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In a fresh setback to Russia, the Dutch Supreme The deal comes during a period where long-
Court “dismissed the Russian Federation’s appli- term supply deals have become increasingly
cation to suspend enforcement” of the 2014 rare amid low LNG prices and a growing num-
award until the court reaches its verdict. “The ber of options available to buyers. It shows that
Supreme Court’s decision means that the former some appetite for long-term offtake agreements
shareholders can continue to enforce the arbitral remains and comes as a boost to other LNG pro-
awards pending its final judgment.” ducers that are still trying to take FIDs.
Lawyers on both sides of the dispute will pres-
ent their arguments to the court in early 2021, If you’d like to read more about the key events shaping
the court said. This represents Russia’s last legal the global LNG sector then please click here for
avenue for reversing the award. NewsBase’s GLNG Monitor.

If you’d like to read more about the key events shaping Latin America: Guyana drilling plans
the former Soviet Union’s oil and gas sector then In Mexico, Cenagas, the state-owned operator
please click here for NewsBase’s FSU Monitor . of the country’s natural gas pipeline system, has
announced plans to halt shipments of feedstock
GLNG: Asian bunkering success to Etileno XXI, a unit of the Nanchital petro-
Two significant LNG-related developments chemical complex in Veracruz State. Braskem Long-term LNG
have emerged from Asia in recent days. In a Idesa, the Brazilian-Mexican partnership that supply deals
world first, Korea Gas (KOGAS) successfully owns the plant, has protested against this move,
carried out a ship-to-ship LNG bunkering test calling it a “unilateral termination” that “may have become
in late November. KOGAS’ LNG carrier, SM Jeju have a material effect on the company’s operat-
LNG2, was connected a new LNG carrier built ing or financial results, depending on the timing increasingly rare
by Daewoo Shipbuilding & Marine Engineering of the stoppage.”
(DSME) with a capacity of 174,000 cubic metres It also reported that it had immediately sus- amid low prices
for the test. pended operations at Etileno XXI after receiving and a growing
“We believe this is a significant first step in notice from Cenagas, despite the pipeline oper-
creating and making a very successful market ator’s unwillingness to wait for 48 hours in order number of
for LNG bunkering in the future,” KOGAS was to allow for the safest possible shutdown. “[In]
quoted by South Korean media as saying. compliance with safety protocols, Braskem Idesa options available
Elsewhere, Australia’s Santos announced on initiated procedures for the immediate interrup-
December 7 that it had signed a 10-year agree- tion of its operating activities,” it said. to buyers
ment to supply LNG from its proposed Barossa The supply cut comes amidst a protracted
project to Diamond Gas International, a unit of dispute between Braskem Idesa and Pemex, the
Japan’s Mitsubishi. Under the agreement, Santos national oil company (NOC), over the terms of
will supply Diamond Gas with 1.5mn tonnes per a 20-year ethane supply deal. Mexican President
year (tpy) of LNG. Andres Manuel Lopez Obrador has come down
Santos’ CEO, Kevin Gallagher, said the deal on the side of the state-owned companies, and
represented the company’s first long-term LNG some industry observers believe that the gov-
sale from one of its major projects. It takes San- ernment sees recent developments as a means of
tos closer to a final investment decision (FID) on forcing Braskem Idesa to sign new contracts that
Barossa, which it deferred earlier this year owing are more favourable to both Cenagas and Pemex.
to the market downturn but now hopes to reach In related news, Mexico’s government is on
by the first half of 2021. track to collect about $2.5bn this year as a result
The two companies are also reported to have of its annual oil price hedging deal. The 2020
signed an agreement to jointly consider oppor- hedge, which expired on November 30, locked
tunities for carbon-neutral LNG from Barossa. oil prices in at $49 per barrel.

Week 49 09•December•2020 www. NEWSBASE .com P11