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Super-majors see LNG

ups and downs in Asia

ExxonMobil has pulled out of an LNG import project in Pakistan, while Chevron
has provided an update on the restart of Train 2 at Australia’s Gorgon LNG

COMMENTARY CERTAIN Asian LNG projects have suffered “ExxonMobil is evaluating all appropriate
setbacks over the past week, while good news steps to significantly reduce capital and operat-
has been reported elsewhere. In late October, it ing expenses in the near term as a result of mar-
WHAT: was reported that ExxonMobil had decided not ket conditions and commodity price decreases,”
Updates have been to proceed with plans to participate in an LNG an ExxonMobil spokesperson told Pakistani
reported about import terminal in Pakistan, and had exited financial daily Business Recorder.
ExxonMobil and Chevron’s the Energas Terminal consortium. Meanwhile, The spokesperson added that decision did not
LNG projects in Asia. Chevron has provided an update on its efforts to affect the company’s downstream and chemical
repair weld quality issues discovered on propane business in Pakistan, and said future investment
WHY: heat exchangers – or kettles – in the second train opportunities in Pakistan would be evaluated.
ExxonMobil is re- at its Gorgon LNG terminal in Australia. The company continues to pursue LNG
evaluating its investment Despite ExxonMobil’s exit from the Energas import plans elsewhere in Asia, having signed
plans, while Chevron is in Terminal consortium, the updates illustrate the a memorandum of understanding (MoU) last
the process of restoring prominent role super-majors are playing in the week to develop an integrated LNG-to-power
service at Gorgon Train 2. LNG industry. project in the Vietnamese city of Hai Phong.
WHAT NEXT: ExxonMobil’s exit Chevron’s progress
Chevron plans to take ExxonMobil’s exit from the Pakistani project Separately, the second train at Chevron’s Gorgon
the other two trains at comes as the super-major seeks to reduce spend- LNG project – in which ExxonMobil also owns a
Gorgon offline one after ing amid this year’s industry downturn. It pulled 25% stake, once again illustrating the prolific role
the other once Train 2 is out despite only entering into the consortium of super-majors in the LNG industry – remains
back in service. last year. Pakistan’s Express Tribune reported offline. However, Chevron said in its third-quar-
that ExxonMobil’s main objective for joining ter earnings call that weld repairs and testing on
the consortium had been to supply LNG to the the train had been completed.
Asian country. “The weld repairs are complete. We verified
The company is reducing its 2020 capital them with non-destructive testing,” Chevron’s
expenditure from its initially planned $33bn chief financial officer, Pierre Breber, said on the
to $23bn, while also reducing cash operating company’s earnings call. “We’ve also completed
expenses by about 15%. It is planning further pressure testing of the kettle. So, we’re now in the
reductions in 2021. process of getting back online. So, we’ve started

P4 www. NEWSBASE .com Week 45 12•November•2020