European gas storage is full

European gas storage is full and Equinor has highlighted three potential catalysts that could provide short term relief for the current super low European gas prices A delay to Nord Stream 2 due to sanctions The lack of a transit agreement with Ukraine A colder than expected winter The Nord Stream 2 project was expected to come onstream on 1 January 2020. However with ongoing concerns that the EU's reliance on Russian gas continues to grow...

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First step in reversion of LNG pricing structures

LNG has historically been priced to an oil price marker. This is because until recently, LNG has been a point-to-point business - LNG was produced in one country and shipped under a 20-30 year contract to a single destination and the LNG tanker would shuffle back-and-forth between the two end points. This underpinned the project financing for construction of liquefaction projects. LNG prices were then linked to oil as both the LNG producing nations...

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Waha gas pricing goes negative

Chart of the week: Waha hub gas pricing goes negat...

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Valeura: Turkey's new gas supplier

Valeura continues to make good progress in Turkey where the company announced a technical success at the Inanli-1 well in November. The well continues to be tested into 2019. Turkey is structurally short gas, importing gas by pipeline and LNG - LNG regasification capacity is 12bcm/year with cargoes from Algeria, Nigeria and the Middle East. Domestic gas production is therefore long awaited and with Valeura owning the local pipeline network around its licence areas, it is in a good position to start supplying the grid once it is in a position to...

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SDX makes a play opening discovery in Morocco – Lalla Mimouna

SDX has made a gas discovery in Morocco at the LNB-1 well on its Lalla Mimouna licence. The well successfully drilled into two targets: Lafkerena (deeper) Upper Dlalha (shallower) The well is being completed as a producer in the Upper Dlalha and the deeper Lafkerena is being suspended until the appropriate equipment can be mobilised. The Lafkerena target is significantly larger than previously encountered on the nearby Sebou licence. Management...

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SDX has made a gas discovery on its South Disouq licence

SDX made a gas discovery with the Ibn Yunus-1X well on its South Disouq licence. The well is planned to be tied into nearby infrastructure being constructed to commercialise the original gas on the block (SD-1X). First gas on the licence, which will now be from both wells, is targeted for H2 2018. SDX has a 55% operated stake in the licence, having farmed out 45% to IPR in February 2015. SDX made the SD-1X discovery in 2017 which tested successfully...

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Double success for Energean – IPO and FID

Energean put the East Med on the map this week propelling the region into the headlines. Energean debuted on the London Stock Exchange at the beginning of this week with its Initial Public Offering and USD460 million of new money putting the company’s market capitalisation at just under USD1 billion. The company’s flagship asset is its 70% stake in the Karish & Tanin gas fields offshore Israel which contain 2.4tcf of gas and 33mmboe of light...

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Delek and Noble seeking to acquire gas pipeline to Egypt

Following Noble and Delek’s agreement to sell 64bcm of gas into Egypt via Egyptian intermediary Dolphinus Holdings, the two upstream companies have commenced discussions to acquire EMG, the business which owns the Arish-Ashkelon pipeline (otherwise known as the EMG pipeline). This is one of the routes contemplated by Noble and Delek as part of plans to export gas into the wider East Med and Europe. The 64bcm of gas will be sourced from Tamar...

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Dolphinus and the wider Egyptian gas hub story

Dolphinus was established with the main aim of becoming a “reliable and stable supplier of gas to major industrial gas distributors and consumers in Egypt”. It was co-founded by prominent Egyptian entrepreneurs Dr. Alaa Arafa, Eng. Khaled Abu Bakr and Mohamed Khalifa. As a first step in its strategy, Dolphinus entered into a 64bcm, 10 year gas supply contract with Noble Energy and Delek Drilling for their gas in Israel (see Israel's Leviathan...

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Israel's Leviathan and Tamar gas to be sold into Egypt

Noble Energy and Delek Drilling announced plans in February to export gas to Egypt. The plan is to supply 64bcm over a 10 year period to Egypt’s Dolphinus Holdings – 32bcm from Leviathan and 32bcm from Tamar. Each field is contracted up to 3.5bcm p.a. or c.350mmcfpd and will bring the partners USD15 billion over the life of the supply contract. The contracted price and terms are in line with other supply contracts from these fields which is based...

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