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    Natural Gas Daily: June 29th, 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 29th, 2020

Major US Shale Producer Chesapeake Files for Chapter 11

Oklahoma-based Chesapeake Energy filed for Chapter 11 on June 28, becoming the largest US shale oil and gas producer to seek bankruptcy protection in recent years.

 

The Big Picture:

  • Commenting in a research note, Wood Mackenzie analyst Alex Beeker said it was "difficult to point to another company that made more of a widespread impact on the US shale sector than Chesapeake."

 


BP Divests Petrochemicals

BP has agreed to sell its petrochemicals business to the UK firm Ineos for $5bn, enabling it to reach its $15bn divestment target a year early, the oil and gas major said.

 

The Big Picture:

  • BP is scrambling to stem losses, warning earlier this month it would cut close to 10,000 jobs, or around 15% of its total workforce. It is also preparing to book $17.5bn in impairments and write-offs in the second quarter, after lowering its long-term price assumptions for oil.

 


India Looks to Monetise Discoveries Faster

The Indian government has eased rules to enable the earlier and faster monetisation of oil and discoveries under production sharing contracts (PSCs) and revenue sharing contracts (RSCs), upstream regulator Directorate General of Hydrocarbons (DGH) said on June 25 in a statement.

 

The Big Picture:

  • India, which is among the world’s biggest oil and gas consumers, is looking to cut dependence on imports by expanding domestic production.

 


Oz LNG Export Earnings to Fall Sharply

Australia’s LNG export earnings are forecast to drop sharply by 26% yr/yr to US$24bn in 2020–21 (July-June), owing to weak contract and Asian LNG spot prices, as well as an expected rise in the Australian-US dollar exchange rate, according to the department of industry, science, energy and resources.

 

The Big Picture:

  • The impact of the slide in oil prices is expected to be concentrated in the second half of 2020, as today's oil prices only affect term LNG prices after three or more months, when referenced in long-term contracts, and most Australian LNG is sold on oil indexation.

 


Cnooc Strikes Gas in South China Sea

China's state offshore producer Cnooc announced a "significant" discovery in the eastern part of the South China Sea.

 

The Big Picture:

 


Hungary Approves Gas Link with Serbia

Hungarian gas grid operator FGSZ has approved a ten-year development plan that will include the construction of a 6bn m3/yr gas pipeline from Serbia that forms part of the TurkStream extension, it said on June 26.

 

The Big Picture:

  • Work on the TurkStream extension, known as Balkan Stream, is already underway in Bulgaria and Serbia.
  • Hungarian foreign minister Peter Szijjarto said that Budapest intended to buy 6bn m3/yr of gas from Russia via a planned extension of the TurkStream pipeline that runs through Bulgaria and Serbia and ends in Hungary.