Page 13 - EurOil Week 33

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Azeri-Chirag-Guneshli field delivered 435,100 The two regions’ LNG industries are closely
bpd of crude while State Oil Company of Azer- linked, with US producers seeking long-term
baijan Republic (SOCAR) produced 119,000 buyers in Asia in particular. One US company
bpd. The country has agreed to limit its pro- trying to secure a new Asian investment cur-
duction to 554,000 bpd in May-July under the rently is Tellurian, which has been in the news
OPEC+ production framework. for scaling back the scope of the first phase of its
Looking further ahead the county expects to proposed Driftwood LNG terminal on the US
start up the Karabakh oil and gas field in the Cas- Gulf Coast by deferring construction of some of
pian Sea before the end of 2022, the head of the the pipelines that would serve the facility.
Karabakh operating company, Tahir Dadashov, The company had also recently renewed
told Reuters last week. talks with India’s Petronet LNG over a tentative
“In the early years oil production at the Kara- deal that would include an 18% equity stake in
bakh field will amount to more than 1.5mn Driftwood, as well as the option for the Indian
tonnes per year [30,000 bod],” Dadashov said on company to buy up to 5mn tonnes per year (tpy)
August 12. He added that gas production would from the facility. However, Indian media on
reach 4.5mn cubic metres per day. August 16 cited sources familiar with the matter
The Karabakh operating company, which is as saying Petronet was considering scaling back
a joint venture between SOCAR and Norway’s its proposed $2.5bn investment in Driftwood as
Equinor, has been developing the field since May a result of Tellurian’s overhaul of the project.
2018. Dadashov estimates the field has 21mn A further reminder of link between the LNG
tonnes (153,93mn barrels) of recoverable oil industries in the US and Asia came last week
reserves. when the SK Resolute LNG carrier made the
The executive said support blocks for a new 10,000th Neopanamax transit of the expanded
platform would be installed in the first quarter of Panama Canal since its opening in June 2016.
next year, with engineering works on platform to The expanded canal offers a shorter, and there-
be wrapped by the end of 2022. fore more competitive route for LNG deliver-
ies from the US East and Gulf coasts to Asian
If you’d like to read more about the key events shaping countries.
the former Soviet Union’s oil and gas sector then please
click here for NewsBase’s FSU Monitor . If you’d like to read more about the key events shaping
the global LNG sector then please click here for
A better month for the LNG market NewsBase’s GLNG Monitor .
Things are looking up for the global LNG mar-
ket after several challenging months on both the US seizes Venezuelan gasoline
supply and demand fronts. The US government has stepped up its campaign
US LNG exports are picking up, with Reuters to prevent Iran from selling petroleum products
reporting this week that they are on track to rise to Venezuela.
for the first time in six months. This follows a On August 14, officials in Washington con-
spate of cargo cancellations from US liquefaction firmed that US forces had seized four cargoes of
terminals over the summer, which are continu- Iranian gasoline en route to Venezuela. Tehran
ing, but at a slower pace. responded by acknowledging that it had sup-
Meanwhile, Asian spot LNG prices have plied the fuel but described it as Venezuelan
risen to more than a six-month high over the property, saying that Caracas had already paid
past week. This has been attributed to factors its bill. Venezuela’s government did not respond
including the risk of a potential shutdown at the immediately to reports of the seizure.
Gorgon LNG terminal in Australia, as well as The US action is sure to exacerbate the prob-
something of an uptick in demand, though not a lems of Venezuela’s oil industry. According to
particularly large one as yet. IHS Markit, the South American state shows no

Week 33 20•August•2020 www. NEWSBASE .com P13