Page 7 - GLNG Week 45

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field, said in October it had beefed up security at long-term deals amid still-fragile bilateral relations
its infrastructure in the country. and ongoing market volatility. However, there are
Over in Russia, the government is talking hopes that relations are now starting to improve.
up prospects for exporting hydrogen to Japan. According to US government data, Cheniere
Russian Deputy Energy Minister Pavel Sorokin sent nine LNG cargoes to China between March
recently told Japan’s Nikkei that Russia aims to and August 2020, after trade resumed. However, a
export 2mn tonnes per year (tpy) of hydrogen deal that the company had been trying to finalise
by 2035. He said that Russia was already hold- with China’s Sinopec prior to the trade war has still
ing negotiations on hydrogen exports with the not materialised.
Japanese government, as well as Kawasaki Heavy
Industries and other Japanese companies. Latin America: Apache’s Suriname plans
US-based Apache has indicated that it remains
If you’d like to read more about the key events shaping enthusiastic about the prospects of the offshore
the former Soviet Union’s oil and gas sector then please Guyana-Suriname basin.
click here for NewsBase’s FSU Monitor . John Christmann, the company’s CEO, told
analysts that his company saw Block 58, the
GLNG: Asia’s ups and downs site offshore Suriname where it has already
The first Chinese deal to buy US LNG since the made three discoveries, as a higher priority
trade war started between the two countries has than US shale. “We’re making a long-term
been announced. The deal, unveiled by Foran decision because we think there’s going to be
Energy Group, is comparatively small but is seen much, much greater benefit,” he said during a
as a sign of confidence in relations between the US conference call last week.
and China normalising. (See: Progress in US-China Christmann was speaking around the
LNG trade as first new deal is unveiled, page 13) same time that Apache reported that it had
Foran said it had signed an agreement to buy 26 filed appraisal plans for two of its discover-
cargoes of LNG from leading US exporter Cheniere ies at Block 58, Maka Central and Sapakara.
Energy between 2021 and 2025. Prices under the The company expects to take similar steps for
deal, which was struck during the annual trade fair Kwaskwasi, its third discovery, before the end
in Shanghai, will be linked to the US’ Henry Hub of the year. It is also proceeding with explo-
benchmark. ration drilling at the Keskesi field, its fourth
The deal comes shortly after the PipeChina nat- target, and intends to sink its next well at a sec-
ural gas project was completed in the third quarter tion of the block known as Bonboni.
of this year, allowing third-party access to Chinese Meanwhile in Brazil, Enauta, an independ-
LNG terminals and natural gas pipelines, according ent company, has said it may not proceed to
to comments from Cheniere’s executive vice-pres- full commercial development of the Atlanta
ident and chief commercial officer, Anatol Feygin. heavy crude field following the decision of
He added on his company’s third-quarter earnings its partner Barra Energia to exit the project.
call that Cheniere did “not see this as a one-off”. With Barra Energia is talking about farm-
Chinese buyers stopped signing longer-term ing out its 50% stake in Atlanta, Enauta has
supply contracts with US LNG producers in 2018, pledged to speed up its consideration of pro-
after Beijing introduced retaliatory tariffs on ship- posals to return its own stake to the Brazilian
ments of the super-chilled fuel from the US amid government.
an escalating trade war. The tariff was subsequently In related news, Australia’s Karoon Energy
raised from 10% initially to 25% in June 2019. has wrapped up its acquisition of a 100%
US-China LNG trade stopped altogether in stake in Baúna, an offshore field in the Santos
March 2019, resuming in March 2020, after the two basin, from Petrobras. The company said in a
countries agreed to a preliminary trade deal and statement that it had agreed to pay $380mn
China agreed to ramp up purchases of US energy. in “firm” consideration and up to $280mn in
China introduced a tariff waiver programme “contingent” consideration. It also described
in a bid to increase imports, but the country’s Baúna as “a quality production asset sup-
largest buyers of LNG remained hesitant to strike ported by prudent funding arrangements”

Week 45 13•November•2020 www. NEWSBASE .com P7