Shell says its QGC joint venture in the Australian state of Queensland is to drill up to 161 additional wells - a move that enables further supply for both domestic customers and exports. The announcement comes just over a week after Australia’s Prime Minister Malcolm Turnbull threatened to curb LNG exports unless big producers did not provide more gas for the domestic market.
The rise in oil prices from last summer onwards is now filtering through to Russian contract gas prices, while at the same time LNG prices and European benchmarks are falling – making Russian gas less competitive and increasing the likelihood of large volumes of LNG moving to Europe. The trend comes after a period of record Russian gas imports to Europe, coinciding with low gas prices linked to crude’s earlier weakness in 2015 and the first half of 2016.
BP has brought into the biogas sector, snapping up Clean Energy Fuels Corp's biomethane production assets for $155 million on March 1st. The move further expands its gas supply portfolio in the US and reflects a strategic shift toward less carbon-intensive projects.
BP said in a strategy update on Feb 28th that it was exploring new investments in low-carbon forms of energy, a part of the industry in which it sees significant future business potential.