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Asia Pacific news Regional update
The COVID-19 situation has taken a turn in comparison with the previous month where we noted that the situation in most countries Azman in Asia was showing Nasir improvements. Due to new outbreaks of the virus mostly due to imported cases, we are seeing a few countries re-introducing restrictions to curb its spread. In Vietnam for example, despite being one the earliest countries to lift lockdown restrictions, a second outbreak occurred in Da Nang which resulted in a number of deaths. Vietnam borders are closed again and gathering of people is not allowed for more than 30 at any one time. In Malaysia, compulsory quarantine at government-designated centres was re-instated for incoming travellers. For other countries such as India, Indonesia, Philippines, Pakistan and Bangladesh, the COVID-19 situation is still dangerous with the number of cases and deaths at worrying levels. For EIC APAC, the immediate impact is on the planned EIC Connect Indonesia 2020 which has now been postponed for the second time and is scheduled for October 2021. EIC Connect Vietnam which is scheduled for March 2021 will proceed as originally planned but is looking more likely to be a fully virtual event. We do not have a date yet for EIC Connect Malaysia which was scheduled originally for September 2020. In our latest series of live webinars our analysts successfully deliver presentations on the latest updates on progress of energy projects in the region. Regional analyst Farhana Borhanudin spoke on the list of projects which have been delayed and also covered the outlook for oil and gas projects. Nasheena Laing presented on renewables and indicated where the most interesting projects are and Hirzi Iskandar spoke on hydrogen and carbon capture and storage opportunities. A total of 90 participants listened to the webinar and the feedback we obtained afterwards indicated the information given was relevant and beneficial. Our next webinar will be on electrical project costs and safety with Panduit Singapore talking about their specific approach and solutions. Following that will be another webinar with Petrofac speaking on well integrity. We are seeing healthy interest in our new offering, EIC Inform which provides chargeable specific services for members to capitalise on EIC’s network and market intelligence in order to reach new or difficult markets. See page 24 for more information. Azman Nasir Head of Asia Pacific azman.nasir@the-eic.com Sign up for the EICOnline newsletter
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Regional news
Santos submits decommissioning plan for Bayu-Undan gas field
Santos is now preparing for the cessation of production at its Bayu-Undan gas field. The company has submitted its environment plan with Australia’s National Offshore Petroleum Safety & Environmental Management Authority (Nopsema) for the decommissioning of the pipeline from the field. Under the submitted plan, Santos includes the decommissioning of the pipeline between the BayuUndan platform and a tie-in point, designated KP380. It also includes the removal of the section of pipeline which lies in Timor-Leste waters. It is understood that the decommissioning activities are expected to take around 39-46 weeks to be completed.
Gas prices set to be at decade-low level in India
India is likely to cut domestic natural gas prices from October 2020 until March 2021 by more than 20% to what would be its lowest level in more than a decade. The price range of domestically produced natural gas is likely to be between US$1.9 to US$1.94 per MMBtu and this will be the third straight reduction in rates in one year. The new gas price will apply to production from existing onshore and shallow-water fields, but not to deep-water and other difficult gas fields that have not yet come on stream. Companies like Oil & Natural Gas Corporation (ONGC) and Oil India Limited (OIL), which are responsible for India’s gas output, are likely to be further impacted with the current reduction in gas prices in India. Vedanta Resources and other domestic companies are also likely to be impacted by the price cut.
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