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    Home > Chemicals Industry > China Chemical > Oil and gas prices have fallen sharply due to the epidemic this year or no new LNG project FID

    Oil and gas prices have fallen sharply due to the epidemic this year or no new LNG project FID

    • Last Update: 2022-06-23
    • Source: Internet
    • Author: User
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      According to sources from the natural gas processing website, banks and industrialists said that after the epidemic has reduced energy demand and prices have fallen to historical lows, for the first time in at least 20 years this year, no new LNG export projects will be approved.

      In stark contrast to last year's record level of LNG production approvals, the sharp drop in oil and gas prices in 2020 forced companies to postpone decisions on new projects and write down investments in existing plants.

      Consulting firm Wood Mackenzie told Reuters that it was in 1998 that the new LNG export plant was not approved before, and the International Energy Agency (IEA) estimated that it was at least 20 years ago.

      Five investment bank and energy analysts said they did not expect to make a final investment decision (FID) this year, while four other sources said they expected one or two at most.

      Before the coronavirus pandemic, new exports approved in 2020 are expected to be similar to last year's record of over 70 million tons per year.

      Morgan Stanley’s commodity strategist for natural gas and electricity, Devin McDermott, said: “We don’t expect any major final investment decisions for LNG export projects this year.

      “As the coronavirus reduces oil demand and oil prices.
    , The major oil companies’ capital expenditures fell, which suppressed their investment and delayed the final investment decision.

      McKinsey & Company partners Giovanni Bruni and Alessandro Agosta said due to capital expenditure cuts.
    And delays, coupled with the difficulty in obtaining buyers, they expect all final investment decisions to be postponed by 1 to 2 years.

    Transfer from: Sinopec News Network

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