I joined my kids’ fantasy football league this year. Considering I messed up my drafting day, my team, Da Bears, are actually holding up pretty well. Having an extra way to connect with my kids, who live in different cities, means the world to me.
Now, let’s look at a couple of energy newsbytes from the past week.
Shangyou Nie
Editor, Well Read
Chevron Tries to Enter Greece
Maxim Studio/Shutterstock
Chevron has reportedly teamed up with Greek company HelleniQ Energy to submit bids for four exploration blocks in the offshore Mediterranean Sea. If successful, the acreage would add a new country to Chevron’s exploration portfolio.
Background:
Chevron, ExxonMobil, TotalEnergies, and ENI have discovered around 10 trillion cubic feet of gas in offshore Cyprus.
In January, Chevron submitted a non-binding expression of interest to Greece’s Hellenic Hydrocarbons & Energy Resources Management Co. (Herema) for one open block.
Herema is a company set up to manage Greece’s “exclusive rights with regard to prospection, exploration, storage and exploitation of hydrocarbons, and offshore wind parks.”
The four blocks are Block A2, South of Peloponnese, South of Crete 1, and South of Crete 2.
If Chevron is awarded the blocks, it will be the operator, though the exact equity split between the two partners has not been revealed.
Interesting timing: According to Upstream, the news coincided with U.S. Secretary of Interior Doug Burgum’s recent visit to Greece.
During the visit, Burgum discussed potentially importing U.S. LNG into Greece.
What they are saying: “It’s a very interesting coincidence that you come a day after Chevron officially submits interest to start exploratory work in areas south of Crete, confirming the sovereign rights of the Hellenic Republic in that area,” said Kyriakos Mitsotakis, Greece’s Prime Minister, as he welcomed Burgum.
Chevron in the region:
Chevron established its footprint in the East Mediterranean after acquiring Noble Energy in 2020.
Chevron is producing gas from its Leviathan and Tamar gas fields in Israel.
Chevron is also the operator for the Aphrodite Gas Field in Cyprus with partners Shell and NewMed Energy.
About HelleniQ:
HelleniQ Energy is a publicly traded Greek company with a market cap of roughly $3 billion.
Its business includes gas and power, downstream and retail, and renewables in eight European countries.
HelleniQ is in exploration and production in Greece under HelleniQ Upstream.
It is also a partner with ExxonMobil in two other offshore blocks in Greece.
The IOCs and the Cypriot government are pushing a concept to supply the country’s gas to operating LNG plants in Egypt for export to Europe and other markets.
There are complicated border issues involving Turkey, Cyprus, Greece, and Libya that are major stumbling blocks to the concept of an East Mediterranean gas pipeline to Europe.
The Greek government said that it is in close discussions with Libyan authorities in Tripoli and Benghazi, hoping to reach some agreement by end of 2025.
Both sales and purchase agreements (SPAs) are on a free-on-board basis, with gas prices indexed to Henry Hub, and conditional upon the final investment decisions by both LNG developers.
About Rio Grande LNG:
Operator NextDecade said it aims to take FID for Train 5 for Rio Grande LNG in Q4 2025, having secured 3.5 million tonnes per annum of SPAs for the 5.4-million-tonnes-per-annum project.
Its gas assets are located primarily in the Appalachian Basin in the East, far from the West Texas and Gulf Coast LNG plants.
What they are saying:
“The execution of this agreement represents continued momentum of EQT’s LNG strategy, which is focused on further diversifying the company’s end-market exposure into the rapidly growing global gas markets and accelerating long-term earnings growth,” said Toby Rice, EQT president and CEO.
“The signing of this agreement with Commonwealth LNG adds to the momentum we are building in the LNG market and further strengthens EQT’s position as a leader connecting U.S. natural gas supply to growing global demand,” Rice added.
What to watch:
Will EQT acquire upstream assets/companies to supply gas to these LNG facilities, making it an LNG value chain player?
Who might be the next company to sign LNG offtake agreements with Commonwealth and NextDecade?
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