World Gas Intelligence articles from April 2008

World Gas Intelligence archives from April 2008

Japan's painful renewals.
April 2, 2008... The renewal that Japanese utilities agreed to this week with Indonesia on term LNG contracts that were set to expire in 2010-11 may be just a taste of bitter things to come, including a sharp rise in--if not the disappearance of--the S-curves...

LNG tanker market: glum and glummer.
April 2, 2008... Faced with a growing imbalance between ever-expanding numbers of tankers and lagging liquefaction schemes worldwide, the LNG shipping business is in the dumps--and likely to stay there for at least two more years and potentially through 2011....

Gazprom talks big LNG--now the walk.
April 2, 2008... Russian officials grabbed headlines this week with a dramatic announcement that the world's largest gas reserve holder and pipeline gas supplier also wants to provide a full quarter of the world's LNG by 2030, or around 90 million tons per...

E.On now in South Europe. What next?
April 2, 2008... E.On's expansion into southern Europe was sorted out last week, giving the German-based utility both substantial generation and LNG receiving capacity in the region--but still no LNG (WGI Mar.12,p1). The focus on Europe's ongoing utility...

Independent US LNG terminal plot thickens.
April 2, 2008... Cheniere's recent decision to hang a "for sale" sign on its Sabine Pass LNG receiving terminal and possibly other assets underscores the uncertainty independent US LNG operators are facing--and may well continue to face through 2014 or beyond...

Iran struggles on with LNG plans.
April 2, 2008... As US-led sanctions push European majors to suspend integrated gas development and LNG schemes in Iran, the Iranians are targeting state companies from India, Russia and China to fill the breach. At the moment, India's state Oil and Natural...

Snohvit hits second snag.
April 2, 2008... Snohvit's sixth cargo, which left Melkoya in northern Norway Mar. 15 on Arctic Lady and arrived Mar. 23 at the Montoir import terminal in western France, may be the last Norwegian LNG shipment for quite a while. Norway's Snohvit...

Market insight: US edging on up.
April 2, 2008... US front-month gas futures prices have rallied 31% since Jan. 1, adding another 8.5% during the last week of March, even in the face of dwindling springtime demand, making the bidweek pricing process that determines much baseload gas pricing a...

China expanding its nuclear capacity--but not that fast.(CURRENT)
April 2, 2008... With China's electricity demand up 12.5% last year over 2006 and its economy growing at an annual clip of over 10%, Beijing has set ambitious targets of 40 gigawatts of nuclear capacity by 2020--up from 8.6 GW now--and quadruple that in 2030,...

Gas and power prices for major US and European hubs.(CURRENT)
April 2, 2008... US prices are the weighted average of assessments by Natural Gas Week for five trading days, spanning Mar. 25-31. European gas prices are WGI assessments on Mar. 31 for day-ahead delivery Apr. 1. European power prices are from exchanges on Mar....

Balancing US gas market looks tough without lots of LNG.(HORIZON)
April 2, 2008... North American gas markets typically move into a "shoulder-month slump" as winter ebbs. Withdrawals from storage come to a close, and utilities, pipelines and storage operators shift into maintenance mode in preparation for summer injections....

Nuclear power in Japan.
April 9, 2008... A string of nuclear-related accidents and data falsification scandals has rocked public confidence in Japan's nuclear power sector. But so far, at least, this is not stopping utilities from pursuing new reactors or the government from setting a...

Sonatrach eyes more US terminal space.
April 9, 2008... Chawki Rahal, vice president for commercialization at Algerian state Sonatrach, confirmed this week that the company still has big ambitions to control or own LNG receiving capacity in the US--at a time when supply shortages have pushed top US...

OMV gas chief questions EU strategy.
April 9, 2008... OMV Gas International Managing Director Werner Auli says that European Union efforts to make gas suppliers divest existing pipeline assets are unlikely to succeed (WGI Feb.6,p8). Firms such as OMV can't be expected to drive forward projects...

Israel developing LNG terminal plan.
April 9, 2008... Israeli government plans to build a 4 billion cubic meter (2.9 million ton) per year LNG receiving terminal by 2014, announced in late January, seem a long shot for numerous reasons, not least the current tightness of LNG worldwide. However,...

Momentum for Iraqi gas exports building.
April 9, 2008... Efforts to better utilize and potentially export Iraqi gas--both from the Akkas gas field near the Syrian border via the Arab Gas Pipeline, now flowing Egyptian gas, and from the Kurdistan region--look to be gaining momentum (WGI Feb.27,p5)....

Argentina, Uruguay look harder at LNG.
April 9, 2008... The urge for LNG is spreading rapidly in South America, where gas shortages have become endemic. Argentina recently signed two agreements, with Uruguay and Venezuela, for building separate receiving terminals to help smooth severe gas shortages...

Sinopec downgrade.
April 9, 2008... Chinese state Sinopec has downgraded reserves at the Puguang gas field in the south-central province of Sichuan following further technical appraisals. Production targets for the high-profile project--given a year ago as an initial 10 billion...

Spanish, French usage.
April 9, 2008... Spain's ravenous LNG appetite may be easing. In February, gas demand in the country surged by 31.3% from year-earlier levels, to 42.83 terawatt hours (4.06 billion cubic meters) from 32.629 TWh (3.09 Bcm) in February 2007. By March, however,...

Irish LNG consent.
April 9, 2008... Having secured a key consent from Ireland's Planning Board, Shannon LNG--wholly owned by Hess LNG, now majority-owned by Hess with US consultancy Poten as a partner--plans to start construction next year with a view to the terminal's start-up...

Market insight: sticky Asian prices.(INSIGHT)(Industry overview)
April 9, 2008... Asian traders are bemoaning prices still in the $14 or even $15 per million Btu range for spot LNG cargoes delivered in April--despite what they insist is lower purchasing in the face of high inventories. Much like their US counterparts,...

Wind power at the 100 GW milestone--and still running.(CURRENT)
April 9, 2008... The amount of installed wind power capacity worldwide passed the 100 gigawatt milestone in early 2008, following years of heavy investment that have seen thousands of turbines erected around the globe, both offshore and onshore. Last year set...

Gas and power prices for major US and Europeon hubs.(CURRENT)
April 9, 2008... US prices are the weighted average of assessments by Natural Gas Week for five trading days, spanning Apr. 1-7. European gas prices are WGI assessments on Apr. 7 for day-ahead delivery Apr. 8. European power prices are from exchanges on Apr. 7...

Unconventional US gas offsets lower Canadian, LNG imports.(HORIZON)
April 9, 2008... US gas supply and demand never seem to be in balance. Either the country has too much supply and not enough demand, as in the 1980s and much of the 1990s, or too much demand and not enough supply, as in the 1970s and for much of this decade....

Qatar in China.
April 16, 2008... The eastward drift in Qatar's short-term sales over the last couple of years turned into a significant long-term commitment with last Thursday's signing in Beijing by Qatargas and Royal Dutch Shell of a binding 25-year contract with PetroChina...

Spain still buying LNG as US terminals open.
April 16, 2008... In a week in which two US LNG terminals have received commissioning cargoes, it can't be good news for their operators that Spanish demand for LNG is likely to remain high this summer--despite easing drought conditions over the last few weeks...

South stream not looking so invincible.
April 16, 2008... Earlier this year, Russia's political machine stormed through Central and Eastern Europe, rolling out intergovernmental agreements with transit nations for the proposed South Stream pipeline through south-central Europe and surrounding the...

Producers push Alaska pipeline plan.
April 16, 2008... Last week's announcement that ConocoPhillips and BP are finally ready to build a $30 billion pipeline to ship Alaska North Slope gas to the continental US was widely hailed as a major breakthrough in a project that's languished on several...

Brazil eyes first LNG imports, then exports.
April 16, 2008... South America is running a tight race against the clock. With the Southern Hemisphere winter approaching and a major gas shortage looming, governments are seeking LNG as a quick solution--while also eyeing the potential for Brazilian gas to one...

India courts Exxon in active LNG search.
April 16, 2008... China may have stolen the LNG headlines last week with its Qatari deals, but India has been equally active in its quest for new supply--confirming that both of Asia's emerging economic powerhouses remain in the LNG camp despite recent price...

Shell-GDF LNG supply.
April 16, 2008... Royal Dutch Shell has long been short on European LNG receiving capacity. One compensation may be the unusual supply contract it signed with Gaz de France (GDF) last week to deliver an aggregate volume of 10 billion cubic meters (7.25 million...

Market insight: Europe up all over.(INSIGHT)
April 16, 2008... Surging oil prices have pulled Europe's long-term contract prices for gas into the $12 per million Btu range. While higher demand on the back of cold weather has also contributed to keeping spot prices on the boil, the oil market remains the...

Why wet, windy Maine may leave US power pool for Canada.(CURRENT)
April 16, 2008... Maine carved itself out of Massachusetts territory in 1820, and it is now considering moving itself out of the entire New England region's transmission grid--potentially setting a precedent for the nation's patchwork of regional transmission...

Gas and power prices for major US and European hubs.(CURRENT)
April 16, 2008... US prices are the weighted average of assessments by Natural Gas Week for five trading days, spanning Apr. 8-14. European gas prices are WGI assessments on Apr. 14 for day-ahead delivery Apr. 15. European power prices are from exchanges on Apr....

Personnel shortages, costs put brakes on LNG projects.(HORIZON)
April 16, 2008... It's no secret that the LNG sector faces a host of constraints: rising contracting costs, a shortage of skilled personnel and, in some cases, deeper and more difficult gas reserves. But how serious are these factors--and to what extent might...

Qatari Dubai deal--and more.
April 23, 2008... Earlier this month, Qatar courted Chinese LNG customers. This week, Doha proved it has profitable clients closer to home, too, as it advances in its apparent drive to line up more securely profitable long-term outlets than the US or UK for more...

Argentina set to get first LNG--for $14.
April 23, 2008... Argentina is likely as soon as next month to become the first Latin American country to import LNG. But Buenos Aires is paying dearly for the privilege, as it battles severe gas shortages and the prospect of rationing in the upcoming Southern...

Oman, Iran in unique gas buyback deal.
April 23, 2008... Oman has secured at least 1 billion cubic feet per day (10.4 billion cubic meters per year) of Iranian gas by signing up to develop the Kish gas field in southern Iran. It is undertaking to develop the field under a buyback deal in which it...

China fast-tracks five LNG terminals.
April 23, 2008... Anyone still clinging to the notion that China would never build the myriad LNG terminals proposed by its oil majors should think again. With new long-term LNG supply deals now concluded, Chinese firms are rushing to build terminals in...

Chevron weakening GTL ties to Sasol.
April 23, 2008... Is the Sasol Chevron natural gas-to-liquids (GTL) joint venture getting shaky? Although the two companies still claim their business relationship is solid, sources in Qatar and in the investment community say otherwise. What is known is...

Flex LNG orders ships, eyes Nigeria.
April 23, 2008... At least half a dozen shipping and technology firms are making serious noises about developing the world's first floating LNG (FLNG) facility (WGI Feb.6,p1). But one little-known firm remains confident of launching Nigeria, Africa and the...

Italian deals in Egypt, Qatar, Libya.
April 23, 2008... It's been an active month for Italian companies, with Eni firming up a strategic relationship with Russian state Gazprom and starting one with state Qatar Petroleum (QP), while also signing preliminary deals in Egypt alongside Italian utility...

Market insight: LNG pattern holding.(INSIGHT)
April 23, 2008... So far the pattern is holding. Atlantic Basin LNG is flowing to Asia at record-high rates, Spanish demand is high, and Northwest Europe and the US are getting very little. US LNG imports remain under 1 billion cubic foot per day (650,000 ton...

CCGTs cheaper to run in Spain than coal-fired plants.(CURRENT)
April 23, 2008... Power generators in Spain confirm what LNG traders were reporting last week: The surge in global coal prices over the last year has made gas-fired power cheaper than coal-based electricity in that market, even when generators pay recent high...

Gas and power prices for major US and European hubs.(CURRENT)
April 23, 2008... [ILLUSTRATION OMITTED] Caption: US prices are the weighted average of assessments by Natural Gas Week for five trading days, spanning Apr. 15-21. European gas prices are WGI assessments on Apr. 21 for day-ahead delivery Apr. 22. European...

Singapore's not-so-secret LNG hub trading ambitions.(HORIZON)
April 23, 2008... Singapore's choice of BG over Australia's Woodside and suppliers from Qatar to act as sole "aggregator" for its LNG did little to clarify the lingering question of whether the city-state wants LNG primarily in order to diversify its own gas...

Quick Iraqi LNG plan.
April 30, 2008... Royal Dutch Shell is laying out ambitious plans for Iraqi gas exports, starting with a modest 400 million cubic feet per day (4.1 billion cubic meters per year) over the next four to seven years, possibly rising to 2 billion cubic feet per day...

Dubious pipe progress by India, Pakistan.
April 30, 2008... With its nuclear pact with the US apparently stalled, India moved ahead over the last week on two of Asia's most talked-about gas pipelines: the Turkmenistan-Afghanistan-Pakistan-India (Tapi) line and the rival Iran-Pakistan-India (IPI) system...

US LNG still attracts Sonatrach, Total.
April 30, 2008... US LNG imports may be struggling to top 1 billion cubic feet per day (7.7 million tons per year) amid rising domestic gas production and persistently noncompetitive netbacks (p6), but not everyone has given up on the market as a destination for...

Mexico again debates service contracts.
April 30, 2008... Mexican President Felipe Calderon presented a modest energy reform proposal to the nation's congress Apr. 8 that would expand the use of oil and gas service contracts, but likely have a limited impact on long-term production. Among other...

Australia LNG firms fear Kyoto costs.
April 30, 2008... The Kyoto Protocol may finally be poised to become reality for the entire developed world, what with new Australian Labor Prime Minister Kevin Rudd racing to sign up and the next US president expected to do the same. However, the pace at which...

Balancing Nigeria's home, export markets.
April 30, 2008... Nigeria admits that efforts to distribute the benefits of its enormous oil wealth to its citizens have been an abysmal failure, resulting in civil disorder, worker walkouts and the loss as of last week of 1.7 million barrels per day of oil...

NW Europe ironies.
April 30, 2008... Warm weather and reduced demand might normally have seen UK gas prices ease this week from the roughly $12-$12.50 per million Btu seen since early April. That they instead edged higher is testament to the remarkable side effects of last...

Correction.(Correction notice)
April 30, 2008... In last week's issue of WGI, the article on the Sasol Chevron Oryx GTL plant in Qatar incorrectly attributed information regarding the facility's current production rate to a Sasol Chevron spokesman (WGI Apr.24,p4). The data actually came from...

Market insight: LNG market nuances.(INSIGHT)
April 30, 2008... The global LNG trading pattern has become more nuanced over just the last week (WGI Apr.23,p6). With the Henry Hub benchmark at around $11 per million Btu, LNG imports have finally topped the 1 billion cubic foot per day (650,000 ton per month)...

Outlook tough for nuclear in Alberta's deregulated market.(CURRENT)
April 30, 2008... While some might question the wisdom of building four new nuclear reactors in the gas-prone Canadian province of Alberta, few can doubt the drive of the man chiefly responsible for the plan, Bruce Power Chief Executive Duncan Hawthorne....

Gas and power prices for major US and European hubs.(CURRENT)
April 30, 2008... Caption: US prices are the weighted average of assessments by Natural Gas Week for five trading days, spanning Apr. 22-28. European gas prices are WGI assessments on Apr. 28 for day-ahead delivery Apr. 29. European power prices are from...

Banks' involvement in energy questioned amid credit crunch.(HORIZON)
April 30, 2008... With the US and--to a degree--European financial sectors engulfed in a crisis of confidence and an accompanying credit crunch, the role of banks and other financial institutions in energy markets and projects is being scrutinized with an...