Member Info for thewackmiester

Morning all,
The latest report from the business post regarding LNG Ireland.

The government cannot legally ban the importation of fracked gas, according to a new policy statement released by the Department of Environment, Climate and Communications.

The policy statement also said a moratorium on the construction of any liquefied natural gas (LNG) import infrastructure would be in place until an energy security review was completed. The review, which will focus on Ireland’s gas resources, was commissioned by former Minster for the Environment Richard Bruton in 2019 and is expected to be completed before the end of this year.

As part of negotiations on the programme for government last year, the Green Party secured a promise to “develop a policy statement” to reflect its position that the government would “not support the importation of fracked gas”.

Fracking is a form of fossil fuel retrieval that involves the injection of high-pressure water and chemicals deep into the ground to release gas and oil from shale rock. It is a controversial practice due to its increased greenhouse gas emissions and its local ecological and health impacts.

The US has become a major exporter of fracked oil and gas in recent years, turning it into LNG so it can be shipped to distant markets, including Europe.

The new policy statement explained that under legal advice from the Attorney General, a full ban on the importation of fracked gas would not be possible due to restrictions within the EU single market.

“In the context of European Union Treaties and the laws governing the internal energy market, it is considered that a legal ban on the importation of fracked gas could not be put in place at this time,” the policy statement said.

“Changes to international rules, such as European energy laws, could facilitate the future implementation of a legal ban or restriction on the importation of fracked gas.”

The policy statement said it would “not be appropriate for the development of any LNG terminals in Ireland to be permitted or proceeded with” while an energy security review was being carried out.

In a press statement, the department said this amounted to a moratorium on the construction of any LNG infrastructure in Ireland.

The policy statement said the energy security review would inform whether it would be appropriate, or not, to develop LNG terminals in Ireland “and, if any such terminals were to be developed, whether they should only be in order to provide a contingency supply in the event of failure of existing natural gas supply infrastructure”.

Eamon Ryan, Minister for the Environment and leader of the Green Party, said his own position was that fracked gas causes great environmental damage both locally where it is extracted and globally.

“Ireland, having banned its exploitation onshore, should not impose these environmental risks on other communities around the globe,” he said.

Continued

Hi all,

I came across this,

National Preventive Action Plan
Gas 2018 – 2022 Ireland

Compiled by the CRU, in which it states has to be every four years which would fit the current timeline on security of supply.

The world has moved on since this was published with the closure of the Kinsale gas field and the gas storage facility to go with it, Moneypoint power station in change of use, Corrib gas field in decline, reduced supply from the North Sea gas fields, an increase of gas usage and an ever reliant demand on the Moffat interconnectors which also supply’s N.I. And the Isle of Man gas, could look to some as a pretty precarious situation considering when this report was released nearly four years ago the conclusion I made was one of “running on borrowed time”
Ireland has made improvements in its renewables but will it be enough to satisfy a good outcome in the forthcoming report.

It contains 64 pages and I would recommend reading.

https://ec.europa.eu/energy/sites/ener/files/documents/npap_ireland_2018_.pdf

AIMHO of course.

GLA
Wacky.

Continued

Brady finished the letter by saying that “in light of the above” a meeting may “no longer be required” but the department could accommodate one if necessary.

The rebuttal from the department will come as a blow to New Fortress Energy, whose chief executive, multi-billionaire Wes Edens, recently said on an analyst call that he expected the Shannon LNG project to be online in the “second half of next year”.

Bodes well for our proposal.

AIMHO of course

GLA
Wacky

Morning all,

Article in the Business post today explaining the reason behind the recent announcement of “No LNG in Ireland until review”

The Department of Environment, Climate and Communication drew attention to the programme for government, which states: ‘As Ireland moves towards carbon neutrality, we do not believe that it makes sense to develop LNG gas import terminals importing fracked gas’.
It would be “inappropriate” for any liquefied natural gas infrastructure to be built in Ireland until an energy review has been carried out, a top official at the Department of the Environment has told the Shannon LNG project.

The news comes as American energy company New Fortress Energy has resubmitted a planning application for its €500 million Shannon LNG import terminal and gas-fired power plant in Ballylongford, Co Kerry, after the former planning application was quashed by the High Court last year.

In documents released under Freedom of Information, New Fortress Energy wrote to the Department of Environment, Climate and Communications (DECC) at the beginning of March, requesting a meeting so that it could present its proposal for a new LNG import terminal, alongside a power plant. The email emphasised that the project was not looking for either EU funding or Irish government funding.

Kevin Brady, principal officer at the DECC, wrote back to New Fortress Energy at the end of March, noting its request for a meeting, and immediately drawing the company’s attention to the programme for government, which states that: “As Ireland moves towards carbon neutrality, we do not believe that it makes sense to develop LNG gas import terminals importing fracked gas.”

The department also drew the company’s attention to another section of the programme for government drawn up by the Green Party, Fine Gael and Fianna Fáil, which stated that: “We do not support the importation of fracked gas and shall develop a policy statement to establish that approach.”

Much of the gas produced and exported from the United States comes from fracked sources. Fracking is a highly controversial method of extracting fossil fuels from shale rock.

“This policy statement is being developed and is expected to be approved by government and published shortly,” Brady said.

Brady said Minister Eamon Ryan was carrying out a review of the security of energy supply of Ireland’s electricity and natural gas systems which would inform a government decision on “whether it would be appropriate, or not, to develop LNG terminals in Ireland” and if any such terminals were to be developed, whether they should “only be in order to provide an emergency backup to existing supply infrastructure”.

“Pending the outcome of the review of the security of energy supply of Ireland’s electricity and natural gas systems, it is the department’s position that it would not be appropriate for the development of any LNG terminals in Ireland to be permitted or proceeded with,” Brady said.

C

Hi MK111

Thanks for highlighting CEPA, just a quick look at their website would suggest this company has been involved with more than just the security of supply issue, which in my reckoning is a follow on to the previous work they have recently completed.

For example.

Advising the Commission for Regulation of Utilities in Ireland on the economics of interconnection and the benefits of future physical interconnection in an environment of high levels of variable generation.

Conducting a study into the impacts of applying equal transmission charging treatment with storage for bidirectional interconnection points for a gas interconnector. (Not equal at the moment 90/10 ratio in favour of the U.K.)

Developing an impact assessment of a proposed new combined cycle gas turbine. (Carbon Capture)

https://www.cepa.co.uk/sectors/energy

AIMHO of course.

GLA
Wacky

Hi GRH,

The island of Ireland, be it Northern or the Republic really are on a dodgy wicket when it comes to security of supply for energy.

I spent the morning reading this article as a follow on from a Nico post regarding eu hydrogen.
It is extremely thorough with contributions from all the major players and well worth reading.

https://www.gasnetworks.ie/home/Hydrogen4EU.pdf

But it did lead me to an article about natural gas expansion to the west of Northern Ireland which to some may sound irrelevant to our projects, however the new 40,000 domestic customers and future industry customers will undoubtedly put more pressure on the gas network as N.I. Receives its gas also through the Moffat inter connector which as you quite rightly stated if that goes down for any reason, it is lights out.
Corrib alone would not be able to cope with demand.

http://www.mutual-energy.com/other-projects/gas-to-the-west/

Important decisions need to be made.

AIMHO of course.

Atb
Wacky

Morning all,

New minister for energy and energy industries Stuart Young has signed off on a three year deal with Yara/ Tringen for the supply of natural gas to the ammonia plants, which is good news on two fronts for our business in Trinidad.
We obviously require co2 to perform eor operations but also this new minister doesn’t seem to hang about, he has resolved a long running dispute between the various industries within a few weeks of taking office.
Could he also speed up deploying CO2 eor expansion and it’s related interests ?

https://newsday.co.tt/2021/05/11/ngc-tringen-yara-sign-gas-deal/

AIMHO of course.

GLA
Wacky

Hi all,

I haven't seen this posted before, granted a tad long , however it proves that LNG imports into Ireland have been priced or considered in the event of various projects going ahead.

It was published in 2019 and was probably with respect to the two onshore LNG terminals which are now not being built ?
The document is the latest published by the CRU and is currently in effect.
Page 56-59 are the most relevant.

Interesting conclusions, especially a 50% discount would be granted in the case of a storage facility.

www.cru.ie/wp-content/uploads/2019/06/CRU19060-Harmonised-Transmission-Tariff-Methodology-for-Gas-Decision-Paper.pdf

AIMHO of course.

GLA
Wacky

Morning all,

Did anyone notice the new appointment of Mr Robert Riley as a new non exec of BPC as in their rns.
Mr Riley has many years experience in the O & G industry notably CEO at one point of BPTT as well as working for other Majors in executive roles.

Their message this morning is of increasing production and generating cashflow.

Interesting that one his current non exec directorships is with the Massy Group as mentioned at the bottom of the rns.

Moves on the Chess Board ?

https://www.lse.co.uk/rns/BPC/proposed-new-board-member-and-saffron-2-progress-7v27mnkvcun8rfq.html

GLA
Wacky

Morning all,
I promised myself a day off, but somethings you just can’t put down, PRD is top of the list in that regard.

I have found an article released by the eu in 2019, quite lengthy titled

“The potential for CCS and CCU in Europe”.

This paragraph literally blows The Irish Greens argument for not using natural gas to produce Hydrogen out of the water, instead they keep pushing for electrolysis generated Hydrogen by offshore wind turbines, which in this eu released document categorically states using this method of Hydrogen production produces 7.5kg more CO2 than natural gas.

Paragraph 3.4 Accelerated decarbonisation through hydrogen from natural gas with CCS

“In the EU, in 2016, average electricity emissions per MWh were 296 kg CO2.29 Production of hydrogen from electricity with such a CO2 intensity would result in an emission rate of 15 kg CO2 per kg of hydrogen30. If the hydrogen was produced from natural gas with average European upstream and midstream CO2 emissions combined with CCS, the emission rate would be 2 kg of CO2 per kg produced hydrogen. CO2 emissions are therefore 7.5 times lower for hydrogen produced from natural gas with CCS. Outlooks from the European Commission’s strategic long-term vision31 and IRENA’s Outlook for Europe32 give a corresponding ratio in the range of 4.6 to 4.9. It can therefore be assumed that emissions from hydrogen production from grid average electricity will be above that from natural gas with CCS well beyond 2030”.

https://ec.europa.eu/info/sites/default/files/iogp_-_report_-_ccs_ccu.pdf

I am all for the decarbonisation of the planet in which we reside and we all look to our “Leaders” for the correct route in decision making but for the greens to promote the “green Hydrogen agenda” when the blue Hydrogen scenario is more environmentally friendly simply to promote their personal or political agenda is morally wrong.

I do hope this information is known and can or will be be used to further our energy proposals for Ireland and safeguard the future of generations to come.

AIMHO of course.

GLA
Wacky

Many thanks for your kind words, Nic, Sefton & GRH, all for the greater good.

Adon30.
You put forward a valid point on wait and see for the results on the drill of MOU1.

I would argue the possible follow up wells in quick succession are because of the following factors.

1. The confidence of the BOD that commercial gas will be found.
2. The time and money spent on forward engineering of the asset for quick monetisation.
3. Rig availability.

My view is that Commercial volumes of gas will be found and we in order to have a commanding position in Morocco will have to move quickly to beat all others.
I notice you used the term "exploratory drill", I would beg to differ.

The mud logs and samples from the GRF1 well drilled by ELF in 1972 are the evidence that thermogenic gas is present in the area and most importantly GRF1 well is an offset well drilled to test the outer extremities of the reservoir's, Elf were prospecting for Oil but when Gas was found the well was logged and abandoned.
Where we are drilling is the sweet spot of the combined stacked reservoir's where if Oil had been found, would have been the location for Elf's follow on or appraisal well.

So we are not really exploring, we are drilling the real deal and that is why this prospect has always been tagged as "Drill ready",
I've posted this before but it is a fantastic read and explains why Paul and the BOD are so confident.

http://www.fastnetoilandgas.com/~/media/Files/F/Fastnet-Oil-and-Gas/financial-and-other-reports/cpr-report-pathfinder.pdf

AIMHO of course.

GLA
Wacky

Nicely played Paul,
A good marker for the market.

GLA
Wacky

Hi all,
This article was posted on the Trinity board,
Well worth a read, more information which may suggest a tie up in some form with Trinity Exploration.

"Strategically, using 3D seismic data could be a gamechanger for Trinity in identifying strategic bolt-on acquisition opportunities offering potential to enhance reserves and production".

https://www.investorschronicle.co.uk/ideas/2021/05/04/profit-from-the-commodity-boom/

AIMHO of course.

GLA
Wacky

Good morning Sefton,
I hope you are well,

I agree our projects are of critical importance.

My cryptic post from some time ago,
Law
Gatekeepers
Construction
Kingdoms
Desert
Empire

That may start to make sense to some now.

GLA
Wacky

Hi findme,
Yes agreed the bpc bod would/are be in comparison to monty pythons dead parrot saga.

Hi Nic,
Venezuela could be looking for a way back to the world stage and as a gesture of goodwill have made moves in that direction, who would be their friends though, the Americans or the Chinese ?, all to play for in this worldwide game of chess.

https://www.google.co.uk/amp/s/www.independent.co.uk/news/world/americas/us-politics/venezuela-gives-us-oilmen-house-arrest-in-gesture-to-biden-venezuela-bill-richardson-joe-biden-donald-trump-maduro-b1840563.html%3famp

AIMHO of course.

GLA
Wacky

Hi all,
Just had a thought, BPC in pretty much deep do do and getting worse if you look at today’s price and order book. (Sell after sell)
Sinopec looking to Trinidad and what better way to get into the market as to acquire a distressed asset such as BPC and gaining valuable information on ccs, co2 eor, reservoir monitoring etc. through the back door.
As they say timing is everything !

Are we potentially looking at a new partner here ?

AIMHO of course.

GLA
Wacky

Morning all,
Busy morning with news arriving on numerous fronts, albeit none from prd but I’m expecting as GRH stated earlier, year end results and updates.

SDX drilling started, good news.

Trinity rns, Having purchased a poor performing block adjacent to current prospects with this snippet of info.

“ With more investment into better understanding of facies and distribution of the reservoir zones across the PS-4 Block, a much more accurate and focused effort on enhanced oil recovery ("EOR") techniques will also be possible, reducing reservoir risk and potentially resulting in a meaningful impact on production and reserves”.

https://www.lse.co.uk/rns/TRIN/acquisition-of-onshore-ps-4-block-fia85l666neqnbg.html

And possibly Sinopec have aspirations with our pilot co2 eor project.
This article although rather lengthy may have some similarities to what we have achieved in Trinidad and what they would like to achieve in China.

“ China’s projects could benefit from improved reservoir selection, new CO2 monitoring tools and operating strategies, expanded front-end investments in CO2 infrastructure such as pipelines and modern surface separation and recycling facilities that will serve to reutilize and store CO2”.

6. Recommendations
CO2 enhanced oil recovery with storage (CCUS) has the potential to play an important role in boosting China’s domestic crude oil production, and at the same time mitigate fossil CO2 emissions. Given the abundance of industrialCO2, utilization can also offset the consumption of waterfor secondary flooding and therefore help reduce brine treatment and costs in China’s arid oil fields. China’s 2019 roadmap for CCUS sets out goals for moving CO2 utilization from the R&D stage forward to the industrial stage. We believe China’s efforts to expand beyond its pilot scale CO2-EOR and storage projects could be further enhanced by infrastructure modernization, accompanied by technological and strategic innovations specific to China’s challenging continental reservoir geology accompanied by supportive regulatory policies and incentives. The following observations and attendant recommendations gleaned from the successes of the U.S. projects may shine a light on some ways to improve results toward realizing large-scale commercial scale CO2 flooding and attendant carbon storage.

https://www.sciencedirect.com/science/article/pii/S1750583620305983

Happy reading.

GLA
Wacky

Morning GRH,
Hope the effects of the jab subside soon,
Atb
Wacky

Hi Auc1,

Yes definitely, we have the luxury of being able to cherry pick the projects which may suit our model due to the current finite amount of CO2 currently available.
I do think we will want to press on with the Innis Trinity field as we have de risked that particular area of Trinidad and we have only recovered oil from one sand of five in the AT4 block and the current targeted sand was thought to be the most difficult to recover from and to pass on the potential recovery of @6.8m barrels of oil may be too much for Heritage to stomach.
Heritage are flush with cash now £1.4B profit on last accounts of which £800m went to the treasury, not a bad turn around in two years since Petrotrin were dismantled.

Heritage may have said to BPC up yr. game or else !!
I know, pure speculation but they do hold all the licenses and as was pointed out earlier the IPSC contract will be due for renewal later on this year.

On a slightly different note, I think we are going to hear Big news on a some sort of venture with Trinity Exploration, whatever it may be, how it will be structured, will we part with some of our Intellectual property as part of the deal ?,
Who Knows, but I do know that Trinity have had six months now to paw over the 2 & 3D seismic released to them via Heritage, which incidentally has always been a closely guarded secret and with the help from UWI, ourselves, and others, should by now know how the reservoir's will react to CO2 sequestration.

Trinity's latest rns was very downbeat, considering with what they have got planned in the near future, my take on it was, nothing to see here, move along.

https://www.lse.co.uk/rns/TRIN/q1-2021-operational-update-0vu1bd4cbqozc6d.html

Rns on the release of the Seismic.
https://www.lse.co.uk/rns/TRIN/acquisition-of-onshore-3d-2d-seismic-data-set-706uvvh3s65ssc9.html

There is something else that maybe coinciding with this, but I'm going to keep that one under wraps for the time being and see how it plays out.

AIMHO of course.

GLA
Wacky

Hi Auc1

This paragraph taken from BPC rns today mentions just that.

Projects undertaken include both wellbore damage clean outs and addition of new oil zones. An additional 10 workover projects are planned for Q2 2021 on the Goudron and Inniss-Trinity fields that will primarily access zones that have previously not been adequately produced through recompletions and additional perforations. Further similar projects will be shortlisted and scheduled for execution throughout the remainder of 2021.

The Company has recently undertaken full-field asset reference plans for each of the operating fields, that has revealed potential unswept or compartmentalised oil that may be recovered through either further workovers or infield drilling, and accordingly plans are being put in place to capture that oil in order to enhance and grow production.

"Unswept" read CO2 injection.
couple of clues.

AIMHO of course.

GLA
Wacky