Page 10 - FSUOGM Week 31

FSUOGM NRG FSUOGM

The pair have a combined annual production of COVID-19. However, there have also been
capacity of 7.7 bcm of gas and 1mn tonnes of warnings that Chinese buyers of the super-
condensate. The company intends to sell the chilled fuel will likely seek lower prices. This is
gas to local industrial customers but will export not surprising, given the oversupplied market,
most of the condensate. but will not be welcomed by exporters seeking to
Meanwhile, Ukraine’s biggest gas producer recover from the drop in LNG demand.
Ukrgasvydobuvannya (UGV) has secured a One area where LNG has the potential to
€51.9mn ($60.9mn) loan from the European expand is its use as a marine fuel. Last week, Gaz-
Bank for Reconstruction and Development prom Neft became the first Russian company to
(EBRD). The funds will be used to procure more join the Society for Gas Marine Fuel (SGMF), a
workover rigs to boost output at UGV’s older group that seeks to promote the fuelling of ships
fields and to increase waste-heat recovery at a with LNG.
key deposit in Ukraine’s northwest. The company has added motivation to do so,
UGV will need all the help it can get to deliver as the decision by Russia and its OPEC+ allies
on ambitious growth targets. It was already to restrict oil supply will prevent Gazprom Neft
apparent long before the COVID-19 crisis began from advancing new oil projects. Gazprom Neft’s
that the company would fall far short of its goal parent company, Gazprom, also wants to move
of producing 20 bcm of gas this year. The col- into LNG bunkering. Other companies around
lapse in European gas prices this year means its the world may follow, as they seek areas where
production is now on track for a sharp decline. there is scope for demand to grow.

If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
the former Soviet Union’s oil and gas sector then please the global LNG sector then please click here for
click here for NewsBase’s FSU Monitor . NewsBase’s GLNG Monitor .

Searching for LNG demand growth Latin America: Another look at Suriname
US LNG exports are being forecast to rise in This week’s issue of LatAmOil takes another look
August, which would mark a rebound after at Suriname, which recently reported a new oil
several months of declines amid cargo cancella- find at Block 58 in the offshore zone.
tions spurred by the impact of the coronavirus Staatsolie, the national oil company (NOC),
(COVID-19) pandemic on demand. Over 100 has shown strong interest in joining Apache
US LNG cargoes are estimated to have been can- (US) and Total (France) in the development
celled so far this year, and further cancellations of Block 58. The NOC does have the right to
are expected, albeit coming at a slower pace. acquire a stake of up to 20% in the project, but it
And even during this period of low demand, would have to pay as much as $1.0-1.5bn to do
some LNG markets are growing rapidly. For so. According to acting general manager Agnes
example, new data released by Turkey’s energy Moensi-Sokowikromo, Staatsolie may have
regulator last week showed that LNG out- difficulty raising such a large sum at this time,
stripped the country’s gas pipeline imports in especially since Suriname’s credit ratings were
May and that LNG shipments that month had recently downgraded.
surged by 205.5%. Meanwhile, Malaysia’s Petronas has arranged
Chinese LNG demand is also expected to to use the Maersk Developer, a rig owned by
be strong over the remainder of the year, as the Maersk Drilling (Denmark), for a drilling pro-
country leads efforts to recover from the impact ject at Block 52 offshore Suriname.

P10 www. NEWSBASE .com Week 31 05•August•2020