Page 11 - FSUOGM Week 02 2021

FSUOGM NRG FSUOGM

Trafigura paid the same amount for Vostok Oil the super-major said that as Prelude is a mul-
as its book value. It also puts Vostok Oil’s overall ti-decade project, its focus in on sustained per-
value at $70bn, exceeding Rosneft’s entire mar- formance over the long term.
ket capitalisation of $62bn. However, Shell has backed out of other FLNG
projects, as have other producers, likely deterred
If you’d like to read more about the key events shaping by having witnessed the challenges at Prelude.
the former Soviet Union’s oil and gas sector then please
click here for NewsBase’s FSU Monitor . If you’d like to read more about the key events shaping
the global LNG sector then please click here for
GLNG: Ups and downs in Australia NewsBase’s GLNG Monitor .
LNG-related news from Australia has been
mixed in recent days. Chevron said last week Latin America: Bolivian opportunities
that an inspection of Train 1 at its Gorgon LNG UK-based Echo Energy has signed a co-opera-
project in Western Australia had resulted in weld tion agreement with Bolivia’s GTL International,
quality issues being identified. These are similar a subsidiary of UruboCorp.
to the weld quality issues that kept Train 2 at The two companies have pledged to work
Gorgon offline for months in 2020, and are likely together to promote, identify and develop new
to take at least several weeks to repair. opportunities in the South American country’s
The discovery has raised expectations that hydrocarbon and renewable energy sectors.
Train 3 will also have similar issues that will need They have also agreed to grant each other a six-
to be dealt with once Train 1 is returned to ser- month period of exclusivity.
vice. Chevron has not said how long it expects to So far, Echo has not said whether it is inter-
take to carry out repairs on Train 1. ested in any specific projects in Bolivia. However,
The faulty welds affect propane heat exchang- it has said it believes changing conditions in that
ers – also known as kettles – that are used in the country have served to open up a “window of
liquefaction process. The Australian Financial opportunity” for new investments. Additionally,
Review reported that all of the kettles across it has highlighted UruboCorp’s experience in the
Gorgon’s three trains were manufactured by the local energy sector, saying it hoped to benefit
same company in South Korea. from its association with the Bolivian company.
The prolonged outage at Train 1 comes as Changing conditions may also be a factor in
LNG spot prices in Northeast Asia have risen on EIG Energy Partners’ decision to sell a 27.5%
seasonal winter demand and some supply short- stake in TBG, the operator of the Brazilian sec-
ages. But the impact of the outages at Gorgon is tion of GASBOL, a pipeline built to pump Boliv-
somewhat limited by Chevron only taking one ian natural gas to the Brazilian market, for an
train at a time offline for maintenance. unspecified sum. GASBOL has been operating
Royal Dutch Shell, meanwhile, had more below capacity for some time, as Brazil has been
positive news to report as it returned its giant importing less Bolivian fuel.
Prelude floating LNG (FLNG) project to service. The sale is not indicative of any loss of interest
The facility – the largest floating structure ever in the Brazilian gas sector on EIG’s part, how-
built – had been offline for around a year owing ever. The US-based investment fund said in a
to a technical disruption to its diesel genera- press release announcing the sale that it wanted
tors, which illustrates the complexity of FLNG to expand its involvement in Brazilian gas pro-
technology. jects and hoped to work with Fluxys to achieve
Analysts have said that the remote location this goal.
of the Prelude facility, 475 km off Australia’s west
coast, as well as restrictions related to the corona- If you’d like to read more about the key events shaping
virus (COVID-19) pandemic have complicated the Latin American oil and gas sector then please click
Shell’s efforts to restart operations. Nonetheless, here for NewsBase’s LatAmOil Monitor .

Week 02 13•January•2021 www. NEWSBASE .com P11