Page 9 - AfrOil Week 22a 2020

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Qatar’s push on both domestic and overseas LNG development comes as other planned liquefaction projects in North America and elsewhere appear to be increasingly in doubt. A handful of North American developers have already postponed final investment decisions (FIDs) from this year until 2021, but analysts are now warning that it could be even longer before any more liquefaction capacity is sanctioned.
A number of pre-FID projects in both the US and Canada would be greenfield developments, adding to their construction cost at a time when LNG prices remain low and securing financing is increasingly challenging. The convergence of LNG prices globally is also throwing the eco- nomics of shipping the fuel over long distances into question.
Current trends are compounding the wor- ries of US LNG developers. Reuters reported on June 1 that the amount of pipeline gas flowing to US LNG export terminals was on track to fall to a nine-month low of 4.3bn cubic feet (122mn cubic metres) per day as cargo cancellations kick in. This is anticipated to hit Cheniere Energy, the US’ leading LNG exporter, particularly hard.
If you’d like to read more about the key events shaping the global LNG sector, then please click here for NewsBase’s GLNG Monitor.
Latin America faces sickness, sanctions
In two South American oil-producing states, the coronavirus pandemic and related topics con- tinue to dominate headlines.
The Colombian pipeline operator Cenit, a subsidiary of the national oil company (NOC)
Ecopetrol, has said it will extend measures designed to ease the financial burden on produc- ers that have been hit hard by declining energy demand and low crude prices. The company revealed last week that it intended to cut tariffs, to keep special financing arrangements in place for another six months and to be more flexible in negotiations with users of its pipelines.
In Brazil, more offshore operators are report- ing COVID-19 infections among their con- tractors and staff members. As of May 28, the National Agency of Petroleum, Natural Gas and Biofuels (ANP) had recorded no less than 544 cases. State-owned Petrobras reportedly accounted for hundreds of these cases, and sev- eral private firms – including Dommo Energia (Brazil), Enauta Participacoes (Brazil), Equinor (Norway), Perenco (UK/France) and Royal Dutch Shell (UK/Netherlands) – have also been hit.
Venezuela also continues to draw criticism from the US for importing gasoline from Iran. Officials in Washington have threatened to penalise any companies found to be involved in this activity and have also delivered diplomatic warnings to governments around the world.
In related news, Libre Abordo, the obscure Mexican company that has been executing an oil-for-water agreement with Venezuela, has declared bankruptcy. Venezuelan President Nicolas Maduro has blamed the US sanctions on his country for Libre Abordo’s woes.
If you’d like to read more about the key events shaping the Latin American oil and gas sector, then please click here for NewsBase’s LatAmOil Monitor.
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