Page 7 - GLNG Week 36

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To say that the controversial pipeline project has that this was not the worst-case scenario.
suffered more than its fair share of challenges Chevron is due to take Trains 1 and 3 offline
over the years is an understatement. However, to inspect the heat exchangers for similar issues,
NewsBase does not expect Germany to shift its and now says it hopes that the work at Train 2
position on Nord Stream 2 when the pipeline can help those inspections – and any necessary
is so near completion, especially given the very repairs – to be more efficient.
clear benefits it will provide for the German Separately, Royal Dutch Shell said on Sep-
economy. tember 4 that it had begun restart procedures at
In other news, Russia has, as expected, its Prelude FLNG facility and the gas fields off-
restored nearly 500,000 barrels per day (bpd) shore Broome that supply feedstock to the vessel.
of oil supply last month, after OPEC+ cuts were However, Shell is reported to have run into
eased. It did so as 13 OPEC members brought challenges almost immediately. A source on
back a further 1mn bpd. board the vessel was quoted by news agencies as
The rise in deliveries has occurred at a time saying the restart had some issues with “multi-
when the recovery in global oil demand is ple trips” of the plant and two swivels inside the
stalling. The summer driving season is ending, turret that moors the giant LNG facility in place.
while the economic fallout from the pandemic And Shell is reported to have suspended gas
continues and some countries are re-imposing flows to Prelude as a precaution.
lockdowns. Meanwhile, global stocks of crude There is now speculation that Prelude –
oil and refined products remain at a record high. which is thought to be one of the most complex
While efforts by the OPEC+ group have LNG facilities in the world – may not be back on
driven the market’s recovery so far, the easing stream until 2021. The facility has been offline
of cuts now is bad news for other suppliers – since February as a result of technical issues.
including Russia.
Latin America: Policy initiatives
If you’d like to read more about the key events shaping Mexico, Colombia and Brazil are all wrestling
the former Soviet Union’s oil and gas sector then please with new policy initiatives this week.
click here for NewsBase’s FSU Monitor . In Brazil, the Chamber of Deputies, the lower
house of the National Congress, has approved
GLNG: Restart troubles in Australia the basic text of a bill that calls for opening up
Attempts to restart liquefaction capacity that has the domestic natural gas market to even more
been offline in Australia – namely, the second private competition.
production train at Gorgon LNG and the Prel- The legislation is designed to support pre-
ude floating LNG (FLNG) facility – are running vious efforts to break state-owned Petrobras’
into obstacles. (See: Restart troubles for Austral- monopoly on the production, processing and
ian LNG facilities, page 9) transport of gas.
On September 3, Chevron Australia said it In Colombia, legislation that aims to provide
would require extra time to complete repairs of tax breaks for unconventional oil and gas pro-
propane heat exchangers on Train 2 at the Gor- jects has stalled in the legislature, raising new
gon terminal on Barrow Island, off the northwest questions about plans for pilot projects involving
coast of Western Australia. Chevron had initially the use of hydraulic fracturing.
anticipated completing the repairs and returning These projects have generated no small amount
Train 2 to service in September, but now says it of controversy in Colombia, with opponents
expects the restart in October. playing up the environmental risks of frack-
The company said that following its ongo- ing and backers emphasising the potential for
ing technical work, it was further refining its increasing the country’s reserves.
approach and had decided that some welds in In Mexico, the government is preparing to
targeted areas would require additional work. A unveil a new programme for supporting the
trade union had previously raised concerns that energy industry within the next few weeks.
the heat exchangers would need to be replaced The programme is likely to prioritise the
altogether, so while the repairs are more exten- interests of Pemex, the national oil company
sive than Chevron initially expected, it appears (NOC) over the private sector. According to the

Week 36 11•September•2020 www. NEWSBASE .com P7