Natural Gas Daily: June 9th, 2020
Gazprom Pens Key Deals for Baltic Gas Complex
Gazprom has signed several key agreements for the Baltic gas processing and LNG production complex it is developing with private partner Rusgazdobycha at the Baltic port of Ust-Luga, it said on June 8.
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The Big Picture:
- The complex is due to come on stream in 2023 or 2024. Gas will be fed into Gazprom's Nord Stream pipelines for delivery to Europe, while the LNG will be shipped to markets via tankers.
Japanese May Spot LNG Price Drops Sharply
The average price of spot LNG imports into Japan contracted in May was $2.2/mn Btu, sharply down from $5.4/mn Btu in the same month a year earlier, the country's trade ministry (Meti) said. Compared with April, the price was down by 8.3%.
The Big Picture:
- First-quarter 2020 LNG imports fell by 3.7% on year, with the prospects for 2020 as a whole uncertain.
Alberta Regulator Sees Gas Production Decline
The Alberta Energy Regulator (AER), in its latest energy outlook released June 8, is forecasting a 3.8% decline in the province’s marketable natural gas production by 2029 as output from new wells is not expected to keep pace with declines from maturing basins.
The Big Picture:
- Demand from power generators will increase 58% over the forecast period, as utilities retire coal-fired plants in favour of gas-powered generating units.
Equinor Takes Decision on Field Electrification
Norway's Equinor and its partners have taken an investment decision on the partial electrification of Sleipner field centre in the North Sea, the state oil company said.
The Big Picture:
- The investment will support the goal of bringing offshore Norwegian greenhouse gas emissions to zero by 2050, Equinor said.
PGNiG Strikes Polish LNG Sales Deal
Polish gas company PGNiG has signed a deal to deliver LNG to a plant that South Korea's LG Chem plans to build near Wroclaw to produce electric car batteries, it said on June 8.
The Big Picture:
- PGNiG expects to see a growth in small-scale industrial LNG use in Poland in the coming years.
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Poland has steadily increased its LNG imports in recent years, as part of efforts to reduce its reliance on Russian supplies and coal-fired power.
NY Group Emerges as New Magnolia LNG Owner
A New York energy conglomerate emerged as the new owner of the proposed 8-10mn mt/yr Magnolia LNG project in Louisiana, sold out of voluntary protection last month by Australia’s LNG Limited (LNGL).
The Big Picture:
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Glenfarne Group, which also owns the 4mn mt/yr Texas LNG project planned for near Brownsville, Texas, said it had completed the Magnolia acquisition through its wholly-owned subsidiary Magnolia LNG Holdings LLC.
