Natural Gas Daily: July 28th, 2020
The trading arm of Azerbaijan's Socar – a company with no equity LNG production – has offered the lowest-cost LNG supplies for delivery late August in a tender held by Pakistan LNG, the latter said.
- China's PetroChina offered 8.35% of Brent whereas commodities giants Gunvor and Trafigura placed bids of 7.84% and 10.38% respectively.
Italy's Eni and partners BP and Total have successfully test-flowed a discovery they made at the Bashrush prospect off Egypt at the start of July, estimating that the well could flow up to 100mn ft³/day of gas and 800 barrels/day of condensate.
- Bashrush is in the North El Hammad concession, which Eni operates with a 37.5% interest. BP holds a further 37.5% and Total 25%.
Construction has begun on the southern section of the China-Russia East gas pipeline, Chinese state media reported.
- The China-Russia East pipeline carries gas arriving in China from Russia's 38bn m3/yr Power of Siberia pipeline.
- Despite a slowdown in Chinese gas demand this year, Gazprom has said it is negotiating an increase in gas deliveries via Power of Siberia to 44bn m3/yr, requiring the pipeline's expansion.
Japan’s Marubeni Corporation, with Sumitomo Corporation, Mitsui, and Eden Group, has been granted permission to develop a gas-fired power plant in the Thilawa region of Myanmar, it said on July 27 in a statement.
- A bright spot in a gas market reeling from the demand shock has been the start of LNG imports to Myanmar with Malaysia’s Petronas reporting the delivery of its first LNG cargo onboard the 27,500 m3 CNTIC VPower Global in early June.
- Recently, Myanmar’s first gas-fired power plant came online.
Norwegian consultancy Rystad Energy said it expects associated gas production from the Permian basin in the US will recover quickly in the second half this year, but uncertainty regarding future pipeline developments out of the basin could lead to increased flaring after 2023.
In a post-Covid environment, Rystad said, there may be little appetite for new or continuing infrastructure investments, which could constrain the development of additional takeaway capacity from the Permian.
Austria's OMV has significantly downgraded its resource estimate for the 2018 Hades gas and condensate discovery off Norway after drilling an appraisal well, the Norwegian Petroleum Directorate (NPD) said.
Hades is situated in licence 644, which OMV operates with a 30% stake. Equinor, DNO and Spirit Energy have shares of 40%, 20% and 10%. The deposit is next to another OMV discovery called Iris, and the Austrian firm's plan had been to develop the pair jointly.