Page 9 - FSUOGM Week 43

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with some of its neighbours through its support Rosneft’s rising ambitions
for Yemen’s Houthi rebels. Rosneft has scaled up plans for its already ambi-
tious Vostok Oil project in the Russian Arctic.
If you’d like to read more about the key events shaping Vostok Oil was originally conceived as an
the downstream sector of Africa and the Middle East, oil-only venture. Rosneft earlier predicted it
then please click here for NewsBase’s DMEA Monitor. could supply up to 500,000 barrels per day of oil
to global markets by 2024, rising to 1mn bpd in
French govt. blocks $7bn US LNG deal 2027 and 2.3mn bpd by 2030. This crude would
France’s Engie has reportedly delayed signing all be shipped via tankers along the Northern Sea
a $7bn contract to buy US LNG, after pressure Route (NSR) from a new terminal on the shore of
from the French government to seek cleaner the Taymyr Peninsula.
supplies instead. But the US government also Rosneft now wants to add LNG and even coal
Secretary of State plans to intervene to convince French officials to exports to the project. In addition to crude, it is
Mike Pompeo let the deal go ahead. looking into options for shipping up to 35-50mn
France’s government, a minority shareholder tonnes per year of LNG and 50mn tpy of coal
is leading a in Engie, stepped in last month to prevent the from the terminal it intends to build in Sever Bay.
company from agreeing a 20-year contract It is unclear whether Rosneft would produce the
diplomatic push with US LNG developer NextDecade, Polit- coal itself or export third-party supplies.
to convince ico, Bloomberg and various other outlets have Rosneft is also set to obtain two gas fields
reported. According to Politico, the authorities’ for Vostok Oil, after Russia’s government con-
France to change main concern is the life cycle of the methane firmed that the company would be the only
content of US gas produced in West Texas and one authorised to participate in a tender for
its mind. New Mexico. the Deryabinskoye and Kazantsevskoye fields.
The gas was to come from NextDecade’s These resources will underpin its LNG produc-
planned Rio Grande terminal in Texas. Nex- tion plans.
tDecade was hoping to take a final investment Meanwhile, Russia’s Tatneft is weighing up
decision (FID) on the first of the 27mn tonne per its options after losing billions of dollars in tax
year (tpy) project’s several phases this year, but relief in the country’s latest overhaul of oil indus-
pushed the move back until 2021. It is looking to try taxation. The company needs to update its
finalise contracts for at least 11mn tpy of offtake investment programme, and is yet to decide
before giving the venture the green light. whether to move some of the highly viscous and
The US government intends to get involved, nearly depleted fields affected by the changes
according to the news agency, with Secretary of to Russia’s excess profit tax (EPT) system. Until
State Mike Pompeo leading a diplomatic push to Tatneft decides how to response to the loss of
convince France to change its mind. tax breaks, it will not invest in any new heavy
Meanwhile, Spain’s Repsol has become oil-containing fields.
the latest in a number of European refiners to
announce plans to convert to biofuel produc- If you’d like to read more about the key events shaping
tion. It plans to build an advanced biofuels plant the former Soviet Union’s oil and gas sector then please
at its 100,000 barrel per day (bpd) refinery in click here for NewsBase’s FSU Monitor .
Cartagena. Steep declines in demand caused by
coronavirus (COVID-19) have left many refin- US, Qatar push for LNG dominance
eries in Europe facing closure. But closing refin- Various US LNG developers and their support-
eries is expensive, requiring the dismantling of ers – including the federal government – con-
heavy equipment and pipelines along with land tinue to push forward with plans that will help to
remediation. Converting sites to biofuel offers an solidify the country’s dominance in the increas-
alternative option. ingly competitive global market for the super-
chilled fuel. In the Middle East, meanwhile,
If you’d like to read more about the key events shaping Qatar is doing the same to drive forward its own
Europe’s oil and gas sector then please click here for LNG expansion plans.
NewsBase’s EurOil Monitor . Last week, the government of US President

Week 43 28•October•2020 www. NEWSBASE .com P9