The week in energy: Citgo board, climate and FERC profit
Citgo board drawn into Venezuela’s political battle
The battle for control of Venezuela spilled into Houston on Wednesday when opposition leader Juan Guaidó appointed a new “ad hoc” board of directors for Citgo Petroleum, the U.S. subsidiary of the country’s national oil company and a significant source of revenue. The Houston refiner has become a key piece in the geopolitcal chess game among world powers as Guaidó, recognized by the United States and its allies as the legitimate ruler of Venezuela, challenges the socialist President Nicloás Maduro, supported by Russia and China.
Climate matters in FERC permitting, commissioner says
The Federal Energy Regulatory Commission has ignored an appellate court ruling by not considering climate change in its permitting decisions, Commissioner Richard Glick said. Glick, speaking at a state utility regulators conference in Washington, said the commission should consider greenhouse gas emissions for all liquefied natural gas and pipeline projects, citing a 2017 ruling by the D.C. Circuit Court of Appeals. That ruling found that FERC erred in not considering greenhouse gas emissions when it granted a permit for a 515-mile pipeline though Alabama, Georgia and Florida.
$1 billion set for Permian refinery
Meridian Energy Group of Irvine, Calif., is partnering with Winkler Cos. of Houston to develop a $1 billion refinery in West Texas. The refinery would process about 60,000 barrels a day of Permian crude and distribute the gasoline and diesel locally. The permit application for the refinery is expected to be filed with the Texas Commission on Environmental Quality over the next four months. In the meantime, two possible sites for the 400-acre facility have been identified off State Highway 18 north of Kermit.
Break-even point for profit falls
About 40 percent of projects in U.S. shale plays can profit with crude prices at $45 a barrel, according to a new report. In an analysis of the best performers in each shale region, Norwegian energy research firm Rystad highlighted Chevron, Occidental Petroleum, Apache Corp., Pioneer Natural Resources, Concho Resources and Devon Energy as the largest, most successful players in the booming Pemian Basin in West Texas and New Mexico. Most of the companies cited by Rystad can turn a profit even with oil prices in the range of $30 a barrel to $45.
Joint venture will move gas to Mexico
San Antonio pipeline operator Howard Energy Partners and NextEra Energy Partners of Florida have entered into a joint venture to move more natural gas from the Eagle Ford Shale of South Texas to the Agua Dulce hub and Mexico. The two companies own separate natural gas pipeline networks in South Texas but the joint venture will them to market and book capacity on those networks together. Under the joint venture, the companies have also pledged to explore new pipeline opportunities in Webb, Duval, Zapata, Dimmit, La Salle, McMullen, Live Oak and Jim Wells counties.
Tellurian LNG gets another backer
A major Indian LNG buyer is throwing its weight behind a $15 billion LNG terminal proposed by the Houston company Tellurian. Petronet LNG Ltd. India s eyeing an investment in Tellurian's Driftwood project on the Gulf Coast after signing a memorandum of understanding with the Houston company, Tellurian said. Petronet LNG has set up India's first LNG receiving and re-gasification terminal at Dahej, in the Indian state of Gujarat , and another terminal at Kochi in the state of Kerala.
Erin Douglas, James Osborne, Sergio Chapa and Marissa Luck contributed.