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It says the report puts to bed the frequently second half of this year, meaning it can look for-
repeated claims that Australia paid more for gas ward to a further surge in turnover.
than those countries that bought its liquefied Brooge aims to have eight new oil storage
natural gas (LNG) exports. tanks with a combined capacity of 3.8mn barrels
APPEA chief executive Andrew McCon- up and running by the end of the year.
ville said: “Even before the sharp contraction Iran is targeting an ambitious ramp-up in its
we’ve seen in gas prices this year, Australian gas petrochemicals capacity over the next year. Offi-
users have enjoyed very competitive wholesale cials say projects worth $11.5bn with a combined
prices. The widely repeated claim that Austral- annual production capacity of 25mn tonnes per
ia’s wholesale prices are higher than in the coun- year (tpy) should be operational by March 2021.
tries importing our LNG has once again [been] Iran has found it easier to sells fuels and petro-
shown to be without foundation.” chemicals discretely abroad than oil, amid the The operators of
McConville said: “Interestingly, the statis- US’ ongoing sanctions regime. storage facilities
tics show countries with the highest gas prices Tehran has a reputation for making bold and
including Chinese Taipei, South Korea, Japan, unrealistic predictions. But some progress is have enjoyed
Singapore and China – well above Australia – all already being seen, with authorities announcing
have successful major manufacturing sectors.” last week the launch of the 140,000 tpy Mian- record earnings
While acknowledging that Australia’s whole- doab petrochemicals plant. A new hexane-pro-
sale prices were higher than in other major pro- ducing unit was also brought on stream at the during the crisis
ducers such as the US, Canada, Russia and in the Imam Khomeini oil refinery.
Middle East, McConville the difference reflected
the “high cost of doing business in Australia, and If you’d like to read more about the key events shaping
increasingly the impact of restrictions on the the downstream sector of Africa and the Middle East,
development of natural resources.” then please click here for NewsBase’s DMEA Monitor.

If you’d like to read more about the key events shaping Upstream antipathy in Europe
Asia’s oil and gas sector then please click here for Times are changing, and more and more coun-
NewsBase’s AsianOil Monitor. tries in Europe are clamping down on upstream
development. Ireland’s new coalition govern-
Downstream: Storage in vogue ment has pledged to outlaw new licences for gas
At the height of coronavirus (COVID-19) lock- exploration, less than a year after banning new
downs, oil and fuel storage was more in demand oil licences. This marks a shift in Irish policy, as
than it has been in decades. The operators of this the former government last year had defended
storage therefore enjoyed record earnings during gas as a “transition fuel.”
the crisis. As the energy transition picks up pace, com-
Brooge Energy, which manages capacity at panies are having to make drastic changes to
the UAE’s Fujairah hub, was already achieving their outlooks for oil and gas prices, and some
strong results before COVID-19. The company early-stage upstream projects previously seen
said last week it had earned $44mn in revenues as safe bets now risk becoming worthless. Royal
in 2019, up 23% year on year. It has both its Phase Dutch Shell has followed BP in announcing up
1 and Phase 2 facilities fully booked, the latter to $22bn in impairments after cutting its price
group due to start coming into operation in the forecasts.

Week 27 08•July•2020 www. NEWSBASE .com P7