Page 11 - GLNG Week 44 2020

GLNG COMMENTARY GLNG

Super-majors see LNG

ups and downs in Asia

ExxonMobil has pulled out of an LNG import project in

Pakistan, while Chevron has provided an update on the

restart of Train 2 at Australia’s Gorgon LNG

PROJECTS & CERTAIN Asian LNG projects have suffered The company is reducing its 2020 capital
COMPANIES setbacks over the past week, while good news expenditure from its initially planned $33bn
has been reported elsewhere. In late October, it to $23bn, while also reducing cash operating
WHAT: was reported that ExxonMobil had decided not expenses by about 15%. It is planning further
Updates have been to proceed with plans to participate in an LNG reductions in 2021.
reported about import terminal in Pakistan, and had exited “ExxonMobil is evaluating all appropriate
ExxonMobil and Chevron’s the Energas Terminal consortium. Meanwhile, steps to significantly reduce capital and operat-
LNG projects in Asia. Chevron has provided an update on its efforts to ing expenses in the near term as a result of mar-
repair weld quality issues discovered on propane ket conditions and commodity price decreases,”
WHY: heat exchangers – or kettles – in the second train an ExxonMobil spokesperson told Pakistani
ExxonMobil is re- at its Gorgon LNG terminal in Australia. financial daily Business Recorder.
evaluating its investment Despite ExxonMobil’s exit from the Energas The spokesperson added that decision did not
plans, while Chevron is in Terminal consortium, the updates illustrate the affect the company’s downstream and chemical
the process of restoring prominent role super-majors are playing in the business in Pakistan, and said future investment
service at Gorgon Train 2. LNG industry. opportunities in Pakistan would be evaluated.
The company continues to pursue LNG
WHAT NEXT: ExxonMobil’s exit import plans elsewhere in Asia, having signed
Chevron plans to take ExxonMobil’s exit from the Pakistani project a memorandum of understanding (MoU) last
the other two trains at comes as the super-major seeks to reduce spend- week to develop an integrated LNG-to-power
Gorgon offline one after ing amid this year’s industry downturn. It pulled project in the Vietnamese city of Hai Phong.
the other once Train 2 is out despite only entering into the consortium (See: ExxonMobil, JERA sign Vietnamese MoU,
back in service. last year. Pakistan’s Express Tribune reported page 14)
that ExxonMobil’s main objective for joining
the consortium had been to supply LNG to the Chevron’s progress
Asian country. Separately, the second train at Chevron’s Gorgon

Pakistan is expanding
its LNG import capacity
and ExxonMobil
previously hoped to
supply the fuel to the
country.

Week 44 06•November•2020 www. NEWSBASE .com P11