Page 9 - AfrOil Week 50 2020

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In other news, Russian LNG exporter Novatek had been at a standstill for about 10 days as of
has secured a bump in its environmental, social December 11 owing to bad weather, according
and governance (ESG) score, which should make to a source cited by Bloomberg. This comes as
the company more attractive among increas- unplanned maintenance at other liquefaction
ingly climate-conscious investors. US financial plants around the world has helped eat into
firm MSCI upgraded Novatek’s ESG rating from the global oversupply of LNG, pushing up spot
BBB to A, making it the only Russian company prices to their highest level in around two years.
to achieve such a high rating. And in longer-term challenges for the indus-
In a move that should make its green creden- try, consultancy Wood Mackenzie published a
tials even more convincing, the company is also new report last week, showing that a “2-degree
reportedly working with Germany’s Siemens on scenario” – involving global warming being lim-
a plan to produce and use hydrogen at its Yamal ited to 2 degrees Celsius – would put around 77%
LNG plant. of new LNG supply at risk.
Third and finally for this week, the consor- The consultancy said low-cost supplies from
tium developing the giant Karachaganak field Russia and Qatar would be best positioned to
in Kazakhstan has finally paid $1.3bn to settle a fill the supply gap under this scenario, while low
long-running dispute with the government over Henry Hub prices would also mean competitive
profit-sharing. The agreement paves the way for US LNG projects. However, it added that this Petronas and
the project’s investors to push ahead with a $1bn scenario would raise questions over the need for ExxonMobil
expansion project. other new liquefaction projects elsewhere.
have discovered
If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
the former Soviet Union’s oil and gas sector then please the global LNG sector then please click here for hydrocarbons at
click here for NewsBase’s FSU Monitor . NewsBase’s GLNG Monitor.
Block 51 offshore
GLNG: some projects moving forward Latin America: New find offshore Suriname Suriname
Certain LNG projects were reported to be mov- The Guyana-Suriname basin continues to arouse
ing forward in recent days, including a small- interest, following the announcement of another
scale US LNG export terminal proposed for New offshore discovery.
Jersey, which cleared another regulatory hurdle Petronas (Malaysia) and ExxonMobil (US)
last week. revealed last week that they had discovered
The Delaware River Basin Commission hydrocarbons in Sloanea-1, an exploration well
(DRBC) voted 4-0 to uphold a decision approv- drilled at Block 51 offshore Suriname. In a state-
ing a key part of the project, which would involve ment, Petronas said the partners had “encoun-
building a second dock to load LNG tankers at tered several hydrocarbon-bearing sandstone
the proposed Gibbstown Logistics Centre. The packages with good reservoir qualities in the
second dock had been contested by local envi- Campanian section” of the well.
ronmental groups, and the DBRC had agreed Neither company has commented on the size
last year to reconsider its initial approval of this of the find, but Petronas stated that the partners’
step, but subsequently decided that there was no next step would be to evaluate the data collected
basis for rescinding the approval. during drilling. It also commented that the “well
The plan for the export terminal has also been data proves excellent calibration of the hydrocar-
in the spotlight because it involves transporting bon potential of the block.”
LNG by truck or rail from shale plays in the In other news, members of Brazil’s Senate
US Northeast – with the administration of US have voted to approve the basic text of a bill
President Donald Trump only recently allowing designed to enable the further reform of the
LNG-by-rail shipments. country’s natural gas sector.
Elsewhere in the world, there have been dis- The legislation has already passed in the lower
ruptions to LNG supply. In Algeria, the port house of the National Assembly, which approved
of Arzew, which is home to an LNG complex, it in September.

Week 50 16•December•2020 www. NEWSBASE .com P9