Natural Gas Daily: October 5th, 2020

EU Pledges €1bn for Energy Infrastructure

EU member states have agreed on the European Commission (EC)'s proposal to invest €998mn ($1.2bn) in energy infrastructure projects, the EC said on October 2.

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• The lion's share – €720mn – will finance the construction of a subsea electricity cable between Poland and Lithuania, as part of a project to synchronise the Baltic energy grids with those of the rest of continental Europe.

US, Israel, UAE to Co-operate on Energy

The governments of the US, Israel and the UAE have agreed to co-operate in the energy sector, the US department of energy (DoE) announced on October 1. The pact comes after Israel and the UAE signed a US-brokered peace deal in September, normalising their relationship.

• Israeli-Arab relations have been improving over recent years amid shared concerns about Iran and its efforts to expand Shia influence in the region, its support for Yemen's Houthi rebels and its purported involvement in attacks on Saudi oil infrastructure last year.

Chevron Says Noble Acquisition Complete

US major Chevron said it considers its acquisition of Noble Energy complete, following voting by Noble Energy's shareholders on October 2 approving the company's acquisition.

• The all-stock transaction, first announced in July, will see Noble shareholders receive 0.1191 shares in Chevron for each share in Noble.

• The acquisition ticks some of the same boxes for Chevron that the aborted takeover of Anadarko would have: expanding the super-major’s US shale footprint while also diversifying its international portfolio with new conventional gas assets. Notably, Chevron gains entry into Israel.

Digitisation Adds Value to Offshore: Equinor

The greater use of digitisation at Norway's Johan Sverdrup field has boosted earnings by over NKr 2bn ($216mn), operator Equinor said.

• Among the benefits were better understanding of the subsurface, better start-up of wells, higher stable production and more efficient maintenance. Energy consumption is also lower.

Dutch Gasunie Eyes EU CCS Funding

Dutch gas transmission system operator Gasunie is expecting €102 ($118)mn in European Union funding for its Porthos carbon capture and  storage (CCS) project, it said. Conditional on European parliamentary approval, the money will cover at least a fifth of the €450-€500mn cost, the state entity said.

• Independent UK consultancy Xodus has put a price of $50/mt on the operation, which it said was close to the price the government had in mind. Part of the EU's contribution will be used to construct a pipeline big enough to allow other companies to use the facility.

Denmark Grants NS2 Operating Permit

The Danish Energy Agency (DEA) has granted a permit for the operation of the two-string Nord Stream 2 (NS2) gas pipeline in Danish waters, it said on October 1.

• Work on the 55bn m³/year NS2 between Russian and Germany was halted last December when the US applied sanctions to the project.

• This forced Swiss contractor Allseas to stop laying the pipeline, leaving just 6% of its offshore section incomplete. All the remaining work is in Danish waters.