Page 10 - FSUOGM Week 25

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Block says it remains “enthusiastically active on industry is ramping up efforts to illustrate the
many fronts.” It has formed a partnership with role natural gas can play in the energy transition.
international consultancy EPI to help draw up
development plans for both its existing pro- If you’d like to read more about the key events shaping
jects and others it is looking to acquire from the global LNG sector then please click here for
Schlumberger. NewsBase’s GLNG Monitor .

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

P10 www. NEWSBASE .com Week 25 24•June•2020