Page 6 - GLNG Week 44 2020

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to be linked to the deterioration of Iranian infra- 2% year on year, and sees it doubling to over 700mn
structure, although there are suspicions that tonnes by 2040. This growth will be driven by gains
some are security-related. in the Asia-Pacific region, where economies are
expanding fast and governments are looking to
If you’d like to read more about the key events shaping improve air quality by phasing out coal.
the downstream sector of Africa and the Middle East, In the shorter term, the CFO said that while
then please click here for NewsBase’s DMEA Monitor. gas prices were still lower than the pre-corona-
virus level, the recovery is underway. A rise in
EurOil: Tough quarter for majors forward curve prices for the upcoming winter
Europe’s largest oil and gas producers were reflects expectations of colder weather ahead,
spared in the third quarter from the pain they Gyetvay said.
endured in the previous three months, when the Over in Kazakhstan, the government has put
coronavirus (COVID-19) crisis was at its height. up for auction 10 oil and gas blocks in the Atyrau
But their numbers were still dramatically lower region, marking the country’s first ever online
than in the same period last year, and the market contest for acreage. Authorities are looking to
outlook remains bearish. attract interest from foreign investors despite
Demand and prices for oil and fuels has restrictions put in place in response to the coro-
recovered in recent months following the eas- navirus (COVID-19) pandemic, as well as weak
ing of COVID-19 lockdowns over the summer market conditions.
and continued supply cuts by OPEC+. Gas The government expects that the Zabu-
prices have taken longer to bottom out and then runye and Sarayshky blocks to attract the
rebound, however, partly because of oil indexa- strongest interest, and their market value
tion in some contracts. But an end to the market has been estimated at $63mn and $57mn
turmoil is still not in sight. respectively.
The world is now in the grip of a second wave
of COVID-19, with Europe, the US and many If you’d like to read more about the key events shaping
other nations again seeing record daily infection the former Soviet Union’s oil and gas sector then please
rates. Some major oil consumers such as Italy, click here for NewsBase’s FSU Monitor .
Germany and France are again going into lock-
down mode. It is telling that OPEC+, which is GLNG: Asia’s ups and downs
among the most bullish forecasters, reportedly Certain Asian LNG projects have suffered set-
now sees a risk of an oil supply surplus re-emerg- backs over the past week, while good news has
ing in 2021. been reported elsewhere. (See: Super-majors
After months of low prices, though, Europe’s see LNG ups and downs in Asia , page 11) In late
majors have largely exhausted their financial October, it was reported that ExxonMobil had
defences, having already made drastic cuts to decided not to proceed with plans to participate
operational and capital spending. This gives in an LNG import terminal in Pakistan, and had
them little room to manoeuvre if there is another exited the Energas Terminal consortium.
full-blown slump in fuel demand, and puts them
at the mercy of OPEC+ decision-makers.
At the same time, Europe’s oil leaders are also
pursuing aggressive strategies to move away
from fossil fuels and expand in cleaner energies.
But implementing these plans will not be cheap.
If you’d like to read more about the key events shaping
Europe’s oil and gas sector then please click here for
NewsBase’s EurOil Monitor .

FSU: Novatek bullish on LNG
Russia’s biggest independent gas producer
Novatek remains bullish on long-term prospects
for gas, despite prices falling to unprecedented
lows this year in the wake of the pandemic. (See:
Novatek remains bullish on long-term LNG out-
look, page 9)
Speaking to investors on October 29, Novatek
CFO Mark Gyetvay said the LNG exporter
“remains absolutely committed to its portfolio
strategy to deliver up to 70mn tonnes of LNG” per
year (tpy) by 2030. Novatek expects global LNG
consumption to reach 365mn tonnes in 2020, up

P6 www. NEWSBASE .com Week 44 06•November•2020