• Natural Gas News

    Natural Gas Daily: June 26th, 2020

Summary

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

by: NGW

Posted in:

Complimentary, Covid-19, Daily Digest

Natural Gas Daily: June 26th, 2020

Russia Could Send 130bn m3 of Piped Gas to China: Miller

Russia's Gazprom has discussed raising gas shipments to China via the Power of Siberia pipeline by 6bn m3/yr beyond the agreed amount in its contract with CNPC, its CEO Alexei Miller said, adding that eventually up to 130bn m3/yr of piped Russian gas could be sent to the Chinese market.

 

The Big Picture:

  • Taking into account volumes via the planned 50bn m3/yr Power of Siberia 2 pipeline through Mongolia to China and additional supplies from the Far East, this could mean that Russian piped gas sales to China reach 130bn m3/yr, he said.

 


Gail Eyes Stake in Indian Gas Exchange: Press

India’s largest gas marketing company, state-run Gail, plans to acquire a 26% stake in India’s first natural gas exchange which went online last week, according to a local newspaper report published on June 25.

 

The Big Picture:

  • On June 15, Indian Energy Exchange (IEX) launched India's first online delivery-based gas trading platform. The Indian Gas Exchange (IGX) was virtually inaugurated by Indian petroleum and natural gas minister Dharmendra Pradhan.

 


US Gas Prices Struggle as Storage Builds

A triple digit build in US natural gas storage, announced by the Energy Information Administration June 25, has pushed the prompt month CME Nymex contract at Henry Hub into territory never seen before for June trading, consultancy RBN Energy said.

 

The Big Picture:

  • The price collapse, RGN said, is a clear signal that some sort of correction is needed in the supply-demand balance to “stave off” storage constraints this fall.

 


Gazprom Inaugurates Rig Work for New Yamal Field

Russian state-run gas monopoly Gazprom has held the foundation-laying ceremony for its ice-resistant platform that will be used to develop the Kamennomysskoye Sea field in Russia's far north, it said June 25.

 

The Big Picture:

  • Production is due to start in 2025, with a design output (for Cenomanian deposits) of 15bn m³/yr.

 


Argentina Issues Force Majeure on LNG FPSO

Argentina's YPF has issued a force majeure notice to Exmar, the Belgian operator of the Tango LNG vessel said late June 25. It said the notice was not lawful and was considering how best to defend its interests.

 

The Big Picture:

  • The threatened non-payment will hit Exmar hard: its first quarter results showed that the Tango floating LNG terminal contributed 36% of its total pre-tax profits (Ebitda) for the period. It loaded its first commercial cargo last November.

 


Ukraine Rejects Delay, Offers More Gas Import Capacity

The Ukrainian gas TSO (GTSOU) has offered an alternative way for traders to import gas from the west this summer, following its announcement that it will have to close the line entering at Budince on the border with Slovaka for seven weeks.

 

The Big Picture:

  • The gas transmission system operators of Ukraine and Slovakia need to agree on how to allow more gas to flow from the EU into Ukraine.