A roundup of news and commentary from NGI’s LNG Insight
- Report: Boston Consulting Group says global coronavirus demand destruction and oil rout likely to create “lower-for-longer” price environment. Firm sees up to 6% of global LNG demand at risk in the near term, or 25 million metric tons/year, threatening future projects.
- By fall, “pretty significant cargo cancellations” are likely, said Poten & Partners’ Jason Feer, global head of business intelligence, of coronavirus impacts and other market headwinds.
- “We saw a few this spring, but there were places to put them and a lot of those cargoes were at least in the money on a cash basis or a variable cost basis...We think U.S. cargoes are likely to shoulder most of the cuts, but other producers are already talking about reducing supply,” he added.
- Australia-based producer Santos cuts 2020 budget on deteriorating macro environment, defers final investment decision on Barossa gas field. Barossa, located offshore Northern Australia, is slated to feed the Darwin LNG plant, where supplies are expected to be depleted from another field in 2022.
- Tanker operator Hoegh LNG “locks down” all vessels in response to Covid-19. No crew rotation or visitors allowed on board until further notice. Fleet remains fully operational.