LNG

April 28 (LNGJ) - UK major and leading LNG sector participant BP reported a 67 percent drop in first-quarter earnings as the effects of coronavirus pandemic began to be felt in the energy sector. BP recorded first-quarter net income of $791 million versus $2.4 billion in the same three months of 2019. In its key quarterly events, BP noted that a ‘force majeure’ notice was issued under the agreement with Golar LNG for the provision of a floating liquified natural gas vessel for the FLNG project offshore Mauritania and Senegal.

   BP does not give separate LNG production details but total quarterly natural gas output came to 7,387 million cubic feet per day, down from 7,872 mmcf per day in the 2019 quarter. Average realised natural gas prices fell to $2.83 per thousand feet from $4.02. “Our industry has been hit by supply and demand shocks on a scale never seen before,” said Bernard Looney, who took over as Chief Executive in February. “We are taking decisive actions to strengthen our finances - reinforcing liquidity and rapidly reducing spending and costs,” added Looney.

UK major BP has issued a “force majeure” notice to a subsidiary of Golar LNG relating to the delivery of a floating LNG production hull, the “Gimi”, for a start-up date in 2022 for the Greater Tortue Ahmeyim project offshore Mauritania and Senegal.