Natural Gas Daily: October 16th, 2020

Oz LNG Exports Flat in Sept: EnergyQuest

Australian LNG exports in September were 6.2mn metric tons (91 cargoes), unchanged from the same month of last year, energy consultancy EnergyQuest said in a report published on October 15.

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• Exports in September were down 6% month on month, however, due to decreased production at the North West Shelf and Gorgon projects, EnergyQuest said.

• EnergyQuest estimates that Australian LNG export revenues decreased in September to A$1.94bn (US1.37bn), down from A$2.12 billion in August and down by 52% compared with the September 2019 level.

Russian Gas Output Recovers in Sept

Russian natural gas production rose 4.8% month on month(m/m) in September to 48bn m³, the federal state statistics service reported on October 15. Output was down 0.4% year on year (yr/yr), however.

• Gazprom, Russia's biggest gas producer, has cut back supplies to its main market Europe this year because of the impact of coronavirus pandemics, high levels of gas in storage and competition from LNG.

EBRD to Work on Shift from Coal in W Balkans

The European Bank for Reconstruction & Development (EBRD) is to lead the financial arrangements that will underpin the transition from coal in western Balkans, it said. This may include its own financing as well.

• The bank is aiming to be a majority green investor from 2025, but accelerating a shift from coal might be considered a good use of its money.

• For more on the region, the present energy mix and the prospects for greater use of non-Russian gas, see this feature published in the current issue of NGW.

PGNiG, Aker BP Extend Trade Arrangements

Polish state PGNiG Supply & Trading (PST) said that it has signed a contract with Aker BP for the sale and purchase of natural gas produced on the Norwegian Continental Shelf. The two are partners in the Skarv field and satellites, among others, whose gas is delivered to Germany.

• European energy traders as well as the European Commission have complained repeatedly in recent years to Warsaw about the dominance of the Polish state in the Polish market and the barriers to competition.

• PGNiG is to be merged with state refiner PKN Orlen and other entities to create a gas, oil and power behemoth.

European Storage Withdrawals Start

European storage inventories began to decline in the week starting October 12, according to data from Gas Infrastructure Europe. While in some countries injections into storage continued, in most they either stopped or reversed as colder weather moved in. There have been withdrawals before this autumn, but not in such volume.

• European hub prices for prompt and forward delivery have risen since their summer trough, bringing storage capacity-holders the chance to make some money from the seasonal spread.

Oz East Coast Needs LNG Imports: EnergyQuest

States on the Australian east coast, especially Victoria, will need to import LNG to bridge the expected supply shortfall, energy consultancy EnergyQuest said in a report published on October 15.

• AGL’s Crib Point is not the only proposed LNG import project in Victoria, Viva Energy is actively pursuing a project for Geelong.

• "Even if Santos’s Narrabri project goes ahead following the recent favourable decision by the NSW Independent Planning Commission, it will not be sufficient to offset the decline from offshore Victoria and the Cooper Basin,” EnergyQuest added.