Page 16 - AsianOil Week 06 2023

AsianOil NEWS IN BRIEF AsianOil

Kazakh and Russia firms eye Chevron justified its decision, stating that to guarantee increased levels of domestic
this increased its own income from the
energy security as another contributing
pipeline construction to supply field. Otherwise that funding would have factor in reduced imports.
gone to MOGE.
Speaking in the wake of the figures being
gas to China and Chevron will ensure funds continue to released last week, Fatih Birol, the IEA’s
Even so, “through the sale, MTI Energy
executive director, said he now expects a
Kazakh and Russian firms are looking into flow to the junta, making them complicit in major turnaround as China looks to the
constructing a pipeline that would supply the junta’s international crimes,” Justice For post-COVID era.
gas to northeastern Kazakhstan as well as Myanmar has argued. This in turn could send energy prices
export fuel to China, Energy Minister Bolat The NGO noted that Alberta-based around the world higher in the long run, he
Akchulakov said on February 2. MTI Energy was a subsidiary of oilfield warns.
The two sides were considering a pipeline equipment manufacturer Mitey Titan Much of the rest of the world “seems to
that would transport natural gas from Industries. MTI Energy CEO Mehtab be off the hook this winter,” Birol also said
Russia’s Omsk and Barnaul cities to the Khehra has been described as leading “a in response to a warmer-than-usual winter
Kazakh town of Alashankou. whole galaxy of service companies active seen across China so far this year.
From Alashankou, the gas could be in Cameroon, Congo, Gabon, Equatorial This has led to a relative absence of
supplied to the Kazakh city of Pavlodar, Guinea and especially Nigeria.” competition for energy resources with
while a separate branch of the pipeline Justice For Myanmar has urged Canada Western nations.
would connect to China. and the UK to impose sanctions on MOGE With the United States and a number
Russia has been reorienting some of its in response to its investment in Yadana. of European nations grappling with rising
gas exports towards China amid Western Existing sanctions do not prevent the deal energy prices after slashing fuel imports
sanctions over Moscow’s invasion of from going ahead. from Russia, a major cold snap across China
Ukraine. “Chevron’s irresponsible sale of its stake would have seen prices for oil and gas rise
in the Yadana Project to MTI Energy will significantly during January.
ensure that gas funds keep flowing to the Birol did add, though, that “next winter
Chevron exits Myanmar illegal Myanmar junta, bankrolling their could be more challenging” if the weather
proves to be colder, and with the Chinese
campaign of terror in response to two years
US major Chevron has reached a deal to of mass resistance that has prevented the economy having had a year to bounce back.
sell its 41% interest in Myanmar’s largest junta from gaining control of Myanmar,” As the world’s premier importer of gas
gas field, Yadana, to Canada’s MTI Energy, Justice for Myanmar said. “MTI Energy’s and oil, China’s cut in imports of 390,000
various media reported this week. investment will make the company barrels per day (bpd) throughout 2022,
Yadana produces 8bn cubic metres complicit in the junta’s ongoing war crimes equal to a 3% year-on-year decrease, was
per year – 70% of which is exported to and crimes against humanity.” announced at a time many Western nations
Thailand, while the rest is used domestically. The NGO continued by stating: “We are still struggling to manage on limited fuel
Chevron’s sale deal comes two years after condemn MTI Energy’s total disregard for imports as a result of ongoing sanctions on
a military coup took place in Myanmar, the lives and democratic will of the people Russian oil and gas.
prompting a number of international oil of Myanmar, and its blatant breach of the It is the first such decline in oil import
and gas companies including France’s company’s obligations under the OECD numbers to China since 1990.
TotalEnergies to withdraw from the Guidelines for Multinational Enterprises At the same time, global demand for oil
country. and UN Guiding Principles on Business and over the last 12 months, however, has risen
“Yadana is the biggest gas project in Human Rights.” by 2.2mn bpd.
Myanmar, within an industry that is the “With the Chinese economy now
largest source of foreign revenue for the recovering, it will have major implications
illegal military junta. Gas revenue bankrolls Chinese gas and oil numbers for oil and gas market balances,” Birol
the junta’s ongoing war crimes and crimes continued.
against humanity,” commented NGO Justice see first decline since 1982 Officials have said previously that China
For Myanmar. is expected to account for around half of all
TotalEnergies was the former operator of Total oil and gas imports to China were global oil demand during 2023; a projected
Yadana, but left last year, raising Chevron’s down for the first time in 40 years in some increase of roughly 2mn bpd the agency
stake to 41.1%. The US major is currently cases in 2022, with oil use dropping by 3% says.
the largest shareholder, but Thailand’s and gas by 0.7% to levels not seen since Much still depends on just how China’s
PTTEP serves as the new operator, while 1982. economy reacts to a post-COVID world,
the remaining interest is held by state- According to the Paris-based though.
owned Myanmar Oil and Gas Enterprise International Energy Agency (IEA), “China is the key uncertainty when it
(MOGE). widespread COVID lockdowns employed comes to 2023 global energy markets,”
Chevron had elected to receive a by the central government to counter the Birol continued, adding: “how the country’s
proportionate share of TotalEnergies’ stake spread of the virus throughout much of the economy will perform will have massive
when the French major left, raising the year accounted for a large portion of the implications for global energy markets.”
former’s interest from 28.3%. This drew decline in numbers. Of equal concern to the plunge in oil
criticism, as Chevron had said it was leaving Analysts are also highlighting Beijing’s numbers in China, is the 0.7 cut in natural
Myanmar in light of the military coup. recent push to expand coal output in order gas imports across 2022; the first drop in

P16 www. NEWSBASE .com Week 06 10•February•2023