A roundup of news and commentary from NGI’s LNG Insight

  • Woodside Petroleum Ltd. to cut 2020 capital expenditures by 50% given "uncertain global investment environment arising from the spread of Covid-19, combined with oversupply of crude oil and LNG." Company to delay final investment decisions for the Scarborough and Browse gas fields, along with an expansion of its Pluto LNG facility.

 

  • PetroChina Co. Ltd. will "actively engage in price renegotiations" to better control costs of its natural gas imports, said Vice President Lin Xiao during year-end earnings event. Company is one of China’s largest gas importers.

 

  • Asian spot prices fell by double-digits this week to finish Friday well below $3.00/MMBtu. Region is awash in cargoes, especially as opportunistic buying from India has halted on coronavirus impacts. 

 

  • Gas prices also nosedived in Europe, where the Dutch Title Transfer Facility has flirted with record lows all week. New floor came Friday at $2.354/MMBtu as the outlook weakens on measures aimed at stopping the virus’ spread.

 

  • IHS Markit: Europe will start summer “with record conventional storage levels and an expected drop in demand. Short-term demand is expected to decrease substantially in the coming weeks as the continent takes the hit from the consequences of the coronavirus disease.”