Crude oil prices plummeted over the weekend after Saudi Arabia decided to slash price and flood the market in a bid to recapture market share, opening a price war with Russia. Rock-bottom oil prices affect long-term oil-indexed gas contracts helping the latter outcompete coal as a fuel for power generation.
Despite the coronavirus outbreak, China’s natural gas demand and LNG offake has rebounded in February as the government is keen to reinvigorate industrial output as much and as quickly as possible. Chinese LNG offtakes in February were more than 21 percent higher year-on-year, compensating for the y/y reduction seen in January.
Cash-strapped McDermott International, a global EPC contractor, is moving forward with the previously agreed sale of Lummus Technology after having received no higher bids. Lummus will be sold for $2.725 billion to the Chatterjee Group and Rhône Capital, with proceeds used to repay McDermott's debtor-in-possession (DIP) financing.
Unfazed by the coronavirus impact, Xodus believes mid-term energy consumption will continue to rise and that natural gas will meet nearly half of the future demand growth while crude oil and coal use will plunge. For gas fill the gap, some $20 trillion would need to be spent on exploration and production over the next 20 years.
The first LNG cargo from the Magnolia LNG project in Louisiana, U.S., is scheduled to arrive in May, or early June, at the $4 billion LNG-to-Power project in Bac Lieu in southern Vietnam. Singapore-based Delta Offshore Energy in late January was handed an investment permit to develop a 3,200 MW combined-cycle power plant with adjacent regas terminal.