Page 14 - AsianOil Week 26

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petrochemicals business to UK chemicals group at the study phase, and it could be many years
Ineos to help meet its $15bn divestment target before Russia and China agree a supply contract
early and reshape its business for the energy to underpin its construction, if ever.
transition. By divesting its petrochemicals, BP is Uzbekistan is making progress on several
also separating itself from its peers such as Royal fronts in its energy sector. It has struck a prelim-
Dutch Shell and ExxonMobil, both of which are inary deal with a group of Russian investors for
expanding their petrochemicals businesses. the construction of a 1.5-GW gas-fired power
plant that would supply both domestic and For the long-
If you’d like to read more about the key events shaping Afghan electricity users. It has also launched a
Europe’s oil and gas sector then please click here for $300mn modernisation programme at one of its term health of
NewsBase’s EurOil Monitor. two main refineries, aimed at bringing the qual- Europe’s refining
ity of the plant’s fuel to Europe standards.
FSU: Gazprom’s bold claim sector, reduced
The long-serving head of Russia’s state gas sup- If you’d like to read more about the key events shaping
plier Gazprom made a bold claim last week that the former Soviet Union’s oil and gas sector then please capacity may not
the company would one day send up to 130bn click here for NewsBase’s FSU Monitor.
cubic metres (bcm) per year of gas to China. be such a bad
Gazprom projects it will only send 5 bcm of COVID-19 weighs on LNG exports thing
gas to Russia’s eastern neighbour this year via the LNG exports are slumping as a result of
Power of Siberia pipeline, brought on stream in lower demand globally amid the coronavirus
December. That network is not expected to reach (COVID-19) pandemic, and the outlook for the
its full 38 bcm per year capacity until 2025. coming months remains bearish.
Nevertheless, Gazprom CEO Alexei Miller This week, Australia’s government esti-
says the 130 bcm per year target can be reached mated that the country’s export earnings from
by expanding Power of Siberia’s flow capacity by LNG would drop by 26% year on year (y/y) to
a further 6 bcm, building a second pipeline with a AUD35bn ($24bn), in the coming financial year,
capacity of 50 bcm per year through Mongolia and which runs July 2020-June 2021.
delivering additional supplies via the Far East. Meanwhile, the US Energy Information
Miller did not disclose a timeframe for real- Administration (EIA) reported last week that
ising these projects. The pipeline through Mon- US LNG exports had declined by more than
golia, known as Power of Siberia 2, enjoys strong half in 2020 so far. Citing data from consul-
political support from Moscow. But it is still tancy IHS Markit, the EIA said gas deliveries

P14 www. NEWSBASE .com Week 26 02•July•2020