Friday, April 5, 2019
Energy, Petrochemicals and Plastics 11
Greetings from Toronto.
1 The World’s Cheapest Natural Gas
https://oilprice.com/Energy/Gas-Prices/The-Worlds-Cheapest-Natural-Gas.html
Natural gas prices fell into record negative territory in the Permian basin, dragged down by booming oil production and a limited ability to move gas out of the region.
2 Tokyo Gas, Shell sign LNG deal linked to coal pricing in rare move
https://www.reuters.com/article/us-lng-tokyo-gas-shell-idUSKCN1RH0UB
Japan’s Tokyo Gas said on Friday it has signed a deal with Royal Dutch Shell for the long-term supply of liquefied natural gas (LNG), partly using a coal-linked pricing formula in an unusual move for an Asian LNG buyer.
3 U.S. LNG to China will increase despite trade tension: Cheniere
https://www.reuters.com/article/us-shanghai-lng-conference-cheniere-idUSKCN1RG100
Shipments of liquefied natural gas (LNG) from the United States to China will increase over the long term despite ongoing trade tensions, senior executives of Cheniere Energy, the biggest U.S. exporter of the super-chilled fuel, told Reuters.
4 Can the Mexican Government’s Bailout Solve the Pemex Crisis?
https://www.rigzone.com/news/can_the_mexican_governments_bailout_solve_the_pemex_crisis-02-apr-2019-158501-article/
In response to Fitch Group’s & Moody’s downgrade of Pemex’s credit rating to one notch above junk, Mexico’s government recently pledged a $3.9-billion capital injection and $200 million in tax relief, according to international media reports. This bailout package and the six-year business plan aims to help reverse Pemex’s credit downgrade, help control its USD $106 billion debt, boost cash flow, and increase crude production.
5 Mexico’s reliance on US gas pushes politicians to consider fracking
https://blogs.platts.com/2019/04/03/mexico-us-gas-fracking/
So what is all the fuss about? Saying no to fracking will mean leaving more than half of Mexico’s total natural gas reserves in the ground. This could be risky for Mexico, since the country’s natural gas production has fallen dramatically in recent years, descending to 2.6-2.7 Bcf/d in 2018 from a historical high of 5.1 Bcf/d in 2010, according to S&P Global Platts Analytics.
6 Pemex Is Too Big to Fail and Investors Are Finally Catching On
https://www.bloomberg.com/news/articles/2019-04-02/pemex-is-too-big-to-fail-and-investors-are-finally-catching-on
True believers in Petroleos Mexicanos are fueling a rally in its bonds, reckoning that government support for the beleaguered state-owned company will ultimately provide a backstop from any troubles.
7 PureCycle partners with Milliken, Nestlé to accelerate plastics recycling
https://www.plasticstoday.com/sustainability/purecycle-partners-milliken-nestl-accelerate-plastics-recycling/126068609060578
PureCycle Technologies has partnered with plastic additives manufacturer Milliken & Company, and food and beverage giant Nestlé S.A., as it moves forward with plans to open its first plant to restore post-consumer polypropylene (PP) plastic to ‘virgin-like’ quality with a revolutionary recycling method.
8 The Permian Basin Is Now The World’s Top Oil Producer
https://www.forbes.com/sites/rrapier/2019/04/05/the-permian-basin-is-now-the-worlds-top-oil-producer/
Last week Saudi Aramco — the national oil company of Saudi Arabia and the world’s largest oil company — lifted a veil of secrecy around the company’s operations. For the first time in decades, operational details for Saudi Aramco were revealed in a bond offering.
9 Aramco Reveals Steep Output Dip at Super-Giant Oil Field
https://www.rigzone.com/news/wire/aramco_reveals_steep_output_dip_at_supergiant_oil_field-03-apr-2019-158513-article/
Now the market finally knows: Ghawar in Saudi Arabia, the world’s largest conventional oil field, can produce a lot less than almost anyone believed.
10 The Canadian Natural Gas Industry Really Needs LNG
https://www.forbes.com/sites/judeclemente/2019/04/05/the-canadian-natural-gas-industry-really-needs-lng/
This is a bit surprising since Canada enjoys many of the same advantages that the U.S. shale revolution does (U.S. gas output has risen 55% since 2008). Among other benefits, Canada has: 1) a huge shale gas resource, 2) leading oil/gas companies and experts, and 3) free market competition that helps ensure that “the best teams win.”
11 Value of U.S. oil deals plunges 93 percent in first quarter as investors demand higher returns
https://www.reuters.com/article/us-usa-shale-m-a-idUSKCN1RG2H3
The value of U.S. oil and gas mergers and acquisitions fell to a 10-year low in the first quarter, according to data released on Thursday, as investors pushed shale producers that have driven a recent merger boom to focus on lifting shareholder returns rather than production.
