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Will Gas Be the Game-Changer for Oman’s Transition to a Brand New Era?

Posted in CEDIGAZ Insights on

The latest report from CEDIGAZ delves into Oman’s gas and LNG success story since the late 2010s. The sultanate’s gas revival since the start-up of the Khazzan tight gas and condensate field in late 2017, combined with renewed exploration momentum on the upstream front, has opened up new possibilities for its domestic gas market and its role as one of the longest-established LNG exporters in the Gulf region and in the world.

The report examines the opportunities and the risks linked to its gas and wider energy fundamentals, be it in terms of supply and demand, policy, upstream & LNG strategy and interplay with other fuels.

Increased domestic production, combined with improved gas demand management especially in its power sector, has allowed the country to change its supply and demand balance at home and revive its LNG business, while a few years ago, Oman had contemplated mothballing some its existing liquefaction capacity.

The global natural gas activity contracted in 2020 amid the COVID-19 crisis

Posted in First Estimates on

In the context of the COVID-19-driven economic crisis and an abnormally warm climate, global gas consumption fell 1.8% in 2020, the third decline ever recorded in the history of the global natural gas industry.  In the face of extreme volatility, driven by the evolving influence of the pandemic on energy demand throughout the year, as well as weather events and technical outages, natural gas demand, especially LNG demand, was resilient, contrary to other fossil fuels.

Quarterly report – Q1 2021 – International natural gas prices

Posted in International Gas Prices, Natural Gas Prices on
  • Low storage inventories, combined with robust winter demand in both Asia and Europe kept spot prices relatively high in the first quarter 2021.
  • In the first half of January, Asian and European spot prices spiked to all-time highs as extremely cold weather coincided with tight supply. The Northeast Asian spot price peaked at $30/MBtu by mid-January, opening the widest premiums on record.
  • European and Asian spot prices retreated in the second half of January as buying focus shifted to the March and April shoulder months. Moreover, temperatures had warmed and nuclear availability improved in Japan, while supplies were creeping up in Asia.