Weekly news roundup (27 November-1 December)

CWC World LNG Summit 2017 – Lisbon

Many of the so-called ‘second wave’ of US LNG projects are “running on fumes” since they are not supported by existing revenue streams or abundant early capital investment, Gas Strategies CEO Pat Breen said, adding they face a tougher financing challenge at home and more subdued buyer’s market overseas than the plants that preceded them.

Nigeria LNG’s decade-long expansion aspiration looks set to become reality next year, according to CEO Tony Attah, who said NLNG is targeting FID on the plant’s seventh train in Q4’18.

The majority of LNG headed to Asia will remain indexed to crude oil prices until 2030, though the volume will reduce as more supply from the US and elsewhere comes online, JERA’s senior executive vice president Hiroki Sato told delegates.

Gas-hungry Pakistan needs larger floating storage and regasification units (FSRUs) to underpin gas-fired baseload power supply, GasPort chairman Iqbal Ahmed told delegates.

Outspoken US LNG developer Tellurian claimed it will be able to sell LNG profitably into Asia for USD 4.50/MMBtu, based on a Gulf of Mexico post-liquefaction price of USD 3/MMBtu free-on-board.

International

International oil benchmark Brent held steady last week in the lead-up to the scheduled meeting between OPEC and Russia this week in Vienna, but market fundamentals hint heavily at a big potential for price slippage even if the parties agree to continue limiting production next year.

Shell has cancelled its scrip dividend programme and confirmed plans to press ahead with an ambitious share buy-back programme in a series of bold moves that reflect growing optimism driven by recovering global crude prices.

US & Canada

Canada – ExxonMobil has started production at the Hebron project offshore Newfoundland and Labrador.

US – NextDecade has said it is looking to take a final investment decision (FID) for just 9 mtpa of its proposed 27 mtpa Rio Grande LNG plant in Texas, and is working to deliver the plant at a build cost of USD 450/tonne of liquefaction capacity.

Finnish technology group Wartsila is to provide products and solutions for a new articulated tug barge that will supply LNG fuel to cruise ships along the east coast of Florida.

Africa

Angola – Eni has taken over as operator of the Cabinda North block from state-run Sonangol, after increasing its stake in the block from 15% to 48%.

Morocco – Sound Energy has released new estimates of its Sidi Moktar exploration project onshore Morocco that indicates the field could hold up to 11.2 Tcf of gas.

Asia Pacific

Japan – Japanese utility Kansai Electric Power (KEPCO) is preparing to restart two reactors totalling 2.36 GW at its Ohi nuclear power plant in Fukui prefecture early next year after receiving the go-ahead from the local authority.

Malaysia – Petronas’ Q3’17 profit swelled to MYR 9.96 billion (USD 2.42 billion), up 63% year-on-year, thanks to higher revenue that was in turn driven by higher oil prices.

Pakistan – Hoegh LNG has scrapped a long-term charter agreement with Turkish outfit Global Energy Infrastructure for a floating storage and regasification unit (FSRU) in Pakistan.

Australasia

Australia – Oil and gas E&P outfit Beach Energy has signed a binding agreement with compatriot Cue Energy to take positions in two permits in a “giant” gas condensate prospect offshore Western Australia, which could provide feedstock for LNG export projects in the region.

Perth-based Buru Energy and Japanese partner Mitsubishi Corporation have scrapped plans to drill at five shale licences after the Western Australia state government effectively annulled the permits while a fracking investigation is completed.

Japanese operator Inpex halted construction work at the Ichthys LNG project last week in Darwin, Australia, following a fatality that has reignited long-running health and safety concerns at the troubled plant, but workers returned to the site days later.

Australian coal seam gas developer Arrow Energy has struck a deal to commercialise a major chunk of its Queensland reserves at the Shell-operated Queensland Curtis LNG plant.

Europe

Denmark – Maersk Oil and its partners in the Danish Underground Consortium have reached FID to decision to redevelop the Tyra gas field in the Danish North Sea – extending production for 25 years.

Germany – The resuscitated prospect of another grand coalition between Germany’s ruling Christian Democratic Union (CDU) and the Social Democrats (SPD) will be welcome news to some in Moscow.

Norway – Total has sold interests in two offshore fields on the Norwegian Continental Shelf (NCS) to Statoil as the French major seeks to rebalance its portfolio following its multibillion-dollar acquisition of Maersk Oil.

Poland – Shipyard Remontowa Holding’s subsidiary Remontowa LNG Systems has unveiled plans to construct a pilot docking station, as part of the logistics terminal in Slawkow.

Romania – UK gas outfit Prospex has made a commercial gas discovery at the Bainet-1 well onshore Romania.

Sweden – The port of Oxelosund has set in motion plans to bring online a small-scale LNG import terminal that will also serve as a Baltic bunkering facility on the country's east coast.

Latin America & Caribbean

Argentina – Statoil has won an exploration license for the onshore Bajo del Toro Este block in the Neuquen basin during Argentina’s fifth bidding round.

Venezuela – President Nicolas Maduro has appointed National Guard general Manuel Quevedo to head up state energy company PDVSA.

Middle East

Iraq – Baghdad has invited bids for nine new oil and gas blocks, five of which are located on the border with Iran, three on the Kuwaiti border and one offshore.

Russia & CIS

Russia – Moscow has granted an official green light to start commissioning of train one of the Yamal LNG project.

Uzbekistan – A consortium of investors have signed a production sharing agreement with the government of Uzbekistan to develop the 25 Years of Independence gas field in the south of the country.