Page 12 - GLNG Week 10 2022

GLNG EUROPE GLNG

European gas prices hit unprecedented

high amid ongoing Ukrainian conflict

PERFORMANCE THE front-month gas price at the Dutch TTF time being, supplies are actually higher than
hub spiked at close to $4,000 per 1,000 cubic they were in February. Meanwhile, temperatures
metres on March 7, amid the escalating conflict across Europe have dipped lower in recent days,
in Ukraine that has built on top of an existing and Asian demand for LNG has soared, limiting
energy crunch crisis in Europe. how much gas can be sent to European ports.
The April contract at the hub briefly settled The crisis has prompted several EU mem-
at €345 per 1,000 cubic metres at around 08:30 ber states to rethink their reliance on Russian
GMT, equivalent to $3,990 per cubic metres. Its energy, including Germany, which has halted the
average for the day was €227. certification process for Russia’s Nord Stream 2
Pressure has been rapidly building on Euro- pipeline that is required for the project to ever
pean gas prices since Moscow began its military flow gas. Since then, Berlin has announced it
campaign in Ukraine. Prices were already at will devote itself to building two LNG import
record levels in recent months as a result of esca- terminals in north Germany that can serve as a
lating tensions between Russia and the West, as replacement.
well as a sharp rebound in demand following the Italy, another important market for Rus-
easing of coronavirus (COVID-19) restrictions sian gas, has similarly announced plans to
and global supply constraints. reduce its reliance on its main supplier, Gaz-
There are mounting concerns that the conflict prom. Italian officials were in Algeria last
in Ukraine could lead to a disruption in Russian week to discuss bolstering supply from the
gas transit via the country, even though, for the North African country.™

OCEANIA

Australian court dismisses challenges

against Woodside gas projects

PROJECTS & THE Supreme Court of Western Australia has While the CCWA has expressed disappoint-
COMPANIES dismissed two challenges brought against gas ment over the court’s decision, the group has
projects operated by Woodside. also filed a separate challenge against Woodside’s
The challenges had been brought by the planned expansion of Pluto LNG. The Pluto
Conservation Council of Western Australia Train 2 expansion is tied to the company’s final
(CCWA), an environmental group, in a bid investment decision (FID) on the Scarborough
to overturn certain approvals granted in 2019 gas project, taken last year. That challenge was
by the Western Australia Environmental Pro- filed in November 2021 and Woodside said in
tection Authority. The approvals relate to the a filing this week that a hearing date had yet to
Pluto LNG terminal and the Karratha gas be set.
plant. The company is continuing to work on the
The CCWA had challenged the approvals on development of Scarborough and Pluto Train 2
the grounds that they would result in significant and the start-up of the Pluto-KGP interconnec-
additional impacts on the environment, spe- tor in the meantime, it added in the filing.
cifically in the form of additional carbon diox- Woodside’s shares surged to AUD30, their
ide (CO2) emissions. Justice Jeremy Allanson highest level in two years, on news of the court’s
rejected the group’s challenges, saying it had not dismissal of the two challenges. They subse-
established that the EPA’s then-chair had not quently continued to rise over the remainder of
considered the possible impacts before granting the week, replicating a trend seeing across much
the approvals in question. Allanson also refused of the global oil and gas industry as crude prices,
leave for judicial review because the application elevated by the war in Ukraine, have bolstered
had been filed too late. energy stocks.™

P12 www. NEWSBASE .com Week 10 11•March•2022