Gas Matters Today | news roundup | w/c 19 Oct 2020

International

Russia’s top independent gas producer Novatek is moving to explore hydrogen exports from Russia to “promising markets” worldwide, CEO Leonid Mikhelson said, with a strong emphasis on Japan.

Washington is looking to tighten the screw on the Gazprom's Nord Stream 2 pipeline project, with the US State Department widening proposed sanctions to companies providing services, facilities or funding for “upgrades or installation of equipment” for vessels.

Baker Hughes fell to its third consecutive net loss in the third quarter of this year, the company reported last week in dismal results weighed down by prolonged subdued activity in the North American shale sector and in global markets.

Engie has “delayed” a deal to lift significant US LNG volumes from hopeful NextDecade after the French government reportedly interceded, citing the emissions footprint of Texas shale wells that would feed the flagship 27 mtpa Rio Grande LNG project.

Africa

Equatorial Guinea – The Shell-chartered Methane Princess LNG carrier was attacked by pirates last Saturday while anchored off Malabo, with one crew member kidnapped, according to the International Maritime Bureau.

Tanzania – The Islamist insurgency plaguing Mozambique’s Cabo Delgado region has spilled into neighbouring Tanzania, with 300 militants attacking a village near the port of Mtwara – an oil and gas logistics base – last week, Tanzanian officials have confirmed.

Asia Pacific

China – Total, the world’s second largest LNG player, has delivered its maiden shipment of ‘carbon-neutral’ LNG to CNOOC, marking that company’s second purchase with offset emissions.

Japan – LNG bunkering joint venture Central LNG has carried out Japan’s first ship-to-ship transfer of LNG, as the country seeks to position itself as a global LNG bunkering hub, amid anticipated growth in demand for the maritime fuel driven by low prices and new policies.

Philippines – State-owned PNOC EC aims to start exploration in the West Philippine Sea by Q4’21, the company announced last week after Philippines president Rodrigo Duterte lifted a moratorium on drilling in the area.

Australasia

Australia – Japanese firms JERA and Marubeni have pulled out of consortium AIE – the joint venture developing the planned Port Kembla LNG terminal – by selling their combined 50% interests in the project to privately held firm Squadron Energy.

Santos and Woodside both believe LNG prices bottomed out in Q3, the pair said on Thursday when reporting lower revenues from their LNG businesses on the back of declining oil-linked prices.

The Australian government has made a strategic pivot towards renewable fuels by fast-tracking the “world’s largest” 26 GW green power, hydrogen, ammonia and methanol production facility in Western Australia.

Central & South America

Argentina – Argentina has lost its LNG exporter status sixteen months after shipping its first cargo, after state-owned YPF terminated its charter contract with Belgian shipping firm Exmar for the Tango FLNG vessel due to the low price environment.

Europe

Denmark / Norway / Poland – Poland’s PGNiG Supply & Trading has firmed up volumes for the Baltic Pipeline – running from Norway to Poland via Denmark – after signing a gas supply deal with Denmark’s Ørsted, starting in 2023.

Turkey – Turkish president Recep Tayyip Erdogan has declared an increase in resources at the Tuna-1 (Danube-1) wellsite in the Black Sea to 14.3 Tcf after further drilling.

North America

US – ConocoPhillips and Concho Resources have confirmed recent speculation of an imminent Permian shale mega-merger after the boards of both companies agreed to combine in an all-shares deal valued at USD 9.7 billion.

The wave of consolidation in the US shale sector ained further momentum with news that Permian drillers Parsley Energy and Pioneer Natural Resources are in talks over a potential merger. Days later, the US’ largest gas producer EQT entered the M&A shale rush after being linked with a takeover of fellow Appalachian basin producer CNX Resources.

Iberdrola has agreed to buy New Mexico utility PNM Resources in a USD 8.3 billion deal that marks the Spanish utility’s eighth acquisition this year, saying it wants to help facilitate a worldwide “green recovery” from Covid-19.

Facing-off against US president Donald Trump ahead of the November election, Joe Biden last week pledged to end federal subsidies for the fossil fuel industry and lead a “transition” away from oil and gas, but again ruled out a nationwide ban on fracking.

South Asia

Bangladesh – The country is reportedly considering cancelling a spot LNG tender seeking cargoes in November after bids were deemed too expensive, as offers were priced higher than what Dhaka pays for its long-term oil-indexed LNG volumes.