[ad_1]
The report by the General Secretariat of the Organization of Arab Petroleum Exporting Countries (OAPEC) showed that Arab countries’ natural gas exports reached 26.5 million tons in the third quarter of this year, an increase of 0, 7 million tonnes compared to the second quarter. , and a growth rate of 2.7%.
OAPEC said in its Periodic Report on Developments in the Global LNG Sector in the Third Quarter of 2020 that Arab countries collectively strengthened their market share in the global market during the period, reaching around 31.6%. , compared to 30.1% during the second quarter of the year period.
The report attributes this increase to the nature of contracts based on long-term contracts between domestic companies in Arab countries and their customers in the European and Asian markets, with Arab countries being the main long-term approved supplier for major consumers on the market. various markets. , and the most reliable of all exporting countries.
The report reviewed the most important developments and changes in the LNG industry during the third quarter, examining the market dynamics, the development of LNG supplies of Arab countries and the investment position in the countries. new projects, in light of the continued monitoring of the impact of the coronavirus pandemic on the global gas sector.
He explained that the recovery in gas prices is due to the recovery in demand in several major consumer markets, led by the United States, China, India and Europe, driven by the growth in demand in the electricity sector due to the warm weather conditions, and also reinforced by the recovery in prices by reducing the production of large LNG producers, in response to the repercussions of the pandemic on the rebalancing of supply and demand global.
He said gas prices rebounded in the third quarter of this year 2020, after the sharp drop they witnessed in the second quarter of the same year.
The price in the European market, according to the TTF Center in the Netherlands, rose to around $ 4 per million British thermal units in August from $ 2.5 per million British thermal units in July and in the spot market in North East Asia, the price rose in August to $ 5 per million British thermal units.
He added that the price of gas in America rose in August according to the (Henry Center) to $ 2.3 per million British thermal units, from $ 1.7 per million British thermal units last June.
The report says the world market was able to absorb the supply of liquefied natural gas in the first quarter of this year, with total exports amounting to around 96 million tonnes, 10.5% more than total exports. from the same quarter of last year, when it reached around 86.9 million tonnes.
He pointed out that the capacity of the world market to absorb excess global supplies began to decline in the second quarter, and then exports fell to 85.8 million tonnes, down by about 10.2 million tonnes per year. compared to the first quarter, a decrease of 10.6%.
He explained that the scene did not change during the third quarter, which was the date of the first decline on an annual basis, as total exports fell to 83.8 million tonnes from 88.8 million tonnes. tons, compared with the same period last year, an annual decline of 5.6%.
The report notes that the coronavirus pandemic has significantly affected the budgets of international oil and gas companies, with many companies announcing to reduce their investment and operating budgets for 2020 from what was planned.
The report said that “the global market is preparing for a new wave to make investment decisions in several giant export projects in 2020 after ending 2019 with a record number of final investment decisions in several new projects. However, volatility and uncertain market conditions over time to recover from the repercussions of the pandemic have hit new investments hard.
He added that in the first half of 2020, many developed companies have postponed the decision to invest in around 17 projects proposed to export LNG, with a total of 171.4 million tonnes per year until 2021 or later. , out of a total of 21 proposed projects, and in the remaining four projects, they did not. The final investment decision is only taken on a project in Mexico with a capacity of 2.5 million tonnes per year.
[ad_2]
Source link
