Page 9 - AsiaElec Week 02

AsiaElec
SUPPLY AND DEMAND AsiaElec
arrival of term volumes that buyers committed to previously and spot volumes purchased ear- lier in the year, rather than a sudden increase in domestic demand.
Regardless of monthly fluctuations, Bern- stein is upbeat about the long-term demand growth potential in Asia. The firm bases this on policies in China and India to promote the use of natural gas, as well as rapid growth in emerging markets including Pakistan, Bangladesh, Indo- nesia and Thailand.
Meanwhile, the current wave of LNG facility construction is winding up, which is expected to help tighten the market. Bernstein predicts that only about 10mn tonnes per year (tpy) of new LNG production capacity will come online between 2020 and 2023, which would equate to just a third of the annual capacity additions over the last three years.
This could help push up spot LNG prices
in the medium term. In the longer term, how- ever, another glut is thought to be looming, with Bernstein noting that the race to sanction new projects had intensified.
“The seeds of the next cycle are already being planted,” Bernstein warned.
A series of final investment decisions (FIDs) on new ventures have already been made over the past year, and Bernstein anticipates a fur- ther 70mn tpy of LNG capacity receiving the go-ahead over the next 18 months. Projects that are considered likely to reach FID include facil- ities in Australia, Papua New Guinea, Mozam- bique and on the US Gulf Coast – locations where LNG infrastructure already exists or is under development. Not all proposed develop- ments will go ahead, however.
“With a further 110mn tpy of potential pro- jects the competition for market space will be intense,” Bernstein said.™
OUTPUT
PetroVietnam receives 2020 objectives from state
VEITNAM
THE Vietnamese government has raised the bar for state-owned PetroVietnam after the major surpassed its 2019 oil and gas production targets.
Vietnamese Deputy Prime Minister Trinh Dinh Dung has directed state-owned PetroVi- etnam to boost foreign and domestic oil and gas production this year. The official was chairing a review of the company’s progress in 2019 and assigned the company four core tasks for 2020, VNA reported on January 10.
Aside from expanding the company’s pro- duction levels, Dung told PetroVietnam to focus on upstream operational efficiencies, gas indus- try development and securing domestic energy and power supplies. VNA did not provide details about the new 2020 targets.
PetroVietnam produced 11mn tonnes (220,000 barrels per day) of oil from domestic projects and 2mn tonnes (40,000 bpd) from overseas assets, exceeding its annual targets by 6% and 5.3% respectively. The company pro- duced 10bn cubic metres of natural gas, 5.2% higher than its target.
Revenue climbed 17% year on year to VND736.2tn ($31.77bn), 20% higher than the
company’s goal. PetroVietnam contributed VND108tn ($4.66bn) to the state budget, 23.5% above target. The company’s pre-tax profit of VND43.8tn ($1.89bn) was 40% higher than its target.
PetroVietnam aims to produce 20.36mn tonnes (149.24mn barrels) of oil equivalent, 21.6bn kWh of electricity, 1.56mn tonnes of fertilisers and more than 11.8mn tonnes of oil products in 2020. The company’s revenue target has been set at more than VND640tn ($27.63bn) and it aims to contribute more than VND82tn ($3.54bn) to the state budget.
PetroVietnam and its subsidiaries are antici- pated to invest VND620tn ($26.77bn) in 2018- 2020, VNA quoted PetroVietnam Securities Inc. (PSI) as saying on December 11. PSI deputy director-general Bui Huy Long said 30% of this would come from traditional credit lines and bond issuances.
Key projects such as the Thai Binh 2 and Long Phu 1 thermal power plants (TPPs) as well as the Block B-O Mon, Blue Whale and Sao Vang-Dai Nguyet gas projects will require $4bn, Long said.™
Week 02 15 •January•2020 w w w. N E W S B A S E . c o m P9