Natural Gas Daily: April 20th, 2020
WTI Plummets towards Zero on Storage Fears [Update]
The May contract for West Texas Intermediate was at $0.01/barrel at 18.15 GMT, suggesting that there is now no more storage and crude production must be halted.
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The Big Picture:
- The sharp decline in WTI is owing to fears that the Cushing storage hub in Oklahoma, the physical delivery point for WTI futures, could soon be filled.
- Brent, in contrast, has fallen only 3.2%.
UK to Avoid Production Shut-ins: Rystad
The UK North Sea will avoid shut-ins and exploration will likely continue in 2020, even if Brent falls to $20/b, but cash flow and project sanctions will suffer, Norway's Rystad Energy said in a research note on April 17.
The Big Picture:
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Final investment decisions on projects will be few and far between, and only 34% of unsanctioned resources are commercial at $30/b oil, and none are viable at $20/b.
Oman's Sohar Port Joins Sea/LNG
Sea/LNG, the multi-sector industry coalition accelerating the widespread adoption of LNG, said that Oman’s Sohar Port and Freezone has become its first port member from the Middle East.
The Big Picture:
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Marsa LNG, a venture comprised of Total and energy and petrochemicals company OQ, is developing a gas liquefaction plant and bunkering facility in Sohar Port.
Qatari Gas Fleets See Strong Q1
Qatari LNG and LPG carrier operator Nakilat reported a fourth consecutive first quarter of growth, delivering a profit of $74.8mn with no disruption to its business.
The Big Picture:
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Nakilat said the company is supporting Qatar’s industry-leading position in liquefied natural gas exports.
Gasunie Joins Dutch Offshore Hydrogen Pilot
North Sea-focused Neptune Energy has teamed up with Dutch gas grid operator Gasunie at its pilot project to produce hydrogen at one of its platforms, it said.
The Big Picture:
- The PosHYdon project, backed by Dutch industry and science organisations, aims to install a 1-MW electrolyser at Neptune's Q13 platform off the Netherlands that will produce hydrogen.
- The project is due to play a key role in Neptune's drive to reduce its carbon and methane intensity substantially over the next decade.
