Page 11 - EurOil Week 42

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producers have been critical in rebalancing In the World Energy Outlook, meanwhile,
global supply with demand since the coronavi- the agency noted that a record year of approvals
rus pandemic struck. They had hoped to taper for new liquefaction projects in 2019 had now
the cuts by 2mn bpd at the start of 2021, but a been followed by a year with no new projects
looming surplus could threaten these plans. green-lit – and none likely by the end of 2020.
Meanwhile, BP has confirmed that the Further challenges lie ahead for the LNG
Trans-Adriatic Pipeline (TAP) is still on track to industry, the IEA warned, with one-third of
deliver the first gas from Azerbaijan to Europe by active contracts due to expire over the next five
the end of this year, as the UK oil major looks to years. Over the same period, global liquefaction
quell concerns of a delay amid continued fight- capacity is projected to increase by 20% from
ing in the Nagorno-Karabakh region. projects that are currently under development,
In a statement on October 13, BP said the according to the agency.
commissioning of TAP and an interconnecting “These two factors will strongly impact the
pipeline would be completed in November. This structure of LNG supply, and create new oppor-
“will allow the Shah Deniz consortium to finalise tunities for buyers and challenges for marketers
the final steps required to start the 25-year-long in a context of demand uncertainty,” the IEA
supplies of natural gas from Azerbaijan to cus- said.
tomers in Italy, Greece and Bulgaria as planned
by the end of 2020.” If you’d like to read more about the key events shaping
the global LNG sector then please click here for
If you’d like to read more about the key events shaping NewsBase’s GLNG Monitor .
the former Soviet Union’s oil and gas sector then please
click here for NewsBase’s FSU Monitor . Latin America: Gas and refineries
Argentina’s natural gas production may have
GLNG: IEA highlights LNG’s role fallen in both July and August, but the adminis-
The International Energy Agency (IEA) last tration of President Alberto Fernandez unveiled
week highlighted the role of LNG in adjusting to a new plan to stimulate the gas sector last week.
a drop in global gas demand in the wake of the At a ceremony marking the launch of the plan,
coronavirus (COVID-19) pandemic. The agency Fernandez stated that the national oil company
published its World Energy Outlook 2020 and its (NOC) YPF was slated to invest some $1.8bn in
Global Gas Security Review last week, with LNG gas production over the next three years.
featuring significantly in both. Speaking at the same event, Energy Minister
The IEA noted that LNG remains central Dario Martinez said that Buenos Aires was set-
to ensuring the security of global gas supplies, ting up a four-year tender scheme that would
adding that the super-chilled fuel played a major allow producers to offer gas to the market at
role in the market’s adjustment after COVID-19 prices of up to $3.7 per million Btu. This scheme
made gas demand crash. Monthly global exports is designed to secure more than 70mn cubic
of LNG fell by 17% between January and July metres per day of gas for Argentina’s domestic
2020, the agency said, discussing the role the market, while ensuring that domestic producers
industry is playing in balancing gas markets. are paid an adequate price, he commented.
LNG contracting activity collapsed from a high In related news, the Argentinian unit of the Bra-
of 95bn cubic metres in 2018 to about 35 bcm in zilian oil company Raizen has announced plans
the first nine months of 2020. to invest $715mn over the next three years to
“Since the IEA started tracking flexibility in modernise and expand its Dock Sud refinery
LNG markets in the first edition of the Global in Avellanada. The project will boost the plant’s
Gas Security Review five years ago, we have seen throughput capacity from the current level of
a notable improvement across a range of LNG 110,000 barrels per day (bpd) and create thou-
market flexibility metrics. This is improving sands of new jobs, the company says.
security of supply and was critical in enabling the Also in the downstream sector, Petroperu has
market to adjust to the historic demand shock launched bidding for service contracts as part
witnessed in the first half of 2020,” the IEA’s exec- of the long-delayed modernisation of the Talara
utive director, Fatih Birol, said in a statement. refinery. The state-owned company is looking to

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