Page 6 - LatAmOil Week 17 2021

LatAmOil COMMENTARY LatAmOil

Problems with that compressor brought pro- COVID-19. Of the 14, it said, 11 have gone into
duction down for much of 2020 and may do so isolation on the Noble Tom Madden drillship,
again in 2021. while the other three “have been transferred to
The US major is trying to resolve the matter, appropriate isolation facilities onshore under
but it has yet to find an answer to the question the care and custody of their employer.”
of how to keep the Liza Destiny running with- Those remaining on the Noble Tom Madden
out interruptions. Until it does, it is likely to will be moved to shore if they need further care,
see crude oil output and gas flaring continue it noted. Thus far, it added, the outbreak has not
to fluctuate – as they did earlier this month, affected any of the workers stationed on the Liza
when problems with the compression system’s Destiny FPSO.
discharge silencer forced oil production levels These problems are certainly serious. They
down briefly to 30,000 bpd and drove gas flaring are affecting normal offshore operations and
volumes above the agreed maximum of 15mn slowing the pace of development at Liza-1. Even
cubic feet (424,800 cubic metres) per day. so, they have not derailed work at Stabroek – and
On the other hand, the ExxonMobil subsidi- they do not diminish ExxonMobil’s achieve-
ary is also facing a COVID-19 outbreak among ments at the block, which are likely to make
rotational workers supporting its offshore oper- Guyana the 11th country in the world ever to
ations and contractors. On April 23, it confirmed bring oil production as high as 1mn bpd, as
that 14 of these workers had tested positive for UK-based Wood Mackenzie has predicted. ™

MEXICO
US gas exports to Mexico hit new highs

and may rise again in May

US natural gas exports to Mexico recently rose (198 mcm) per day in the five-day period ending
to record highs and are poised to move even fur- April 21. Likewise, Houston-based Tudor, Pick-
ther upwards over the next few months, accord- ering, Holt & Co. (TPH) noted last week that
ing to industry observers. daily import volumes had hit an all-time high of
Delivery volumes are already running high, 7.1 bcf (201.1 mcm) on April 14.
as rising temperatures have boosted demand Mexican demand for US-produced gas is
for gas among Mexico’s thermal power plants set to remain strong in the near term, industry
(TPPs). S&P Global Platts said earlier this week observers believe.
that warmer weather had brought US gas deliv- Platts’ model shows delivery volumes aver-
eries to an all-time peak of nearly 7bn cubic feet aging 6.5 bcf (184.1 mcm) per day in the third
(198.2mn cubic metres) per day on average ear- quarter of the year, and the number could go
lier in April. More than 65% of the total, or 4.6 higher if temperatures remain high and if resi-
bcf (130.3 mcm) per day, went to TPPs, Platts dents of Mexico forego social distancing.
stated. TPH’s forecast is more conservative, as it
Other sources have painted similar pictures, anticipates that US gas shipments will average
with Mexico City-based Gadex reporting on 6.2 bcf (175.6 mcm) per day in the second and
April 23 that import volumes averaged 6.993 bcf third quarters of 2021.

Mexico receives gas from the US via cross-border pipeline (Image: EIA)

P6 www. NEWSBASE .com Week 17 29•April•2021