Page 10 - FSUOGM Week 30

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at the expense of heavier and less valuable fuels. advantage of intense competition among sellers
If you’d like to read more about the key events shaping and low prices.
the former Soviet Union’s oil and gas sector then please If you’d like to read more about the key events shaping
click here for NewsBase’s FSU Monitor. the global LNG sector then please click here for
NewsBase’s GLNG Monitor.
GLNG: All eyes on Asian LNG
Significant developments in the LNG space – in Latin America: Brazil offshore
terms of new projects, trends and milestones – In Latin America, Brazil continues to focus on
have largely come from Asia over the past few the development of its offshore oil resources.
days. These include progress on new LNG-to- Petrobras, the state-owned oil and gas opera-
power projects. tor, has announced plans to tender contracts for
Details emerged last week of the LNG-to- the construction of three new floating produc-
power project being proposed for Vietnam by tion, storage and off-loading (FPSO) vessels. The
Chan May LNG, which is considering investing company will use all of the new FPSOs to develop
up to $6bn in a 4-GW power plant, LNG import the Buzios oilfield, one of its largest offshore dis-
terminal and storage facilities. The venture is coveries to date.
considered likely to end up buying at least a por- Meanwhile, the national oil regulator ANP
tion of its LNG from the US, assuming it goes has reported that Royal Dutch Shell’s latest explo-
ahead. ration campaign at the Saturno field turned out
Later in the week, Myanmar’s govern- to be a disappointment. After wrapping up drill-
ment gave written approval to plans by three ing last month, Shell concluded that the new well
Japanese trading companies – Marubeni, contained no hydrocarbons. In response, Petro-
Sumitomo and Mitsui & Co. – to build an bras began talking about using an artificial intel-
LNG-to-power project. Media reported that ligence (AI) solution to reduce the possibility of
the next steps include finalising detailed plant dry holes.
designs and negotiating on power pricing In neighbouring Guyana, ExxonMobil (US)
with a local utility, with this process antici- has reportedly brought oil production levels at
pated to take 18-24 months. the offshore Liza field up to 100,000 bpd. This
These steps forward come as Russia continues puts Guyana’s government on track to load its
to carve out a market for its LNG exports in Asia. third 1mn-barrel cargo of crude in early August,
This week, Russia’s LNG exports to China were according to Mark Bynoe, the head of the coun-
reported to have reached 396,000 tonnes of LNG try’s energy department.
in June, compared with 340,000 tonnes arriving Further west, a subsidiary of Colombia’s nat-
in the Asian country from the US. ural gas transportation and distribution concern
Meanwhile, an LNG delivery from Russia Promigas has paid nearly $5bn for a 100% stake
to Japan also made the news. The ice-breaking in Peru’s Gascomprimido (Gascop). The deal will
Vladimir Rusanov LNG carrier departed the allow the former company to expand its opera-
Yamal LNG terminal on June 29, and made its tions in Peru.
maiden call at Ohgishima, Tokyo Bay. The ves- Elsewhere in the region, Mexico’s government
sel became the first ice-breaking LNG carrier appears to be preparing for its next oil hedge. The
to arrive in Japan using the Northern Sea Route Finance Ministry has reportedly asked US lend-
(NSR). ers to submit quotes for the yearly risk manage-
And news of a potential long-term deal – a ment programme, which helped it weather the
rarity in the current market – also emerged in crash in crude prices earlier this year.
the past week. Industry sources told Reuters If you’d like to read more about the key events shaping
that China’s Sinopec was seeking LNG for deliv- the Latin American oil and gas sector then please click
ery over a 10-year period as it sought to take here for NewsBase’s LatAmOil Monitor.

P10 www. NEWSBASE .com Week 30 29•July•2020