In June, a fuel shortage looms in Ghana, FINNAIR and Gevo enter into a sustainable aviation fuel sales agreement, Chevron Eyes a $2.5B investment, and Europe may shift back to coal as Russia turns down gas flows. Continue reading our oil and gas news roundup to learn more about what’s happening in the industry this month.
Ghana Fuel Shortage Looms
Ghana faces a looming fuel shortage as the central bank rations dollars after oil prices surged following Russia’s invasion of Ukraine.
The monthly fuel import bill for the West African nation jumped to $450 million in May, from $250 million in January. The central bank is only offering about $100 million a month at its foreign exchange auctions, and licensed bulk distributors can no longer plug the shortfall.
African governments face stark choices as Western sanctions on Russia disrupt global energy markets and prices soar. Though Africa is home to several major producers of crude oil, the continent has limited capacity to turn that into fuel for cars, trucks, and planes.
For more on this topic read the whole article here.
FINNAIR and Gevo enter into a Sustainable Aviation Fuel Sales Agreement
This new agreement outlines the details for the purchase of 7 million gallons per year of sustainable aviation fuel for five years from Gevo’s commercial operations. Deliveries of the SAF by Gevo are expected to begin in 2027. The expected value for the agreement is around $192 million over the five-year period, inclusive of the value from environmental benefits for Gevo.
Click here for all the details on this new agreement.
Chevron Eyes a $2.5B Investment in Low-Carbon Hydrogen
Chevron Corp. plans to spend about $2.5 billion building up its hydrogen business as the oil major accelerates investment in low-carbon technologies. Chevron will develop both green and blue hydrogen. The former is made with renewable energy, while the latter is created from natural gas equipped with technology to capture emissions.
The American energy giant announced last fall it was allocating $10 billion toward developing renewable fuels, hydrogen, and carbon capture through 2028, but it didn’t specify how that money would be split among various technologies.
Read the full article at www.rigzone.com.
Europe may Shift back to Coal as Russia Turns Down Gas Flows
Europe’s biggest Russian gas buyers are racing to find alternative fuel supplies and could burn more coal to cope with reduced gas flows from Russia that threaten an energy crisis in winter if stores are not refilled. Germany, Italy, Austria and the Netherlands have all signaled that coal-fired power plants could help see the continent through a crisis that has sent gas prices surging.
The Dutch government said it would remove a cap on production at coal-fired energy plants and will activate the first phase of an energy crisis plan. Denmark and Germany have initiated the first steps of an emergency gas plan. Italy moved closer to declaring a state of alert on energy after oil company Eni was told it would receive only part of its request for gas supplies.
Click here to read more on this shift from gas to coal.
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