Page 9 - AfrOil Week 50 2020
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AfrOil                                             NRG                                                 AfrOil

                         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.

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