Page 17 - AsianOil Week 06 2023

AsianOil NEWS IN BRIEF AsianOil

gas import numbers posted by Beijing in 40 can finish the business matters. So far the "Nonetheless, we are at least still seeing
years. progress is good," Ariadji said. Asian prices maintaining a slight premium
The much publicised drop of 21% on The IDD project, located in the Makassar to Europe, which is a change from the
LNG imports alone made up a large portion Strait, involves the Bangka, Gendalo and significant discounts we've seen throughout
of this tally over the year and saw China Gehem gas fields. most of last year."
drop to number two behind Japan on the Chevron has a 62% interest in the
global rankings of importers. Bangka project and about 63% in the Asian spot LNG prices are typically at a
Numbers on the gas front are expected Gendalo-Gehem project. premium to European natural gas prices,
to rebound significantly, though, in the Eni is already a partner in the project, but traded at a discount for most of last
coming months, with the latest projections along with China's Sinopec. year. After hitting a record high last August,
showing a 6.5% increase in Chinese imports The ownership transfer is crucial for they began sliding in late December and
expected by December. Indonesia, which is pinning its hopes of have shed nearly 40% so far this year, and
Globally, over the same period, demand boosting gas production to 12,000 million are currently at the lowest levels since
for gas is forecast to increase by around standard cubic feet per day (mmscfd) by August 2021.
0.4%. 2030 on resuming development at long-
stalled gas projects including the IDD. The fall in prices has encouraged some
Chevron announced in January 2020 that buying interest, with Thailand's PTT,
Inpex expects 38% drop in it was scaling down ambitions for natural Bangladesh's RPGCL and China's CNOOC
gas extraction from the project, saying its
seeking cargoes this week.
profits in 2023 second stage was "not able to compete for In top importer Japan, while cooler
capital in Chevron's global portfolio".
Japan's Inpex on February 9 forecast a 38% weather has been forecast for mid-February
fall in net income to 270 billion yen ($2 with below seasonal temperatures seen in
billion) and a 19% fall in sales to 1.9 trillion JDC to provide HAKURYU-11 jack- Tokyo, gas inventory levels remain healthy,
yen this year, hit by lower oil prices and a said Tobias Davis, head of LNG Asia at
stronger yen. up for work in Thai field brokerage Tullett Prebon.
The country's top exploration and "Therefore, there is a distinct lack of
production company sees the average Brent Japan Drilling Co., Ltd. (JDC), a Japanese any expectation for fresh incremental LNG
oil price falling to $75 per barrel in 2023 offshore drilling company, has won a import demand," he said.
from $99 per barrel last year, and the yen contract to drill in Thailand. In Europe, S&P Global Commodity
rising to 125 per U.S. dollar from 131.6 in The contract, signed with Medco Energi, Insights assessed its daily Northwest Europe
2022, it said. will see JDC provide the jack-up drilling rig LNG Marker (NWM) price benchmark for
It also said it sees sales falling to 1.9 "HAKURYU-11" for work at the Bualuang cargoes delivered in March on an ex-ship
trillion yen this year after an 87% increase field, offshore Thailand. (DES) basis at $15.209/mmBtu on Feb. 9, a
to 2.3 trillion yen in 2022. JDC said that the contract was expected discount of $1.475/mmBtu to the March gas
Last year's sales were backed by a 40% to start around the end of February. The price at the Dutch gas TTF hub.
increase in the average Brent oil price and contract is for four drilling rig workover With reduced industrial gas demand and
a weaker yen which lost 20% against the wells and should take 60 days to complete. weather forecasts indicating above-average
U.S. dollar, it added. The company posted a Medco will have the option to extend the temperatures for February and March,
97% increase in full-year net profit to 438.2 contract for three more wells. Financial Europe could be starting the injection
billion yen in 2022. details were not disclosed. season in April with stocks that could be
Inpex shares closed 0.5% up on Thursday The KFELS Super B Class-type jack-up similar to 2020 levels, if not a little higher,
after the profit forecast. Inpex plans to rig was built by Keppel Shipyard in 2013. said Samuel Good, head of LNG pricing at
invest 496 billion yen into its business commodity pricing agency Argus.
development this year, up from 336 billion "This would contrast sharply with last
yen spent in 2022, it said. Asia spot prices drop further on year, when much lower end-winter stocks
It plans to pay a total of 62 yen per supported gas injection demand through
common share in last year's dividends and tepid demand, high inventory the summer," he said.
increase the payout to 64 yen per common German gas storage operators group
share on 2023 results, it said. Asian spot liquefied natural gas (LNG) INES on Thursday said there was no
prices slipped over the past week amid chance of a shortage this winter, citing
high inventory levels and as a mild weather lower demand and sufficient supply after
Eni set to replace Chevron at outlook dampened demand, according to inventories were filled to the brim.
Still, as Russia's piped gas volumes to
Reuters.
deepwater Indonesian project delivery into northeast Asia LNG-AS Europe this year are set to be lower than
The average LNG price for March
2022, Europe will "still need to pull in a lot
Italy's Eni could take over Chevron's stake was $17 per million British thermal units of LNG across the summer as a whole... So
in and operatorship of the Indonesia (mmBtu), down $1.50, or 8.1%, from the competition should continue," said ICIS
Deepwater Development (IDD) gas project previous week, industry sources estimated. LNG analyst Alex Froley.
by mid-2023, a senior Indonesian energy The average price for April delivery is Meanwhile, LNG freight rates saw
ministry official said on Tuesday. estimated at $16.50 per mmBtu. a slight decline this week, said Eleni
"Currently Eni is working, and so far, so "Prices in Asia have continued to be Balomenou, analyst at Spark Commodities,
good," Tutuka Ariadji, director general of oil bearish this week amid a milder weather with Spark's Atlantic rates at $54,500/day on
and gas at Indonesia's Ministry of Energy outlook in Northeast Asia next week and Friday, and the Pacific rate at $66,250/day.
and Mineral Resources, said on the sidelines LNG stocks which remain at healthy levels
of the India Energy Week conference. for the time of year," said Ryhana Rasidi, an
"So maybe in the middle of this year we analyst at data and analytics firm Kpler.

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