• Natural Gas News

    Natural Gas Daily: May 19th, 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: May 19th, 2020

Cameron LNG Begins Production At Train 3

Cameron LNG has begun producing LNG from the third and final liquefaction train of its Phase 1 liquefaction-export project in Hackberry, Louisiana, its operator Sempra Energy said on May 18.

 

The Big Picture:

 


NextDecade Pushes Rio Grande FID to 2021

US LNG developer NextDecade said May 18 it will delay a final investment decision (FID) on its 27mn mt/yr Rio Grande LNG project in Texas until 2021, citing the state of global LNG markets impacted by the Covid-19 pandemic.

 

The Big Picture:

  • NextDecade has secured a 2mn mt/yr sale and purchase agreement with Anglo-Dutch major Shell for a 20-year term and believes it can achieve FID with an additional 9mn mt/yr of LNG sales under long-term contracts.

 


Rystad Sees US Gas Output Bottoming in November

Norwegian consultancy Rystad Energy said it expects US natural gas production to bottom out at about 82.5bn ft3/day in November before gradually recovering to about 84.5bn ft3/day by the end of 2021.

 

The Big Picture:

  • Rystad’s forecast is based on a gradual recovery of the benchmark WTI crude oil price towards $35/b and the benchmark Henry Hub gas price towards $2.50/mn Btu in the first half next year.

 


Gazprom Starts Designing 2nd Chinese Pipe

Russia's Gazprom has launched feasibility studies to build a second gas pipeline to China capable of pumping up to 50bn m3/yr of gas, its CEO Alexei Miller was quoted as saying by Russian news agencies on May 18.

 

The Big Picture:

  • While Power of Siberia connects eastern Siberian fields with China directly, Gazprom's new pipeline will run through Mongolia to China, carrying gas from the Yamal Peninsula.
  • In a separate announcement, Gazprom provided an update on progress at its project to erect an integrated gas processing and LNG production complex at the Baltic port of Ust-Luga.

 


Petronas Closes Suriname Sale to ExxonMobil

Petronas has completed the farm-out of a 50% stake in Block 52 off the coast of Suriname to ExxonMobil, it reported.

 

The Big Picture:

  • France's Total and the US' Apache made a "significant" light oil and gas-rich condensate discovery off Suriname back in January.

 


Energean's North Sea Sale to Neptune Collapses

Energean Oil and Gas's $280mn sale of North Sea assets to Neptune Energy has fallen through, both companies reported, prompting the former to seek a restructuring of a larger deal to buy Edison E&P.

 

The Big Picture:

  • Energean struck a $750mn deal last summer to acquire Edison E&P, the upstream arm of EDF-owned Edison. But it went on to sign a second agreement to sell Edison E&P's North Sea assets to Neptune.