Page 9 - GLNG Week 24 2021

GLNG EUROPE GLNG

European gas prices surge above

$360 per 1,000 cubic metres

PERFORMANCE NATURAL gas prices on European spot markets placed into storage so far this injection season,
have continued their upward ascent, surging to while 66 bcm of gas was withdrawn during
above $360 per 1,000 cubic metres, according to last winter. Gazprom warns this poses a risk to
Gazprom. energy security.
The spot price on the NCG gas hub in Ger- The European gas market remains “very
many hit $363.8 per 1,000 cubic metres on June robust” and “undeniably bullish,” analysts at BCS
14, or more than $100 above the price in Feb- Global Markets wrote in a research note on June
ruary, Gazprom told reporters on June 16. The 16. “Prices are at winter-like levels, and indeed
company also noted slow injection rates at Euro- are challenging the highest prices seen in at least
pean gas storage facilities. four years. Meanwhile, Asian gas prices continue
Gas prices are typically higher in winter and their own long winning streak, pulling LNG to
lower in summer, giving companies an incentive that region and away from Europe.”
to store more volumes during the hotter months These bullish conditions are good news for
of the year. But this year is anything but typical, Gazprom’s share price, which touched $7.71 per
as prices have surged in recent months because share on June 14, from a low of $5.7 per share
of tight supply and growing demand driven by in mid-April. The company said in May it was
the post-coronavirus (COVID-19) economic targeting a near 12% growth in gas production
recovery. in 2021. It also aims to increase its EBITDA by
According to Gas Infrastructure Europe 50% this year to $30bn, deputy chairman Famil
(GIE), only 13.6bn cubic metres of gas has been Sadygov said at a press conference on June 16.™

MIDDLE EAST

Kuwait looks for first LNG

cargo for Al-Zour terminal

PROJECTS & STATE-OWNED Kuwait Petroleum Corp. Al-Zour’s petchem slate will include 1.4mn
COMPANIES (KPC) was reported this week to be searching tpy of paraxylene (PX), 940,000 tpy of polypro-
for a cargo with which to commission its new pylene (PP) and 420,000 tpy of gasoline.
permanent LNG import terminal at the south- KIPIC had set a target commissioning date
ern port of Al-Zour. of late 2020 for the refinery but this was pushed
A report by Reuters quoted trade sources as back to Q1 2021 as restrictions relating to coro-
saying that KPC was seeking bids by July 14 for navirus (COVID-19) slowed progress.
cargo delivered ex-ship (DES) for delivery on Several services firms and contractors
July 5 or 6 at the LNG import terminal known involved in the development of Al-Zour were
as LNGI. reported to have attempted to invoke force
The 22mn tonne per year (tpy) facility is part majeure with restrictions having made it impos-
of a massive new downstream hub at Al-Zour sible to meet deadlines, while Kuwait recently
developed by KPC subsidiary Kuwait Integrated re-introduced measures to halt the spread of
Petroleum Industries Co. (KIPIC), which was COVID-19 and restricted travel into the country
set up for the purpose. The $16.1bn complex in early February.
will be home to a 615,000 barrel per day (bpd) Test runs are understood to be ongoing,
refinery, which is due for commissioning in while oil feedstock began flowing to the refinery
November, with a 2.8mn tpy petrochemical through a dedicated pipeline on December 1.
facility expected to follow with a provisional Imports of LNG are seen playing a major role
date set for 2024. in Kuwait’s aim to increase the use of cleaner
LNGI is home to eight storage tanks with a fuels, with the same aim aided by the recent com-
capacity of 225,000 cubic metres and a regasifi- pletion of its $15.7bn Clean Fuels Project (CFP)
cation facility capable of processing 3bn cubic which covered the overhaul and expansion of its
metres per day of gas. two key existing oil refineries.™

Week 24 18•June•2021 www. NEWSBASE .com P9