Page 6 - GLNG Week 43 2020

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with some of its neighbours through its support Rosneft’s rising ambitions
for Yemen’s Houthi rebels. Rosneft has scaled up plans for its already ambi-
tious Vostok Oil project in the Russian Arctic.
If you’d like to read more about the key events shaping Vostok Oil was originally conceived as an
the downstream sector of Africa and the Middle East, oil-only venture. Rosneft earlier predicted it
then please click here for NewsBase’s DMEA Monitor. could supply up to 500,000 barrels per day of oil
to global markets by 2024, rising to 1mn bpd in
French govt. blocks $7bn US LNG deal 2027 and 2.3mn bpd by 2030. This crude would
France’s Engie has reportedly delayed signing all be shipped via tankers along the Northern Sea
a $7bn contract to buy US LNG, after pressure Route (NSR) from a new terminal on the shore of
from the French government to seek cleaner the Taymyr Peninsula.
supplies instead. (See: Engie stalls $7bn US LNG Rosneft now wants to add LNG and even coal
Secretary of State deal after government pressure, page 9) But the US exports to the project. In addition to crude, it is
Mike Pompeo government also plans to intervene to convince looking into options for shipping up to 35-50mn
French officials to let the deal go ahead.
tonnes per year of LNG and 50mn tpy of coal
France’s government, a minority shareholder from the terminal it intends to build in Sever Bay.
is leading a in Engie, stepped in last month to prevent the It is unclear whether Rosneft would produce the
diplomatic push company from agreeing a 20-year contract coal itself or export third-party supplies.
to convince with US LNG developer NextDecade, Polit- Rosneft is also set to obtain two gas fields
ico, Bloomberg and various other outlets have for Vostok Oil, after Russia’s government con-
France to change reported. According to Politico, the authorities’ firmed that the company would be the only
main concern is the life cycle of the methane one authorised to participate in a tender for
its mind. content of US gas produced in West Texas and the Deryabinskoye and Kazantsevskoye fields.
New Mexico. These resources will underpin its LNG produc-
The gas was to come from NextDecade’s tion plans.
planned Rio Grande terminal in Texas. Nex- Meanwhile, Russia’s Tatneft is weighing up
tDecade was hoping to take a final investment its options after losing billions of dollars in tax
decision (FID) on the first of the 27mn tonne per relief in the country’s latest overhaul of oil indus-
year (tpy) project’s several phases this year, but try taxation. The company needs to update its
pushed the move back until 2021. It is looking to investment programme, and is yet to decide
finalise contracts for at least 11mn tpy of offtake whether to move some of the highly viscous and
before giving the venture the green light. nearly depleted fields affected by the changes
The US government intends to get involved, to Russia’s excess profit tax (EPT) system. Until
according to the news agency, with Secretary of Tatneft decides how to response to the loss of
State Mike Pompeo leading a diplomatic push to tax breaks, it will not invest in any new heavy
convince France to change its mind. oil-containing fields.
Meanwhile, Spain’s Repsol has become
the latest in a number of European refiners to If you’d like to read more about the key events shaping
announce plans to convert to biofuel produc- the former Soviet Union’s oil and gas sector then please
tion. It plans to build an advanced biofuels plant click here for NewsBase’s FSU Monitor .
at its 100,000 barrel per day (bpd) refinery in
Cartagena. Steep declines in demand caused by US, Qatar push for LNG dominance
coronavirus (COVID-19) have left many refin- Various US LNG developers and their support-
eries in Europe facing closure. But closing refin- ers – including the federal government – con-
eries is expensive, requiring the dismantling of tinue to push forward with plans that will help to
heavy equipment and pipelines along with land solidify the country’s dominance in the increas-
remediation. Converting sites to biofuel offers an ingly competitive global market for the super-
alternative option. chilled fuel. In the Middle East, meanwhile,
Qatar is doing the same to drive forward its own
If you’d like to read more about the key events shaping LNG expansion plans.
Europe’s oil and gas sector then please click here for Last week, the government of US President
NewsBase’s EurOil Monitor . Donald Trump extended the terms of several

P6 www. NEWSBASE .com Week 43 30•October•2020