Asian LNG spot prices hits 21-month low
News wire -- Savannah Energy Plc says it planned to pursue all its legal rights to contest Chad’s move to nationalise its upstream assets in the African country.
In December, Exxon Mobil closed the sale of its operations in Chad and Cameroon to Africa-focussed oil and gas producer Savannah in a $407 million deal, but the Chadian government challenged the agreement.
London-listed Savannah owns a 40% interest in the Doba Oil Project in Chad, comprising seven producing oilfields with combined output of 28,000 barrels per day (bpd).
The Chad government had warned in December that it would ask courts to block Savannah’s purchase of the assets from Exxon.
“The actions of the Republic of Chad are in direct breach of the Conventions to which SCI and the Republic of Chad are, amongst others, party,” Savannah said in a statement on Friday.
“The Conventions are subject to the jurisdiction of an ICC tribunal, seated in Paris and the Company intends to pursue all of its legal rights.”
Earlier last week, the Chadian government announced the nationalisation of all the assets and rights, including hydrocarbon permits and exploration and production authorisations, that belonged to a subsidiary of Exxon Mobil.
Exxon’s assets included a 40% stake in Chad’s Doba oil project, which comprises seven producing oilfields with combined output of 28,000 barrels per day, bpd.
It also included Exxon’s interest in the more than 1,000 kilometre (621
News wire -- Asian spot prices of liquefied natural gas, LNG, declined last week, falling to a 21month low, as weak demand in the northeast Asia region continues to pressure prices down.
The average LNG price for May delivery into northeast Asia was $13 per million British thermal units (mmBtu), down 50 cents, or 3.7%, from the previous week, industry sources estimated.
Prices have fallen 53% year-to-date mile) Chad/Cameroon pipeline from the landlocked nation to the Atlantic Gulf of Guinea coast through which its crude is exported. and around 81% from the August 2022 peak at $70.50/mmBtu.
“Demand from northeast Asian buyers still remains broadly weak, with few end-users needing to step into the spot market for additional prompt supply,” said Samuel Good, head of LNG pricing at commodity pricing agency Argus.
He added that traders, however, are looking at the potential for any thirdquarter demand that could emanate from China, where demand is expected to pick up on rising economic activity following the lifting of strict COVID lockdowns in December.
In Europe, gas prices rose on Friday due to firm demand and as industrial action protesting against pension system changes in France affected operations at nuclear plants and LNG terminals.
European gas prices had also been
supported by mildly colder weather and less wind.
The market has also continued to eye the potential for production issues across several Atlantic basin liquefaction terminals, added Argus’s Good, including at Freeport LNG in the United States and Angola LNG.
Angola’s only LNG project had recently cancelled tenders due to production issues at its plant, according to trading sources this week, while a company spokesperson said the plant is currently operating at reduced rates.
Meanwhile, the second biggest U.S. LNG export plant, Freeport, had cancelled up to four shipments of LNG due to restart snags after an eightmonth-long outage, trading sources told Reuters.