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BP HAS completed a concept development phase study into its large-scale green hydrogen hub, H2Kwinana, in Western Australia and is now a step closer to achieving a final investment decision for the project.

In separate news, the firm has also led a US$12.5m investment in green hydrogen specialist Advanced Ionics, a climate-tech startup from Milwaukee, US. 

Established in 1955, and serving as an import terminal since 2021, Kwinana is the site of a former BP oil refinery.  

Subject to internal and government approvals, however, BP, in partnership with Macquarie Group, is planning on turning the facility into an energy hub that along with producing green hydrogen to support domestic and export demand, will also produce sustainable aviation fuel (SAF) and hydrogenated vegetable oil (HVO), also known as renewable diesel. 

The hub proposes the installation of an electrolyser of at least 75 MW, hydrogen storage, compression, and truck loading facilities, and upgrades to BP’s existing on-site hydrogen pipeline. 

As part of the study, three hydrogen production scenarios were evaluated; the first would see hydrogen production of 44 t/d; the second, 143 t/d, while a potential growth target of 429 t/d was selected as the third and final case. According to the Commonwealth Scientific and Industrial Research Organisation (CSIRO), this latter option for a large plant design is achievable. 

CSIRO also notes the cost estimates for each of these scenarios at A$334m–399m (US$213m–219m), A$1.25bn–1.49bn, and A$2.43bn–2.92bn, respectively. 

The project has already received funding support from state and federal sources, including a grant of up to A$70m for the development of the site, and A$300,000 in 2021 from the Western Australian Renewable Hydrogen Fund. 

BP, which is also a member of the Australian Hydrogen Council and the Global Hydrogen Council, said on their website: “BP’s transformation of the Kwinana site recognises the crucial role hydrogen and renewable fuels have to play in helping to decarbonize energy intensive industries like mining, minerals processing and heavy transport in Australia and across the Asia Pacific.

“In partnership with governments, customers and stakeholders, we will use our experience to create the fuels and jobs to power the energy transition.” 

In support of the planned project to produce SAF and biodiesel from bio feedstocks at Kwinana, BP has awarded Technip Energies a contract that covers the engineering, procurement, and fabrication (EPF) of a modularised hydrogen production unit. 

The unit will have a capacity of 33,000 m³/h using Technip Energies’ SMR proprietary technology and will be capable of producing hydrogen from either natural gas or biogas produced by the Kwinana biorefinery. 

Electrolyser venture

With over US$1bn already invested in technology companies, one of BP’s latest additions to its global portfolio of hydrogen projects is a sizeable investment into Advanced Ionics, a firm specialising in electrolyser technology. 

The funding round, which closed at US$12.5m and included Clean Energy Ventures, Mitsubishi Heavy Industries, and GVP Climate as additional investors, will help Advanced Ionics’ grow their Symbion water vapour electrolyser technology for heavy industry.  

Symbion helps reduce the cost and electricity requirements for green hydrogen production by symbiotically integrating with standard industrial processes to harness available heat.  

The electrolyser stack requires less than 35 kWh/kg of produced hydrogen compared to more than 50 kWh/kg for typical electrolysers. This lower electricity requirement could make green hydrogen accessible for less than $1/kg at scale. In addition, the system is made of widely available steels and other simple materials rather than expensive metals or materials common in other electrolysers, the firm explained.  

Gareth Burns, vice-president of BP ventures, said: “Advanced Ionics’ technology has the potential to drive down cost and disrupt the hydrogen market. We look forward to working with Advanced Ionics on the next stage of its growth.” 

Advanced Ionics was recognised for its technology as a finalist in BloombergNEF’s Pioneers award for 2023. The Pioneers award recognises early-stage companies seeking to introduce innovations to guide the world towards a net-zero economy. 

By The chemical Engineer, September 29, 2023

Saudi Aramco (2222.SE) is considering selling a stake worth as much as $50 billion through a secondary share offering on the Riyadh bourse after consultations with advisers, the Wall Street Journal reported on Friday.

The sale could happen before the end of the year, the report said, adding that Aramco has been “sounding out” potential investors, such as other multinational oil companies and sovereign-wealth funds, about participating in the deal.

The Kingdom has decided to host any new Aramco offering on the Riyadh exchange to avoid legal risks associated with an international listing, the report said, citing Saudi officials and other people familiar with the plan.

Saudi Aramco declined to comment when contacted by Reuters on Friday.

Saudi Aramco is the world’s biggest oil company, with a market value of $2.25 trillion. Its shares have risen 19.6% this year.

The company completed the world’s largest initial public offering in late 2019, raising $25.6 billion and later selling more shares to raise the total to $29.4 billion.

Saudi Arabia had planned in addition to sell Aramco shares worth up to $50 billion last year, but decided market conditions were unfavourable, the Journal said.

Saudi Arabia’s Crown Prince Mohammed bin Salman, the kingdom’s de facto ruler, in January 2021 said that Saudi Aramco would sell more shares, with proceeds used bolster the country’s main sovereign wealth fund.

“There will be Aramco share offerings coming in the coming years, and this cash will be transferred to the Public Investment Fund,” said Prince Mohammed, speaking at the kingdom’s Future Investment Initiative conference.

The Public Investment Fund, which sometimes receives government injections of cash, spent 120 billion riyals ($32.00 billion) domestically last year as it sought to implement an ambitious economic agenda to wean the economy off oil by building new industries.

The fund, which manages about $700 billion in assets, made a total comprehensive loss of 58.545 billion riyals ($15.61 billion) last year, according to its annual report published last month.

Also last month, Aramco announced an additional dividend of nearly $10 billion, most of which will go to the government, in the first of several extra payouts on top of its expected $153 billion base dividend for 2022 and 2023.

It reported a 38% decline in second quarter profit to 112.81 billion riyals from the year earlier period.

Reuters by Urvi Manoj Dugar, September 29, 2023

The per barrel price for the WTI grade of crude oil reached $85 on Friday—the highest price point yet this year as falling inventory levels spook the market.

WTI crude oil briefly reached $85 per barrel before sagging to $84.90 around 10:00 a.m. ET. The last time WTI traded at a level that high was November 2022.

For the day, WTI was trading up $1.33 per barrel, or 1.59%.

Brent crude oil was also trading up on the day, by $1.05 per barrel, or 1.21%, at $87.88—also a new 2023 record.

A big factor in the rising price of crude oil are the falling inventories in the United States, which dipped another 10.6 million barrels according to the Energy Information Administration for the week ending August 25.

Another contributing factor to strong oil prices is the OPEC+ alliance, which includes heavyweights Saudi Arabia and Russia. The duo has reached a deal concerning production cuts, for which Russia has said it will provide details next week. The market is weighing the likelihood that Saudi Arabia or Russia could extend or deepen their current production cuts. More analysts than not expect that Saudi Arabia will extend its 1 million bpd production cut into October.
A third support under oil prices is the weakening dollar, which makes crude oil more affordable for non-dollar holders, thereby stimulating demand.

The price rise will make it more difficult for the Biden Administration to continue the painstakingly slow process of refilling the nation’s Strategic Petroleum Reserve, which has grown by an average of 600,000 barrels per week for the last few weeks, after draining 300 million barrels out of the SPR over the last few years.

Despite the 300 million barrels leaving the SPR and going into commercial inventories, crude oil inventories—excluding that in the SPR—are more than 100 million barrels shy of July 2020 levels.

OilPrice.com by Julianne Geiger, September 29, 2023

Abu Dhabi National Oil Company (ADNOC) will buy 30% in the Absheron gas field in the Caspian Sea in Azerbaijan by acquiring stakes from the current partners in the field, TotalEnergies and SOCAR.

The French supermajor and State Oil Company of the Republic of Azerbaijan (SOCAR) have signed an agreement to sell a 15% participating interest each in the Absheron gas field to ADNOC, TotalEnergies said on Friday.

After completion of the transaction, subject to the approval by the relevant authorities, TotalEnergies and SOCAR will each own 35% in Absheron, and ADNOC will have 30% in the gas and condensate field, where first gas was achieved last month. Financial details of the transaction are not being disclosed.

ADNOC’s investment in the Caspian region is part of the strategy of the UAE’s state oil and gas giant to expand on international gas markets.

“We believe this strategic partnership with SOCAR and TotalEnergies, unlocks the potential of the Caspian region for decades to come and complements a broader energy collaboration between the UAE and Azerbaijan that will accelerate the growth of the global renewable energy sector as both countries take bold steps to transition towards a lower-carbon future,” Musabbeh Al Kaabi, Executive Director of Low Carbon Solutions and International Growth at ADNOC, said in a statement carried by the Emirates News Agency, WAM.

Last month, TotalEnergies and its joint venture partner SOCAR began natural gas production from the Absheron gas and condensate field. The first phase of the development of the field has a production capacity of 4 million cubic meters of gas per day and 12,000 barrels per day of condensate.

The gas will be sold on the domestic market in Azerbaijan, which could free more gas from other Azerbaijani fields for exports, analysts say.

“TotalEnergies is pleased to welcome ADNOC, one of its strategic partners, into the Absheron gas field, where production of the first phase started in early July, and which offers a significant further development potential to meet the growing gas demand”, Nicolas Terraz, President, Exploration & Production at TotalEnergies, said today, commenting on the deal with the UAE firm.

By OilPrice.com, August 11, 2023

Next-Gen Biofuels: Harnessing the Power of GMOs for a Sustainable Future – EnergyPortal.eu

The quest for sustainable and renewable energy sources has been a pressing concern for governments, industries, and researchers worldwide. As we face the growing threat of climate change and depleting fossil fuel reserves, the need for cleaner and more efficient energy alternatives becomes increasingly urgent. One promising avenue in this pursuit is the development of next-generation biofuels, which harness the power of genetically modified organisms (GMOs) to produce energy-rich fuels from biomass.

Biofuels, such as ethanol and biodiesel, have been in use for several years as a means to reduce greenhouse gas emissions and dependence on fossil fuels. However, conventional biofuels are primarily derived from food crops, such as corn and sugarcane, which has raised concerns about the impact on food security and land use. Next-generation biofuels aim to address these issues by utilizing non-food biomass, such as agricultural residues, forestry waste, and dedicated energy crops, as feedstocks for fuel production.

One of the key challenges in producing next-generation biofuels is the efficient conversion of biomass into fermentable sugars, which can then be processed into fuels. This process typically involves breaking down the complex carbohydrates in plant cell walls, known as lignocellulose, into simpler sugars. However, lignocellulose is highly resistant to degradation, making this conversion process difficult and energy-intensive.

This is where GMOs come into play. By genetically engineering microorganisms, such as bacteria and yeast, scientists can enhance their ability to break down lignocellulose and ferment the resulting sugars into biofuels. These modified organisms can produce enzymes that are more efficient at degrading biomass, reducing the energy input required for the process and increasing the overall yield of biofuels.

One example of this approach is the development of genetically modified strains of the yeast Saccharomyces cerevisiae, which is commonly used in the production of ethanol. Researchers have introduced genes from other microorganisms that enable the yeast to ferment both glucose and xylose, two major sugars found in lignocellulosic biomass. This modification allows for the simultaneous fermentation of both sugars, increasing the efficiency of biofuel production and reducing the overall cost.

Another promising avenue for next-generation biofuels is the use of algae as a feedstock. Algae can grow rapidly and produce large amounts of biomass, making them an attractive source of renewable energy. Moreover, algae can be cultivated on non-arable land and in wastewater, reducing competition with food crops and providing additional environmental benefits. Genetic engineering can further enhance the potential of algae for biofuel production by increasing their lipid content, which can be converted into biodiesel, or by enabling them to directly produce biofuels, such as ethanol or butanol.

While the potential benefits of next-generation biofuels are significant, there are also concerns about the environmental and social impacts of GMOs. Critics argue that the release of genetically modified organisms into the environment could have unintended consequences, such as the spread of antibiotic resistance or the disruption of natural ecosystems. Additionally, there are concerns about the concentration of power in the hands of a few biotechnology companies, which could lead to monopolistic practices and limit access to these technologies for developing countries.

Despite these challenges, the development of next-generation biofuels offers a promising path towards a more sustainable and secure energy future. By harnessing the power of GMOs, we can unlock the full potential of biomass as a renewable energy source, reducing our reliance on fossil fuels and mitigating the impacts of climate change. As research and development in this field continue to advance, it is crucial that we also engage in an open and transparent dialogue about the risks and benefits of these technologies, ensuring that they are deployed responsibly and equitably for the benefit of all.

By energyportal.eu, August 15, 2023

In the midst of the global shift towards green energy, the Oil Trader iFex, which is an oil trading platform, trading of oil has faced significant changes and challenges. As the world becomes more conscious of environmental sustainability, the oil industry is compelled to adapt to new regulations, consumer demands, and emerging energy technologies. This article explores the dynamic landscape of trading oil in the era of green energy transition, highlighting key developments, market trends, and strategies employed by businesses in this evolving industry.

The Green Energy Transition

Understanding the Transition

The green energy transition is a continuous and crucial process that involves shifting away from conventional energy sources reliant on fossil fuels, towards cleaner and renewable alternatives. This transition is motivated by multiple factors, including the urgency to address climate change, minimize greenhouse gas emissions, and secure a sustainable energy future. As nations across the globe commit to achieving carbon neutrality, the demand for oil is anticipated to undergo significant changes.

Impact on Oil Trading

• Decreased Demand: With the increasing adoption of renewable energy sources, the demand for oil has witnessed a decline. As electric vehicles become more prevalent, the transportation sector, which heavily relies on oil, is gradually shifting towards greener alternatives. Additionally, advancements in energy-efficient technologies have reduced the overall energy consumption in various industries, further impacting oil demand.
• Volatility in Prices: The transition to green energy has introduced greater price volatility in the oil market. Fluctuations in demand and supply, coupled with geopolitical factors, have created an unpredictable trading environment. As governments implement stricter environmental regulations and incentives for renewable energy, oil prices can experience sharp fluctuations.

• Emergence of ESG Factors: Environmental, Social, and Governance (ESG) factors have gained prominence in the investment landscape. Investors are now considering a company’s environmental impact, social responsibility, and corporate governance practices when making investment decisions. Oil companies are under pressure to align with sustainable practices and demonstrate their commitment to reducing carbon emissions.

Strategies for Successful Oil Trading

To navigate the challenges and seize opportunities in the era of green energy transition, oil trading businesses must adopt comprehensive strategies that integrate sustainability, innovation, and market intelligence. The following strategies can help oil traders thrive in this changing landscape:

Diversification

In light of the persistent decline in long-term oil demand, it is prudent for traders to expand their investment portfolios by including assets related to renewable energy. By allocating resources to wind, solar, and hydroelectric projects, traders can establish a safeguard against diminishing oil revenues. Diversifying investments enables traders to capitalize on the expanding renewable energy market, while simultaneously mitigating the risks associated with a contracting oil industry.

Technological Innovation

For oil traders aiming to navigate the green energy transition, embracing technological advancements is of utmost importance. By harnessing the power of artificial intelligence, machine learning, and data analytics, traders can access valuable insights into market dynamics, optimize their supply chains, and uncover untapped opportunities. Moreover, exploring and investing in emerging technologies like carbon capture and storage allows traders to establish themselves as pioneers in the realm of sustainable energy solutions. By embracing these advancements, oil traders can proactively adapt to the changing landscape and contribute to a greener and more sustainable future.

Collaboration and Partnerships

To stay competitive, oil traders should foster collaboration and partnerships within the renewable energy sector. Engaging in joint ventures, strategic alliances, and research collaborations can facilitate knowledge sharing and help traders gain expertise in renewable energy technologies. Collaborations can also open avenues for diversified revenue streams and enable access to new markets.

Sustainable Practices and Reporting

Incorporating sustainable practices into daily operations is essential for oil traders aiming to enhance their environmental credentials. Implementing energy-efficient measures, minimizing carbon emissions, and adopting responsible waste management practices are key steps towards sustainability. Additionally, transparent reporting on environmental performance allows traders to build trust with stakeholders and meet the growing demand for ESG-focused investments.

Conclusion

As the world transitions towards a greener future, the trading of oil faces a paradigm shift. The decline in oil demand, increased price volatility, and the rise of ESG factors necessitate strategic adaptations by oil traders. Diversification, technological innovation, collaboration, and sustainable practices are critical for navigating this changing landscape successfully. By embracing these strategies, oil traders can position themselves as leaders in the era of green energy transition and thrive amidst evolving market dynamics.

By THE NATION, August 15, 2023

The Netherlands was the top destination for US liquefied natural gas supplies for the second month in a row in June, according to the Department of Energy’s newest LNG monthly report.

The report shows that US terminals shipped 45.9 Bcf of LNG to the Netherlands in June, 45.6 Bcf to France, 24.7 Bcf to Japan, 23.6 Bcf to China, and 22.7 Bcf to Argentina.

These five countries took 49.5 percent of total US LNG exports in June.

In May, US terminals shipped 64.5 Bcf of LNG to the Netherlands, while the UK was the top destination for US LNG supplies for six months in a row prior to that.

The Netherlands has expanded its capacity with the launching of Gasunie’s Eemshaven FSRU-based LNG terminal that mostly receives cargoes from the US.

The country’s first FSRU-based terminal adds to the Gate LNG import facility in Rotterdam, also operated by Gasunie and Vopak.

US LNG exports rise 9.1 percent

The US exported in total 327.8 Bcf of LNG in June, up by 9.1 percent compared to the same month last year and a drop of 10.6 percent from the prior month, the DOE report shows.

US terminals shipped 108 LNG cargoes in June, compared to 96 cargoes in June 2022 and 127 cargoes in May this year, according to the report.

Sempra’s Cameron LNG plant sent 29 shipments during June, Cheniere’s Sabine Pass plant sent 27 cargoes and its Corpus Christi terminal shipped 18 cargoes.

In addition, Freeport LNG sent 21 cargoes, Cove Point LNG sent 7 cargoes, and Elba Island LNG dispatched 6 shipments.

4924 LNG cargoes

According to DOE’s report, the weighted average price by export terminal reached 7.09/MMBtu in June.

Moreover, the report said that in the period from February 2016 through June 2023, the US exported 4924 cargoes or 15,696.5 Bcf to 44 countries.

South Korea remains the top destination for US LNG with 529 cargoes, followed by Japan with 401 cargoes, the UK with 390 cargoes, France with 377 cargoes, and Spain with 375 cargoes.

Besides these five countries, the Netherlands, China, India, Turkey, and Brazil are in the top ten as well.

By LNG Prime, August 18, 2023

Energy Transfer LP (NYSE: ET) (“Energy Transfer”) and Crestwood Equity Partners LP (NYSE: CEQP) (“Crestwood”) announced today that the parties have entered into a definitive merger agreement pursuant to which Energy Transfer will acquire Crestwood in an all-equity transaction valued at approximately $7.1 billion, including the assumption of $3.3 billion of debt, based on the closing price on August 15, 2023.

Under the terms of the agreement, Crestwood common unitholders will receive 2.07 Energy Transfer common units for each Crestwood common unit. The transaction is expected to close in the fourth quarter of 2023, subject to the approval of Crestwood’s unitholders, regulatory approvals, and other customary closing conditions. Upon closing, Crestwood common unitholders are expected to own approximately 6.5% of Energy Transfer’s outstanding common units.

Complementary Assets

Crestwood’s system includes gathering and processing assets located in the Williston, Delaware and Powder River basins, including approximately 2.0 billion cubic feet per day of gas gathering capacity, 1.4 billion cubic feet per day of gas processing capacity and 340 thousand barrels per day of crude gathering capacity. If consummated, this transaction would extend Energy Transfer’s position in the value chain deeper into the Williston and Delaware basins while also providing entry into the Powder River basin. These assets are expected to complement Energy Transfer’s downstream fractionation capacity at Mont Belvieu, as well as its hydrocarbon export capabilities from both its Nederland Terminal in Texas and the Marcus Hook Terminal in Philadelphia, Pennsylvania.

This transaction is also expected to provide benefits to Energy Transfer’s NGL & Refined Products and Crude Oil businesses with the addition of strategically located storage and terminal assets, including approximately 10 million barrels of storage capacity, as well as trucking and rail terminals. These systems are anchored by predominantly investment-grade producer customers with firm, long-term contracts, and significant acreage dedications.

Positive Financial Impact

The transaction is expected to be immediately accretive to distributable cash flow per unit as well as neutral to Energy Transfer’s leverage metrics upon closing. Similar to Energy Transfer, Crestwood’s cash flows are supported by primarily fee-based revenues from long-term contracts with investment-grade counterparties. In addition, with the increased scale and strengthened balance sheet, Energy Transfer expects to be able to improve on the current cost of financing for the acquired debt securities. Structured as a 100% unit-for-unit exchange, the transaction is tax-efficient to Crestwood unitholders and is anticipated to position both partnerships for long-term value upside through the combination.

Energy Transfer also expects to achieve at least $40 million of annual run-rate cost synergies before additional benefits of financial and commercial opportunities.

Compelling Value Creation for Crestwood Unitholders

Energy Transfer’s premier business model, strong balance sheet and backlog of growth opportunities supports the potential for significant additional value creation over time. The tax-efficient transaction is expected to provide Crestwood unitholders a benefit to distributions per unit and an opportunity to participate in Energy Transfer’s targeted annual distribution per unit growth rate of 3-5%.

Advisors

BofA Securities acted as sole financial advisor to Energy Transfer and Kirkland & Ellis LLP acted as legal counsel. Intrepid Partners, LLC and Evercore acted as financial advisors to Crestwood and Vinson & Elkins LLP acted as legal counsel.

Crestwood Investor Call

Crestwood management will host a conference call for investors and analysts of Crestwood today at 9:00 a.m. Eastern Time (8:00 a.m. Central Time), which will be broadcast live over the Internet. Investors will be able to access the webcast via the “Investors” page of Crestwood’s website. Please log in at least ten minutes in advance to register and download any necessary software. A replay will be available shortly after the call for 90 days.

By Energy Transfer, August 23, 2023

Enbridge Inc. (NYSE: ENB) and (TSE: ENB) has received an average rating of “Moderate Buy” by six brokerages covering the stock, according to a report by Bloomberg. Out of the six investment analysts, three have assigned a hold rating while the remaining three have given a buy rating to the company. The average 12-month target price based on analysis from various brokerages is $57.67.

On Friday, August 14, 2023, NYSE ENB opened at $36.72. Over the past fifty days, the business has maintained a moving average price of $36.90 and over the last 200 days, it recorded an average moving price of $38.01. Enbridge’s one-year low stands at $35.02 with its highest point reaching $44.55 during the same period.

Notably, Enbridge holds a debt-to-equity ratio of 1.27, indicating its utilization of borrowed funds in relation to equity investments. The company boasts a quick ratio of 0.51 and current ratio of 0.64, suggesting its ability to meet short-term obligations using assets that can be readily converted into cash. With a market capitalization of $74.27 billion, Enbridge operates with a price-to-earnings ratio of 26.23 and a beta value of 0.84.

Enbridge Inc., along with its subsidiaries, serves as an energy infrastructure company that operates through five main segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services.

The Liquids Pipelines segment primarily focuses on operating pipelines and associated terminals for transporting diverse grades of crude oil as well as other liquid hydrocarbons across Canada and the United States.

As an energy infrastructure leader in North America, Enbridge aims to ensure reliable access to energy resources for customers while considering the environmental impact. The company demonstrates its commitment to sustainability and renewable energy through its Renewable Power Generation segment, which complements its traditional energy operations.

Enbridge’s Gas Transmission and Midstream segment focuses on transporting natural gas, enabling it to meet the growing demand for this cleaner fuel source. The company’s Gas Distribution and Storage segment manages regulated natural gas distribution systems in Canada and contributes to improving environmental standards within the industry.

Furthermore, Enbridge offers Energy Services, expanding its portfolio to include a range of energy-related activities such as marketing, supply and logistics services.

In conclusion, Enbridge Inc. emerges as an important player in the energy infrastructure sector. With an average “Moderate Buy” rating from brokerages and a target price of $57.67 according to analyst predictions, the company presents potential investment opportunities. As it continues to navigate the complexities of the energy industry, Enbridge’s strategic segments allow it to adapt to changing market demands while promoting sustainable practices in line with environmental considerations.

By Best Stocks, August, 2023