An industry-commissioned assessment found the importation of natural gas into New Zealand is technically viable, but one of the companies that ordered the study said Thursday building liquefied natural gas (LNG) infrastructure in the country appears to be “more challenging than anticipated”. The study, commissioned following a rapid fall in domestic gas that prompted a reversal on climate policy, looked at conventional-scale LNG import infrastructure and smaller-scale solutions. The “New Zealand LNG Import Feasibility Assessment” was conducted by the United Kingdom-based Gas Strategies Group Ltd. with support from New Zealand-based Wood Beca Ltd. for about 10 weeks from mid-September 2024. For LNG importation through conventional-size vessels, capital cost estimates to build the needed infrastructure range from NZD 189 million ($113.75 million) to NZD 1 billion. The cost depends on port modifications at a given location, pipeline upgrades and onshore regasification installations. The range is “a significant investment given the uncertainty around how often LNG imports would be needed”, Clarus, one of the companies that commissioned the study, said in a statement online. “The global LNG trade has standardized around large vessels (carrying around 170,000-180,000m3, or 4.5 PJ of gas), with much of the storage and regasification equipment located on permanently moored ships (known as Floating Storage and Regasification Units or FSRUs)”, Clarus, formerly Firstgas Group, said.  The study identified six preferred sites across the North Island. “No single location in New Zealand has the existing combination of sufficient water depth, benign metocean condition and existing gas pipeline capacity to meet demand scenarios”, the first of two findings reports said. “Therefore, all locations will require financial investment to address one or more of these issues. “LNG imports are unlikely to be achieved in less than four years unless the existing permitting and consenting process is fast-tracked and / or some financial risk

Senior officials from three of OPEC’s core producer nations – Saudi Arabia, the United Arab Emirates, and Kuwait – lined up on Wednesday to say that the super-sized addition of supply by the producer club at the weekend was needed by the global market. Oil prices eked out gains this week, a sign that the market has largely shrugged off the larger-than-expected output hike announced on Saturday by the Organization of the Petroleum Exporting Countries and allies. Despite the current tightness, forecasters are pointing out that supply growth is at risk of outpacing demand later in the year. “You can see that even with the increase in several months, we haven’t seen a major buildup in the inventories, which means the market needed those barrels,” Suhail Al Mazrouei, the United Arab Emirates energy minister said on the sidelines of a conference that the group is holding in Vienna. His comments were echoed by officials at the state oil companies of Saudi Arabia and Kuwait. Signs of a tight market include crude oil stockpiles at the key US storage hub of Cushing, Oklahoma that are at their lowest seasonally since 2014, as well as a collapse in America’s diesel inventories. Timespreads point to tight supply-and-demand dynamics in the near term. Bloomberg News hasn’t received accreditation to cover the OPEC seminar, despite multiple requests. No explanation has been given.  Healthy Demand Saudi Aramco, which hiked its key oil prices for customers in Asia a day after the weekend meeting, sees “healthy global oil demand,” despite trade challenges, tariffs and their impact on the global economy, President and CEO Amin Nasser said at the OPEC Seminar in Vienna, according to a video posted on the X platform. In April, OPEC+ announced – to the surprise of the market – the addition of 411,000 barrels a day of production

BP PLC said Wednesday it had signed a deal to divest its convenience, mobility and BP Pulse businesses in the Netherlands to local fuels distributor Catom BV. “The transaction includes around 300 bp-owned or branded retail sites – some with on-site EV charging infrastructure – as well as 15 operational bp pulse EV charging hubs, eight under development and the associated Dutch fleet business”, a joint statement said. BP Pulse is BP’s multinational electric vehicle charging business. The parties did not disclose the price of the transaction, expected to be completed by year-end subject to regulatory approvals. The assets will grow Catom’s retail network to over 400 sites across the Netherlands. Catom sells conventional and renewable fuels and lubricants under the OK brand. “With this acquisition, we’re on our way to becoming the number one brand in our industry in the Netherlands”, commented Catom chief executive Jan Willem Westerhuis. “Catom was ultimately selected as the successful bidder as they presented the best overall offer, including future plans for the business and protection of terms and conditions of employees”, the statement said. Emma Delaney, BP executive vice president for customers and products, said, “We have built a high-quality retail and convenience business in the Netherlands but as we look to focus our downstream as part of a reset bp, we believe a new owner is best placed to take our Dutch business forward”. BP expects to sell $3-4 billion worth of assets this year, including $1.5 billion signed or completed in the first quarter. “Further progress on divestment proceeds will be provided as part of 2Q25 results”, Wednesday’s announcement said. Under a “reset” plan announced February, which involves scaling down renewables investment and cutting costs, BP targets $20 billion in divestment proceeds by 2027, including from solar developer Lightsource BP Renewable Energy Investments

Germany’s Uniper SE said Wednesday it had sold its 18.26 percent interest in AS Latvijas Gaze, which is involved in natural gas trading and sales in the Baltic neighborhood primarily in Latvia, to co-venturer Energy Investments SIA. “The sale of this non-strategic minority equity participation in AS Latvijas Gaze is part of the conditions that Uniper must fulfill under EU state aid law”, the gas and power utility said in a brief statement online. Uniper was referring to fair-competition guardrails imposed by the European Commission in approving its bailout by the German government in late 2022. Latvijas Gaze sells gas in Estonia, Finland, Latvia and Lithuania. In Latvia’s household sector, it is the biggest gas supplier, Latvijas Gaze says on its website. Latvijas Gaze had a EUR 159.8 million ($187.59 million) revenue last year, according to Uniper. Energy Investments has now increased its stake to 41.11 percent. JSC Rietumu Banka owns 28.97 percent, LLC ITERA Latvija 16 percent, UAB Haupas 6.15 percent and Port Investment Co. SARL 5 percent. Other shareholders hold 2.77 percent, Latvijas Gaze confirmed separately on Wednesday. In February Uniper completed the sale of its North American power portfolio also as part of the conditions under the European Commission’s approval for the German state aid. The divestment covered “power purchase and sale contracts and energy management agreements in the North American power markets ERCOT (North, South, West and Houston), WEST (WECC and CAISO) and CENTRAL (MISO and SPP) through a number of transactions with several counterparties”, Uniper said in a press release. The North American dispositions excluded Uniper’s gas portfolio and hydrogen-related activities. In January Uniper completed the sale of its natural gas-fired power plant in Gonyu, Hungary, to the local subsidiary of France’s Veolia SA. Commissioned 2011, the power plant generates up to 430 megawatts, according

Kuwait’s state energy company said OPEC+’s latest super-sized supply hike and recent interactions with customers suggest persistent demand growth beyond the summer driving season.   “We’re seeing some potential tightness in the market, which gives us an opportunity to capture market share in the future,” Sheikh Nawaf Al-Sabah, chief executive officer of Kuwait Petroleum Corp., told Bloomberg TV in an interview on the sidelines of a seminar held by the Organization of the Petroleum Exporting Countries in Vienna.  Tanker tracking by Bloomberg shows that the Gulf state’s crude exports surged to a 19-month high in June as the OPEC+ alliance brought curbed barrels back. Most of Kuwait’s oil flows to Asian countries, including China, Japan and South Korea. Sheikh Nawaf said recent demand has been driven by Asia in particular, noting that KPC’s global business partners have been asking the company if it has additional barrels. There are indications that the customer isn’t concerned about a peak in demand, “certainly in China, and also is looking toward quality of the supplier, and that is us, because we are committed to a low-cost and low-carbon intensity barrel, and will continue for decades to come.” Producers are seeing a market that will continue to grow, Sheikh Nawaf said, with anywhere between 1 million to 1.3 million barrels a day of additional demand growth over the year.  Bloomberg News hasn’t received accreditation to cover the OPEC seminar, despite multiple requests. No explanation has been given. Sheikh Nawaf spoke outside the event. As tensions between Israel and Iran escalated last month into open conflict, KPC communicated closely with its Gulf partners to ensure a steady supply of oil to the market, according to Sheikh Nawaf. There had been concerns that the fighting could disrupt tanker traffic through the Strait of Hormuz, a critical chokepoint

Oil held steady as traders weighed a large gain in US crude stockpiles against fresh US efforts to crimp Iranian crude exports. West Texas Intermediate swung between gains and losses before settling above $68 a barrel, narrowly extending a winning streak to a third day. US crude stockpiles rose 7.1 million barrels last week, the biggest gain since January, the Energy Information Administration said Wednesday. At the same time, the US Treasury Department sanctioned 22 foreign entities for their roles in facilitating the sale of Iranian oil. “Despite a material drop in imports week-on-week, a tick lower in refining activity and subdued exports have encouraged a sizeable crude inventory build,” said Matt Smith, Americas lead oil analyst at Kpler. The sanctions helped to soothe investors’ uncertainty surrounding US policy on Iranian exports, just weeks after US President Donald Trump baffled markets by encouraging China to carry on buying Tehran’s crude. Those surprise remarks represented a reversal of years of US sanctions and briefly allayed concerns that the Israel-Iran conflict would severely disrupt supplies. Still, sanctions news will have limited upside until the market sees a material loss of barrels, said Joe DeLaura, global energy strategist at Rabobank. “It’s all kayfabe,” he said. “By the end of the week, all those sanctioned companies will exist under new names in new locations, and the oil will flow.” Renewed Houthi attacks on cargo ships in the Red Sea — a key trade route for oil — have also notably failed to inject a risk premium into oil prices. The attacks have so far killed at least three crew members and sank two vessels. “Most ships are already avoiding the Red Sea,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. The developments “indicate some escalation, but do not really change