GAZPROM: STOP LNG
Gazprom has said it could shelve its Vladivostok liquefied natural gas project as the Russian state-controlled energy giant focuses on supplying more gas to China by pipeline.
The project, which had been scheduled to start production in 2018 with capacity of 10m tonnes a year of LNG, would be the first major Russian energy project to be publicly scrapped since the US and Europe targeted the country's energy industry with sanctions.
Analysts said the plant may appear less attractive given expectations of a glut of LNG as projects in Australia and Indonesia start production and US exports of shale gas ramp up.
"Gazprom is ready to consider the possibility of supplying pipeline gas to China as an alternative to the Vladivostok LNG project," Alexei Miller, Gazprom chief executive, said in a statement during a visit to Beijing. Much of the LNG produced at Vladivostok was likely to have been sold to China's regional rival Japan.
Western sanctions have so far not touched the Russian gas industry, with politicians fearing that Moscow could retaliate by cutting off European countries' gas supplies.
However, Gazprom's oil subsidiary, Gazprom Neft , is subject to US sanctions on the supply of equipment and technology for certain types of oil production as well as European financial sanctions. Like other Russian companies, Gazprom has been affected by the reluctance of western investors and banks to lend them money.
The Vladivostok LNG project is one of several LNG plants planned over the next five to 10 years that had been intended to make Russia a major player in the global LNG markets.
Gazprom said in 2012 that the plant would cost $7.3bn, as part of a much larger programme of gas development and pipeline building in the east of Russia that would cost about $50bn.
Another flagship Russian project, Yamal LNG, owned by Novatek , Total and CNPC, is attempting to raise financing in spite of US sanctions against its majority shareholder Novatek.
Gazprom is constructing the $30bn Power of Siberia pipeline after a landmark agreement on gas sales to China was signed in May. Mr Miller said the company hoped to sign additional deals to sell more gas to Beijing.
|September, 21, 11:00:00|
|September, 21, 10:55:00|
|September, 21, 10:45:00|
|September, 21, 10:40:00|
|September, 21, 10:35:00|
|September, 21, 10:30:00|
U.S. EIA - Energy companies’ free cash flow—the difference between cash from operations and capital expenditure—was $119 billion for the four quarters ending June 30, 2018, the largest four-quarter sum during 2013–18 Companies reduced debt for seven consecutive quarters, contributing to the lowest long-term debt-to-equity ratio since third-quarter 2014
OPEC - Total oil demand for 2018 is now estimated at 98.82 mb/d. In 2019, world oil demand growth is forecast to rise by 1.41 mb/d. Total world oil demand in 2019 is now projected to surpass 100 mb/d for the first time and reach 100.23 mb/d.
ARAB NEWS - Oil exports from southern Iraq are heading for a record high this month, two industry sources said, adding to signs that OPEC’s second-largest producer is following through on a deal to raise supply and local unrest is not affecting shipments.
PLATTS - The International Energy Agency expects the US to account for 75% of the global growth in natural gas exports over the next five years, a bullish outlook for LNG developers facing challenges at home getting projects off the ground and abroad with tariffs affecting trade flows.