Energy News June 10 2024

AltaGas and Royal Vopak are investing $980.5 million to build the Ridley Island Energy Export Facility at the port of Prince Rupert, B.C., with operations set to begin in late 2026. The facility will have an initial LPG export capacity of 55,000 barrels per day and 600,000 barrels of storage, leveraging the port’s strategic proximity to Asian markets. The project, which has cleared 95% of its site, includes indigenous support agreements and is negotiating government incentives. A competing LPG export terminal plan by Trigon Pacific Terminals is currently in litigation after being rejected by the port authority.

Former BP chief John Browne supports Labour’s pledge to stop new North Sea oil and gas licences to show commitment to net zero emissions. Labour aims to end new explorations, create offshore skills passports, and fund green energy projects with an increased windfall tax on North Sea profits. The Conservative party opposes this, advocating continued licensing rounds, while companies like Jersey Oil & Gas are already feeling the impact of political uncertainty on their projects.

The US solar industry had a strong start in 2024 with record installations in the first quarter, but overall growth for the year is expected to be flat due to mixed trends across segments. The residential solar market will decline, primarily due to policy changes in California, while commercial solar will see moderate growth. Utility-scale solar growth will remain flat due to various constraints, and community solar will experience slowed growth. Despite these challenges, the industry is projected to add over 250 GWdc of installed capacity from 2024 to 2029, maintaining a steady, albeit slower, growth trajectory.

The U.S. Strategic Petroleum Reserve (SPR) has enabled the government to sell oil at high prices and repurchase it at lower prices, demonstrating fiscal prudence and fulfilling its role of mitigating supply disruptions. Recent declines in crude prices followed OPEC+ meetings, where production increases were announced but could be adjusted based on market conditions. Economic uncertainties, including mixed signals from the U.S. and China’s economies and ongoing geopolitical tensions, contribute to the fluctuating oil market. The cautious approach of OPEC+ and the global economic outlook will continue to influence oil prices.

BP Exploration & Production awarded a contract to Seatrium for early engineering work on a new floating production unit (FPU) for the Kaskida project in the U.S. Gulf of Mexico. The project, in the concept selection phase, involves a four-column semi-submersible hull supporting a topside module in approximately 6,000 feet of water. The LOI with Seatrium sets the stage for a more extensive engineering, procurement, construction, and commissioning (EPC) contract, pending BP’s final investment decision. This collaboration enhances Seatrium’s portfolio and reinforces BP’s deepwater development strategy in the Gulf of Mexico.

The $11 billion Golden Pass LNG project by ExxonMobil and QatarEnergy has been delayed by at least six months due to the bankruptcy and exit of lead contractor Zachry Holdings, causing significant financial and operational setbacks. Originally expected to begin operations this year, the first processing unit is now projected to start by June 2025, with full capacity by March 2026. ExxonMobil, holding a 30% stake, is focused on mitigating delays and meeting revised targets.

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