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Nevertheless, NNPC is also preparing to start which has demonstrated that the market is
work on the Ajaokuta-Kaduna-Kano (AKK) gas willing to pay much a higher price for gas than
pipeline, which will also supply local power sta- that set by the government. Under the current
tions with fuel. Timipre Sylva, Minister of State system, the central government sets prices for
for Petroleum Resources, has said that Nigeria’s local production every six months using the
government must support the project by devel- weighted average price of gas in hubs in the US,
oping a new domestic gas tariff regime that is Canada, the UK and Russia. New Delhi slashed
agreeable to both producers and consumers. prices for conventional gas production to $2.39
Meanwhile, Botswana is dipping into its per mmBtu ($66.11 per 1,000 cubic metres) for
state fuel reserves and looking for new suppli- the six months from April 1. State-run Oil and
ers in response to a slowdown in petroleum Natural Gas Corp. (ONGC), India’s largest gas
product deliveries from South Africa. The gov- producer, has complained that such prices make PTTEP has said
ernment has been asked to help cover the costs it uneconomical to develop a large portion of its it is looking
of transportation, which are likely to rise if the existing reserves.
country starts importing fuel from Namibia and In addition to the pricing reform, Pradhan to cash in on
Mozambique. said the international energy price crash had
shored up the government’s commitment to the industry
If you’d like to read more about the key events shaping privatising Bharat Petroleum Corp. Ltd (BPCL).
Asia’s oil and gas sector then please click here for The minister noted, however, that the timetable downturn
NewsBase’s AfrOil Monitor. of the state-run refiner’s privatisation had been and expand
handed to the Ministry of Finance.
Asian-Pacific markets adapting While some are looking to divest in the wake its upstream
The Asia-Pacific oil and gas market is showing of the price slump, others are using the oppor-
signs of adaptation to the new low-price envi- tunity to expand while assets are attractive. portfolio
ronment, with governments unveiling reforms Following the recent announcement from Thai-
and investors snapping up cheap assets. land’s state-run PTT Exploration and Produc-
India has finally bowed to pressure from tion (PTTEP) that it was looking to cash in on
its state-run developers, announcing plans to the industry downturn and expand its upstream
slowly dismantle the country’s natural gas pric- portfolio, Singapore’s Jadestone Energy has fol-
ing mechanism. The mechanism has long been a lowed suit, announcing an upstream acquisition
bugbear for domestic developers, who argue that of its own. The Asia-Pacific focused independ-
it leads to unrealistically low pricing for locally ent has agreed to acquire a 90% operated stake
produced gas. in the Lemang production-sharing contract
Indian Minister for Petroleum and Natural (PSC) onshore Indonesia from Mandala Energy
Gas Dharmendra Pradhan said on June 25 that Lemang for $12mn.
the country would begin to transition towards
market pricing. If you’d like to read more about the key events shaping
His announcement comes after the launch Asia’s oil and gas sector then please click here for
of Indian Gas Exchange (IGX) in mid-June, NewsBase’s AsianOil Monitor.

Week 25 25•June•2020 www. NEWSBASE .com P7