Global Energy Market Shifts: A Review of 2020 Developments

Strategic Insights -

As the global energy landscape continues to shift, countries are reevaluating their energy strategies to ensure sustainable growth and meet increasing demands. This article delves into recent developments in the global energy market, highlighting key takeaways and statistics from various regions.

Key Takeaways:

  • Indonesia has revised its 2020 budget to forecast oil and gas revenues of 32 trillion rupiah ($3.8 billion) against an earlier forecast of Rp20.8 trillion, citing a higher average oil price of $28/bl.
  • Malaysia has imposed restrictions on retail gasoline sales to foreign-registered vehicles, allowing only 20 litres (5.2USG) of gasoline per vehicle.
  • India will allow domestic companies to trade crude and product imports, with a significantly higher oil import bill expected for the fiscal year 2020-21.
  • Japan's Ministry of International Trade and Industry has requested a ¥1.27 trillion ($12 billion) energy budget for the next fiscal year, a 4.7% rise on the current budget.
  • Japan's Tokyo Electric Power and Tohoku Electric will cut their joint liftings of Indonesian LNG by 72% from 2005, with plans to double their Australian LNG imports by 2004.
  • Kansai Electric, Japan's second-largest power utility, is creating a $100 million joint venture with Morgan Stanley Dean Witter to sell electricity in the US market.
  • China's Tianjin Petrochemical and partner Dow Chemical will proceed with plans to build a 600,000 t/yr naphtha cracker in Tianjin, despite a dispute between them.
  • Hyundai has won a loan from a group of Japanese banks and conglomerates for its planned $1 billion industrial complex in North Korea, with part of the funds to be used by Hyundai Oil to boost capacity at its 80,000 b/d Songbong refinery to around 200,000 b/d by 2005.
  • China's Sinopec will spend 2 billion yuan ($242 million) to boost refining capacity at its 240,000 b/d Zhenhai refinery to 320,000 b/d by 2005.
  • Sinopec Star Petroleum aims to boost its offshore proven gas reserves at Chunxiao, in the East China Sea, to 50 billion m^3 by the end of 2020.

Statistics:

  • Indonesia's oil and gas revenue forecast: 32 trillion rupiah ($3.8 billion)
  • Malaysia's subsidy bill: nearly doubled to Rp43.9 trillion
  • India's oil import bill for the fiscal year 2020-21: $17 billion
  • Japan's energy budget for the next fiscal year: ¥1.27 trillion ($12 billion)
  • Japan's planned increase in Australian LNG imports by 2004: 10 million t/yr
  • China's naphtha cracker project: 600,000 t/yr
  • Hyundai's industrial complex loan: $1 billion
  • Sinopec's refining capacity upgrade: 320,000 b/d by 2005
  • Sinopec Star Petroleum's offshore gas reserves target: 50 billion m^3 by the end of 2020

Sources:

  • WPA, "Indonesia Revises Budget to Boost Oil and Gas Revenues", August 28, 2020, p6
  • WPA, "Malaysia Limits Pump Sales to Foreign-Registered Vehicles", August 7, 2020, p15
  • WPA, "India to Allow Domestic Companies to Hedge Crude Imports", August 28, 2020, p6
  • WPA, "Japan Raises Energy Budget", July 3, 2020, p5
  • WPA, "Japan Rethinks LNG Imports", February 14, 2020, p10
  • WPA, "Japan Enters US Power Market", May 1, 2020, p14
  • WPA, "China Cracker Progress", August 28, 2020, p5
  • WPA, "Hyundai Gets Japanese Funds for North Korea Project", July 10, 2020, p7
  • WPA, "Sinopec Refinery Boost", January 17, 2020, p11
  • WPA, "Sinopec Star Exploration Push", August 28, 2020, p5