from Russia rose in September as overall demand for hydrocarbons increased ahead of the Diwali festive season, according to analytics firm Kpler, as reported by the Indian Express.

Shipments from Russia to India grew by 6.4% compared to August, reaching 1.88 million barrels per day, which accounted for 40.2% of New Delhi’s total imports. Analysts noted a significant rise in import volumes due to the expected resumption of operations at most refineries undergoing maintenance, starting in October.

The newspaper emphasized that India is “extremely sensitive” to oil prices. Although discounts on Russian fuel have narrowed over time, Indian refiners remain interested. Given the high import volumes, even lower discount levels lead to substantial savings.

Viktor Katona, head of oil analytics at Kpler, noted that expectations of a reduction in India’s purchases from Russia did not materialize. However, data indicated a noticeable increase in imports from Saudi Arabia, which has reportedly reduced its prices in a bid to increase its market share in India.

Katona noted that imports from Russia could rise further as Indian refineries seek to secure long-term contracts with Moscow for energy supplies. Business Standard reported last week, citing sources at the Ministry of Petroleum and Natural Gas, that India’s state-owned oil refiners are in talks with Russia to sign long-term supply agreements, potentially finalizing deals by next April, when the new fiscal year begins.

As the world’s third-largest consumer of crude oil, India relies on imports for over 85% of its needs. Russia has become India’s top oil supplier, with New Delhi often highlighting Moscow’s role in ensuring the nation’s energy security. While private refiners already have annual contracts for Russian oil, state companies have primarily purchased it through spot markets, reserving long-term contracts for Middle Eastern sources.

However, ministry sources indicated that high volatility in spot prices has made this arrangement less appealing. Long-term contracts are anticipated to stabilize pricing and provide India with consistent access to Russian oil at a lower cost.

India significantly increased its purchases of Russian crude following the outbreak of the Ukraine conflict and subsequent Western sanctions on Moscow in 2022, capitalizing on the discounts offered after Russia lost traditional buyers in the West.

Source: Rt.com

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The post India ramps up Russian oil imports   appeared first on Energy News Beat.