Page 8 - NorthAmOil Week 38 2022

NorthAmOil POLICY NorthAmOil

US DoE announces further SPR sale

US THE US Department of Energy (DoE) said on Despite this, though, the Biden administra-
September 19 that it would sell up to an addi- tion has extended the timescale of its SPR release
tional 10mn barrels of crude from the country’s programme, which authorised the sale of up to
Strategic Petroleum Reserve (SPR) in November. 180mn barrels from the reserve. The plan, rep-
The announcement comes as US Energy resenting the largest release in the SPR’s history,
Information Administration (EIA) data showed had previously been due to be completed by the
that SPR crude stocks had fallen to 427.2mn end of October. However, the DoE said roughly
barrels – their lowest level since 1984. Stocks 155mn barrels had been sold to date, and that the
have been depleted this year amid a push by latest notice of sale would bring this figure up to
the administration of US President Joe Biden to 165mn barrels.
lower crude and gasoline prices, with the war in The oil for sale under the latest release will
Ukraine engendering concern over oil supplies, come from the Big Hill and West Hackberry
at least initially when it caused crude prices to sites, in Texas and Louisiana respectively, with
spike to multi-year highs. up to 5mn barrels of sweet crude to be sold from
Crude prices are now falling again, with Brent each site.
trading below $90 per barrel by September 19 The DoE continues to monitor market condi-
and West Texas Intermediate (WTI) at around tions in order to assess the need for future sales.
$86 per barrel at the same time. Average gasoline “As we look to the future, I think what you’re
prices have also fallen, reaching about $3.70 per seeing right now is us evaluating the current mar-
gallon ($0.98 per litre) by the start of the week, ket dynamics and making sure that our releases
compared with over $5.00 per gallon ($1.32 per align with the needs,” a senior Biden administra-
litre) in June. tion official told media in a call about the sale.™

PROJECTS & COMPANIES

Pieridae in talks over ensuring feed

gas supplies to proposed LNG plant

EASTERN CANADA’S Pieridae Energy has asked the coun- war in Ukraine, which has prompted European
CANADA try’s federal government to ensure that pipeline countries to urgently seek alternative energy
operator TC Energy receives approval to expand sources to imports of Russian natural gas. This
its gas pipeline network in a timely manner. shakeup of European gas market dynamics came
Pieridae’s CEO, Alfred Sorensen, told Reuters as a boost to Pieridae’s proposed 2.4mn tonne
that its Goldboro LNG project can only go ahead per year (tpy) Goldboro project in Nova Scotia,
if TC is able to expand capacity on its existing whose prospects for being built now look better
pipeline network. than they did before the war.
According to the news service, Pieridae asked Goldboro is one of two LNG export terminals
the federal government at a recent meeting to proposed for Eastern Canada – with Repsol also
help ensure a smooth regulatory approval pro- proposing to convert an existing import facility
cess for any gas pipeline proposal that TC Energy in Saint John, New Brunswick, to exports. How-
may put forward. This comes after Canadian ever, it was suggested earlier this year that there
pipeline operators – including TC Energy – have would only be enough feed gas supplies available
struggled to get pipeline projects off the ground to feed one East Coast export facility given cur-
owing to a combination of regulatory hurdles, rent pipeline capacity. And amid high demand
legal challenges and opposition. for energy, there may not even be enough supply
“We’ve made our pitch and now we just have for one export terminal.
to wait and see. We’ve also been speaking to TC TC Energy did not respond to questions
Energy, and they have to be the guys who decide about any discussions with Pieridae, but told
to go first,” Sorensen said. Reuters in a statement that it has “virtually
The request comes as Canada considers its no spare capacity” in its pipelines owing to
options for supplying LNG to Europe amid the high demand.™

P8 www. NEWSBASE .com Week 38 22•September•2022