04/23 Weekly oil & gas update

Weir acquires ESCO for USD1.05 billion

The proposed acquisition comes as part of the plan of the UK-based pumps and valves maker to increase its presence in the mining segment, for which ESCO manufactures tools. Weir also announced its plan to sell its flow control unit

Waha pipeline fire in Libya disrupts supply

Libya is experiencing output disruptions of up to 100 Kb/d due to the fire at a crude pipeline that connects to Es Sider oil port and is owned by Libyan Waha. The pipeline will need at least several days to be restored to its usual capacity

Vermilion acquires Spartan Energy for USD1.1 billion

Canadian oil and gas producer Vermilion Energy has agreed to buy Spartan Energy for a total consideration of USD1.1 billion. It is part of Vermilion's plan to continue strengthening its position in the province of Saskatchewan to boost light oil production by 23,000 boe/d in 2018

Enterprise puts the expanded Midland-to-Sealy pipeline in full service

Enterprise Products has expanded the capacity of its 416-mile pipeline running from Midland to Sealy to 540 Kb/d. Given the rapid growth in the Permian, Enterprise plans to boost capacity by an additional 35 Kb/d along the line in May and add a 143-mile pipeline gathering system in the Delaware basin by July

Zambia short-lists five companies for buying majority stake in oil refinery

Five companies—including Britain’s Glencore Energy Ltd. and Sahara Energy Resources Ltd.—have been short-listed by Zambia to buy a majority stake in its only oil refinery. The government hopes to find a strong partner that will help improve the production capacity of the 24-Kb/d Indeni Petroleum Refinery

ExxonMobil revises gas reserves estimate in Papua New Guinea

ExxonMobil has revised its estimate of natural gas reserves at the P’nyang gas field in Papua New Guinea from the initial 70 to 120 bcm. The company said the revision underpins the three-train, 8-mtpa expansion concept for the PNG LNG plant, which will render it well-positioned to serve surging Asian demand

Gazprom studies mega gas processing project in Europe

Russian Gazprom plans to build a huge USD20-billion gas processing plant—able to process up to 45 bcm per year of natural gas—near St. Petersburg. An estimated 14-15 bcm of gas would be intended for the Baltic LNG plant with the rest for exports through the NS2 pipeline

Total buys Direct Energie for EUR1.4 billion

The French IOC will be acquiring three quarters of Direct Energie for a total of EUR1.4 billion. Total will gain access to the French utility company’s 2.6 million natural gas and electricity customers and will be the third largest utility in the country following EDF and Engie

UK power generation runs coal-free for 55 hours

Power generation in the UK was running without any coal generation for 55 consecutive hours between the 16th and 19th of April, breaking a previous record of 40 hours. This marks another step closer to the UK’s goal of completely phasing out coal by 2025

Indian solar and wind capacity additions exceed those of coal in 2017

During 2017, India added 12.8 GW of solar and wind power, representing 66% of total capacity additions. In contrast, coal added 4 GW to the mix, representing 21% of total additions

Porsche announces 500 new fast chargers in the US by the end of 2019

In a move supporting the release of its electric car line, the German automaker announced that it plans to install 500 new fast-charging stations in dealerships and along major US highways by the end of 2019

Average weekly oil & gas prices

Brent (USD/bbl): 72.86 (1.59)
WTI (USD/bbl): 67.58 (1.53)
Henry Hub (USD/mmbtu): 2.73 (0.04)
TTF (USD/mmbtu): 7.06 (0.14)

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Recovery continues in the OFS sector, but margins stay under pressure

Oilfield services Q4 2017: Higher oil prices should see the OFS sector recovery continue, although margins remain under pressure.

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