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Producción y mercados energéticos 12/09/19

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Latest Energy News 12 September 2019
 
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EU Court reduces Gazprom access to German OPAL gas pipeline

The European Union General Court has overruled a decision from the European Commission (EC) from October 2016 that allowed for Gazprom to access over 12.8 bcm/year (threshold stated before the 2016 ruling) of the total capacity at the OPAL gas pipeline. The EC decision was deemed in breach of the principle of energy solidarity, according to the General Court. The request for annulment was led by the polish company Polskie Górnictwo Naftowe i Gazownictwo (PGNiG).

Following the August 2017 auction, in which Gazprom won the right to use the free capacity of the OPAL gas pipeline in Germany, the Russian group raised gas transit capacity from 56 mcm/d up to 71.5 mcm/d (+28%), and cut its gas transit through Ukraine, from 161 mcm/d to 148 mcm/d (-8%). In October 2016, the German Federal Network Agency Bundesnetzagentur (BNetzA) and the European Commission (EC) approved lifting the cap on the use by Gazprom of the OPAL facility. Gazprom, which had already access to 50% of the pipeline capacity, was then in a position to deliver more gas to Europe and to bid for an additional 7.7-10.2 bcm in volumes at auction. At least 10% and as much as 20% of the gas pipeline was expected to be made available to other suppliers and if there was no demand, Gazprom would have been allowed to bid for these volumes. PGNIG appealed that decision in December 2016, highlighting the risks of gas supply disruptions or termination, but the European Union Court of Justice (EU Court) rejected the appeal in late July 2017. 

The 35 bcm/year OPAL gas pipeline is the onshore section of the 55 bcm/year Nord Stream-1 gas pipeline which transports natural gas from Vyborg (Russia) to customers in Western Europe via a 1,200 km-long pipeline in the Baltic Sea. The OPAL facility was brought into service in 2011 and connects the town of Lubmin (Germany) with the town of Brandov (Czech Republic), completely avoiding the Polish territory. Nord Stream-1 is also connected to the 20 bcm/year NEL (Norddeutsche Erdgasleitung) pipeline.

 
Policy & Regulatory

Denmark to lift height restriction on wind turbines
Danish Minister of Business affairs amended an executive order banning turbines with a tip height of above 150 metres. The lifting of height restriction will allow municipalities to enable the use of up-to-date turbines, which tend to be bigger and taller. …
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SECI extends dealines of multiple tenders totalling 8.7 GW of solar (India)
The state-owned Solar Energy Corporation of India (SECI) has extended yet again the deadline for bids at multiple renewable tenders in India due to lack of interest from developers. …
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Groningen’s gas output to be halted by mid-2022 (Netherlands)
The Dutch Government intend to stop natural gas production at the Groningen natural gas field by mid-2022. This new deadline is much earlier than the one promised in January 2018, which was to stop production by 2030.
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Energy & Climate Markets

ANP has held its first Permanent Offer bidding round (Brazil)
The Brazilian National Agency of Petroleum, Natural gas and Biofuels (ANP) has held its first Permanent Offer bidding round (Brazil). 33 blocks were awarded in different basins, 3 in the Sergipe-Alagoas (all to ExxonMobil Brasil (50%, operator); Murphy (20%); Enauta Energia SA (30%)), 6 in Parnaíba (Eneva), 19 in Potiguar (15 to Petro-Victory; 2 to Phoenix; one to Ime…
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USGS survey points out 1.5 Tcm of gas hydrate resources in Alaska (US)
According to the U..S. Geological Survey (USGS) latest 3D seismic mapping, the Alaska North Slope contains 1,523 bcm (53,800 bcf) of technically recoverable natural gas hydrate (methane ice) resources stored within gas hydrate formations. The resources are located on a depth range of 200-1,200 m.
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Infrastructure & Investments

Freeport LNG secures US$1bn loan for Train 4 of LNG project (US)
Freeport LNG has secured a US$1bn loan with Westbourne Capital to finance the development of the fourth train at the Freeport LNG liquefaction plant project on Quintana Island (Freeport, Texas, US). This financing, combined with a contemplated bank facility, will cover the full capital requirement for Train 4, which will have a liquefaction capacity of 5 Mt/year…
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