Page 9 - AfrOil Week 45

AfrOil NRG AfrOil

GLNG: Progress in US-China LNG trade has still not materialised.
The first Chinese deal to buy US LNG since the
trade war started between the two countries has If you’d like to read more about the key events shaping
been announced. The deal, unveiled by Foran the global LNG sector then please click here for
Energy Group, is comparatively small but is seen NewsBase’s GLNG Monitor.
as a sign of confidence in relations between the
US and China normalising. Latin America: Apache’s Suriname plans
Foran said it had signed an agreement to buy US-based Apache has indicated that it remains
26 cargoes of LNG from leading US exporter enthusiastic about the prospects of the offshore
Cheniere Energy between 2021 and 2025. Prices Guyana-Suriname basin.
under the deal, which was struck during the John Christmann, the company’s CEO, told
annual trade fair in Shanghai, will be linked to analysts that his company saw Block 58, the site
the US’ Henry Hub benchmark. offshore Suriname where it has already made
The deal comes shortly after the PipeChina three discoveries, as a higher priority than US
natural gas project was completed in the third shale. “We’re making a long-term decision
quarter of this year, allowing third-party access because we think there’s going to be much, much
to Chinese LNG terminals and natural gas pipe- greater benefit,” he said during a conference call
lines, according to comments from Cheniere’s last week.
executive vice-president and chief commercial Christmann was speaking around the same
officer, Anatol Feygin. He added on his compa- time that Apache reported that it had filed Cheniere sent
ny’s third-quarter earnings call that Cheniere did appraisal plans for two of its discoveries at Block
“not see this as a one-off”. 58, Maka Central and Sapakara. The company nine LNG cargoes
Chinese buyers stopped signing longer-term expects to take similar steps for Kwaskwasi, its
supply contracts with US LNG producers in third discovery, before the end of the year. It is to China between
2018, after Beijing introduced retaliatory tariffs also proceeding with exploration drilling at the March and
on shipments of the super-chilled fuel from the Keskesi field, its fourth target, and intends to sink
US amid an escalating trade war. The tariff was its next well at a section of the block known as August 2020,
subsequently raised from 10% initially to 25% in Bonboni.
June 2019. Meanwhile in Brazil, Enauta, an independ- after trade
US-China LNG trade stopped altogether in ent company, has said it may not proceed to full
March 2019, resuming in March 2020, after the commercial development of the Atlanta heavy improved
two sides struck a preliminary trade deal and crude field following the decision of its partner
Beijing agreed to ramp up US energy purchases. Barra Energia to exit the project. With Barra
China introduced a tariff waiver programme Energia is talking about farming out its 50%
in a bid to increase imports, but its largest buyers stake in Atlanta, Enauta has pledged to speed up
of LNG remained hesitant to strike long-term its consideration of proposals to return its own
deals amid still-fragile bilateral relations and stake to the Brazilian government.
ongoing market volatility. However, there are In related news, Australia’s Karoon Energy
hopes that relations are now starting to improve. has wrapped up its acquisition of a 100% stake
According to US government data, Cheniere in Baúna, an offshore field in the Santos basin,
sent nine LNG cargoes to China between March from Petrobras. The company said in a state-
and August 2020, after trade resumed. However, ment that it had agreed to pay $380mn in “firm”
a deal that the company had been trying to final- consideration and up to $280mn in “contingent”
ise with China’s Sinopec prior to the trade war consideration.

Week 45 11•November•2020 www. NEWSBASE .com P9