Page 14 - AsianOil Week 01 2023

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Warrego Energy share price group will continue to offer stable transport Chinese LNG demand set to rise
services, placing the highest priority on
rockets 9% as Rinehart doubles securing the safety of crewmembers, cargo, in 2023
and vessels, as a company that develops a
down on takeover social infrastructure business centered on China's liquefied natural gas (LNG)
ocean shipping, transporting commodities
demand is forecast to recover in 2023 as
The Warrego Energy Ltd (ASX: WGO) essential to people’s lives,” he said. the country emerges from COVID-19
share price is roaring higher on January 6 “Considering about strategic controls to become the bright spot in Asia's
after Hancock Energy – owned by mining importance of energy supply under current consumption for the super-chilled fuel.
magnate and Australia’s richest person Gina circumstances, we will continue our energy China's demand is set to rebound to
Rinehart – upped its takeover bid for the transport business, mainly LNG, from between 70 million and 72 million tonnes
ASX company. Russia, as long as we can, and this is also in 2023, 9% to 14% higher than in 2022, say
Rinehart has today slapped a 36-cent in line with the direction of the Japanese analysts at Rystad Energy, Wood Mackenzie
per share bid on the table. That’s a 28.6% government’s policy.” and ICIS.
increase on the billionaire’s previous 28-cent Energy imports from Sakhalin 1 and But imports to China, which has the
offer. Sakhalin 2 projects in Russia’s Far East are world's second-largest economy, would
The newly hiked bid follows a 32-cent of strategic importance for Japan. As of likely fall short of record 2021 levels,
all-scrip offer from Strike Energy Ltd (ASX: August 2022, Japan was the world’s largest because prices would stay high and
STX) last month, as well as the withdrawal importer of LNG with 4.3 billion metric lingering effects of the pandemic would
of former suitor Beach Energy Ltd (ASX: tons imported, with approximately 10 limit appetite, they added.
BPT) from the takeover race. percent of its LNG from Russian suppliers, Those high prices would continue
Interestingly, however, the market data from the U.S. government shows. to suppress demand from the Chinese
appears to be hopeful the company could go Due to its large dependence on Russian industrial and power sectors, both highly
for more than all currently tabled offers. gas, the Japanese government was one of sensitive to energy costs, said Wei Xiong, a
It has bid the Warrego share price 9.28% the rare governments to encourage firms senior analyst at Rystad Energy.
higher to trade at 37.7 cents right now. Mitsui & Co. and Mitsubishi Corporation "Growth momentum across sectors may
Furthermore, the stock hit a 52-week to continue as investors in the Russian only be restored after the high infections
high of 38.5 cents earlier today – marking Sakhalin 2 gas project. subside and when employees are back to
an 11.6% surge The Sakhalin II LNG project lost a major work," she said. "It will be a gradual process
shareholder last year when Shell decided and may take a few months to restore."
to exit its 27.5 percent stake, writing off an State energy officials have estimated that
MOL CEO: We will transport LNG investment with a book value of $1.6 billion. in 2022 China's annual demand for natural
gas may have fallen for the first time in two
Russian President Vladimir Putin
from Russia as long as we can ordered the project to be transferred from decades, because of weak demand from
its Bermuda-based operator to a domestic
industries disrupted by pandemic controls.
Japanese shipping heavyweight Mitsui company and told foreign shareholders they China was the world's top LNG importer
O.S.K. Lines plans to resume energy would have to re-apply to maintain their in 2021 but Japan held the position last year.
transport business, mainly of LNG, from stake in the new entity. Gas prices spiked last year after Russia,
Russia as long as possible, the company’s In August 2022, the Kremlin approved following its invasion of Ukraine, cut
President & CEO Takeshi Hashimoto said applications from the two Japanese trading supplies to Europe. This led Europe to
in a New Year’s address. houses Mitsui and Mitsubishi Corp. to import record amounts of LNG, pushing
“Disruptions in supply chains, soaring transfer their stakes to the new operator. Asian spot LNG prices <LNG-AS> to
energy and grain prices, global inflation, Mitsui still holds a 12.5% stake in the historical highs.
and so on—turmoil continues in a variety of project.
fields. Some companies decided to withdraw
from Russia-related business, but our

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