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    Natural Gas Daily: December 30th, 2020

Summary

Daily digest of the latest natural gas news and LNG news by Natural Gas World.

by: NGW

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Complimentary, Covid-19, Daily Digest, Top Stories

Natural Gas Daily: December 30th, 2020

DEMAND, SHIPPING PAINS PUSH ASIAN LNG PRICES HIGHER

Strong demand in Asia and logistical constraints have pushed international LNG prices to highs not seen in two years, RBN Energy said in a blog post, with the key Japan-Korea Marker (JKM) reaching $11.55/mn Btu for prompt contracts on December 28.

  • The higher prices, RBN analyst Sheetal Nasta wrote, are a reflection of strong winter demand, especially in northern Asia, and supply constraints dating back to last summer, when US cargo cancellations kept more than 600bn ft3 out of the global LNG market.

 

UK PARLIAMENT APPROVES EU WITHDRAWAL BILL [UPDATE]

UK members of parliament approved the European Union withdrawal bill, just over 24 hours before the UK's transition period ends. From January 1, the former EU member state will be trading with its nearest partners on new terms and conditions.

  • Many other aspects of life will also be different in the UK from now on, but tariffs and quotas will not be imposed on trade, which had been a major worry. And energy traders on either side of the English Channel welcomed the lack of disruption that should result.
  • The UK upstream industry group OGUK has welcomed the deal, saying it has "consistently stated that a deal would be the best outcome for our industry.

 

ENERGEAN TO BUY OUT ISRAELI FIELD PARTNER FOR UP TO $405MN

Mediterranean-focused Energean has entered a deal to buy private equity fund Kerogen's 30% shares in the Karish and Tanin gas leases off Israel for between $380mn and $405mn, the company said.

  • The company is fresh from closing its $284mn takeover of the upstream arm of Italy's Edison earlier this month, which gave it positions in Croatia, Egypt, Italy and the UK.

  • Energean will produce gas from its Israeli fields using a 8bn m3/yr floating production storage and offloading unit. Kerogen originally held 50% of Energean Israel, the operating company, but sold 20% to Energean.

 

SINOPEC RAMPS UP WINTER GAS SUPPLIES

Chinese state-run Sinopec has ramped up gas supplies to the domestic market during the ongoing winter season running from November 1 to March 15, it said.

  • Sinopec last month said it planned to supply a total of 20bn m3 of natural gas during the winter season, up 5.3% yr/yr.  

 

EGYPT'S ABU SENNAN PARTNERS LAUNCH GAS PIPE

A gas pipeline has been completed and commissioned at the Abu Sennan licence in Egypt, increasing gas recovery rates, one of the project's partners London-listed United Oil & Gas (UOG) said.

  • UOG, which has a 22% interest in Abu Sennan, will net 1.2mn ft3/day of this gas flow. The Abu Sennan licence is operated by Kuwait Energy with a 25% stake, while Global Connect has 25% and Dover Investment has 28%.

 

PTTEP GETS GREENLIGHT FOR GAS-TO-POWER PROJECT

Thailand's PTTEP has secured the exclusive right from Myanmar's government to develop a $2bn gas-to-power project in the country, it said.

  • Myanmar, which generates roughly half of its power from gas and half from hydroelectric dams, is looking to build 4 GW of LNG-to-power capacity to meet rising demand for electricity.