Natural Gas Daily: June 8th, 2020
BP Cuts 10,000 Jobs to Shore up Reserves (Update)
UK major BP is to lose "close to 10,000" of its staff, mostly this year, CEO Bernard Looney said in a letter to staff, as part of its move to stem losses of millions of dollars each day. "The oil price has plunged well below the level we need to turn a profit," he said. "We are spending much, much more than we make."
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The Big Picture:
-
BP racked up $6bn of debt in the first quarter; and is selling assets – including reportedly a stake in its Oman tight gas project – and cutting costs to compensate.
The Opec+ alliance of oil producers agreed on June 6 to extend unprecedented cuts to output for an extra month, in order to reduce the supply overhang caused by the coronavirus (Covid-19) pandemic.
The Big Picture:
- Opec+ reached an agreement in mid-April to take 9.7mn b/d of oil supply offline in May and June, and ease the cut to 7.7mn b/d between July and December 2020.
-
In a research note, Edinburgh-based Wood Mackenzie said the cuts extension could result in Brent recovering to $45-50/b.
China's Jan-May Gas Imports Up 2%
China’s gas imports via pipeline and in the form of LNG during the first five months of the year were up 1.9% yr/yr, marking a significant slowdown in growth due to the Covid-19 pandemic's impact on demand.
The Big Picture:
- In contrast, Chinese gas imports surged 13.4% yr/yr in the first five months of 2019.
- It appears likely that Chinese gas demand will still be higher in 2020 than the 306.7bn m3 consumed in 2019, but with little consensus on how much higher.
Oz East Coast LNG Exports in May Down 2%
LNG exports from projects located on the Australian east coast stood at 1.71mn metric tons (mt), down 1.72% yr/yr, according to data published by Gladstone Ports Corporation on June 6.
The Big Picture:
- The east coast has three export projects: Australia Pacific LNG (APLNG), Shell’s Queensland Curtis LNG, and the Santos-led Gladstone LNG.
Gazprom Orders Arctic Platform
Russia's Gazprom has ordered an ice-resistant, stationary platform for the Kamennomysskoye-more field in the Gulf of Ob – one of a number of upcoming Arctic gas projects.
The Big Picture:
- Kamennomysskoye-more is estimated to hold 550bn m3 of gas, and is expected to be the first gas field on Russia's Arctic shelf to enter production.
- On June 3, Russia's biggest oil producer Rosneft requested that the Russian government auction off rights to three gas fields in the Arctic that it wants to tie together with its Vostok Oil megaproject.
Myanmar to Start 1st Gas-to-Power Plants Soon
Myanmar’s ministry of electricity and energy (MOEE) June 7 said the country’s first gas to power projects are expected to come online soon.
The Big Picture:
- Last week, Petronas said it has started delivering LNG to Myanmar. The delivery is part of a deal signed with CNTIC VPower earlier this year which will use the fuel for power generation.
