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Those OPEC+ members that have failed to keep Europe leads to shipments being directed else-
their commitments so far, namely Iraq and Nige- where. On June 8 a tanker from Trinidad was
ria, will have to compensate for this with greater reported to have arrived at Dominion Energy’s
reductions throughout the rest of the year. Cove Point LNG terminal in Maryland over the
Low prices have not checked the Arctic ambi- weekend. Meanwhile, it is thought that another
tions of Russia’s oil and gas companies. State oil tanker, Madrid Spirit, sailing from Nigeria may
firm Rosneft has reportedly asked the govern- also unload its cargo of the super-chilled fuel in
ment to auction off licences for three gas fields in the US.
Russia’s far north. It appears that the company’s This comes after US gas futures started trad-
plan is to establish its own LNG production in ing at a premium to European benchmarks in
the region. It has long coveted rival Novatek’s April for the first time in 10 years. This, com-
success in the LNG sphere, but has failed to bined with filling storage capacity in Europe,
advance any projects of its own. prompted buyers to cancel a number of upcom-
The company wants to develop the three gas ing cargoes scheduled for loading from US LNG
deposits as part of its Vostok Oil project. Few terminals. Meanwhile, analysts have said it could
details have been revealed about Vostok Oil, make sense under these circumstances to send
which Rosneft CEO Igor Sechin has claimed some LNG to the US for storage.
could one day flow up to 2mn bpd of oil. But Most operating LNG plants in the US began
despite Rosneft’s secrecy, the $160bn scheme is their life as import terminals before being con-
anticipated to secure large tax breaks and financ- verted to liquefaction in recent years. They can
ing from the government. still receive cargoes as well as send them out.
Meanwhile, Gazprom has ordered a special- According to Reuters, 21 LNG cargoes were
ised platform for what is expected to be the first delivered to the US last year – also mostly from
gas field on Russia’s Arctic shelf to start produc- Trinidad – while over 500 were exported.
tion. Kamennomysskoye-more is thought to Demand for LNG in Europe persists, how-
contain 550bn cubic metres of gas and will flow ever, despite short-term challenges caused by
14.5 bcm per year at full capacity. These pro- storage capacity filling amid the coronavirus
jects likely have a breakeven point considerably (COVID-19) pandemic. It was recently reported
higher than current prices, raising questions that 100% of the regasification capacity at the
about how quickly they will see first production. LNG terminal in Swinoujście, Poland, had been
reserved. The terminal is in the process of being
If you’d like to read more about the key events shaping expanded. Meanwhile, a new deal has brought
the former Soviet Union’s oil and gas sector then the reserved capacity at Croatia’s Krk facility,
please click here for NewsBase’s FSUOGM Monitor. which is currently under construction and due
to start up in 2021, to 80%.
Full storage capacity in Europe shifts LNG
trade flows If you’d like to read more about the key events shaping
The US could find itself receiving more LNG the global LNG sector then please click here for
cargoes as a lack of available storage capacity in NewsBase’s GLNG Monitor.

Week 23 10•June•2020 www. NEWSBASE .com P9