Natural Gas Daily: May 12th, 2020
Net profits at Saudi oil giant Saudi Aramco fell 25% year on year (yr/yr) in the first quarter, coming in at riyals 62.5bn ($16.7bn), as the oil price collapse in March took its toll.
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The Big Picture:
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Aramco has capped its capital expenditure in 2020 at $25-30bn, down from $32.8n in 2019 and $35.1bn in 2018.
US Haynesville Most at Risk from Low Prices: Rystad
The Haynesville shale gas basin in Louisiana and Texas is most at risk of seeing production declines if US Henry Hub prices remain range-bound between $1.80 and $1.90/mn Btu, Norwegian consultancy Rystad Energy said in a report.
The Big Picture:
- The Haynesville basin, Rystad said, is “arguably” the most important for LNG exports from the US because it is so close to existing and planned Gulf Coast export terminals.
- Production could fall by up to 20% – from about 12.5bn ft3/day – by 2023 if Henry Hub prices remain stalled below $2/mn Btu.
All Permits in Place for Poland's Baltic Pipe
Sweden's government approved the construction of the Baltic Pipe gas pipeline through the Swedish exclusive economic zone in the Baltic Sea, meaning the project has now secured all necessary permits, Polish grid operator Gaz-System said.
The Big Picture:
- Baltic Pipe is due on stream in October 2022 and will flow up to 10bn m3/yr of Norwegian gas to Poland, which is looking to end contractual gas supplies from Russia once its existing supply deal expires at the end of that year.
Rosneft Slashes Investments by 21%
Russia's Rosneft plans to cut its investments by 21% in 2020, compared with the level last year, in light of the oil price collapse and Opec+ cuts, its CEO Igor Sechin told Russian president Vladimir Putin in a meeting.
The Big Picture:
- Rosneft is the country's biggest oil producer.
- The company's head Igor Sechin has also asked the Russian government for more support.
Inpex Cuts Profit Guidance Amid Price Crunch
Japanese oil and gas firm Inpex has slashed its net profit forecast for 2020 by 93%, after seeing a slump in first-quarter earnings owing to low oil prices, it said.
The Big Picture:
- The company said it had lowered its projections based on the assumption that Brent oil will average $35.2/b in 2020, down from an earlier forecast of $60.
Osaka Gas Annual Profits Up 24%
Japanese utility Osaka Gas reported a 24.4% yr/yr jump in profits for the 12 months to March 31, thanks to an earnings bump at its gas business, which offset international upstream impairments.
The Big Picture:
- Gas business income increased 48.4% yr/yr thanks to the higher sales price of city gas, the company said.
