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which Rosneft CEO Igor Sechin has claims could terminals. Meanwhile, analysts have said it could
one day flow up to 2mn barrels per day (bpd) make sense under these circumstances to send
of oil. But despite Rosneft’s secrecy, the $160bn some LNG to the US for storage.
scheme is expected to secure large tax breaks and Most of the US’ operating LNG plants began
financing from the government. their life as import terminals before being con-
Meanwhile, Gazprom has ordered a special- verted to liquefaction in recent years. They are
ised platform for what is expected to be the first still able to receive cargoes as well as send them
gas field on Russia’s Arctic shelf to start produc- out.
tion. Kamennomysskoye-more is thought to According to Reuters, 21 LNG cargoes were
contain 550bn cubic metres of gas and will flow delivered to the US last year – also mostly from
14.5 bcm per year at full capacity. Trinidad – while over 500 were exported.
These projects likely have a breakeven point Demand for LNG in Europe remains, how-
considerably higher than current prices, how- ever, despite short-term challenges caused by
ever, raising questions about how quickly they storage capacity filling amid the coronavirus
will see first production. (COVID-19) pandemic. It was recently reported
If you’d like to read more about the key events that 100% of the regasification capacity at the
shaping the former Soviet Union’s oil and gas LNG terminal in Swinoujście, Poland, had been
sector, then please click here for NewsBase’s FSU reserved. The terminal is in the process of being
Oil & Gas Monitor. expanded. Meanwhile, a new deal has brought
the reserved capacity at Croatia’s Krk facility,
Full storage in Europe shifts LNG trade which is currently under construction and due
flows to start up in 2021, to 80%.
The US could find itself receiving more LNG If you’d like to read more about the key events
cargoes as a lack of available storage capacity shaping the global LNG sector, then please click
in Europe leads to shipments being directed here for NewsBase’s GLNG Monitor.
elsewhere.
On June 8 a tanker from Trinidad was LatAm mulls production levels
reported to have arrived at Dominion Energy’s Several countries in Latin America are taking a
Cove Point LNG terminal in Maryland over the close look at oil output levels.
weekend. Meanwhile it is thought that another During negotiations over production quotas
tanker, Madrid Spirit, sailing from Nigeria may over the weekend, Mexico once again found at
also unload its cargo of the super-chilled fuel in odds with other members of the OPEC+ group.
the US. Rocio Nahle, the country’s energy minister, told
This comes after US gas futures started trad- reporters on June 6 that Mexico “fully respected”
ing at a premium to European benchmarks in the group’s previous agreement, under which it
April for the first time in 10 years. This, com- slashed output by 100,000 barrels per day (bpd)
bined with filling storage capacity in Europe, in May and June, but would not push the dead-
prompted buyers to cancel a number of upcom- line back any further.
ing cargoes scheduled for loading from US LNG Brazil, meanwhile, has reported that oil

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