NO. 1: European natural gas prices continued to climb on Thursday, hitting a five-month high after Austria’s OMV AG warned earlier in the week of potential disruptions to Russian gas supplies.
The company, one of the few in Europe still importing Russian volumes, said an undisclosed company won a favorable court ruling that could potentially impact its payments to an affiliate of Gazprom PJSC. The development could eventually halt supplies from Russia if the foreign court ruling is enforced in Austria – and if OMV is forced to pay the undisclosed company instead of Gazprom.
Despite ample storage stocks and steady injections, the market remains on edge about supply disruptions. The Title Transfer Facility contract on Wednesday climbed above $11/MMBtu for the first time since January. And on Thursday, it traded at highs not seen since December. Heavy Norwegian maintenance and potential delays to U.S. LNG projects have also impacted trading this week. Liquefied natural gas buying is strong in Asia as well, where a heat wave in India has increased spot market activity.
NO. 2: Zachry Group, one of three construction firms working on the Golden Pass LNG terminal, told its hourly subcontractors at the site that were furloughed earlier this month they would not return to work.
The company, which filed for bankruptcy citing high costs associated with keeping Golden Pass on track, told workers that they have been “officially separated” from the site. The affected employees could be transferred to other locations where the company is working.
Chiyoda Corp. and McDermott were continuing work on the 18 million metric tons/year (mmty) project in Texas, which is 75% complete.
If a reshuffling of contractors were to cause delays, it would be the second time in less than a year that the Golden Pass timeline has shifted. ExxonMobil reported late last year that exports would begin in the first half of 2025 instead of 2024, as it had long signaled with project partner QatarEnergy.
NO. 3: Abu Dhabi National Oil Co. (Adnoc) has acquired a 10% stake in the Area 4 concession of the Rovuma basin offshore Mozambique, giving it a share of significant LNG production being developed in the region.
The Area 4 concession includes Eni SpA’s operational Coral South Floating LNG (FLNG) facility, the planned Coral North FLNG development and ExxonMobil’s planned Rovuma LNG onshore facilities. The plants would have a combined LNG production capacity of 25 mmty.
Adnoc’s announcement follows another earlier this week, when it said it would take an 11.7% stake in the first phase of NextDecade Corp.’s Rio Grande LNG terminal being built in South Texas.
The acquisitions are part of Adnoc’s international growth strategy. The company is also developing the 9.6 mmty Ruwais LNG project in Abu Dhabi, which is expected to reach a final investment decision this year.
