Wednesday, 04 December 2019

Natural Gas Price: $2.442

International News

1. Iraq: The Next Great Threat To Global Oil Markets

 In Iran, if protestors demand is not met, they’ll target oil facilities – the only thing that
will force any major change, and indeed, the root cause of protests that have gone
beyond anything Iraq has ever seen.
 It is a possible scenario that should be on every oil trader’s radar, and has the potential
to move oil prices more than President Trump, and more than OPEC—if markets
interpret it correctly
 On the surface, it’s about a lack of basic services in an oil-rich country that can’t provide
regular electricity or drinking water to its people.
 Below the surface, it’s about massive corruption and a broken system that has led to
mass unemployment among the youth and a shattered education and healthcare system.
 What’s at stake if protesters take on Basra? Five million barrels per day of oil, 12% of
the world’s proven oil reserves, and a ton of investment money—foreign investment
money.
 China is the biggest buyer of Iraqi crude oil, and one of the biggest investors in the
Iraqi oil and gas industry. PetroChina and China National Petroleum Corporation
(CNPC) have massive investments here, including PetroChina’s 25% stake in the
giant West Qurna 1 project, which is majority-owned by Exxon. CNPC also produces
some 2 million bpd from its Rumaila and Halfaya oilfields in southern Iraq.
 And the market, in the meantime, has their eye on a different ball, and is preoccupied
with President Trump’s proclamations of the stalling trade deal (sending oil prices
down) and OPEC’s proclamations of deeper or longer production cuts (sending oil
prices up).
Source: https://oilprice.com/Geopolitics/Middle-East/Iraq-The-Next-Great-Threat-
To-Global-Oil-Markets.html

2. While Canada hesitates, Russia builds 3,000 km gas pipeline to China in

just five years

 Russian President Vladimir Putin and Chinese President Xi Jinping brought the Power
of Siberia pipeline, which will stretch 3,000 km from Siberia into northeast China,
online Monday. The US$55 billion pipeline is expected to carry five billion cubic
metres of natural gas into China in 2020, with production eventually ramping up and
hitting 38 billion cubic metres by 2025.
 The partnership between the two nations came in response to the sanctions levied on
Russia following its annexation of Crimea. Brutalized by the financial sanctions in
particular, Russia desperately needed to bring new capital into the country and China

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appeared to be an eager partner to supply it. The pipeline is expected to yield Russia
US$400 billion over 30 years.
Source: https://business.financialpost.com/commodities/while-canada-hesitates-russia-
builds-3000-km-gas-pipeline-to-china-in-just-five-years

3. Hungary Ready to Discuss New Gas Supply Deal with Gazprom —

Minister

 Hungary is ready to start talks with Russia’s Gazprom about a new long-term gas supply
deal, Hungary’s Foreign Ministry said on Monday.
 Hungary imports most of its gas from Russia under a supply agreement due to expire
by 2020.
 Hungary, which has annual gas consumption of around 10 billion cubic meters, already
has its gas storage full for this winter.
 The central European country gets most of its gas via a pipeline that runs though
Ukraine.
Source: https://pgjonline.com/news/2019/12-dec/hungary-ready-to-discuss-new-gas-
supply-deal-with-gazprom-minister

National News

1. ONGC and Oil India to spend Rs 1.77 lakh crore on exploration and
production over 5 yrs

 India’s oil and gas Public Sector Undertakings (PSUs) cumulatively plan to spend Rs
93,639 crore in the current financial year (2019-2020), down 2.13 per cent as compared
to the year ago period
 Pradhan said the tentative targets fixed by his ministry indicate the country’s crude oil
production is expected to rise 14 per cent to 38.91 Million Tonne (MT) while natural
gas output is projected to rise 69 per cent to 55.68 Billion Cubic Meter by 2023-24
Source: https://energy.economictimes.indiatimes.com/news/oil-and-gas/ongc-and-oil-
india-to-spend-rs-1-77-lakh-crore-on-exploration-and-production-over-5-
yrs/72344497

2. Natural gas drives record CO2 emissions in 2019

 Global carbon emissions boosted by soaring natural gas use are set to hit record levels
in 2019 despite a decline in coal consumption and a string of countries declaring a
climate emergency
 In three peer-reviewed studies, authors attributed the rise to "robust growth" in natural
gas and oil, which offset significant falls in coal use in the United States and Europe

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 "Compared to coal, natural gas is a cleaner fossil fuel, but unabated natural gas use
merely cooks the planet more slowly than coal," said Glen Peters, research director at
the CICERO Center for International Climate Research
Source: https://www.outlookindia.com/newsscroll/natural-gas-drives-record-co2-
emissions-in-2019/1677138