Page 7 - LatAmOil Week 45 2019
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As a result of this growth, the number of slots for LNG carriers at the Panama Canal is set to double to four per day. And this could happen by the end of the year if it is deemed necessary for accommodating the greater demand, the Panama Canal Authority’s top administrator, Ricaurte Vasquez, told Japan’s Nikkei publi- cation last week. The new LNG slots would not affect the passage of other types of vessels, Vasquez said.
Meanwhile, there is renewed optimism that the LNG trade between the US and China could soon resume, following comments from US Sec- retary of Commerce Wilbur Ross.
In a November 5 telephone press conference, Ross said LNG and soybeans were among the goods being discussed as part of an interim trade agreement between the two countries that
A Q-FLex tanker in the Panama Canal (Photo: stock)
could reduce tensions in the shorter term and ultimately pave the way to a more robust deal being signed.
China is reported not to have imported a single cargo of US LNG since April, and has subsequently raised its tariff on the fuel to 25%. However, given that the US could eventually become the world’s largest LNG exporter, while China is on course to become its largest importer, the two countries are missing out on an increasingly significant trading opportunity so long as the stand-off continues.
No further breakthrough in negotiations between the US and China has been reported as yet. If a deal is reached, however, a growing number of cargoes destined for China are cer- tain to increase LNG tanker traffic through the Panama Canal further still..
VENEZUELA
PdVSA hopes deal with Indian company will help oilfields, refineries recover
VENEZUELA’S crude oil output and refinery throughput have fallen in recent years, owing to mismanagement, the departure of foreign investors and the imposition of sanctions by the US government. But the national oil company (NOC) PdVSA is hopeful that co-operation with a new Indian partner will improve condi- tions in the oil sector.
Earlier this year, PdVSA struck a deal with Flash Forge (F-F) of India on rehabilitation work at its oilfields and refineries. According to documents viewed by S&P Global Platts, the parties have signed a five-year contract that will see F-F supplying spare parts, strategic materi- als and other inputs for use at oilfields operated by PdVSA. The NOC will use these materials to boost production in the eastern and western
sections of the Orinoco Belt.
The contract also calls for the Indian com-
pany to restore PdVSA facilities that support production and transportation operations, Platts said. These include water- and gas-injec- tion facilities, gas compression stations, treat- ment plants that convert extra-heavy crude into synthetic oil, well conditioning and rehabilita- tion units and plants that generate electricity and steam, it said.
Meanwhile, F-F will also supply technical assistance, materials and equipment for Vene- zuelan refineries. PdVSA will use the assistance it receives to increase refinery throughput.
Reports on the deal have not been con- firmed. Neither PdVSA nor F-F has responded to requests for information on the matter.
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