Page 9 - NorthAmOil Week 10 2023

NorthAmOil PERFORMANCE NorthAmOil

Global energy sector emissions

reach new high in 2022

GLOBAL GLOBAL energy-related CO2 emissions increased cooling and heating demand in
reached a new record in 2022 of 36.8bn tonnes, extreme weather, nuclear power plants (NPPs)
inching up 0.9% from the previous year’s level, being offline and industrial production curtail-
the International Energy Agency (IEA) reported ment, particularly in China and Europe.
last week. Emissions from natural gas fell by 1.6%,
The rise was chiefly the result of soaring gas reflecting reduced demand because of high
prices, which led more countries to ramp up coal prices. Europe saw a decline of 13.5%, after hav-
use, while oil demand recovered as governments ing to resort to other fuels to cope with the loss
ended lockdown measures. It came despite of Russian gas supply. Natural gas-related emis-
increased deployment of new wind, solar and sions in the Asia-Pacific region fell by 1.8% – an
other low-carbon technologies. unprecedented decline considering it is the fast-
Despite emissions rising to a new height, the est-growing market for gas. Europe secured extra
IEA said the growth had not been as great as it LNG last year that would otherwise have gone to
had anticipated. Emissions fell 5% in 2020, as a Asia, which responded by stepping up coal-fired
result of COVID-19 lockdowns, only to rise once power generation.
more by 6% in 2021. The decline in natural gas emissions was more
“In a year marked by energy price shocks, than offset by a 1.6% increase in coal emissions.
rising inflation and disruptions to traditional Meanwhile, CO2 emissions from oil climbed by
fuel trade flows, global growth in emissions was 2.5%, with half of this rise caused by a recovery
lower than feared, despite gas-to-coal switching in air travel from a pandemic low.
in many countries,” the IEA said. “Increased Chinese emissions dropped by a slight 0.2%
deployment of clean energy technologies such last year, while the EU reduced its emissions
as renewables, electric vehicles [EVs] and heat by 2.5%. US emissions rose by 0.8%. Emissions
pumps helped prevent an additional 550mn from Asia’s emerging market and developing
tonnes in CO2 emissions.” economies, excluding China, grew more than in
There were also other factors such as any other region, by 4.2%.™

PROJECTS & COMPANIES

Chesapeake signs LNG supply

deal with Gunvor

US SHALE gas producer Chesapeake Energy an “important initial step on our path to being
announced on March 6 that it had reached a LNG ready and we look forward to entering into
15-year LNG supply agreement with Swiss-based additional agreements while export capacity
commodity trader Gunvor Group. Under the continues to come online.”
terms of the deal, Chesapeake will supply up to The deal comes following the expiration on
2mn tonnes per year (tpy) of LNG to Gunvor. The February 28 of a deadline for Gunvor’s agree-
purchase price will be indexed to the Japan Korea ment to purchase 3mn tpy of LNG for 10 years
Marker (JKM), the benchmark gas price in Asia. from US developer Tellurian’s proposed Drift-
Chesapeake and Gunvor will now jointly wood LNG facility in Louisiana. Both companies
make a decision on which export terminal have yet to comment on whether the agreement
natural gas will be liquefied at and delivered to has been extended or cancelled.
Gunvor on a free-on-board (FOB) basis. The two Following Russia’s invasion of Ukraine, US
companies are anticipating a start date of 2027. LNG exporters have seen demand soar from
“This agreement reflects the powerful combi- Europe. In order to support its growing LNG
nation of the premium rock, returns and runway business, Gunvor renewed a $1.565bn loan facil-
of our competitively positioned Haynesville nat- ity in January to be structured around its LNG
ural gas assets combined with the strength of our trade flows, including shipping activities.
balance sheet and financial position to securely The company also signed a long-term con-
supply global LNG markets,” Chesapeake’s presi- tract last year to purchase LNG from Energy
dent and CEO, Nick Dell’Osso, said in a statement. Transfer, the developer of the proposed Lake
Dell’Osso added that the agreement serves as Charles LNG terminal in Louisiana.™

Week 10 09•March•2023 www. NEWSBASE .com P9