PetroChina mulls suspending US LNG purchases this winter
Amid rising tensions, PetroChina considers suspending its US LNG purchases for delivery this winter. Location swaps of cargoes might help sort matter, with Japan and South Korea expected to step up imports of American LNG in order to sell some cargoes onward to Chinese buyers.
AES Colón LNG-to-power project slated to start on Sept 1
Panama’s $1.15 billion AES Colón venture, an integrated LNG import terminal and power plant, is due to start full commercial operation on September 1. Investors inaugurated the project this week.
Horizon finalises EPC concept for Western LNG
ASX-listed Horizon Oil has just finalised the engineering concept on its Western LNG development in Papua New Guinea. The 1.5 mpta project will generate US$20-30 billion in revenues over its lifetime, according to Horizon’s new CEO Michael Sheridan.
Mexcio offtakes more US LNG amid limp demand from Brazil
One-in-five LNG cargoes setting sail from Sabine Pass are heading to Mexico this year while demand from Argentina and Brazil remains sluggish. Mexico imported 29 cargoes from the US in H1-2018, according to data from the U.S. Department of Energy (DoE).
Henry Hub seen rebound to $3.08 in 2019
Dry gas production in the U.S. is about to reach a record of 81 Bcf per day, spurring LNG exports and pushing down prices. Henry Hub is seen average $2.99/MMBtu for the full year 2018, but notch up to $3.08/MMBtu in 2019.
Moody’s sees IOCs adapt to ‘low-carbon transition risk’
Hazards of oversupply are preoccupying International Oil Companies (IOCs) as less carbon-intensive sources of energy compound the risk of future oil and gas oversupply. Still, Moody's analysts are convinced oil majors will tackle these new issues through a triad of conservative financial policies to strengthen balance sheets, capital discipline, and robust long-term planning that anticipates secular shifts – like the global trend towards renewables and energy storage.
Buyers pay above variable cost for US LNG
Several LNG buyers seem happy to pay a premium for supply from Australia and the U.S. Forward prices, imply Asian LNG buyers pay above the variable cost of U.S. LNG delivered ex-ship which, according to S&P analysts, “is not what you would expect in an oversupplied market.”
Awaiting new Appalachia takeaway capacity
U.S. shale gas developer eagerly await new Appalachian takeaway capacity to come online so the region can provide the bulk of 2018’s dry production growth. Delays of the $4.3-billion Rover Phase-2 pipeline project impact on the anticipated 4.0 bcf/d gains in shale gas output from the Appalachia region.
Junker says EU would ‘build more LNG import terminals’
Seeking to accommodate U.S. President Donald Trump’s demands for greater LNG sales to Europe, the European Commission President Jean-Claude Junker has said the EU would build more LNG import terminals. However, this does not mean imports will increase as the JKM-TTF spread has stayed wide enough over the past year for US cargoes to get a higher netback going to Asian than Europe.
Imported LNG helps Pakistan save up to $3bn in fuel costs
Running the new efficient power stations on LNG helps Pakistan save between $2 billion and $3 billion in fuel costs. Pakistan LNG sources cost-competitive spot LNG cargoes for the three new combined-cycle plants – the Balloki, Haveli Bahadur Shah and Bhikki CCGTs.
