Page 7 - LatAmOil Week 02 2021

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FAR’s shareholders are due to discuss the com- S&P Global Platts reported on January 11
pany’s plans to sell its minority stake in the RSSD that the JKM benchmark had hit an all-time
joint venture to operator Woodside Energy high of $21.45 per mmBtu ($593.31 per 1,000
(Australia) at the meeting, but they need more cubic metres) on January 8, while the West India
time to discuss a takeover bid by Remus Hori- Marker (WIM) benchmark set its own record
zons, a private investment fund. Remus’ bid of of $17.925 per mmBtu ($495.81 per 1,000 cubic
AUD209.6mn ($161.6mn) for 100% of FAR is metres).
contingent on the latter company’s retention of Soaring prices led one Indian LNG importer
the RSSD stake within its portfolio. to predict that throughput levels at some of the
Both GTA and Sangomar were originally country’s terminals could fall by 10%-12% in the
due to start production in 2022. However, the first quarter of 2021.
operators of both blocks have had to revise their The source told Platts that imports could
schedule because of the coronavirus (COVID- drop to 5.5-5.7mn tonnes from 6.5mn tonnes in
19) pandemic. the final quarter of last year.
“The quick change in the market dynamics
If you’d like to read more about the key events shaping has taken Indian LNG buyers by surprise. A lot Egypt enjoys a
Africa’s oil and gas sector then please click here for of Indian buyers can’t afford to pay these prices.
NewsBase’s AfrOil Monitor. We will see demand destruction across various surplus of natural
sectors,” Platts quoted an unnamed senior LNG
AsianOil: IOC’s return to LNG spot markets industry official as saying. “Whatever little avail- gas supply and
State-run Indian Oil Corp. (IOC) has reportedly ability there is in the global spot market, China
returned to the spot liquefied natural gas (LNG) is taking those cargoes.” wants to give gas
market despite prices surging to record highs in a greater role in
recent weeks. If you’d like to read more about the key events shaping
The company has launched a tender for Asia’s oil and gas sector then please click here for its economy
an LNG cargo to be delivered on February 13, NewsBase’s AsianOil Monitor.
Reuters reported on January 11 citing unnamed
sources. The sources added that the tender, DMEA: Nigeria’s refining revamp
which is set to close on January 13, was the first Nigeria’s state-owned NNPC is negotiating a
since IOC bought a cargo for February 21 deliv- $1bn prepayment deal with trading firms to
ery at more than $13 per mmBtu ($359.58 per raise funds to modernise its largest refinery in
1,000 cubic metres). Port Harcourt. According to Reuters, the pre-
The Indian refiner is looking for LNG at a time payment funds would be repaid over seven years
of increased regional demand, which has been through deliveries of crude oil, as well as refined
stoked by plummeting winter temperatures. products once the refinery has been modernised.
Beijing, for example, has recorded its coldest Cairo-based Afreximbank is helping to arrange
weather since 1966. the financing, the news agency said.
Purchasers across East Asia have been forced The 210,000 barrel per day (bpd) Port Har-
to ramp up their imports as they have found court facility and NNPC’s other refineries in
existing LNG purchases and gas storages to be Kaduna and Warri were built in the 1970s and
insufficient. At the same time, unplanned pro- are in need of extensive repairs and modernisa-
duction outages around the world – including tion. Their poor state means they can only oper-
in Australia, Malaysia and Qatar – have exacer- ate at a fraction of their combined 445,000 bpd
bated the situation. nameplate capacity.

Week 02 14•January•2021 www. NEWSBASE .com P7