Page 8 - EurOil Week 22

EurOil NRG EurOil

by 2021. Mele Kyari, NNPC’s group managing said last week that it was essential for the country
director, noted that costs were running as high to lean on gas-fired power generation as it transi-
as $35.97 per barrel at some fields. tions to a greener economy.
Taylor’s comments came following an update
If you’d like to read more about the key events shaping to the Australian Energy Statistics, which showed
Africa’s oil and gas sector then please click here for that renewable energy sources accounted for
NewsBase’s AfrOil Monitor . 21% of the country’s power generation in 2019.
Gas-fired power generation represented 20.5%
Spot prices spiral in Asia of the national total.
The global oversupply of LNG and the destruc- Taylor said: “Gas is flexible and provides the
tion of Asian demand amid the coronavirus dispatchable capacity we increasingly need to
(COVID-19) pandemic have sent spot prices balance intermittent renewables and deliver
spiralling for a second week. a secure, reliable and affordable electricity
Spot cargoes for July delivery into to East system to power our homes, businesses and
Asia fell to $1.85 per mmBtu ($52.39 per 1,000 industries.”
cubic metres), Reuters reported on June 1. The He added: “This has never been more impor-
newswire pointed to the number of cargoes on tant – particularly as we begin our recovery from
the market this week, coupled with depressed the impact of the COVID-19 pandemic. This is
industrial demand for gas around the world, as why the Australian government believes a gas-
behind the $0.07 per mmBtu ($1.98 per 1,000 fired recovery will drive jobs and economic
cubic metre) decline. growth.”
Malaysia’s state-owned Petronas has it is
“optimising” its production of LNG in response If you’d like to read more about the key events shaping
to weaker prices and demand. Asia’s oil and gas sector then please click here for
The company told Reuters this week that NewsBase’s AsianOil Monitor .
challenges relating to the ongoing COVID-
19 pandemic meant that it needed to optimise South African fuel rationing
production volume in line with the market Many markets are reeling in excess fuel supply
slowdown. as a result of COVID-19 travel restrictions. But
Malaysia’s exports of LNG are expected to South Africa has had to ration diesel following
drop to 1.5-1.64mn tonnes in May, the newswire a fast recovery in demand as the country’s lock-
quoted unnamed industry sources as saying last down is eased.
week. This would represent a nearly two-year Only two of South Africa’s six refineries are
low in terms monthly export volumes, down operating normally, with most refining capacity
from the 1.92mn tonnes the country exported having been shut down in response to a collapse
in April. in demand. Opposition politicians blame the
The news comes after Petronas announced government for failing to ensure a sufficient
last month that it would cut its 2020 capital stockpile of fuel.
expenditure budget by 21% and its operating Meanwhile, Egypt has unveiled a new strat-
expenditure 12%. egy that aims to realise $19bn in new petro-
With the international gas market tanking, chemical projects by 2035. The country is set
the region’s largest gas exporter – Australia – has for a rapid growth in demand for petrochemical
begun turning its attention to ways it can prop up products as its population boom continues. The
domestic producers. government is eager to see domestic resources
Australian Energy Minister Angus Taylor used to meet this demand, rather than imports.

P8 www. NEWSBASE .com Week 22 04•June•2020