20 April 2024
Gas Matters Today | news roundup | 2-6 March 2020
Publication date: 09 March 2020
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The global coronavirus outbreak is proving to be a convenient scapegoat for gas and LNG companies [1] struggling to adapt to challenging market conditions that have been years in the making.
Global stock markets and the oil price plummeted [2] last Friday as the economic ramifications from the novel coronavirus outbreak rippled around the world, leaving analysts struggling to agree on how and when the market might bottom out.
Kiev and Washington are conspiring to thwart Gazprom’s hopes of completing the Nord Stream 2 pipeline [3], the CEO of Ukrainian firm Naftogaz Andriy Kobolyev revealed during an event held by Washington-based thinktank the Atlantic Council.
ExxonMobil is pumping the brakes on its flagship Permian shale projects [4] in response to flagging global oil and gas prices and a deteriorating outlook for global economic growth as the world struggles to contain the Covid-19 coronavirus outbreak.
Somalia – A Shell-ExxonMobil partnership is looking to revive [5]offshore exploration efforts [5] after agreeing an initial roadmap with the east African state’s government that enabled awarded concessions to be converted into production sharing agreements.
China – PetroChina, China’s largest importer, has reportedly called force majeure on certain gas and LNG contracts [6] in response to plummeting domestic demand triggered by stringent government restrictions intended to halt the spread of the novel coronavirus.
Australia – Exports from Australia’s east coast liquefaction projects into China slumped to their lowest LNG monthly total in almost three years [7] in February, the latest trade statistics from the port of Gladstone has revealed.
EU – The EC is already thinking to double European purchases of Azerbaijani gas [8] to 20 Bcm/year, a senior official has said, amid the near completion of the TAP pipeline and Brussels advancing legislation to become “climate neutral by 2050”.
Bulgaria – Bulgaria has secured a 40% discount on a long-term contract with Gazprom [9], PM Boyko Borisov has said, adding that the price reduction was the largest among the seven other east European countries to have renegotiated with the Russian firm.
UK – European oil majors BP, Eni, Equinor, Shell and Total have taken over development of the Net Zero Teesside project, a CCUS showcase planned to become the UK’s first zero carbon cluster [10] in north-east England.
A coalition of energy majors, financiers, infrastructure operators and engineering firms including Shell and BP has called on the government to develop a nationwide hydrogen strategy [11] and commit USD 1.3 billion to support new infrastructure.
Canada – Construction on the CGL pipeline designed to feed the LNG Canada project [12] is set to resume today, the developer said after the federal and BC governments agreed to recognise the hereditary governance system of the Wet’suwet’en First Nation.
Canadian LNG player GNL Quebec has confirmed that a “major” potential private investor opted to pull the plug [13] “at the very last second” on investing in its proposed Saguenay LNG project due to the “political context” in Canada.
US – Wyoming state is interested in buying millions of acres of minerals-rich land [14] from Occidental Petroleum, the US firm has revealed late last week, in a move that could eventually mark the largest state-backed land purchase since 1867.
LNG developer Tellurian is slashing its overheads [15] in response to “uncertain market conditions” and is seeking to extend the deadline on a hefty loan repayment that is due in May, the company has said.
Chevron is looking to keep sceptical investors onside by telling the market it has the potential to deliver “leading” shareholder returns [16] of USD 75-80 billion over the next five years, without relying on oil prices increasing.
Kinder Morgan’s proposed Permian pipeline push may hit a snag [17] as the company is struggling to secure long-term capacity agreements to underpin a third gas evacuation pipe serving the shale play, the firm’s chief strategy officer has said.
An outsider Republican candidate seeking a seat on the Texas Railroad Commission [18] has ousted incumbent commissioner Ryan Sitton, in a surprise win that makes him favourite to defeat a Democratic challenger in a run-off later this year.
Investment in new US gas infrastructure is “incompatible with long-term shareholder and societal well-being” [19], according to a new report from a US non-profit focused on promoting environmental and social corporate responsibility through shareholder advocacy.