Lebanese offshore oil and gas licensing round continues despite political crisis

In this Nov. 6, 2017 photo, vehicles moves on a street in Beirut, Lebanon. (AP)
Updated 11 November 2017
0

Lebanese offshore oil and gas licensing round continues despite political crisis

BEIRUT: Lebanon’s Energy Minister on Friday called on companies bidding in its first round of licensing to explore for oil and gas in its Mediterranean waters to begin technical discussions, suggesting the process would continue despite the political crisis.
Prime Minister Saad Hariri resigned in a speech from Saudi Arabia last Saturday and has yet to return to the country, sparking a political crisis.
President Aoun has said he will not accept Hariri’s resignation until he returns to the country, while the Lebanese authorities have said they consider the government to still be legitimate.
Energy and Water Minister Cesar Abi Khalil said on Twitter that he signed a document on Friday calling on companies who sub-mitted bids for the offshore license blocks “to negotiate the technical proposals.”
Lebanon sits on the Levant Basin in the eastern Mediterranean where a number of big subsea gas fields have been discovered since 2009, including the Leviathan and Tamar fields situated in Israeli waters near to the disputed marine border with Lebanon.
Lebanon re-launched the tendering competition for the exploration and production rights in January after a three-year delay due to political paralysis.
However, a consortium made up of France’s Total, Italy’s ENI and Russia’s Novatek, made the only offer in the tendering process which closed on Oct. 12, with bids for two of the blocks.
The Lebanese Petroleum Administration has said it will evaluate bids for the offshore blocks and present them to the energy minister by Nov. 13. Final approval will then be sought from Lebanon’s council of ministers.
— REUTERS


Australia overtakes Qatar as top global LNG exporter

Updated 10 December 2018
0

Australia overtakes Qatar as top global LNG exporter

  • Australia shipped 6.79 million tons of LNG in November while Qatar exported 6.2 million tons
  • Australia has invested heavily in a number of LNG export projects over the last few years

LONDON: Australia has become the largest exporter of liquefied natural gas (LNG) in the world, overtaking Qatar for the first time, according to data published on Monday.

Australia shipped 6.79 million tons of LNG in November while Qatar exported 6.2 million tons, according to Refinitiv Eikon, the financial data arm of Thomson Reuters.

While LNG exports from Australia increased by more than 15 percent from the previous month, Qatar’s exports dropped by 3 percent.

Australia has invested heavily in a number of LNG export projects over the last few years. Just last month, the first LNG shipment left the country’s new offshore Ichthys project on the northwestern coast of Australia.

Analysts expect Australia will look to maintain its lead ahead of the Qataris.

“Competition between Qatar and Australia for the share of global LNG market is set to intensify further,” said Abhishek Kumar, senior energy analyst at Interfax Energy’s global gas analytics in London.

“Australia has boosted its market share in recent years by bringing online a slew of LNG export projects. This is in stark contrast with the situation in Qatar where the export capacity has remained around 77 million tons per annum,” he said.

Ehsan Khoman, head of regional research and strategy at MUFG, in Dubai, said Australia has an advantage over Qatar due to it being geographically closer to major gas importers.

“The lower transportation freight costs will remain the backbone of Australia comparative advantage as an exporter vis-à-vis Qatar, given the country’s closer proximity to the largest LNG importers in Asia, namely, Japan, China and South Korea,” he said.

Rising LNG exports from US will add to the global market competition, he said.

“Going forward, the LG space is likely to undergo a major transformation driven by new supplies coming from the US, with our expectation of a three-way tug of war between the US, Australia and Qatar to intensify in the medium term for global leadership among LNG exporters, notably for a larger share of the key market in Asia.”

The data follows Qatar’s announcement last week that it would leave the Organization of Petroleum Exporting Countries (Opec) in early 2019 to focus on gas production.

Kumar said he expects Qatar to ramp up efforts to maintain its market position as competition grows from other exporters.

“Qatar has plans to vigorously defend its market share in the coming years as it is moving ahead with expanding the capacity of its Ras Laffan plant to around 110 million tons per annum by the end of 2025 or early 2026,” he said.