Developers of LNG-to-Power projects are advised to secure flexible gas delivery terms through an aggregator before the market flips again and demand outstrips supply. According to Watson Farley & Williams, this is likely to happen by 2022 or 2023 as current Capex cuts delay new liquefaction projects.
China National Offshore Oil Corp. (CNOOC) has raised its year-to-date domestic gas production to 311.3 billion cubic feet (bcf), up from 250.6 bcf, in a first step towards making gas account for half of CNOOC’s total output by 2035. Two sizable fields, Lingshui 17-2 and Bozhong are due to come onstream.
EDF Trading (EDFT) has started transacting Japanese power on the EEX platform, drawn by the market’s rising liquidity and its partnership with JERA in LNG trading. “We will be trading Japanese Power out of London for the time being,” said EDF Trading’s chief commercial officer, Philipp Büssenschütt.