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Iran is targeting an ambitious ramp-up in its companies are having to make drastic changes
petrochemicals capacity over the next year. Offi- to their outlooks for oil and gas prices, and some
cials say projects worth $11.5bn with a combined early-stage upstream projects previously seen as
annual production capacity of 25mn tonnes per safe bets now risk becoming worthless. Royal
year (tpy) should be operational by March 2021. Dutch Shell has followed BP in announcing up
Iran has found it easier to sells fuels and petro- to $22bn in impairments after cutting its price
chemicals discretely abroad than oil, amid the forecasts.
US’ ongoing sanctions regime. The charges relate to the major’s integrated
Tehran has a reputation for making bold and gas business, namely its LNG operations in Aus-
unrealistic predictions. But some progress is tralia, and upstream activities in Brazil and US
already being seen, with authorities announcing shale basins.
last week the launch of the 140,000 tpy Mian- It marks an end to an era for the German
doab petrochemicals plant. A new hexane-pro- power sector, after energy giants E.ON and RWE
ducing unit was also brought on stream at the last week completed a $25bn asset swap that
Imam Khomeini oil refinery. began in 2018 – one of the largest deals in the his-
South Africa’s Sasol is continuing its divest- tory of German industry. Under the final stage of
ment drive, striking a deal last week to sell its the transaction, RWE received E.ON’s renewable
10% share in a Chevron-operated gas-to-liquids and gas storage assets. RWE is investing heav-
(GTL) plant in Mozambique. It is also seeking ily in clean energy, with $5.6bn earmarked for
a buyer for its share of a pipeline that brings new projects in Europe, North America and the
Mozambican gas to South Africa. Asia-Pacific region, with $1.1bn set aside for
Like many South African state-owned enter- German investments.
prises, Sasol is up to its eyes in debt, meaning the
COVID-19 crisis has left it in a difficult position If you’d like to read more about the key events shaping
financially. It has responded by fast-tracking its Europe’s oil and gas sector then please click here for
divestment plans. NewsBase’s EurOil Monitor.

If you’d like to read more about the key events shaping FSU: Nord Stream 2 battles on
the downstream sector of Africa and the Middle East, Russia’s embattled Nord Stream 2 project cleared
then please click here for NewsBase’s DMEA Monitor. a key hurdle this week, with Danish regulators
revising the construction permit they issued last
Upstream antipathy in Europe year to allow Gazprom to use anchored vessels
Times are changing, and more and more coun- to finish the remaining 120 km of the pipeline’s
tries in Europe are clamping down on upstream offshore section. It is understood that Gazprom
development. Ireland’s new coalition govern- intends to use two Russian vessels stationed at
ment has pledged to outlaw new licences for gas the German port of Mukran to finish the pipe-
exploration, less than a year after banning new line, and anchoring could be necessary.
oil licences. This marks a shift in Irish policy, as While this is a clear step forward for Nord
the former government last year had defended Stream 2, now running over a year behind sched-
gas as a “transition fuel.” ule, the threat of stricter US sanctions continues
As the energy transition picks up pace, to hang over the project.

P8 www. NEWSBASE .com Week 27 09•July•2020