Pietro D. Pitts’ Post

**Botas signs another LNG contract, this time for 1.6 bcm/yr from Total** **EDIT: Total's press release says this is only a 'Heads of Agreement' contract, meaning it is non-binding and the deal has not been finalised, similar to Exxon agreement** Following the recent contract signed with Shell, Botas follows up with another contract starting in 2027 from Total. It has also signed recent contracts with Oman and Exxon, although the latter has never been confirmed as anything more than a preliminary agreement. With Botas' Russian and Irani contracts expiring in the coming years, it has been moving to diversify its supply, and has turned to LNG as a flexible source which it can take or divert elsewhere if not needed in Turkey. Turkey has a huge regasification capacity of more than 150mn m3/d which is not fully utilised particularly in summer, so signing more LNG contracts makes sense to better utilise their extensive infrastructure. I would still expect to see a renewal of some of their pipeline deals in the next year, as Turkey aspires to become a 'gas hub' for the region. If that is to come, then they will need supply from all directions as well as LNG, particularly as such contracts are normally priced differently to LNG. These supplies will be bolstered by Black Sea gas, production of which is slowly rising and should reach 10mn m3/d soon, and much higher in the longer term. This will make Turkey much less dependent on imports, as historically it has imported basically all of its gas. In turn, this gives them flexibility to sell on whatever is not needed. But regulatory changes are still needed if this 'hub' is really to happen, regardless of how much gas Turkey has. In particular there is a great need for more transparency, which is sorely lacking in Turkey even for market players already active there. If the desire is to attract foreign players to trade in Turkey, they need more transparency and regulatory certainty. #gas #CEE #Turkey #Botas #Total #LNG #trading #transparency

ConocoPhillips books capacity at Zeebrugge LNG terminal in Belgium

PETRONAS out, Shell in, : $50 BILLION SOUTH AMERICAN LNG PROJECT ADVANCES Argentina LNG could come into operation in 2027 via initial floating liquefaction facility ❓ YPF Argentina has signed an agreement with Super Mayor Shell to develop Argentina's LNG export potential:  ** The agreement, signed on Thursday in the Netherlands by YPF President and CEO Horacio Marin and Shell LNG Executive Vice President Cederic Cremers. , brings Shell on board for the first phase of the Argentina LNG project, which aims to produce 10 million tonnes per annum of LNG. **This agreement replaces Malaysia’s national energy behemoth #Petronas, exit the grassroots liquefaction project that it had been progressing as a 50:50 joint venture with YPF on first stage. However, Petronas and YPF will continue to work together on developing the #LaAmargaChica block area in #VacaMuerta (https://lnkd.in/gUMSxfqM) **YPF and Shell will work together to extract gas from Vaca Muerta and transport it via gas pipeline to Rio Negro province. **The first phase of the project will use LNG vessels, while subsequent phases will build LNG facilities on land. **Shell, which is a world leader in LNG production, is expected to help Argentina become a competitive and reliable global energy supplier

Liquefied natural gas (LNG) trade increased 3.1% globally in 2023 to average 52.9 billion cubic feet per day (Bcf/d), an increase of 1.6 Bcf/d from 2022. LNG export capacity expanded primarily in the United States, Mozambique, Russia, Indonesia, Norway, and Oman. In the United States, Freeport LNG returned to service in February 2023 after being offline since June 2022, and it was operating at full production capacity by April. Developers in both Mozambique and Russia commissioned new projects in 2022—the 0.4-Bcf/d Coral South Floating LNG in Mozambique and the 0.2-Bcf/d Portovaya LNG in Russia—and these projects reached full production in 2023. In Indonesia, the Tangguh LNG export facility added a third train. Norway and Oman increased LNG production capacity by optimizing operational efficiency of existing LNG plants. In 2023, the United States became the world’s largest LNG exporter, with exports increasing by 12% compared with 2022. Exports from the three largest global LNG exporters—the United States, Australia, and Qatar—accounted for 60% of all LNG exports in 2023. Algeria’s LNG exports increased 0.4 Bcf/d as additional natural gas feedstock became available from the newly commissioned production fields. Exports also increased from Norway and Australia mainly due to optimization of the export plants’ operational performance and from Indonesia after a capacity expansion at Tangguh LNG. (Global trade in liquefied natural gas continued to grow in 2023 – Today in Energy – EIA (U.S. Energy Information Administration) – July 11th 2024) #LNG #LNGTrade #LNGExports #LNGUSexports #LiquefiedNaturalGas

Ukrainian gas player snaps up 10% of LNG export capacity at Calcasieu Pass 2 D.Trading commits to import 2 million tpa of LNG after 2026 from Venture Global LNG A Swiss-registered trading subsidiary of Ukraine’s largest privately held energy player DTEK, D.Trading, has signed a liquefied natural gas supply agreement with Venture Global LNG aiming to secure a 10% capacity slot of the US company’s Calcasieu Pass 2 project. According to D.Trading, the company has committed to buy up to 2 million tonnes per annum of LNG from Calcasieu Pass 2 after 2026, for a period of 20 years. Venture Global says Calcasieu Pass 2 will have a nameplate export capacity of 20 million tpa of LNG and a peak capacity of approximately 24 million tpa. About half of the nameplate capacity for Calcasieu Pass 2 was sold before the deal with D.Trading, with German buyers accounting for about a third of offtake, Venture Global said last year after signing a 20-year, 2.25 million tpa LNG supply deal with Germany’s state-run importer Securing Energy for Europe (Sefe). Federal approval for Calcasieu Pass 2 is currently on hold following US President Joe Biden’s decision to pause permits for new LNG export facilities.

LNG is a hot topic

🇦🇷YPF and Shell have signed a historic agreement for the development of the Argentina LNG project, which aims to export liquefied natural gas (LNG) from Vaca Muerta. This commercial agreement, with a duration of 20 years, establishes exports of approximately 10 million tons per year (MTPA) of LNG, equivalent to about 40 million m3 per day of methane natural gas in gaseous state, representing around 30% of current national production. I posted this agreement was imminent. ✅Start of operations: Liquefied gas exports are scheduled to begin between 2027 and 2028. ✅Export volume: 10 MTPA of LNG, equivalent to 40 million m3 per day of natural gas. ✅Projected revenue: It is estimated to generate approximately US$7 billion per year, totaling US$140 billion over the entire agreement period. The project contemplates the use of two gas liquefaction ships that will be installed in the San Matías Gulf, in the province of Río Negro. These ships will cool the gas to -161°C to compress its volume 600 times, thus facilitating its maritime transport. 🧠Shell: Will provide technical knowledge (know-how) and act as an "offtaker", ensuring demand for the produced LNG. 🚀This agreement represents a significant milestone for the Argentine energy industry, positioning the country as a potential major LNG exporter globally. The final investment decision (FID) is expected in 2025, at which time the participating companies will request entry into the Large Investment Incentive Regime (RIGI) to obtain tax benefits and free access to the dollars generated. The Argentina LNG project not only involves YPF and Shell, but also expects the participation of other gas producers such as Pan American Energy (PAE), Pampa Energía, and Tecpetrol. This development promises to significantly boost the Argentine economy and strengthen its position in the global energy market.

In an ongoing effort, Mexico is developing 31 mtpa of LNG export capacity on its west coast, with most of the feed expected to come through imports — primarily from the United States. https://ow.ly/syZL50TcEUE

Peru LNG exports steady in April

Petrobangla plans to begin the third floating LNG terminal through an open tender process while initiating feasibility studies for a fourth, highlighting economic and logistical concerns