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field, said in October it had beefed up security at that relations are now starting to improve.
its infrastructure in the country. According to US government data, Cheniere
Over in Russia, the government is talking sent nine LNG cargoes to China between March
up prospects for exporting hydrogen to Japan. and August 2020, after trade resumed. However, a
Russian Deputy Energy Minister Pavel Sorokin deal that the company had been trying to finalise
recently told Japan’s Nikkei that Russia aims to with China’s Sinopec prior to the trade war has still
export 2mn tonnes per year (tpy) of hydrogen not materialised.
by 2035. He said that Russia was already hold-
ing negotiations on hydrogen exports with the If you’d like to read more about the key events shaping
Japanese government, as well as Kawasaki Heavy the global LNG sector then please click here for
Industries and other Japanese companies. NewsBase’s GLNG Monitor .

If you’d like to read more about the key events shaping Latin America: Apache’s Suriname plans
the former Soviet Union’s oil and gas sector then please US-based Apache has indicated that it remains
click here for NewsBase’s FSU Monitor . enthusiastic about the prospects of the offshore
Guyana-Suriname basin.
GLNG: Asia’s ups and downs John Christmann, the company’s CEO, told
The first Chinese deal to buy US LNG since the analysts that his company saw Block 58, the
trade war started between the two countries has site offshore Suriname where it has already
been announced. The deal, unveiled by Foran made three discoveries, as a higher priority
Energy Group, is comparatively small but is seen than US shale. “We’re making a long-term
as a sign of confidence in relations between the US decision because we think there’s going to be
and China normalising. much, much greater benefit,” he said during a
Foran said it had signed an agreement to buy 26 conference call last week.
cargoes of LNG from leading US exporter Cheniere Christmann was speaking around the
Energy between 2021 and 2025. Prices under the same time that Apache reported that it had
deal, which was struck during the annual trade fair filed appraisal plans for two of its discover-
in Shanghai, will be linked to the US’ Henry Hub ies at Block 58, Maka Central and Sapakara.
benchmark. The company expects to take similar steps for
The deal comes shortly after the PipeChina nat- Kwaskwasi, its third discovery, before the end
ural gas project was completed in the third quarter of the year. It is also proceeding with explo-
of this year, allowing third-party access to Chinese ration drilling at the Keskesi field, its fourth
LNG terminals and natural gas pipelines, according target, and intends to sink its next well at a sec-
to comments from Cheniere’s executive vice-pres- tion of the block known as Bonboni.
ident and chief commercial officer, Anatol Feygin. Meanwhile in Brazil, Enauta, an independ-
He added on his company’s third-quarter earnings ent company, has said it may not proceed to
call that Cheniere did “not see this as a one-off”. full commercial development of the Atlanta
Chinese buyers stopped signing longer-term heavy crude field following the decision of
supply contracts with US LNG producers in 2018, its partner Barra Energia to exit the project.
after Beijing introduced retaliatory tariffs on ship- With Barra Energia is talking about farm-
ments of the super-chilled fuel from the US amid ing out its 50% stake in Atlanta, Enauta has
an escalating trade war. The tariff was subsequently pledged to speed up its consideration of pro-
raised from 10% initially to 25% in June 2019. posals to return its own stake to the Brazilian
US-China LNG trade stopped altogether in government.
March 2019, resuming in March 2020, after the two In related news, Australia’s Karoon Energy
countries agreed to a preliminary trade deal and has wrapped up its acquisition of a 100%
China agreed to ramp up purchases of US energy. stake in Baúna, an offshore field in the San-
China introduced a tariff waiver programme in tos basin, from Petrobras. The company
a bid to increase imports, but the country’s largest said in a statement that it had agreed to pay
buyers of LNG remained hesitant to strike long- $380mn in “firm” consideration and up to
term deals amid still-fragile bilateral relations and $280mn in “contingent” consideration. It also
ongoing market volatility. However, there are hopes described Baúna as “a quality production asset

P10 www. NEWSBASE .com Week 45 11•November•2020