Natural Gas Daily: July 23rd, 2020

China's LNG Imports in June Jump 29%

China’s LNG imports in June totalled 5.79mn metric tons, up 29.2% yr/yr, customs department data showed. Month on month, imports were up 10.7%.

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• Meanwhile, China’s pipeline gas imports in June were 2.54mn mt, down 15% yr/yr and 2.7% month on month, the data showed.

• China’s LNG imports in May totalled 5.23mn metric tons, up 19% yr/yr.

New Chinese Pipeline Firm Makes First Acquisition

China's newly-established oil and gas pipeline operator, PipeChina, has announced its first acquisition, agreeing to buy an infrastructure-owning subsidiary of state oil firm Sinopec for yuan 3.22bn ($460mn).

• PipeChina was set up in December 2019, after years of negotiations, to serve as a national oil and gas pipeline operator. It will take control of the pipeline assets of China's big three oil companies – Sinopec, CNPC and Cnooc – and ensure third-party access to their capacity.

Repsol Core Earnings Collapse in Q2

The earnings before interest, tax, depreciation and amortisation at Spain's Repsol came to only €589mn ($683mn) in the first half, down from €3.71bn a year earlier, it said, owing to the destruction of oil and gas demand caused by the coronavirus (Covid-19) pandemic.

• The Spanish major now sees oil averaging $59.60/barrel between 2020 and 2050, after previously projecting an increase to $87/b by 2035.

Gaz-System Seeks Feedback for Gdansk LNG Terminal

Polish gas transmission system operator Gaz-System has launched a non-binding market screening for new transmission capacities to support development of a second LNG import terminal, near Gdansk, it said on July 21.

• Poland's government has declared repeatedly it will not buy any more gas from Russia, its main supplier, after its long-term contract for supplies expires at the end of 2022.

• Besides the Gdansk project, Gaz-System has committed to expanding the capacity of the country's existing Swinoujscie LNG terminal in the northwest from 5.0 to 8.3bn m³/yr by 2024.

Oz Santos Sees 18% Drop in Q2 Revenue

Australian oil and gas explorer Santos reported an 18% yr/yr drop in revenue for the three months to June 30 (Q2 2020) owing to a drop in realised oil, gas and LNG prices.

• The company reported a record output of 20.6mn boe, "driven by higher domestic gas production in Western Australia, continued strong onshore production and a higher equity interest in Bayu-Undan following completion of the ConocoPhillips acquisition,” it said.

Oz Cooper Reports 29% Jump in Q4 Revenue

Sydney-listed Cooper Energy reported a 29% yr/yr increase in revenue during the three months to June 30 (Q4) thanks to higher gas sales volume.

• “The increase is principally due to higher gas sales brought by the first full quarter’s supply from the Sole gas field which commenced production in March 2020,” it said.