World Gas Intelligence articles from June 2004

World Gas Intelligence archives from June 2004

Russian rush to LNG.
June 2, 2004... Russia's Gazprom is concerned that if it isn't in a position to deliver LNG to North America by 2010, it may miss out on a window of opportunity to land a large role for itself in an increasingly import-dependent US gas market. As a...

Asia's old LNG buyers set new conditions.
June 2, 2004... Asia's oldest and biggest LNG buyers are voicing concerns to their traditional regional suppliers, and two issues are emerging as key to getting existing contracts renewed. Japanese and South Korean LNG consumers want to have destination...

Exporters reject gas cartel--for now.
June 2, 2004... The idea of fixed official prices agreed to in advance by a group of LNG exporting countries does not appear to be meeting with the enthusiasm that Egyptian Energy Minister Sameh Fahmy had hoped for (WGI May 19,p1). In the past week, the...

Gasunie to build BBL, feeder pipeline.
June 2, 2004... Dutch Gasunie has finally taken a formal decision to build the 235 kilometer Balgzand-to-Bacton line (BBL) from the northwest Netherlands to eastern England, after receiving an important green light from the European Commission to operate the...

Ruhrgas eyes Russian gas independent.
June 2, 2004... Following German rival Wintershall's success last year in forming a precedent-setting upstream joint venture with Russian Gazprom, Ruhrgas is negotiating to get into Russian upstream gas through an alternative route--the acquisition of one of...

Indian energy reform on slippery slope.
June 2, 2004... A new government led by the Congress Party and backed by smaller left-wing parties is likely to apply the brakes to reform of India's booming energy sector. The only real question is how hard. International portfolio investors have already...

RasGas' Taiwan sale.
June 2, 2004... Qatar's RasGas is expected to approve a definitive contract to supply 3 million tons per year of LNG from its planned Train 5 to Taiwan's Chinese Petroleum Corp. (CPC) at a Jun. 7 board meeting. Last year's initial deal specified just 1.7...

UK alters gas probe.
June 2, 2004... Britain's energy regulator Ofgem said last week it had closed most of the seven lines of enquiry in the probe it launched six months ago into an 80% rise in UK wholesale gas prices last September and October. It is still pursuing two...

Market insight: more record US highs.(Insights)
June 2, 2004... Industrial end-users on the US Gulf Coast will be paying around $6.70 per million Btu for baseload gas through the next month, and those in the Northeast will be paying over $7, after record-high pricing during bid-week for June month-ahead...

IPE gas futures.(Insight)
June 2, 2004... IPE GAS FUTURES Contract May 28 * Week's May 28 * Month p/therm High/Low $/MMBtu Jul. '04 21.33 22.15/21.31 3.92 Aug. 22.60 23.50/22.40 4.15 Sep. 22.20 22.85/22.05 ...

NYMEX gas futures.(Insight)
June 2, 2004... NYMEX GAS FUTURES May 28 May 24 Contract ([dagger]) Week's ([dagger]) Month $/MMBtu High/Low $/MMBtu Jul. '04 6.442 6.81/6.40 6.767 Aug. ...

North American gas and comparative fuel prices.
June 2, 2004... NORTH AMERICAN GAS AND COMPARATIVE FUEL PRICES ($/MMBtu) June May Apr. May Pipeline Point/City Gate Bid-Week * '04...

Politics delay--but not derail--Franco-Italian alliance.(Current)
June 2, 2004... Reform of France's still monopolistic, state-dominated energy sector--and a related plan to create a strategic alliance between the Italian and French state electricity companies--is proving a bumpy ride. A May 20 deadline was missed for...

Setting a standard for extinguishing the gas flares.(Horizon)
June 2, 2004... Efforts to extinguish gas flares that still light up the night in many parts of the world began more than half a century ago in Texas. Much remains to be done before the last fire goes out, but the process of halting routine flaring or venting...

Chinese LNG accelerates.
June 9, 2004... Peter de Wit, head of Asia Gas and Power for Royal Dutch/Shell, suggests in an interview with WGI that forecasts for growth in Chinese gas consumption may well turn out to be too conservative, rather than overly ambitious, despite Beijing's...

Gazprom, Israel talk but will they act?
June 9, 2004... In a bid to expand its presence in the Middle East, Russia's Gazprom is again eyeing opportunities in Israel. Chief Executive Alexei Miller last week met with Israeli Prime Minister Ariel Sharon to discuss supplying gas to Israel and...

Small gain for Gazprom in Kovykta talks.
June 9, 2004... After years of maneuvering for position, Russia's Gazprom and TNK-BP are at least talking about the composition and ultimate control of the project to develop the giant Kovykta field in East Siberia for gas exports to China and South Korea, as...

Local support critical for LNG terminals.
June 9, 2004... Making friends with local stakeholders--environmental groups, business organizations, community government leaders and the like--may have more impact on the success or failure of a new LNG receiving facility than all the regulatory assistance...

CNG eyed for use in Atlantic off Canada.
June 9, 2004... The large but remote White Rose field offshore Atlantic Canada could become a testing ground for marine transportation systems that rely on compressed natural gas (CNG) rather than LNG technology. Husky Energy said last week that it has started...

Patience key to China coalbed methane.
June 9, 2004... Efforts to develop coalbed methane production in China have been under way for over a decade now, and while there have been a few modest successes, disappointments have been more common. Nevertheless, US energy consultant Scott Stevens is...

Norsk Hydro scores.
June 9, 2004... Russia's Gazprom last week invited Norsk Hydro to discuss equity participation in the giant Shtokman gas project. Gazprom chief Alexei Miller said that Norsk Hydro could be one of its most important partners in the development (WGI Jun.2,p1)....

Dong's Dutch sale.
June 9, 2004... Denmark's state oil firm Dong is to begin sales of Danish gas to the Netherlands on Oct. 1, having agreed on a 500 million cubic meter per year (48 million cubic foot per day) deal to supply Dutch utility Essent, lasting "several" years. ...

Sunrise facing sunset.
June 9, 2004... This is a critical year for the proposed Woodside-operated 5 million ton per year Greater Sunrise LNG project offshore Australia, where development has been blocked by a maritime boundary dispute with East Timor, as well as long-standing...

Market insight: rising euro end-user tags.(Insight)
June 9, 2004... Large gas consumers in mainland Europe enjoyed lower term contract prices in April than at the start of this year, since at that point, declining 2003 dollar-based oil prices and the stronger euro were still feeding through into final bills...

Europe again facing summer electricity supply problems.(Current)
June 9, 2004... Europe risks a repeat this summer of the electricity supply shortfalls that caused problems across the region during a heat wave last year. Although some efforts have been made to tackle issues that contributed to the supply shortages,...

Kogas chief Oh Kang Hyun's take on Asian LNG markets.(Horizon)
June 9, 2004... Leading executives and officials from all branches of the global gas business gathered in Singapore at the recent Gasex 2004 conference to discuss prospects for the industry at a time of extreme flux in Asian LNG markets--flux brought about in...

Shell's Peter de Wit on changing Asia-Pacific gas markets.(Horizon)
June 9, 2004... WGI talks with Peter de Wit, head of Shell Asia Gas and Power. WGI: How might the US West Coast market affect LNG trade in Asia? Is LNG trade now sufficiently interconnected for prices in one area to influence those in other regions? ...

BP's Anne Quinn on Asia's changing LNG markets.(Horizon)
June 9, 2004... WGI talks with Anne Quinn, BP group vice president for gas, power and renewables. WGI: You once described the Asian region as a high-inertia environment for LNG. Is this still the case, as LNG customers push for more volume flexibility and...

WGI supplement: European end-user prices (in eurocents/kWh).
June 9, 2004... WGI SUPPLEMENT: European End-User Prices (In Eurocents/kWh) Gas Prices: --100,000 cm/yr-- --1 Million cm/yr-- Typical High Low Typical High Low Belgium Apr. '04 ...

European end-user prices (in US dollars/MMBtu).
June 9, 2004... European End-User Prices (In US Dollars/MMBtu) Gas Prices: --100, 000 cm/yr-- --1 Million cm/yr-- Typical High Low Typical High Low Belgium Apr. '04 8.00...

Kovykta confrontation.
June 16, 2004... Negotiations for the sale of gas from the giant TNK-BP-operated Kovykta field in East Siberia have taken a sharply confrontational and politicized turn since Gazprom moved to the fore in the Russian negotiating team (WGI Jun.9,p2). Prospective...

Iran offers India oil equity if it buys gas.
June 16, 2004... The gas exporting country practice of offering prospective term-buyers small stakes in gas reserves that feed LNG projects has moved to a new plane, with oil serving as the sweetener. The National Iranian Oil Co. (NIOC) has offered Indian...

Brazil gas demand takes off at last.
June 16, 2004... Gas looks to be coming into its own as a fuel in the big Brazilian market at last, even though many of the regulatory issues surrounding its use have yet to be worked out--causing industry analysts and executives to warn that needed investment...

Chile struggles with gas supply cuts.
June 16, 2004... While gas demand growth is roaring ahead in Brazil, cuts in Argentine gas exports have forced Chile to consider other sources of energy, resulting in more emphasis on coal and hydropower now and in LNG for the future (p2). Supply to Chile...

Sonatrach gears up for gas expansion.
June 16, 2004... Algerian state Sonatrach looks set to emerge from last January's deadly explosion at its Skikda LNG plant in a stronger position than ever. Over the short-term, high oil prices have eased the impact on Algeria of resulting revenue losses. ...

Snohvit costs climb, completion date slips.
June 16, 2004... Norway's Statoil has admitted to a 13% cost overrun at its 5.7 billion cubic meter (4.16 million ton) per year Barents Sea Snohvit LNG development, as well as a likely delay of between six months and one year in first deliveries, originally...

Gazprom Belarus deal.
June 16, 2004... Russia and Belarus ended a long-running dispute on Jun. 8, finally signing agreements on the supply and transit of Russian gas this year. The deal looks to be advantageous for Gazprom, as it obtained a 55% increase in the subsided gas price for...

Turkey to Greece pipe.
June 16, 2004... Construction on the 285 kilometer pipeline linking Turkey to Greece is set to start by end-year, Turkish and Greek officials say, now that the two parties have agreed to stick to a proposed 36 inch diameter pipe--versus a 42 inch diameter line...

More US terminals.
June 16, 2004... Sponsors of three more new LNG receiving terminals revealed plans last week for one onshore and two offshore plants. Exxon Mobil confirmed that its 1 billion cubic foot per day (7.7 million ton per year) Pearl Crossing offshore unit would...

Market insight: trouble with Gasunie.(Insight)
June 16, 2004... More large gas users in the Netherlands are openly expressing dissatisfaction at the gas transmission tariff structure and other operating modes of Gasunie, still owned 50% by the state and 25% each by Exxon Mobil and Royal Dutch/Shell. Most...

California, facing transmission crisis, tackles energy issues.(Current)
June 16, 2004... Inadequate generating capacity bore much of the blame for California blackouts in the 2000-01 energy crisis, with market manipulating energy merchants in a supporting role. Power shortages again threaten this summer, with concern now focused on...

Europeans mull challenge of reliance on difficult fields.(Horizon)
June 16, 2004... Western Europe's gas supply is becoming more reliant not just on distant sources of gas, by pipeline from Russia or as LNG from the Middle East, but also on technologically challenging fields in nearby northern seas. It's nothing new for...

US LNG supply gap.
June 23, 2004... In the movie Field of Dreams, the character played by actor Kevin Costner obeyed an unseen force telling him to plow under his corn crop and build a baseball field. "If you build it, they will come," the voice of the mysterious force told him....

Gazprom tightens grip on Russian exports.
June 23, 2004... Gazprom has made further progress over the last week in a campaign to solidity its control over the marketing and export of Russian gas, even as other companies are staking out a bigger role in upstream gas (WGI Jun. 16,p1). In one aspect...

Little unsold Atlantic Basin LNG lurking.
June 23, 2004... Proposed mega-LNG receiving terminals in the US are starting to obtain licenses, and backers express confidence about quick construction (p1). But in the near-term, filling these terminals on a year-round basis with Atlantic Basin or Mideast...

Indian reliance publicly rebukes LNG sellers.
June 23, 2004... A public glimpse was available at last week's Asian Oil & Gas Conference in Kuala Lumpur of the generally off-camera debate under way within the Asia-Pacific gas industry over whether regional LNG prices should come down sharply in line with...

Grain offers more UK LNG capacity.
June 23, 2004... Grain LNG, a wholly owned subsidiary of the UK's National Grid Transco (NGT), this week formally invited shippers to consider buying additional capacity at its planned Isle of Grain import terminal, located 40 kilometers east of central London....

Confusing Russian gas resale rules.
June 23, 2004... Thanks to "higher enemy prices and our efforts to maintain market share while Europe liberalized its gas market," Gazprom's European sales have increased over the last five years by 10% in volume terms and 60% in revenue terms, Gazprom Deputy...

Equatorial Guinea LNG.
June 23, 2004... Marathon and Equatorial Guinea state oil form GEPetrol have at last taken the final investment decision on their much vaunted $1.4 billion LNG project. At the same time, BG firmed up into a sales and purchase agreement its deal to buy the...

Argentine exports back.
June 23, 2004... Argentina last week loosened restrictions on gas exports to Chile, allowing sales from remote basins that can't be tapped to meet domestic demand (WGI Jun.16,p3). The move reflects an easing in Argentina's domestic gas supply crisis, thanks to...

Spain's emission goal.
June 23, 2004... The national carbon dioxide (CO[sub.2]) emission reduction target revealed by Spain on Jun. 21 under the European Union-wide cap-and-trade emissions trading scheme (ETS) due to start Jan. 1 2005 was tougher than many power generators had...

Market insight: latest Kogas supply plan.(Insight)
June 23, 2004... Korea Gas Corp. (Kogas) is hoping to add 1 million-2 million tons per year in four-year contracts to the combined 2.5 million ton/yr that it agreed last year to buy from Australia's North West Shelf and Malaysia LNG Tiga under seven-year...

Most European power exchanges now stronger than ever.(Current)
June 23, 2004... Electricity trading in Europe appears stronger than ever following its rebound from a post-Enron lull, with banks and other financial institutions stepping into trading slots vacated by the subsequent exodus of other US energy merchants. ...

State-federal feud breaks out in US over LNG permitting.(Horizon)
June 23, 2004... The outcome of an ever-more contentious feud between state and federal authorities in the US regarding jurisdiction over the permitting and siting of LNG receiving terminals will probably be left to the courts to decide. On one side is the...

Gazprom expects Sakhalin stake.
June 30, 2004... Russian gas giant Gazprom expects next month to see results from talks with Royal Dutch/Shell about joining the Sakhalin-2 LNG project, Gazprom Chief Executive Alexei Miller said after the company's annual shareholder meeting last week. "We are...

Asia's great cost-cutting LNG sale.
June 30, 2004... Perhaps you can call it "the great LNG sale." In scenes reminiscent of bargain shopping during festival seasons, long-term Asian LNG consumers ale pitting one producer against each other, enjoying big bargains in the process. That...

Bangladesh find.
June 30, 2004... Canada's Niko Resources, junior partner to Reliance in its eastern India discoveries, announced a gas discovery in Bangladesh onshore block 9 earlier this month at its Lalmai-3 well, which it operates with 60% interest, partnered by UK Tullow...

India finds more gas, plans further LNG.
June 30, 2004... India's gas market continues to flourish with news of Reliance Industries' second major discovery off India's east coast, and plans by state Oil & Natural Gas Corporation (ONGC) to build a big LNG terminal at the southwest city of Mangalore to...

Bright spots still dot Canadian gas patch.
June 30, 2004... Reports of the death of the Canadian gas patch as a source of incremental supply may prove premature (WGI Nov.5,p8). A number of big Canadian and international producers that have quietly migrated in recent years toward the near-frontier...

Altamira to stay small at first.
June 30, 2004... The Royal Dutch/Shell Group plans to import only enough LNG to its Altamira project in Mexico to meet its commitments to Mexican utility Comision Federal de Electricidad (CFE). The company has shelved for now--but doesn't rule out in the...

Cheniere gets FERC OK.
June 30, 2004... The US Federal Energy Regulatory Commission (FERC) last week approved Cheniere Energy's plan to build a LNG import terminal on Quintana Island, near Freeport, on the Texas coast. The regulator's decision helped Cheniere shares rise by 20% last...

Hydro bows to SEC.
June 30, 2004... Norsk Hydro has now reduced its booked Ormen Lange reserves estimate down by 30%. In a statement demanded by the US financial regulator Securities and Exchange Commission (SEC), Norsk Hydro said on Jun. 29 that it had decided to book its...

Bulgarian offshore gas.
June 30, 2004... Bulgaria's first offshore gas field, Galata, began production in early June. Average forecast output of 40 million cubic feet per day (413 million cubic meters per year) will contribute some 12% of Bulgarian gas supply, and is all...

Belgium claims LNG world 'first'.
June 30, 2004... Belgium's federal energy regulator Creg last week said it approved main conditions liar access to the Fluxys-run LNG import terminal at Zeebrugge on Jun. 17, which it believes will make it the world's first LNG terminal to provide regulated...

IPE gas futures.(Insight)
June 30, 2004... IPE GAS FUTURES Contract Jun. 28 Week's Jun. 21 Month p/therm High/Low $/MMBtu Jul. '04 20.24 20.80/20.00 3.66 Aug. 22.49 22.70/22.35 4.07 Sep....

Nymex gas futures.(Insight)
June 30, 2004... NYMEX GAS FUTURES Contract Jun. 28 Week's Jun. 21 Month $/MMBtu High/Low $/MMBtu Jul. '04 6.141 6.55/6.09 6.339 Aug. 6.201 6.63/6.19 6.410...

Market insight: Zeebrugge exchange.(Insight)
June 30, 2004... Three companies agreed last week to develop a natural gas exchange at Belgium's Zeebrugge Hub in January 2005, marking a significant step forward from a letter of intent they signed in March (WGI Mar. 17,p5). Huberator, operator of the...

Comparison of LNG exporter netbacks at receiving terminals worldwide.(Insight)
June 30, 2004... COMPARISON OF LNG EXPORTER NETBACKS AT RECEIVING TERMINALS WORLDWIDE (In $/MMBtu) US/Lake Charles US/Elba Island US/Cove Point Exporters Jun. 28 May 24 Jun. 28 May 24 Jun. 28 May 24 ...

US electricity demand soars, despite higher prices.(Current)
June 30, 2004... US electricity demand is going through the roof this summer, adding to upward pressure on gas and coal prices. The industry group Edison Electric Institute reported that power output in the Lower 48 US states was up 9.6% from year-earlier...

Maghreb-Mashreq grid by 2005, exports will need longer.(Horizon)
June 30, 2004... By early 2005, power networks from Spain, Morocco, Algeria and Tunisia in the west to Libya, Egypt, Jordan and Syria in the east could be connected in one long link--the start of a Euro-Mediterranean Electricity Ring (Medring) that might later...