Page 11 - LatAmOil Week 44 2020

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Speaking to investors on October 29, Novatek the super-major seeks to cut spending amid this
CFO Mark Gyetvay said the LNG exporter year’s industry downturn, despite only joining
“remains absolutely committed to its portfolio the consortium last year.
strategy to deliver up to 70mn tonnes of LNG” “ExxonMobil is evaluating all appropriate
per year (tpy) by 2030. Novatek expects global steps to significantly reduce capital and operat-
LNG consumption to reach 365mn tonnes in ing expenses in the near term as a result of mar-
2020, up 2% year on year, and sees it doubling to ket conditions and commodity price decreases,”
over 700mn tonnes by 2040. This growth will be an ExxonMobil spokesperson told Pakistani
driven by gains in the Asia-Pacific region, where financial daily Business Recorder.
economies are expanding fast and governments The company continues to pursue LNG
hope to improve air quality by phasing out coal. import plans elsewhere in Asia, having signed
In the shorter term, the CFO said that while a memorandum of understanding (MoU) last
gas prices were still lower than the pre-corona- week to develop an integrated LNG-to-power
virus level, the recovery is underway. A rise in project in the Vietnamese city of Hai Phong.
forward curve prices for the upcoming winter According to a joint press release with Japan’s
reflects expectations of colder weather ahead, JERA, ExxonMobil has submitted a master plan
Gyetvay said. application with a project concept for consid- While gas
Over in Kazakhstan, the government has put eration and potential inclusion in Vietnam’s prices are still
up for auction 10 oil and gas blocks in the Atyrau National Power Development Plan (PDP). Hai
region, marking the country’s first ever online Phong City, for its part, has submitted a letter lower than the
contest for acreage. Authorities hope to attract of recommendation to include power demand
interest from foreign investors despite restric- with potential locations of power plants and pre-coronavirus
tions put in place in response to the coronavirus LNG import infrastructure. The submissions
(COVID-19) pandemic and weak market con- are awaiting government approvals. level, the
ditions. Astana expects that the Zaburunye and Separately, the second train at Chevron’s Gor- recovery is
Sarayshky blocks to attract the strongest inter- gon LNG project remains offline, but the com-
est, and their market value has been estimated at pany said in its third-quarter earnings call that underway
$63mn and $57mn respectively. weld repairs and testing on the train had been
completed. Chevron is now preparing to restart
If you’d like to read more about the key events shaping LNG production from the train in the second
the former Soviet Union’s oil and gas sector then half of November. The super-major anticipates
please click here for NewsBase’s FSU Monitor . taking Train 1 offline to inspect its propane
heat exchangers for similar weld quality issues
GLNG: Asia’s ups and downs shortly after Train 2 is back in service. A similar
Certain Asian LNG projects have suffered approach will be taken with Train 3 after Train
setbacks over the past week, while good news 1 is back online following inspections and – if
has been reported elsewhere. In late October, it necessary – repairs.
was reported that ExxonMobil had decided not
to proceed with plans to participate in an LNG If you’d like to read more about the key events shaping
import terminal in Pakistan, and had exited the the global LNG sector then please click here for
Energas Terminal consortium. This comes as NewsBase’s GLNG Monitor.

Week 44 05•November•2020 www. NEWSBASE .com P11