Page 9 - EurOil Week 24

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Indeed, importers may stand to benefit from a Latin America’s unconventional concerns
growing variety of options for sourcing their Two Latin American states are taking a close
LNG supply, as well as low prices for the fuel. look at unconventional oil and gas developments
Under these circumstances, countries that are this week.
ramping up their LNG imports may find it easier Colombia appears to be gearing up to award
to attract foreign investors. contracts for pilot projects that will involve
Last week, it was reported that ExxonMo- hydraulic fracturing (fracking). Armando Zam-
bil was considering investing in new LNG-to- ora, the head of the national hydrocarbons reg-
power projects in Vietnam. A statement from ulator ANH, said last week that the government
the Vietnamese government suggested that had invited companies to submit proposals and
there was potential to invest in a 4,000-MW hoped to sign deals by September or October.
LNG-to-power plant in the northern port city of Fracking could help the country replenish its
Haiphong, or a 3,000-MW plant in the Mekong reserves and increase production.
Delta province of Long An. In Argentina, Shell and its local partner, state-
The government added that the plants could owned YPF, suspended operations last week at
use LNG imported from the US or elsewhere. It the Bajada de Añelo block in Vaca Muerta, one of
suggested that a plant in Haiphong could start the world’s largest shale formations. They did so
generating power at some point between 2025 in response to seismic activity in Neuquén Prov-
and 2030. ince, near the Andes. No other fields have been
The LNG industry is hoping that the market affected, but other licence areas in Vaca Muerta
will have rebalanced by this point, with excess have seen production fall this year as a result of
supply being absorbed and demand rising again. shrinking demand stemming from the corona-
Currently, the global oversupply of LNG contin- virus pandemic.
ues to weigh on the market and depress prices. Meanwhile, Bahamas Petroleum Co. (BPC)
The US Energy Information Administration continues to expand its regional footprint
(EIA) has predicted that exports of US LNG will through acquisitions. The company has taken
have dropped by 60% in July from their peak in control of Columbus Energy, an independent
January. operator that is working to develop onshore
Meanwhile, Total’s president of gas, renew- fields in Trinidad and Suriname. These assets,
ables and power, Philippe Sauquet, has warned together with ongoing projects in The Baha-
that the cancellation of a growing number of car- mas and Uruguay, will turn BPC into an oil
goes scheduled for loading this summer should and gas “champion” focusing on the Caribbean
serve as a warning that new LNG projects will and Atlantic margin, the company said in a
not automatically be profitable. statement.
Not that all LNG exporters in the US have Elsewhere in the region, Guyana has reported
been deterred. On June 15, US regulators that its second cargo of oil exports fetched
approved Venture Global LNG’s request to pro- around $35mn, or $20mn less than its first cargo,
ceed with limited site preparation for its pro- which went to market in February. These reve-
posed Plaquemines LNG terminal in Louisiana. nues brought the sovereign wealth fund’s balance
The company said it was planning to start early up to nearly $95mn, according to government
construction work on Plaquemines in mid-2020 officials in Georgetown.
before achieving financial close on the project
late this year. Construction is also currently If you’d like to read more about the key events shaping
under way on Venture Global’s Calcasieu Pass the Latin American oil and gas sector then please click
LNG project, also in Louisiana. here for NewsBase’s LatAmOil Monitor .

If you’d like to read more about the key events shaping Middle Eastern malaise
the global LNG sector then please click here for Last week, focus was on the much anticipated
NewsBase’s GLNG Monitor . OPEC+ meeting to consider and agree oil

Week 24 18•June•2020 www. NEWSBASE .com P9