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GLNG: IEA highlights LNG’s role If you’d like to read more about the key events shaping
The International Energy Agency (IEA) last the global LNG sector then please click here for
week highlighted the role of LNG in adjusting to NewsBase’s GLNG Monitor.
a drop in global gas demand in the wake of the
coronavirus (COVID-19) pandemic. The agency Latin America: Gas and refineries
published its World Energy Outlook 2020 and its Argentina’s natural gas production may have
Global Gas Security Review last week, with LNG fallen in both July and August, but the adminis-
featuring significantly in both. tration of President Alberto Fernandez unveiled
The IEA noted that LNG remains central a new plan to stimulate the gas sector last week.
to ensuring the security of global gas supplies, At a ceremony marking the launch of the plan,
adding that the super-chilled fuel played a major Fernandez stated that the national oil company
role in the market’s adjustment after COVID-19 (NOC) YPF was slated to invest some $1.8bn in Further
made gas demand crash. gas production over the next three years.
Monthly global exports of LNG fell by 17% Speaking at the same event, Energy Minis- challenges lie
between January and July 2020, the agency said, ter Dario Martinez said that Buenos Aires was ahead for the LNG
discussing the role the industry is playing in bal- setting up a four-year tender scheme that would
ancing gas markets. LNG contracting activity allow producers to offer gas to the market at industry, with one
collapsed from a high of 95bn cubic metres in prices of up to $3.7 per million Btu. This scheme
2018 to about 35 bcm in the first nine months is designed to secure more than 70mn cubic third of active
of 2020. metres per day of gas for Argentina’s domestic
“Since the IEA started tracking flexibility in market, while ensuring that domestic producers contracts due to
LNG markets in the first edition of the Global are paid an adequate price, he commented. expire over the
Gas Security Review five years ago, we have seen In related news, the Argentinian unit of the
a notable improvement across a range of LNG Brazilian oil company Raizen has announced next five years
market flexibility metrics. This is improving plans to invest $715mn over the next three years
security of supply and was critical in enabling the to modernise and expand its Dock Sud refinery
market to adjust to the historic demand shock in Avellanada. The project will boost the plant’s
witnessed in the first half of 2020,” the IEA’s exec- throughput capacity from the current level of
utive director, Fatih Birol, said in a statement. 110,000 barrels per day (bpd) and create thou-
In the World Energy Outlook, meanwhile, sands of new jobs, the company says.
the agency noted that a record year of approvals Also in the downstream sector, Petroperu has
for new liquefaction projects in 2019 had now launched bidding for service contracts as part of
been followed by a year with no new projects the long-delayed modernisation of the Talara
green-lit – and none likely by the end of 2020. refinery. The state-owned company is looking to
Further challenges lie ahead for the LNG award 10-year operational management service
industry, the IEA warned, with one third of contracts for work on the plant’s auxiliary units.
active contracts due to expire over the next five Further north, Mexican officials say that
years. Over the same period, global liquefaction state-owned Pemex has wrapped up work on the
capacity is projected to increase by 20% from first phase of the Dos Bocas oil refinery, which
projects that are currently under development, is now under construction in Tabasco State.
according to the agency. The project was 24% complete as of October 18,
“These two factors will strongly impact the according to Oil & Gas Journal.
structure of LNG supply, and create new oppor-
tunities for buyers and challenges for marketers If you’d like to read more about the key events shaping
in a context of demand uncertainty,” the IEA the Latin American oil and gas sector then please click
said. here for NewsBase’s LatAmOil Monitor.

Week 42 21•October•2020 www. NEWSBASE .com P11