In Geopolitics Today: Friday, April 28th
Nigeria Partners with Norway’s Golar LNG to Build Floating LNG Plant, China Establishes New Diplomatic Delegation for Ukraine Crisis, and other stories.
Russia-Argentina Strategic Partnership on Hold
Russia and Argentina's once-extensive strategic partnership has been put on hold since the start of the war in Ukraine in February 2022. Prior to the conflict, Russia had been aiming to deepen ties with Argentina, but this goal is no longer a priority for either side. While Argentina has been ambiguous about its relations with Russia during the war, supporting UN resolutions condemning Russian military aggression against Ukraine, it opposes sanctions and advocates for peace. Meanwhile, Russia has been focused on maintaining its military and preserving stability at home.
Russia supports Argentina's claim to sovereignty over the Malvinas Islands (Falkland Islands), which remain in dispute with the United Kingdom. However, Russia's position may clash with Argentina's official discourse, which seeks to pressure the UK by using the global geopolitical context to review the status quo of the islands. Argentina terminated its participation in the Foradori-Duncan agreement signed with the United Kingdom in 2016, which it argued favoured the UK and was not aligned with the integration strategy of the islands within the national jurisdiction of Argentina.
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Nigeria Partners with Norway’s Golar LNG to Build Floating LNG Plant
Nigeria is looking to boost its domestic gas supplies and exports by partnering with Golar LNG, a Norwegian company, to build a floating liquefied natural gas plant in the country. As Africa's largest oil producer and a holder of some of the world's biggest gas reserves, Nigeria is seeking large investments in its gas industry.
In addition, Nigeria signed an MoU with Algeria and Niger Republic, and is constructing the Trans-Saharan Gas Pipeline, a natural gas pipeline spanning 614km (381.5 miles) from northern Nigeria into Niger and Algeria. While there is no official completion date, it will eventually connect to Europe. These partnerships and infrastructure projects will not only help Nigeria's domestic gas supplies, but also have the potential to benefit its European investors through exports and strengthened regional cooperation.
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Lockheed Martin Secures $4.8 Billion Contract for GMLRS Production
Défense contractor Lockheed Martin has been awarded a $4.8 billion contract to produce Guided Multiple Launch Rocket Systems (GMLRS), which are currently in use by the US Army and have also been deployed in Ukraine. To meet the urgent demand for these rockets, Lockheed Martin is working with the US Army to increase production capacity, and a multi-year deal is expected to be signed in 2024.
The development of new technologies and increased production is crucial to keep up with the constantly evolving geopolitical landscape and ensure that countries are prepared to defend themselves. By focusing not only on production but also on further developing the technology, Lockheed Martin is positioning itself to stay ahead of the curve in the defence industry and the deployment of GMLRS in Ukraine has already highlighted their effectiveness in combat.
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China Establishes New Diplomatic Delegation for Ukraine Crisis
China's recent communication with Ukraine and the announcement of a new delegation to help with the "Ukraine crisis" have been seen as positive steps by the Ukrainian government. The two countries' leaders spoke over the phone for the first time since Russia invaded Ukraine in February 2022, with Chinese President Xi Jinping assuring Ukraine of China's continued support, no matter the international situation. Despite this, it is unlikely that China's actions will lead to any significant changes in its approach towards Russia, and China's goals remain aligned with those of Russia.
China's actions in establishing the delegation and communication with Ukraine are seen as attempts to fashion itself as a credible mediator for the conflict and further divide the West on Ukraine, even as Beijing maintains its extensive economic support for Moscow. European leaders have been urging China to pressure Russia to end the war in Ukraine, and these recent developments are viewed as an effort to alleviate this pressure. China remains unlikely to take any action that could undermine its support for Russia and will focus on reaching a cease-fire that ensures Moscow meets its perceived security interests, including controlling parts of Ukraine's territory. The establishment of a new diplomatic delegation focused on resolving the ongoing war in Ukraine is viewed as a positive development by Ukraine, providing new instruments with which Kiev can attempt to steer China's position away from that of Russia.
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Venture Global Signs 20-Year LNG Deal with Japanese Company JERA
U.S. LNG exporter Venture Global has announced a 20-year deal to sell 1 million tons of liquefied natural gas annually to Japanese company JERA, from its upcoming CP2 LNG export facility in Louisiana. Venture Global's CP2 facility is expected to commence construction later this year, adjacent to the company's existing Calcasieu Pass LNG facility in Cameron Parish, Louisiana. The U.S. exporter has already announced sales and purchase agreements for more than a third of the 20 million tons per annum capacity at CP2 LNG, with ongoing discussions for the remaining capacity.
The CP2 LNG deal with JERA follows INPEX Corporation's 20-year deal with Venture Global for LNG purchases from CP2 LNG, signed at the end of last year. Other Asian customers, including China Gas Holdings, have also signed up for long-term LNG purchase agreements from Venture Global's export facilities. Developers of U.S. LNG export infrastructure have sought long-term agreements to show certainty in their customer base for development costs and borrowing funds. However, cost inflation and increased competition to secure long-term buyers and financing could hold back some of the proposed LNG export projects in the United States.