oil-gas
Apr 21, 2025
Pipeline Gas Journal
(P&GJ) — Valero Energy Corp. said it plans to shut down or significantly restructure its refinery in Benicia, California, by the end of April 2026, citing long-term strategic considerations and rising regulatory costs in the state.
In a filing with the California Energy Commission, Valero said the move is part of a broader evaluation of its operations in California, which also includes its Wilmington refinery near Los Angeles. The company emphasized that no final decision has been made but noted it continues to assess alternatives.
Valero's Benicia refinery, located northeast of San Francisco Bay, processes about 145,000 barrels of crude oil per day and is one of the largest in Northern California.
RELATED: Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
“We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period,” said Lane Riggs, Valero’s chairman, CEO, and president.
The company also recorded a $1.1 billion pre-tax impairment charge related to both its Benicia and Wilmington facilities. This includes $337 million in expected asset retirement obligations. The charge will be excluded from first-quarter 2025 adjusted earnings.
California’s aggressive clean energy targets, including a ban on new gasoline-powered car sales by 2035 and stricter refinery regulations, have increased operational pressure on refiners. Since 2008, six refineries in the state have shut down, two of which have been converted to renewable diesel production.
Valero joins a growing list of refiners reconsidering their long-term presence in California. Phillips 66 announced plans in October to close its Los Angeles-area refinery within a year.
Mary Holcomb is the Digital Editor & Operations Manager at Gulf Energy Information, overseeing the Pipeline & Gas Journal, World Oil, and Underground Infrastructure brands. With over 5 years of experience, she drives digital content strategy and operations for these industry-leading publications.
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Pipeline Gas Journal
Vaquero Midstream To Build 70-Mile Pipeline, Expand Gas Processing Near Waha Hub(P&GJ) — Vaquero Midstream announced plans to significantly expand its natural gas gathering and processing infrastructure in the Southern Delaware Basin with a new 70-mile high-pressure pipeline and a 200 MMcf/d cryogenic processing plant.
The Dallas-based company said the 24-inch pipeline will loop its existing gathering system, running from its processing complex near the Waha Hub in Pecos County, Texas, to its existing infrastructure in Loving County. The expansion will increase gathering capacity from 400 MMcf/d to approximately 800 MMcf/d and extend Vaquero’s reach into Ward, Winkler and Loving counties.
RELATED: Vaquero Midstream Secures $400 Million for Delaware Basin Expansion Projects
“Vaquero is dedicated to maintaining its position as one of the most reliable midstream operators in the Delaware Basin,” said Harrison Holmes, CEO of Vaquero Midstream. “This expansion of our gathering system will be key in providing direct access on Vaquero’s system from northern Reeves and Loving Counties to our processing complex near Waha. Our continued goal is to offer producers a unified gathering platform, supported by downstream market connectivity and reliable power infrastructure.”
Project Highlights:
Gathering System Expansion
Cryogenic Processing Plant
Both projects are backed by the company’s $400 million credit facility, led by BOK Financial.oil-gas
29 April 2025
Pipeline Gas Journal
Spain’S 1,615-Mile Hydrogen Network Advances Ahead Of Schedule, Enagas Says(Reuters) — Plans to build a 2,600 km (1,615 mile) hydrogen network in Spain are advancing ahead of schedule and the infrastructure is on track to start operations in 2030, the chief of Spanish gas grid operator Enagas said on Friday.
The network will be part of the planned trans-European H2Med corridor aimed at connecting the Iberian region with northwest Europe.
The company plans to take a final investment decision in 2027 and start construction the following year, CEO Arturo Gonzalo said at an event to launch a public consultation process related to the project.
The Spanish network will include new pipelines as well as some repurposed gas assets, he said, for an overall investment of some 2.6 billion euros ($2.95 billion).
"The project is starting to become a reality, it is progressing at a very good pace, even faster than expected," he said.
"Today we are setting in motion a key milestone to make a hydrogen infrastructure a reality in Spain."
Enagas is among the staunchest supporters of a green hydrogen industry, which uses renewable energy for its production, and still faces high costs, heavily depends on subsidies and is struggling to find buyers for its production.
With Spanish gas demand falling, the company is diversifying into managing a network of hydrogen infrastructure. It is also targeting ammonia and CO2 capture. To fund its plans, it has sold assets, reduced dividends and cut debt.
The plans are in line with Spain's ambitious green agenda. Thanks to abundant solar and wind power, the country is vying to be a European leader in green hydrogen. It set a 2030 target of 12 gigawatts for electrolyzers used to make green hydrogen.
($1 = 0.8811 euros)oil-gas
28 April 2025
Arabian Gulf Business Insight
Oman To Build 400Km Hydrogen Pipeline NetworkOman’s natural gas network operator OQ Gas Networks (OQGN) is planning to build a dedicated hydrogen pipeline by 2030, in line with a strategy to develop the sultanate’s renewables sector.
The funding approval for the 300-400 kilometre project is expected by 2027, Oman Daily Observer reported, citing the majority state-owned company’s 2024 annual report.
OQGN will follow a phased approach, starting with regional pipelines which can expand into a nationwide network.
“By 2030, the company expects 300-400km of hydrogen pipelines to be built, with the final investment decision expected by 2027,” the company said in the annual report.
The pipeline will support eight consortiums currently developing green hydrogen projects in Al Wusta and Dhofar governorates.
OQGN is collaborating with Oman’s state-run hydrogen company Hydrom on the technical aspects of the pipeline system.
The company also conducted a study last year to evaluate the complexities of developing hydrogen infrastructure and its commercialisation.
Additionally, OQGN is planning a carbon dioxide (CO₂) transport network to link emission sources with storage and utilisation sites.
Some CO₂ will be stored underground for carbon capture and storage (CCS) projects, while other volumes will be used as feedstock in industries such as fertilisers, desalination, and enhanced oil recovery in upstream oil and gas operations, OQGN said in the annual report.
Oman has announced a number of hydrogen-related projects this year.
The HyDuqm green hydrogen project in Oman, led by a consortium of France’s Engie and South Korea’s Posco, said in March it expects to attract $7 billion to $8 billion in investment to reach full capacity.
Earlier this month, the Gulf state also signed an official agreement to develop a liquefied hydrogen corridor for exports to Europe. The idea was first announced during Cop28 in Dubai in 2023.
The hydrogen rainbow
The hydrogen rainbow
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28 April 2025
Arabian Gulf Business Insight
Saudi Crude Oil Exports Rise To 6.5M Barrels Per DaySaudi Arabia’s crude oil exports in February rose to 6.55 million barrels per day (bpd) from 6.07 million bpd in January, official data showed on Tuesday.
The world’s largest oil exporter’s crude output for February was at 8.95 million bpd, up from 8.92 million bpd in January.
Saudi refineries’ crude throughput was at 2.62 million bpd in February, up 0.16 million bpd from January’s 2.46 million bpd, the data showed.
Direct crude burning increased by 8,000 bpd to 283,000 bpd in February, having fallen in January by 4,000 bpd from December to 275,000 bpd.
Saudi Arabia and other members of Opec provide monthly export figures to the Joint Organisations Data Initiative, which publishes them on its website.
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23 April 2025
Energy Capital Power
Gulf Energy To Acquire Tullow Oil’S Kenyan Portfolio For $120MEnergy development firm Gulf Energy has signed a Heads of Agreement with independent energy company Tullow Oil for the acquisition of its Kenyan subsidiary, Tullow Kenya. The $120 million deal covers Tullow’s entire asset base in Kenya and features a back-in right clause allowing Tullow Oil to acquire a 30% participation in future development phases at no cost.
Under the terms of the agreement, Gulf Energy will pay $40 million upon completion of the deal and an additional $40 million following the approval of the Field Development Plan or by June 30, 2026. The final $40 million installation is payable over five years from Q3 2028. A Sale and Purchase Agreement is targeted for the coming months, with receipt of first payment expected in 2025.
“I am confident that the proceeds from this transaction, coupled with the $300 million from the disposal of our assets in Gabon, position the business strongly for a successful refinancing. We look forward to working with Gulf Energy, who have the requisite financing to complete the transaction and are a strong and credible counterparty, and by doing so, unlock material value for the people of Kenya,” said Richard Miller, CFO and Interim CEO, Tullow Oil.oil-gas
21 April 2025
Pipeline Gas Journal
Spain Approves $455 Million In Aid To Boost Renewable Hydrogen Production(P&GJ) — The European Commission has approved a €400 million (approximately $455 million) Spanish state aid program to support renewable hydrogen production through the European Hydrogen Bank’s “Auctions-as-a-Service” tool, part of the EU's broader push for decarbonization and energy independence.
The scheme will fund the construction of up to 345 megawatts of electrolyzer capacity and enable the production of as much as 221,000 tonnes of renewable hydrogen in Spain. Officials estimate this could prevent up to one million tonnes of carbon dioxide emissions.
The aid, to be awarded through a competitive bidding process, will be provided as a direct grant per kilogram of renewable hydrogen produced and will last up to 10 years. Projects must comply with EU renewable fuel standards, including criteria for emissions reductions and renewable energy sourcing.
The Commission cited improved environmental outcomes, minimal market distortion, and strategic alignment with the European Green Deal as reasons for the program's approval. The aid will support Spain’s target of installing 12 gigawatts of electrolyzer capacity by 2030 and contribute toward broader EU hydrogen and energy transition goals.
Spain's program follows similar national initiatives by Germany, Austria, and Lithuania and reflects growing interest in harmonizing national and EU funding through the Hydrogen Bank’s auction framework.oil-gas
21 April 2025
Gas Processing and LNG
Ukraine'S Naftogaz Says It Seeks €1 B To Purchase More Than 2 Bm3 Of GasUkraine's state oil and gas firm Naftogaz is in talks with the government and international financial institutions to raise €1 B to purchase over > 2 Bm3 of gas for the 2025–2026 heating season, the company said on Monday.
It said in a statement that €430 MM from the EBRD and Norway would be used to purchase an additional 1 Bm3 of gas and another 100 MMm3 of LNG would come from Poland's Orlen.
Ukraine has been forced to ramp up gas withdrawals from storage and increase imports this winter and spring after Russian missile attacks damaged production facilities in the east of the country.
"Since the beginning of the year, 1.5 Bm3 of gas has been contracted: 800 MMm3 were urgently imported at the beginning of the year, and 400 MMm3 will be delivered to Ukraine in preparation for the next winter," Naftogaz CEO Roman Chumak said in a statement.
He said that a total of 300 MMm3 of LNG would be received from Poland's Orlen.
Industry sources said earlier this month that Orlen aims to sell 10 cargoes of LNG to Ukraine this year as Kyiv seeks to fill gas storage sites ahead of winter.
Ukraine has already received 2 cargoes with 200 MMm3 of LNG.
The former head of the Ukrainian gas transit operator, Serhiy Makogon, said on Sunday that the country needed to import up to 6.3 Bm3 of gas for the 2025–2026 winter season as reserves have fallen to a record low due to war-related damage to some facilities.
Makogon noted that Naftogaz had announced the required volume of imports at a lower level of 4.6 Bm3.
Production, storage. Naftogaz, the major Ukrainian gas producer, said it had managed to increase gas production by almost 10% in 2024 to 14.6 Bm3, the highest level since 2017 despite constant Russian missile and drone attacks on its facilities.
"The most devastating attack was in February 2025, which caused significant damage to state gas production, with losses of almost 50% of the volume," Naftogaz said.
The company produced 13.3 Bm3 of gas in 2023.
Naftogaz also said its underground storage facilities were attacked this January and "if there are new strikes, the equipment for repairs is on its way."
Ukrainian underground gas storage facilities are the largest in Europe and the third largest in the world and can store around 30 Bm3 of gas.oil-gas
21 April 2025
Pipeline Gas Journal
$182 Million Gas Pipeline Replacement Project Kicks Off In Southeast Michigan(P&GJ) — Consumers Energy has launched construction on its Four Cities Metro Pipeline project, a $182 million upgrade to ensure continued natural gas reliability for customers across Oakland and Macomb counties.
The project will replace aging infrastructure serving the cities of Royal Oak, Clawson, Madison Heights, and Warren, with eight miles of new 24-inch pipeline expected to be installed by 2029. Construction is now underway at four intersections in the metro Detroit region.
“Replacing and modernizing this large-scale pipeline means people in metro Detroit will continue to have safe and reliable service,” said Holly Bowers, Consumers Energy’s vice president of natural gas engineering and supply. “This project is a critical part of our work to deliver natural gas around the clock 24/7/365, today and in the future.”
The Four Cities Metro Pipeline replaces segments of a system originally built in the 1950s. Consumers Energy has coordinated with local governments to minimize disruptions and adjust pipeline routing where needed. The project is expected to create about 100 construction jobs annually.
“We serve over 750,000 homes and businesses in Oakland and Macomb counties, and we’re committed to providing them with natural gas that’s safe, affordable and reliable,” said Chris Fultz, Consumers Energy’s vice president of natural gas operations. “We appreciate the patience of our customers as we do this important work and promise to work with communities to address any questions or concerns.”
Consumers Energy provides natural gas and electricity to 6.8 million Michigan residents across 68 Lower Peninsula counties.oil-gas
19 April 2025
Pipeline Gas Journal
Intensity Launches Open Season For 208-Mile Bakken Gas Pipeline Expansion(P&GJ) — Intensity Infrastructure Partners LLC has launched an open season for the Phase II Extension of its proposed Intensity Pipeline project, following positive feedback from stakeholders during its initial open season earlier this year.
The extension includes construction of 208 miles of 30-inch natural gas transmission pipeline, mainline compression, and interconnection facilities to expand the pipeline’s reach across eastern North Dakota. It will connect with the planned Phase I pipeline in southern McLean County and extend to Casselton, North Dakota. The expected in-service date is January 1, 2030.
When complete, Phases I and II will make up a 344-mile system of 36-inch and 30-inch pipe with an initial capacity of approximately 1.1 billion cubic feet per day (Bcf/d), expandable to 1.5 Bcf/d with added compression. Final project design will be shaped by customer demand during this second open season.
Intensity said the decision to launch the second open season, which will run from April 17 through May 23, 2025, was driven by “significant interest and support from community leaders, government agencies and potential customers.”
During the open season, interested parties can submit a Service Interest Form specifying their desired transport capacity, contract term, rate, and preferred receipt and delivery points.
Customers can contact Matthew Griffin at mgriffin@intensityinfra.com for bidding details, while other stakeholders are invited to reach out to Mike Higgins at mhiggins@intensityinfra.com.oil-gas
18 April 2025
Arabian Gulf Business Insight
Saudi Arabia And Uae To Cut Oil Output In Opec’S Latest PlanOpec has received updated plans for seven countries including Saudi Arabia and the UAE to make further oil output cuts to compensate for pumping above agreed quotas, the group said on Wednesday.
Opec+, which includes Opec plus Russia and other allies, has implemented a series of output cuts since late 2022. Its compensation plan is designed to ensure that members who do not make the cuts in full implement further reductions.
The latest plan requires seven nations to cut output by a further 369,000 barrels per day (bpd) in monthly steps between now and June 2026, compared with an earlier plan running from March until next June, according to Reuters calculations.
Under the latest plan, monthly cuts will range from 196,000 bpd to 520,000 bpd from this month until June 2026, up from between 189,000 bpd and 435,000 bpd previously.
Should the latest cuts be made in full, the compensation plan would to a large extent offset a planned 411,000 bpd output increase being made by other members of Opec+ in May, providing additional support for the oil market.
The seven members making the cuts are Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan and Oman. Algeria has no required cut.
Opec+ has repeatedly revised the plan after countries did not make the cuts as pledged.
Iraq, the group’s largest overproducer, plans to step up efforts to deliver on its compensation cuts. A source said its crude allocations to customers for May cargoes are much lower.
“We need more reduction to meet the compensation plan,” the source said.
Iraq needs to compensate for a total of 1.93 million bpd of overproduction by June 2026. Kazakhstan needs to make the second-largest cut of 1.3 million bpd in the same timeframe.
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17 April 2025Arabian Gulf Business Insight
Turkey’S Largest Refiner Buys Russian Oil After Price DropTurkey’s largest oil refiner Tupras has returned to buying Russian Urals crude cargoes, after it stopped doing so earlier this year due to stronger US sanctions on Moscow, according to three trading sources and shipping data.
Tupras did not immediately reply to a Reuters request for comment.
The three sources said Tupras resumed its purchases after prices for Urals crude fell to its lowest levels since 2023, earlier this month, dropping comfortably below a G7 price cap level of $60 a barrel.
The price cap imposed by the Group of Seven countries, the European Union and Australia bans the use of Western maritime services such as insurance, flagging and transportation when tankers carry Russian oil priced at or above $60 a barrel.
Since October the US treasury department has imposed sanctions on multiple tankers suspected of breaching the price cap.
Tupras became one of the biggest importers of Russian crude after Moscow’s invasion of Ukraine in 2022, with Russian oil representing 65 percent of the country’s total oil imports in January-November 2024, according to data from Turkey’s energy regulator.
The company halted purchases of Russian crude in February because of mounting concerns around US sanctions following the extensive package announced on January 10.
Tupras will receive at least two cargoes of Urals for April loading, trading sources with knowledge of the matter said.
One of the cargoes is already on the water. The Nissos Christiana loaded around 730,000 barrels of Russian Urals crude from the Baltic port of Ust-Luga on April 3, data from Kpler showed.
It is due for delivery to Izmit on April 21, where Tupras operates a 225,800-barrel-per-day capacity oil refinery.
It was not immediately clear if any other vessel had been fixed for Tupras’s additional cargo purchase.
Tupras is the largest refiner in Turkey with two refineries at Izmit and Izmir, which have a combined crude processing capacity of 467,300 bpd, according to LSEG data.
When it halted Russian purchases, Tupras turned to alternative crude grades, including making its first purchase of Brazilian oil last month.
Other sources of Tupras’s March-April crude imports include Guyana, Nigeria, Libya and Norway, according to Kpler data.
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17 April 2025World Oil
Liberty Energy Sees U.S. Oil Activity Holding Firm With Prices Above $60(Bloomberg) – Liberty Energy Inc., one of the biggest U.S. fracing companies, expects most producers to stick with their production plans as long as crude prices can hang on near current levels.
“If oil stayed in the low $60s, well, that’s not an exciting environment for us by any stretch of the imagination,” Liberty Chief Executive Officer Ron Gusek said during a call with analysts Thursday. “At most we probably feel modest ripples in activity levels.”
If US oil futures dip into the $50s, however, companies are apt to start dropping drilling rigs, Gusek said. But it was premature, he said, to forecast how much production would slow.
West Texas Intermediate rose 3% Thursday to $64.54 a barrel.
Liberty, formerly run by U.S. Energy Secretary Chris Wright, is the first large oil-service company to report earnings since crude prices began plunging in the wake of U.S. President Donald Trump’s trade war and OPEC’s decision to raise a planned production increase later this year. The rout has hammered oil companies’ share prices and threatened to undermine drillers’ plans to modestly increase U.S. production this year.
Denver-based Liberty has been among the hardest-hit companies, with its shares down about 20% since Trump announced the tariffs earlier this month. The stock surged as much as 13% Thursday after the company reported higher-than-expected first-quarter sales.
The company’s crews are currently working to hold production flat, Gusek said. Despite the recent volatility, he doesn’t expect oil and gas companies to make any sudden changes to their drilling plans.
“It’s unlikely that we’re going to have any of our customers remove a pad in the next month or two,” Gusek said. “It’s my expectation that to the extent we do see some changes, that’s going to be back half of the year.”oil-gas
17 April 2025Energy Capital Power
Nigeria’S Walcot Group Secures 3 Oil Blocks In AngolaNigerian conglomerate Walcot Group has signed a production sharing contract with Angola’s national concessionaire the National Agency for Petroleum, Gas and Biofuels (ANPG) for three onshore oil blocks.
The agreement was formalized on April 7, granting Walcot full operatorship of Blocks CON 3 and CON 7 in the Lower Congo Basin. The blocks hold a combined prospective resource base of over 2 billion barrels of oil.
In addition, the company acquired a 10% stake in Block KON 13, located in the Kwanza Onshore Basin. The Block is operated by Nigerian oil and gas company Oando Energy Resources.
In January 2025, Walcot Group submitted nine proposals for five blocks in the Kwanza Onshore Basin, including KON 1, KON 3, KON 7, KON 10 and KON 14. The selection was based on evaluations of financial and technical capacity, as well as suitability.oil-gas
17 April 2025Energy Capital Power
Drc Advances Oil Rights For SonahydrocThe Democratic Republic of the Congo’s (DRC) Council of Ministers has approved a draft decree that grants state-owned oil company SONAHYDROC the rights to Blocks 1 and 2 in the Albertine Graben.
The decree was introduced on April 11 by Hydrocarbons Minister Aimé Sakombi Molendo during the Council’s 39th meeting. It allows for the direct allocation of the two blocks to SONAHYDROC under a service contract.
Located in eastern DRC, the Albertine Graben is seen as a high-potential zone for oil exploration. By awarding these blocks directly to SONAHYDROC, the government aims to fast-track exploration and production while strengthening national participation in the development of strategic resources.
The decree sets out the legal and fiscal terms for this allocation, ensuring it adheres to the existing regulatory framework. It also reflects the government’s broader strategy of leveraging state-owned enterprises to drive resource development.oil-gas
17 April 2025Pipeline Gas Journal
Cosan’S Edge Imports Argentine Gas To Brazil Using Bolivian Pipeline(Reuters) — Edge, a firm under Brazilian conglomerate Cosan, has imported Argentine natural gas into Brazil through Bolivia for the first time, said the firm on Wednesday.
The operation took place in partnership with Argentina's Tecpetrol, which produces 25 million cubic meters of gas per day in the country. Neither firm disclosed the volumes involved.
The operation follows the first import of its kind by Brazil, also using Bolivian infrastructure. Earlier this month, TotalEnergies exported gas from Argentina's Vaca Muerta shale formation to Brazil's Matrix Energia.
Both operations took advantage of existing gas pipeline infrastructure between the three countries, raising hopes that Brazil could start to receive increasing volumes from Argentina as the country develops Vaca Muerta.
"There is a huge opportunity, and transport capacity expansions are underway - and being planned - that will allow us to supply all our neighboring countries competitively and safely," Tecpetrol's CEO Ricardo Markous said in a statement, citing Vaca Muerta's potential.
The gas brought from Argentina will form part of Edge's supply portfolio, which operates in gas trading and also with infrastructure and logistics projects in the segment.oil-gas
17 April 2025Pipeline Gas Journal
Kinder Morgan Holds Profit Outlook As Natural Gas Demand Climbs(Reuters) — U.S. pipeline and terminal operator Kinder Morgan left its annual profit forecast unchanged on Wednesday, as it continued to bank on demand increase for natural gas even as President Donald Trump's sweeping tariffs sparked uncertainty across the energy industry.
While Kinder Morgan does not expect tariffs to have a significant impact on project economics, it said the uncertainty sparked by them, along with commodity prices, caused the company to be "a little bit more conservative" in communicating its annual outlook.
It expects to post an adjusted profit of $1.27 per share in 2025.
The energy sector is bracing the impact of Trump's trade policy — which includes tariffs on steel imports — as well as an escalating trade war with China and falling crude prices.
"We began efforts to mitigate the potential impact early in the quarter by preordering critical project components, negotiating caps on cost increases, and securing domestic steel and mill capacity for our larger projects, which total two-thirds of our project backlog," said CEO Kim Dang.
The impact of tariffs is expected to be roughly 1% of the total project costs, she added.
Any loss in demand for U.S. LNG in the Chinese market would be more than offset by increased imports by the European Union and Asia, the company said on a conference call.
The company, which moves roughly 40% of total U.S. natural gas output, also said it continues to have a bullish outlook for natgas demand, banking on LNG export facilities and data centers.
The Houston, Texas-based firm posted an adjusted profit of 34 cents per share in the first quarter, narrowly missing estimates of 35 cents per share, according to data compiled by LSEG. This was led by weaker earnings at its products pipelines segment and an 18.2% rise in total operating costs.oil-gas
17 April 2025Pipeline Gas Journal
Santos Eyes Early Start For Alaska Oil Project As Revenue Slips(Reuters) — Australian oil and gas producer Santos said on Thursday it could potentially bring forward the startup for its Pikka phase 1 in Alaska, while posting a 7% fall in first-quarter sales revenue due to lower crude sales volumes and realized prices for its LNG products.
Shares of the firm rose as much as 2.7% to A$5.640 by 0106 GMT, matching a 2.7% jump in the broader energy sub-index.
Analysts at Citi attributed the positive market reaction to the potential early output from Pikka, one of the largest oil prospects in Alaska. The project's first production is scheduled for mid-2026.
But Santos said a 120-mile pipeline was now substantially complete, creating "the opportunity for an early startup, subject to weather and logistics, which will become clearer in the second quarter."
The Pikka project is set to be a key asset for Santos as U.S. President Donald Trump charts plans to boost domestic energy production.
Global LNG prices have tumbled since China's first 15% retaliatory levy shut off U.S. imports in February, triggering a cascade of cargo re-routing.
The average realized price for Santos' liquefied natural gas plunged to $11.57 per million British thermal units (MMBtu), down from last year's $12.68 per MMBtu.
Sales volumes of crude oil for the quarter came in at 1.3 million barrels, down from 1.5 million barrels a year ago.
The company attributed the dip in sales volumes to no crude oil being lifted in the quarter from its Pyrenees project off Western Australia, which is operated by co-owner Woodside Energy, along with lower third-party purchases.
The country's second-largest independent gas producer said sales revenue for the three months ended March 31 came in at $1.29 billion, missing a Visible Alpha consensus estimate of $1.32 billion. It reported $1.40 billion in sales revenue a year ago.oil-gas
17 April 2025Pipeline Gas Journal
Neuventus Gets Green Light For Gas, Liquids Storage At Texas Salt Caverns(P&GJ) — NeuVentus, LLC has received final approval from the Railroad Commission of Texas to develop 12 salt caverns at its Texas Reliability Underground (TRU) Hub in Liberty County for storage of natural gas, hydrogen, NGLs, and other products.
Located in Southeast Texas, TRU Hub sits atop the Moss Bluff salt dome and is positioned near growing demand centers, including LNG, power, data centers, industrial, and petrochemical markets.
The approved development includes eight gas caverns authorized under Texas Statewide Rule 97 and four liquids caverns under Rule 95. Once fully built, the 12 caverns could hold up to 96 Bcf of natural gas, 100,000 metric tons of hydrogen, or 128 million barrels of NGLs—or a combination thereof.
The project’s first phase will include two natural gas caverns with a total of 20 Bcf in working capacity and a daily injection rate of 2.5 Bcf per cavern. The initial buildout will also feature a large-diameter natural gas pipeline header with up to 12 potential interconnections to major intrastate and interstate pipelines.
“We are facing a defining moment in the North American energy system and particularly in natural gas infrastructure,” said Sam Porter, CEO of NeuVentus. “TRU Hub's prime location and excellent interconnectivity in the heart of the Gulf Coast, combined with the inherent flexibility of high-turn salt cavern storage, position TRU Hub exceptionally well to meet the moment and ensure that LNG, power, datacenter, industrial and petrochemical demand growth does not come at the expense of reliability.”oil-gas
17 April 2025Gas Processing and LNG
Kinder Morgan Maintains Annual Profit Forecast On Soaring Natgas DemandU.S. pipeline and terminal operator Kinder Morgan left its annual profit forecast unchanged on Wednesday, as it continued to bank on demand increase for natural gas even as President Donald Trump's sweeping tariffs sparked uncertainty across the energy industry.
While Kinder Morgan does not expect tariffs to have a significant impact on project economics, it said the uncertainty sparked by them, along with commodity prices, caused the company to be "a little bit more conservative" in communicating its annual outlook.
It expects to post an adjusted profit of $1.27 per share in 2025.
The energy sector is bracing the impact of Trump's trade policy — which includes tariffs on steel imports — as well as an escalating trade war with China and falling crude prices.
"We began efforts to mitigate the potential impact early in the quarter by preordering critical project components, negotiating caps on cost increases, and securing domestic steel and mill capacity for our larger projects, which total two-thirds of our project backlog," said CEO Kim Dang.
The impact of tariffs is expected to be roughly 1% of the total project costs, she added.
Any loss in demand for U.S. LNG in the Chinese market would be more than offset by increased imports by the European Union and Asia, the company said on a conference call.
The company, which moves roughly 40% of total U.S. natural gas output, also said it continues to have a bullish outlook for natgas demand, banking on LNG export facilities and data centers.
The Houston, Texas-based firm posted an adjusted profit of $0.34 per share in the first quarter, narrowly missing estimates of $0.35 per share, according to data compiled by LSEG. This was led by weaker earnings at its products pipelines segment and an 18.2% rise in total operating costs.oil-gas
17 April 2025Saudi Gulf Projects
Oman Signs World’S First Commercial Scale Liquid Hydrogen Corridor AgreementAs part of the state visit of His Majesty Sultan Haitham bin Tarik of Oman to the Kingdom of the Netherlands, the Sultanate of Oman signed a landmark Joint Development Agreement (JDA) to establish the world’s first commercial-scale liquid hydrogen corridor linking Oman to Europe.
The project will enable the export of RFNBO-compliant liquid hydrogen from the Port of Duqm in Oman to the Port of Amsterdam in the Netherlands and the Port of Duisburg in Germany.
The agreement brings together eleven entities from Oman, the Netherlands, and Germany, including Hydrom, OQ, Port of Duqm Company SAOC, Port of Amsterdam, duisport – Duisburger Hafen AG, Ecolog International, EnBW Energie Baden-Württemberg AG, Tata Steel, Advanced Methanol Amsterdam, Hynetwork Services and other key stakeholders.oil-gas
16 April 2025