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In light of today’s announcements.
EU budget approval.
No more overseas oil and gas subsidies.
And the big one tomorrow, Brexit.
Based on fellow posters comments regarding Brexit and how it could come into play for PRD, I decided to do a bit of digging and glad I did.
The first link is with regard to :
Oxford Institute for Energy Studies Submission
Inquiry into the implications of Brexit for energy security in the UK by the EU Energy and Environment Sub-Committee of the House of Lords.
Interesting document especially page 8. heading number 5.as below.
5) Another solution would be to review the Irish gas market by taking into account Directive 2014/94/EU on the deployment of alternative fuels infrastructure. This states that LNG refuelling stations are to be installed in all 139 maritime and inland ports on the trans-European Transport (TEN-T) Core Network by 2025 and 2030 respectively. For Ireland, the relevant ports are Cork, Dublin and Limerick20. To deal with both issues (Brexit and Directive 2014/94/EU), Ireland could go for a cheaper FSRU instead of the usual onshore regas. In addition, an Irish utility could sign a deal with an EU company providing LNG at the French or Spanish terminals to access reloaded LNG while benefiting from the subsidies available under the EU trans-European network of “Motorways of the Sea”.
Full article at https://www.oxfordenergy.org/wpcms/wp-content/uploads/2017/10/Submission-to-the-Inquiry-into-the-implications-of-Brexit-for-energy-security-in-the-UK.pdf
Then had a read of the EU Directive 2014/94/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 22 October 2014 on the deployment of alternative fuels infrastructure.
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0094&from=EN
IMO if the Directive is followed, I believe the Irish government will have no option but to go down the path of the FSRU solution and very possibly Moroccan gas could be on its way to Ireland.
I didn’t get it at first when Paul mentioned FRSU for Morocco but now if Mou1 ++++ is successful it does make perfect sense.
And finally is this one of the partners we have signed an NDA with, their credentials could encompass pretty much all of our projects and I for one would be very pleased if that were the case.
https://www.kslaw.com/attachments/000/006/010/original/LNG_in_Europe_2018_-_An_Overview_of_LNG_Import_Terminals_in_Europe.pdf?1530031152
GLA
Wacky.
Hi guys
Thanks for your comments.
The only estimate I can refer to was what was published in the Business post about six weeks ago which was €2.6 Billion per year or €26 Billion over ten years of the life of the project.
You can read the full article if you read back through my posts.
GLA
Wacky
Hi all,
Not for me to shout about things, but I think some of us may be missing the point with the LOPG tie up.
The PVR presentation does show offshore vessel’s etc (@16mins in)
https://www.proactiveinvestors.co.uk/companies/news/932354/providence-resources-ceo-alan-scott-linn-presents-at-the-proactive-one2one-virtual-forum-932354.html
The vessels proposed are FSOs (floating storage offshore) (not FSRUs) and you could in theory through new sections of pipeline connect into the remaining kinsale infrastructure, but what then ?
Where is the gas going, it can’t go to the onshore inch terminal because it’s decommissioned and in the planning permission it has to go back to a green field site.
This is where we step in.
The gas is pumped to our offshore FSRU terminal where the gas is processed and from there onwards to the Irish gas network and beyond.
We all know the Irish government will not approve any gas terminals wether onshore LNG or another onshore corrib processing plant.
So in our proposal if we get the go ahead, not only PVR/lOPG but any other company who wants to sell LNG on the Irish market will have to use our infrastructure to do so. It’s as easy as that.
We can have our cake and eat it !
Big things are coming.
AIMHO of course.
GLA
Wacky
Hi JimmyJesus,
The or one of the main reasons why Texaco abandoned their CO2 project in Trinidad in the late 1980s/90s was due to CO2 leaking back into the atmosphere on the Forrest reserve wells, they also cited maintenance reasons, but a quick google search will throw up a few pointers.
For PRD to come this far with no serious issues is testament to our bod and their knowledge.
Texaco couldn’t do it, but we can says it all really.
GLA
Wacky
Another article in the business post regarding the barryroe project.
Surprise Suprise Equinor get a big mention as possible funders , they do after all hold 50% of Corrib.
I’m still in the thinking that the barryroe project will get the go ahead as it’s a world class field and we PRD will supply the “infrastructure” to take the gas to market.
Watch this space for our next announcement.
Providence Resources’ partners in the development of the Barryroe oil and gas field plan to raise between €60 million and €70 million through a bond issuance in the coming months, the Business Post understands.
Providence last week announced it had reached a farm-out deal for the Barryroe field with a consortium led by Norway’s SpotOn Energy. The Irish exploration company expects it could begin making dividend payments within three years.
The agreement, first reported by the Business Post, will result in SpotOn and its consortium funding 100 per cent of the early development programme (EDP) and the full field development.
Funding will come from the deferral of service fees on the part of the consortium partners, cheap Norwegian export credit and the issuance of a Nordic bond.
It is understood that the bond will be worth in the region of €60 million to €70 million and that a number of parties have expressed an interest in funding it.
Two sources identified Equinor, the Norwegian state-owned multinational formerly known as Statoil, and Askator, a Norwegian oil services investment company, as having a potential interest in the bond.
An Equinor spokesman said: “We are not aware of any involvement by Equinor in this project or funding of bonds related to it”.
An Askator spokesman said it had a connection with SpotOn through AGR, a well management and consultancy company in its portfolio, which is part of the Barryroe consortium. Askator had “no role in the fundraising of SpotOn”, he added.
Providence declined to comment when contacted on Friday while SpotOn did not respond to a request for comment.
On Wednesday, Alan Linn, the chief executive at Providence, said the plan was to go to the markets for the bond in early 2021 and added that further details would be “available pretty soon”.
“I think once the bond is in place people have confidence in a lot of the rest of it,” Linn said. He added that discussions on the bond had all been “very positive” and he expected strong interest in what he said would be an “attractive bond”.
It’s all getting exciting.
AIMHO of course.
GLA
Wacky
Is that how you greet fellow investors rocklawn, if you did a little bit of research you might enlighten yourself.
Very shortsighted if I may say.
GLA
Wacky
Hi all,
I’m very much invested in Predator oil and gas and have been, just after missing the ipo a few years ago.
(Not pushing Predator by any means)
I have stated on the PRD board IMO that the future of both companies could well be moving forward in the same direction and was the factor that helped me decide to invest in lansdowne.
The decommissioned kinsale field, PRD involvement in Trinidad with enhanced oil recovery coupled with carbon sequestration and our FSRU solution for Ireland when the spot on consortium is looking to lease floating platforms seems to me as a bit of a no brainier. ( Paul Griffiths, CEO of PRD is also Irish and has a lot of connections in the industry).
For anyone who has not heard of what predator are doing, have a little read of the latest presentation at
https://www.predatoroilandgas.com/investors/presentations/
Or the business post Ireland has a good write up of the FSRU proposal.
https://www.businesspost.ie/energy/new-firms-lng-plans-would-make-ireland-major-exporter-of-gas-95728294
Both companies seem to be playing from the same hymn sheet and I would like to suggest that there are bigger plans in store for all concerned.
GLA
Wacky
Hi Nic
Yes you are correct, no firm indication from the consortium on how the cost savings per barrel would be achieved, my immediate thought was our FSRU solution.
No costly pipeline to install and maintain with all the extra infrastructure to go with it, but can you also imagine trying to get the planning permission from the Irish government to install as such.
It just won’t be allowed in today’s political arena.
However the use of existing infrastructure from the decommissioned kinsale field is an option but if you were to attempt to connect to it by conventional means you would still require a pipeline or pipelines from the numerous proposed wells to the existing kinsale structures from the new barryroe fields.
An FSRU solution would eliminate that problem and ergo massive savings in costs and time.
Spoton have said first gas deliveries in 18 months !
You also mentioned a very valid point on why wouldn’t they have their own FSRU, I have no answer, but I think if they were going down that road they would have announced the plan in the original farm out deal with the Chinese.
In commercial terms we could sign a contract with them for the supply of future gas supplies as we could also sign numerous contracts with other suppliers to receive and distribute indigenous gas.
My belief, this is the direction that PRD are focusing on. We are not becoming a producer of oil and gas but merely the technology in supplying the product.
The next few weeks, I will be glued to news desks !!
AIMHO of course.
GLA
Wacky
Hi Nic
Hope yr well.
Definitely exciting times, I couldn’t resist a little dabble in lansdowne yesterday, (no not ramping) I must admit to not taking to much notice of their program until it dawned on me that they could be potential participants in the Irish affair instead of competitors, due to the wording of a few paragraphs in the articles that I posted, for example:
“Providence added that the consortium would be involved in the development planning process from day one and expects to deliver a lower cost per barrel development and operating costs versus traditional offshore field developments”.
That statement would suggest an FRSU solution instead of a very costly in more than just monetary terms to shore pipeline. (Environment also).
And
“We will be encouraging the consortium members to identify additional investment opportunities within Ireland where their expertise can be deployed in support of the development of a carbon-neutral economy.
I read into that carbon capture storage which is targeted to make a big reduction in climate Co2 figures in which we PRD, have made progress where others including majors have struggled.
But who knows,
however if we can achieve the same amount of shares traded yesterday as on lansdowne at @70 million, Where on earth will our SP arrive at ?
Happy days
GLA
Wacky
Morning all,
Apologies for bleating on about lansdowne/providence.
But with regard to the two articles below by offshore energy regarding the barryroe project, (published 3 & 4 months ago respectively).
May I suggest the narrative from their consortium and our BOD are being played from the same drum.
Coincidence ?
Ducks ? Quack Quack.
https://www.offshore-energy.biz/spoton-energy-takes-next-step-in-barryroe-farm-in/
https://www.offshore-energy.biz/barryroe-consortium-spots-filled-by-top-service-providers/
AIMHO of course.
GLA
Wacky
Today in the business post. Very interesting.
Providence Resources has finalised a deal to farm out a stake in its Barryroe oil and gas field off the coast of Cork to Norwegian consortium SpotOn Energy.
The deal was initially due to be completed by the end of October but Providence announced last month that it had extended the period of exclusivity with SpotOn to November 30.
A deal has now been finalised and is due to be announced in the coming days.
In July Providence announced the composition of the farm-out group that SpotOn, its partner in the farm-out process, had put together. Members include Schlumberger, the oilfield services company, Aker, a Norwegian engineering company, Keppel, Aibel, AGR and Maresk Drilling.
Stale Fjelland, who spent 12 years working at Schlumberger, is the chief executive at SpotOn.
The project will be financed in part by Norwegian export credit while Pareto Bank is also understood to be involved.
Davy, the stockbroker, has previously said completion of the deal would mark a “material turning point” for the group.
Announcing the extension of the exclusivity period last month, Alan Linn, the Providence Resources chief executive, said the exploration company had made “excellent progress” in agreeing the terms of the farm-out deal.
“The farm-out is structured to ensure that the development is fully funded and includes an Early Development Scheme work programme for the Barryroe oil and gas field.
“It is important that the partnership agreements and work programme are comprehensively documented and this process requires some additional time to complete,” he said.
Linn was appointed chief executive of Providence Resources in January following the departure of Tony O’Reilly Jr. The oil company has come through a difficult restructuring following the collapse of a prospective deal to develop Barryroe with Chinese investors Apec last year. Providence has interests in several other exploration licences off the west coast of Ireland.
Linn told the Business Post earlier this year that he was also interested in taking over the pipeline network at the nearby decommissioning Kinsale gas field as he suspected Barryroe is a much bigger gas prospect than previously thought.
Leo Varadkar, then taoiseach, announced in September 2019 that all future licences for oil exploration would be banned, while licences for gas exploration would continue. The government subsequently confirmed that existing licences, such as Barryroe, would not be affected by the change in regulation.
In the programme for government, the coalition committed to ending the issuance of new licences for the exploration and extraction of gas on “the same basis as the recent decision in relation to oil exploration and extraction”.
Implications for our good selves ?
GLA
Wacky
The CRU said climate action and the transition to a low-carbon future was “at the heart of CRU’s strategy and its policy decision process”.
A spokesman for the regulator said it did not “perceive barriers within its current mandate” to deliver on the state’s climate ambition.
Yet he also said the CRU was open to “clarity and rationalisation” of the current legislative framework and would “continue to work with all stakeholders as the role of regulation continues to evolve”.
“The transition to a sustainable energy future will require fundamental change in the way we source, transport and use energy,” the spokesman said.
“The CRU will work to protect the public interest, as we ensure a sustainable and secure transition, with transparent, reasonable and competitive prices for all consumers of energy, and customer protection throughout.”
A spokeswoman for Friends of the Earth said that although the utilities had rejected the criticism, they had provided no evidence to show how their expanded infrastructure would be decarbonised using existing and practical technologies. In the absence of this, their expansion plans could only be seen as a high risk for “carbon lock-in”.
“If their policies and strategies are indeed in line with international and national commitments on climate action, it follows that they should have no objection to an amendment of their mandates to align with those commitments,” the spokeswoman said.
“The ESB and Gas Networks Ireland may point to strides they have made to decarbonise, however to do this while facilitating an expansion in fossil gas infrastructure contradicts climate science. Alignment of their legal mandates with their decarbonisation commitments is surely a sensible step.”
Slowly slowly catchy monkey.
GLA
Wacky
An article from the business post, although its a couple of months old, reading between the lines IMO backs up what Paul has said about our proposal for Ireland par say.
The ESB, Gas Networks Ireland and the Commission for Regulation of Utilities (CRU) have all rejected a report which claims they are undermining Irish and international climate targets.
The two energy providers and the regulator were reacting to a report from Friends of the Earth, the environmental charity, which argued the public bodies were complicit in expanding fossil-fuel infrastructure and therefore “locking in” higher carbon emissions.
The new research showed how the public bodies’ statutory mandates did not require compliance with national and international climate law. Friends of the Earth argued that the utilities‘ strategic plans were not fully aligned with the UN Paris Agreement obligations and did not properly address principles of climate justice or sustainable development.
The report pointed out how ESB and Gas Networks Ireland investment plans would expand fossil-fuel infrastructure, while the state would continue to subsidise fossil gas investment and usage.
“These plans are likely to ‘lock-in’ carbon intensive high emissions and undermine investment in energy conservation and renewable generation,” the report said.
Speaking to the Business Post, all three public bodies rejected claims that they were undermining climate targets.
Gas Networks Ireland said it was “committed to supporting the decarbonisation” of Ireland’s energy system while maintaining “a secure and competitive energy supply”.
“Our strategy is in line with national and European energy policy, which acknowledges the importance of the gas network and renewable gases, such as biomethane and hydrogen, in meeting climate goals,” a spokesman said.
“Using proven technologies and existing national infrastructure, we are developing innovative solutions that will support the growth of intermittent renewable electricity and reduce emissions in difficult-to-decarbonise sectors of the economy.”
The ESB said it had committed to an “ambitious 50 per cent carbon reduction target by 2030” and was investing in renewable generation to help meet the Paris Agreement targets.
It said its investment in new gas plants were “peaking plants” rather than “baseload gas plants”. These were designed to support increased renewable penetration by running only when renewables were low or not available, it said.
The ESB also rejected a claim that it was “highly dependent on the development of carbon capture and storage” to help mitigate the carbon impact of its fossil infrastructure.
“Our 2017 publication ‘Ireland’s Low Carbon Transition: Dimensions of a Solution’ provided a broad analysis of options to decarbonise the entire energy system. Carbon capture and storage (CCS) is one of these options, however ESB has not committed to CCS,” a spokesman said.
continued.
Hi Nic,
Enjoyed your post.
Did you notice how many of the companies involved in the advert for a better term, were participants in the Cerm Project in Trinidad.
Just wondering how long it will be before Predator is announced in top level news as a driving factor in Ireland’s transition to a greener gas full circle CO2 economy.
I think the play here is genius, if you consider the past problems the majors had with kinsale and more recently Corrib with the protests against land based terminals etc, who are the environmentalists going to shout at ?, little PRD who has history and proof of making co2 sequestration possible, has an Irish CEO, is on their side and actually “we are keeping the big boys in check because we have the contract with the Irish government and they don’t” (ahem for the time being).
Great things are happening IMO and I’m starting to feel like Santa is about to drop off some prezzies.
GLA
Wacky
“To address the electricity supply constraint from the Eirgrid network, a new generation of data centres is being developed with on site gas combustion supplied by the Gas Networks Ireland (GNI) pipeline system.
“This is combined with unrealistic projections on the capacity of sustainably produced ‘carbon neutral’ bio methane to dilute into the fossil gas supply system and reduce GHG emissions.”
Last year, Eirgrid warned that the growth in demand for electricity required to power data centres over the next five years would be “challenging to deliver”.
Tom Gallery, Eirgrid’s head of access and planning, raised the question of where the power would come from as it would require significant amounts of new infrastructure.
He compared the electricity needs of new data centres with the total demand growth between 1930 and 1980, including the entire period of electrification.
The unprecedented growth in energy-hungry centres means they are expected to make up 29 per cent of Ireland’s entire electricity use by 2025. A recent generation capacity statement from Eirgrid warned that the increasing number of data centres and the closure of Moneypoint power station could mean there is not enough electricity to meet demand after 2025, although Eirgrid is acting to rectify this by inviting new electricity generators to connect to the grid.
Hopefully PRD have the answer in LNG generation for greener power.
GLA
Wacky
Article in the Business post about Irish Data Centers having to generate their own power due to supply issues.
All new data centres planned for the Dublin region will have to build their own onsite power generation or risk being cut off due to electricity supply issues, the Business Post has learned.
It comes amid ongoing concerns about the pressure the increasing number of data centres is putting on the national power supply.
Power constraint issues in the wider Dublin region means that Eirgrid, the transmission operator, will only be able to give new data centres a stable connection to the grid on the condition that they build their own onsite power generation for times when there is not enough power available. In time, Eirgrid hopes the power supply issues in Dublin will be rectified, allowing new data centres to run themselves exclusively on grid supplied electricity.
The onsite generators are most likely to be gas turbines, and according to Eirgrid they need to be “capable of continuous running for extended periods” and cannot be “limited by fuel reserves, environmental licensing or regulatory obligations”.
“Generation must be proximate to the data centre, owned by the customer and must be energised and operational prior to firm capacity being available to the associated data centre,” Eirgrid said in a report published at the end of the summer.
A spokesman for Eirgrid told the Business Post that the long-term electricity demand forecast in Ireland continued to be heavily influenced by the expected growth of large energy users, primarily data centres.
“These need a lot of power and can require the same amount of energy as a large town. A significant proportion of this extra load is contracted to materialise in the Dublin region,” the spokesman said.
Through power generation capacity auctions and key infrastructural projects, Eirgrid will work to rectify the power constraints now affecting Dublin and the data centres trying to connect to the grid.
The news comes as Crag Digital became the first data centre owner to be issued an industrial emissions licence for its data centre in Clondalkin. The licence is required of any energy generators that produce high volumes of carbon emissions. The data centre will run onsite gas generators, which Crag Digital says will be partly fuelled by renewable bio methane. There are currently very limited supplies of bio methane being injected into the Irish gas grid.
Ian Lumley, head of advocacy with environmental NGO An Taisce, said the growth of data centres in Ireland was posing serious energy and climate problems.
“The continued international promotion of Ireland for data centre development is not addressing the impact on energy and climate policy, in increasing fossil fuel demand and diluting the percentage of renewable capacity on the electricity grid,” he said.
Continued.
Can’t buy anything at all not even 100 shares on IG or HL
Something happening ??
GLA
Wacky
Hi Nic
I did see Joe Biden reply to a reporter when asked a question , he said “ who do you work for” “The BBC” the reporter replied, to which Joe said “I’m Irish” and walked away with a grin on his face.
Things are definitely hotting up and has anyone else noticed the amount of publications in the press regarding energy change since the election,
anti fracking played a big part in Bidens campaign, not that he will be President for very long IMO.
Step up Kamala Harris after the 25th amendment has been invoked on JB through dementia and then full speed ahead with the planned energy switch, which can only be good for us early investors in PRD.
Could I have also noticed a certain pattern in of JFKs assassination and hello Lyndon Johnson “welcome to the whitehouse” when major change was or is required.
It seems to me that the term rinse and repeat can be placed alongside global politics and not just restricted to certain chat boards.
However in this instance hopefully it will lead to change in a positive way through CCS, greener energy, a less polluted planet and a future for our descendants.
AIMHO of course.
GLA
Wacky
Nice find Proselenes, possibly things all starting to tie up now.
Interesting article about Morocco, mentions strong co-operation with the EUs green deal, which we all know is natural gas as the unequivocal transition fuel.
https://apple.news/A9IBS4zK2Tb2YEdkrO9UaUQ
(Hope the link works)
GLA
Wacky
Totally agree PT
Good find.
I wonder what the financial penalties will be from the EU for failing to keep to the program/agreement.
GLA
Wacky