Latest news with #naturalgas
Bloomberg
2 hours ago
- Business
- Bloomberg
Japan's Top LNG Buyer Inks Preliminary Pact With Alaska Project
Japan's largest liquefied natural gas importer, JERA Co., signed an expression of interest to explore buying the fuel from a long-delayed export project in Alaska, according to people with knowledge of the matter. JERA, which is also the nation's largest power producer, inked the non-binding pact ahead of a summit in the US state next week, said the people, who asked not to be identified because the talks are private. JERA did not specify in the expression of interest how much LNG the company would potentially buy, the people said.
ABC News
11 hours ago
- Business
- ABC News
Gas or hot air? Can Woodside lower energy prices and save the planet?
If it goes to full term, Australia's biggest ever resource project will pass the ton. This week, Woodside Petroleum was given the federal government green light to extend the North West Shelf venture — a gas project spawned in 1963 — by a further 40 years, taking it through to 2070. The environmental approval process for the extension, however, has taken on a life of its own. After more than seven years of negotiations and appeals, annoyed Woodside officials have become increasingly vocal in their criticisms of the ongoing delays. But on Wednesday, Woodside supremo Meg O'Neill, while her usual curt self, by her own admission was "delighted" by the proposed approval from the newly minted environment minister, Murray Watt. The project would, she said, provide the state with energy security, shore up domestic supply, keep international customers on a leash, aid the energy transition and help alleviate cost of living pressures. "We need to manage the pace of the energy transition," she told reporters at the post announcement press conference. She then homed in on the recent federal election campaign and the focus on living costs and particularly exorbitant energy costs. "Natural gas and the increased supply of natural gas is part of the solution to help bring those power prices down," she argued. Woodside has just over a week to agree to the conditions laid down by the federal government. But green groups are apoplectic, and all parties are bracing for legal appeals. But there are wider concerns, too. It's a well-worn argument from industry players. But it raises a couple of issues. Gas was always seen as a transition fuel, a stopgap measure to generate power during peak times as we weaned ourselves off coal during the renewable energy rollout. The Albanese government last year acknowledged the delays in building adequate renewable supplies and the extended role that gas will need to play as a result. But are we contemplating a delay that is likely to extend another 45 years? That's a timeline that doesn't quite gel with net zero targets by 2050. And what of the claims that all this extra gas will assist in reducing electricity prices? Australia already is one of the world's biggest gas producers and exporters. Why would even more gas production make any difference to local electricity prices? That's a point Josh Runciman, the lead analyst for Australian gas at the Institute for Energy Economics and Financial Analysis, has questioned. "The amount of gas that will actually flow from the North West Shelf extension into the domestic market is a key question here," he told ABC's The Business. Western Australia is the only state or territory to demand gas producers put aside a percentage of production for domestic use. But even that has its shortcomings. "Woodside is currently behind on its domestic reservation commitments," he said. "It's meant to supply 15 per cent of reserves. They're nowhere near that." The uproar over soaring energy costs mostly relate to the east coast dominated National Energy Market after gas exporters ran the system dry, sending electricity prices soaring. Western Australia, however, is neither connected to the National Electricity Market nor to the east coast network of gas pipelines, so extra production from the North West Shelf is unlikely to have any impact on electricity for most of the country. When it comes to emissions, gas might be better than coal but it's still a dirty fuel. It is the lesser of two evils. Much of Woodside's future production — the gas expected to continue providing feedstock for its giant Karratha plant — is expected to come from a new offshore development well to the north of the North West Shelf and the huge Pilbara based processing plant. Known as Browse, it too has been decades in the making. But there are technical issues with the gas in this field, with a high percentage of carbon dioxide. To extract that, and to remain in line with emissions commitments, it will need to be net zero from day one of its production. That will require an elaborate carbon capture and storage program that, ultimately, may limit the economic viability of the field. Already, there are concerns of a global glut of the energy source with planned major lifts in output from the United States, Canada, the Middle East and now Australia. Russia, meanwhile, which has the world's biggest gas fields, has been forced to divert supplies to China on the cheap after its invasion of Ukraine. Shikha Chaturvedi, the head of JP Morgan's global natural gas strategy, sees prices ultimately heading in just one direction. "We see a downward global LNG price trajectory with increased volatility, driven by a structurally oversupplied market," she told clients earlier this year. So, why would Woodside embark upon such a huge project? Mr Runciman isn't surprised. "When you look at declining markets, generally, companies will compete until it's last man standing and I suspect Woodside's move is part of that." Oil giants and tax revenue often are considered mutually exclusive terms, at least in Australia. While Norway and Qatar net huge sums annually, Australia has struggled to bring multi-national resource giants to heel, even with a Petroleum Resources Rent Tax. The Australian Tax Office has fought mammoth court battles against the likes of Chevron and ExxonMobil over unpaid tax. It's a delicate issue for Woodside, which this week noted: "Over four decades, the project has paid more than $40 billion in royalties and excise." While royalties are a cost of doing business, they are not a tax. They are payments for the right to exploit a resource owned by the state. That aside, Woodside is, however, one of the country's biggest taxpayers, forking out $814 million last year, $653 million the year before and $2.9 billion in 2022. But its payments under the PRRT scheme indicate the shortcomings of the regime. While it paid $890 million in PRRT in 2023, it last year received a $91 million benefit and a $313 million benefit in 2022. When the world began stepping back from hydrocarbons and petrochemicals as governments embraced zero emissions pledges, Woodside stepped forward. Two years ago, it took control of BHP's massive petroleum business, based mostly in the Gulf of Mexico. That ethos still pervades Woodside's ethos as it this week championed the North West Shelf expansion with the company arguing that without gas, we would need more coal. That's an idea that Mr Runciman rejects. It is renewables replacing coal, not gas, he said. "A sustained effort to focus on renewables would complement gas, not lead to additional coal." The question is whether we'll still be transitioning in 2070.
The Independent
20 hours ago
- Business
- The Independent
Schoolchildren struggling with headaches and vomiting from gas plant pollution
In Counselor, New Mexico, a routine drive home for Billton Werito and his son Amari is a stark reminder of the challenges faced by families living near natural gas operations. On a Tuesday in March, as Werito navigated the dirt road leading to their house, Amari was absent from school due to nausea and a headache. "It happens a lot," Amari explained, highlighting a recurring issue linked to the smell of "rotten egg with propane" emanating from nearby natural gas wells. This odour frequently affects Lybrook Elementary School, where Amari and around 70 other Navajo students attend classes. His younger brother also experiences similar symptoms, often leading to missed school days. Billton Werito expressed his concern, stating, "They just keep getting sick. I have to take them out of class because of the headaches. Especially the younger one, he's been throwing up and won't eat." These health issues are not only disrupting the children 's education but also raising concerns about their overall well-being and academic progress. Lybrook sits in the heart of New Mexico's San Juan Basin, a major oil and gas deposit that, along with the Permian Basin in the state's southeast, is supplying natural gas that meets much of the nation's electricity demand. The gas pulled from tens of thousands of wells in New Mexico has reaped huge benefits for the entire country. Natural gas has become a go-to fuel for power plants from coast to coast, sometimes replacing dirtier coal-fired plants and, by extension, improving air quality. Locally, oil and gas companies employ thousands of workers, often in areas with few other opportunities, all while boosting the state's budget with billions in royalty payments. But those benefits may come at a cost for thousands of students in New Mexico whose schools sit near oil and gas pipelines, wellheads and flare stacks. An analysis of state and federal data found 694 oil and gas wells with new or active permits within a mile of a school in the state. This means that around 29,500 students in 74 schools and pre-schools potentially face exposure to noxious emissions, as extraction from the ground can release unhealthy fumes. A measurable effect on students At Lybrook, where Amari just finished sixth grade, fewer than 6 per cent of students are proficient at math, and only a fifth meet state standards for science and reading proficiency. Other factors could help explain students' poor achievement. Poverty rates are higher in some areas with high levels of gas development, and students at rural schools overall tend to face challenges that can adversely affect academic performance. AP's analysis found that two-thirds of the schools within a mile of an oil or gas well were low-income, and the population is around 24 per cent Native American and 45 per cent Hispanic. But research has found that student learning is directly harmed by air pollution from fossil fuels — even when socioeconomic factors are taken into account. And it's not just New Mexico where this is a risk. An AP analysis of data from the Global Oil and Gas Extraction Tracker found over 1,000 public schools across 13 states that are within five miles of a major oil or gas field. Major fields are collections of wells that produce the highest amount of energy in a state. 'This kind of air pollution has a real, measurable effect on students,' said Mike Gilraine, a professor of economics at Simon Fraser University in Vancouver, Canada, who studies connections between air quality and student performance. In 2024, Gilraine co-wrote a study showing that student test scores were closely associated with air contamination. Each measured increase in PM2.5, a type of pollution created from the burning of fossil fuels, was associated with a significant decline in student test scores, Gilraine found. Conversely, researchers have documented that reductions in air pollution have led to higher test scores and fewer absences. 'To me the surprise was certainly the magnitude of the effects' of air pollution on students, Gilraine said. 'It's hard to find a similar factor that would have such an impact on schools nationwide.' America's shift to natural gas has resulted in substantial increases in student achievement nationwide, Gilraine's research shows, as it has displaced dirtier coal and led to cleaner air on the whole. But there has been little data on air quality across New Mexico, even as it has become one of the most productive states in the nation for natural gas. State regulators have installed only 20 permanent air monitors, most in areas without oil or gas production. Independent researchers have extensively studied the air quality near schools in at least two locations in the state, however. One is Lybrook, which sits within a mile of 17 active oil and gas wells. In 2024, scientists affiliated with Princeton and Northern Arizona universities conducted an air-monitoring study at the school, finding that levels of pollutants — including benzene, a cancer-causing byproduct of natural gas production that is particularly harmful to children — were spiking during school hours, to nearly double the levels known to cause chronic or acute health effects. That research followed a 2021 health impact assessment that was done with support from several local nonprofits and foundations, which analyzed the effects of the area's oil and gas development on residents. The findings were startling: More than 90 per cent of people surveyed suffered from sinus problems. Nosebleeds, shortness of breath and nausea were widespread. The report attributed the symptoms to the high levels of pollutants that researchers found — including, near Lybrook, hydrogen sulfide, a compound that gives off the sulfur smell that Amari Werito associated with his headaches. Those studies helped confirm what many community members already knew, said Daniel Tso, a community leader who served on the committee that oversaw the 2021 health impact assessment. 'The children and the grandchildren need a safe homeland,' Tso said during an interview in March, standing outside a cluster of gas wells within a mile of Lybrook Elementary. 'You smell that?' he said, nodding towards a nearby wellhead, which smelled like propane. 'That's what the kids at the school are breathing in. I've had people visiting this area from New York. They spend five minutes here and say, 'Hey, I got a headache.' And the kids are what, six hours a day at the school breathing this?' Lybrook school officials did not respond to requests for comment. Despite risks, oil and gas can pump money into schools Researchers have identified similar air quality problems in New Mexico's southeast. In 2023, a team of scientists from a coalition of universities conducted a detailed, yearlong study of the air in Loving, a small town in the Permian Basin. Local air quality, researchers found, was worse than in downtown Los Angeles, and the tested air contained the fifth-highest level of measured ozone contamination in the U.S. The source of the ozone — a pollutant that's especially hazardous to children — was the area's network of gas wells and related infrastructure. Some of that infrastructure sits within a half-mile of a campus that houses Loving's elementary, middle and high schools. A small group of residents has spoken out about the area's air quality, saying it has caused respiratory problems and other health issues. But for most locals, any concerns about pollution are outweighed by the industry's economic benefits. Representatives of the oil and gas industry have claimed the air quality studies themselves are not trustworthy. 'There needs to be a robust study to actually answer these questions,' said Andrea Felix, vice president of regulatory affairs for the New Mexico Oil and Gas Association (NMOGA). Felix said other sources of emissions, such as cars and trucks, are likely a larger source of air quality problems near wells. 'Companies follow the best available science' for well placement and emissions controls, Felix said, and also contribute huge amounts of money to the state's education budget through streams like royalties and direct expenditures. In the most recent fiscal year, oil and gas revenue supported $1.7 billion in K-12 spending in New Mexico, according to a NMOGA report. Officials with Loving Municipal Schools are also skeptical of the alarm over the wells. Loving Superintendent Lee White said the school district used funds from the oil and gas industry to pay for a new wing at the elementary school, a science lab for students, turf on the sports field and training and professional development for teachers. He said the industry's contributions to state coffers can't be ignored. 'Are we willing to give that up because people say our air is not clean?' he said during an interview. 'It's just as clean as anywhere else.' As White spoke, a drill rig worked a couple of miles east of Loving's elementary school while parents poured into the gymnasium to watch kindergartners collect their diplomas. White touted the district's success, saying the elementary school scores above state averages for reading, math and science proficiency, while Loving's high school students far outpace the state average for college and career readiness. But environmental groups, attorneys and residents continue to push for limits on drilling near schools. Those efforts saw a boost in 2023, when New Mexico State Land Commissioner Stephanie Garcia Richard issued an executive order prohibiting new oil and gas leases on state-owned land within a mile of schools. Industry representatives decried the move, saying it added potentially insurmountable costs and barriers to drilling operators. However, AP's analysis found that relatively few wells would be impacted even if the rule applied to all of New Mexico; only around 1 per cent of oil and gas wells in the state are within a mile of a school. In the years since, residents of areas where exploration is heavy have lobbied for legislation prohibiting gas operations within a mile of schools, regardless of land status. That bill died in committee during the most recent session of the New Mexico legislature. Advocates have also sued the state over an alleged lack of pollution controls. That suit is currently pending in state court.
Bloomberg
a day ago
- Business
- Bloomberg
European Gas Edges Higher as Traders Weigh Court's Tariff Ruling
European natural gas inched higher on speculation that a move by a US court to block President Donald Trump's tariffs may lift energy demand. Benchmark futures rose as much as 0.9% on Thursday, the last trading day of the June contract. The market remains volatile, even as a public holiday in much of Europe cuts volumes.
The Guardian
a day ago
- Business
- The Guardian
Pocock says voters have ‘buyer's remorse' after Labor approves massive gas development's 40-year extension
Crossbenchers and environmental advocates are furious at the government's decision to extend the life of one of the world's biggest liquified natural gas projects from 2030 to 2070. The environment minister, Murray Watt, gave the green light to Woodside Energy's application to extend the life of the North West Shelf project from 2030 to 2070. Independent senator for the ACT David Pocock said it was a 'devastating decision'. 'I think there'll be a lot of people with some buyer's remorse – I think people voted for Labor to actually do better on climate,' he told Guardian Australia. 'I think it really is a betrayal of Australians and the Pacific. I think it's really, really sad.' Get Guardian Australia environment editor Adam Morton's Clear Air column as an email Others on the crossbench also spoke out, blasting the decision. Independent MP Zali Steggall said it would be a 'mark on Anthony Albanese and the 48th parliament's legacy'. 'The first official action they have taken is to approve an emissions bomb till 2070, and that puts at risk our net zero commitment,' she said. Steggall also said that the election was a 'clear debate' on climate, and that the public voted for 'transition to renewable energy'. 'The reality is that the decision to expand and extend the North West Shelf to 2070 makes a mockery of the commitment to [net zero by] 2050 and makes a mockery of the commitment to preserving cultural heritage,' she said. Watt said he had been required to consider the potential impact of the plant on the national heritage values of nearby ancient rock art, and economic and social matters. Under the current legislation, climate change is not grounds to refuse or limit a development application. Watt has been charged with legislating a federal environment protection agency, after the last laws, designed under former environment minister Tanya Plibersek, were dumped near the end of the last parliamentary term. On Thursday, Anthony Albanese told ABC radio the country was halfway towards delivering achieving its target of 82% renewables by 2030, but that the grid needed to be 'backed by gas'. '[The extension] was approved by the state government. Murray Watt, as the federal minister, had to look at some of the issues which are there. He has made a preliminary determination out there for comment that is based upon very strict conditions,' he said. Watt said he had told Woodside the extension, on the Burrup Peninsula in northern Western Australia, would come with 'strict conditions' relating to local air pollution. Labor MPs, some who had previously spoken out against the government's 2050 gas strategy, were less agitated than the crossbench by the approval. One said it was 'not ideal' but noted Watt was confined to the current environmental laws. Another MP also said that the environment minister was in a 'very difficult' position in making a decision within the 'constraints of the law'. They said the decision 'solidified … the need to get action on environmental reforms'. Sign up to Clear Air Australia Adam Morton brings you incisive analysis about the politics and impact of the climate crisis after newsletter promotion A third Labor source said the timing was 'tough', following closely on an election with climate and the energy transition in focus. The CEO of the Australian Conservation Foundation, Kelly O'Shanassy, said Watt could have used the current environmental laws – the Environment Protection and Biodiversity Conservation (EPBC) Act – to reject the extension. 'The EPBC Act is a series of processes that the minister can apply, so they can if they want to choose to assess the climate implications of a project right now – and they just choose not to,' she said. 'Global warming, which is right now causing droughts to be worse in South Australia, floods to be worse in NSW, and not so long ago, a cyclone hitting Brisbane – that is driven by coal and gas and the government seems to be ok with that.' On Wednesday, following the decision, the Greens accused Watt of having 'failed at the first hurdle'. 'Rather than protecting the environment, the minister has just approved the trashing of our environment and trashing climate action,' said the party's environmental spokesperson, Sarah Hanson-Young. On Thursday, mining company Fortescue Metals, owned by the billionaire Andrew Forrest, sharply criticised the approval. The company's chief executive, Dino Otranto, said the suggestion that Australia could lock in fossil fuel projects until 2070 while still claiming progress toward net zero was 'concerning'. 'If Australia is serious about tackling climate change we must move beyond net zero and commit to genuine emissions reduction,' he said. 'Extending high-emitting projects like the North West Shelf is not a credible long-term climate solution – it's a step backward. More than that, it raises serious questions about how we define climate ambition in Australia.'
