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GLNG NRG GLNG

Block says it remains “enthusiastically active on It has not yet been disclosed what additional
many fronts.” It has formed a partnership with costs may be involved in producing and selling
international consultancy EPI to help draw up carbon-neutral LNG. However, it comes as the
development plans for both its existing pro- industry is ramping up efforts to illustrate the
jects and others it is looking to acquire from role natural gas can play in the energy transition.
Schlumberger.
Hopes of recovery in Latin America
If you’d like to read more about the key events shaping Several countries in Latin America are looking
the former Soviet Union’s oil and gas sector then please to recover momentum after suffering losses,
click here for NewsBase’s FSU OGM Monitor . either from the coronavirus pandemic or other
incidents.
Carbon-neutral LNG Argentina’s government is currently in
Royal Dutch Shell announced this week that it negotiations with several oil companies on
had agreed to deliver two cargoes of carbon-neu- the resumption of payments under the “Plan
tral LNG to a subsidiary of China National Off- Gas” programme. The programme is designed
shore Oil Corp. (CNOOC). The delivery, to to support the development of natural gas
CNOOC Gas & Power Group, will mark the fields in the Vaca Muerta shale formation,
first carbon-neutral LNG to reach the Chinese which have seen production decline as a result
mainland. (See: Shell to sell two more cargoes of of the virus outbreak, and officials in Buenos
carbon-neutral LNG, page 11) Aires hope that the extra financial support
Shell said all emissions from exploring for will help the country avoid a supply shortage
and producing the natural gas used as feed- during the winter. It would run for four years,
stock for the LNG, as well as the use of the fuel past the end of President Alberto Fernández’s
by the final consumers, are offset by credits current term.
from a variety of nature-based projects. These In Guyana, ExxonMobil has brought oil
include afforestation projects in China’s Qing- production levels back up at the offshore Liza
hai and Xinjiang provinces that the company field. It has resolved glitches with some of the
supports. gas-compression systems that forced it to take
Shell has been supplying a small number of a re-injection well offline earlier in the month.
carbon-neutral LNG cargoes to buyers since Output is back up to 80,000 bpd, according to
June 2019. The first buyers of these cargoes were the head of Guyana’s Environmental Protec-
Tokyo Gas and South Korea’s GS Energy. Shell tion Agency (EPA).
supplied a third carbon-neutral cargo to Taiwan’s Brazil, meanwhile, has kicked off the sale
CPC in March. process for a group of offshore oilfields after
The cargoes being delivered to CNOOC will postponing another tender earlier in the year.
be auctioned through the Shanghai Petroleum State-owned Petrobras is offering up its 100%
and Gas Exchange (SHPGX), which Shell said stake in the group, which includes the Atum,
would offer many downstream gas buyers the Curima, Espada and Xareu sites. These fields
opportunity to decarbonise their energy use. are relatively small, turning out only 4,200
No date has been disclosed for the auction, bpd of oil and 76,900 cubic metres per day of
and the size of the cargoes has not been spec- gas on average. By contrast, the cancelled ten-
ified either. However, Shell said the cargoes der would have given the winner a 10% stake
would provide enough energy to power nearly in Marlim, a field that accounts for about 10%
300,000 homes for an entire year. Separately, of Petrobras’ total output.
the super-major has said that an average LNG
cargo of around 70,000 tonnes results in roughly If you’d like to read more about the key events shaping
240,000 tonnes of carbon dioxide (CO2) emis- the Latin American oil and gas sector then please click
sions across the value chain. here for NewsBase’s LatAmOil Monitor .

Week 25 26•June•2020 www. NEWSBASE .com P7