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LNG giant pushes ahead of US LNG developers. Reuters reported on June
Even as US LNG exports decline, the backers of 1 that the amount of pipeline gas flowing to US
the Golden Pass LNG project, which is under LNG export terminals was on track to fall to a
construction in Texas, have requested author- nine-month low of 4.3bn cubic feet (122mn
isation to expand the capacity of the terminal. cubic metres) per day as cargo cancellations kick
This is perhaps not surprising, considering the in. This is anticipated to hit Cheniere Energy, the
project is majority-owned by Qatar Petroleum US’ leading LNG exporter, particularly hard.
(QP), which is also aggressively pursuing the
expansion of its domestic LNG export capacity. If you’d like to read more about the key events shaping
QP owns a 70% stake in Golden Pass LNG, while the global LNG sector then please click here for
ExxonMobil holds the remaining 30%. NewsBase’s GLNG Monitor.
The partners are seeking permission to boost
the capacity of Golden Pass LNG to 18.1mn Middle Eastern moves
tonnes per year, from 15.6mn tpy previously. All eyes are focused on OPEC’s next move but
They say the increase “does not involve any Iran has found a way to tweak the US’ nose.
equipment changes or environmental permit This week’s scheduled meeting of OPEC+
adjustments”, and would be achieved via “pro- to consider an extension of the oil production
duction efficiencies”. cuts agreed for May and June will be closely
Qatar’s push on both domestic and overseas watched by the industry. The past two months
LNG development comes as other planned have seen unprecedented volatility and, leading
liquefaction projects in North America and up to this week, oil prices have fluctuated wildly;
elsewhere appear to be increasingly in doubt. it is reasonably clear that much hangs on OPEC’s
A handful of North American developers have meeting.
already postponed final investment decisions Turkey’s moves in various areas of the Medi-
(FIDs) from this year until 2021, but analysts are terranean have a familiar ring and the latest is its
now warning that it could be even longer before plan to launch oil exploration in East Med under
any more liquefaction capacity is sanctioned. a pact with Libyan government.
A number of pre-FID projects in both the US This could be considered both a daring and
and Canada would be greenfield developments, provocative initiative and it is likely that much
adding to their construction cost at a time when more will be heard on this and other moves in
LNG prices remain low and securing financing the coming months.
is increasingly challenging. The convergence of There is mixed news from the Emirates:
LNG prices globally is also throwing the eco- ADNOC was obliged to cut July crude nomi-
nomics of shipping the fuel over long distances nations to meet the requirements of the OPEC+
into question. pact but there are signs of progress on bids for
Current trends are compounding the worries ADNOC’s gas pipelines.

Week 22 04•June•2020 www. NEWSBASE .com P9