Natural Gas Daily: January 8th, 2021
Single-handedly, Saudi Arabia has helped Dated Brent crude break the $55/barrel mark for the first time since February last year, said Rystad Energy.
The latest production cut from Saudi Aramco and the expected higher compliance from the Opec block has eroded crude stocks for nearly every month in 2021, it calculates.
The roughly 7% jump in the oil price that followed the January 5 meeting also quickly fed through into higher market capitalisations for oil producers.
US president-elect Joe Biden may have a smooth inauguration January 20 following the stunning events earlier this week at the Capitol, but he will need to wait until June before giving the Federal Energy Regulatory Commission (Ferc) a Democratic blue hue.
With the swearing in of Mark Christie, nominated in 2020 by outgoing Republican president Donald Trump, on January 4, Ferc again has a full complement of commissioners – all Trump nominees.
The US Department of Energy (DoE) said it had issued a policy statement removing the requirement that holders of long-term export authorisations seek separate short-term approvals for the same volumes.
- “We are increasingly seeing more sales of LNG on the spot market, and this action by DoE is allowing more flexibility for US LNG exporters,” deputy energy secretary Mark Menezes said. “With this policy, US LNG exporters can let the market – not our regulatory process – determine which LNG cargos will be exported under long-term or short-term agreements on the spot market.”
Chinese state-owned PetroChina’s overseas oil and gas production in 2020 was 109mn metric tons of oil equivalent, its parent CNPC said without giving year/year comparison.
- CNPC on January 4 said its domestic oil and gas production in 2020 hit a record of 200mn mt of oil equivalent and gas production exceeded domestic crude oil output for the first time ever.
Nasdaq-listed Plug Power and South Korea’s SK Group in a January 6 joint statement said they intend to form a strategic partnership to accelerate hydrogen as an alternative energy source in Asian markets.
SK Holdings, a unit of SK Group, last month said it is looking to enter the hydrogen industry and has set up a new unit dedicated for the purpose.
- SK E&S plans to build a 30,000 metric tons/year liquefied hydrogen production facility by 2023 to supply liquefied hydrogen to the large urban areas. The company, South Korea’s largest LNG supplier, is also looking to operate an eco-friendly blue hydrogen mass production system.
South Korean Samsung Heavy Industries (SHI) has received design approval for X-Reli, an LNG re-liquefaction system for X-DF vessel engines, from American Shipping Bureau (ABS), it said on January 7.