Powering life with Future Energy and Beyond slide image

Powering life with Future Energy and Beyond

Gas/LNG Petroleum 2022 Petroleum and Gas Outlook $/bbl 150 100 50 (GRM) 30 20 10 Dubai + Deepening crisis in Ukraine as the U.S., Canada, the U.K., Australia, and Switzerland have banned imports of Russian oil + Other outages such as Libya shutting its largest oil field amid anti-government protests + Recovered demand following the easing of lockdowns however market still concerned about uncertainties of economic growth Coordinated Strategic Petroleum Reserves Release from IEA member countries to help ease the supply shortage ptt - Increasing supply from OPEC+ (as planned), expect more supply from U.S. Shale oil, and Iran (if sanction lifted) Mogas + Asian mobility levels continue to improve amid the easing travel restrictions + Restocking demand for U.S. summer driving season in 3Q2022 - Rising supply due to increasing refinery runs after maintenance ended and new additional capacities in China Gasoil + Strong demand recovery in Asia & low global inventory levels + Supply concern over the Russia-Ukraine conflict Low seasonal demand during monsoon season in China and India during 3Q2022 Rising supply due to increasing refinery runs as mentioned Fuel Oil HSFO: + Rising seasonal power demand in the Middle East during 3Q2022 + Continued high NG prices will encourage the use of fuel oil in the power sector 0 0 1Q21 Dubai Price 2Q21 3Q21 4Q21 Mogas Gasoil Y2021 1Q22 HSFO 1Q2022 2Q22 ⚫VLSFO 3Q22 4Q22 -Singapore GRM 2Q2022(E) Dubai Mogas 69.2 95.6 102-107 2022(E) 98-103 80.3 113.3 123-128 116-121 Gasoil 76.0 115.1 132-137 HSFO (3.5%S) 64.4 87.2 106-111 VLSFO (0.5%S) 75.4 107.4 Singapore GRM 3.4 8.0 116-121 14.7-15.7 122-127 95-100 110-115 10.5-11.5 - Source: PTT, PRISM Petroleum Rolling as of April 2022 $/MMBTU 40 Asian Spot LNG 233222050 15 10 - Rising supply from OPEC+, higher refinery utilization rate and Iran (if sanction lifted) Henry Hub VLSFO: + Refiner tends to shift to produce more gasoil with better crack spread than VLSFO Rising supply from higher refinery utilization rate Singapore GRM + Improve following the strong gasoline and middle distillates crack spreads Gas/LNG Asian Spot LNG: + Geopolitical tensions between Russia and Ukraine + European imported more LNG in 2022 to substitute for gas imports from Russia + Russian LNG Supply projects delayed - COVID-19 outbreak and Lockdown in China 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Price Y2021 1Q2022 2Q2022(E) 2022(E) Asian Spot LNG 18.5 31.2 34.0 33.8 Henry Hub: + Low U.S. Storage Level Henry Hub (HH) 3.7 4.6 6.8 6.6 Source: EA (Apr. 22) - U.S. gas production expected to increase from gas support for accelerating investment 25
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