Coronavirus: United Kingdom, facing worst recession on record, sees GDP drop 20.4% in Q2

The UK has seen its economy, hit by the coronavirus crisis, suffer a "record" contraction of 20.4% in the second quarter, and is officially facing its worst recession on record, agency figures show National Statistics (ONS), published Wednesday 12 August. 
Economists consider that a country enters a technical recession when it accumulates two consecutive quarters of contraction in its economy. According to the ONS, most of the contraction, which began to be felt in March, occurred in April, an entire month of containment and almost total cessation of activity in the country, which saw production collapsed by 20%.

With a very early recovery in construction sites and manufacturing activity, gross domestic product (GDP) rebounded in May by 2.4% (revised figure), followed by an acceleration in June (+8.7 %) thanks in particular to the reopening of all shops. This is the biggest contraction in the UK economy since the ONS began these quarterly statistics in 1955, he said…

Despite declining demand for LNG, most African producers still export as much as usual

With low global demand for LNG and too low prices, some African producers still produce as much, if not more, fuel for export. A paradoxical approach when we know that Egypt on the contrary chose to stop its shipments, because it is not profitable. According to data compiled by Global Platts, total LNG exports from Nigeria, Angola, Equatorial Guinea and Cameroon are broadly in line with volumes supplied during the same period last year, despite the drop in global demand. At the same time, a large exporter like Egypt stopped shipping to the international market, discouraged by the low fuel prices. These rose to $ 1.825 / MMBtu on the Asian market, while the break-even point for LNG in Egypt is $ 4.70 / MMBtu.
 
Despite declining demand for LNG, most African producers still export as much as usual

Meanwhile, Nigeria’s LNG exports in 2020 remained strong with some 11 billion cubic meters exported in the first five months of the year. This represents a decrease of only 4% compared to the same period last year. A record volume of LNG was even reported at sea last month and reflects the difficulties in finding a buyer for these cargoes. Local production is saturated in terms of storage capacity and the government plans to market the fuel internally.

Angola’s shipments have so far increased with a total of 2.7 billion m3 of gas equivalent exported in the first five months of the year. This represents an increase of almost 4% over the previous year.

In Equatorial Guinea, the EG LNG production facility exports as much LNG as it did last year. This depends on the Alba field of Marathon Oil, which however has declining production. However, the authorities are counting on the Alen field being exploited before the end of 2020 to support the production and export of LNG.

Cameroon exported more LNG than at the same time last year.




With the reduction in oil prices, all means are good to more or less replenish the public coffers. Exports under these conditions bring in little money, but these countries desperately need it and have to make do with it because of the context. In addition, it could also be a way to conquer new market shares.