World Gas Intelligence articles from January 2006

World Gas Intelligence archives from January 2006

Gazprom's downstream fixation.
January 4, 2006... The tense standoff between Russia and Ukraine over 2006 gas sales and transit terms that briefly reduced Russian flows to Europe last weekend by as much as 30%-40% in some cases is about more than price. Predictably enough, Gazprom backed down...

Is Exxon suddenly serious about Natuna?
January 4, 2006... More than two decades after getting a license for the large Indonesian gas block, Exxon Mobil has suddenly come out with plans to develop the notoriously complex Natuna D-Alpha field and says it is in talks with prospective pipeline gas...

E.On buying Mol-gas, but terms tough.
January 4, 2006... Hungary's first-ever--and the EU's largest-ever--mandated resale of gas supply contracts is perhaps the most tangible condition exacted by the European Commission in its approval last month of German energy group E.On's takeover of the gas...

Flare up over Alaskan gas projects.
January 4, 2006... Tension over the slow progress of gas development in Alaska flared up late last month as a local government body filed an antitrust suit against Exxon Mobil and BP for alleged collusion to thwart production of the state's vast gas reserves....

Shell LNG operation in India in doubt.
January 4, 2006... Royal Dutch Shell is reported to have suspended operations at its $600 million Hazira LNG receiving terminal in India within a year of commencing business because it was unable to sell internationally priced imported LNG to Indian gas users,...

UK's arctic LNG pull.
January 4, 2006... ConocoPhillips is to seek planning consent to build an LNG import terminal at the Teesside oil terminal in northeast England. Its application is on behalf of the Norsea Pipeline group that owns the oil terminal, which includes Total, Statoil,...

GTL diesel drives.
January 4, 2006... Most ultra-clean diesel from Qatar's Oryx gas-to-liquids (GTL) project will go to Europe for blending with conventional diesel to produce a premium-grade fuel, starting in mid-2006, partners Sasol Chevron and state Qatar Petroleum (QP) say,...

Peru LNG to turn dirt.
January 4, 2006... Peru LNG plans to begin construction on its 4.45 million ton (6 billion cubic meter) per year LNG export terminal within roughly two weeks. Carlos del Solar, general manager of Peru LNG, told local radio station CPN that he expects construction...

Iran-Azeri gas swap.
January 4, 2006... Iran has inaugurated a swap with Azerbaijan involving the delivery of Azeri gas to Iran in exchange for Iranian gas supplies to the Azerbaijani enclave of Nakhichevan, which is surrounded by Armenia, except for its border with Iran. A Dec. 20...

Political storm hits Russia's Gazprom.
January 4, 2006... Not a person has gone cold nor a factory closed as a result of Gazprom's standoff with Ukraine over gas sales and transit terms, and it seems likely that Moscow planned from the beginning to blink before customers west of Ukraine felt any...

IPE gas futures.(Insight)
January 4, 2006... IPE GAS FUTURES Contract Dec. 30 * Week's Dec. 30 * Month p/therm High/Low $/MMBtu Feb. '06 81.80 82.99/79.50 14.09 Mar. 69.50 70.00/68.10 11.97 Apr. 57.25 ...

NYMEX gas futures.(Insight)
January 4, 2006... NYMEX GAS FUTURES Dec. 30 Contract ([dagger]) Week's Dec. 23 Month $/MMBtu High/Low $/MMBtu Feb. '06 11.225 11.90/10.88 12.402 Mar. 11.359 ...

Market insight: US unsettled.(Insight)
January 4, 2006... With much of the US enjoying above normal temperatures, gas demand was notably weaker in late December, and cash prices during bid week at the end of the month reflected that weakness. However, cash traders reported strong demand for gas that...

North American gas and comparative fuel prices.(Insight)
January 4, 2006... NORTH AMERICAN GAS AND COMPARATIVE FUEL PRICES ($/MMBtu) Pipeline Point/City Gate Jan. Bid-Week * Dec. '05 Henry Hub $11.35 $13.08...

Reform of Russian power sector, market delayed again.(Current)(Industry Overview)
January 4, 2006... The controversial restructuring of Russia's power sector has been delayed yet again, with the government deciding last month to push back the deadline for completion of the process until the end of 2008 rather than end-2006 as previously...

Conoco, Shell solidify plans to send Qatar LNG to US.(Horizon)
January 4, 2006... Late December saw both ConocoPhillips and Royal Dutch Shell conclude final contracts with state Qatar Petroleum (QP) for 30% stakes in projects dubbed Qatargas-3 and -4, respectively--confirming that, whatever Qatar's hesitance about...

Gazprom, Ukraine questions.
January 11, 2006... Widespread relief--not least among customers in Central Europe that saw their imports cut in early January--greeted the agreement between Russia and Ukraine that allowed for full resumption of Russian gas supplies to its neighbor at a price...

BP fails UK pledge, promises to improve.
January 11, 2006... BP has failed to abide by a pledge it made last month to Britain's energy regulator Ofgem to deliver two cargoes per month during December and January at the Grain LNG terminal near London. The regulator has the power to make cargo slots...

Greater Sunrise still low on LNG list.
January 11, 2006... Australia and East Timor look set this week to sign a formal agreement to settle a protracted sea-border dispute, paving the way for Perth-based operator Woodside Petroleum to start development of the massive Greater Sunrise reserves that...

North Europe eyes LNG--in limited way.
January 11, 2006... Europe's tenuous energy situation was brought into stark relief on New Year's Day when Russia's Gazprom temporarily halted gas flow to Ukraine as part of a disagreement over prices and transit terms, and Ukraine, in turn, reduced supplies...

Low KG gas price thwarts reliance.
January 11, 2006... India faces another potential setback in its quixotic attempt to hold out against the seemingly inexorable rise in global energy prices. This time the issue is not the price of imported LNG, but rather the value of domestic reserves (WGI Nov....

Dutch cap Groningen.
January 11, 2006... The Dutch government has capped output from the giant Groningen gas field at an average of 42.5 billion cubic meters per year (4.1 billion cubic feet per day) in the period 2006 15 in order to encourage output from smaller and less economic...

EU storage ideas.
January 11, 2006... Austria has used the start of its sixmonth presidency of EU ministerial meetings to give a push to an idea put forward informally by Europe's Energy Commissioner Andris Piebalgs that individual states should have gas stocks sufficient to cover...

First FSRU ordered.
January 11, 2006... Shipowner Golar LNG has awarded a contract to Singapore-based Keppel Shipyard for the first-ever conversion of an existing LNG carrier into an LNG floating storage and regasification unit (FSRU). The contract value is S$90 million (US$54...

Market insight: LNG wanted all round.(Insight)
January 11, 2006... The global LNG spot market remains tight, with Europe continuing to draw supply originally destined for the US, and Japan and South Korea threatening to pull cargoes from Europe. The main reason the US is losing out: US forward prices through...

US utility Calpine's Enron aspirations take it to bankruptcy.(Current)
January 11, 2006... When Enron collapsed into bankruptcy in late 2001 and subsequently into liquidation, most other companies that had drunk too much of the Enron-flavored punch worked hard to break their addictions to the discredited merchant-energy model. They...

What diverse new gas flows might get into Europe.(Horizon)
January 11, 2006... Last week's reduction in Russian gas flows to Europe via Ukraine focused policy-makers' minds on the nature of European gas supply, how it is changing and what options exist for making future flows more diverse and secure (p1). At present,...

Iranian sanctions threats.
January 18, 2006... International companies negotiating big gas development and LNG projects in Iran are casting an anxious eye on the diplomatic standoff over Iran's nuclear program, which could eventually lead to Iran's referral to the UN Security Council for...

Shipping weak link in spot LNG chain.
January 18, 2006... With large parts of Asia in the throes of their coldest winter in decades, Japanese utilities are seeking LNG spot cargoes with a vengeance, and are ready to outbid their European peers by a wide margin, despite doggedly high prices seen in the...

Gazprom eye on Moldova, Bulgaria.
January 18, 2006... Having resolved for the time being its gas conflict with Ukraine, Russia's Gazprom is pushing ahead with its campaign to hike gas prices for customers in other parts of the former Soviet Union and Central Europe, as well as to revise gas...

UK, Dutch offshore LNG, storage ideas.
January 18, 2006... Edinburgh-based Stag Energy Development is looking to build an offshore LNG receiving terminal in the Irish Sea that would use underground salt caverns for storage. The company is saying little about the venture, dubbed "Gateway LNG" according...

US firm tries China for coalbed methane.
January 18, 2006... Nothing makes a deal good as much as being in the right place, at the right time, with the right product. For Houston-based Far East Energy, the place is China, the time is now and the product is coalbed methane, says Michael McElwrath,...

Dutch try Algeria.
January 18, 2006... Dutch Economy Minister Laurens Jan Brinkhorst and Algerian Oil Minister Chakib Khelil signed a mutual declaration of intent to cooperate more closely in the energy field following a two-day visit by Brinkhorst to Algiers early this week. ...

Petrobras gas plans.
January 18, 2006... In case someone missed the message earlier, Brazil's state-controlled Petrobras made clear last week that gas is now high on its agenda. Petrobras plans to invest $18 billion over the next 10 years with its partners to develop gas and oil...

Turmoil in US, UK, even Italian markets.
January 18, 2006... The two big gas markets on either side of the Atlantic that are supposed to provide the model for gas-on-gas trading to come worldwide are both in a state of turmoil. Gas is now so "cheap" in the UK that shippers were injecting into the...

Market insight: Asian shivers.(INSIGHT)
January 18, 2006... Will the record low temperatures and record high snowfalls reported late last week in Japan, South Korea and other parts of Asia be followed by aggressive spot LNG purchasing drives by utilities from these countries, leaving supplies all the...

IPE gas futures.(INSIGHT)
January 18, 2006... IPE GAS FUTURES Contract Jan. 16 Week's Jan. 16 Month p/therm High/Low $/MMBtu Feb. '06 61.43 72.00/60.70 10.86 Mar. 57.90 ...

NYMEX gas futures.(INSIGHT)
January 18, 2006... NYMEX GAS FUTURES Contract Jan. 13 ([dagger]) Week's Jan. 9 Month $/MMBtu High/Low $/MMBtu Feb. '06 8.791 9.66/8.74 9.360 Mar. 8.932 ...

Asian LNG markets.(INSIGHT)
January 18, 2006... ASIAN LNG MARKETS Buyer Seller Prices in $/ton Nov '05 Oct. '05 Jan.-Nov. Nov '04 Japan Abu Dhabi 315.90 308.88 282.93 247.08 Alaska ...

European utilities look set to enjoy a bumper 2006.(CURRENT)
January 18, 2006... Most European utilities are likely to enjoy a bumper year in 2006 thanks to rising power prices, according to equity analysts at Dresdner Kleinwort Wasserstein (DrKW). In its outlook for the sector in 2006, DrKW says that utilities are...

Carbon trading comes of age in Europe, coming to US.(HORIZON)
January 18, 2006... A year after its launch, Europe's Emissions Trading System (ETS) can look back on a strong start and forward to another bumper year in 2006 (WGI Mar.16,p4). The mandatory cap-and-wade scheme, which covers 11,500 power generation and large...

2006: LNG breakout year?
January 25, 2006... Building on robust growth last year, 2006 could be a landmark for the global LNG industry, with four new trains due on line, adding a combined 16.2 million tons per year of nameplate capacity. If all trains operate smoothly, output could grow...

Mexico's Manzanillo terminal coming soon.
January 25, 2006... Mexico's state electricity utility, the Federal Electricity Commission (CFE), is moving ahead with its long discussed 1 billion cubic foot per day (7.5 million ton per year) Manzanillo LNG receiving terminal on the country's mainland Pacific...

Spain's 2005 growth highest in years.
January 25, 2006... Gas sales in Spain last year reached 32.3 billion cubic meters (376 terawatt hours per year or 3.12 billion cubic feet per day), up 17.6% from 2004 levels, industry association Sedigas reported last week--describing this as the highest growth...

Shell, Gujarat firm in "face-saving" deal.
January 25, 2006... There may be less than meets the eye to a letter of intent Royal Dutch Shell and French Total signed last week to supply 2 million tons per year of LNG starting in 2010 to India's Gujarat State Petroleum Corp. (GSPC) via the two Western...

Mysterious Georgia, Russia gas incident.
January 25, 2006... Mystery still surrounds the source and possible motives behind a series of explosions that Sunday hit Russia's Mozdok-Tbilisi trunk gas pipeline in the generally Moscow-friendly republic of North Ossetiya near the Georgian border. The explosion...

Turkish gas shortage.
January 25, 2006... The flow of Iranian gas to Turkey has dropped from about 25 million cubic meters (880 million cubic feet) per day to under 10 MMcm/d. Russian deliveries to Turkey through the Western pipeline have also dropped, albeit by a much smaller 4 MMcm-5...

Myanmar dead-end.
January 25, 2006... Plans to import Myanmar gas into India via an estimated $1.2 billion pipeline through Bangladesh have failed to progress due to political tensions between Bangladesh and India. As a result, partners in the Myanmar gas fields that were to feed...

E.On goes to court.
January 25, 2006... Germany's largest gas supplier E.On Ruhrgas went to court last Thursday, seeking to overturn a ruling by the Federal Cartel Office that severely limits the company's right to sign new long-term gas sales agreements with gas distributors. ...

Hungary anchors energy security talks.
January 25, 2006... In an indication that the effects of recent Russian supply reductions may not be as short-lived as Moscow doubtless hopes, Hungarian Economy Minister Janos Koka has invited his counterparts from five EU neighbors and nonmember Croatia to...

Market insight: wild times in Europe.(Insight)
January 25, 2006... The past week has been a wild one for Europe's gas markets, and calm is not yet in sight. As Russian cities froze at below minus 30[degrees] Celsius last week, prompting Gazprom's to reduce westward flows by 10%-20% in order to keep...

US States start jumping on coal-based IGCC bandwagon.(Current)
January 25, 2006... State governments in the US are now jumping on the advanced coal gasification bandwagon launched by Washington under the broad-ranging 2005 Energy Policy Act--suggesting this technology may leapfrog slower moving gas-to-liquids (GTL) programs...

'Real' GTL projects still advancing--just more quietly.(Horizon)
January 25, 2006... After a flurry of announcements earlier in the decade, the natural gas-to-liquids (GTL) sector has gone quiet over the past year, casting a pall particularly in light of Qatar's go-slow approach to a number of projects in this nascent industry...