• Natural Gas News

    Natural Gas Daily: October 22nd, 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: October 22nd, 2020

LNG PRODUCERS MUST BRACE FOR MORE SHUT-INS: REPORT

Global gas production capacity will most probably exceed demand next year again, which will mean more shut-in of LNG plants globally, according to a new report by the Oxford Institute of Energy Studies.

  • There have been shut-ins at pretty much all the plants around the world, with the exception of the lowest-cost producer Qatar, the report's author Mike Fulwood told NGW, although not below the offtakers' take-or-pay levels. And even Qatar did some cargo diverting. 

 

NEED FOR FLEX DRIVES PERMIAN M&A: COMMENT

In recent days there have been two all-stock merger and acquisition (M&A) deals proposed, for a combined $14bn+ in the US Permian Basin. They follow two earlier this year; and the $38bn Occidental-Anadarko megadeal back in 2019.

 

FRANCE BLOCKS US LNG DEAL OVER SHALE CONCERNS: PRESS

The French government blocked Engie last month from signing a 20-year deal worth potentially $7bn with US LNG exporter NextDecade over concerns that US shale gas is too dirty, Politico reported on October 21, citing sources. 

  • The gas in question will come from NextDecade's planned Rio Grande terminal in Texas. NextDecade had hoped to reach a final investment decision on the phased, 27mn metric ton/year project this year, but has delayed the move until 2021. 
  • NextDecade recently announced it would seek to bring down expected CO2 emissions at Rio Grande by 90% using carbon, capture and storage technology and other processes, and explore options to deal with the remaining 10%. 

     

INDIAN LNG IMPORTS UP 6% IN SEPT

India’s LNG imports in September came in at 2.97bn m3 (2.1mn metric tons), up 6.2% yr/yr, according to the data published by the Indian oil and gas ministry's Petroleum Planning and Analysis Cell (PPAC) on October 21. The imports were unchanged month on month.