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Indeed, importers may stand to benefit from a Latin America’s unconventional concerns
growing variety of options for sourcing their Two Latin American states are taking a close
LNG supply, as well as low prices for the fuel. look at unconventional oil and gas developments
Under these circumstances, countries that are this week.
ramping up their LNG imports may find it easier Colombia appears to be gearing up to
to attract foreign investors. award contracts for pilot projects that will
Last week, it was reported that ExxonMo- involve hydraulic fracturing (fracking).
bil was considering investing in new LNG-to- Armando Zamora, the head of the national
power projects in Vietnam. A statement from hydrocarbons regulator ANH, said last week
the Vietnamese government suggested that that the government had invited companies
there was potential to invest in a 4,000-MW to submit proposals and hoped to sign deals
LNG-to-power plant in the northern port city of by September or October. Fracking could help
Haiphong, or a 3,000-MW plant in the Mekong the country replenish its reserves and increase
Delta province of Long An. production.
The government added that the plants could In Argentina, Shell and its local partner, state-
use LNG imported from the US or elsewhere. It owned YPF, suspended operations last week at
suggested that a plant in Haiphong could start the Bajada de Añelo block in Vaca Muerta, one of
generating power at some point between 2025 the world’s largest shale formations. They did so
and 2030. in response to seismic activity in Neuquén Prov-
The LNG industry is hoping that the market ince, near the Andes. No other fields have been
will have rebalanced by this point, with excess affected, but other licence areas in Vaca Muerta
supply being absorbed and demand rising again. have seen production fall this year as a result of
Currently, the global oversupply of LNG contin- shrinking demand stemming from the corona-
ues to weigh on the market and depress prices. virus pandemic.
The US Energy Information Administration Meanwhile, Bahamas Petroleum Co. (BPC)
(EIA) has predicted that exports of US LNG will continues to expand its regional footprint
have dropped by 60% in July from their peak in through acquisitions. The company has taken
January. control of Columbus Energy, an independent
Meanwhile, Total’s president of gas, renew- operator that is working to develop onshore
ables and power, Philippe Sauquet, has warned fields in Trinidad and Suriname. These assets,
that the cancellation of a growing number of car- together with ongoing projects in The Baha-
goes scheduled for loading this summer should mas and Uruguay, will turn BPC into an oil
serve as a warning that new LNG projects will and gas “champion” focusing on the Caribbean
not automatically be profitable. and Atlantic margin, the company said in a
Not that all LNG exporters in the US have statement.
been deterred. On June 15, US regulators Elsewhere in the region, Guyana has reported
approved Venture Global LNG’s request to pro- that its second cargo of oil exports fetched
ceed with limited site preparation for its pro- around $35mn, or $20mn less than its first cargo,
posed Plaquemines LNG terminal in Louisiana. which went to market in February. These reve-
The company said it was planning to start early nues brought the sovereign wealth fund’s balance
construction work on Plaquemines in mid-2020 up to nearly $95mn, according to government
before achieving financial close on the project officials in Georgetown.
late this year. Construction is also currently
under way on Venture Global’s Calcasieu Pass If you’d like to read more about the key events shaping
LNG project, also in Louisiana. (See: Venture the Latin American oil and gas sector then please click
Global takes steps forward on second plant, page here for NewsBase’s LatAmOil Monitor .
15)
Middle Eastern malaise
If you’d like to read more about the key events shaping Last week, focus was on the much antici-
the global LNG sector then please click here for pated OPEC+ meeting to consider and agree
NewsBase’s GLNG Monitor . oil production cuts beyond the end of June.

Week 24 18•June•2020 www. NEWSBASE .com P7