Good Afternoon. This is the Sunya Scoop. The newsletter that takes energy transition news and turns it into an easy-to-read email for you.
It’s been a busy first week of the new year and it’s not even over.
Here’s what we have for you today:
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Qatar and US tied for top LNG exporter
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Rumor mill: Tokyo Gas in talks to acquire Rockcliff Energy for $4.6bn
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EQT reducing methane emissions
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CRC announces CCS project
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Chevron closes Beyond6 CNG acquisition
There’s a tie for the LNG Export World Cup ⚽🏆
What a beautiful chart…
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The US tied with Qatar as the world’s top exporter of liquefied natural gas (LNG) in 2022, exporting 81.2 million tons each, according to data compiled by Bloomberg.
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The global energy crisis and a shift away from Russian pipeline gas has increased demand for US LNG, which could also support the construction of new export projects along the Gulf Coast.
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The US would have been the top LNG exporter if not for a fire at the Freeport export plant in Texas, which has kept the plant shut since June. The facility is set to resume operations later this month, cementing the US as the biggest exporter of the fuel.
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However, the US will need to build more LNG export capacity if it wants to remain the top exporter through the end of the decade, as Qatar is undergoing an enormous expansion of its production facility that could solidify its position as the LNG leader from 2026. Australia is expected to remain the world’s third-largest supplier.
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Japan overtook China to become the biggest LNG importer in 2022, due to Chinese lockdowns that decreased demand for the fuel and Japanese rivals hoarding gas to prepare for winter.
Speaking of Japan as the largest LNG importer…
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Someone read Toby’s plan and loved it. #UnleashUSLNG
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Tokyo Gas is reportedly close to making a deal to acquire US natural gas producer Rockcliff Energy from private equity firm Quantum Energy Partners for around $4.6 billion, including debt.
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The deal, which is expected to be announced this month, would be an all-cash deal with Houston-based TG Natural Resources, a unit of Tokyo Gas that is 70% owned by the Japanese energy firm and the rest by Castleton Commodities International.
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TG Natural Resources is reportedly arranging funding from various sources, including banks and private credit providers, to support the transaction. However, it’s worth noting that the talks could end without an agreement and no deal is guaranteed.
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If the deal goes through, it would significantly increase TG Natural Resources’ operations, as Rockcliff produces over 1 billion cubic feet per day of natural gas from the Haynesville shale formation in Louisiana and East Texas.
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The deal would be the latest move by a Japanese entity to secure gas in jurisdictions perceived as friendly, as the importance of securing gas supplies has risen for Japan after Russia’s invasion of Ukraine caused supply markets for the commodity to be roiled.
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Japan is one of the leaders in Asia on reducing carbon emissions and securing US LNG supply comes as no surprise.
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BIG news coming out of EQT Corporation, the largest natural gas producer in the US. They just completed a massive $28 million initiative to eliminate ALL natural gas-powered pneumatic devices from their production operations.
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The result? A whopping 70% reduction in methane emissions and a 305,614 metric ton reduction in their annual carbon footprint.
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This wasn’t a small feat – they had to replace or retrofit nearly 9,000 pneumatic controllers with electric actuators and air compressor installations.
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And get this – they were able to complete the whole process in just 515 days, finishing a full year ahead of schedule.
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EQT, along with other US natural gas independents, are leading the pack on lowering emissions and imagine this blueprint will be followed across the country.
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California Resources Corporation (CRC), through it’s subsidiary Carbon TerraVault Holdings (CTV) has entered into a Carbon Dioxide Management Agreement (CDMA) with and Grannus, a clean-tech company, for a permanent carbon storage project in Northern California.
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The project will involve the sequestration of 370,000 metric tons of CO2 per year at CTV’s facility, from a new blue ammonia and hydrogen plant being built by Grannus.
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The plant will use Grannus’ patented process to operate a virtually emissions-free facility once the CO2 is sequestered. The CO2 will be captured and permanently stored underground by CTV, while the blue hydrogen produced will be used in nitrogen-based fertilizers.
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The fertilizers will be supplied to CALAMCO, a cooperative of around 900 dealer and grower members in California that represents the majority of agricultural ammonia demand in the state.
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The CDMA is expected to significantly reduce the carbon intensity of California’s agricultural sector.
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Chevron closes on the acquisition of the full ownership of Beyond6 and its network of 55 compressed natural gas (CNG) stations across the US.
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Chevron is looking to add some renewable natural gas to its portfolio of solutions as they try to help customers support a lower carbon future. To do this, they’re partnering with Brightmark and California Bioenergy to develop projects across the US that will convert methane emissions from dairies into renewable natural gas.
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This renewable natural gas is considered carbon negative under California’s Low Carbon Fuel Standard, and with the acquisition of Beyond6, Chevron will be able to market it through a nationwide network of CNG locations.
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Chevron and Beyond6’s current co-owner, Mercuria, will also enter into a long-term supply relationship to deliver RNG to Chevron as part of the deal.
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Looks like a solid move for Chevron as they continue to look for ways to reduce their carbon footprint.
That’s a wrap for today. If you like what you read, send it to a friend. If someone forwarded you this and you liked it, consider subscribing below.
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.