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of crude in July and another 96,000 bod of con- particularly large one as yet.
densate, according to the Energy Ministry. The The two regions’ LNG industries are closely
Azeri-Chirag-Guneshli field delivered 435,100 linked, with US producers seeking long-term
bpd of crude while State Oil Company of Azer- buyers in Asia in particular. One US company
baijan Republic (SOCAR) produced 119,000 trying to secure a new Asian investment cur-
bpd. The country has agreed to limit its pro- rently is Tellurian, which has been in the news
duction to 554,000 bpd in May-July under the for scaling back the scope of the first phase of its
OPEC+ production framework. proposed Driftwood LNG terminal on the US
Looking further ahead the county expects to Gulf Coast by deferring construction of some of
start up the Karabakh oil and gas field in the Cas- the pipelines that would serve the facility.
pian Sea before the end of 2022, the head of the The company had also recently renewed
Karabakh operating company, Tahir Dadashov, talks with India’s Petronet LNG over a tentative
told Reuters last week. deal that would include an 18% equity stake in
“In the early years oil production at the Kara- Driftwood, as well as the option for the Indian
bakh field will amount to more than 1.5mn company to buy up to 5mn tonnes per year (tpy)
tonnes per year [30,000 bod],” Dadashov said on from the facility. However, Indian media on
August 12. He added that gas production would August 16 cited sources familiar with the matter
reach 4.5mn cubic metres per day. as saying Petronet was considering scaling back
The Karabakh operating company, which is its proposed $2.5bn investment in Driftwood as
a joint venture between SOCAR and Norway’s a result of Tellurian’s overhaul of the project.
Equinor, has been developing the field since May A further reminder of link between the LNG
2018. Dadashov estimates the field has 21mn industries in the US and Asia came last week
tonnes (153,93mn barrels) of recoverable oil when the SK Resolute LNG carrier made the
reserves. 10,000th Neopanamax transit of the expanded
The executive said support blocks for a new Panama Canal since its opening in June 2016.
platform would be installed in the first quarter of The expanded canal offers a shorter, and there-
next year, with engineering works on platform to fore more competitive route for LNG deliver-
be wrapped by the end of 2022. ies from the US East and Gulf coasts to Asian
countries.
If you’d like to read more about the key events shaping
the former Soviet Union’s oil and gas sector then please If you’d like to read more about the key events shaping
click here for NewsBase’s FSU Monitor . the global LNG sector then please click here for
NewsBase’s GLNG Monitor .
A better month for the LNG market
Things are looking up for the global LNG mar- US seizes Venezuelan gasoline
ket after several challenging months on both the The US government has stepped up its campaign
supply and demand fronts. to prevent Iran from selling petroleum products
US LNG exports are picking up, with Reuters to Venezuela.
reporting this week that they are on track to rise On August 14, officials in Washington con-
for the first time in six months. This follows a firmed that US forces had seized four cargoes of
spate of cargo cancellations from US liquefaction Iranian gasoline en route to Venezuela. Tehran
terminals over the summer, which are continu- responded by acknowledging that it had sup-
ing, but at a slower pace. plied the fuel but described it as Venezuelan
Meanwhile, Asian spot LNG prices have property, saying that Caracas had already paid
risen to more than a six-month high over the its bill. Venezuela’s government did not respond
past week. This has been attributed to factors immediately to reports of the seizure.
including the risk of a potential shutdown at the The US action is sure to exacerbate the prob-
Gorgon LNG terminal in Australia, as well as lems of Venezuela’s oil industry. According to
something of an uptick in demand, though not a IHS Markit, the South American state shows no

Week 33 20•August•2020 www. NEWSBASE .com P7