• Natural Gas News

    Natural Gas Daily: October 28th, 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, Top Stories

Natural Gas Daily: October 28th, 2020

MENA GAS INVESTMENTS HOLD STEADY: APICORP

Dammam-based Arab Petroleum Investments Corporation in its Middle East & North Africa Gas & Petrochemical Investment Outlook 2020-24 report, published early October, said that despite the present market turmoil, committed gas investments in the region held steady compared with the forecast in its Gas Investment Outlook 2019-23 report, while planned investments actually increased by 29%.

  • The IEA now predicts a 3% fall in gas demand this year, it said in its Global Gas Security Review 2020, after forecasting a 4% decline in June. This still marks the biggest drop on record, driven by demand losses in mature markets across Europe, Eurasia, North America and Asia. 

  • This is in contrast with 2019 which was a record year for LNG final investment decisions.

 

NORWEGIAN OUTPUT DIPS SHARPLY BELOW FORECAST IN SEPT

Norwegian oil and gas production fell significantly below the level forecast in September, the Norwegian Petroleum Directorate (NPD) reported, citing maintenance work and technical problems at some fields as factors.

  • Production rates were affected this month by the closure of six fields due to strike action.

  • Oil and gas firms are due to drill only 30 exploration wells off Norway in 2020, representing a 14-year low and less than half the amount in 2019, the Norwegian Petroleum Directorate (NPD) said in a report published October 27.

 

EXXON, JERA INKS VIETNAM POWER MOU

ExxonMobil and Japanese utility Jera have teamed up to establish a gas-to-power project in Hai Phong city in Vietnam, Jera said in a statement.

  • Demand for LNG in Vietnam’s power sector is expected to reach 8.5mn metric tons/year by 2030, the country's industry and trade ministry said on September 28.
  • Despite Covid-19, emerging Asia remains a bright spot for LNG demand growth. 

     

TOTAL REPORTS S AFRICAN DISCOVERY (UPDATE)

France's Total has made a "significant" gas condensate discovery at the Luiperd prospect off South Africa, it said.

  • Total operates the 19,000-km2 block 11B/12B with a 45% stake, while Qatar Petroleum has 25%, CNR international 20% and South African consortium Main Street 10%. Africa Energy owns 49% of Main Street. The group made the play-opening Brulpadda discovery in February last year.

  • South Africa is hoping that discoveries at block 11B/12B can be used to bolster dwindling domestic gas supply. Local authorities warn that the Mossel Bay gas-to-liquids (GTL) plant could run out of gas feedstock by the end of this year. 

     

CANADIAN GAS EXPORTS TO US MIDWEST DOWN 20%

Canadian natural gas exports to the US Midwest fell by about 20% in the first half of 2020, the Canada Energy Regulator (CER) said. It was the largest contributor to an overall 10% decline in exports to the US through July.

  • Associated gas production from the Bakken ramped higher in the first quarter as crude oil production rose, and most of that went into the Northern Border system, squeezing out Canadian producers. 

 

NOVATEK SEES STEEP DECLINE IN Q3 PROFITS 

Net income at Russian gas firm Novatek slumped to rubles 13.2bn ($170mn) in the three months ending September 30, down from rubles 370bn a year earlier, it reported.

  • Novatek blamed the weaker results on low prices and devaluation of the ruble, as well as other factors relating to the coronavirus pandemic.
  • Novatek's Arctic LNG-2 project is due online in 2023Novatek has signed deals chartering 15 other tankers for the project from its joint venture with Sovcomflot, Smart LNG.