Natural Gas Daily: June 15th, 2020
BP to Book up to $17.5bn in Charges on Weaker Price Outlook
BP warned it will take up to $17.5bn in impairments and write-offs in the second quarter, after lowering its long-term price assumptions to take into account weaker demand for energy as a result of the Covid-19 crisis, and an accelerated transition towards lower carbon energy.
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The Big Picture:
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The UK major is due to report its second-quarter results on August 4 and the following month, CEO Bernard Looney plans to unveil a strategy to "reinvent" BP, reducing its focus on oil and gas in favour of a larger renewables portfolio.
India's 1st Gas Exchange Comes Online
Indian Energy Exchange (IEX) launched India's first online delivery-based gas trading platform. The Indian Gas Exchange (IGX) was virtually inaugurated by Indian petroleum and natural gas minister Dharmendra Pradhan.
The Big Picture:
- “We now endeavour to build gas markets in the country to support the government’s vision to increase the share of gas from 6% currently to 15% by 2030 in India’s energy mix," CEO of IEX & director IGX, Rajiv Srivastava said.
Oz LNG Exports in May Down on Month
Australian LNG exports in May were 6.4mn metric tons, down 7.2% month on month, and unchanged yr/yr, energy consultancy EnergyQuest said in its monthly report.
The Big Picture:
- Deliveries to China are, however, still holding up.
Gazprom Sinks 1st Well at New Yamal Field
Russia's Gazprom has began drilling its first production well at the Kharasaveyskoye gas field, its next major project on Russia's northern Yamal Peninsula, the company said on June 12. The well, which will reach a depth of 2,540 metres, is the first of 16 that Gazprom aims to complete this year.
The Big Picture:
- Gazprom estimates that its deposits on Yamal could one day flow up to 360bn m3/yr – equal to almost half of Russia's current output.
- As Gazprom's production base moves further north, it has been trying to expand the 55bn m³/yr Nord Stream pipeline.
Vietnam Plans Four Gas-Fired Power Plants
PetroVietnam Power Corp (PV Power), a subsidiary of state-run PetroVietnam, is planning to build four new gas-based power plants, the company said during the annual general meeting of shareholders on June 12.
The Big Picture:
- Vietnam is promoting gas-fired power as it moves away from coal and oil-based generation. Last week, the Vietnamese government said US major ExxonMobil is looking to invest in gas-to-power projects in the southeast Asian nation.
China's Gas Output in May Up 13%
China's natural gas production in May was 15.9bn m3, up 12.7% yr/yr, as per data published by the country’s statistics bureau.
The Big Picture:
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Slowing demand growth and increasing domestic output have dampened gas imports.
