Page 11 - NorthAmOil Week 12 2021

NorthAmOil POLICY NorthAmOil

US senator calls on Biden to permit

diesel swaps with Venezuela

US-VENEZUELA A member of the US Senate has pressed the Venezuelan President Nicolas Maduro, who is
administration of President Joe Biden to roll not considered by the US government to be the
back some of the sanctions imposed on Vene- country’s legitimately elected ruler. The prohibi-
zuela and its oil industry. tion “has created no real political leverage with
Last week, Chris Murphy, a Democrat from Maduro, who was able to manoeuvre around
Connecticut who serves as member of the Sen- the unilateral sanctions, and instead threatens to
ate Foreign Relations Committee, said he wanted severely worsen the already dire humanitarian
to see the US government lift the prohibition on situation in the country,” he asserted.
swap deals that allow Venezuela to exchange The senator’s letter to Blinken came to light
crude oil for supplies of diesel fuel. In a letter to shortly before Bloomberg reported that the
Secretary of State Antony Blinken, he called the Venezuelan president was taking new measures
ban, which was introduced by former President to attract investment to his country’s oil sector.
Donald Trump last November, “misguided.” He According to the news agency, Maduro has prom-
also declared that the policy was exacerbating ised international oil companies (IOCs) that they
the humanitarian crisis in the South American will be able to develop the country’s crude reserves
country. with little to no interference from PdVSA, the
Murphy noted in the letter that Venezuela national oil company (NOC). If these pledges are
had only small amounts of diesel left and said the upheld, they will effectively put an end to PdVSA’s
country’s reserves were likely to drop to critical monopoly on the hydrocarbons sector.
levels by the beginning of April. Supplies would As of press time, no IOCs had admitted to
improve quickly and “provide life-saving relief participating in talks with the Venezuelan gov-
for millions of Venezuelans” if the US agreed to ernment. Under US sanctions law, Washington
reverse the current policy, he argued. may impose sanctions on any US or non-US
He also argued that the decision to halt die- company that invests in Venezuela’s oil sector or
sel swaps had not had the intended effect on co-operate with Venezuela.™

PROJECTS & COMPANIES

Annova LNG scraps export terminal plan

TEXAS THE field of new LNG export terminal propos- announced for Annova LNG up to the point
als continues to thin in the US, with Annova when it was scrapped. Annova had previously
LNG scrapping its project in South Texas this said that it would sanction its $4.5bn export
week. plant once two-thirds of its capacity had been
In a March 22 statement, the company cited sold.
changes in the global LNG market as its rea- The project’s cancellation is the second on the
son for terminating the project, which was one US Gulf Coast in recent weeks, with NextDec-
of three proposed for the Port of Brownsville. ade announcing in January that it was dropping
Annova LNG was one of Annova LNG said that while global supply had plans for Galveston Bay LNG, having deter-
three export terminals increased, demand had not. The company dis- mined that the proposed site for that project was
proposed for the Port continued work on the 6.5mn tonne per year not suitable for a liquefaction facility.
of Brownsville in South (tpy) liquefaction with immediate effect, and However, NextDecade continues to move
Texas. said it was in the process of notifying commer- forward with plans for its Rio Grande LNG
cial partners and regulatory agencies. facility at Brownsville, saying it is working on
Utility Exelon is the majority owner in the remaining commercial agreements needed
Annova LNG, with Black & Veatch, Kiewit to achieve a final investment decision (FID) this
Energy Group and Enbridge holding minority year. The company is the only developer in the
stakes in the project. Exelon had tried to sell its Port of Brownsville to announce a firm offtake
stake in Annova, but had failed to attract a “suit- agreement to date, and is aiming to make an FID
able offer”. Cancelling the project was reported on two trains initially with a combined capacity
not to be Exelon’s first choice, but is expected to of 11mn tpy. It would then expand the facility to
better position the company’s power generation five trains and 27mn tpy.
business. The third LNG project proposed for the Port
The cancellation is no great surprise, given of Brownsville, Texas LNG, is targeting an FID
Exelon’s efforts to offload its stake, as well as this year or in 2022 on the first phase of a 4mn
the fact that no firm offtake deals had been tpy liquefaction plant.™

Week 12 25•March•2021 www. NEWSBASE .com P11