Page 9 - LatAmOil Week 36
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LatAmOil                                           NRG                                             LatAmOil



































                         But now, after revelations that a Soviet-era nerve  into obstacles. On September 3, Chevron Aus-
                         agent known as Novichok was used in Navalny’s  tralia said it would require extra time to complete
                         attempted assassination, a number of German  repairs of propane heat exchangers on Train 2 at
                         politicians have called on Berlin to withdraw  the Gorgon terminal on Barrow Island, off the
                         its support. Some of these calls have come  northwest coast of Western Australia. Chevron
                         from Merkel’s own CDU party, including from  had initially anticipated completing the repairs
                         Norbert Rottgen, chairman of the parliament’s  and returning Train 2 to service in September,
                         foreign affairs committee and party leadership  but now it expects the restart in October.
                         candidate. He has said Nord Stream 2 should be   The company said that following its ongo-
                         halted “as a joint European response.”  ing technical work, it was further refining its
                           To say that the controversial pipeline project  approach and had decided that some welds in
                         has suffered more than its fair share of challenges  targeted areas would require additional work. A
                         over the years is an understatement. However,  trade union had previously raised concerns that
                         NewsBase does not expect Germany to shift its  the heat exchangers would need to be replaced
                         position on Nord Stream 2 when the pipeline is  altogether, so while the repairs are more exten-
                         so near completion, especially given the clear  sive than Chevron initially expected, it appears
                         benefits it will provide for the German economy.  that this was not the worst-case scenario.
                           In other news, Russia has, as expected,  Chevron is due to take Trains 1 and 3 offline
                         restored nearly 500,000 barrels per day (bpd)  to inspect the heat exchangers for similar issues,
                         of oil supply last month, after OPEC+ cuts were  and now says it hopes that the work at Train 2
                         eased. It did so as 13 OPEC members brought  can help those inspections – and any necessary
                         back a further 1mn bpd.              repairs – to be more efficient.
                           The rise in deliveries has occurred at a time   Separately, Royal Dutch Shell said on Sep-
                         when the recovery in global oil demand is  tember 4 that it had begun restart procedures at
                         stalling. The summer driving season is ending,  its Prelude FLNG facility and the gas fields off-
                         while the economic fallout from the pandemic  shore Broome that supply feedstock to the vessel.
                         continues and some countries are re-imposing   However, Shell is reported to have run into
                         lockdowns. Meanwhile, global stocks of crude  challenges almost immediately. A source on
                         oil and refined products remain at a record high.  board the vessel was quoted by news agencies as
                           While efforts by the OPEC+ group have  saying the restart had some issues with “multi-
                         driven the market’s recovery so far, the easing  ple trips” of the plant and two swivels inside the
                         of cuts now is bad news for other suppliers –  turret that moors the giant LNG facility in place.
                         including Russia.                    And Shell is reported to have suspended gas
                                                              flows to Prelude as a precaution.
                         If you’d like to read more about the key events shaping   There is now speculation that Prelude –
                         the former Soviet Union’s oil and gas sector then please  which is thought to be one of the most complex
                         click here for NewsBase’s FSU Monitor .  LNG facilities in the world – may not be back on
                                                              stream until 2021. The facility has been offline
                         GLNG: Restart troubles in Australia   since February as a result of technical issues.
                         Attempts to restart liquefaction capacity that has
                         been offline in Australia – namely, the second   If you’d like to read more about the key events shaping
                         production train at Gorgon LNG and the Prel-  the global LNG sector then please click here for
                         ude floating LNG (FLNG) facility – are running   NewsBase’s GLNG Monitor.



       Week 35   03•September•2020              www. NEWSBASE .com                                              P9
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