Page 7 - MEOG Week 45

MEOG PIPELINES & TRANSPORT MEOG

QP pens LNG deal with

Singapore’s Pavilion

QATAR QATAR Petroleum (QP) has set up an LNG it to 126mn tpy by the late 2020s.
trading unit, while also striking a long-term deal QP is on a push to find customers to take this
to supply the super-cooled gas to Singapore. extra gas. QP Trading has signed a long-term
Doha-based QP Trading will aim to build up sales and purchase agreement with Singapore’s
a globally diversified portfolio of third-party and Pavilion Energy Trading & Supply, covering
equity LNG, QP said in a statement on Novem- 1.8mn tpy of supplies over a 10-year period, the
ber 9. It will manage price risk exposure through company said.
physical and derivatives trading. The agreement was reached following a com-
“These new capabilities, combined with a petitive process. Al-Kaabi said the deal reflected
customer- and market-centric approach, will the “commitment to response to the needs of our
enable QP Trading to respond with greater agil- customers, including supply security, price com-
ity to the evolving needs of its customers, and to petitiveness, and flexibility.”
maximise the value of its portfolio,” QP said. The latest contract comes after QP last month
QP Trading’s launch reaffirms QP’s “belief secured 25 years of storage and delivery capac-
in LNG’s economic and environmental value ity at the UK’s Grain LNG terminal beginning
proposition and its cornerstone role in the in mid-2025. QP had subscribed to some 7.2mn
energy transition,” company CEO and Qatari tpy of import capacity at the site in southern
Energy Minister Saad Sherida Al-Kaabi said in England, enabling it to make greater inroads into
a statement. the UK gas market.
Qatar, already the world’s biggest LNG Pavilion Energy not only imports LNG into
exporter, is embarking on a major expansion Singapore but also has its own LNG bunkering
project at the offshore North Field. network in the Asia-Pacific area.
The first phase, North Field East (NFE), will It recently made a pact with Finland’s Gasum,
raise output from the current 77mn tonnes per on using each other’s LNG bunkering infrastruc-
year to 110mn tpy by 2025, while the second, ture and supply capabilities in their respective
known as North Field South (NFS), will increase regions.™

FINANCE & INVESTMENT

Oman looks to monetise PDO’s Block 6

OMAN THE Omani government is reported to be in The move would mark another attempt by
the process of launching a new project company the Ministry of Energy and Minerals to lever-
for the sultanate’s largest oil and gas asset, with age Block 6 following its ill-fated 2019 licens-
plans to tap international markets to buoy the ing round. The auction covered five previously
economy. explored blocks in the south-west of the country,
Speaking to Bloomberg this week, three numbered 58, 73, 74, 75 and 76, as well as Block
sources said that Petroleum Development Oman 70 in Central Oman, all of which were carved out
(PDO), in which the state holds a 60% stake, of PDO’s giant concession.
would transfer its rights to the 900,000-square Around 20 months have passed since the bid
km Block 6 concession, which has a total pro- round was launched, and only two of the blocks
duction capacity of around 650,000 bpd, to a new have been issued.
company. The first (Block 58) went to Sweden’s Tethys
This new firm would then seek to tap global Oil in July, while the second (Block 70) was
financial markets by way of a bond or an initial acquired by compatriot Maha Energy last
public offering (IPO) in order to ease the govern- month, with the deal receiving Royal Decree in
ment’s debt burden. early November.
One source said that the government is being Royal Dutch Shell holds a 40% stake in the
advised on the process by JP Morgan Chase & semi state-owned entity.
Co. and that there are talks of a $3bn bond sale Meanwhile, Muscat is mulling whether to
during the first half of 2021, making it the Mid- impose a new income tax on the country’s high-
dle East’s first reserves-backed raise. Block 6 is est earners from 2022 as it seeks to improve eco-
estimated to hold more than 75% of the Sultan- nomic stability and build resilience beyond its
ate’s remaining oil reserves. energy sector.™

Week 45 11•November•2020 www. NEWSBASE .com P7