Page 9 - NorthAmOil Week 23 2022
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NorthAmOil                           PROJECTS & COMPANIES                                        NorthAmOil


       Fire at Freeport LNG disrupts




       supplies, causes gas price decline




        TEXAS            US natural gas prices dropped this week while   Close to one-fifth of all shipments of LNG
                         prices in Europe rose following an explosion and  from the US last month went via Freeport LNG,
                         fire on June 8 at the Freeport LNG terminal in  which is one of seven LNG export terminals in the
                         Texas, which is expected to keep the plant closed  country. With more shale gas now routed into US
                         for a minimum of three weeks.        storage, the already strong competition between
                           As a result of the closure supplies for Europe  Asia and Europe for gas is expected to intensify.
                         and Asia will be reduced while more shale gas   The outage comes at the start of summer in
                         will be routed into US storage caverns. US gas  the northern hemisphere, when demand from
                         futures sank 6.4% on June 8, while Dutch futures  power stations traditionally rises owing to
                         climbed 10%.                         increased use of air conditioning.
       Close to one-fifth of all   Prior to the fire at the terminal, located in   It is expected that LNG buyers will now likely
       shipments of LNG from   Quintana about 65 miles (105 km) south of  begin searching for replacement shipments from
       the US last month went   Houston, prices in Europe had fallen to a three-  the spot market, although traders in Asia told
       via Freeport LNG.  month low, partly on expectations for increased  Bloomberg that supply was tightening.
                         supplies from the US.                  Freeport LNG receives roughly 2bn cubic feet
                           The fire was reported to have been brought  (57mn cubic metres) per day of gas, equivalent to
                         under control the same day it broke out, and  about 16% of total US LNG export capacity. The
                         an investigation into the incident has been  facility has the capacity to produce around 15mn
                         launched. A force majeure has been issued to  tonnes per year (tpy) of LNG and supplies gas to
                         buyers with shipments scheduled till at least June  BP and TotalEnergies in Europe, in addition to
                         30, Bloomberg cited traders with knowledge of  Japan’s JERA and Osaka Gas and South Korea’s
                         the matter as saying.                SK E&S.™

                                               ENERGY TRANSITION

       US launches $8bn programme



       for clean hydrogen hubs





        US               THE US Department of Energy (DoE) released a  bringing together stakeholders to drive down the
                         notice of intent (NoI) on June 6 to fund the Bipar-  cost of advanced hydrogen production, trans-
                         tisan Infrastructure Law’s $8bn programme to  port, storage and usage.
                         develop clean hydrogen hubs (H2Hubs) across   The DoE also launched the Hydrogen Shot
                         the country.                         initiative last year, which aims to reduce the cost
                           The H2Hubs will be designed to establish a  of clean hydrogen to $1 per kilogram within a
                         network of hydrogen producers, consumers and  decade. Green hydrogen, which is produced
                         connective infrastructure to accelerate the use of  using renewable energy, is currently estimated
                         clean hydrogen. The fuel is central to the DoE’s  to cost between $3 and $6.55 per kg.
                         strategy for achieving the US’ goal of a 100%   The DoE has stated that if it can achieve
                         clean electrical grid by 2035 and net-zero carbon  Hydrogen Shot’s 80% cost reduction goal, it will
                         emissions by 2050.                   unlock a five-fold increase in demand by increas-
                           The DoE has indicated that cross-office col-  ing clean hydrogen production from renewables,
                         laboration will take place to select locations for  nuclear and thermal conversion.
                         the regional H2Hubs. These efforts will also take   The US is currently producing around 10mn
                         into account factors such as environmental jus-  tonnes per year of hydrogen, while global output
                         tice, consent-based siting, community engage-  totals about 90mn tpy. Much of the current produc-
                         ment, equity and workforce development, the  tion is more carbon-intensive, however, and a shift
                         department said.                     to cleaner forms of hydrogen is now underway.
                           Proposals  that emphasise employment   “Hydrogen energy has the power to slash
                         opportunities and address hydrogen feedstocks,  emissions from multiple carbon-intensive sec-
                         end uses and geographic diversity will be prior-  tors and open a world of economic opportunity
                         itised by the DoE.                   to clean energy businesses and workers across
                           The H2Hubs will also support the DoE’s  the country,” US Secretary of Energy Jennifer
                         ongoing H2@Scale initiative which is focused on  Granholm stated.™

       Week 23   09•June•2022                   www. NEWSBASE .com                                              P9
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