Daily Digest: April 8th, 2020
_f450x122_1586356035.jpeg)
LNG Traded Volume Rises, Reloads Fall
The global LNG market grew at 13.0% last year thanks to an all-time record in capacity additions since 2018: 354.7mn metric tons were sold.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The Big Picture:
-
The US has become the largest exporter of flexible LNG, followed by Australia.
- Qatar’s share of the spot and short-term market was just a twentieth, down from an eighth or so in 2018 and a fifth in 2017.
_f450x122_1586426127.jpeg)
Norway Mulls Output Cut to Prop up Price
On the eve of a much-hyped Opec meeting, Norway's petroleum ministry told NGW it would consider helping to rebalance the market and prop up the oil price.
The Big Picture:
- As a major oil producer, Norway has 'Opec observer' status: as a member of the Organisation for Economic Co-operation and Development (OECD), it has avoided closer association with the producers' cartel which uses output to influence prices.
-
Norway is not the only OECD member considering such steps.
_f450x122_1586426202.jpeg)
Chinese LNG Imports to Drop 5.2% This Year: ICIS
Chinese LNG demand this year is expected to fall 5.2% yr/yr to 58.1mn metric tons owing to coronavirus (Covid-19) outbreak, according to a note published by ICIS on April 7.
The Big Picture:
- Other major Asian importers, Japan and South Korea will also see a dip in demand this year.
- In 2019, China, Japan and South Korea collectively imported 179mn mt of LNG, which was 51% of the 354mn mt imported globally.
_f450x122_1586426250.jpeg)
Total Picks Up 50% Stake in Indian Solar JV
Total has acquired a 50% stake in India-focused renewable business joint venture with Adani Green Energy (Agel) for $490mn, Mumbai-listed Agel said April 7 in a statement.
The Big Picture:
- Total and Agel, a unit of the Adani group, will create a 50:50 joint venture that will receive Agel's operational solar assets. Total already owns a stake in city gas company Adani Gas - another unit of Adani group.
- These projects are spread over 11 Indian states and have a cumulative capacity of over 2 GW.
_f450x122_1586426321.jpeg)
Cnooc Restarts Operations at Fujian Terminal
Cnooc Gas and Power has fully restarted operations at its Fujian LNG terminal located in the southeastern province of Fujian, the company said on April 7. The terminal was shut due to coronavirus (Covid-19) outbreak.
The Big Picture:
- The Fujian LNG terminal became operational in 2009 and is 60% owned by Cnooc Gas and Power, a unit of state-owned Cnooc, and 40% by Fujian Investment and Development Co.
- In January this year, the 2.6 million metric tons/year terminal received its 500th cargo.
_f450x122_1586426363.jpeg){kind=spacer}
Siemens, Uniper Work on Green Gas for Power
Uniper and engineering giant Siemens have agreed to extend their co-operation to decarbonising power generation and the promotion of sector coupling, the German utility said.
The Big Picture:
- Further ahead, Uniper aims to be climate neutral in its European power generation by 2035.
- One focus is the production and use of hydrogen generated from renewable energy.
_f450x122_1586426402.jpg)
KrisEnergy Sells Stake in Indonesian Asset to BP
Southeast Asia-focused KrisEnergy has closed the deal to sell its 30% non-operated stake in the Andaman 2 production-sharing agreement (PSA) off Indonesia to BP for $15mn, it said in a statement.
The Big Picture:
-
Andaman 2 lies in the North Sumatra basin, covering 7,400-km2 in waters 200 to 1,950 metres deep. It is operated by the UK’s Premier Oil with 40%, while the UAE’s state fund Mubadala has 30%.
_f450x122_1586426466.jpeg)
Kosmos Refinances Loan, Finds more Savings
US producer Kosmos Energy has successfully completed the re-determination of its RBL credit facility, it said. It has also identified a further $75mn in cost reductions across capital and operating expenditures.
The Big Picture:
- Kosmos has voluntarily reduced its facility commitments from $1.6bn to $1.5bn which includes value related to the Jubilee and TEN fields in Ghana and the Ceiba and Okume fields in Equatorial Guinea.
- Kosmos' producing assets in the Gulf of Mexico and its gas assets in Mauritania and Senegal have no debt secured against them.
_f450x122_1586426505.jpg)
Shell Sees Drop in Government Take in 2019
Anglo-Dutch Shell paid governments worldwide $22.6bn on its upstream activities in 2019, about a quarter less than it had in 2018, according to its report published April 7.
The Big Picture:
-
In both years, production entitlements were the biggest chunk, comprising about half the total. The other payments are taxes, royalties, bonuses and fees.
- The company has upstream operations in 28 countries.
_f450x122_1586426532.jpeg)
Italian Grid Operator Steps up Hydrogen R&D
Italian pipeline operator Snam has agreed to collaborate in the hydrogen sector with certification services firm Rina, it said. It said the gas has "significant potential" in the fight against climate change and industrial decarbonisation.
The Big Picture:
- The two companies have formed a joint working group to study and test the compatibility of industrial burners and other existing infrastructure already in operation with hydrogen.
-
According to a report commissioned by Snam, hydrogen could cover almost a quarter (23%) of national energy demand by 2050 under a deep decarbonisation scenario.
_f450x122_1586426576.jpeg)
Qatargas Uses Boil-Off Gas During Unloading Operations
Qatargas said it has initiated a programme to utilise LNG boil-off gas to power its chartered conventional LNG vessels during unloading operations at Japanese LNG terminals. The programme is being implemented with the cooperation of Qatargas' Japanese buyers.
The Big Picture:
- Qatargas said that using the boil-off natural gas instead of conventional fuel oil significantly reduces greenhouse gas and other harmful emissions over the course of the discharge operation.
