Page 10 - FSUOGM Week 22

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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 worries 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 4.3 bcf (122 mcm) per day as cargo cancellations kick in. This is expected 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 pro- ducers 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 arrange- ments 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 made note of 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 crit- icism from the US for importing gasoline from Iran. Officials in Washington have threatened to penalise any companies found to be involved in the transaction and have
also delivered diplomatic warnings to gov- ernments 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.
Middle Eastern moves
All eyes are focused on OPEC’s next move but Iran finds a way to tweak the US’ nose.
This week’s scheduled meeting of OPEC+ to consider an extension of the oil production cuts agreed for May and June will be closely watched by the industry. The past two months have seen unprecedented volatility and leading up to this week, oil prices have fluctuated wildly; it is reasonably clear that much hangs on OPEC’s meeting.
Turkey’s moves in various areas of the Medi- terranean have a familiar ring and the latest is its plan to launch oil exploration in East Med under a pact with Libyan government. This could be considered both a daring and provocative initia- tive and it is likely that much more will be heard on this and other moves in the coming months.
Mixed news comes from the Emirates: ADNOC was obliged to cut July crude nomi- nations to meet the requirements of the OPEC+ pact but there are signs of progress on bids for ADNOC’s gas pipelines.
Even more mixed news comes from Iraq: Pet- rofac’s has secured a further six-month contract extension with BOC for its long-standing Iraq Crude Oil Export Expansion Project but more to the point, Iraq’s oil rig count has tumbled by almost two-thirds this year. Iraq has struggled more than most to meet its reduced quota. Its new prime minister has a very hard hand to play now and looking ahead.
If you’d like to read more about the key events shaping the Middle East’s oil and gas sector then please click here for NewsBase’s MEOG Monitor.
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w w w . N E W S B A S E . c o m Week 22 03•June•2020