Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Sempra says coronavirus outbreak has not hit talks with LNG buyers

Energy infrastructure company Sempra Energy said the spread of coronavirus had not impacted talks with buyers of liquefied natural gas (LNG), easing some worries after the virus outbreak cut gas demand in China earlier this month.

Short-term sales of LNG into China, the world’s second largest importer of the fuel, almost ground to a halt earlier in February as the outbreak slowed economic activity and hurt demand, and buyers pondered legal action to avoid having to honor purchase agreements.

However, more recently, China appeared to be slowly recovering its appetite for natural gas, with LNG imports rising last week for the first time in five.

“In terms of conversations with counterparties ... we have a long-term view about supply and demand in the middle part of the decade and we’re really dealing with people ... that have a shared view of a potential infrastructure shortage,” Sempra Chief Executive Officer Jeffrey Martin said.

“The virus issue hasn’t really impacted our negotiations with the customers we’re talking to.”

Cheniere Energy Inc, the biggest U.S. LNG company, said earlier this week it was too early to gauge the potential impact of the outbreak on the near-term LNG market, but the lower short-term LNG demand in China was putting additional pressure on the market.

Even before the virus spread, global gas prices had been falling for months on mild winter weather in Europe and Asia, record stockpiles in Europe and slow economic growth because of the U.S.-China trade war.

Sempra, which develops, builds and invests in natural gas liquefaction facilities, said it expects to make final investment decisions this year to build two new LNG export plants, one in the United States and one in Mexico. (Reporting by Arathy S Nair in Bengaluru; Editing by Shounak Dasgupta)


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Business Trends: China pushes shale gas drilling amid corporate shakeups
-Adrienne Blume
In what appears to be a move to increase domestic energy production and self-reliance, as well as boost competition among foreign companies, China is reorganizing its state-owned energy firms and widening the invitation to shale gas drillers.
Editorial Comment: A brighter future for methane hydrates?
-Adrienne Blume
Methane hydrates are three-dimensional ice-lattice structures in which natural gas is trapped.
Executive Viewpoint: Innovative DCS targets biogas, LNG applications
-Jani Hautaluoma
New technologies, both process and digital, are revitalizing the hydrocarbon processing industry. Gas Processing & LNG talked with Jani Hautaluoma, Director of Process Automation for Valmet Automation, about the application of new production processes and digital advances for biogas and LNG production.


Best Practices in Supporting Front Line HPI Operations Remotely in Response to Covid-19

Register Now

To ensure employee safety, HPI companies had to quickly pivot to a remote support model with many subject matter experts (SMEs) and engineering staff working remotely supporting front line, sequestered critical operations and field operators.

What are the best practices and lessons learned from this new remote operational support model? What have been technologies and work processes that are enabling effective and efficient remote operational support? Is this the “new norm” going forward even when the impact of Covid-19 abates? If not, how will remote support of critical operations be changed?

If this topic and questions are of interest to you and your organization, please attend this special HPI webinar with a panel of leading industry customer experts who will discuss their perspectives. Attendees will have the opportunity to ask questions for the panelists.

May 18, 2020 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.