Page 14 - MEOG Week 23

MEOG nr G MEOG

economies differently and as each country looks private companies to import and sell gasoline,
to the future, different strategies are emerging. helping to boost the country supply security.
Chinese oil importers have seized on cheap While the fuel industry has welcomed the move,
oil prices as economic activity slowly gains there are concerns that the government could
momentum. Crude imports soared to a new backtrack on reforms once international fuel
record of 47.97mn tonnes (11.34mn barrels per prices recover. Nigeria is heavily dependent
day) in May, General Administration of Cus- on imports, and mere rumours of hikes in fuel
toms (GAC) data showed on June 7, easily out- costs have triggered rioting in the past. The road
stripping the previous record of 11.18mn bpd set to market liberalisation is therefore politically
in November 2019. The may figure takes daily fraught.
import averages to 10.54mn bpd in the first five In an encouraging development for Angola,
months, this compares with the full-year aver- London-based investment firm Gemcorp is pre-
age of 10.17mn bpd in 2019. The rebound could paring to take a final investment decision (FID)
continue, with commodity research firm Kpler by the end of this month on a new 60,000 bar-
telling Bloomberg this week that the imports rel per day (bpd) oil refinery in Cabinda. This
could climb to 14mn bpd in June. is one of three plants the Central African coun-
Pakistan, meanwhile, is reportedly consid- try wants to build to make motor fuel imports a
ering the deregulation of gasoline prices amid thing of the past.
growing supply shortages that many within the Meanwhile, Iran is looking to expand its gas-
local industry had warned about some weeks oline storage, in response to a slump in demand
ago. The Pakistani Energy Ministry’s Petroleum caused by the coronavirus and in preparation for
Division has agreed in principle to “completely an expansion of the Persian Gulf star refinery.
deregulate” pricing and marketing of gasoline, Iran was one of the countries hardest hit by the
local news outlet Dawn reported on June 8. The pandemic, with travel restrictions causing gaso-
paper, citing an official record of the division’s line stockpiles to reach unprecedented levels last
talks with oil marketing companies (OMCs), month.
said the ministry had decided to link gasoline If you’d like to read more about the key events
prices to the s&P Global Platts Oilgram Price shaping the downstream sector of Africa and the
Report of the previous month. this would Middle East, then please click here for News-
replace the government’s current method of set- Base’s DMEA Monitor.
ting prices based on state-owned Pakistan state
Oil’s (PsO) import bill. Us wades into German affairs; north sea
Australia’s Queensland state has unveiled a developments
new natural gas royalty model that will adopt The Us is considering additional sanctions in a
a volume-based approaching to calculating last-ditch attempt to prevent Russia from com-
payments rather the current index-based sys- pleting its Nord stream 2 pipeline. But with a
tem. The government has also indicted that it mere 6% of the pipeline left to lay, further puni-
will include a sliding rate scale that will lower tive action is unlikely to thwart the project and
rates for domestic focused production. The new could backfire by further straining Washington’s
mechanism will be locked in place for five years, relations with Berlin.
though industry has already called for the Labor Russia is expected to use two of its own pipe-
government to match the opposition Liberal laying vessels to finish Nord stream 2, which
Party’s election pledge of a 10-year freeze on would likely continue work even if the sanctions
royalties. are applied. Gazprom also appears to have trans-
If you’d like to read more about the key events ferred one of the vessels to another company,
shaping Asia’s oil and gas sector, then please click shielding itself from potential punitive measures.
here for NewsBase’s AsianOil Monitor. In the North sea, Premier Oil has managed to
renegotiate a lower price for a group of BP assets,
nigerian fuel deregulation; initiatives in while also making peace with its main creditor
angola, Iran which opposed the deal. If completed, the trans-
Nigeria has removed a cap on gasoline pump action will be a boon for North sea M&A activ-
prices as it pushes ahead with deregulation of its ity, which has slumped since the March oil price
fuel industry. The move is aimed at encouraging collapse.

P14 www. NEWSBASE .com Week 23 10•May•2020