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Reuters
6 days ago
- Business
- Reuters
China's Sinopec signs contract to explore Algerian gas block
SINGAPORE, July 24 (Reuters) - China's state oil and gas major Sinopec Group said it has signed a contract to explore a natural gas block in Algeria that potentially holds large shale gas resource. The contract was signed earlier this week between Sinopec International Petroleum Exploration & Production Corporation (SIPC) and state-run Algerian oil and gas company Sonatrach. The North African country last month awarded Sinopec via an international tender to explore and develop block Guern El Guessa II, or GEG, which has an area of 36,000 square kilometers, located in the Gourara-Timimoun Basin in southwestern Algeria. Sinopec, formerly known as China Petrochemical Corp, said in June that the GEG block has proven conventional gas resource but potentially also holds sizeable shale gas resource. Before bidding, Sinopec conducted multiple rounds of evaluations of the target block by "fully leveraging on company's expertise and integration" in developing unconventional oil and gas resource, Sinopec said in its in-house newspaper in June. Sinopec is one of China's earliest shale gas developers, operating flagship Fuling field in China's southwest that is the country's single-largest shale gas project. The GEG contract follows an earlier $850 million deal in February in which Sinopec and Sonatrach agreed to jointly explore and develop Hassi Berkane-North field. Independent Chinese firm Zhongman Petroleum and Natural Gas Company also signed a contract this week to explore and develop Zerafa II natural gas block in Algeria, following a tender award last month, ZPEC said on its official WeChat platform.
CNA
22-07-2025
- Business
- CNA
Taiwan's CPC denies 'specific' US shale gas acquisition talks
TAIPEI :Taiwan's state-owned energy company CPC Corp said it is not in talks for "specific" shale gas fields in the United States, but it does not rule out any prospective partners and will make the most favourable decision based on its own evaluations. CPC is in early stage discussions to buy shale-gas producing assets in the United States, three sources familiar with the matter told Reuters earlier this month, in a bid to secure natural gas supplies to fuel Taiwan's economy. In a statement late on Monday, CPC said U.S. shale gas has long been an important target area for the company because of its high quality, mature extraction technology and favourable investment environment. "CPC will not rule out any prospective partners and will make the most favourable decision based on the evaluation results," it said. "As for reports that CPC is in the process of discussing the acquisition of specific shale gas fields in the United States, that is not true," the company added, without elaboration. Taiwan has pledged to increase its purchase of energy from the United States as a way of reducing its yawning trade surplus and head off tariffs. In March, CPC signed an agreement with Alaska Gasline Development Corp to buy LNG and invest in the Alaska LNG project which will transport gas south from Alaska's remote north via pipeline, to be shipped as LNG to Taiwan, Japan and South Korea.
Reuters
22-07-2025
- Business
- Reuters
Taiwan's CPC denies 'specific' US shale gas acquisition talks
TAIPEI, July 22 (Reuters) - Taiwan's state-owned energy company CPC Corp said it is not in talks for "specific" shale gas fields in the United States, but it does not rule out any prospective partners and will make the most favourable decision based on its own evaluations. CPC ( is in early stage discussions to buy shale-gas producing assets in the United States, three sources familiar with the matter told Reuters earlier this month, in a bid to secure natural gas supplies to fuel Taiwan's economy. In a statement late on Monday, CPC said U.S. shale gas has long been an important target area for the company because of its high quality, mature extraction technology and favourable investment environment. "CPC will not rule out any prospective partners and will make the most favourable decision based on the evaluation results," it said. "As for reports that CPC is in the process of discussing the acquisition of specific shale gas fields in the United States, that is not true," the company added, without elaboration. Taiwan has pledged to increase its purchase of energy from the United States as a way of reducing its yawning trade surplus and head off tariffs. In March, CPC signed an agreement with Alaska Gasline Development Corp to buy LNG and invest in the Alaska LNG project which will transport gas south from Alaska's remote north via pipeline, to be shipped as LNG to Taiwan, Japan and South Korea.
Yahoo
19-07-2025
- Business
- Yahoo
Natural Gas Dominance Unchallenged in Global Energy Landscape
With much of the world's attention focused on wind turbines, solar panels, and electric vehicles, natural gas has grown in importance as the backbone of modern energy systems. It fuels power plants, heats homes, drives industry, and—through liquefied natural gas (LNG)—connects continents. The newly released 2025 Statistical Review of World Energy highlights just how indispensable natural gas has become, despite mounting pressure to decarbonize. Following the previous article on global oil production and consumption trends, let's dig into the numbers behind the global gas market, with a focus on production, consumption, and the increasingly critical role of LNG exports. U.S. Still Leads the Pack in Production In 2024, global natural gas production reached a record-breaking 398.0 billion cubic feet per day (Bcf/d). The United States alone accounted for 25% of that, producing just under 100 Bcf/d. That marked a slight decline from the record output in 2023, but still more than five times Canada's output, its closest North American peer. Much of this strength comes from the shale gas revolution that began about 20 years ago, turning the U.S. into both the world's largest natural gas producer and ultimately the world's top LNG exporter. Russia, which the U.S. overtook for first place among gas producers in 2011, remains the world's second-largest producer, with 60.8 Bcf/d of output in 2024. But that figure remains below its pre-sanction highs as exports to Europe dried up and pipeline projects faced delays. Moscow has attempted to pivot to Asian markets, but logistical and political hurdles have slowed progress. Other top producers include: Iran and Qatar, which remain vital players in the Middle East, producing around 25 and 17 Bcf/d, respectively. China, whose domestic gas output has doubled over the past decade, now stands at 23 Bcf/d—an impressive feat as the country pushes to displace coal with cleaner-burning alternatives. Australia, at 14 Bcf/d, has carved out a global leadership role in LNG, although future growth may be constrained by aging fields and regulatory pressure. Africa's contributions are modest in comparison. Algeria leads the continent with 9.1 Bcf/d, followed by Egypt and Nigeria. Infrastructure bottlenecks and underinvestment have limited the continent's broader potential. Notably, over the past decade, more than half of global natural gas production growth has come from OECD countries, albeit production in the EU has declined by two-thirds. This underscores that despite a global push toward renewables, countries continue to seek flexible energy supplies that balance affordability with lower carbon intensity. Consumption: Asia Rises, OECD Stabilizes Global consumption of natural gas in 2024 hit an all-time high of 398 Bcf/d, more than double the level seen in 1990. Much of this growth has been driven by non-OECD nations—and especially Asia. The U.S. remains the world's largest consumer at 87 Bcf/d, accounting for about 22% of global demand in 2024. Russia is in second place at 46 Bcf/d, although growth has slowed over the past decade. China is third, with consumption more than doubling over the past 10 years to reach 42 Bcf/d. This reflects both rapid industrialization and government efforts to reduce air pollution by shifting growth away from coal. Other notable consumers include: Iran: 24 Bcf/d, largely for domestic use. Canada and Saudi Arabia: Around 12 Bcf/d each, largely for petrochemicals and power. Japan and Germany: Just under 9 Bcf/d each, with both showing signs of decline as efficiency measures and renewables gain ground. India: 6.8 Bcf/d, growing gradually, especially in fertilizer and power sectors. Regionally, Asia-Pacific has nearly caught North America in total consumption. As of 2024, the region accounts for 23.6% of global demand—led by China, India, and Japan. OECD nations still make up over 43% of the total but there has been essentially no overall growth there since 2018. Even Africa, long a minor player in gas demand, is beginning to scale. Countries like Algeria and Egypt are seeing stronger growth, both due to improved energy access and the local development of gas resources. The data tells a compelling story: over the past decade, 74% of the 70 Bcf/d in global demand growth came from non-OECD nations—a reversal from the early 2000s when the developed world drove expansion. LNG: The Real Game-Changer If there's one segment that has transformed global gas dynamics in the past decade, it's liquefied natural gas. In 2024, global LNG exports hit nearly 546 billion cubic meters—or roughly 53 Bcf/d—tripling since 2010. The United States now leads the world in LNG exports, shipping more than 11 Bcf/d in 2024. Just 15 years ago, the U.S. was building LNG import terminals. Today, it's not only energy self-sufficient, but also helping allies diversify away from Russian supply. Qatar, the long-time global leader, is now second at 10.3 Bcf/d. While its export volumes have plateaued, Qatar is investing heavily in capacity expansion and could reclaim its crown in coming years. Australia is close behind, also at 10.3 Bcf/d, but faces declining output from mature fields. Other notable exporters include: Russia: 4.3 Bcf/d of LNG exports—limited by sanctions and slow infrastructure development. Nigeria and Algeria: The backbone of Africa's with 4.9 Bcf/d of LNG exports between them. Malaysia, Indonesia, and Brunei: Significant Asia-Pacific suppliers, though overshadowed by newcomers. Papua New Guinea: A rising player, with over 1.1 Bcf/d in LNG exports despite only recently entering the market. Trinidad & Tobago: The Caribbean's major LNG supplier, though its output has declined from previous highs. Europe remains mostly a consumer of LNG rather than a supplier. Norway contributes modestly, while the rest of the continent plays a marginal role in exports. Perhaps the most important observation here is how the LNG trade has shifted from a few key producers to a broad mix of suppliers across five continents. That diversification has created a more liquid and flexible gas market. Looking Ahead: Natural Gas in a Decarbonizing World Despite widespread climate commitments, natural gas remains essential to global energy stability. Its role as a bridge fuel—replacing coal while enabling the growth of intermittent renewables—has only grown in recent years. Still, challenges remain. Price volatility, infrastructure constraints, and mounting regulatory pressure—particularly in Europe—are reshaping how gas is produced, moved, and consumed. The regulatory push toward carbon capture, hydrogen blending, and lower methane emissions will continue to evolve the landscape. But if the past decade is any guide, natural gas is far from becoming obsolete. It's global, flexible, and adaptable—and if anything, it has cemented itself as the quiet giant of the energy world. By Robert Rapier More Top Reads From this article on
Arabian Business
18-07-2025
- Business
- Arabian Business
Aramco close to $10bn Jafurah infrastructure deal with BlackRock
Saudi Aramco is reported to be close to a deal that will raise around US$10 billion from a group led by BlackRock that will invest in the infrastructure of Aramco's Jafurah gas project. Reuters reported this after speaking with two people with knowledge of the matter, but requested anonymity. The US$100 billion Jafurah project, which could become the largest shale gas project outside the United States upon completion, is central to Aramco's future ambitions and is expected to increase its gas production capacity from 2021 levels by 60 per cent in 2030. The two people said the latest transaction was expected to be similarly structured to two Aramco infrastructure deals in 2021, including one in which BlackRock invested in Aramco's gas pipeline networks, allowing the Saudi company to generate funds. The Jafurah assets underpinning the deal include gas pipelines and a gas processing plant, one of the sources said. In 2021, BlackRock and EIG were among investor groups that took stakes in companies that leased usage rights in Aramco's gas and oil pipeline networks. The groups leased them back to Aramco for a 20-year period in two separate deals, helping the Saudi company to raise nearly US$28 billion. Reuters reported that the agreement would be the latest in a series of financial arrangements, akin to borrowing, that enable Gulf oil-producing countries to raise funds for economic diversification while providing investors with a stable revenue stream. Aramco has long been the biggest source of the kingdom's revenues. Saudi Arabia has been seeking to diversify its economy as oil prices have come under pressure from global economic uncertainty that could further reduce demand.
