Page 7 - GLNGl Week 24

GLNG NRG GLNG

for new LNG export projects, but on the import Latin America’s unconventional concerns
side, new opportunities are still being explored. Two Latin American states are taking a close
Indeed, importers may stand to benefit from a look at unconventional oil and gas developments
growing variety of options for sourcing their this week.
LNG supply, as well as low prices for the fuel. Colombia appears to be gearing up to
Under these circumstances, countries that are award contracts for pilot projects that will
ramping up their LNG imports may find it easier involve hydraulic fracturing (fracking).
to attract foreign investors. Armando Zamora, the head of the national
Last week, it was reported that ExxonMo- hydrocarbons regulator ANH, said last week
bil was considering investing in new LNG-to- that the government had invited companies
power projects in Vietnam. A statement from to submit proposals and hoped to sign deals
the Vietnamese government suggested that by September or October. Fracking could help
there was potential to invest in a 4,000-MW the country replenish its reserves and increase
LNG-to-power plant in the northern port city of production.
Haiphong, or a 3,000-MW plant in the Mekong In Argentina, Shell and its local partner, state-
Delta province of Long An. (See: ExxonMobil owned YPF, suspended operations last week at
mulls investment in Vietnamese power, pae 15) the Bajada de Añelo block in Vaca Muerta, one of
The government added that the plants could the world’s largest shale formations. They did so
use LNG imported from the US or elsewhere. It in response to seismic activity in Neuquén Prov-
suggested that a plant in Haiphong could start ince, near the Andes. No other fields have been
generating power at some point between 2025 affected, but other licence areas in Vaca Muerta
and 2030. have seen production fall this year as a result of
The LNG industry is hoping that the market shrinking demand stemming from the corona-
will have rebalanced by this point, with excess virus pandemic.
supply being absorbed and demand rising again. Meanwhile, Bahamas Petroleum Co. (BPC)
Currently, the global oversupply of LNG contin- continues to expand its regional footprint
ues to weigh on the market and depress prices. through acquisitions. The company has taken
The US Energy Information Administration control of Columbus Energy, an independent
(EIA) has predicted that exports of US LNG will operator that is working to develop onshore
have dropped by 60% in July from their peak in fields in Trinidad and Suriname. These assets,
January. together with ongoing projects in The Baha-
Meanwhile, Total’s president of gas, mas and Uruguay, will turn BPC into an oil
renewables and power, Philippe Sauquet, and gas “champion” focusing on the Caribbean
has warned that the cancellation of a grow- and Atlantic margin, the company said in a
ing number of cargoes scheduled for loading statement.
this summer should serve as a warning that Elsewhere in the region, Guyana has reported
new LNG projects will not automatically be that its second cargo of oil exports fetched
profitable. around $35mn, or $20mn less than its first cargo,
Not that all LNG exporters in the US have which went to market in February. These reve-
been deterred. On June 15, US regulators nues brought the sovereign wealth fund’s balance
approved Venture Global LNG’s request to pro- up to nearly $95mn, according to government
ceed with limited site preparation for its pro- officials in Georgetown.
posed Plaquemines LNG terminal in Louisiana.
The company said it was planning to start early If you’d like to read more about the key events shaping
construction work on Plaquemines in mid-2020 the Latin American oil and gas sector then please click
before achieving financial close on the project here for NewsBase’s LatAmOil Monitor .
late this year. Construction is also currently
under way on Venture Global’s Calcasieu Pass Middle Eastern malaise
LNG project, also in Louisiana. (See: Venture Last week, focus was on the much antici-
Global takes steps forward on second plant, page pated OPEC+ meeting to consider and agree
13) oil production cuts beyond the end of June.

Week 24 19•June•2020 www. NEWSBASE .com P7