This week, the European Commission has signed some legislative proposals to decarbonise the EU gas market by facilitating the uptake of renewable and low carbon gases, including hydrogen, and to ensure energy security for all citizens in Europe. The Commission is also following up on the EU Methane Strategy and its international commitments with proposals to reduce methane emissions in the energy sector in Europe and in our global supply chain.

The European Union needs to decarbonise the energy it consumes to reduce greenhouse gas emissions by at least 55% by 2030 and become climate-neutral by 2050, and these proposals will help to deliver that goal. According to Commissioner for Energy, Kadri Simson: “We are creating the conditions for the green transition in our gas sector, boosting the use of clean gases. A key element of this transition is establishing a competitive hydrogen market with dedicated infrastructure. We want Europe to lead the way and be the first in the world to lay down the market rules for this important source of energy and storage. We are also proposing strict rules on methane emissions from gas, oil and coal, to reduce emissions in these sectors by 80% by 2030 and to trigger action on methane outside the EU. Our proposals also strengthen the security of gas supply and enhance solidarity between Member States, to counteract price shocks and make our energy system more resilient. As requested by Member States, we improve the EU’s gas storage coordination and create the option for voluntary joint purchase of gas reserves”.

Enagás (Spain), Snam (Italy) and Grtgaz (France) have decided to explore opportunities for collaboration in the hydrogen sector, which will be crucial in the energy transition and have signed an agreement to launch joint investment initiatives aimed at boosting the clean hydrogen market.

This new initiative underlines the crucial role that European gas Tsos can play in the development of the European hydrogen ecosystem, sharing their experiences in the management of strategic infrastructures. As a first joint action, Enagás, Snam and Grtgaz will each invest € 33 million in the Clean H2 Infra Fund, with an anchor role, for a total of approximately € 100 million. Clean H2 Infra Fund is an impact fund managed by Hy24, a joint venture between Ardian and Fivet Hydrogen, which aims to support the development of clean hydrogen infrastructure with a budget of 1,500-1,800
million euros, in partnership with industrial and financial investors. It is the largest global investment platform in clean hydrogen infrastructure. Hy24 combines Ardian’s experience in infrastructure management and asset management and Fivet’s know-how in the hydrogen value chain, along with the role and experience of the three Tsos in energy grid management and hydrogen technologies.

By investing in the Clean H2 Infra Fund, the three companies aim to promote the clean hydrogen industry with a positive impact on the use and development of transmission networks.

Chinese oil&gas giant CNOOC Limited has a huge discovery on the Kenli 10-2 oilfield in Bohai Bay (China). According to CNOOC, the main oil-bearing formation of Kenli 10-2 oilfield is in the lower member of Neogene Minghuazhen Formation and the oil properties are conventional heavy oil. The discovery well Kenli 10-2-4 was drilled and completed at a depth of nearly 5,000 feet. The appraisal well was tested to produce approximately 569 barrels of oil per day. “The successful discovery of the Kenli 10-2 oil field marked the breakthrough in the discovery of lithological oilfield with reserve of 100 million tons in the shallow depression zone of the Bohai oilfields, demonstrated the broad prospects for exploration of lithological structures in the Bohai, and has great significance as a guide for exploration in similar basins,” General Manager of Exploration Department of CNOOC Xu Changgui said.

Energy group Saipem has signed an agreement with Saudi Aramco to examine setting up a company to do engineering, procurement and construction work in Saudi Arabia. The project is part of the Saudi Aramco’s industrial investment program (Namaat Aramco) for the economic growth and diversification in the country. The Program includes 22 memoranda of understanding in sectors such as energy and the chemicals supply chain with a series of companies including: Solvay (development of advanced non-metallic materials and the localization of the complex value chain), DHL Supply Chain Company (to assess the feasibility of setting up an industrial supply and logistics center serving the Kingdom and the Middle East), Veolia (to ascertain the commercial viability of creating a worldclass integrated waste management company, along with a strategic entity in the Kingdom), Air Liquide, Halliburton and the Public Investment Fund, Baker Hughes and the Public Investment Fund, Lind and Schlumberger and the Public Investment Fund – 3 separate, non-binding MOUs to evaluate CCS opportunities and potential partnerships. In a statement on Tuesday Saipem said any new company, set up with local partners, would work in energy and infrastructure with the aim of creating an “EPC national champion”.

The fast drop of oil prices during the past week due to coronavirus has caused a remarkable alarm among OPEC members who are evaluating the option to extend the cut of the production until June.

At the time being, OPEC is closely watching the evolution of the market together with the expansion of the virus, and the first signs do indicate that the epidemic will be less violent than the SARS exploded in 2003.

However, it will be necessary to wait some more weeks to have a better picture of the situation.

ENI, together with Eni New Energy has officially inaugurated a new photovoltaic plant in Porto Torres with a capacity of 31 MW. The new plant was built on the Eni Rewind’s areas. The annual output will be of 50 GWh, 70% of which will be self-consumed by the utilities connected to the Versalis net.

This is the second plant built by Eni in Sardinia. The project aims to the requalification of industrial areas for the realisation of renewable energy production plants. This according to the company’s strategy for the energy transition.