March’s top news stories

Summit Power and Mitsubishi to develop $3bn LNG power project in Bangladesh

Summit Power International’s (SPI) subsidiary Summit signed a memorandum of understanding (MOU) with Mitsubishi and its subsidiary Diamond Gas International to develop an integrated liquefied natural gas (LNG) power project at Matarbari in Bangladesh.

At an estimated cost of $3bn, the MoU will see the parties develop an integrated LNG-receiving terminal with a regasification capacity of up to 1,500 million cubic feet per day (mmcfd).

The MoU also includes the importation of LNG and the development of two 1,200MW gas turbine combined-cycle power projects.

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New study linked shale formation to ash from dinosaur-era volcanoes

A study by Rice University geologists showcased that formations of shale gas and oil fields in an area reaching from Texas to Montana were caused by ash layers from volcanic eruptions that occurred around 100 million years ago.

The study was funded by the National Science Foundation, the Guggenheim Foundation and the Geological Society of America.

It found that the shale formations can be traced back to a series of events following enormous volcanic activity towards the end of the period.

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Cheniere Energy began supply of LNG to India

Cheniere Energy commenced a shipment of US-sourced liquefied natural gas (LNG) to India from its Sabine Pass liquefaction facility in Louisiana, US.

The shipment was the first to be made according to a 20-year sale and purchase agreement (SPA) with GAIL (India) that was signed in December 2011.

Under the agreement, Cheniere is required to sell and deliver around 3.5 million tonnes of LNG per year to GAIL.

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SUEZ and CNOOC signed agreement to strengthen collaboration in oil and gas sector

SUEZ NWS and CNOOC Energy Technology signed a comprehensive strategic partnership agreement to pursue environmental projects in the oil and gas sector.

Expected to strengthen long-term cooperation between the two companies, the deal will offer environmental services to CNOOC’s petrochemical assets and international oilfield development projects.

CNOOC Energy Technology Chairman and CNOOC Group vice-president Lv Bo said: “As one of the top state-owned petrochemical companies, CNOOC has a long-standing commitment to environmental protection. We always put safety and environmental integrity first.”

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Oklahoma unveiled new fracking protocol to mitigate earthquakes

The Oklahoma Corporation Commission (OCC) unveiled additional plans to tackle the problem of earthquakes occurring as a result of hydraulic fracturing in the South Central Oklahoma Oil Province (SCOOP) and Sooner Trend Anadarko Basin Canadian and Kingfisher counties (STACK) oil and gas plays.

As part of the measures, a new protocol was formulated to further reduce the chances of a felt earthquake caused by well completion activities in the plays.

The move came after the OCC’s Oil and Gas Conservation Division (OGCD) and the Oklahoma Geological Survey (OGS) created a seismicity protocol for operators in December 2016.

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Shell called for investments to avoid potential LNG supply shortage

Shell urged companies to make significant investments in liquefied natural gas (LNG) production projects to thwart supply shortages in 2020.

Based on projections made by the company in its annual outlook, the demand for LNG will be driven by Asian markets.

Last year, Japan took pole position in terms of LNG import, with China following in second place.

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PGNiG formed alliance with MPCL to explore JV options in Pakistan

Polish oil and gas company Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) signed a memorandum of understanding (MoU) to form an alliance with Mari Petroleum Company (MPCL) for mutual cooperation in the upstream segment within and outside of Pakistan.

The partnership is expected to leverage MPCL’s expertise and technical knowledge gained on the local and international markets.

Under the terms of the agreement, the parties will examine the possibility of joint ventures (JV) in exploration and production, including appraisal and development of shale gas potential in Pakistan.

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EnerVest to sell Eagle Ford and Austin Chalk assets for $2.66bn

US-based oil and gas producer EnerVest signed agreements to sell its Eagle Ford and Austin Chalk assets to TPG Pace Energy (TPGE) in a cash-and-stock deal valued at around $2.66bn.

Led by Occidental Petroleum’s former CEO Steve Chazen, TPGE is a special purpose vehicle focused on acquisitions in the energy sector.

Under the terms of the agreements, EnerVest and TPGE will form Magnolia Oil & Gas, with Chazen as the CEO.

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US put sanctions on 15 South Sudanese oil firms

The US issued sanctions against 15 South Sudanese oil firms in an attempt to cut off the flow of funds to the ongoing humanitarian crisis in South Sudan.

Revenues from these entities are said to be used by the Government of South Sudan to fund the conflict, which began in 2013 between supporters of president Salva Kiir and vice-president Riek Machar.

The 15 firms have been placed on the US Department of Commerce’s Entity List, which means any companies wishing to export, re-export or transfer any item of US-origin to these firms need to obtain a licence to do so.

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British Columbia introduced framework to attract investment in LNG projects

The Government of British Columbia (BC) in Canada unveiled tax incentives under a  framework for liquefied natural gas (LNG) projects to encourage investment.

Under the new framework, LNG projects will be exempted from provincial sales tax (PST) and LNG income tax.

The government announced these measures in the wake of a forthcoming final investment decision on a C$40bn ($31bn) LNG Canada project that seeks to build a natural gas pipeline from the north-eastern part of the province to a new terminal in Kitimat.