Page 6 - NorthAmOil Week 44 2020

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to be linked to the deterioration of Iranian infra- in the Asia-Pacific region, where economies are
structure, although there are suspicions that expanding fast and governments are looking to
some are security-related. improve air quality by phasing out coal.
In the shorter term, the CFO said that while
If you’d like to read more about the key events shaping gas prices were still lower than the pre-corona-
the downstream sector of Africa and the Middle East, virus level, the recovery is underway. A rise in
then please click here for NewsBase’s DMEA Monitor. forward curve prices for the upcoming winter
reflects expectations of colder weather ahead,
EurOil: Tough quarter for majors Gyetvay said.
Europe’s largest oil and gas producers were Over in Kazakhstan, the government has put
spared in the third quarter from the pain they up for auction 10 oil and gas blocks in the Atyrau
endured in the previous three months, when the region, marking the country’s first ever online
coronavirus (COVID-19) crisis was at its height. contest for acreage. Authorities are looking to
But their numbers were still dramatically lower attract interest from foreign investors despite
than in the same period last year, and the market restrictions put in place in response to the coro-
outlook remains bearish. navirus (COVID-19) pandemic, as well as weak
Demand and prices for oil and fuels has market conditions.
recovered in recent months following the eas- The government expects that the Zaburunye
ing of COVID-19 lockdowns over the summer and Sarayshky blocks to attract the strongest
and continued supply cuts by OPEC+. Gas interest, and their market value has been esti-
prices have taken longer to bottom out and then mated at $63mn and $57mn respectively.
rebound, however, partly because of oil indexa-
tion in some contracts. But an end to the market If you’d like to read more about the key events shaping
turmoil is still not in sight. the former Soviet Union’s oil and gas sector then please
The world is now in the grip of a second wave click here for NewsBase’s FSU Monitor .
of COVID-19, with Europe, the US and many
other nations again seeing record daily infection GLNG: Asia’s ups and downs
rates. Some major oil consumers such as Italy, Certain Asian LNG projects have suffered set-
Germany and France are again going into lock- backs over the past week, while good news has
down mode. It is telling that OPEC+, which is been reported elsewhere. In late October, it was
among the most bullish forecasters, reportedly reported that ExxonMobil had decided not to
now sees a risk of an oil supply surplus re-emerg- proceed with plans to participate in an LNG
ing in 2021. import terminal in Pakistan, and had exited the
After months of low prices, though, Europe’s Energas Terminal consortium.
majors have largely exhausted their financial This comes as the super-major seeks to
defences, having already made drastic cuts to reduce spending amid this year’s industry down-
operational and capital spending. This gives turn, despite only entering into the consortium
them little room to manoeuvre if there is another last year.
full-blown slump in fuel demand, and puts them
at the mercy of OPEC+ decision-makers.
At the same time, Europe’s oil leaders are also
pursuing aggressive strategies to move away
from fossil fuels and expand in cleaner energies.
But implementing these plans will not be cheap.
If you’d like to read more about the key events shaping
Europe’s oil and gas sector then please click here for
NewsBase’s EurOil Monitor .

FSU: Novatek bullish on LNG
Russia’s biggest independent gas producer
Novatek remains bullish on long-term prospects
for gas, despite prices falling to unprecedented
lows this year in the wake of the pandemic.
Speaking to investors on October 29, Novatek
CFO Mark Gyetvay said the LNG exporter
“remains absolutely committed to its portfolio
strategy to deliver up to 70mn tonnes of LNG” per
year (tpy) by 2030. Novatek expects global LNG
consumption to reach 365mn tonnes in 2020, up
2% year on year, and sees it doubling to over 700mn
tonnes by 2040. This growth will be driven by gains

P6 www. NEWSBASE .com Week 44 06•November•2020