• Natural Gas News

    Natural Gas Daily: June 5th, 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 5th, 2020

US Lawmakers Introduce New NS2 Sanctions Bill

US senators Ted Cruz, Jeanne Shaheen and John Barrasso introduced a bill to the senate on June 4 that would expand sanctions against Russia's Nord Stream 2 project: the Protecting Europe’s Energy Security Clarification Act (PEESCA).

 

The Big Picture:

  • The US claims Nord Stream 2 will undermine European energy security, but Russia has accused the US of merely wanting to protect the commercial interests of its LNG exporters.

 


BP Seeks $1bn Sale at Oman Gas Project: Press

BP is at the early stage of negotiating the sale of a 10% stake in the Khazzan gas field in Oman, Bloomberg reported on June 4 citing sources.

 

The Big Picture:

  • The UK major embarked on a major divestment programme last year, aiming to shed $10bn of assets by the end of 2020, followed by a further $5bn by mid-2021.

 


Texas LNG CEO Slays LNG Canada Project

The CEO of a tiny 4mn mt/yr LNG project under development on the Gulf Coast of Texas said June 4 the 14mn mt/yr LNG Canada project in BC being developed by a consortium led by Anglo-Dutch major Shell could be as much as 40% over budget and may miss its mid-decade completion target by “many years.”

 

The Big Picture:

  • “In today’s commodity market, where the price is the key, I think it’s a massive risk,” he said. “If you have to take locational risks, and build stick-built giant plants in the middle of nowhere, it’s a risky proposition in today’s market.”
  • LNG Canada, however, is not a “stick-built” project.

 


Oz LNG Exports Holding Strong: EnergyQuest

Australian LNG exports are holding at near-record levels, despite the global surplus of LNG and the contraction of economic activity due to Covid-19, energy consultancy EnergyQuest said in a report published on June 5.

 

The Big Picture:

  • Growth in demand from Korea, China and Taiwan more than offset a small reduction in demand from Japan.

 


Shell Collaborates in Dutch Bio-LNG Venture

Anglo-Dutch Shell has teamed up with waste management firm Renewi and bio-LNG developer Nordsol to produce bio-LNG in the Netherlands.

 

The Big Picture:

  • Shell will distribute the gas to its LNG filling stations but there was no mention of the value of their project or the volume it would produce.

 


Eni Splits Clean Energy Business from Oil & Gas

Eni announced on June 4 it was establishing a new division to focus on renewable energies, in a restructuring move aimed at putting the Italian oil and gas major on "an irreversible path" towards decarbonisation of its products.

 

The Big Picture:

  • It will be "dedicated to supporting the evolution of the company's power generation, product transformation and marketing from fossil to bio, blue and green."