Natural Gas Daily: May 6th, 2020
Oz East Coast LNG Exports to China Drop 14% in April
LNG exports from projects located on the Australian east coast to China dropped 14% yr/yr in April owing to weak demand in Asia’s biggest economy. The exports to China were down for the third straight month.
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The Big Picture:
- China’s gas imports during the first three months of the year were up 1.8% yr/yr, marking a significant slowdown in growth, due to the Covid-19 pandemic's impact on demand.
- In contrast, Chinese gas imports surged 17.8% yr/yr in the first quarter of 2019.
Gazprom’s Flows to Europe Down in April
Gazprom’s flows in April 2020 were again down massively both compared with last year (-18.8%) and with last month (-3.2%). The coronavirus-impacted-demand will continue to restrain EU imports needs.
The Big Picture:
- The company is losing ground in a low-priced, overcrowded market.
Aker BP Cuts Dividends Despite Earnings Bump
Aker BP has cut its dividend payments by two thirds, it said as it announced its quarterly results, citing the Covid-19 crisis and the resulting collapse in oil prices.
The Big Picture:
- In terms of operational performance, Aker BP described the quarter as its best yet. The Norwegian producer was able to post a 24% year-on-year growth in core earnings, it said.
- Equinor and Lundin Energy have also announced steep cuts to dividends, in light of market conditions.
PGNiG Closes Norwegian Field Deals
Poland's PGNiG has closed the purchase of shares in the Gina Krog and Alve Nord fields off Norway, it said on May 5, bringing the total number of licences it has interests in on the country's shelf to 31.
The Big Picture:
- PGNiG is building up a base of gas reserves off Norway for its Baltic Pipe project, which will transport up to 10bn m3/yr of Norwegian gas to Poland via Denmark, starting in October 2020.
US CO2 Emissions Fall 2.8% in 2019
US energy-related CO2 emissions fell 2.8% in 2019 to 5.13bn mt, the country's Energy Information Administration (EIA) reported on May 5.
The Big Picture:
- Almost all of the latest reduction occurred in the electric power sector, which saw emissions drop 8.2%, even though electricity generation was down only 1.5%.
Norway's Equinor said it had divested its remaining 4.88% stake in Sweden's Lundin Energy for $336mn. It did not disclose the identity of the buyer.
The Big Picture:
- The company swung to a net loss in the fourth quarter, as lower prices more than offset production growth at Sverdrup.
- In response to the Covid-19 crisis, it has made steep cuts to spending, suspended its $5bn buyback scheme, raised $5bn in debt and lowered its dividend.
