Page 16 - AsianOil Week 29 2020

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The Amsterdam Court of Appeal last week Elba Island LNG terminal was ready to enter ser-
confirmed it had rejected Kazakhstan’s appeal vice. The facility is a comparatively small-scale
against a $543mn award in favour of Stati by a one, with each of the terminal’s 10 trains having
Stockholm arbitration tribunal in 2013. Stati a capacity of 300,000 tpy of LNG. Nonetheless,
continues to seek the arrest of Kazakh property all of the remaining units are anticipated to be
overseas, to put pressure on the government to online by the end of the summer, contributing
settle the award. to the rise in US liquefaction capacity. It is worth
noting, however, that no cargoes have been
If you’d like to read more about the key events shaping exported from Elba Island since January amid
the former Soviet Union’s oil and gas sector then please the downturn in global demand.
click here for NewsBase’s FSU Monitor. Total US LNG export capacity is anticipated
to rise from 9.7 bcf (274.7 mcm) per day cur-
GLNG: Export projects proceed rently to 9.8 bcf (277.5 mcm) per day by the end
Despite the challenging conditions in the LNG of 2020 and 10.5 bcf (297.4 mcm) per day by the
market, export projects for the fuel in the US end of 2021.
and Mozambique have announced steps forward
during the past week. At the same time, however, If you’d like to read more about the key events shaping
setbacks have come for others. the global LNG sector then please click here for
In one of the most significant developments NewsBase’s GLNG Monitor.
for a new LNG export project in the past week,
France’s Total announced that it had signed a Latin America: Budget and production cuts
$14.9bn senior debt financing agreement for The COVID-19 pandemic continues to affect
the Mozambique LNG venture. The deal is the the plans and performance of operators in Latin
largest ever project financing for a development America.
in Africa, according to the French company. The For example, Colombia’s national oil com-
financing includes direct and covered loans from pany (NOC) Ecopetrol has trimmed more than
eight export credit agencies (ECAs), 19 commer- $1bn from its capital investment budget for 2020.
cial bank facilities and a loan from the African The firm had said last November that it was pre-
Development Bank (AfDB). pared to spend more, to the tune of $4.5-5.5bn,
The agreement secures the majority of the after turning in a solid financial performance in
required funds for the $20bn Mozambique LNG 2019. In the wake of the pandemic and the Sau-
project. Construction on the terminal is under- di-Russian oil price war, though, it is now look-
way, and LNG production is due to begin around ing at a budget of $3.0-3.4bn this year.
2024. Total and its partners will hope that the Meanwhile, the pandemic is also affecting
global glut of LNG will have eased significantly operational performance in Argentina. New
by then. government data show that the country saw
In the immediate term, however, the glut natural gas output drop by 12.2% year on year
continues to be exacerbated by new liquefac- in May, marking the lowest monthly total in the
tion coming online in the US. Last week, Kinder last two decades. Yields are reported to be down
Morgan said the seventh liquefaction train at its at both conventional and unconventional fields.

P16 www. NEWSBASE .com Week 29 23•July•2020