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to US liquefaction terminals had reached a With respect to Colombia, a high-ranking
record high of 9.8bn cubic feet (278mn cubic representative of Fitch Ratings says he expects
metres) per day in March, but fell to less than fallout from the oil price crash and the corona-
4.0 bcf (113 mcm) per day in June. Mean- virus (COVID-19) pandemic to act as a drag on
while, more than 70 cargoes are estimated to the economy for at least two or three years.
have been cancelled for loading from US LNG The ratings agency has predicted that the coun-
plants in June and July, and the latest media try’s GDP will contract by at least 4.5%, and it
reports suggest that 40-45 cargoes may have may revise that figure upward soon.
been cancelled for loading in August. In Argentina, the national oil company
However, some trade sources cited by Reuters (NOC) YPF has issued a declaration of force
last week have suggested that loading a cargo in majeure, saying it is unable to pay the Belgian
August might make more sense compared with company Exmar for services performed since
June and July. This is because there is a price mid-March because of the pandemic. Exmar –
contango between August and forward months, the operator of Tango LNG, the floating facility
while shipping rates are low. that is the only working gas liquefaction plant
In the short term, the gas price differentials in the country – has responded to this move by
between Europe and the US are expected to describing it as illegal.
remain unfavourable for US producers. And Meanwhile in Peru, indigenous leaders are con-
the Australian government also anticipated cerned that their efforts to secure legal protection
LNG spot prices to weaken further, with this for their territory in the Amazon region, near the
having a negative impact on the country’s borders with Brazil and Ecuador, will spark opposi-
exports. tion from the oil industry. The country’s legislature
This comes as Australia continues to compete is currently mulling proposals to fast-track a bill
with Qatar for the top spot in global LNG exports upholding the indigenous group’s aim.
– with the US having become the third-largest Guyana, South America’s newest oil pro-
exporter of the fuel in 2019. ducer, has shortlisted 19 of the 35 companies
that submitted offers to act as marketing agent
If you’d like to read more about the key events shaping for five crude cargoes over a period of 12 months.
the global LNG sector then please click here for The list of bidders moving on to the next stage of
NewsBase’s GLNG Monitor. the tender includes two Chinese companies and
three major commodities trading firms.
Latin America still coping with COVID-19
Both Argentina and Colombia are facing the If you’d like to read more about the key events shaping
problem of how to cope with lower crude oil the Latin American oil and gas sector then please click
prices and weaker energy demand. here for NewsBase’s LatAmOil Monitor.

Week 26 02•July•2020 www. NEWSBASE .com P15