World Gas Intelligence articles from August 2006

World Gas Intelligence archives from August 2006

India's 2009 price hike.
August 2, 2006... India will pay Qatar's RasGas much higher prices for LNG from 2009 when new contract terms, quite different from what was announced earlier by Indian officials, kick in--linking the price of LNG to a basket of Japanese crudes, WGI has learned....

Abu Dhabi's upstream opening.
August 2, 2006... Abu Dhabi has launched the first phase of its planned upstream gas opening--asking 15 companies for expressions of interest in its gas development plan, and to apply for prequalification ahead of the official tendering of the sour gas...

Gorgon appeal begins.
August 2, 2006... Chevron has moved ahead with an appeal against an adverse environmental report for its mammoth Gorgon LNG project offshore Australia, with proceedings getting under way last week. The US major faces a wait of at least several months to see if...

Upstream troubles hit Trinidad Train 4.
August 2, 2006... All is not well at Atlantic LNG (ALNG) in Trinidad and Tobago. It is widely acknowledged that production at Train 4, which started up last December after a fraught six months of delay, is still only a shadow of nameplate 700 million cubic foot...

Total's LNG revisited.
August 2, 2006... The agreements that France's Total concluded on Jul. 6 to take a 16.7% stake in the 7.8 million ton per year Qatargas-2 venture, backed by partners QP and Exxon Mobil, and to buy 5.2 million tons/yr from the project do indeed, as expected,...

At Bontang, Total pushes, Chevron lags.
August 2, 2006... The potential long-term nature of gas feed problems at Indonesia's primary Bontang LNG export complex have been underscored recently, even as the oil majors contributing to Bontang angle for concession extensions (WGI Jun.14,p1). Chevron...

CNOOC close to Petronas deal.
August 2, 2006... State China National Offshore Oil Corp. (CNOOC) is expected to sign an LNG deal with Malaysian state Petronas to supply an upcoming terminal in Shanghai--the third import facility for the Chinese major. A CNOOC source last week denied a report...

E.On to appeal Spanish ruling.
August 2, 2006... Spanish energy regulator CNE on Friday issued a highly conditional approval of E.On's 29.1 [euro] billion ($37 billion) all-cash takeover bid for Endesa in February (WGI Feb.22,p1). The bid, however, is the subject of overlapping court cases...

Hess talks about Irish LNG.
August 2, 2006... US Hess is planning an LNG import terminal in western Ireland. Chief Executive John Hess said July 26 that the project, by Hess LNG, is still at an early stage but that a site has already been obtained: "It would be premature to put dates...

Go-ahead for Golden Pass.
August 2, 2006... Exxon Mobil and partners have given the official go-ahead for the 2 billion cubic feet per day (15.6 million ton per year) Golden Pass LNG receiving terminal to be located near Sabine Pass, Texas, outside of Port Arthur. Golden Pass LNG awarded...

Market insight: US stockdraw shocker.(Insight)
August 2, 2006... An unprecedented summer withdrawal from US storage ensured New York Mercantile Exchange (Nymex) August futures jumped above $7 per million BTU just as the contract was rolling off the board last Thursday. The 7 billion cubic foot (198...

Canada grapples with need for new generating capacity.(Current)
August 2, 2006... Canada will need an estimated 60,000 megawatts of new generating capacity by 2020 to meet expected growth in power demand to 730 terawatt hours, from about 530 TWh now, according to a recent report by the Canadian Electricity Association (CEA)....

Qatar's two supermajor GTL schemes could top $30-billion.(Horizon)
August 2, 2006... Project costs have escalated at Qatar's two giant planned Qatari gas-to-liquids (GTL) projects. Royal Dutch Shell last week gave the investment green light to Pearl GTL, but at a cost of between $12 billion-S18 billion, two to three times...

Western Canadian LNG aims.
August 9, 2006... The Kitimat LNG project in Canada's province of British Columbia is ahead in the race to build the first receiving terminal on the West Coast of North America above the Mexican border. Lacking only federal approval from Ottawa, expected later...

Ukraine, Gazprom still face tough talks.
August 9, 2006... With a Moscow-friendly coalition government led by Viktor Yanukovich in place, the Ukrainian parliament can finally take a belated vacation following five months of political turmoil. A deserved respite also comes to European consumers, who...

Singapore seeks security through LNG.
August 9, 2006... It may look conventional enough, but Singapore's proposal for a 3 million ton per year LNG terminal is a scheme with a difference. Launching the project this week--albeit without as yet having pinned down either developers or supply--the...

Lebanon gas hopes fade, Syria's brighten.
August 9, 2006... With the fuel shortage in Lebanon reaching crisis proportions under the Israeli blockade and bombing campaign, Syria in late July said it would supply Lebanon with fuel from its strategic reserve. There's some irony in Syria's rush to the...

Exmar eyes Iranian built LNG tankers.
August 9, 2006... If and when Iran enters the LNG supply business, deliveries will be by Iranian-built tankers, according to both Tehran and Belgian shipowner Exmar. Exmar signed a preliminary contract in June with Iran's Sadra shipyard for construction of...

Sakhalin squabbles.
August 9, 2006... The Royal Dutch Shell-led Sakhalin-2 project on the Pacific Shelf continues to have a hard time of it from the Russian state, and the Exxon Mobil-led Sakhalin-1 project may now be running into problems, as well. The Natural Resources...

Hong Kong, Macau LNG.
August 9, 2006... Like Singapore, both Hong Kong and Macau are progressing with plans to build LNG import terminals to provide fuel for power generation (p2). Hong Kong utility China Light and Power (CLP) plans soon to submit an environmental impact...

As Total joins, Brass LNG slips to 2011.
August 9, 2006... Total showed its willingness to increase exposure to Nigeria's volatile Niger Delta last week, taking a 17% stake that once was Chevron's in the region's $3 billion Brass LNG project. The French company is reportedly eyeing an Australian LNG...

Market insight: Korea's LNG rush.(Insight)
August 9, 2006... South Korean LNG demand surged in the first half of this year, as rising fuel oil prices led power generators to burn more gas. LNG imports--mostly from Qatar and Oman--soared by almost 30% to 16.64 million tons (4.45 billion cubic feet per day...

US gas price finds floor as generators choose gas over coal.(Current)
August 9, 2006... More than a heat wave may lie behind the late-July, early-August resurgence in US gas prices. When gas this spring fell into the $6 per million Btu range or lower, it suddenly started to look like an affordable option relative to coal for power...

Canada's gas boom hit by lower prices, higher costs.(Horizon)
August 9, 2006... Day by day, evidence is building that Canada's five-year natural gas boom is running out of steam. Basic economics are the main cause: Prices have fallen by about half since peaking in December, while drilling and service costs continue to...

Upstart aims at France.
August 16, 2006... France's LNG industry has long been dominated by state champion Gaz de France (GdF) and oil major Total. But France, like its less resistant neighbors, is slowly liberalizing its gas market to meet European Union standards, and the reforms...

Exxon's Tillerson talks about Qatar.
August 16, 2006... High oil prices, geopolitical problems on almost every continent and leaking pipelines on one of its largest North American properties aren't the only issues on the mind of Exxon Mobil Chairman and Chief Executive Rex Tillerson. He also is...

India ready for pricey long-term LNG.
August 16, 2006... Indian state purchasing consortium Petronet LNG is likely to confirm a new-found willingness within that country to pay more for long-term--as well as spot--LNG by signing a deal with Australia's Gorgon project as soon as next month that...

Petronet spot buying.
August 16, 2006... The global spot LNG market could get even tighter, and cargoes even more expensive, with India accelerating its recent spell of spot purchases in order to overcome a shortage of gas back home (p2). State Petronet LNG, which brought in two spot...

Russia, EU run into more gas problems.
August 16, 2006... Energy relations between Russia and the European Union sank to new lows after Gazprom signed a memorandum of understanding (MOU) last week to expand cooperation with Algeria's Sonatrach. The two state-controlled companies are both among the...

Shell's Asia gas boss upbeat on Gorgon.
August 16, 2006... Jon Chadwick, the new head of Asia-Pacific gas and power at Royal Dutch Shell, is very bullish on Australian LNG--including the troubled Gorgon project (p2). Addressing the British Chamber of Commerce in Singapore, Chadwick said that Australia...

Excelerate accelerates US, UK ports.
August 16, 2006... US Excelerate Energy is moving ahead full-throttle to get its proposed offshore LNG port for regasification vessels at Teesside in the UK up and running by crunch time this winter. Only two local permits are still needed to start construction,...

Market insight: Spain looking stretched.(Insight)
August 16, 2006... Potential winter supply shortages in the UK, Germany and Italy have been well analyzed (WGI Jun.28,p4). There's been less talk of possible glitches in Spain, where gas-fired generation continues to increase and gas storage remains inadequate....

Europe narrowly avoids power cuts, future threat remains.(Current)
August 16, 2006... A break in the recent heat wave and the start of the August holiday season, when many businesses close or reduce operations, has for now spared Europe the power blackouts that have afflicted some US end-users in recent weeks (WGI Jul.26,p7)....

QP calling downstream LNG tune for trading-shy Exxon.(Horizon)
August 16, 2006... Word earlier this month that Exxon Mobil, ConocoPhillips and state Qatar Petroleum (QP) are moving forward with the 2 billion cubic foot per day (15.6 million ton per year) Golden Pass terminal near Port Arthur, Texas, sets the stage for some...

NW shelf cloud over Pluto.
August 23, 2006... An "accelerated" shutdown of Australia's trouble-prone North West Shelf Train 4 comes at an awkward moment for operator Woodside, within a week of announcement that the Australian independent has approved front-end design funding for its...

Exxon, QP face US security review.
August 23, 2006... Is state Qatar Petroleum's (QP) 70% stake in the Golden Pass LNG import terminal, proposed for construction near Port Arthur, Texas, in danger of going the way of the Dubai Ports World deal? The answer seems to be "probably not," but it must...

Dubai promotes LNG storage hub.
August 23, 2006... A partnership of the Dubai government and LNG Impel, the marketing subsidiary of Calgary-based Galveston LNG, is aiming to build an estimated $1 billion facility capable of storing 800,000-1.3 million tons of LNG in a bid to make Dubai the "LNG...

Peru LNG surviving Camisea price review.
August 23, 2006... The cloud cast over prospects for the second, export phase of Peru's Camisea gas development, dubbed Peru LNG, looks to have lightened since the new administration of President Alan Garcia came to power, and could soon clear altogether. ...

Mexico imports LNG amid rising gas flows.
August 23, 2006... This month Mexico passed two important milestones: It welcomed its first ever LNG cargo, and state Pemex announced record gas production of 5.323 billion cubic feet per day. Together, these two events herald a sharp decline in expensive US gas...

Bigger reserves help Myanmar LNG option.
August 23, 2006... The possibility of exporting LNG from Myanmar has gained credence since a consortium led by South Korea's Daewoo sharply increased its reserve estimate for two blocks off the country's western coast (WGI Aug.9,p6). While the Myanmar government...

Gazprom sells first LNG to Japan.
August 23, 2006... Russia's Gazprom has this month moved its LNG practice trading into the Pacific Basin, first signing a trading agreement with Japan's largest LNG buyer, Tokyo Electric Power Co. (Tepco), and then following up with the purchase of a cargo from a...

LNG summer vacation.(MARKET INSIGHT)
August 23, 2006... Global LNG trade is stuck in an August calm, with Asian and European demand tapering off and the US holding true to its role as market of last resort, as gas prices sag amid mild weather. Activity remains low even in the face of lackluster...

Rival E.On, GN bids for Endesa embroiled in legal battles.(CURRENT)
August 23, 2006... Nearly a year has passed since Spain's Gas Natural (GN) launched a hostile bid for the country's largest generator Endesa. Yet shareholders are unlikely to get the chance to decide on this bid--or a rival one subsequently launched by Germany's...

Gazprom booed--and wooed--as it seeks global reach.(Horizon)
August 23, 2006... Earlier this month, some European consumers cried foul when Russian Gazprom and Algeria's Sonatrach--state companies that are the region's two largest gas suppliers--signed a memorandum of understanding (MOU) for cooperation on future projects....

Gazprom, E.On round two.
August 30, 2006... Major gas supply agreements signed by Russia's Gazprom and top German utility E.On in Moscow Tuesday undoubtedly go some way both to ensuring success for the North European Gas Pipeline (NEGP) Moscow wants to build under the Baltic direct to...

Equatorial Guinea train 2 progress.
August 30, 2006... Equatorial Guinea has taken a decisive step toward the regional gas hub status it has been seeking for the past couple years. The country's first liquefaction train--a 3.4 million ton per year (450 million cubic foot per day) facility owned by...

Indian transmission policy coming soon.
August 30, 2006... The Ministry of Petroleum in New Delhi plans to announce a policy next month that will set the agenda and offer detailed guidelines on setting up gas transmission and distribution systems in India, a top oil ministry official tells WGI. Chronic...

Suez LNG terminal in Chile progressing.
August 30, 2006... Chile's efforts to loosen its dependency on neighboring Argentina for gas imports are proceeding full speed ahead. French Suez and Chile's energy company Gasatacama look set to sign a memorandum of understanding next week for construction of an...

Turkey's pipe problems.
August 30, 2006... An official from Turkish state pipeline operator Botas tells WGI that the section of the Iran-Turkey gas pipeline damaged in an Aug. 19 blast was repaired within 48 hours and normal flows of gas restored at over 20 million cubic meters (700...

Turkmen, China axis.
August 30, 2006... Central Asia's biggest gas producer, Turkmenistan, claims to be pushing ahead with plans to build a gas pipeline to China, even though it has not provided assurance that it has adequate reserves to support such a pipeline and fulfill existing...

Gazprom in Bulgaria.
August 30, 2006... In pursuit of the Russian company's ambitious plan to become a global energy company, Gazprom's Overgas joint venture with local Bulgargas is aiming to buy into three power utilities being privatized in Bulgaria, a country that already serves...

Germans try Norway.
August 30, 2006... German gas importers are queuing up to become Norwegian upstream licensees, as a means of increasing their equity gas production. Leipzig-based Verbundnetz Gas (VNG) said last week that it had established a Norwegian subsidiary and would...

GdF bipolar on subject of Gazprom.
August 30, 2006... The conflicted state of relations between Gazprom and its long-standing West European customers was strikingly evident not only in its latest deal with Germany's E.On Ruhrgas (p1), but also in statements over the last week from Gaz de France...

Market insight: euro end-user prices calm.(Insight)
August 30, 2006... End-user gas prices continued to rise over the three months ending in July in most of the European countries surveyed for WGI by Energy Advice, albeit generally at a more modest clip than in earlier quarters (see European End-User Price...

German gas bears.(Insight)
August 30, 2006... Germany has sharply lowered its expectations for gas use out to 2030 in a redraft of an official energy forecast initially released last year. Most gas into Germany is priced against oil, and the revised study has raised its 2030 oil price...

Expensive gas drives China, India back to coal-fired power.(Current)
August 30, 2006... High international gas prices are pushing China and India away from gas-fired power in favor of coal and nuclear just as surely as they are US and European generators (p6). Coal is a favorite because of the abundance of domestic reserves in...

Majors cautious on US termimals with LNG in short supply.(Horizon)
August 30, 2006... Five years ago, more than two dozen proposed LNG receiving terminals dotted the map of the US Gulf Coast and Gulf of Mexico, an area offering generally favorable political and fiscal environments, access to deepwater ports, and scores of...

WGI supplement: European end-user prices.
August 30, 2006... WGI SUPPLEMENT: European End-User Prices (eurocents/kWh) Gas Prices: 100,000 cm/yr 1 Million cm/yr Typical High Law Typical High Low Belgium Jul. '06 3.20 ...