Withdrawals from US gas storage kept falling this week, with analysts attributing the storage-build to mild weather in South Central regions and a subsequent rise of gas injection into salt cavern storage. South Central was badly hit by the mid-February ‘Big Freeze’ in Texas but temperates already sprung back to a 10% warmer-than-normal March to-date.
Gazprom is reviewing its options to produce and utilize hydrogen in Russia, and export the fuel through its existing gas pipeline infrastructure. Grey hydrogen is cheaper to make for large natural gas producers such as Gazprom, and the Russian gas major is already in talks with Germany to add hydrogen to its gas deliveries through the North Stream-2 pipeline.
Joe M. Kang, President of the International Gas Union (IGU), has highlighted the role of natural gas as an enabler of the energy transition. Speaking at the 50th GECF Gas Lecture Series, he criticised the “lack of a global approach” on how to ensure clean, secure and affordable energy given that “renewables cannot yet replace hydrocarbons.”
Raising the Social Cost of Carbon (SCC) is seen as a tool for US Democrats to obstruct upstream gas projects, notably fracking leases. Energy Aspects believes the bar for federal approval of new fossil fuel infrastructure will rise once the Democrats gain majority of the Federal Energy Regulatory Commission (FERC) in July.
Steel and other energy-intensive industries have “no future the UK,” lobbyists claim, blaming the government’s 2050 Net Zero emissions target for the rise in electricity prices. Figures by the industry association UK Steel indicate electricity prices in Britain are between 60% and 80% higher than those in France and Germany.
Western Gas is re-examining the idea of delivering natural gas from its Equus project in Australia at competitive prices to the East Coast via a transcontinental pipeline. The feasibility of that pipeline is being examined together with the infrastructure company APA Group, comparing the cost of transporting gas by pipeline versus LNG shipments.
Russia’s Gazprom is adding an auxiliary power plant to expand the output from its Chayandinskoye oil, gas and condensate field, put into operation in December 2019. Igor Krutikov, Director General of Gazprom Dobycha Noyabrsk announced the 72 MW auxiliary power plant is “ready for launch” and will help achieve “energy independence” for upstream operations.
Black Bear Transmission, headquartered in Houston, has completed the sale of gas gathering assets owned by BBT Alabama to an undisclosed buyer. The divesture comes just month after Black Bear bought NGT Assets from Third Coast Midstream in September 2020, in a move to streamline its business structure and save cost.