Follow us:
Subscribe to our newsletter

logo

  • News
  • Projects
  • Business and Finance
  • Innovation
  • Products and Services
  • Events
  • Online Magazine
  • Advertise
  • Contact
Home
  • News
  • Projects
  • Business and Finance
  • Innovation
  • Products and Services
  • Events
  • Online Magazine
  • Advertise
  • Contact
Quotes by TradingView

Diminished imports from top consumers dent APAC growth

14 Jan, 2021
34



The global lockdown to contain the coronavirus pandemic has led to low oil and gas demand and a decline in global energy prices. Against this backdrop, last year several companies in the Asia-Pacific (APAC) region realigned their capital spending, which lead to delays in some pipeline and liquefied natural gas (LNG) projects in the region, GlobalData has found. Additionally, reduced LNG imports from some of the key consumers such as Japan, China and India have further dented the growth of the midstream sector in the region.

Oil and Gas Analyst at GlobalData, Haseeb Ahmed, commented that the rising ambiguity around the current economic scenario is deterring prospective investors.

“One of the go-to strategies for several LNG operators has been downsizing the overall capital expenditure (capex) for 2020. For example, Woodside’s decision to cut the planned total capex in 2020 has led to a delay in final investment decisions (FIDs) on Pluto Train 2 LNG, Browse–North West Shelf pipeline and Scarborough–Pluto pipeline developments in Australia. Withdrawing the capex plans ensured that these companies had sufficient working capital, but it might dent their profitability in the long run,” Mr Ahmed said.

Capital spend* guidance of select Midstream operators, 2020.  Image source: GlobalData Oil and Gas Intelligence Center.

Major pipeline and LNG operators have reported that their year-on-year financial performances have been hit in 2020.

Consequently, midstream operators such as Royal Dutch Shell Plc, Total SE and BP Plc have reduced their capex by more than 20 per cent to ensure steady cash flows.

Mr Ahmed added that the oil and gas sector has undergone significant losses, pushing companies to take desperate measures such as reducing capex or delaying FIDs.

However, on the brighter side, he noted that the global LNG supply glut along with low LNG prices will encourage new countries such as Myanmar, Vietnam and Sri Lanka to speed up LNG importing infrastructure.

“These new entrants will possibly contribute to the future LNG industry growth in the APAC,” Mr Ahmed said.

Related Articles

Melbana’s Cuba operations reach significant milestone

Emerging markets likely to see more volatile LNG prices

Decarbonisation central to future of Asia Pacific’s upstream industry

Have your say on the gas-fired recovery plan

Comments

Leave a comment Cancel reply

You must be logged in to post a comment.

all news all projects

Latest Posts

  • Latest News
  • Latest Projects
26 Feb

IMO, WISTA International launch first Women in Maritime Survey

26 Feb

2020 LNG demand holds steady despite COVID-19

26 Feb

IMO carbon intensity target can be achieved with adoption of amendments

25 Feb

Geelong home for new Victorian ports body

24 Feb

APPEA releases platform ahead of WA State Election

25 Feb

Sweet gas discovery spurs new potential in Baram Province

24 Feb

Neptune Energy announces start-up of Gjøa P1 development

24 Feb

Equinor and partners prepare for shutdown of the Veslefrikk field

23 Feb

CNOOC Limited announces large discovery in Bohai Bay

21 Feb

Methanol factory at Tjeldbergodden restarts production

Online Magazine

    Current Cover
  • Login
  • Subscribe

Subscribe

Subscribe to our newsletter or print magazine

Our Titles

  • Home
  • Contact Us
  • Terms and Conditions
  • Privacy
© Sage Media Group 2021 All Rights Reserved.
×
Authorization
  • Registration
 This feature has been disabled
 This feature has been disabled until further notice, however you may still register
×
Registration
  • Autorization
Register
* All fields required