Natural Gas Daily: May 28th, 2020
Oz Santos Closes Conoco Deal at Reduced Upfront Price
Santos has completed the acquisition of ConocoPhillips' northern Australia and Timor-Leste assets for a reduced purchase price of US$1.265bn plus an increased contingent payment of US$200mn subject to a final investment decision (FID) on Barossa, it said.
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The Big Picture:
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With the acquisition, Santos' interest in Bayu-Undan and Darwin LNG now increases to 68.4% at completion. Santos' interest in the Barossa project to backfill Darwin LNG increases to 62.5%.
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Santos has previously announced an agreement to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S for US$390 million and the signing of a letter of intent to sell a 12.5% interest in Barossa to Jera.
March LNG Beats Turkey's Pipeline Imports
Turkey imported more LNG than pipeline gas in March, the first month this has happened, as it took advantage of historically low spot prices. At 2.06bn m3 equivalent, it was more than twice last March's 950mn m³, the state energy regulator Emra reported.
The Big Picture:
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Qatar and US supplied 38% and 18% of the total LNG with the US more than tripling its volume year on year as more capacity has come on line.
Ukraine's government has signed a memorandum of cooperation on importing up to 5.5bn m3/yr of US LNG with a company called Louisiana Natural Gas Export, it said in a statement on May 27.
The Big Picture:
- Ukraine has in the past bought US LNG imported at Poland's Swinoujscie LNG terminal, which is undergoing an expansion that will raise its capacity by 50% to 7.5bn m3/yr.
Hoegh LNG Core Earnings Rise Despite Covid-19 Headwinds
Norwegian LNG vessel operator Hoegh LNG booked a net loss of $1mn in the first quarter, versus a $4.5mn profit a year earlier, it said. Core earnings (Ebitda) were higher, though, at $59.6mn versus $55.9mn a year earlier.
The Big Picture:
- Global LNG trade saw further expansion in the quarter, Hoegh LNG said, but it has lowered its forecasts for near-term demand growth.
Russia's Gazprom undertook pre-investment studies in April and May on the development of the offshore Arctic Shtokman field and the construction of an LNG terminal in Vladivostok – two projects it has been trying to advance for many years.
The Big Picture:
- Gazprom had intended to launch production at the 3.8 trillion-m3 field in the Barents Sea in 2015, after more than a decade of preparation, with assistance from France's Total and Norway's Equinor.
Nakilat Assumes Control of Al Kharaitiyat LNGC
Qatari shipowner Nakilat has assumed full ship management and operations of Q-Flex LNG carrier Al Kharaitiyat from Shell Trading and Shipping Company as part of the second phase of its planned fleet management transition programme, it said on May 27.
The Big Picture:
- Al Kharaitiyat is the second vessel that will come under the management of Nakilat this year as part of this second phase transition, bringing the total number of vessels managed by the company to 20.
