Page 15 - MEOG Week 23

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North sea juniors Egdon Resources and Cluff specialised platform for what is expected to
Natural Resources are pushing ahead with devel- be the first gas field on Russia’s Arctic shelf to
opment plans, despite the current market condi- start production. Kamennomysskoye-more is
tions. Egdon has secured licence extensions for thought to contain 550bn cubic metres of gas
the Resolution and Endeavour gas discoveries, and will flow 14.5 bcm per year at full capacity.
bringing it one step closer to completing a farm- These projects likely have a breakeven point
out to Royal Dutch shell. Cluff, meanwhile, says considerably higher than current prices, how-
it is still committed to drilling at the Pensacola ever, raising questions about how quickly they
and selene finds, even though one of the wells will see first production.
will be delayed by a year. It too is partnered with If you’d like to read more about the key events
the Anglo-Dutch major. shaping the former soviet Union’s oil and gas
If you’d like to read more about the key events sector, then please click here for NewsBase’s FsU
shaping Europe’s oil and gas sector, then please Oil & Gas Monitor.
click here for NewsBase’s EurOil Monitor.
full storage in europe shifts LnG trade
russia commits to longer guts flows
Russia and its OPEC+ allies agreed a one-month The Us could find itself receiving more LNG
extension to record output cuts in a meeting on cargoes as a lack of available storage capacity
June 6. in Europe leads to shipments being directed
The alliance of oil producers will now keep elsewhere.
9.7mn barrel per day (bpd) of supply offline until On June 8 a tanker from trinidad was
the end of July and then ease the cuts. OPEC+’s reported to have arrived at Dominion Energy’s
decisiveness, together with recovering demand, Cove Point LNG terminal in Maryland over the
should help stabilise the market, with analysts weekend. Meanwhile it is thought that another
forecasting that oil could rise back up to $50 per tanker, Madrid spirit, sailing from Nigeria may
barrel as a result. also unload its cargo of the super-chilled fuel in
Those OPEC+ members that have failed to the Us.
keep their commitments so far, namely Iraq and This comes after Us gas futures started trad-
Nigeria, will have to compensate for this with ing at a premium to European benchmarks in
greater reductions during the rest of the year. April for the first time in 10 years. This, com-
Low prices have not checked the Arctic ambi- bined with filling storage capacity in Europe,
tions of Russia’s oil and gas companies. prompted buyers to cancel a number of upcom-
state oil firm Rosneft has reportedly asked ing cargoes scheduled for loading from Us LNG
the government to auction off licences for three terminals. Meanwhile, analysts have said it could
gas fields in Russia’s far north. It appears that the make sense under these circumstances to send
company’s plan is to establish its own LNG pro- some LNG to the Us for storage.
duction in the region. It has long coveted rival Most of the Us’ operating LNG plants began
Novatek’s success in the LNG sphere, but has their life as import terminals before being con-
failed to advance any projects of its own. verted to liquefaction in recent years. They are
The company wants to develop the three gas still able to receive cargoes as well as send them
deposits as part of its Vostok Oil project. Few out.
details have been revealed about Vostok Oil, According to Reuters, 21 LNG cargoes were
which Rosneft CEO Igor sechin has claims could delivered to the Us last year – also mostly from
one day flow up to 2mn barrels per day (bpd) trinidad – while over 500 were exported.
of oil. But despite Rosneft’s secrecy, the $160bn Demand for LNG in Europe remains, how-
scheme is expected to secure large tax breaks and ever, despite short-term challenges caused by
financing from the government. storage capacity filling amid the coronavirus
Meanwhile, Gazprom has ordered a (COVID-19) pandemic. It was recently reported

Week 23 10•May•2020 www. NEWSBASE .com P15