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Miller did not disclose a timeframe for realising are estimated to have been cancelled for loading
these projects. The pipeline through Mongolia, from US LNG plants in June and July, and the
known as Power of Siberia 2, enjoys strong polit- latest media reports suggest that 40-45 cargoes
ical support from Moscow. But it is still at the may have been cancelled for loading in August.
study phase, and it could be many years before However, some trade sources cited by Reuters
Russia and China agree a supply contract to last week have suggested that loading a cargo in
underpin its construction, if ever. August might make more sense compared with
Uzbekistan is making progress on several June and July. This is because there is a price
fronts in its energy sector. It has struck a prelim- contango between August and forward months,
inary deal with a group of Russian investors for while shipping rates are low.
the construction of a 1.5-GW gas-fired power In the short term, the gas price differentials
plant that would supply both domestic and between Europe and the US are expected to
Afghan electricity users. It has also launched a remain unfavourable for US producers. And the
$300mn modernisation programme at one of its Australian government also anticipated LNG
two main refineries, aimed at bringing the qual- spot prices to weaken further, with this having a
ity of the plant’s fuel to Europe standards. negative impact on the country’s exports.
This comes as Australia continues to compete
If you’d like to read more about the key events shaping with Qatar for the top spot in global LNG exports
the former Soviet Union’s oil and gas sector then please – with the US having become the third-largest
click here for NewsBase’s FSU Monitor . exporter of the fuel in 2019.

COVID-19 weighs on LNG exports Latin America still coping with COVID-19
LNG exports are slumping as a result of Both Argentina and Colombia are facing the
lower demand globally amid the coronavirus problem of how to cope with lower crude oil
(COVID-19) pandemic, and the outlook for the prices and weaker energy demand.
coming months remains bearish. (See: COVID- With respect to Colombia, a high-ranking
19 weighs on LNG exports as demand remains representative of Fitch Ratings says he expects
depressed, page 11) fallout from the oil price crash and the corona-
This week, Australia’s government esti- virus (COVID-19) pandemic to act as a drag on
mated that the country’s export earnings from the economy for at least two or three years.
LNG would drop by 26% year on year (y/y) to The ratings agency has predicted that the coun-
AUD35bn ($24bn), in the coming financial year, try’s GDP will contract by at least 4.5%, and it
which runs July 2020-June 2021. may revise that figure upward soon.
Meanwhile, the US Energy Information In Argentina, the national oil company
Administration (EIA) reported last week that (NOC) YPF has issued a declaration of force
US LNG exports had declined by more than half majeure, saying it is unable to pay the Belgian
in 2020 so far. Citing data from consultancy IHS company Exmar for services performed since
Markit, the EIA said gas deliveries to US lique- mid-March because of the pandemic. Exmar –
faction terminals had reached a record high of the operator of Tango LNG, the floating facility
9.8bn cubic feet (278mn cubic metres) per day in that is the only working gas liquefaction plant
March, but fell to less than 4.0 bcf (113 mcm) per in the country – has responded to this move by
day in June. Meanwhile, more than 70 cargoes describing it as illegal.

Week 26 03•July•2020 www. NEWSBASE .com P7