Page 18 - GLNG Week 31

GLNG AUSTRAL ASIA GLNG

Origin’s APLNG revenue dips 5% in FY20

PERFORMANCE ORIGIN Energy has revealed that its share materially declined in the April-June quarter
of revenue from the Australia Pacific LNG owing to weaker demand linked to the coro-
(APLNG) project declined 5% in financial year navirus (COVID-19) pandemic and also the
2019-20 owing to the coronavirus (COVID-19) disagreement among OPEC+ members over
pandemic’s impact on global energy demand. production cuts in early March. As a result,
The company said its share amounted to APLNG’s realised lagged oil price fell to $68
$2.64bn and had fallen despite an uptick in pro- per barrel in 2019-2020 from $73 per barrel in
duction, which had been offset by lower pur- 2018-19.
chases and gas inventory movements. The company noted that domestic gas reve-
APLNG’s total natural gas production, for nue had shrunk by 12% owing to smaller sales
both the export market and domestic buyers, volumes and lower average prices. The compa-
climbed by 4% year on year to 707.6 PJ (18.43bn ny’s average domestic spot gas price for the final
cubic metres) from 679.1 PJ (17.69 bcm) a year quarter of the financial year amounted to $4.39
earlier. Origin said LNG production had climbed per GJ ($168.52 per 1,000 cubic metres), com-
by 1% to 8.71mn tonnes, while sales remained pared with $9.53 per GJ ($365.83 per 1,000 cubic
flat at 8.69mn tonnes. metres) in the same three months of the previous
Origin cited improved operated and non-op- year.
erated field performance with higher well avail- Origin CEO Frank Calabria said: “The pan-
ability and facility reliability as being behind the demic has impacted natural gas and electric-
uptick in output, but noted that operated gas ity demand and some residential and small to
production fell in the April-June quarter owing medium enterprise [SME] customers are facing
to lower demand. financial difficulties. Our focus has been on sup-
Revenue from LNG sales dipped 4% y/y to porting customers, and we have extended our
$6.19bn on the back of higher sales into a weaker commitments not to disconnect those in finan-
spot market. Origin said Japan Crude Cocktail cial distress and to waive late payment fees until
(JCC) indexed contracts and spot prices had October 31.”™

EUROPE

Gazprom Neft joins international

LNG bunkering group

PIPELINES & GAZPROM Neft announced on July 30 it had and 90% less nitrogen emissions.
TRANSPORT become the first Russian oil firm to join the Soci- Gazprom Neft intends to add other LNG
ety for Gas Marine Fuel (SGMF), a group that bunkering vessels to its fleet in the coming years.
seeks to promote the fuelling of ships with LNG. Besides the environmental benefits, using LNG
The state company is mostly focused on oil as a marine fuel is also commercially lucrative,
production, but it also wants to build up its gas the company said.
business to serve as a hedge against oil market “Working with the international commu-
volatility. It has added motive now that Russia nity will allow us to join forces in develop-
and its OPEC+ allies have agreed to restrict oil ing LNG project infrastructure in Russia and
supply, preventing Gazprom Neft from advanc- abroad, fine-tuning standards and regulations,
ing new oil projects. and developing industry best practices in LNG
Gazprom Neft uses fuel oil and other production, logistics and bunkering,” the direc-
crude-based fuels to bunker ships at 37 ports tor-general of Gazprom Neft’s marine bunkering
worldwide, but it plans to bring its own LNG division, Alexei Medvedev, said in a statement.
bunkering into service in the second quarter of Gazprom Neft’s parent Gazprom also wants
2021. to move into LNG bunkering. It had intended to
The vessel, with a storage capacity of launch its 1.5mn tonne per year (tpy) Portovaya
5,800 cubic metres, will provide ship-to- liquefaction plant on the Baltic Sea this year,
ship refuelling in the Baltic Sea, where LNG which would serve as a bunkering hub, but it is
bunkering is becoming increasingly popu- yet to provide a firm start date. It has also com-
lar. LNG is seen as an attractive solution for pleted a feasibility study on a similar project in
ship owners to meet IMO 2020 rules on fuel Vladivostok in the Russian Far East, and is draft-
pollution, as it produces virtually no sulphur ing plans for another one on the Black Sea.™

P18 www. NEWSBASE .com Week 31 07•August•2020