Page 11 - FSUOGM Week 23

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development plans, despite the current market the reserved capacity at Croatia’s Krk facility,
conditions. Egdon has secured licence exten- which is currently under construction and due
sions for the Resolution and Endeavour gas to start up in 2021, to 80%.
discoveries, bringing it one step closer to com- If you’d like to read more about the key events shaping
pleting a farm-out to Royal Dutch Shell. Cluff, the global LNG sector, then please click here for
meanwhile, says it is still committed to drilling NewsBase’s GLNG Monitor.
at the Pensacola and Selene finds, even though
one of the wells will be delayed by a year. It too is LatAm mulls production levels
partnered with the Anglo-Dutch major. Several countries in Latin America are taking a
If you’d like to read more about the key events shaping close look at oil output levels.
Europe’s oil and gas sector, then please click here for During negotiations over production quotas
NewsBase’s EurOil Monitor. over the weekend, Mexico once again found at
odds with other members of the OPEC+ group.
Full storage in Europe shifts LNG trade Rocio Nahle, the country’s energy minister, told
flows reporters on June 6 that Mexico “fully respected”
The US could find itself receiving more LNG the group’s previous agreement, under which it
cargoes as a lack of available storage capacity slashed output by 100,000 barrels per day (bpd)
in Europe leads to shipments being directed in May and June, but would not push the dead-
elsewhere. line back any further.
On June 8 a tanker from Trinidad was reported Brazil, meanwhile, has reported that oil pro-
to have arrived at Dominion Energy’s Cove Point duction remained steady in the month of April,
LNG terminal in Maryland over the weekend. even as the coronavirus pandemic ravaged
Meanwhile it is thought that another tanker, world energy markets. According to the state
Madrid Spirit, sailing from Nigeria may also oil and gas regulator, known as ANP, output
unload its cargo of the super-chilled fuel in the US. levels reached 2.9mn bpd in April, down by just
This comes after US gas futures started trad- 0.5% on the previous month and up by 13.6%
ing at a premium to European benchmarks in on April 2019.
April for the first time in 10 years. This, com- Argentina, for its part, is looking to expand
bined with filling storage capacity in Europe, its future production capacity. The government
prompted buyers to cancel a number of upcom- of Neuquén province is reportedly preparing
ing cargoes scheduled for loading from US LNG to launch a tender for Loma Amarilla Norte, a
terminals. Meanwhile, analysts have said it could block within the Vaca Muerta shale formation.
make sense under these circumstances to send Provincial authorities had hoped to offer the
some LNG to the US for storage. site to investors earlier this year but postponed
Most of the US’ operating LNG plants began the sale, citing unfavourable market conditions.
their life as import terminals before being con- Vaca Muerta fields have seen production levels
verted to liquefaction in recent years. They are still decline since April, when the national oil com-
able to receive cargoes as well as send them out. pany (NOC) YPF reined in upstream operations
According to Reuters, 21 LNG cargoes were at Loma Campana and other sites.
delivered to the US last year – also mostly from At the same time, Ecuador is facing some
Trinidad – while over 500 were exported. short-term setbacks, owing to continued prob-
Demand for LNG in Europe remains, how- lems with the SOTE oil pipeline system. Offi-
ever, despite short-term challenges caused by cials in Quito have declared force majeure on
storage capacity filling amid the coronavirus Petroecuador’s production operations, and the
(COVID-19) pandemic. It was recently reported NOC is building a bypass link in a bid to improve
that 100% of the regasification capacity at the conditions.
LNG terminal in Swinoujście, Poland, had been If you’d like to read more about the key events shaping
reserved. The terminal is in the process of being Latin America’s oil and gas sector, then please click
expanded. Meanwhile, a new deal has brought here for NewsBase’s LatAmOil Monitor.

Week 23 10•June•2020 www. NEWSBASE .com P11